Ann: Mines & Money / IMARC 2024, page-3

1. Corporate Overview and Mission

ASM aims to address the growing demand for critical minerals required in various advanced technologies, including renewable energy, electric vehicles, and defense. The company’s approach involves developing a robust, independent supply chain for high-purity rare earth oxides and critical metals, an area where supply is currently dominated by limited global sources.

ASM’s corporate structure includes a leadership team of experienced directors and executives who oversee strategic decisions. The company’s shares are publicly traded, with a market capitalization of approximately A$103.4 million, and the board includes a diverse mix of industry experts.

2. The Dubbo Project

The Dubbo Project, located near Dubbo, New South Wales, Australia, is ASM’s flagship mining venture. This site holds an extensive and unique ore body containing various critical minerals essential for advanced manufacturing. Key features of the Dubbo Project include:

• Resource Composition: It contains significant amounts of rare earth elements (REEs) such as neodymium, praseodymium, terbium, and dysprosium, alongside other valuable materials like hafnium, zirconium, and niobium.
• Financial Projections: With an expected pre-tax Internal Rate of Return (IRR) of 23.5%, an annual cash flow of A$425 million, and a capital cost estimate of A$1.678 billion, the project presents strong financial prospects.
• Long-term Resource Security: Dubbo is projected to have a 20-year mine life based on current reserves, with further resource availability extending up to 50 years.
• Environmental and Social Commitment: The project is targeting a carbon-neutral operation and adheres to rigorous Environmental, Social, and Governance (ESG) standards, positioning it in the top 10% of best-performing diversified metals-mining businesses in terms of sustainability.

3. Recent Developments in Dubbo

ASM has recently advanced the Dubbo Project, working closely with engineering partner Bechtel and ANSTO to enhance production capabilities, optimize processing flowsheets, and reduce capital and operational costs. Key developments include:

• Engineering Advancements: Bechtel has been contracted to provide final engineering services. Additionally, they completed an NPI (Non-Process Infrastructure) study for the site.
• Rare Earth Options Assessment: This assessment evaluates ways to minimize capital expenditure and shorten timelines for implementing rare earth production, addressing increasing global demand.
• Financial Support and Partnerships: The U.S. EXIM Bank has issued a US$32 million Letter of Interest for project financing, signaling strong interest in rare earth supply from the U.S.

4. Government Support and International Partnerships

ASM has secured substantial international government backing as countries seek to diversify their supply of critical minerals. Some highlights of this support include:

• Conditional Debt Funding: ASM has approximately A$1.5 billion in conditional funding commitments from Export Credit Agencies (ECAs), including US EXIM (US$600 million), Export Development Canada (A$400 million), and Export Finance Australia (A$200 million).
• Global Government Initiatives: Various programs, such as the U.S. Defense Production Act and EU and Australian critical minerals funds, show active support for initiatives like ASM’s Dubbo Project to stabilize the supply of high-tech metals.

5. Korean Metals Plant: Integrating the Supply Chain

ASM’s Korean Metals Plant (KMP), situated about 115 km south of Seoul in the Ochang Foreign Investment Zone, serves as a key component in ASM’s vision of a comprehensive mine-to-metals operation. This plant not only processes raw materials sourced from the Dubbo Project but also has a ramp-up strategy aligned with customer demand. Key aspects of the plant include:

• Production Capacity and Expansion: Currently ramping up to a 600-ton-per-annum capacity for rare earth metals, the plant plans to expand to a 3,600-ton-per-annum capacity in Phase 2.
• Product Focus and Market Reach: The plant primarily produces NdPr metals and NdFeB alloys for clients in Korea, the U.S., and the EU. The facility has also earned critical international certifications (ISO 14001, 9001, 45001, and ATF 16949).
• Sustainability Goals: ASM is committed to carbon neutrality for Scope 1 and Scope 2 emissions from the plant’s start, aligning with international environmental standards.

6. Strategic Vision: Building an Alternative Global Supply Chain

ASM’s integrated approach, covering everything from mining to metallization, provides an alternative to traditional supply chains currently dominated by a few global sources. This vertically integrated model aligns with strategic international interests and offers a sustainable and reliable source of rare earth elements and critical minerals.

In summary, ASM’s Dubbo Project and Korean Metals Plant form a vertically integrated supply chain for high-tech metals and critical minerals, which is strongly supported by international governments and industry stakeholders. With both projects advancing toward full-scale production, ASM is positioned to play a pivotal role in the global supply chain for these essential resources, catering to high-tech sectors with a focus on sustainability and innovation.