Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (October 2017)
36 slides from Hastings Technology Metals's investor presentation, Oct 30, 2017
Slide 1: Retracted and revised October Presentation and update on Definitive Feasibility Study
30 October 2017 Retracted and revised October Presentation and update on Definitive Feasibility Study Hastings Technology Metals Ltd (ASX:HAS) (the "Company") has today announced the retraction and revision of the October Presentation published by the Company on 26 October 2017. On 26 October 2017,
Slide 2: Future Producer of Neodymium & Praseodymium to the Permanent Magnet Industry
Future Producer of Neodymium & Praseodymium HASTINGS to the Permanent Magnet Industry Technology Metals Limited Investor Presentation ASX Stock Code: HAS October 2017 1
Slide 3: Disclaimer
HASTINGS Technology Metals Ltd 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 p
Slide 4: Equities Market Statistics
Equities Market Statistics • Market Cap ~ AUD172m • Shareholders ~1,100 +42% YTD , Avg Daily Vol ~ 970K • Top 10 shareholders = 70% • Top 5 shareholders: • Charles Lew & Family 29% • Mark Chang (founder Job Street) 6% • Neil Franks (ex-Glencore) 5% • Wide Growth 7% • Asia Dragons 6% • Share placemen
Slide 5: Western Australia Base
Western Australia Base • Australia Sovereign Risk Rating AAA/Aaa Advantages of geographic location (S&P/Moody’s) – lower cost of capital • Highly ranked for corporate governance and Rule of Law. (WJP Rule of Law Index 2016) ❏ Broome • Western Australia - long history of successful mining Brockman pr
Slide 6: Favourable Terrain
Favourable Terrain Above ground outcrops – level terrain, easy to mine Open Pit Mining on Flat Terrain Key Rare Earths: Neodymium (Nd) Praseodymium (Pr) Dysprosium (Dy) Terbium (Tb) Nd & Pr account for ~ 85% of in-ground economic value HASTINGS 5 Technology Metals Limited
Slide 7: Rare Earths
Rare Earths Key rare earths and applications vPermanent Magnets, Wind Turbines, E-Vs, Robotics, Speakers, Hard-Disks, Lasers vHE-Vs, Electron Microscopes, Batteries, IR-absorbing Optical vPermanent Magnets, Aircraft Glasses, Lenses, Chemical Engines, Ceramic Dyes, Welder’s catalyst Goggles, Magnetoc
Slide 8: Rare Earths Applications
Rare Earths Applications Multiple consumer products vPVC stabilisers vMRI & Medical vAppliances lasers Multiple applications vGlassware vLight Bulbs using rare and Crystal earths vSteel & Alloy vProtective Production Goggles HASTINGS vMilitary Applications 7 Technology Metals Limited
Slide 9: Permanent Magnets in Consumer/Industrial Products
Permanent Magnets in Consumer/Industrial Products vWind Turbines vHE-Vs, EVs, Auto- components: seat motors, windscreen, vElectric Motors mirror, window winders vRobotics vElectric mobility e-bikes & scooters vDisk Drives vHigh-speed rail – “MagLev” HASTINGS vMobile devices – speakers, vibration, ri
Slide 10: EV Revolution - No Turning Back
EV Revolution - No Turning Back Rise in demand for EV and HEV Bloomberg News, 5 July 2017 Volvo Vault to Volts, Planning to Pull Plug on Gasoline – between 2019 and 2021, the company will introduce 5 new 100% electric models The Times of India, 20 April 2017 - Government Policy for 2030 EV productio
Slide 11: Tesla Model 3
Tesla Model 3 Major manufacturer switch in EV technology to include Nd permanent magnets “Documents released by the U.S. Environmental Protection Agency (EPA) have indicated that the Model 3 RWD Long Range carline will use a 3 phase permanent magnet motor as the powertrain motor… the smaller size/we
Slide 12: Granted Leases
Granted Leases Mining, General Purpose & Exploration Leases • Total Yangibana area ~ 650 km2 • 21 years Mining Leases Granted since March 2016 ~ 50 km2 • No Native Title Claims on mineralised ground • Contain ~ 85% of JORC Resource • Various Miscellaneous and General Purpose Leases granted supportin
Slide 13: JORC Resources
JORC Resources High Neodymium and Praseodymium content Total Yangibana JORC Resources (rounded) • Oct 2017 updated JORC estimate increases Category Tonnes Nd2O3+Pr6O11 TREO Nd2O3 Pr6O11 Measured Resource by ~ 30% from July 2017*. % % ppm ppm Measured 3,792,000 0.42 1.18 3,350 840 Indicated 8,240,000
Slide 14: Future Drilling Potential
Future Drilling Potential Increasing JORC Resources & Mine Life • Aeromagnetic survey in 2016 identified 22 priority mineralised targets for future exploration after 2017. Extend mine life > 10 yrs. (18 Oct 2016) • Fraser’s Southwest Deposit drill results - high grade to 2.00% TREO (25 Oct 2016) • A
Slide 15: Yangibana Advantage – Highest Nd-Pr/TREO ratio
Yangibana Advantage – Highest Nd-Pr/TREO ratio Comparison of REO Distribution & Basket Value • REO/TREO Between Hastings and Major Light RE Producers composition is based China Outside of China on REO content in RE Oxide/TREO Unit Hastings Baotou Sichuan Mt Weld Mountain Pass beneficiated Lanthanum
Slide 16: Spot Prices of Rare Earth Oxides
Spot Prices of Rare Earth Oxides (October 2017) China F.o.B. Export prices 12-Oct-2017 (USD/kg) & YTD change Lanthanum oxide La2O3 $ 2.55 +11 % Cerium oxide CeO2 $ 2.55 +50 % Praseodymium oxide Pr6O11 $ 77 +59% Neodymium oxide Nd2O3 $ 60 +56 % Dysprosium oxide Dy2O3 $ 174 -2% Terbium oxide Tb4O7 $ 5
Slide 17: From Mining to Magnets
From Mining to Magnets The Supply Chain to Permanent Magnets – From Mining to Finished Products Industrial HASTINGS MREC into SREO SREO – Alloys & Magnets – Motor & Technology Metals Limited Magnet Makers Parts Consumer Products ALLOY MAKERS MINING to MREC SEPARATION COMPONENTS • China • Japan • EVs
Slide 18: Global Permanent Magnet Electric Motor Market
Global Permanent Magnet Electric Motor Market Region 2016 (Million USD) 2017 (Million USD) 2022 (Million USD) CAGR (%) 2017-2022 North America 665.7 719.9 1,087.6 8.6 Europe 688.1 744.2 1,118.3 8.5 Asia-Pacific 2,168.3 2,366.1 3,625.2 8.9 South America 152.5 165.8 245.8 8.2 Rest Of World (ROW) 44.6
Slide 19: Economics of Magnets
Economics of Magnets Global Market for Permanent Magnets - by Industry 2022 (USD m) NdFeB cheapest by strength per unit/sqcm Automotive 2,318.60 Materials Average Price Average Max. $/MGOe ($/lb.) Energy Product Industrial (MGOe) 2,666.40 8,532.60 Hard Ferrite 2.0 3.5 N/A Home NdFeB 75.0 30.0 2.3 ap
Slide 20: Policy Targets – Impact on Production of EVs
Policy Targets – Impact on Production of EVs Strong increase inevitable Deployment scenarios for EVs to 2030 in millions 220 • 2016 – Total EVs ~ 2m, representing 200 IEA Ideal Scenario 0.2% of global vehicle fleet 180 160 • Paris Targets ~ 120m EVs by 2030 Policy & AM Targets 140 • Subsequent gover
Slide 21: OPEC’s revised EVs growth forecast jumps 5x
OPEC’s revised EVs growth forecast jumps 5x 20
Slide 22: Major Growth Applications
Major Growth Applications Demand drivers for permanent magnets from new technologies Wind turbines New innovations Electric Vehicles Magnetocaloric Refrigeration GWEC projects wind capacity to reach 2,110 Policy changes; Manufacturer EV Targets; 30% to 50% more energy efficient, GW – 5X increase fro
Slide 23: Global Rare Earth Supply 2016
Global Rare Earth Supply 2016 Supply diversification increasingly strategic % Total Global Rare Earth Supply 11% 3,000 MT 3% 1% 105,000 MT 1% 1% 1,700 MT 1,100 MT HASTINGS 14,000 MT 83% Second source Supply outside of China 2016 Global Supply 126,000 MT China Australia Russia India Excluding Illegal
Slide 24: The Yangibana Process and Product
The Yangibana Process and Product The Steps from Mining to Mixed Rare Earth Carbonate (MREC) Successful Beneficiation and Hydrometallurgy pilot plant test-work proves simple and effective production process flow sheet 1m t.p.a. mined 30 - 40k t.p.a. Beneficiated ~15,000 t.p.a. MREC ~8,500 t.p.a. Con
Slide 25: Yangibana Beneficiation Flowsheet
Yangibana Beneficiation Flowsheet Successful completion of pilot plant test work Continuous Pilot Plant Test - Successfully validated simple and effective flowsheet Confirmed 70% TREO recovery rates and a concentrate Flotation Pilot Plant Operation at ALS, Perth upgrade to 23% TREO ~ 18 times from i
Slide 26: Yangibana Hydrometallurgy Flowsheet
Yangibana Hydrometallurgy Flowsheet Successful completion of pilot plant test work at ANSTO Final flotation concentrate from beneficiation pilot Hydrometallurgy Pilot plant undertaken for three phases: • Acid bake • Water leaching & impurity removal • Carbonate product precipitation All three phases
Slide 27: 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 28: Timetable to Production
Timetable to Production Milestones to production by 2H 2019 PROJECT IMPLEMENTATION SCHEDULE FOR YANGIBANA RARE EARTHS PROJECT 2017 2018 2019 Activities J A S O N D J F M AM J J A S O N D J F M AM J J A S O N D Definitive Feasibility Study (DFS) Permitting & Approvals Design for Access Road & Bulk Ea
Slide 29: Early works on Site
Early works on Site AUD 16 m raised in August to fund the following Preliminary Engineering Design Access Roads (18km) Accommodation camp River crossings (Lyons & Falls Creek) Long Lead Time Procurement Contingencies HASTINGS 28 Technology Metals Limited
Slide 30: Board of Directors
Board of Directors Experienced Directors and Management Team Tony Ho Guy Robertson Charles Lew Jean Claude Aris Stamoulis Non-Exec. Director Finance Director & Executive Chairman Steinmetz & Chair of Audit Company Secretary Non-Exec. Director / Executive Director / Committee • Chartered Accountant •
Slide 31: Management Team
Management Team In depth experience and specialised skills Viv Roberts Andy Border Pit Wah Chung Kok Hoong Leong Valerie Quay Director of Mining General Manager Chief Financial Officer Project Director Legal Counsel Operations Exploration • 18+ years experience in • 38 years’ engineering • Trained &
Slide 32: 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 33: Three off-take MOUs signed
Three off-take MOUs signed Strong level of interest and demand for Yangibana high Nd-Pr MREC Ø Baotou Sky Rock Rare Earth New Material Co. Ltd – 2,500 tonnes per annum (1 Aug 2017) Sky Rock produces high tolerance NdFeB permanent magnets. Main products include • Sintered Neodymium Magnets • Sintered
Slide 34: Listed Chinese Rare Earth Producers
Listed Chinese Rare Earth Producers Listed on SSE / HKEX Mkt Cap PE PB Company Name Ticker Price (USDm) 17F 18F 17F 18F China Northern Rare Earth Group High-Tech Co Ltd 600111:CH 15.14 8,308 232.9 194.1 6.5 6.3 China Molybdenum Co Ltd 603993:CH 7.14 21,689 45.8 34.0 4.0 4.0 Aluminum Corp of China Lt
Slide 35: Hastings Overview
Hastings Overview § Experienced management § Non-China source of supply § EVs exponential growth of team with rare earth of Mixed Rare Earth 5x from 2020 to 2040 production experience Carbonate (MREC) with high NdPr content § Market Cap AUD170m, § Definitive Feasibility Study attractive valuation co
Slide 36: Thank you. Q & A
Thank you. Q&A 35
Hastings Technology Metals — Investor Presentation (October 2017) on 6ix