Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (July 2022)
30 slides from Hastings Technology Metals's investor presentation, Jul 4, 2022
Slide 1: Australia's Next Rare Earths Producer
AUSTRALIA’S NEXT RARE EARTHS PRODUCER CORPORATE PRESENTATION | 4 JULY 2022 Begin the Future HASTINGS TECHNOLOGY METALS LIMITED | ASX : HAS | Hastings Technology Metals Limited | ASX : HAS Corporate Presentation, 4 July 2022
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: Important Notices and Disclaimer
Important Notices and Disclaimer ASX Listing Rule 5 requirements This presentation includes estimates of mineral resources and ore reserves in relation to Hastings’ mining projects. Hastings has previously reported these estimates in the ASX announcements “Yangibana Project updated Measured and Indi
Slide 4: Australia's Next Rare Earths Producer
Australia’s Next Rare Earths Producer • NdPr is critical to the global energy transition - permanent magnets are key components of EV’s and wind turbines with no substitute Globally significant supplier of NdPr • NdPr market expected to be in significant supply deficit by late 2020s - Yangibana esti
Slide 5: Corporate Overview
Corporate Overview Hastings is an emerging ASX-listed company focused on the development of its Yangibana Rare Earths Project Yangibana Project Corporate snapshot (1 July 2022) ASX: HAS Downstream – Onslow Hydrometallurgical Location Broome Market Cap. Share price ($/s) Halls Creek Wheatstone LNG Pr
Slide 6: Accomplished Board of Directors
Accomplished Board of Directors Jean Claude Steinmetz Bruce McFadzean Charles Lew Guy Robertson Mal Randall Neil Hackett Non Executive Director Non Executive Director Executive Chairman Finance Director Non Executive Director Non Executive Director • Joined the Board in Jul • Joined the Board in Jan
Slide 7: Experienced Senior Management Team
Experienced Senior Management Team Andrew Reid Matthew Allen Nick Holthouse Nick Bennett Narelle Marriott Lisa McGrath Valerie Quay Chief Operating Officer FCA, GAICD, F FIN GM Engineering & Project Manager Manager Process GM Environment Legal Counsel Chief Financial Officer Operation Readiness Deve
Slide 8: Yangibana Milestones since 2014
Yangibana Milestones since 2014 NOV 17 NOV 18 OCT 19 JUN 20 FEB 21 AUG 21 FEB 22 MAR 22 Native Title Skyrock Baotou EPCM Schaeffler Master $100M Earthworks NAIF board $40m agreement signed offtake contract contract signed Supply Agreement Equity Raised Construction approval Equity signed with DRA Gl
Slide 9: Strategic Purpose
Strategic Purpose We aim to be Australia’s next rare earths producer and play a vital role in supplying the world with its high grade NdPr rare earth Yangibana Rare Yangibana Hastings 2.0 Earths Project Expansion 1 Deliver Mixed Rare Earth Accelerate newly Partner with downstream Carbonate Product t
Slide 10: Yangibana Rare Earths Project
Yangibana Rare Earths Project Proven and de-risked flowsheet delivering high-value MREC product to global market Upstream - Yangibana Mine Site and Beneficiation plant Downstream – Onslow Hydrometallurgical Plant • Located in the Gascoyne Region, Western Australia • Located in the Onslow Region, Wes
Slide 11: Exceptionally high NdPr composition: Low mine grade to high metal output
Exceptionally high NdPr composition: Low mine grade to high metal output Significant NdPr metal output per tonne of MREC Simon’s Find vs Deposit A Simon’s Find vs Deposit A Simon’s Find vs Deposit A • 28 times lower head grade • 15% higher metal output Metal in Con (kgs NdPr) Mine Head Grade Benefic
Slide 12: Proximity to Plant: 8km long mineralised trend
Proximity to Plant: 8km long mineralised trend Major 8km long zone of economic mineralisation at Fraser’s - Simon’s Find - Bald Hill, 1 open in all directions 2 Simon’s Find contains 52% of rare earths as NdPr, provides good strong early cashflows to project 1Recent drilling program completed over 1
Slide 13: Yangibana Project Exceeding On All Key Metrics
Yangibana Project Exceeding On All Key Metrics Low capital development cost (AUDm)1 36% LoM NdPr content2 NdPr – 90% of expected Yangibana revenues3 Concentrate Oxide Carbonate 1,678 36% 3% 4% 3% 1,056 24% 21% 848 711 16% 658 14% 501 305 90% Dubbo ASM Nolans Ashram Kvanefjeld Yangibana Ngualla Songw
Slide 14: Value Proposition
Value Proposition Hastings will supply the raw commodities for the permanent magnet production process Current Focus for Hastings 1 2 3 4 5 6 7 Mining Beneficiation Hydrometallurgy Oxide Separation RE Metal Creation Alloy Creation Permanent Magnets Used for e.g. EV’s Toll treatment, Separated RE Cre
Slide 15: Yangibana Project – Project Budget
Yangibana Project – Project Budget Project is ‘shovel-ready’ following a comprehensive review and assessment of current inflationary pressures present in Western Australia Early Works Direct Capital Cost Indirect Capital Cost Total Capital Cost 2022 Capital Expenditure Update $9m Increase 2019 Capit
Slide 16: Yangibana Project – Funding
Yangibana Project – Funding Hastings continues to advance funding discussions and remains on-track to deliver first production from Yangibana in 2024 Status of Funding Discussions Near-Term Project Execution • Non-recourse project financing discussions initiated in early 2021, A$140m NAIF loan facil
Slide 17: 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 Rare Earth Applications Significant Support from Governments NdPr are critical elements for the global energy transition – currently no substitute exists for their application in
Slide 18: 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 NdFeB Demand NdPr market imbalance Global NdFeB demand will increase 3.9x over the period 2021- Sizeable supply gap emerges in later part of this decade due to 2038 (CAGR 8.3%)
Slide 19: NdPr Prices Increasingly Resilient
NdPr Prices Increasingly Resilient NdPr Oxide Price (5 years to March 2022) NdPr Price Forecast 2022 to 2038 NdPr Oxide prices have seen continued strength into 2022 now over US$140 per kg (incl. VAT) Forecast prices show continued strengthening during Yangibana construction and operations Source: A
Slide 20: Updated DFS Key Metrics
Updated DFS Key Metrics1 Hastings Revised issued February 2022 NPV8 (post-tax) A$1,012M Ore Reserve Mining 16.70 Mt @ 0.95% TREO and 15 year Life of Mine IRR / Payback 26% / 2.7 years 0.35% Nd2O3+Pr6O11 1.2 Mtpa ore feed Capex A$658M (incl. 13% Contingency) NdPr Oxide Price US$112/kg (average LOM) M
Slide 21: Yangibana Project – NPV Sensitivity Analysis
Yangibana Project – NPV Sensitivity Analysis Updated DFS demonstrates strong improvement in project NPV with upside/downside to key input variables being demonstrated below Foreign Exchange Rate Revised NPV Model assumption – Jan 2022 Fwd • AUD$1 :USD$0.64 A$1,106 M • AUD$1 :USD$0.75 A$728 M Capex M
Slide 22: Offtake Contracts
Offtake Contracts ~70% of production contracted for 10 yrs with strong offtake counterparties Counterparty Counterparty thyssenkrupp Materials Trading GmbH (“TMT”) Baotou Sky Rock Rare Earth New Materials Schaeffler Technologies AG (“Schaeffler Co., Ltd (“Skyrock”) Tech”) Counterparty Essen, Germany
Slide 23: Sustainability At the Core of All We Do
Sustainability At the Core of All We Do Committed to playing a key role in the push for a more sustainable world Transparent reporting – Maiden sustainability report released • Guided by Global Reporting Initiative (GRI) Standards, including the Mining and Metals Sector Disclosure Supplement • Mater
Slide 24: Yangibana Project Upcoming Milestones
Yangibana Project Upcoming Milestones Project progress accelerating with early siteworks currently underway Late 2024/Early 2025 Delivery of maiden MREC volumes to key customers Mid-late 2024 Commission Early 2024 hydromet plant Complete Mid 2023 procurement and supply Complete early works and Commi
Slide 25: Appendix A
Appendix A Yangibana Project Additional Materials | Hastings Technology Metals Limited | ASX : HAS Corporate Presentation, 4 July 2022
Slide 26: Mineral Resources and Reserves
Mineral Resources and Reserves Yangibana Project – Total JORC Mineral Resources (1) AS AT 30 JUNE 2021 Category Million Tonnes %TREO %Nd2O3+Pr6O11 TREO Tonnes Measured 4.9 1.01 0.38 49,442 Indicated 16.24 0.95 0.33 154,750 Sub-total 21.14 0.97 0.34 204,192 Inferred 6.27 0.99 0.31 62,225 TOTAL 27.42
Slide 27: Project Flow Sheet Extensively Tested
Project Flow Sheet Extensively Tested Yangibana: Beneficiation plant Project flow sheet • The conventional beneficiation process at Yangibana consists of crushing, XRF ore sorting, grinding, regrinding and flotation • The plant recovers a REO concentrate with an estimated grade of 27% TREO with a pr
Slide 28: Project Overview
Project Overview Operational Fly Camp supporting early construction workforce Figure 5. First blast initiated at Yangibana Figure 1. Yangibana Fly Camp Figure 2. Yangibana Fly Camp Figure 6. First blast successfully completed and ready for excavation. Figure 3. Permanent village site clearing at Yan
Slide 29: MREC Concentrate – Product Composition
MREC Concentrate – Product Composition Yangibana MREC Product Composition and Revenue split • Approximately 90% of Yangibana’s MREC Hastings concentrate revenue is high value NdPr MREC Current Prices LOM NdPr High value rare earths RE composition (28 June 2022) Revenue % • High value Terbium and Dys
Slide 30: 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
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