The document discusses Frontier Rare Earths' Zandkopsdrift Rare Earth Project in South Africa. It describes the rare earth market and Frontier's overview. The Zandkopsdrift deposit is a world-class rare earth deposit located in South Africa's mining region, close to infrastructure. A preliminary economic assessment confirmed the project's potential to become a major low-cost rare earth producer. Frontier is advancing the project with a strategic partnership and is fully funded to complete a definitive feasibility study.
Australian Bauxite Limited is developing its first bauxite project to supply the growing bauxite market. The company has over 116 million tonnes of bauxite resources across multiple projects in Australia. Its first projects in Tasmania and New South Wales are scheduled to begin production in 2014 and 2015, respectively, with a goal of exporting up to 5 million tonnes per annum of bauxite by 2018. The company aims to become a major supplier of low-temperature bauxite to China and other markets to replace declining Indonesian exports.
This document discusses a gold mining company with production assets in West Africa and exploration upside. The company is ramping up production to 200,000 ounces annually by the second half of 2012 through expansion of its milling capacity. It also recently added over 1 million ounces to its measured and indicated resource base along with over 500,000 inferred ounces through exploration. The company is located in Mali, Africa's third largest gold producer, giving it access to well-established mining jurisdiction.
Avion Gold is a growing gold producer in West Africa with operations in Mali. The company is ramping up production to reach a run rate of 200,000 ounces of gold per year by the first quarter of 2012. This significant production increase is expected to drive a large increase in Avion's market capitalization over the next 7 months. Avion has a large land package in Mali with exploration potential to further expand its resource base.
This presentation by North American Palladium discusses its plans to become a diversified precious metals producer through its palladium and gold assets. It highlights its flagship Lac des Iles palladium mine in Ontario, which is temporarily closed but has significant potential to restart operations due to rising palladium prices. It also discusses its newly producing Sleeping Giant gold mine in Quebec. The company aims to grow gold production to 250,000 ounces through acquisitions. It emphasizes the attractive fundamentals of the palladium market including growing demand outpacing limited supply. With over $100 million in cash and no debt, the company is well positioned to capitalize on opportunities in precious metals.
- The document summarizes a presentation by Don Burton, President of Namibia Rare Earths, about the company's exploration project in Namibia targeting heavy rare earth elements.
- Namibia Rare Earths holds a large land package in Namibia called the Lofdal project that shows potential for rare earth element deposits with exceptional enrichment in heavy rare earths like dysprosium and terbium.
- Drilling has already intersected a 16 meter interval grading 1.28% total rare earth oxides with over 94% being heavy rare earth oxides, demonstrating the potential for heavy rare earth enrichment at Lofdal.
This document discusses a gold mining company with production assets in West Africa and exploration upside. The company is ramping up production to 200,000 ounces annually by the second half of 2012 through a new larger mill. Recent exploration added over 1 million ounces to measured and indicated resources and over 500,000 ounces to inferred resources. The company is located in Mali, Africa's third largest gold producer, and sees 10-year production potential from resource expansion at its Tabakoto mine.
Avion Gold is a new gold producer in Mali with increasing production and resource base. The company plans to ramp up production to 200,000 ounces per year by 2012 through exploration, resource expansion, and plant upgrades. Avion has over 1.3 million ounces of measured and indicated resources and 2.1 million ounces of inferred resources across its properties in Mali. The company aims to continue growing its low-cost production and exploiting exploration upside in its large land package.
Australian Bauxite Limited is developing its first bauxite project to supply the growing bauxite market. The company has over 116 million tonnes of bauxite resources across multiple projects in Australia. Its first projects in Tasmania and New South Wales are scheduled to begin production in 2014 and 2015, respectively, with a goal of exporting up to 5 million tonnes per annum of bauxite by 2018. The company aims to become a major supplier of low-temperature bauxite to China and other markets to replace declining Indonesian exports.
This document discusses a gold mining company with production assets in West Africa and exploration upside. The company is ramping up production to 200,000 ounces annually by the second half of 2012 through expansion of its milling capacity. It also recently added over 1 million ounces to its measured and indicated resource base along with over 500,000 inferred ounces through exploration. The company is located in Mali, Africa's third largest gold producer, giving it access to well-established mining jurisdiction.
Avion Gold is a growing gold producer in West Africa with operations in Mali. The company is ramping up production to reach a run rate of 200,000 ounces of gold per year by the first quarter of 2012. This significant production increase is expected to drive a large increase in Avion's market capitalization over the next 7 months. Avion has a large land package in Mali with exploration potential to further expand its resource base.
This presentation by North American Palladium discusses its plans to become a diversified precious metals producer through its palladium and gold assets. It highlights its flagship Lac des Iles palladium mine in Ontario, which is temporarily closed but has significant potential to restart operations due to rising palladium prices. It also discusses its newly producing Sleeping Giant gold mine in Quebec. The company aims to grow gold production to 250,000 ounces through acquisitions. It emphasizes the attractive fundamentals of the palladium market including growing demand outpacing limited supply. With over $100 million in cash and no debt, the company is well positioned to capitalize on opportunities in precious metals.
- The document summarizes a presentation by Don Burton, President of Namibia Rare Earths, about the company's exploration project in Namibia targeting heavy rare earth elements.
- Namibia Rare Earths holds a large land package in Namibia called the Lofdal project that shows potential for rare earth element deposits with exceptional enrichment in heavy rare earths like dysprosium and terbium.
- Drilling has already intersected a 16 meter interval grading 1.28% total rare earth oxides with over 94% being heavy rare earth oxides, demonstrating the potential for heavy rare earth enrichment at Lofdal.
This document discusses a gold mining company with production assets in West Africa and exploration upside. The company is ramping up production to 200,000 ounces annually by the second half of 2012 through a new larger mill. Recent exploration added over 1 million ounces to measured and indicated resources and over 500,000 ounces to inferred resources. The company is located in Mali, Africa's third largest gold producer, and sees 10-year production potential from resource expansion at its Tabakoto mine.
Avion Gold is a new gold producer in Mali with increasing production and resource base. The company plans to ramp up production to 200,000 ounces per year by 2012 through exploration, resource expansion, and plant upgrades. Avion has over 1.3 million ounces of measured and indicated resources and 2.1 million ounces of inferred resources across its properties in Mali. The company aims to continue growing its low-cost production and exploiting exploration upside in its large land package.
J. P. Morgan Basics & Industrials Conferencefinance15
The document provides an overview of United States Steel Corporation. It discusses USS's position as the 5th largest global steel producer and 2nd largest producer in North America. It also summarizes USS's raw material integration, segments (flat-rolled, tubular, European), recent acquisition of Stelco, and outlook on the steel industry and capital allocation. The presentation aims to show how USS is growing responsibly while generating returns and meeting financial obligations.
Objective Capital's Rare Earths, Speciality & Strategic Metals
Investment Summit 2012
Ironmongers' Hall, City of London
13-14 March 2012
Speaker: Adrian Chapman, Oakdene Hollins
Kasbah Resources Limited is an emerging tin producer that owns the Achmmach tin project in Morocco. The company recently updated its resource estimate for Achmmach to 130,900 tonnes of contained tin. Kasbah is advancing the Achmmach project with a definitive feasibility study scheduled for completion in the fourth quarter of 2013. Exploration is also underway to evaluate additional targets near Achmmach that could provide further resource growth. With a strong cash position and development partner Toyota Tsusho, Kasbah is well positioned to become a sustainable tin producer.
The document discusses a potential deal between MMX and SK Networks. Key details include:
- SK Networks would invest up to $2.2 billion in MMX through a capital increase at $13.963 per share.
- MMX would acquire Sudeste Superport, valued at $2.3 billion, paid in MMX shares or cash and royalties.
- MMX and SK Networks would enter a long-term iron ore off-take agreement where SK Networks would receive 50% of MMX Chile production and a percentage of MMX Sudeste production based on their ownership stake in MMX.
This document discusses North American Palladium as an investment opportunity. It presents NAP as a growth-oriented precious metals producer with palladium and gold mining operations in mining-friendly jurisdictions. It notes that palladium supply is constrained, with NAP operating one of only two primary palladium mines globally. It also discusses increasing demand for palladium from the automotive sector and forecasts growing global light vehicle production in the coming years. Finally, it highlights NAP's strong financial position with over $95 million in working capital to fund development programs.
The document discusses MMX Mineração e Metálicos S.A., a Brazilian mining company. It notes that MMX has delivered on several projects and partnerships since its IPO in 2006, including developing its Sudeste iron ore system. MMX owns the Serra Azul and Bom Sucesso mines in the Sudeste system, which have high-quality iron ore reserves. MMX's Sudeste system has secured logistics to transport iron ore via rail and barges to the Sudeste Superport for export, utilizing MRS Logística railways and the Açu Superport. The document presents MMX as a unique, experienced mining company with a proven ability to deliver
This document discusses forward-looking statements and contains three key points:
1) It cautions readers that certain information in the presentation constitutes "forward-looking statements" which are inherently uncertain and subject to significant risks and uncertainties.
2) It notes that the forward-looking statements are based on a number of assumptions that may prove to be incorrect, including assumptions about metal prices, exchange rates, production levels, costs, and timelines.
3) It disclaims any obligation to update forward-looking statements except as required by law, and warns readers not to put undue reliance on such statements due to their inherent uncertainty.
"Business Plan 2007-2011, the Gulf of Mexico, and Renewable Fuels"Petrobras
Petrobras' business plan for 2007-2011 outlines $87.1 billion in investments across its operations. 56% or $49.3 billion will go towards expanding production in exploration and production (E&P). Key goals include optimizing development of existing reserves and maintaining a minimum reserve to production ratio of 15 years. The plan also details investments in refining and downstream operations, including a $2.5 billion new refinery in Pernambuco, Brazil and $1 billion for upgrading a refinery in Texas, USA. Financial targets include accrued economic profit of $83.4 billion by 2015 and maintaining a debt to capitalization ratio below 30%.
This document provides an overview of Commercial Metals Company (CMC) and its quarterly performance. It discusses CMC's business model, including its vertical integration and product and geographic diversification. It also summarizes CMC's financial performance from 2003-2007, highlighting increasing sales, earnings, and shareholder returns over that period. Current market conditions and CMC's outlook are briefly addressed.
KeyBanc Capital Markets Basic Materials and Packaging Conferencefinance15
This document provides an overview and summary of United States Steel Corporation's operations presented at a conference in September 2008. It discusses USSC's goal of growing responsibly while generating returns. It summarizes USSC's production capabilities, acquisition of Stelco, synergies from the Stelco acquisition, overview of its flat-rolled, European, tubular, and Canadian segments. It also discusses industry trends, the improving steel industry outlook, and being bullish on North America.
This document provides a disclaimer and forward-looking statements for a presentation about MMX Mineração e Metálicos S.A. It notes that the presentation contains forward-looking statements regarding MMX's operating capacity, expenditures, and start-up dates. It cautions readers that numerous assumptions and uncertainties exist regarding such statements. The risks include the ability to obtain regulatory approvals, difficulties converting resources to reserves, and changes in economic, political, and regulatory conditions. The document also states that MMX does not undertake to update forward-looking statements unless required by law and the presentation is not an offer to sell securities.
Corporate presentation march 2011 corporate presentation - march 2011mmxriweb
MMX provides high-quality iron ore from its assets in Brazil and Chile. In Brazil, MMX operates the Serra Azul mine and plans to expand production capacity to 24 million metric tons per year by 2013 through investments of $2.96 billion. MMX also owns the Bom Sucesso project, which has magnetite ore with 30% iron content. MMX is developing the Sudeste Superport, which will start operations in 2012 and has capacity for 50 million metric tons annually. In Chile, MMX has acquired six iron ore properties near the coast with high-grade magnetite ore similar in quality to Serra Azul.
This document discusses forward-looking statements and contains three key points:
1) It cautions readers that certain information in the presentation constitutes "forward-looking statements" which are inherently uncertain and subject to significant risks and uncertainties.
2) It notes that the forward-looking statements are based on a number of assumptions that may prove to be incorrect.
3) It disclaims any obligation to update the forward-looking statements except as required by law.
CMD 2012: Track Record and Strategy (Jørgen Ole Haslestad)Yara International
Jørgen Ole Haslestad, President & CEO of Yara International, presented Yara's track record and growth strategy at its 2012 Capital Markets Day. Yara achieved its highest ever EBITDA in the 2011/12 season due to increased fertilizer prices. Going forward, Yara aims to grow volumes by 8% by 2016 through committed expansion projects, acquisitions, and new supply. Yara is well positioned for continued profitable operations and growth by meeting rising global demand for agricultural productivity through its portfolio of value-added and commodity fertilizer products.
Great Western Minerals Group Ltd. is developing rare earth element projects globally and is pursuing a vertically integrated business model in the rare earth industry. The company currently produces rare earth alloys through its subsidiaries and is actively developing several rare earth properties, including the former-producing Steenkampskraal Mine in South Africa, which it has an option to refurbish and bring back into production by 2012. Once in production, Steenkampskraal will supply all the rare earth material required for the company's manufacturing operations. The presentation provided an overview of the company's projects, manufacturing facilities, and strategy to become the first fully integrated rare earth producer outside of China.
This document provides an overview and corporate presentation for Cabo Drilling Corp. Key points include:
- Cabo is a mineral drilling services company operating over 100 drill rigs across North America, Central America, and Europe.
- Revenue declined after 2008 but has increased 50% from 2010 to $43.42 million in 2011, with a target of reaching the 2008 high of $58.65 million in 2012.
- The company aims to expand its global market presence and improve operational efficiencies while maintaining a strong focus on safety and community relations.
This weekly newsletter provides an overview of economic and business news for the Middle East and North Africa (MENA) region for the week of August 21-27, 2009. Key highlights include:
- Saudi Arabia announced plans to establish new urban centers and invest SAR 172.5 billion in infrastructure projects.
- Consumer confidence increased 13% in the UAE but rents fell sharply, decreasing the consumer price index by 2.7%.
- Jordan's exports to the EU dropped 42% in the first half of 2009 while imports fell 19%.
Canadian Arrow Mines Ltd. is a nickel-copper producer with 3 key assets containing over 104 million pounds of nickel. These include the Kenbridge nickel-copper project estimated to have a net present value of $253 million, and the Alexo and Kelex nickel mines. Arrow also retains a 2% royalty interest in the Hart nickel project that is estimated to provide $9 million in revenue. However, Arrow's current market capitalization of $12 million represents a 96% discount to its estimated net asset value of $282 million. The company plans to restart production at Alexo and Kelex to generate near-term cash flow and fund development of the larger Kenbridge project.
The document provides an overview of recent dynamics in the global rare-earth market. It discusses:
1) An introduction to rare-earth elements, including which are considered critical and their main applications such as in permanent magnets.
2) Current rare-earth demand and supply, with China as the dominant supplier meeting over 65% of global demand in 2011, driven by applications such as permanent magnets.
3) Chinese mining and export quotas which have tightened in recent years, contributing to price volatility as global supply became increasingly dependent on China.
4) The politics surrounding rare-earth trade, including an alleged Chinese embargo on exports to Japan in 2010 and an ongoing WTO dispute brought by the US
This report provides an update on the rare earth industry and predicts future supply and demand dynamics. Key findings suggest rare earth supply, particularly for heavy rare earths, will remain constrained over the next four years due to growing demand from industries like wind turbines. Rare earth prices are expected to further increase given tightening supply and inelastic demand from high-growth industries. The report recommends investing in companies with high heavy rare earth content, refiners and separators, and those positioned for consolidation in the industry.
Objective Capital's Rare Earths, Speciality & Strategic Metals
Investment Summit 2012
Ironmongers' Hall, City of London
13-14 March 2012
Speaker: Gerry Clarke, International Lithium Alliance
IAMGOLD has discovered a rare earth element (REE) resource near its operating niobium mine in Quebec, Canada. The inferred REE resource is estimated at 466.8 million tonnes grading at 1.65% total rare earth oxides, containing approximately 7.7 million tonnes of REOs. REEs are critical materials for clean energy technologies and high-tech applications. IAMGOLD's REE deposit has the potential to become one of the largest REE resources outside of China.
J. P. Morgan Basics & Industrials Conferencefinance15
The document provides an overview of United States Steel Corporation. It discusses USS's position as the 5th largest global steel producer and 2nd largest producer in North America. It also summarizes USS's raw material integration, segments (flat-rolled, tubular, European), recent acquisition of Stelco, and outlook on the steel industry and capital allocation. The presentation aims to show how USS is growing responsibly while generating returns and meeting financial obligations.
Objective Capital's Rare Earths, Speciality & Strategic Metals
Investment Summit 2012
Ironmongers' Hall, City of London
13-14 March 2012
Speaker: Adrian Chapman, Oakdene Hollins
Kasbah Resources Limited is an emerging tin producer that owns the Achmmach tin project in Morocco. The company recently updated its resource estimate for Achmmach to 130,900 tonnes of contained tin. Kasbah is advancing the Achmmach project with a definitive feasibility study scheduled for completion in the fourth quarter of 2013. Exploration is also underway to evaluate additional targets near Achmmach that could provide further resource growth. With a strong cash position and development partner Toyota Tsusho, Kasbah is well positioned to become a sustainable tin producer.
The document discusses a potential deal between MMX and SK Networks. Key details include:
- SK Networks would invest up to $2.2 billion in MMX through a capital increase at $13.963 per share.
- MMX would acquire Sudeste Superport, valued at $2.3 billion, paid in MMX shares or cash and royalties.
- MMX and SK Networks would enter a long-term iron ore off-take agreement where SK Networks would receive 50% of MMX Chile production and a percentage of MMX Sudeste production based on their ownership stake in MMX.
This document discusses North American Palladium as an investment opportunity. It presents NAP as a growth-oriented precious metals producer with palladium and gold mining operations in mining-friendly jurisdictions. It notes that palladium supply is constrained, with NAP operating one of only two primary palladium mines globally. It also discusses increasing demand for palladium from the automotive sector and forecasts growing global light vehicle production in the coming years. Finally, it highlights NAP's strong financial position with over $95 million in working capital to fund development programs.
The document discusses MMX Mineração e Metálicos S.A., a Brazilian mining company. It notes that MMX has delivered on several projects and partnerships since its IPO in 2006, including developing its Sudeste iron ore system. MMX owns the Serra Azul and Bom Sucesso mines in the Sudeste system, which have high-quality iron ore reserves. MMX's Sudeste system has secured logistics to transport iron ore via rail and barges to the Sudeste Superport for export, utilizing MRS Logística railways and the Açu Superport. The document presents MMX as a unique, experienced mining company with a proven ability to deliver
This document discusses forward-looking statements and contains three key points:
1) It cautions readers that certain information in the presentation constitutes "forward-looking statements" which are inherently uncertain and subject to significant risks and uncertainties.
2) It notes that the forward-looking statements are based on a number of assumptions that may prove to be incorrect, including assumptions about metal prices, exchange rates, production levels, costs, and timelines.
3) It disclaims any obligation to update forward-looking statements except as required by law, and warns readers not to put undue reliance on such statements due to their inherent uncertainty.
"Business Plan 2007-2011, the Gulf of Mexico, and Renewable Fuels"Petrobras
Petrobras' business plan for 2007-2011 outlines $87.1 billion in investments across its operations. 56% or $49.3 billion will go towards expanding production in exploration and production (E&P). Key goals include optimizing development of existing reserves and maintaining a minimum reserve to production ratio of 15 years. The plan also details investments in refining and downstream operations, including a $2.5 billion new refinery in Pernambuco, Brazil and $1 billion for upgrading a refinery in Texas, USA. Financial targets include accrued economic profit of $83.4 billion by 2015 and maintaining a debt to capitalization ratio below 30%.
This document provides an overview of Commercial Metals Company (CMC) and its quarterly performance. It discusses CMC's business model, including its vertical integration and product and geographic diversification. It also summarizes CMC's financial performance from 2003-2007, highlighting increasing sales, earnings, and shareholder returns over that period. Current market conditions and CMC's outlook are briefly addressed.
KeyBanc Capital Markets Basic Materials and Packaging Conferencefinance15
This document provides an overview and summary of United States Steel Corporation's operations presented at a conference in September 2008. It discusses USSC's goal of growing responsibly while generating returns. It summarizes USSC's production capabilities, acquisition of Stelco, synergies from the Stelco acquisition, overview of its flat-rolled, European, tubular, and Canadian segments. It also discusses industry trends, the improving steel industry outlook, and being bullish on North America.
This document provides a disclaimer and forward-looking statements for a presentation about MMX Mineração e Metálicos S.A. It notes that the presentation contains forward-looking statements regarding MMX's operating capacity, expenditures, and start-up dates. It cautions readers that numerous assumptions and uncertainties exist regarding such statements. The risks include the ability to obtain regulatory approvals, difficulties converting resources to reserves, and changes in economic, political, and regulatory conditions. The document also states that MMX does not undertake to update forward-looking statements unless required by law and the presentation is not an offer to sell securities.
Corporate presentation march 2011 corporate presentation - march 2011mmxriweb
MMX provides high-quality iron ore from its assets in Brazil and Chile. In Brazil, MMX operates the Serra Azul mine and plans to expand production capacity to 24 million metric tons per year by 2013 through investments of $2.96 billion. MMX also owns the Bom Sucesso project, which has magnetite ore with 30% iron content. MMX is developing the Sudeste Superport, which will start operations in 2012 and has capacity for 50 million metric tons annually. In Chile, MMX has acquired six iron ore properties near the coast with high-grade magnetite ore similar in quality to Serra Azul.
This document discusses forward-looking statements and contains three key points:
1) It cautions readers that certain information in the presentation constitutes "forward-looking statements" which are inherently uncertain and subject to significant risks and uncertainties.
2) It notes that the forward-looking statements are based on a number of assumptions that may prove to be incorrect.
3) It disclaims any obligation to update the forward-looking statements except as required by law.
CMD 2012: Track Record and Strategy (Jørgen Ole Haslestad)Yara International
Jørgen Ole Haslestad, President & CEO of Yara International, presented Yara's track record and growth strategy at its 2012 Capital Markets Day. Yara achieved its highest ever EBITDA in the 2011/12 season due to increased fertilizer prices. Going forward, Yara aims to grow volumes by 8% by 2016 through committed expansion projects, acquisitions, and new supply. Yara is well positioned for continued profitable operations and growth by meeting rising global demand for agricultural productivity through its portfolio of value-added and commodity fertilizer products.
Great Western Minerals Group Ltd. is developing rare earth element projects globally and is pursuing a vertically integrated business model in the rare earth industry. The company currently produces rare earth alloys through its subsidiaries and is actively developing several rare earth properties, including the former-producing Steenkampskraal Mine in South Africa, which it has an option to refurbish and bring back into production by 2012. Once in production, Steenkampskraal will supply all the rare earth material required for the company's manufacturing operations. The presentation provided an overview of the company's projects, manufacturing facilities, and strategy to become the first fully integrated rare earth producer outside of China.
This document provides an overview and corporate presentation for Cabo Drilling Corp. Key points include:
- Cabo is a mineral drilling services company operating over 100 drill rigs across North America, Central America, and Europe.
- Revenue declined after 2008 but has increased 50% from 2010 to $43.42 million in 2011, with a target of reaching the 2008 high of $58.65 million in 2012.
- The company aims to expand its global market presence and improve operational efficiencies while maintaining a strong focus on safety and community relations.
This weekly newsletter provides an overview of economic and business news for the Middle East and North Africa (MENA) region for the week of August 21-27, 2009. Key highlights include:
- Saudi Arabia announced plans to establish new urban centers and invest SAR 172.5 billion in infrastructure projects.
- Consumer confidence increased 13% in the UAE but rents fell sharply, decreasing the consumer price index by 2.7%.
- Jordan's exports to the EU dropped 42% in the first half of 2009 while imports fell 19%.
Canadian Arrow Mines Ltd. is a nickel-copper producer with 3 key assets containing over 104 million pounds of nickel. These include the Kenbridge nickel-copper project estimated to have a net present value of $253 million, and the Alexo and Kelex nickel mines. Arrow also retains a 2% royalty interest in the Hart nickel project that is estimated to provide $9 million in revenue. However, Arrow's current market capitalization of $12 million represents a 96% discount to its estimated net asset value of $282 million. The company plans to restart production at Alexo and Kelex to generate near-term cash flow and fund development of the larger Kenbridge project.
The document provides an overview of recent dynamics in the global rare-earth market. It discusses:
1) An introduction to rare-earth elements, including which are considered critical and their main applications such as in permanent magnets.
2) Current rare-earth demand and supply, with China as the dominant supplier meeting over 65% of global demand in 2011, driven by applications such as permanent magnets.
3) Chinese mining and export quotas which have tightened in recent years, contributing to price volatility as global supply became increasingly dependent on China.
4) The politics surrounding rare-earth trade, including an alleged Chinese embargo on exports to Japan in 2010 and an ongoing WTO dispute brought by the US
This report provides an update on the rare earth industry and predicts future supply and demand dynamics. Key findings suggest rare earth supply, particularly for heavy rare earths, will remain constrained over the next four years due to growing demand from industries like wind turbines. Rare earth prices are expected to further increase given tightening supply and inelastic demand from high-growth industries. The report recommends investing in companies with high heavy rare earth content, refiners and separators, and those positioned for consolidation in the industry.
Objective Capital's Rare Earths, Speciality & Strategic Metals
Investment Summit 2012
Ironmongers' Hall, City of London
13-14 March 2012
Speaker: Gerry Clarke, International Lithium Alliance
IAMGOLD has discovered a rare earth element (REE) resource near its operating niobium mine in Quebec, Canada. The inferred REE resource is estimated at 466.8 million tonnes grading at 1.65% total rare earth oxides, containing approximately 7.7 million tonnes of REOs. REEs are critical materials for clean energy technologies and high-tech applications. IAMGOLD's REE deposit has the potential to become one of the largest REE resources outside of China.
Kasbah Resources Limited is an emerging tin producer with two tin assets in Morocco. It has $28.5 million in cash and is funded to advance its flagship Achmmach tin project through a definitive feasibility study by the end of 2013. Kasbah also has exploration upside at its 100%-owned Bou El Jaj project located 15km from Achmmach. Toyota Tsusho Corporation can earn a 20% interest in Achmmach by making staged payments totaling $16 million and signing a joint venture agreement.
Gary Billingsley, Executive Chairman of Great Western Minerals Group, discussed the company's integrated approach to rare earth production from its Steenkampskraal mine in South Africa. The presentation highlighted GWMG's plans to build mixed chloride and separation plants near the mine to process rare earth ore into individual rare earth oxides. It also noted progress made in 2011 to refurbish the Steenkampskraal mine site and exploration work confirming the high-grade resource.
The document summarizes a presentation given by Nic Earner, CEO of Alkane Resources Ltd, about the critical link between lithium and rare earths in supporting the growing electric vehicle industry. It notes that electric vehicles require both lithium batteries and rare earth minerals for their numerous motors and components. The presentation shows that demand for rare earths will grow exponentially as EV sales increase at a projected 50% compound annual growth rate. It highlights that Alkane Resources' Dubbo Project in Australia has the potential to help meet this growing global demand for rare earths given it has completed all critical steps and is ready for funding.
Day 1 - Session 1: Strategic metals and the clean-tech revolution
Outlook for Rare Earths
Objective Capital Global Mining Investment Conference 2010
Stationers' Hall, City of London
28-29 September 2010
Speaker:
Gary Billingsley - Great Western Minerals
Rio Tinto's Chief Financial Officer Kay Priestly presented on the copper market and Rio Tinto's Oyu Tolgoi project in Mongolia. Oyu Tolgoi is considered the best undeveloped copper-gold deposit in the world, with the potential to produce 450,000 tons of copper and 330,000 ounces of gold annually for over 50 years. The project represents a significant investment in Mongolia that could contribute substantially to the country's GDP and provide opportunities for training and local procurement. Priestly argued that mining projects like Oyu Tolgoi, if governed responsibly, can serve as an economic foundation for developing nations through tax revenue, jobs, and infrastructure development.
Objective Capital's Rare Earths, Speciality & Strategic Metals
Investment Summit 2012
Ironmongers' Hall, City of London
13-14 March 2012
Speaker: Robert Mackay, Stans Energy
The document discusses the role of emerging markets in meeting global demand for commodities like copper. It notes that emerging markets have significant copper reserves and resources and are expected to account for a large portion of supply growth over the next decade as traditional regions are unable to fully meet rising demand. The document emphasizes that successful development of projects in emerging countries requires engagement with local communities, governments, and other stakeholders to manage challenges around employment, skills training, procurement practices, and environmental stewardship. It highlights Rio Tinto's experience developing major projects like Oyu Tolgoi in Mongolia while addressing social and economic priorities.
This corporate presentation provides an overview of Dacha Strategic Metals Inc., a company that trades physical inventories of heavy rare earth elements. The presentation summarizes the company's capital structure, business model of acquiring and trading rare earth oxide inventories, financial achievements in building inventory and generating profits, and outlook for the rare earth market given China's dominance in production and recent actions to reduce exports and quotas. The presentation positions Dacha's physical inventory holdings as providing exposure to price appreciation of rare earths with no exploration or mining risk.
Erdene provides a presentation on its mining operations and exploration projects in Mongolia. It has a molybdenum-copper project called Zuun Mod with over 400 million pounds of resources. Erdene is also exploring for porphyry copper-gold deposits and has a coal exploration alliance with Xstrata focused on projects in Mongolia. The company aims to advance Zuun Mod towards production by 2014 to supply molybdenum to China's growing steel industry.
The document discusses Erdene Resource Development Corporation, a diversified resource company focused on exploration and development in Mongolia. It provides an overview of Erdene's coal, copper, and molybdenum projects in Mongolia, including its alliance with Xstrata on coal exploration and its flagship Zuun Mod molybdenum-copper project. It notes that Zuun Mod has over 400 million pounds of molybdenum and copper in resources and is well positioned to supply growing demand in China and Asia.
This document discusses Molycorp's plans to build a rare earth supply chain from mine to magnets. It highlights Molycorp's successful IPO in 2010 that raised $378.6 million. Construction has started on a new facility and mining has restarted at their Mountain Pass, California site. Their goal is to produce a range of rare earth elements, including lanthanum, cerium, neodymium, and dysprosium, which are critical components in technologies like wind turbines, electric vehicles, and water treatment. Molycorp aims to ramp production to 40,000 metric tons per year of rare earth oxides by 2012 to meet growing demand and establish a domestic rare earth supply chain.
The 3rd annual Resources & Energy Investment Symposium (REIS) is on 19-22 May, once again held in the unique city of Broken Hill; Last year’s event exceeded the expectations of all that attended - including over 350 delegates, 12 keynote speakers and more than 30 resource companies presenting their investment opportunities.
A focus for this year’s symposium will be on the current economic climate including its challenges and opportunities, not only in the Australian resources industry, but Australia’s position in the international market.
Kasbah Resources is an emerging tin producer with two tin projects in Morocco. It has a 14.6 Mt resource at its Achmmach Project containing 135,000 tonnes of tin. Toyota Tsusho is earning into Achmmach and a pre-feasibility study is due in April 2012. Kasbah has an experienced tin team and aims to become the next pure tin producer.
Kasbah Resources is an emerging tin producer with two tin projects in Morocco. It has a 14.6 Mt resource at its Achmmach project containing 135,000 tonnes of tin. Toyota Tsusho is earning into Achmmach and will provide strategic marketing support. A pre-feasibility study on the project is underway and expected for completion in April 2012. Kasbah aims to become the next pure tin producer and has an experienced tin team advancing its projects towards development.
Objective Capital's Rare Earths, Speciality & Strategic Metals
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Ironmongers' Hall, City of London
13-14 March 2012
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Frontier Corporate Presentation - Nov 2012
1. DRAFT
Zandkopsdrift – the next major western RE producer
November 2012 Frontier Rare Earths Limited
TSX:FRO
2. Safe Harbour Statement
Forward-looking information
Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements”.
Officers and representatives of Frontier Rare Earths Limited (the “Company”) may, in their remarks or in response to
questions regarding this presentation, make certain statements which are “forward-looking statements” and are prospective.
Forward-looking statements are neither promises nor guarantees, but are subject to risks, uncertainties and assumptions
that may cause the actual results, performance or achievements of the Company, or developments in the Company’s
business or its industry, to differ materially from the anticipated results, performance, achievements or developments
expressed or implied by such forward-looking statements. Forward-looking statements are based on management’s beliefs
and opinions at the time the statements are made or presented, and undue reliance should not be placed on any of these
forward-looking statements. There should be no expectation that these forward-looking statements will be updated or
supplemented as a result of changing circumstances or otherwise, and the Company does not intend, and does not assume
any obligation, to update these forward-looking statements.
2│
3. Topics
Rare Earth Market
Frontier Rare Earths overview
Background to the Zandkopsdrift Rare Earth Project
Preliminary Economic Assessment and Project Development Plans
Strategic Partnership
Outlook
Appendices
3│
4. Rare Earths – Overview
Series of 15 chemically similar elements that occur and are recovered together
Distribution of elements varies from deposit to deposit
Two distinct categories based on atomic weight: Light Rare Earths and Heavy Rare Earths
Each element has a range of distinctive physical properties which allow them to be
used in a variety of technological applications
Magnetic, optical, electrical, catalytic and metallurgical
Underpin the “green” technology economy
Hybrid motor and battery technology
Energy efficiency
Wind power
Consumer electronics
Defense
Transport
Most have no substitutes and are indispensable in many applications
4│
5. Rare Earths – Uses
Biggest, fastest-growing use is for magnet applications which, together with
phosphors and metal alloys, accounts for >80% of demand by value
Value of RE usage by application
40%
37%
35%
31%
30%
25%
20%
15% 14%
10%
5%
5% 4% 4%
3%
2%
0%
Magnets Phosphors Metal Alloys Catalysts Ceramics Polishing Other Glass
Source: Roskill
5│
6. Rare Earth Market Developments
Chinese Export Quota China
70,000
Continued restructuring of export quota system, forced industry
60,000 consolidation and clampdown on illegal mining & processing
likely to have significant price implications
Tonnes REO
50,000
China has confirmed only 15-20 years reserves of heavy and
40,000
medium REOs and are expected to be a net importer of these
30,000 elements by 2015
20,000 Chinese export quotas have been reduced significantly since 2005
however export quotas have stabilised at c.30kt per annum
10,000
US/ Europe and Japan have jointly lodged a complaint with the
0
2005 2006 2007 2008 2009 2010 2011 2012E
WTO in respect of China’s quota system and export taxes on rare
earths
Frontier Basket $/kg Since 2010
300
Rest of World
250
Plans by several countries including China, Japan, South Korea
200
and US announced to stockpile rare earths
150
3 Year Avg FOB Major industrial users seeking to lock in long-term
Spot Price FOB supply/partnership from credible potential producers i.e.
100 Frontier/KORES, Lynas/Siemens
50
0
6│
7. Rare Earths – Supply/Demand Forecasts
Demand CAGR projected at 6-10% through 2016 and beyond
China’s domestic demand, particularly for medium and heavy rare earths, forecast to
increase faster than domestic supply
Future supply deficit widely forecast
Significant opportunity for new producers of separated rare earth oxides outside of China
275,000 Global Supply and Demand (tonnes REO)
250,000
225,000
200,000
175,000
150,000
125,000
100,000
75,000
50,000
25,000
0
2004 2005 2006 2007 2008 2009 2010 2011 2015f 2020f
China supply ROW supply China demand ROW demand Total demand
Source: Roskill,Freedonia Group
7│
8. Frontier Overview
Flagship asset is the Zandkopsdrift Rare Earth project in South Africa
World-class deposit in terms of size, rare earth grade, distribution and value
Preliminary Economic Assessment competed March 2012
confirms Zandkopsdrift’s potential to become a major low cost RE producer
NPV11% of $3.7bn generating a post-tax IRR of 53% and 2 year payback
Pre-feasibility Study targeted for completion in Q1 2013 and Definitive Feasibility Study
scheduled 9-12 months thereafter
Strategic Partnership signed with Korea Resources Corporation
Frontier is the only rare earth junior advancing a major rare earth resource with a definitive strategic
partnership agreement in place
Initial Kores investment of $23.8m for 10% interest
Kores option to acquire up to a 50% interest in Zandkopsdrift if arranges project finance for development
Strong financial position: c.$30m cash (excl. Kores investment) and fully funded through completion
of DFS
Listed on the Toronto Stock Exchange
Experienced Board, management and technical teams
8│
9. Zandkopsdrift Project Location
Zandkopsdrift is well-situated in the
Northern Cape Province, South Africa’s
oldest mining region
Excellent mining and related infrastructure
available
Close to N7 highway from Cape Town
(c.450 km)
35km to nearest railhead (Bitterfontein)
300km north of deep water port of Saldanha Bay
Strong support in local communities for
the development of the Zandkopsdrift
Frontier controls mineral rights over
c.60,000 ha around Zandkopsdrift and
owns the land on which the deposit is
located
9│
11. Satellite Image of Zandkopsdrift Carbonatite
Zandkopsdrift
Gravel road to N7 carbonatite
complex
N7 tarred road
to Cape Town
Exxaro Resources
Namakwa Sands Mine
(c.45 km) Bitterfontein rail head
(c.35 km)
11 │
13. The Zandkopsdrift Deposit
The biggest intrusion in a complex of carbonatite intrusions
One of the largest known rare earth deposits, containing approx. 950k tonnes TREO
Contains significant high grade zones extending from surface that will allow preferential mining
The majority of rare earths in Zandkopsdrift (~ 97%) are contained in monazite
Proven commercial extraction processes
Metallurgical test work to optimise process flowsheet on going in Canada, South Africa and China
Rare earth minerals in many other new RE projects have never had commercial processes developed,
which will increase their development time, cost, and process risk
Attractive distribution of light and heavy rare earths and very low radioactivity
Potential for rapid development and production start-up
Good regional infrastructure available (road, rail, power and water) will also facilitate development
Targeting total annual production of 20,000 tonnes of separated rare earths
13 │
14. Geological Interpretation
The Zandkopsdrift deposit is a REE enriched carbonatitic breccia pipe
Occurs as a 1km diameter circular intrusive rising 40 meters above the surrounding plain
Extensive drilling in excess of 20,000 meters completed
313 boreholes drilled for a total of 21,037 meters
19,166 meters assayed at 1 meter intervals for resource estimation purposes
Good understanding of geology and controls on mineralisation
Series of vertical to sub vertical RE-enriched dykes (“REDs”) intruded into a RE bearing carbonatitic
phlogopite breccia phase (“CPB”)
The CPB and REDs have undergone several stages of alteration and deep weathering resulting in
the development of supergene enriched high grade REE-bearing horizons from surface to 80-100m
depth (see slide 53)
Geologically similar to Lynas’ Mount Weld deposit in Australia
14 │
15. Zandkopsdrift Geological Map and Drill Locations
Assay results from final phase
of resource drilling (14,200
meters drilling) to be
incorporated into a revised
resource estimate for PFS, and
are expected to upgrade the
majority of the resource into
the Measured and Indicated
resource categories
15 │
16. Zandkopsdrift Resource Estimate
Large, high confidence resource estimate(c.950k tonnes TREO) with c.80% of the contained TREO at the
Indicated Resource level (2011)
Final phase of resource drilling (14,200 meters) at Zandkopsdrift completed in Q4 2011
Assay results from final phase of drilling expected to advance majority of the 2011 resource into the
Measured and Indicated categories and PFS will convert such resources to Proven and Probable reserves
reserves
Relative distribution of REOs in Zandkopsdrift is shown on page 54.The resource estimate is NI 43-101 compliant and presented in accordance with CIM definitions The mineral resource
estimates reflect 100% of the estimated resources at Zandkopsdrift. Frontier’s 74% owned subsidiary, Sedex, has complied with the BEE equity ownership requirements as laid down by the
Mining Charter and MPRDA, through shareholder agreements with historically disadvantaged South African individuals and entities that together hold the remaining 26% of the issued share
capital of Sedex. In addition to Frontier’s direct interest in the Zandkopsdrift Project through its 74% shareholding in Sedex (prior to Kores’ initial 10% acquisition), Frontier shall also be
entitled to, in consideration for Frontier’s funding of the BEE Shareholders’ share of Sedex’s expenditure on the Zandkopsdrift Project up to bankable feasibility stage, a payment from
certain of the BEE Shareholders following the completion of the bankable feasibility study equal to 21% of the then valuation of the Zandkopsdrift Project. This gives Frontier an effective
95% interest in the Zandkopsdrift Project until such payment has been received.
16 │
20. Weathered CPB intruded by weathered RE enriched REDs
Weathered CPB
1-3% TREO
Weathered REDs
6-8% TREO
20 │
21. Contact Between REDs and CPB in Bulk Sample Trench
Weathered CPB
1-3% TREO
Weathered REDs
4-5% TREO
21 │
22. Bulk Sample Trench for Pilot Testwork (Q1 2012)
Average XRF TREO grade 3% for 174 metre trench
22 │
23. Preliminary Economic Assessment - March 2012
PEA Financial Highlights
Post-Tax Net Present Value @ 11% discount rate $3.65bn
Post-Tax NPV & IRR NPV attributable to Frontier Rare Earths $3.60bn
Post -Tax Internal Rate of Return 52.5%
Pre-Tax Net Present Value @ 11% discount rate $4.3bn
Pre -Tax NPV & IRR
Pre-Tax Internal Rate of Return 57.6%
Average annual revenue $1.1bn
Revenue and Cashflow
Annual after-tax free cashflow in full production $711m
Total construction Capex excluding contingencies $910m
Capital Expenditure Start-up costs excluding contingency $27m
Project payback from commencement of full production 2 years
Revenue/kg and cost/kg “Basket price” per kg of separated REO from Zandkopsdrift $58.23
xSeparated REO
Total cash operating cost/kg separated REO $13.08
23 │
24. Location of Zandkopsdrift Project Components
Mining, flotation and cracking
plants to produce mixed rare
earth carbonate
Mixed rare earth carbonate
transported 300kms by road (N7)
to Saldanha Bay
Saldanha Bay Rare Earth
Separation Plant-20,000 tonnes
p.a. TREO
24│
25. PEA Operating Assumptions and Parameters
PEA Operating Assumptions and Parameters
Target annual mining rate 1 m tonnes
Average stripping ratio* 3:1
Mining Life of mine 20 years
Average production grade 3.1% TREO
Mining dilution 7.50%
Target annual production rate 20,000t separated TREO
Metallurgical recovery 67%
Processing
Production start-up H2 2015
Time to full production 1 year
* including all stockpiled <2% grade material and waste
25 │
26. Zandkopsdrift Preliminary Mine Pit Design (looking southwest)
Pit Dimensions (approx.)
East -West extent 830m
North-South extent 900m
Maximum no. benches planned 12
• 19.5 mt to be mined over 20 years
• Average 3:1 stripping ratio
• Significant LoM extension possible, as only
60% of current resource is exploited
26 │
31. Saldanha Bay- (300km from Zandkopsdrift)
Sichen to Saldanha iron ore export rail line Saldanha Port
Arcelor Mittal Saldanha Steel Works Exxaro ilmenite smelter-Saldanha Bay
31 │
35. Saldanha Separation Plant-Illustrative Production and
Revenue Contribution by REO
10,000
8,833
Assumes production of
8,000 20k tonnes separated
Tonnes per Annum
REOs p.a. and elemental
recovery in line with in
6,000
5,083 situ Zandkopsdrift
4,370
distribution
4,000 3,154
Zandkopsdrift has an
2,000 attractive distribution of
910 814 both the high value light
462 288
118 34 154 150
and heavy rare earth
-
elements (the “Big 5”)
These Big 5 elements
represent c.22% of
illustrative production
0.0% volumes but contribute
0.0%
2.3% 2.2%
c.69% of project revenue**
10.0% 5.2% 5.6%
7.4% 7.4%
Cerium and lanthanum
Contribution to revenue
13.6% 11.7%
20.0% would represent c.70% of
19.2% the illustrative production
30.0% 25.4% volume but contribute only
21% of potential project
40.0%
revenue**
50.0%
60.0%
70.0% 68.9%
*Big 5 – Neodymium ,Praseodymium ,Europium, Terbium and Dysprosium
**Revenue contributions are calculated using current FOB China prices from Metal Pages as at 1 November 2012
No value is attributed by Frontier to the five heavy rare earths from Holmium to Lutetium 35│
36. Environmental Assessments Completed for PEA
Preliminary Environmental Assessments completed
Botany
Archaeology
Air and water quality
Human health risk and radiology impact
Uranium and Thorium are at very low levels
Although the rare earths at Zandkopsdrift are contained (97%) in monazite the grades of
both uranium (60-70ppm) and thorium (215-235ppm) are unusually low
Uranium and thorium removed by precipitation and disposed to double-lined tailings
disposal facility at Zandkopsdrift
Environmental studies concluded that “the environmental impact of the radionuclides will
be negligible”
36 │
37. Zandkopsdrift Project Capital Expenditure Estimate
Sulphuric acid
Total construction Capex PEA plant, $87.7m
(9.6%)
estimate of $910m* (including Mining and
Separation plant, infrastructure at
c.$100m for sulphuric acid and $498.4m (54.8%) Zandkopsdrift,
$79.4m (8.7%)
seawater desalination plants)
Split 67% for the Saldanha Bay
rare earth separation plant &
infrastructure and 33% for
Concentrator
Zandkopsdrift mining, Plant, $132.1m
concentration plant, sulphuric (14.5%)
acid plant and infrastructure
Additional $27m required in
start-up and indirect Capex on
commissioning
Infrastructure at
Saldanha,
$112.6m (12.4%)
*excludes contingency but contingency is
included in the PEA financial model and valuation
37 │
38. Zandkopsdrift Project Capex versus Western Peers
Actual & Forecast Capex of Projects to produce separated REOs
Total Capex for
Zandkopsdrift compares well
2,500
$2,046m
with similar scale projects
worldwide
2,000
Circa 2/3rds of Capex relates
to the Saldanha Separation
1,500 $1,213m Plant and data from peers
$1,128m
US$m
$937m
indicates comparable capital
$895m
1,000
split
$645m
500
-
(1) Capex based on refurbishment of existing mine and infrastructure Separation Plant
(2) US$/A$ exchange rate of 1.07 Mine & Concentrator
Start-up Capex
38 │
39. Zandkopsdrift Project Operating Cost Breakdown (PEA)
$15.00
PEA estimates total cash
$7.03 operating cost per
kg/separated REO from
Zandkopsdrift at $13.08
The main opex components are
$10.00 c.54% for the separation plant
and c.39% for the
concentration plant, the bulk of
which comprises reagent costs
$0.06 $0.07
and the operation of the
$5.06
sulphuric acid plant
$5.00 Mining and shipping costs are
low due to the ease of mining,
the high grade and the
availability of infrastructure
$0.86 Opex estimate excludes 15%
contingency but this
$0.00
Mining Concentrator Other costs Transport Separation contingency has been included
& H2SO4 Plant in the Zandkopsdrift PEA
Plant
financial model and valuation
39 │
40. PEA Rare Earth Pricing Methodology (March 2012)
At 1 November 2012, the Zandkopsdrift basket price (China FoB) was $47.81/kg
Applying the trailing 3 year FoB China prices, the Zandkopsdrift “basket price” per kg of separated REO is $85.49/kg
Applying the mid-point of Roskill’s 2015 price forecast ranges for the principal REOs, the Zandkopsdrift basket price is $52.10/kg
The PEA utilised the average of the 3 year China FoB price (to Dec 2011) and the mid-point of Roskill’s 2015 price forecast. This
methodology reduces the impact of the high rare earth prices in 2011 and resulted in a Zandkopsdrift PEA basket price of $58.23/kg
No value assumed in Zandkopsdrift price basket for five heavy rare earths (holmium, erbium, thulium, ytterbium and lutetium)
Rare Earth Oxide FOB China Price FOB China 3yr Avg China Domestic Price Roskill 2015 Price
(1 Nov 2012) (Nov 2009-Nov 2012) (1 Nov 2012) forecast
Lanthanum 12 49 7 20-35
Cerium 15 48 7 10-15
Praseodymium 82.5 115 54 80-120
Neodymium 82.5 129 54 80-120
Samarium 29.5 59 8 *
Europium 1810 1877 812 1,000-1,200
Gadolinium 64.5 84 18 *
Terbium 1300 1555 607 1,000-1,200
Dysprosium 615 866 379 800-1000
Yttrium 52.5 82 18 40-60
Zandkopsdrift ‘Basket Price’/kg $47.81 $85.49 $26.04 $52.10
40 │
41. Korea Resources Corporation
Korea Resources Corporation (“KORES”) is wholly-owned by the Korean government
Objective of becoming a global top 20 mining company by 2020, principally through
international investments and joint ventures
Policy mandate to further Korea's access to strategically important mineral resources
Works with major Korean industry groups and assembles consortia of Korean companies to
participate with KORES in commercial ventures
Korean government has designated rare earths as a strategic raw material for Korea’s future
economic growth and selected Zandkopsdrift source of their future rare earth supply
“In order to support Korea’s high technology, automotive and other industries, the development of
Zandkopsdrift will be a strategic priority project for the KORES Consortium and a critical element of
KORES’ efforts to secure a long term, stable source of rare earth supply for Korean industry.”
Shin-Jong Kim, Kores President and CEO (Dec 2011)
41 │
42. KORES Joint Venture Highlights
KORES to acquire initial 10% interest in Zandkopsdrift for $23.8m in cash (Nov 2012)
KORES options on completion of a positive Definitive Feasibility Study for Zandkopsdrift:
Kores may increase participation up to a 50% interest* in Zandkopsdrift, together with an off-take right and
obligation for up to 50% of production from Zandkopsdrift (the “50% Option”)
The exercise of the 50% Option will be conditional upon Kores arranging project finance for entire
Zandkopsdrift development on best available market terms and, if such project finance is accepted by the
Frontier Board in its absolute discretion, Kores providing its pro rata funding for the portion of Zandkopsdrift
development costs not covered by the project finance
Alternatively, Kores may acquire an additional 10% interest in Zandkopsdrift at the DFS project valuation
(NPV) and, if so acquired, Kores may then also acquire 10% shareholding in Frontier at market price. If
these options are exercised by Kores in full it will also procure an off-take right and obligation for 31% of
production from Zandkopsdrift
Frontier may introduce an Alternative Strategic Partner into Frontier/Zandkopsdrift prior to the exercise of
the above options by Kores and in such event the 50% Option will be cancelled
Kores will provide technical and operating experience for the design, construction and operation of the
Zandkopsdrift facilities
Frontier and Kores will cooperate in relation to downstream opportunities in the area of rare earth metals,
alloys and magnets
Zandkopsdrift is Kores’ only investment in a rare earth mine development worldwide.
*Full details of the Frontier Kores JV are set out in the news release dated October 23 2012
42 │
43. Zandkopsdrift Current Estimated Project Timeline
2011 2012 2013 2014 2015
PEA Resource
PEA
PFS/DFS Resource
Pre Feasibility
Study
Definitive
Feasibility Study
Financing
Construction
Production
Start-up
43 │
44. Corporate Information
TSX:FRO
Frontier Relative Share Price (rebased)
Shares Outstanding: 89,562,781
120
Market Cap c.$53m
Share Price $0.60 (52 week hi/low $1.44 - 100
$0.43)
Working Capital c.$30m (excl. Kores $23.8m) 80
Research Coverage:
60
CIBC
Euro Pacific Capital
40
Cormark Securities Frontier Share Price
Byron 20
Peer Average (RER, Quest, Arafura & Avalon)
Industry Leader Average (MCP + LYC)
0
44 │
45. Frontier Peer Comparison
Company Lynas Molycorp Avalon Rare Element Quest Arafura Tasman Frontier
‘Central Zandkops
Deposit Mt Weld Mtn Pass Nechalacho Bear Lodge Strange Lake Nolan's Bore Norra Karr
Zone’ drift
Location Australia California NW Territories Wyoming Quebec Australia Sweden South Africa
TREO Grade 8.08% 7.04% 1.70% 3.45% 1.20% 2.80% 0.54% 3.12% 2.28%
Tonnes per annum 11kt / 22kt 19kt / 40kt 10kt 10kt 12kt 20kt 6kt 20kt
Rare Earth Product Separated REO Separated REO Separated REO Concentrate Concentrate Separated REO Concentrate Separated REO
Project stage Commissioning Commissioning PFS PEA PEA PFS PEA PEA
Ancylite & Fluorapatite &
Primary RE Mineral Monazite Bastnaesite Fergusonite Kainosite Eudialyte Monazite
bastnaesite Cheralite
Deposit type Pipe Pipe Tabular Dykes/veins Veins Veins Tabular Pipe
Mining Method Open Pit Open Pit Underground Open Pit Open Pit Open Pit Open Pit Open Pit
Climate Arid Arid Arctic Cold Cold Arid Moderate Good
Infrastructure Poor Good Poor Good Poor Poor Good Good
Industry Partner Yes Yes No No No No No Yes
Start-up year (est.) 2012 2012/13 2016 2016 2017 Unknown 2016 2015
Market Cap $1,222m $1,054m $171m $185m $76m $86m $85m $53m
Enterprise Value ($m) $1016m $684m $111m $149m $60m $59m $74m $23m
45 │
46. Summary
World-class rare earth deposit
high grade, attractive REE distribution, large tonnage, on surface, low radioactivity
Well positioned to become the next major, low cost producer of separated rare earth
aoxides and the largest non-Chinese producer of separated heavy rare earth oxides
Confirmed by results of PEA
PFS in progress and targeted for completion in Q1 2013
Only rare earth junior with a definitive agreement with a strategic industry partner
Experienced management and technical teams
Strong financial position and fully funded to complete PFS and DFS
Share price trading at significant discount to peers
Share buy-back commenced late Q2 2012
46 │
48. Senior Management Team
Senior Management team with extensive experience of exploration and development of
mineral projects in Southern Africa, rare earths, financing and corporate development
James Kenny B Comm, MBS Philip Kenny B Eng, MBA
Chief Executive Officer Chairman
20+ years experience in natural resources sector as an 25+ years experience in natural resource sector.
executive, adviser and broker. Co-founder of Frontier and Founder and former Executive Chairman and CEO of
centrally involved in all aspects of Frontier's Firestone Diamonds plc, an AIM-listed diamond mining
development, corporate, strategic and financing activities company focused which built and operated diamond
since incorporation. mines in South Africa, Botswana and Lesotho.
Derick de Wit B Tech, Chem. Eng.
Paul McGuinness B Comm, ACA Vice President, Project Development
Chief Financial Officer
15+ years experience in minerals industry. Has managed
15+ years experience in investment banking and
or prepared more than 30 independent reviews, scoping,
financial control with Arthur Anderson, Salomon Brothers,
pre-feasibility and definitive feasibility studies in Africa
Schroders, Collins Stewart and MG Capital.
and Canada.
Dr. Stuart Smith B Sc, PhD Ms Vivian Wu B Sc, EMBA
Vice President, Exploration Business Development Director- Greater China
30+ years experience in mineral exploration with 20+ years experience in rare earth industry in senior
particular experience in rare earths, uranium, base roles with China Minmetals Corporation, Rhodia (China)
metals and diamonds. Investment Co and Treibacher Industrie AG.
48 │
49. Independent Non-executive Directors
Anu Dhir (Canada) B.A., J.D. Eamonn Grennan (Ireland) B.Sc, M.Sc
Former VP Corporate Development and Company (Ireland)
Secretary of Katanga Mining Limited. Managing Director Independent consulting geologist with over 40 years
of Miniqs Limited, Non-executive Director of Anooraq experience as an exploration manager, geologist,
Resources Corporation and Non-executive Director of consultant and senior lecturer. Former President of the
Compass Asset Management. Irish Association for Economic Geology and member of
the Consultative Committee of the Irish Geological
Crispin Sonn (South Africa) B.A., B.Comm Survey.
Executive Director of Old Mutual South Africa, the largest
integrated financial services company in South Africa.
Chairman of the Old Mutual Foundation, founding
Chairman of Foodbank South Africa and Non-executive
Director of Capespan (Pty) Ltd.
49 │
50. Principal Zandkopsdrift Consultants
Consultant Responsibility
Archaeological, botanical, air quality, human health risk and radiological impact assessments
Africa Geo-Environmental Services Mine closure plan and estimate of financial provision
Water fatal flaw analysis and water baseline study
Africa Remediation Technologies Sea water desalination plant scoping study
Benchmark Risk Advisory Independent risk assessment
Cameron Cross Incorporated Environmental permitting legal opinion
Corli Havenga Transportation Engineers Access routes and logistics surveys
EHL Consulting Engineers Eskom bulk power supply application
Epoch Resources Tailings disposal facility design
KPMG Tax and corporate structure
Metallurgical Development Services Independent process consultant
MSA Group Geological model and mineral resource estimation
SGS Minerals Services and
Beneficiation and hydrometallurgical studies
Mintek SA
Design of the concentrator, acid cracking, sulphuric acid and separation plants, including
SNC Lavalin Group
associated infrastructure and services, and capital and operating cost estimates
Sound Mining Solution Geotechnical assessment and mine design
Technical and economic review of the project, preparation of financial model and project
Venmyn Rand
valuation, preparation of independent technical report on the results of the PEA and the PFS
50 │
51. Zandkopsdrift opex versus peers
Opex of Projects planning to or producing separated REOs Zandkopsdrift’s concentrator and
30.00
separation plant opex compares
well with other rare earth projects
Separation cost per kg
globally
US$ per Kg of Separated REO
25.00
Mining, conc. & transport cost per kg Opex primarily driven by reagent
20.00 and energy costs
15.00 The PEA assumes that HCL for the
Saldanha Separation plant will be
10.00 purchased at market rates and that
a sulphuric acid plant will be built at
5.00 the mine site which will also provide
power to operate the mine and
0.00
concentrator
Lynas (2) Frontier (2) Arufura (2) Molycorp (1)
Frontier will continue to further
optimise the Zandkopsdrift Project
(1) Molycorp Q1 2012 actual cost. Molycorp forecasts a 90% reduction in opex but does not
break down costs between separation and other operating costs opex including looking at ‘over the
(2) Based on a US$/A$ exchange rate of 1.07 and a USD/ZAR rate of 7.8
fence’ reagent supply opportunities
51 │
52. Opex versus peers producing a mixed RE concentrate
Projected Opex of projects producing RE concentrate
20 Frontier’s operating cost for the
18 17.27 production of a mixed rare earth
16
concentrate is considerably lower than
US$ per Kg of Concentrate
for other projects that are planning on
14
producing a concentrate
12 10.93 11.28
10
10.09
The Opex cost advantage of
Zandkopsdrift deposit is driven by its
8
6.05 favourable location, relative ease of
6
mining, the monazite host mineral, and
4 the nature of the deposit.
2
0
Frontier (1) Rare Element Tasman Quest Matamec
(1) Based on a USD/Rand rate of 7.8
52 │
53. Capex versus peers producing mixed RE concentrate
Mine & Concentrator - Total Costs
600
Several of Frontier’s peers plan to produce a mixed
500 rare earth concentrate rather than separated rare
Total Cost US$m
earth oxides
400
The production and sale of rare earth concentrate
300
may be a more challenging business model as, at
200 present, there are no available western separation
100
plants that can toll separate rare earth concentrate.
In addition sales of RE concentrate to China may
- be impacted by the export quota system (and
Frontier Matamec Rare Element Quest (12kt)
(20kt) (5kt) (10kt) therefore the price achievable for the RE
Mine & Concentrator Costs per kt of RE product concentrate could be based on a discount to the
70 China domestic price rather than the China FOB
Total Cost Per Kt REO - US$m
60 price as many projects have assumed)
50 The cost advantage of the Zandkopsdrift Project
40 can also be seen in the Capex cost of the
30
Zandkopsdrift mine and concentrator plants to
produce a mixed rare earth concentrate .
20
10
-
Frontier Rare Element Quest (12kt) Matamec
(20kt) (10kt) (5kt)
53 │
54. Relative REO Distribution of Major Western Deposits
Lynas Molycorp Frontier Rare Element Arafura Avalon Quest
REO price
Rare Earth Oxide ($/kg)2
Mt Weld Mtn Pass Zandkopsdrift Bear Lodge Nolans Bore Nechalacho Strange Lake
Lanthanum $14 25.2% 34.0% 25.4% 27.1% 19.8% 17.1% 14.4%
Cerium $15 45.2% 48.8% 44.2% 43.7% 47.6% 39.5% 30.0%
LREO
Praseodymium $83 4.9% 4.2% 4.5% 5.1% 5.8% 4.9% 3.3%
Neodymium $83 17.1% 11.7% 15.8% 18.0% 21.2% 19.2% 12.2%
Samarium $33 2.4% 0.8% 2.3% 2.7% 2.4% 3.8% 2.2%
Europium $1810 0.6% 0.1% 0.6% 0.7% 0.4% 0.5% 0.0%
Gadolinium $65 1.5% 0.2% 1.4% 1.4% 1.0% 3.1% 2.2%
Terbium $1400 0.2% 0.0% 0.2% 0.0% 0.1% 0.4% 1.1%
Dysprosium $735 0.5% 0.1% 0.8% 0.3% 0.3% 1.8% 3.3%
HREO
Holmium* $0 0.1% 0.0% 0.1% 0.0% 0.0% 0.3% 1.1%
Erbium* $0 0.2% 0.0% 0.3% 0.0% 0.0% 0.8% 2.2%
Thulium* $0 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0%
Ytterbium* $0 0.1% 0.0% 0.2% 0.0% 0.0% 0.6% 2.2%
Lutetium* $0 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0%
Yttrium $58 2.0% 0.0% 4.1% 1.0% 1.3% 7.8% 25.6%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Total – HREO 5.1% 0.5% 7.8% 3.4% 3.1% 15.5% 37.8%
Total – ‘Big 5’ 23.3% 16.1% 21.8% 24.1% 27.9% 26.8% 20.0%
*No value attributed to Holmium, Erbium, Thulium, Ytterbium and Lutetium as these elements have small markets, are typically produced to order and do not have regularly published prices.
REO prices from Metal Pages 1 November 2012
Peer group includes selected advanced rare earth projects with >200k TREO calculated on a code-compliant basis
54 │
56. Frontier/KORES
Joint Venture Signing December 2011
Shin-Jong Kim, President and CEO of KORES (seated lhs) said:
“In order to support Korea’s high technology, automotive and other industries, the
development of Zandkopsdrift will be a strategic priority project for the KORES Consortium
and a critical element of KORES’ efforts to secure a long term, stable source of rare earth
supply for Korean industry.”
56 │
57. Transition from Weathered to Fresh CPB (circa 90 meters depth)
Transition from Weathered CPB
High Grade Weathered CPB
Lower Grade Fresh CPB
57 │