Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (March 2018)
34 slides from Hastings Technology Metals's investor presentation, March 2018
Slide 1: Future Producer of Neodymium & Praseodymium to the Permanent Magnet Industry
Future Producer of Neodymium & Praseodymium to the Permanent Magnet Industry HASTINGS Investor Presentation Technology Metals Limited March 2018
Slide 2: Disclaimer
All currency amounts are in A$ unless stated otherwise. Disclaimer This presentation has been prepared by Hastings Technology Metals Limited (“Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Comp
Slide 3: Hastings Equity Statistics
Hastings Equity Statistics Steady growth in market cap since Jan 2014 Hastings ASX Daily Price Chart • Market Cap ~ A$ 240m Offtake MOU 0.40 signed with 3,000 DFS Thyssenkrupp released • ~ 1200 Shareholders 0.35 Native title agreement signed +55% in 2017 2,500 First offtake 0.30 MOU signed 2,000 Top
Slide 4: Definitive Feasibility Study (DFS) – Yangibana
Definitive Feasibility Study (DFS) – Yangibana Independent Study by Wave International and Snowden • JORC resource of 21m tonnes supports an initial 8 years mine life on 100% held ground • Maiden JORC Probable Ore Reserves of 5.15 million tonnes on 100% owned ground • Highest known Neodymium & Prase
Slide 5: Yangibana Region
Yangibana Region • Gascoyne Junction – good support from local community for mining at Yangibana • Gifford Creek Airstrip – FIFO services • Carnarvon – high unemployment hence availability of casual labour • Geraldton, Onslow or Exmouth – ongoing economic assessment for inbound and outbound freight
Slide 6: Yangibana – Western Australia
Yangibana – Western Australia AAA Sovereign Rating, Established Mining Region Outcrops and level terrain, easy to mine • Total Yangibana area ~ 650 km2 • 21 years Mining Leases Granted since March 2016 ~ 50 km2 • Native Title Agreement signed November 2017 covering all tenements • Various Miscellane
Slide 7: JORC Resources
JORC Resources High Neodymium and Praseodymium content Total Yangibana JORC Resources (rounded) Category Tonnes Nd2O3+Pr6O11 TREO Nd2O3 Pr6O11 % % ppm ppm Measured 3,900,000 0.42 1.19 3,372 851 Indicated 8,600,000 0.42 1.25 3,368 858 Inferred 8,400,000 0.36 1.09 2,829 740 • Total Measured, Indicated
Slide 8: Maiden JORC Ore Reserves
Maiden JORC Ore Reserves High Neodymium and Praseodymium content JORC Probable Ore Reserves (rounded) Deposit Tonnes Nd2O3+Pr6O11 TREO Nd2O3 Pr6O11 % % ppm ppm Bald Hill 4,380,000 0.41 1.04 3,330 783 Fraser’s 780,000 0.67 1.58 5,320 1,380 TOTAL 5,160,000 0.45 1.12 3,630 873 * Hastings ASX release 28
Slide 9: Favourable Terrain
Favourable Terrain Mineralised out crops, shallow open pit mining Selective Mining – Bald Hill Selective Mining – Fraser’s
Slide 10: Native Title Agreement signed
Native Title Agreement signed Agreement reached with Thiin-Mah Warriyangka, Tharrkari and Jiwarli • Signed 9th November 2017 • < 1% royalty based on sales for the LoM • Applicable to all rare earth and niobium mined • Provision of jobs and training for the community 10
Slide 11: Yangibana Advantage – Highest Nd-Pr ratio
Yangibana Advantage – Highest Nd-Pr ratio Comparison of REO Distribution & Basket Value • Nd-Pr /TREO Between Hastings and Major Light RE Producers composition is China Outside of China validated by customers RE Oxide/TREO Unit Hastings Baotou Sichuan Mt Weld Mountain Pass in the MREC Lanthanum % 9.
Slide 12: Spot Prices of Rare Earth Oxides (Mar 2017)
Spot Prices of Rare Earth Oxides (Mar 2017) China F.o.B. Export prices 09-Mar-2018 (USD/kg) & YTD change Lanthanum oxide La2O3 $ 2.37 1% Cerium oxide CeO2 $ 2.30 0% Praseodymium oxide Pr6O11 $ 70.50 +11 % Neodymium oxide Nd2O3 $ 58 +22 % Dysprosium oxide Dy2O3 $ 190.50 +9 % Terbium oxide Tb4O7 $ 517
Slide 13: The Yangibana Process and Product
The Yangibana Process and Product From Mining to Mixed Rare Earth Carbonate (MREC) Successful Beneficia>on and Hydrometallurgy pilot plan test-‐work proves simple and effec>ve produc>on process flow sheet. 1m t.p.a. mined 30 - 40k t.p.a. Beneficiated ~15,000 t.p.a. MREC Concentrate = ~8,500 t.p.a. REO
Slide 14: Yangibana Flowsheet
Yangibana Flowsheet Pilot test work at ALS and ANSTO confirms production process Flotation Pilot Plant Operation at ALS, Perth • Beneficiation – more than 20x upgrade with 85% Nd-Pr recovery at optimum conditions • Hydrometallurgy – 41% Nd-Pr content in the Final flotation concentrate from Yangibana
Slide 15: Downstream Toll Treatment
Downstream Toll Treatment Estimated Tolling cost USD 2.50/kg (based on 15,000 tons MREC) Mixed Rare Earths Carbonate（MREC） Global Separation Capacity 15% Dewatering of Precipitated Solids MREC Dissolving 85% Separation with Solvent Extraction Calcination of Precipitated Solids China Outside of China
Slide 16: Global Rare Earth Supply 2016
Global Rare Earth Supply 2016 Supply diversification increasingly strategic % Total Global Rare Earth Supply 3,000 MT 11% 105,000 MT 3% 1,700 MT 1% 1% 1,100 MT 1% 14,000 MT HASTINGS 83% Second source Supply outside of China 2016 Global Supply 126,000 MT China Australia Russia India Excluding Illegal
Slide 17: Major Growth Applications
Major Growth Applications Demand drivers for permanent magnets from new technologies Wind turbines Electric Vehicles Magnetocaloric Refrigeration GWEC projects wind Policy changes, 30% to 50% more energy capacity to reach 2,110 GW Manufacturer EV Targets efficient & zero CFC usage – 5X increase from t
Slide 18: Early Works Programme
Early Works Programme Commenced Q1 2018 Bulk earthworks Accomodation Civil engineering Establised an Order Critical Path contracts scope village sourced design being Owners Team Long lead time items developed and and contract finalised for: for Early ie. Rotary Kiln, contractors under under •Access
Slide 19: Operational Readiness
Operational Readiness 1 2 3 4 5 Establish Critical Develop Establish and Review Risk Community Path for execution Maintenance enter into supply management Engagement via and establish Strategies in agreements protocols and signed Native Title monitoring process parallel to (parts, establish systems
Slide 20: Overall Mine Layout
Overall Mine Layout Optimising logistics between deposits • Mining by conventional drill and blast • Pit optimisations were completed to determine the economic mining limits for each deposit • Waste dumps located to minimise haulage distances • Mining schedule based on value creation and waste reduc
Slide 21: Project Status
Project Status • Purchase Order placed for Accommodation Village (240 rooms), contract negotiations underway • Tenders prepared for Bulk Earthworks • Tenders issued for Long Lead Items (Rotary Kiln and Sulphuric Acid Plant) 21
Slide 22: Capital Cost for Infrastructure A$50-60m
Capital Cost for Infrastructure A$50-60m Expected Completion 4Q 2018 • Roads /Bulk Earthworks - Access Roads & and River Crossings • Accommodation Village and support infrastructure • Upgrade airstrip at Gifford Creek • Power Plant – Diesel, LNG and Solar being evaluated • Alternative Trucking & Ship
Slide 23: Timetable to Production
Timetable to Production Milestones to production by Q1 2020 PROJECT IMPLEMENTATION SCHEDULE FOR YANGIBANA RARE EARTHS PROJECT 2017 2018 2019 2020 Activities N D J FMAM J J A S ON D J FMAM J J A S ON D J F M A Definitive Feasibility Study (DFS) Permitting & Approvals Design for Access Road & Bulk Ear
Slide 24: DFS Capital Cost A$335m
DFS Capital Cost A$335m An improvement of 20% from PFS A $ Cost Centre A$ Million Cost Centre Million Process Plant $130.2 Non Process Infrastructure $105.1 Mining Crushing and Screening 3.6 Mine Infrastructure 3.9 Contingency 1% 13% Grinding 14.1 TSF 1,2 and 3 19.5 Flotation 27.0 Evaporation Pond 0
Slide 25: DFS Operating Cost A$17.06/kg of TREO
DFS Operating Cost A$17.06/kg of TREO An improvement of 30% from PFS • Processing Costs – significant gains achieved in metallurgical process resulted in lower reagent consumption and costs decrease by 47% • Minor increases in General & Admin costs mainly reflecting corporate admin expenses • Resour
Slide 26: Funding Programme
Funding Programme Commenced Q1 2018 • Project Finance funding – 65% Debt : 35% Equity Senior Debt and Subordinated Debt Senior Debt and Subordinated Debt ~ $220m • Senior & Subordinated Debt financing - potential ~ A$200 --250m sources: Working Capital ~ A$30m ü Export Credit Agencies ie. Euler Her
Slide 27: Project Drawdown
Project Drawdown Milestones, Timeline & Expenditure Major CAPEX Milestone & Drawdown Major CAPEX Milestone & Drawdown $(M) (exclude con>ngency) 2018 $(M) (exclude con>ngency) 2019 100 100 50 $50m 50 $107m Process & Sulphuric Process & Sulphuric Acid Plant , Rotary Kiln Acid Plant , Rotary Kiln 20 20
Slide 28: Projected Funding Drawdown
Projected Funding Drawdown Schedule to determine funding requirement HAS Projected Quarterly Drawdown and Proposed Cash Raising (A$M) Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 $0 -$10,000 -$20,000 $50M $50M Equity -$30,000 Raising Equity -‐ Shares -$40,000 placement/ -$50,000 Rights i
Slide 29: Board of Directors
Board of Directors Experienced Directors and Management Team Guy Robertson Charles Lew Jean Claude Steinmetz Finance Director & Company Non-Exec. Director / Executive Chairman Secretary Commercial Director • Corporate Finance Director HG Asia • Previously Chief Operating • 30+ years CFO experience O
Slide 30: Management Team
Management Team In depth experience and specialised skills Andy Border Pit Wah Chung Hannes Zandberg Robin Zhang General Manager Exploration Chief Financial Officer Project Director Process Engineering Manager • 40+ years experience as a • 18+ years experience in financial • 20+ years experience in R&
Slide 31: Specialised Technical Team
Specialised Technical Team Dr Kwan Wong Narelle Marriott KYSPYmet Mineral Processing Principal Engineer – Beneficiation Consultants - Flotation Specialist • 14+ years experience in the minerals • 50+ years practicing metallurgist with processing and mining industry extensive flotation treatment expe
Slide 32: Four off-take MOUs signed
Four off-take MOUs signed 73% of Yangibana production under offtake MOUs to German and Chinese customers Ø Thyssenkrupp Raw Materials Gmbh – 5,000 tonnes per annum of Yangibana MREC for 10 years; for the German and European automotive and other industries Ø Baotou Sky Rock Rare Earth New Material
Slide 33: Summary
Summary § Experienced management § MREC with high NdPr content § Market Cap A$240m team with rare earth production experience § DFS basket price:USD29.20/kg § NPV A$466m § Definitive Feasibility Study § Mine construction 2Q 2018 § IRR 78% (DFS) completed Nov 2017 Production Q1 2020 § EBITDA
Slide 34: Thank you. Q & A
Thank you. Q&A
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