Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Macquarie Critical Minerals Forum 2023
33 slides from Hastings Technology Metals's conference presentation, Jun 28, 2023
Slide 1: ASX Announcement: Presentation – Macquarie Group's Critical Minerals Forum
\ ASX Announcement 28 June 2023 Presentation – Macquarie Group’s Critical Minerals Forum Australia’s next rare earths producer, Hastings Technology Metals (ASX: HAS) (Hastings or Company), advises that Teck Lim, Chief Financial Officer, is presenting at the Macquarie Group’s Critical Minerals Forum
Slide 2: Australia's Next Rare Earths Producer
Australia’s Next Rare Earths Producer Yangibana Rare Earths Project Macquarie Critical Minerals Forum Hastings Technology Metals Limited | ASX : HAS 28 June 2023
Slide 3: Importance notices and disclaimer
Importance 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”). This The Company is under no obligation to, nor makes any undertaking to, update or revise such for
Slide 4: Our investment proposition
Our investment proposition Yangibana is positioned to supply rare earths needed for permanent magnets for the global energy transition Access to significant value adding Global energy transition creating opportunities through strategic investment in demand for rare earth magnets for TSX-listed rare
Slide 5: Corporate snapshot
Corporate snapshot Stage 2 Hydrometallurgical plant Developing the world-class Yangibana Rare Earths Project in Western Australia Halls Creek Share price1 Shares on issue Market capitalisation Broome $1.21 129.2m $156m Port Hedland Dampier Onslow Onslow Plant Cash at 30 April 2023 Exchangeable bonds
Slide 6: Our markets
Our markets Macquarie Critical Minerals Forum | 5
Slide 7: Supplying the green economy
Supplying the green economy Rare earth magnets are critical inputs for electric vehicle traction motors and wind turbine generators Significant government NdPr are critical elements of the global energy transition support for rare earths Inflation Reduction Act LCD / PDP Screens Speakers Defence US$
Slide 8: Capitalising on high growth market
Capitalising on high growth market Fueled by the electrification trend – high growth in magnets for electric vehicles and wind turbines Anticipated Global REO Magnet Demand Growth by Industry1 216kt Electric drivetrains and wind energy to represent 59% of rare earth oxide demand for magnets by 2032
Slide 9: Global supply deficit imminent
Global supply deficit imminent Significant NdPr supply deficit expected – requiring around 13x Yangibana projects in the next decade NdPr Oxide – Forecast Supply – Demand Balance Supply Demand Demand • Demand for NdPr oxide expected double Forecast over the next decade, fuelled Q1 2025 Stage 1 conce
Slide 10: Yangibana project summary
Yangibana project summary Macquarie Critical Minerals Forum | 9
Slide 11: Unique tier one asset
Unique tier one asset World-class deposit with unrivalled high percentage of NdPr:TREO in the orebody Significant exploration targets providing growth optionality Average NdPr:TREO Ratio Yangibana Mineral Resources and Ore Reserves1 Mineral Resources Ore Reserves 60 Sichuan 14% 50 Exploration target
Slide 12: Yangibana Rare Earths Project
Yangibana Rare Earths Project Enhanced two-stage delivery model supporting a de-risked pathway to becoming Australia’s next rare earths producer by Q1 CY2025 Stage 1 – Concentrate Stage 2 – MREC Mining Beneficiation Hydrometallurgy Crushing, grinding, Cracking, leaching, 20.9 Mt Ore Reserve flotatio
Slide 13: Yangibana project progress
Yangibana project progress All primary approvals in place and ~$100m already invested in early infrastructure works at Yangibana Yangibana Airstrip – complete First flight on 18 May 2023 SipHon Well Borefield – complete 20km pipeline; 6 bores Kurrbili Accommodation Village SipHon Well Borefield Site
Slide 14: Beneficiation plant contract
Beneficiation plant contract Fixed-price contract for construction of beneficiation plant and associated infrastructure de-risking project delivery ~$210m binding terms sheet entered with GR Engineering Lowers project delivery risks, provides process and product quality guarantees Lower cost compare
Slide 15: Stage 1 capex estimates
Stage 1 capex estimates Capital intensity per % NdPr produced remains competitive with other developers Stage 1 capital cost Capex (as at 31-May-23) Total Cost Spent to Date Remaining % (A$M) (A$M) (A$M) 55 12% Plant Earthworks 30 - 30 6% Plant & NPI 180 - 180 38% 59 12% Total Plant 210 - 210 44% 21
Slide 16: Stage 1 opex estimates
Stage 1 opex estimates Opex intensity per % NdPr produced remains competitive with other developers Stage 1 operating cost Cost Cost 1.8 Total Cost 3.1 Operating Costs % A$/kg US$/kg 8% (A$M pa) 14% REO REO 2.3 10% Labour 25.8 14 3.1 2.1 1.8 8% Power 14.9 8 1.8 1.2 A$22.7/kg Reagents and Consumables
Slide 17: Strong project economics
Strong project economics Providing attractive returns through all stages of the Yangibana Project Stage 1 – Concentrate - MREC Stage 2 – MREC Yangibana mine and beneficiation plant Hydrometallurgical plant Update CONSTRUCTION PHASE • Tolling (via a third party) of Stage 1 Total capital costs $470m $
Slide 18: Stage 1 funding
Stage 1 funding1 Expected funding envelope of $770m, which could include up to 60% debt Hastings Debt Equity Lender discussions Technology ~$380 - $420m ~$350 - $390m • Advanced discussions with NAIF ($220m Metals Ltd debt facility), EFA ($100m letter of support) and commercial financiers (banks, bo
Slide 19: Project execution schedule
Project execution schedule Staged development strategy enabling a quicker and lower risk pathway to cashflow to support funding of Stage 2 2023 2024 2025 2026 2027 2028 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EPC terms Stage 1 - Yangibana agreed Enabling Works (Airstr
Slide 20: Concentrate and MREC offtake
Concentrate and MREC offtake Market-leading strategic counterparties Counterparty thyssenkrupp Materials Trading1 Neo Performance Materials2 Schaeffler Technologies AG3 Solvay4 Counterparty Essen, Germany Toronto, Canada Herzogenaurach, Germany LaRochelle, France headquartered Binding Framework Agre
Slide 21: Approach to sustainability
Approach to sustainability Helping to advance the Sustainability Development Goals as a signatory of the UN Global Compact Health and safety Maintained a loss time injury frequency rate of 0.0 during the period up to 31 March 2023 Climate Change Commitment of minimum 40 per cent renewables allowed f
Slide 22: Neo strategic partnership
Neo strategic partnership Macquarie Critical Minerals Forum | 21
Slide 23: Hastings mine-to-magnet strategy
Hastings mine-to-magnet strategy Focused on the staged delivery of the Yangibana Rare Earths Project, with optionality to pursue mine-to-magnet business strategy Stage 1 – Yangibana mine Stage 2 – Onslow Stage 3 – Mine-to-magnet strategy Mining Beneficiation Hydrometallurgy Oxide separation RE metal
Slide 24: Strategic partnership with Neo
Strategic partnership with Neo Offtake heads of agreement signed on 13 June 2023, building on the 19.9% shareholding in Neo Neo FY22 EBITDA of A$109m and net assets of A$703m Vertically integrated mine-to-magnet supply chain Potential rare earth sales to Neo • Stage 1 – Up to 25,000tpa concentrate R
Slide 25: Conclusion
Conclusion Macquarie Critical Minerals Forum | 24
Slide 26: Potential value upside
Potential value upside Strong correlation between benchmark NdPr price and Hastings share price over long term HAS 24-month share price vs NdPr oxide price1 8.00 Historical HAS Share Price (A$/sh) NdPr Price (Historical) NDPr Price (Blended Forecast) 200 180 7.00 160 6.00 Long-term NdPr Oxide Foreca
Slide 27: Our investment proposition
Our investment proposition Yangibana is positioned to supply rare earths needed for permanent magnets for the global energy transition Macquarie Critical Minerals Forum | 26
Slide 28: Appendices
Appendices Macquarie Critical Minerals Forum | 27
Slide 29: Board of Directors
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 December • Joined the Board in July • Joined
Slide 30: Executive Team
Executive Team Alwyn Vorster Rudolph van Niekerk Teck Lim Robert Klug Rachael Ward-Pryce Gareth Fleming CEO (interim) Chief Operating Officer Chief Financial Officer General Counsel Head of People Acting Project Director • Joined Hastings in • Joined Hastings in early • Chartered accountant with • J
Slide 31: Project milestones
First resource to construction Aug 2022 Feb 2019 Jun 2020 Oct 21 22.1% investment Successful second Schaeffler master supply Maiden in Neo; Wyloo pilot plant test – agreement signed Sustainability Report $150m investment Q3 2023 higher yield PROJECT MILESTONES Apr 2021 Feb 2022 Jan 2023 Debt financi
Slide 32: Neo Performance Materials
Neo Performance Materials Listed on the TSX and headquartered in Toronto, with a market capitalisation of CAD362 (A$412m) Background Share Price Performance – Last 12 months • Neo Performance Materials Inc. (Neo or the Company) is listed on the TSX and headquartered in Toronto, 18 0.9 Canada and has
Slide 33: Australia's next rare earths producer
Maiden flight to Yangibana Airstrip Australia’s next rare earths producer hastingstechmetals.com Macquarie Critical Minerals Forum | 32
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