Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Hastings Rare Metals — Investor Presentation (July 2012)
29 slides from Hastings Technology Metals's investor presentation, Jul 9, 2012
Slide 1: ASX Announcement: Investor Presentation Update
ASX Announcement 9 July 2012 For personal use only INVESTOR PRESENTATION UPDATE Hastings Rare Metals Limited ABN 43 122 911 399 An updated Investor Presentation is attached. Mr Steve Mackowski, Technical Director, will be presenting this Level 9, 50 Margaret Street week at: Sydney NSW 2000 PO Box R9
Slide 2: Supplying Heavy Rare Earths for New Technologies
Supplying Heavy Rare Earths For personal use only For New Technologies June 2012 Investor Presentation
Slide 3: Important information
Important information All currency amounts are in AUD$ unless stated otherwise. Disclaimer This presentation has been prepared by Hastings Rare Metals Limited (“Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential For
Slide 4: Agenda
Agenda For personal use only Our vision 1. Uses of rare earths To become an essential 2. Heavy rare earths supplier of heavy rare earths for high tech industries 3. Projects - Hastings project - Yangibana project 4. Why Hastings? 3
Slide 5: Uses of rare earths
Uses of rare earths For personal use only “The list of things that contain rare earths is almost endless”* * National Geographic Magazine - June 2012 4
Slide 6: Benefits of rare earths
Benefits of rare earths For personal use only Reduces - Weight - Emissions - Energy consumption Allows - Greater efficiency - Performance - Speed - Miniaturisation - Durability - Thermal stability 5
Slide 7: Heavy rare earths are more valuable
Heavy rare earths are more valuable For personal use only $/kg 1200 $1,050/kg - There are 17 rare earth elements 1000 - Heavy rare earths are typically 800 substantially more valuable than the more common light rare earths 600 - Dysprosium oxide and Yttrium oxide will be Hastings primary products 40
Slide 8: World needs heavies
For personal use only 100 0 10 20 30 50 60 70 80 90 40 Wigu Hill Mountain Pass Sarfartoq heavies Nolans Bore Cummins Range Bear Lodge Eldor Hoidas Lake Mount Weld (ave) Steenkampskraal Zandkopfsdrift Rare earth distribution by project Eco Ridge Kvanefjeld Hastings project is 85% Nechalacho Dubbo Kip
Slide 9: In serious undersupply?
In serious undersupply? For personal use only Dysprosium oxide supply/demand Critical Supply Matrix (5-15yr) Hastings Demand 2.5x 2010 REE mix Tonnes p.a. 23% shortfall 4000 3447 3500 3000 2799 2500 2240 2000 1902 Supply Demand 1500 1377 1353 1000 500 0 2010 2015 2020 Based on IMCOA and Oko-Institut
Slide 10: Forget Chinese supply
Forget Chinese supply For personal use only Tonnes (‘000) Chinese export quota CSIRO “Forget Chinese supply” • Need all they can produce • The wrong rare earths • China may become a net importer of Dysprosium, Yttrium & Neodymium • Quotas introduced in 2005, plus price levies of 10%-15%, plus enviro
Slide 11: Sustained price increases
Sustained price increases $/kg Dysprosium oxide For personal use only 2500 2000 1500 1000 500 0 Heavy rare earth prices are 10 to 15 times $/kg 180 Yttrium oxide 2009 prices 160 140 120 100 80 60 40 20 0 *Metal pages, China FOB prices 10
Slide 12: The Hastings project (100%)
The Hastings project (100%) For personal use only • Largest heavy rare earth project in Australia, fourth largest globally* • Resources for +25 years at 1mtpa • To produce over 10,000tpa saleable product including: 150tpa Dysprosium oxide 1,000tpa Yttrium oxide 2,500tpa Niobium oxide 6,500tpa Zircon
Slide 13: Resources
Resources For personal use only • 36mt Indicated and Inferred Resources at 0.21% TREO (0.18% HREO), 0.89% ZrO₂ and 0.35% Nb₂O₅ • Open at depth and along strike to the south 12
Slide 14: Fourth largest HREO project
Fourth largest HREO project For personal use only Advanced Rare Earth projects, sorted by contained tonnes of HREO Deposit Company Status Contained Resource % % HREO:TREO HREO mt TREO HREO % HREO PROJECTS (>35% HREO:TREO) Strange Lake QRM Ind/Inf 852,892 229.89 0.93 0.37 39.8 Norra Karr TSM Ind/Inf
Slide 15: Highest value per kg vs HREO peers
Highest value per kg vs HREO peers For personal use only NORRA KARR STRANGE LAKE NECHALACHO DUBBO HASTINGS (Tasman) (Quest) (Avalon) (Alkane) $/kg China In Situ In Situ In Situ In Situ In Situ Oxides FOB* % Dist $/kg % Dist $/kg % Dist $/kg % Dist $/kg % Dist $/kg Lanthanum 28 1.6 0.45 10.1 10.44 7.
Slide 16: Optimised processing
Optimised processing • Significant amounts of processing test work, including For personal use only 1990 pilot plant test at Warren Spring laboratory in UK • More than $10 million spent in exploration and lab test work • Previously optimised metallurgical test work resulted in extraction efficiencie
Slide 17: Hastings products
Hastings products • For personal use only Electric + hybrid vehicles Dysprosium Permanent • Wind turbine drives oxide Magnets • Disk drives • Loud speakers, sensors Yttrium • Monitors, TVs, LEDs Phosphors • iPad, Phones oxide • Lasers, filters, superconductors Niobium Alloy agent • Structural steel
Slide 18: Significant potential
Significant potential For personal use only • Current Indicated Resources confined to central 1.9km of mineralisation • Inferred Resources at depth below Indicated Resources and around the northern fold closure • Southern Extension locally returns high scintillometer readings over significant widths
Slide 19: Pathway to production
Pathway to production For personal use only Drill Program Exploration & Definition Reserve Optimise Product Suite Pilot Plant 2011 2012 2013 2014 2015 2016 Scoping Study Pre-Feasibility Study Pathway to Production Potential Definitive Feasibility Study EPCM EXPLORER DEVELOPER MINER 18
Slide 20: The Yangibana project (60%)
The Yangibana project (60%) For personal use only • Exploration Licences covering 240sq km • Surface rock chip samples to 19.4% TREO • Limited drilling indicates average grade of 1.6% TREO • Very high neodymium oxide grade averaging 4000ppm Nd₂O₃ or 25% of TREO • Elevated europium oxide grade (115pp
Slide 21: The Yangibana project
The Yangibana project For personal use only RC DRILLING RESULTS INCLUDED Prospect m %TREO Yangibana North 7 2.21 8 2.78 4 1.83 6 2.40 Gossan 3 2.12 The Lion's Ear 4 1.80 4 2.05 4 2.73 3 1.78 4 1.77 Hook South 2 1.65 Kane's Gossan 8 1.43 5 1.18 Yangibana 2 1.25 Yangibana – REO Mineralisation zones RO
Slide 22: Why Hastings?
For personal use only Why Hastings?
Slide 23: Strong board & management
Strong board & management For personal use only David Nolan Alastair Metcalf Tony Ho Steve Mackowski Guy Robertson Andy Border Chairman CEO Independent Technical Director CFO/Company Exploration • Head of • +25 years Director • +30 years technical Secretary Manager Corporate at resources and • Forme
Slide 24: Heavy rare earths
Heavy rare earths For personal use only HREO:TREO (%) 85 90 80 70 60 53 47 50 40 36 40 30 23 20 15 10 3.3 4.7 0.5 0 • The Hastings project is Australia’s largest heavy rare earths project and the world’s fourth largest • Heavy rare earths is a supply risk to high tech industries 23
Slide 25: Leverage to upside
Market Capitalisation For personal use only $millions 0 50 100 150 300 350 400 450 500 200 250 Namibian Northern Mins Ucore Exploration Frontier Commerce Res Peak Quest Resources Greenland Leverage to upside Mins Rare Elements Avalon Hastings Tasman Arafura Test work Alkane Great Western Lynas Pre-
Slide 26: HREO vs LREO
HREO vs LREO $millions $500 use only $2,516m $1,963m $450 $400 HREO Deposit $350 LREO Deposit Market Capitalisation $300 For personal $250 $200 $150 $100 $50 $- Source: Alto Capital 2012 25
Slide 27: Significant milestones
Significant milestones For personal use only Next 6 -18 Months • ANSTO work to validate and verify flow sheet and chemistry • Updated scoping study to confirm economics • Optimisation of product suite program • Define southern extension opportunity • Pre-feasibility study • Pilot plant design and op
Slide 28: Key reasons to invest
Key reasons to invest For personal use only Rare earths • Indispensable for modern manufacturing • Minimal practical substitution or recycling • Heavy rare earths is a supply risk Hastings • Largest heavy rare earths project in Australia, fourth largest globally • Advanced project: ‐ Resource of gre
Slide 29: Additional information
Additional information For personal use only ASX Code - HAS www.hastingsraremetals.com Shares on issue 129 million Listed options 61 million Phone: +61 2 9078 7674 Unlisted options 47 million Email: info@hastingsraremetals.com Major shareholders • Top 20 59% • Kongoni Nominees 18% • Singapore Invest
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