Alkane Resources Ltd · ASX:ALK

Alkane Resources — Investor Intel Conference 2018

17 slides from Alkane Resources's conference presentation, May 3, 2018

  1. Slide 1: A Critical Link

    A Critical Link Investor Intel Conference 3 May 2018 Nic Earner, CEO of Alkane Resources Ltd

  2. Slide 2: Electric Vehicles are Driving Minerals Demand

    Electric Vehicles are Driving Minerals Demand LITHIUM BATTERY Source: Tesla © 2018 Alkane Resources Ltd

  3. Slide 3: Electric Vehicles are Driving Rare Earths Demand

    Electric Vehicles are Driving Rare Earths Demand GLASS & MIRRORS LCD SCREEN HEADLIGHT GLASS Source: Adamas Research 25+ ELECTRIC MOTORS DRIVE TRAIN COMPONENT SENSORS © 2018 Alkane Resources Ltd

  4. Slide 4: The Critical Link Between Lithium & Rare Earths

    The Critical Link Between Lithium & Rare Earths Sources: UBS, Visual Capitalist © 2018 Alkane Resources Ltd

  5. Slide 5: Exponential Growth in EV Sales

    Exponential Growth in EV Sales 20 30000 18 25000 16 14 20000 12 EV sales Millions Pr/Nd oxide tonnes 10 15000 8 CIL Processing 10000 Plant 6 4 5000 2 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CAGR 50% Pr/Nd oxide 10 million EVs requires + 15,000 tpa rare earths (Pd/Nd) Caloma open cut Oc

  6. Slide 6: Forecast Supply Deficit

    Forecast Supply Deficit Source: IMCOA © 2018 Alkane Resources Ltd

  7. Slide 7: Pricing rare earths: an obvious conclusion

    Pricing rare earths: an obvious conclusion Source: Asian Metal Price increases of 23% to 35% so far © 2018 Alkane Resources Ltd

  8. Slide 8: A lesson from China: the rare earth value chain

    A lesson from China: the rare earth value chain In 2016 $83b in2012 $78b $5.6b Rare earths Rare earth oxides Permanent (NdFeB) Mineral concentrates US$4-5b Magnet market US$10.5b $440b US$600b+ Since 1970s, China has successfully implemented each component of the rare earth value chain to create dow

  9. Slide 9: Rare earths: China's tactics 2017/18

    Rare earths: China’s tactics 2017/18 • Consolidate industry • Shut down illegal production • Fund production companies • Eliminate export quotas and taxes • Legislate for royalties • Clean up environmental practices • Integrate the entire value chain © 2018 Alkane Resources Ltd

  10. Slide 10: Rare earths market status

    Rare earths market status • Rare earth market value US$4-5b • Estimated demand 2017: 160-170,000tpa • Magnetic rare earths (Nd/Pr) dictate demand • China is dominant • supplies 85%, consumes 70% globally • China is addressing illegal production • Several non-Chinese projects are proposed + evaluatio

  11. Slide 11: Rare earths market projection

    Rare earths market projection • Rare earth supply lags lithium supply • Unprepared for exponential demand for EVs 2020+ • 50% pa EV growth - 25,000t Pr/Nd oxide by 2025 • China’s dominance will increase • Rare earth production must growCIL worldwide Processing Plant - from Alkane, other projects + b

  12. Slide 12: Not just a rare earths project

    Not just a rare earths project The Dubbo Project has a diverse polymetallic product range supplying a broad range of industries. Ceramics Superalloys Chemicals Plasma cutting tips Refractory Foundry Zr Hf Nuclear control rods Catalyst precursor Jet engines Jet engines REE 30% REE Nb Superalloys Magn

  13. Slide 13: Steps to market

    Steps to market Step Change © 2018 Alkane Resources Ltd Started

  14. Slide 14: Conclusion

    Conclusion • EV supply chain investment must include rare earths • Rare earths production must increase worldwide • New projects need to come online • Alkane’s Dubbo Project has completed all critical steps and is ready for funding CIL Processing Plant Increasing rare earth prices + supply disruptio

  15. Slide 15: Nic Earner, Managing Director

    Nic Earner Managing Director [email protected] @alkaneresources

  16. Slide 16: Disclaimer

    Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other trend projections. Such s

  17. Slide 17: Dubbo Project Resources & Reserves

    Dubbo Project Resources & Reserves Dubbo Project – Mineral Resources Resource Category Tonnes ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 TREO* (Mt) (%) (%) (%) (%) (%) (%) Measured 42.81 1.89 0.04 0.45 0.03 0.14 0.74 Inferred 32.37 1.90 0.04 0.44 0.03 0.14 0.74 Total 75.18 1.89 0.04 0.44 0.03 0.14 0.74 *TREO% is th

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