Schröder Equities GmbHAustralian Resources Investment Conference
24 February 2017Peter Harold- Chairman
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2PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
DisclaimerThe information in this document has been prepared as at February 2017. The document is for information purposes only and has been extracted entirely from documents or materials publicly filed with the Australian Stock Exchange and/or theAustralian Securities and Investments Commission. This presentation is not an offer or invitation to subscribe for or purchase securities in the Company. The release, publication or distribution of this presentation in certain jurisdictions may berestricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions.
Certain statements contained in this document constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadianprovincial securities laws. When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward-looking statements or information. Such statements includewithout limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internalrates of return, mining costs, cash costs, mine site costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development ofcertain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development andproduction; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company’s mine sites and statements and information regarding thesufficiency of the Company’s cash resources. Such statements and information reflect the Company’s views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed onsuch statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limitedto: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations;financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company’s stockprice; and risks associated with the Company’s by-product metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward lookingstatements contained in this document, see the Company’s Annual Report for the year ended 30 June 2015, as well as the Company’s other filings with the Australian Securities Exchange and the U.S. Securities and Exchange Commission. The Companydoes not intend, and does not assume any obligation, to update these forward-looking statements and information.
Competent Person StatementsThe information in this report that relates to Exploration Results is based on information compiled and/or reviewed by David Hammond, who is a Member of The Australian Institute of Mining and Metallurgy. David Hammond is the Technical Director of the Company. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity which he is undertaking to qualify as a Competent Person in terms of the 2012 Edition of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. David Hammond consents to the inclusion in the report of the matters based on his information in the form and contest in which it appears.
The information in this statement that relates to the Mineral Resource Estimates is based on work conducted by Rod Brown of SRK Consulting (Australasia) Pty Ltd, and the work conducted by Peak Resources, which SRK has reviewed. Rod Brown takes responsibility for the Mineral Resource Estimate. Rod Brown is a Member of The Australian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activities undertaken, to qualify as Competent Person in terms of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition).Rod Brown consents to the inclusion of such information in this report in the form and context in which it appears.
The information in the announcement that relates to estimated mine operating costs and mineral inventory was based on information compiled by Mr Ryan Locke, a Principal Consultant with Orelogy Consulting Pty Ltd, Orelogy are an independent consultant to Peak Resources. Mr Locke, who is a Member of the Australasian Institute of Mining and Metallurgy, has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ryan Locke consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. It should however be noted that no Ore Reserve has been reported as part of this study and therefore there is not a specific requirement for a CP in relation to the findings of this study.
The information in this report that relates to metallurgical test work results is based on information compiled and / or reviewed by Mr Gavin Beer who is a Member of The Australasian Institute of Mining and Metallurgy and a Chartered Professional. Gavin Beer is the General Manager Metallurgy of the Company and has sufficient experience relevant to the activity which he is undertaking to be recognized as competent to compile and report such information. Gavin Beer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to infrastructure, project execution and cost estimating is based on information compiled and / or reviewed by Lucas Stanfield who is a Member of the Australian Institute of Mining and Metallurgy. Lucas Stanfield is the General Manager - Development for Peak Resources Limited and is a Mining Engineer with sufficient experience relevant to the activity which he is undertaking to be recognized as competent to compile and report such information. Lucas Stanfield consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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3PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Table of Contents
Introduction The Market The Asset The Team The Investment Proposition
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4PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Introduction
Peak Resources “Ngualla” deposit is located in Tanzania and is one of the highest grade and largest rare earth deposits in the world with capital and operating costs targeted for the lowest quartile
Strong management team with extensive operational and commercial rare earth experience and industry network
Globally strategic deposit: Ngualla a world-class asset, one of the world’s largest and highest grade neodymium (Nd) and praseodymium (Pr) deposits an operational mine life of 31 years*, based on just 22%* of the Mineral Resource An easy-to-mine rare earth deposit by low strip ratio open pit with favorable host rock
composition. Outstanding project track record - BFS to be completed late Q1/early Q2 2017
Rapidly expanding market driven by electric vehicle demand growth and alternative energy generation means NdPr demand is expected to double by 2025.
Owning the supply chain with planned refinery investment in UK Strong development partners Appian and IFC
* Production based on the 2016 Weathered Bastnaesite Zone Mineral Resource estimate at +1% REO grade cut and the mining and processing assumptions, details contained in the ASX announcements “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016 and “Higher grade Resource for Ngualla nearly 1M tonnes REO” of 22 February 2016. 91% of the Mineral Resource on which the Mining Inventory is based is Measured, 9% Indicated with no Inferred.
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5PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
The Market
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6PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
47%54%
68%75% 79%
15%
15%
10%
8%7%
6%
7%
5%4%
3%
7%
6%5%
4% 3%
11%7%
5%3% 3%
4%4% 3% 3% 2%6% 4% 3% 3% 2%3% 2% 2% 1% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
Glass Additives
Polishing Powders
Other
Catalysts
Metal Alloys
Ceramics
Phosphors
Permanent Magnets
Rare Earths: “The Vitamins of Technology”
% Value of Rare Earth Applications Ngualla annual production Basket:
2,300 tpa* NdPr 2,740 tpa* Lanthanum 1,500 tpa* Cerium
180 tpa* Combined mid + heavy *REO equivalent
Source: IMCOA Professor Dudley Kingsnorth2016, Value is calculated using China FOB and Chinese Domestic Pricing.
Dysprosium11%
Terbium3%
Gadolinium1% Samarium
<1%
Neodymium63%
Praseodymium22%
2015 Magnet
Sector Value Share
Ngualla’s production basket is in line with todays highest value and growth permanent magnet market segment
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7PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
NdFeB Permanent Magnets
Peak’s value drivers are Neodymium and Praseodymium at 85% of future revenue*
Neodymium (Nd) and Praseodymium (Pr) are required to produce NdFeB permanent magnets
NdFeB (Neodymium, Iron and Boron Magnet) is the strongestpermanent magnet commercially available
~10 times more powerful, and 3 times lighter than traditional ferric magnet alternatives. Superior performance under a wider range of operating conditions, allowing effective miniaturisation and production of compact, lightweight, and more efficient motors
NdFeB permanent magnet technology is one of the key enablers for the fast growing Green energy and E-mobility sector
They form the basis for the traction motors used in 90% of todays leading Battery and Hybrid Electric Vehicles
* See ASX announcement “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016
Source: http://www.caranddriver.com/reviews/2017-audi-q7-e-tron-tdi-plug-in-hybrid-first-drive-reviewFor
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8PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Accelerating Growth for Nd/Pr
Based on the strong performance of the wind and E-car/ hybrid vehicle industry the demand for Nd/Pris expected to grow rapidly
Source: Global EV outlook 2016 OECD/IEA 2016
CAGR: 2000 - 2015 = 24%
Source: Global EV outlook 2016 OECD/IEA 2016 Note: above numbers do no include Hybrid sales figures
CAGR: 2010 - 2015 = 179%
Evolution of the global electric car stock 2010-2015
Global cumulative installed wind capacity 2000-2015
Triggered by… More demanding global emission standards and general
stricter legislation for environmentally un-friendly technologies, and an increasing consciousness of the need for green technologies in our society
50% of future demand growth underpinned by existing government policies including COP21 – The Paris Summit, Made in China 2015, Energy 2020 (Europe) and Kigali 2016.
Translating to … A growing demand for more environmental, sustainable
green energy sources and more high-end efficient technologies that provide light weight solutions for sustainable green mobility
Materializing in 2 specific Megatrends…1. Wind turbines and alternative energy sector2. E-cars, hybrid vehicles & E-bikes and in the automotive
industry
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9PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Longer Term Demand Outlook
Demand growth is driven by Nd/Pr widespread applications in growing green-technologies
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10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2010 2011 2012 2013 2014 2015e 2016e 2017e 2020e 2025e
Oxi
de T
onne
s
Increasing NdPr Demand
Total NdPr Demand NdPr Magnet Demand
Source: IMCOA Professor Dudley Kingsnorth October 2016
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10PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
China’s 13th 5 Year PlanIn October 2016, China’s Ministry of Industry and Information Technology released it’s Rare Earth Industry
Development Plan which aims to restrict rare earth production, refining and raw mineral exports.
Key targets set to be achieved by 2020 include;
China’s total annual rare earth mining output to be restricted to no more than 140,000 tpa REO No new mining rights to be issued to companies other than the selected Six State Owned Enterprises Total China solvent extraction refining capacity to be cut by 33% to 200,000 tpa REO (from 300,000 tpa
REO in 2015) Rare earth industry profit margins to be increased to 12 percent High end downstream rare earth product market penetration to be increased from 25% to 50% Environmental compliance to be increased from 40% to 90% for rare earth operations Export of primary rare earth raw materials to be reduced from 57% to 30% of total Chinese rare earth
production
Combined with increasing demand for the magnet metals, these internal China policies and the targetedexpansion of high value downstream industry applications, China may well become a net importer of NdPrby 2025.A component of China’s 5 Year Plan is to encourage the use and development of offshore rare earthresources and strengthen international co-operation.
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11PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
The Asset
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12PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
TanzaniaNgualla Project, one of the biggest undeveloped Nd/Pr deposits world wide Mining Inventory of 18.4Mt at 4.89% REO; 22% of the total Mineral Resource Mining licence expected early 2017 Projected Capex: USD 206M incl. 25% contingency ; OPEX: USD 47.5M 31 year operational life of mine, Mill feed rate 556,000 tpa Low cost of operation- low in Acid consuming, Carbonate + Phosphate minerals 28,000 tpa of 45% rare earth concentrate; Ngualla to Dar es Salaam ~ 980 km. Non radioactive
Our Asset & Global Footprint
Peak Resources - an aspiring rare earth producer. With a CAPEX of onlyUSD 330 million incl. 25% contingency and OPEX of USD 97 million p.a.*
* See ASX announcements “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016 and “Higher grade Resource for Ngualla nearly 1M tonnes REO” of 22 February 2016
Perth
Sydney
Dar es Salaam
EuropeLocation for our solvent extraction plant; Projected Capex: USD 124M incl. 25% contingency; Opex: USD 49.5M Perfect location; top quality logistics infrastructure + low cost chemical + skilled labour market Production forecast: 2,300* tpa Nd/Pr 3N, 250* tpa SEG + HRE and 2740* tpa La + 1500 tpa Ce* *REO equivalent Cerium depletion flowsheet Low cost chemicals
AustraliaImported ~55t of Ore (first 6 years typical grade) 3 individual pilot plants:1. Perth ALS; Beneficiation pilot: 2t of 41% REO
concentrate (completed December 2015)2. Sydney ANSTO; Leach Recovery, Pilot (current) 3. SX separation Pilot at ANSTO (completed 2013)4. Team of 12 professionals, 200 years mining and processing
experience and 60 years in Africa. Team includes ex Molycorp Operating MD and REO Sales and Marketing Executive of Solvay/Rhodia
Ngualla
USAKoreaEU
India Japan China
EU 48 hrs
USA 4 weeksIndia 6 weeksChina 6 weeksKorea 6 weeksJapan 6 weeksSouth Africa 4 weeksCanada 5 weeks
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13PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
High Quality Mineral Resource
One of the highest grade and largest rare earth deposits in the world with favourable mineralogy supporting its low cost position expected to be in line with the low cost producers from China
Highlights
Geology: Weathered Carbonatite with a bastnasite-rich zone, Low in Phosphate and Carbonate
Mining Inventory: 18.4 Mt at 4.89% REOOre Reserve only 22% of total Mineral Resources * 38,800m of drilling (649 holes) 40 x 50m spacing, depth of 120m
Mining: Low strip ratio open-pit
Processing: Proven high grade concentrate 45% REO andselective leach / SX Ore for years 1-5 fully tested, years 6 - 10 undergoing testing
Mining licence: expected 2017
Projected Capex: US $207M incl. 25% contingency and 5% owners costsProjected Opex: US $47M p.a
Life of Mine: 31years
Mill feed rate: 556,000 tpa dry ore
Rare Earth Concentrate: 28,000 tpa at 45% REO
Mine to harbour: 980 km
The material assumptions underpinning the Mining Inventory, production target, capital and operating costs are disclosed in the announcement dated 16 March 2016 “Ngualla Project Study delivers substantial Capex and Opex savings” continue to apply and have not materially changed.
* See ASX Release dated 22 February 2016 “Higher grade Ngualla Mineral Resource contains nearly 1 million tonnes rare earth oxides” for details of Mineral Resource Estimation
Continuous, wide high-grade zone
This chart made larger – Key to the colours ?
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14PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Tees Valley Rare Earth RefineryTees Valley offers an exceptional versatility and adaptability, embedded in a top class industrial park
providing access to all production relevant utilities and supplies in close proximity
Approvals all in place Option on the site 5th largest UK port by volume 40Mt of cargo p.a. Competitive chemical (HCL) costs and availability Local and National Government Support
• Corporate tax rate reduced to 17% from 2020
• Enhanced capital allowance for up to Euro 125 million on qualifying plant and machinery
Available Waste Disposal and Treatment Facilities
Major Global players already operating in area= SABIC, Huntsman, Conoco Phillips, Amec Foster Wheeler, Jacobs Engineering, Mitsubishi
Excellent Road, Rail, Air and Sea Connections and long heritage and industry expertise, ready-skilled, affordable workforce
Close to UK & European markets (important for the lower value Cerium + Lanthanum)
ND/Pr shipped to Asia and Europe Capex= US $122M (including 25% contingency and
5% owners costs Opex= US $50M p.a
Wilton International Site, Tees Valley
“ Tees Valley cost structures look to compare favourably with those in China”
Industrial Site Customers
On-site Logistics & Services Land Service corridors Building and land lease Roads infrastructure
Labour Availability of highly skilled
workforce with chemical plant experience
Energy Power generation Process steam production and
distribution Natural Gas supply EfW (in development)
Water Potable Water Demineralised Water Raw Water Fire water supply Water Storage reservoirs Industrial wastewater treatment
capability
Utilities Compressed air Bulk nitrogen storage
Port 5th largest port of the UK with
40 million tonnes of cargo p.a.
A “plug and play” solution close to European markets
The material assumptions underpinning the Mining Inventory, production target, capital and operating costs are disclosed in the announcement dated 16 March 2016 “Ngualla Project Study delivers substantial Capex and Opex savings” continue to apply and have not materially changed.
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15PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Ngualla- Capital Intensity
Ngualla project- lowest quartile capex metrics
Source: Company reports and filings* See ASX announcement “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016 for cost and production details
Separated Rare Earth Oxides
Intermediate Mixed Rare Earth Product
CAPE
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Ann
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16PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
The Team
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17PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Directors - Depth of experience & skills
Darren TownsendManaging DirectorPEAK
Mining Engineer with 20 years mining and corporate experience Extensive experience in managing ASX and TSX listed companies East African experience incl. development of tantalum mine in Mozambique and resource drill out and permitting
a niobium project in Kenya
Jonathan MurrayNon-Executive DirectorPEAK
John JetterNon-Executive DirectorPEAK
Dave HammondTechnical DirectorPEAK
Geologist with 25+ years technical and management experience in Africa and Australia Former Exploration Manager with De Grey Mining Ltd and Sons of Gwalia. Previously with Billiton/Gencor in Africa MSc in Mineral Exploration, DIC, BSc (Hons) Geology
Partner at independent corporate law firm Steinepreis Paganin Specialising in equity capital raisings, acquisitions and divestments, governance and corporate compliance Bachelor of Law and Commerce (majoring in accounting)
Paul RupiaSpecial Adviser PEAK
Extensive international finance and M&A experience Former Managing Director, CEO and head of investment banking of JP Morgan in Germany and Austria, and a
member of the European Advisory Council of JP Morgan in London Experience in negotiating and executing rare earth off-take agreements
Currently Chairman of DCB Commercial Bank Plc and has held this role since 2002. He has served in the Government of Tanzania at senior levels as Chief Secretary in the President’s Office, Secretary to the Cabinet, Head of Civil Service, Principal Secretary in the Ministry of Foreign Affairs, Permanent Representative of Tanzania to the United Nations, Ambassador to Ethiopia and Deputy High Commissioner in the United Kingdom.
Peter HaroldNon-Executive ChairmanPEAK
Chemist with almost 30 years operational and corporate experience in the minerals industry specialising in financing, marketing and business development
Currently Managing Director of Panoramic Resources. Previous senior roles with Spectrum Rare Earths, Shell Australia, Australian Consolidated Minerals Limited and Normandy Mining Limited
Kibuta Ongwamuhana Non-Executive DirectorPR NG Minerals
Leading Tanzanian legal practitioner who specialises in taxation and corporate law. Managing partner of the legal firm, Ako Law in Dar es Salaam and an Advocate of the High Court and Court of
Appeal as well as legal consultant to a number of government, non-government and private business organisations.
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18PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Management Team- Depth of experience & skills
Over 15 years’ experience in sales and business development Former Global Account Manager Automotive Catalysis /Sales Manager of Rare Earth Systems for Solvay Has been responsible for sales of Rare Earth Mixed Oxides in Europe and Africa Management skills include budget responsibility, project management, building stakeholder relationships and
competing priorities in deadline-driven environments
Metallurgist with 25+ years’ technical and operational experience in the mining industry Former Manager of Metallurgy for Arafura Resources Has been responsible for the flow sheet development of eight rare earth projects worldwide including Peak’s
Ngualla Project
Mining Engineer with 15+ years experience in mining and project management in Australia, Africa & UK Previously with Emerson Stewart, Lucas has delivered a number of Scoping and Feasibility studies as well as
developed expansion strategies, long-term business plans and operating productivity studies focussed on the mining industry
Chemist with over 35 years’ operations and senior management experience in the mineral processing and chemical engineering sectors
Previously Managing Director of Molycorp’s Mountain Pass Rare Earth Complex from 2009 to 2015 Achievements include the delivery of successful expansions resulting in a 230% increase in production capacity
over a three year period as well as managing of operation budget in excess of US$150 million
Rocky SmithChief Operating Officer-Development
Graeme ScottChief Financial Officer/ Company Secretary
Lucas StanfieldGeneral Manager- Projects
Michael PrassasGeneral Manager- Sales, Marketing & Business Dev.
Fellow of the Association of Chartered Certified Accountants (UK) More than 20 years’ experience in professional and corporate roles in both Australia and the UK Has spent the last 10 years working in the resources sector in CFO and Company Secretarial roles for both ASX
and TSX listed companies
Gavin BeerGeneral Manager-Metallurgy
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19PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Confidence Through Experience
is the only rare earth developer who has both deep in-house rare earth manufacturing and sales expertise and has infused this know-how into the engineering design and BFS
has de-risked the mine to product supply chain through extensive pilot plant operation and testing (> $4M AUD) combined with real life operational know how and rare earth expertise
track record shows that it has a steady, conservative and deliverable approach
has a good understanding who the customers are and their requirements
management team is well connected in the industry and has the capability to build out the business team to deliver quality products with a reliable supply chain
We do what we say and say what we do based on real life experience
Peak Resources…
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20PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
The Investment Proposition
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21PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
The Investment Proposition
Peak Resources has a world class asset representing an excellent opportunity for exposure to the anticipated uptrend in the rare earth sector which is fueled by high expected growth in the green energy and mobility sector
We can see that the industry consolidation in China is progressing. In 2016 the majority of the state owned enterprises reported losses at current market prices. Therefore, it is anticipated that the combination of the Chinese government further increasing their efforts to reduce illegal mining and the continuing uptrend on the demand side will produce a misbalance in supply-demand what should result in a price recovery in the midterm.Peak Resources is perfectly positioned to become a competitive and sustainable long term supplier. The Ngualla project ticks all the right boxes with a 31 year operational life. Peak Resources aims to be one of the lowest cost quartile players in the Industry and will soon finish its extensive Bankable Feasibility Study with a focus on the strongest growing rare earth market segment.
THE MARKET - THE ASSET - THE TEAM For
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Appendices
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23PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Corporate Structure
Percentages have been rounded
Ngualla Rare Earth Project
Ltd(ASX:PEK)
PR NG Minerals Limited
75%
Peak African Minerals
100%
100%
6.67%
Appian
20%
16.12%
5%
Overview as at 20 February 2017Investment Structure*
Share Price A$0.10
Number Of Shares (Undiluted) 477.5M
52 Week Range A$0.10-0.042
Market Capital A$47.7M
Cash As At 31 December 2016- Peak Resources
A$5.1M
Appian Debt due September 2019 (US$3.28M)
A$4.6M
Enterprise Value A$47.2M
Unlisted Performance Rights 8M
Unlisted Performance Rights Outstanding (Exercise Prices A$0.10- A$0.55)
23.1M
Peak Resources Limited is listed on the ASX
Appian and IFC contributed A$23.4m for the funding of the Ngualla BFS, due for completion Q2 2017
Board Members Shareholdings3,646,867 shares are held collectively by board members Darren
Townsend, David Hammond and Jonathan Murray
* Post completion of the full 2 stage investment, see 27 July 2015 ASX releases titled “Closing of BFS Financing with Appian and IFC” and 26 April 2016 “Restructured funding package set to deliver Ngualla BFS”
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REO Pricing
Based on the projections on the demand side we are of the view that pricing has likely bottomed out
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Rare Earth Price Trends to December 2016
NdPr USD/kg min 75% Nd & 99% purity Dom ChinaNdPr USD/kg min 75% Nd & 99% purity FOB ChinaLanthanum Oxide 2N 99% min La FOB ChinaCerium Oxide Min 99% Ce FOB China
China's removal ofexport quotas afterWTO ruling 1-May-2015
Avg. price of Nd/Pr 01/2013-01/2017 = US$59.10
$39.30$36.66
$2.03$1.65
Avg. price of Nd/Pr 01/2013-01/2015 = US$69.02
Source: I Asian Metal and Metal Pages
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JORC Mineral Resource Estimates
Ngualla is host to a thick blanket of high-grade mineralisation at surface – supporting low cost, predominantly ‘free dig’, open cut mining
Lower Cut-Off Grade JORC Resource Category Tonnage (Mt) REO (%)* Contained REO tonnes
1.0% REO
Measured 18.9 4.75 900,000
Indicated 1.9 4.85 90,000
Inferred 0.5 4.43 20,000
Total 21.3 4.75 1,010,000
Lower Cut-Off Grade JORC Resource Category Tonnage (Mt) REO (%)* Contained REO tonnes
1.0% REO
Measured 86.1 2.61 2,250,000
Indicated 112.6 1.81 2,040,000
Inferred 15.7 2.15 340,000
Total 214.4 2.15 4,620,000
Classification of Mineral Resources for All Ngualla Resources at a 1.0% REO cut off grade
# The weathered Bastnaesite Zone Mineral Resource >=1% REO is contained within and is a subset of the total All Resources Ngualla Mineral Resources >=1% REO.* REO (%) includes all the lanthanide elements plus yttrium oxides. Figures above may not sum precisely due to rounding. The number of significant figures does not imply an added level of precision. See ASX announcement “Higher grade Resource for Ngualla nearly 1M tonnes REO” of 22 February 2016 for further detailsThe information in this statement that relates to the Mineral Resource Estimates is based on work conducted by Rod Brown of SRK Consulting (Australasia) Pty Ltd, and the work conducted by Peak Resources, which SRK has reviewed. Rod Brown takes responsibility for the Mineral Resource Estimate. Rod Brown is a Member of The Australian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activities undertaken, to qualify as Competent Person in terms of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition). Rod Brown consents to the inclusion of such information in this report in the form and context in which it appears.
Classification of Mineral Resources for the Weathered Bastnaesite Zone (WBZ) mineralisation at a 1.0% REO cut-off grade#
For
per
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26PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
0
0.2
0.4
0.6
0.8
1
1.2
1.4
NdP
r Oxi
de G
rade
(%)
Cont
aine
d N
dPr O
xide
(Mt)
NdPr Oxide in Mineral Resources
Contained Nd2O3+Pr6O11 Nd2O3+Pr6O11 Grade
Ngualla- Resource
One of the world’s largest and highest quality resources
* See ASX announcement “High grade resource for Ngualla nearly 1M tonnes REO” of 22 February 2016 for details
Source: Company reports and filings
For
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27PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
0.00
0.05
0.10
0.15
0.20
0.25
0.30
Lynas Corp Molycorp Peak Resources ArafuraResources
Rare ElementResources
Frontier RareEarths
Hastings Avalon RareMetals
GreenlandMinerals
Leading EdgeMaterials
Matamec
NdP
r Oxi
de G
rade
(%)
Cont
aine
d N
dPr O
xide
(Mt)
NdPr Oxide in Mining Inventory and/or Reserves
Contained Nd2O3+Pr6O11 Nd2O3+Pr6O11 Grade
Ngualla- High Percentage of Nd/Pr
It’s all about Nd/Pr grade…
* See ASX announcement “Ngualla Study delivers substantial Capex and Opex savings”” of 16 March 2016 for detailsSource: Company reports and filings
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28PEAK RESOURCES – ENABLING GREEN TECHNOLOGY
Peak Resources Limited
Head Office: Ground Floor, 5 Ord StreetWest Perth, Western Australia 6005Ph: +61 8 9200 5360Fax: +61 8 9226 3831
ASX Code: PEK
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