Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — New World Metals Conference 2021
21 slides from Arafura Rare Earths's conference presentation, Sep 9, 2021
Slide 1: Beyond the Quarry: Extracting More Value from the Energy Transition
9/9/2021 Beyond the Quarry: Extracting More Value from the Energy Transition Nolans Project New World Metals Conference 9 September 2021 (ASX:ARU) 1
Slide 2: Disclaimer
9/9/2021 Disclaimer This presentation has been prepared by Arafura Resources Limited (Arafura, Arafura Resources or the Company) and is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction with, and full review made
Slide 3: A World in Transition
9/9/2021 A CO2 Two great revolutions are underway: digitalisation and decarbonisation World in Transition Australia is poised to benefit: resources, energy, expertise, proximity to markets, environmental standards Both rely on a secure and long-term supply of rare earths Realising its full value to
Slide 4: The Nolans Project: Rare Earths
9/9/2021 The Nolans Project Rare Earths contains all the Rare Earths but is particularly Rare Earths are essential to enriched in the ‘Magnet building a clean energy future. Feed’ Rare Earths NdPr The transformation of the global 60 59 economy relies on a secure and Nd Pr long-term supply NEODYMIUM
Slide 5: Rare Earths: A Vital Cog in the Electric Vehicle Revolution
9/9/2021 Rare Earths kt Total mineral demand from new EV sales by scenario A Vital Cog in the Electric Vehicle 14000 Revolution 12000 2020 Stated Policies Scenario EV market growth is exponential: 10 to 10000 Sustainable Development Scenario 40 times in the next 20 years 8000 This will require 6-15
Slide 6: Mineral demand growth from new EV sales by scenario, 2040 compared to 2020
9/9/2021 Mineral demand growth from new EV sales by scenario, 2040 compared to 2020 50 Rare Earth 45 2040 | Stated Policies Scenario Elements 40 2040 | Sustainable Development Scenario 16 35 15 x 14 30 2020 = 1 25 12 2020 growth 20 10 15 8 10 5 6 0 4 6x Lithium Nickel Cobalt Manganese Copper Graphit
Slide 7: The Sleeping Giant
9/9/2021 Changing fortunes: Coal vs energy The Sleeping Transition minerals Giant Revenue from production of coal and selected energy transition minerals in the Sustainable Development Scenario (SDS) Critical minerals are the future of 500 Australian mining 450 Coal Energy Transition Minerals* Will
Slide 8: Nolans Project Overview
9/9/2021 Nolans Project Overview (ASX:ARU) 8
Slide 9: Key Facts
Key Facts 9/9/2021 Nolans is a shovel-ready world class NdPr project NdPr is the key input for high performance NdFeB permanent magnets Advanced manufacturing onsite – Ore to oxide at Single Site – NdPr is central to many clean energy First of its kind in Australia applications including EVs and win
Slide 10: Close to existing key infrastructure
Close to existing key 9/9/2021 infrastructure Stuart Highway 10 km east Amadeus natural gas pipeline- adjacent to project site Water supply 25km southwest Tailings and process wastes at site Alice Springs railyard, airport and other services 135km south (ASX:ARU) 10
Slide 11: Nolans NdPr Shovel Ready
9/9/2021 Regulatory Nolans Federal & NT Environmental Approvals secured NdPr Government and Minister support for senior debt facility Shovel Security of Tenure & Social License to Operate Native Title Agreement Ready Mineral License Granted Federal Major Project Status Indigenous Engagement Strategy
Slide 12: Shovel Ready for Rising Rare Earth Demand
9/9/2021 Shovel Ready for Rising Rare Earth Demand Nolans Key Development Milestones* *Milestone targets are indicative and subject to change and are contingent upon funding, offtake activities and general market conditions 1. FID and First Production are both subject to outcomes with offtake and fi
Slide 13: Ore to Oxide at Single Site
9/9/2021 Ore to Oxide at Single Site Nolans is the only NdPr focused project in Australia that plans to mine and process ore to oxide at a single site. Nolans aims to be a non-Chinese supplier of choice for sustainably mined NdPr oxide. All environmental approvals have been secured and waste managem
Slide 14: ESG - Current activities and initiatives
9/9/2021 ESG - Current activities and initiatives “Arafura’s ESG commitment is to be a trusted global leader and supplier of choice for sustainably mined and processed rare earth products, helping our customers deliver clean and efficient technologies. We are committed to delivering positive interge
Slide 15: Offtake Strategy
9/9/2021 Offtake Strategy Targeting NdPr users not aligned with Made in China 2025 strategy Progressing Offtake agreements with customers seeking supply security with a sustainable NdPr producer Prices rising materially as supply tightens Arafura is in discussions with 9 parties for over 120% of Pla
Slide 16: Critical Minerals Supply – a Global Issue
9/9/2021 Critical Minerals Supply – a Global Issue (ASX:ARU) 16
Slide 17: NdPr Market Opportunity
9/9/2021 NdPr Market Opportunity Automotive sector is forecast to consume DEMAND nearly 50% of NdFeB supply Supply gap is growing at a cumulative annual growth rate (CAGR) of 8% 2030 forecast assumes ~34 million EVs 2021 demand is forecast to increase by 14% Market analysts forecast a supply gap tha
Slide 18: NdPr Price Rise
9/9/2021 NdPr Oxide Output & Price EXW China NdPr Price Rise Chinese inventory stockpiles down by ~60% since mid-2020 Chinese producers near full capacity Source: Lynas Rare Earth (LYC output), BAIINFO (NdPr oxide production), Asian Metals (NdPr Price) Supply chain issues highlighted by Source: Lyna
Slide 19: Supply expansion challenge
9/9/2021 Supply expansion challenge Tighter environmental and regulatory controls 1 in China have resulted in production volumes contracting China Northern Rare Earths (largest producer) Source: Baiinfo and Argus 2 will increase production but will require plant expansion to significantly improve ca
Slide 20: Local Processing: More Jobs, Secure Supply Chains
9/9/2021 Local Processing: More Jobs, Secure Supply Chains 1. Mine 3. RE Separation 5. NdPr Metal 6. NdFeB Alloy/ 7. End User/ 2. RE Extraction 4. NdPr Oxide (Conversion) Magnet Maker Manufacturer Non-China Value Chain China Value IMPORT & IMPORT Chain IMPORT TOLL PROCESS Imported feedstock will be
Slide 21: Contact Information
9/9/2021 Contact Information Level 6, 432 Murray St, Perth WA 6000 34/119 Reichardt Rd, Winnellie NT 0820 +61 8 6370 2800 [email protected] www.arultd.com (ASX:ARU) 21