Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (March 2023)
37 slides from Hastings Technology Metals's investor presentation, Mar 8, 2023
Slide 1: Into the Future
AUSTRALIA’S NEXT RARE EARTHS PRODUCER CORPORATE PRESENTATION | 8 MARCH 2023 Into the Future HASTINGS TECHNOLOGY METALS LIMITED | ASX : HAS | Hastings Technology Metals Limited | ASX : HAS Corporate Presentation, 8 March 2023
Slide 2: Important Notices and Disclaimer
Important Notices and Disclaimer All currency amounts are in A$ unless stated otherwise. Disclaimer This presentation has been prepared by Hastings Technology Metals Limited (“Company” or “Hastings”). It does not purport to contain all the information that a prospective investor may require in conne
Slide 3: Corporate Overview
Corporate Overview Developing the Yangibana Rare Earths Project in Western Australia CAPITAL STRUCTURE KEY SHAREHOLDERS ASX Code HAS L1 Capital 11.8% ASX Share Price (7 Mar 2023) $2.66 Top 20 Shareholders 44.7% Shares on Issue 129.2m Board & Management 5.5% Market Capitalisation $343.6m Cash (31 Dec
Slide 4: Australia’s Next Rare Earths Producer
Australia’s Next Rare Earths Producer Globally significant • NdPr critical to the global energy transition - permanent magnets are key components of EV’s and wind turbines supplier of NdPr • NdPr market expected to be in significant supply deficit by late 2020s - Yangibana to account for 6-8% of glo
Slide 5: Our Core Markets
hit HASTINGS echnology Metals Limited OUR CORE MARKETS
Slide 6: Primary uses of High Tech Permanent Magnets
Primary uses of High Tech Permanent Magnets Light weight powerful magnets required in high rotation applications 6 6
Slide 7: Rare Earths in the Spotlight
Rare Earths in the Spotlight NdPr oxide is a critical input for NdFeB magnets used in Wind Turbines and Electric Vehicles Significant Support from Governments NdPr are critical elements of the global energy transition “Australian Government’s Critical Mineral Facility to provide AUD 1.25 billion to
Slide 8: Global Supply Deficit - Approaching Reality…
Global Supply Deficit - Approaching Reality… Market for NdPr will be in deficit over coming decade due to strong demand growth • Global NdFeB (“sintered NdFeB Demand1 magnets”) demand forecast to increase ~4x over the period 2021- 2038 (CAGR 8.3%) ‘000 tonnes NdFeB • Sizeable supply gap emerges in n
Slide 9: EV - Catalyst for NdPr Demand
EV - Catalyst for NdPr Demand Yangibana can supply NdPr magnets for >1.5 million EVs per year (if 100% sales to this channel) Expected Growth of Electric Vehicle Sales Worldwide 25 20 Commercial (truck and vehicle) EV (electric vehicle) PHEV (plug-in hybrid electric vehicle) 15 HEV (hybrid electric
Slide 10: Strong demand supporting robust NdPr Prices
Strong demand supporting robust NdPr Prices NdPr Oxide Price (Jan 2020 to Mar 2023)1 Indicative NdPr Price 2022 to 20382 Pr6O11 25%, Nd2O3 75% ExW China 140 US$/kg, VAT Inc. (REAL, Dec 2021) 200 120 175 100 150 Yangibana 80 Construction US$/kg 125 Period 60 100 75 40 50 20 25 0 2017 2018 2019 2020 2
Slide 11: Yangibana Overview
hit HASTINGS echnology Metals Limited YANGIBANA OVERVIE
Slide 12: Yangibana Rare Earths Project
Yangibana Rare Earths Project Proven and de-risked flowsheet delivering high-value MREC product to global market Downstream – Onslow Upstream - Yangibana Mine Site Hydrometallurgical Plant and Beneficiation plant Broome Halls Creek Port Hedland Dampier Mining Beneficiation ~35,000 tpa ~35,000 tpa Hy
Slide 13: Resource and Reserve Development
Resource and Reserve Development Yangibana Rare Earths Project Mineral Resources and Ore Reserves over Time 30 25 20 Million Tonnes 15 10 5 0 Aug 2014 Jul 2018 Jul 2021 Jan 2017 Jun 2017 Jan 2019 Feb 2023 Oct 2015 Nov 2014 Nov 2017 Nov 2019 Mineral Resources Ore Reserves 13
Slide 14: Resource upside: Opportunities abound
Resource upside: Opportunities abound1 • Existing 29.93Mt Mineral Resource has been defined over 24km of strike length (green lines). • Additional exploration potential strike length of 42km identified (orange lines) Ironstone showing orange monazite crystals 1 Refer ASX announcement “Potential iden
Slide 15: Yangibana Enabling Works 80% Complete
Yangibana Enabling Works 80% Complete On target for 100% completion in mid-2023 1. Kirrbili Village (300 person camp) 2. Water Supply 3. Airstrip 4. Access Road 5. Communications 15
Slide 16: Yangibana Commercials
hit HASTINGS echnology Metals Limited YANGIBANA COMMERC
Slide 17: Business Case Key Metrics
Business Case Key Metrics NOTE: February 2022 Business Case1 NPV8 (post-tax) A$1,012M IRR / Payback 26% / 2.7 years Capex ~A$658M (incl. Growth allowances & Contingency) NdPr Oxide Price US$112/kg (average LOM) Average Annual EBITDA A$295M p.a. Opex A$24.17/kg TREO (real, January 2022) Initial Mine
Slide 18: Capex – being reviewed
Capex – being reviewed Competitive capital cost (A$m)1 Yangibana Project capex breakdown (%)2 • Feb-22 estimates of $658m based on market testing in 2021 Concentrate Oxide Carbonate Yangibana Onslow Indirects Contingency 1,678 • Current review indicates 1,590 increases due to market 10% inflation, d
Slide 19: Competitive Opex
Competitive Opex MREC (t) TREO% NdPr:TREO % of NdPr/t REO (t) NdPr (t) Yangibana Operating Costs1 China 27,750 59% 20% 12% 16,373 3,275 Mining Processing Site G&A Corporate Hastings 15,000 59% 37% 22% 8,850 3,400 8% 9% 23% 60% • A$24.17/kg TREO (real, January 2022) • Yangibana almost 2x cheaper to s
Slide 20: Revenue - NdPr driving value
Revenue - NdPr driving value 36% LoM NdPr content1 NdPr – 90% of expected Yangibana revenues2 NdPr Dy Tb Other 36% 4% 3% 3% 24% 21% 16% 14% 90% Yangibana Mt Weld Baotou Mt Pass Sichuan • 36% LoM NdPr content – surpassing • 90% of expected Yangibana revenues to global leaders come from NdPr 1 Hasting
Slide 21: Funding
Funding1 Hastings continues to advance funding discussions ~$450M ~$450M Hastings • NAIF approval for $170M funding plus Debt Technology Equity $50M cost overrun facility Metals • Advanced discussions with EFA and NAIF Cash Commercial Banks on >$200M facilities $170M ~$150M (Feb-23) • Hastings conti
Slide 22: Significant Government Support
Significant Government Support1 • NAIF to provide $220m loan to help fund the construction of Yangibana and associated infrastructure Federal Minister for Resources - Madeleine King, 17 January 2023 “support for this [Yangibana] project underlines the Albanese Government’s commitment to reach net ze
Slide 23: Offtake Commitments and Interest
Offtake Commitments and Interest >80% MREC offtake interest for 10 years from strong Western counterparties Counterparty Counterparty thyssenKrupp Materials Trading Schaeffler Technologies AG Solvay Neo Performance Materials4 GmbH (“TMT”) (“Schaeffler Tech”) Counterparty headquartered Essen, Germany
Slide 24: Excellent ESG Credentials
Excellent ESG Credentials Becoming an environmental, cautious, fair and transparent rare earth producer Hastings ranked 4th globally out of 159 companies by Sustainalytics Diversified Metals Mining subindustry: • Ranked 4th out of 159 companies Diversified Metals industry: • Ranked 9th out of 193 co
Slide 25: Key Milestones
hit HASTINGS echnology Metals Limited KEY MILESTONES
Slide 26: Construction Schedule
Construction Schedule 2023 2024 2025 2026 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Equity Contribution Debt Period Pre-Completion Revenues Enabling Works Yangibana REE Project Roads (Airstrip, Roads, Bulk Works) Process Plant Production Ramp Up to ~35,000 tpa MAIN CONS
Slide 27: Upcoming Milestones
Upcoming Milestones Mid-2023 Kirrbili Village and Yangibana airstrip complete Mid-2023 Funding solutions in place Q3-2023 Main Construction commences at Yangibana Q1-2025 Commission beneficiation plant Mid-2025 Commission hydromet plant Q3-2025 First MREC product on ship 27
Slide 28: Global Opportunity
hit HASTINGS echnology Metals Limited GLOBAL OPPORTUNI
Slide 29: HAS 2.0: Mine-to-Magnet Strategy
HAS 2.0: Mine-to-Magnet Strategy1 Hastings 1.0 is focused on the delivery of the Yangibana Project. The 20% strategic investment in Neo2 enables Hastings to pursue its mine-to-magnet business strategy. HAS 1.0 - DELIVERY BY 2025 HAS 2.0 – MEDIUM TERM VISION 1 2 3 4 5 6 7 Mining Beneficiation Hydrome
Slide 30: Europe to be a Key Market for EVs
Europe to be a Key Market for EVs Europe is expected to be a major hub for the production of EVs and therefore a key source of demand for NdFeB permanent magnets European Gigafactories1 “Volkswagen’s product portfolio is focused on electric mobility. The last purely combustion-driven platform will b
Slide 31: Summary
hit HASTINGS echnology Metals Limited SUMMARY
Slide 32: Australia’s Next Rare Earths Producer
Australia’s Next Rare Earths Producer Globally significant supplier of NdPr • Yangibana’s mixed rare earth carbonate (MREC) product can deliver 6-8% of global NdPr supply Offtake secured with blue- • >80% MREC offtake interest for 10 years from strong Western counterparties (thyssenKrupp, chip count
Slide 33: Begin the Future
Begin the Future Enabling Green Technologies PERTH SINGAPORE CONTACT INFO Level 3, 5 Mill Street 10 Anson Road T: +61 8 6117 6118 Perth WA 6000 #19-02 International Plaza E: info@hastingstechmetals.com Australia Singapore 079903 W: hastingstechmetals.com
Slide 34: Accomplished Board of Directors
Accomplished Board of Directors Charles Lew Jean Claude Steinmetz Bruce McFadzean Guy Robertson Mal Randall Neil Hackett Executive Chairman Non Executive Director Non Executive Director Finance Director Non Executive Director Non Executive Director • Took over HAS in Dec 2013 • Joined the Board in J
Slide 35: Experienced Executives…to Deliver
Experienced Executives…to Deliver Alwyn Vorster Rudolph van Niekerk Matthew Allen Robert Klug Chief Executive Officer Chief Operating Officer (& Acting Project Chief Financial Officer General Counsel Director) • Joined Hastings in November 2022 with 30 years’ • Joined Hastings in early 2023 with ove
Slide 36: Project Milestones
Yangibana Milestones since 2014 First Resource to Construction Start Jun 20 Apr 21 Aug 22 Schaeffler TK Offtake Feb 22 Neo 22.1% Jan 23 Master Supply PROJECT MILESTONES Contract $140M Investment $220M Agreement signed Oct 22 signed NAIF Wyloo NAIF 70,000t Funding $150M Solvay Funding Nov 17 Feb 19 M
Slide 37: Mineral Resources and Reserves
Mineral Resources and Reserves Yangibana Project – Total JORC Mineral Resources (1) AS AT 30 OCTOBER 2022 Category Million Tonnes %TREO %Nd2O3+Pr6O11 TREO Tonnes Measured 4.97 0.96 0.37 47,721 Indicated 19.51 0.88 0.32 171,936 Sub-total 24.49 0.90 0.33 219,657 Inferred 5.45 1.05 0.31 57,298 TOTAL 29
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