Ardea Resources (ARL) Conference Transcript

Summary of Ardea Resources (ARL) Conference Call - July 23, 2025 Company and Industry Overview - Company: Ardea Resources (ARL) - Industry: Nickel and Cobalt Mining, Electric Vehicle (EV) Battery Supply Chain Key Points and Arguments 1. Kalgoorlie Nickel Project: The project is Australia's largest nickel cobalt resource and ranks in the top 10 globally, indicating its strategic importance [1][2] 2. Location and Infrastructure: The Goongari project is located 70 kilometers northwest of Kalgoorlie, with supportive community and infrastructure for rapid development [2] 3. Resource Scale: The project has a global resource of approximately 6 million tons, with 1.3 million tons of ore reserve at Goongari, sufficient to produce 33 million electric vehicles [3] 4. Joint Venture: Ardea has a strategic joint venture with Sumitomo Metal Mining and Mitsubishi Corporation, with partners earning a 35% stake through funding a definitive feasibility study (DFS) budgeted at $98.5 million [3][4] 5. Project Approvals and Funding: All project approvals are in place, and development debt has been secured, positioning the project favorably for development [4] 6. Nickel Laterite Production: Nickel laterites account for about 80% of global nickel production, utilizing high-pressure acid leach technology, which has been successfully implemented by partners in challenging jurisdictions [6][7] 7. Demand for Nickel: The demand for nickel is driven by the energy transition, electric vehicles, and large-scale energy storage, with traditional uses like stainless steel also showing strong growth [10][11] 8. Critical Minerals: Nickel and cobalt are classified as critical minerals in Australia, Japan, and the United States, with potential for scandium production as well [11][12] 9. Long Project Life: The project is expected to have a mine life exceeding 50 years, with the potential for additional resource expansion [13][14] 10. Cost Competitiveness: The project has demonstrated bottom cost quartile operating costs, with nickel-only operating expenses at approximately $10,000 per ton [15] 11. Tax Incentives: The Australian federal government has introduced a production tax incentive, providing a 10% tax rebate on processing operating costs, enhancing the project's financial metrics [16] 12. Exploration Potential: The Eastern Goldfields region offers opportunities for further expansion, hosting various critical minerals [18] 13. ESG Commitment: Ardea is committed to environmental, social, and governance (ESG) practices, including gender diversity and community engagement [19][20] Additional Important Information - Scandium Market: The current scandium market is small at about 40 tons per annum but is expected to grow, particularly in aerospace and fuel cell applications [12] - Stakeholder Relationships: Strong local stakeholder relationships have been established, contributing to community support for the project [20] - Future Developments: The DFS is expected to yield increased news flow as it progresses, with a focus on leveraging existing infrastructure for future expansions [17][21]