Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (November 2015)
43 slides from Hastings Technology Metals's investor presentation, November 2015
Slide 1: Yangibana Neodymium Project, Western Australia
Yangibana Neodymium Project Western Australia Investors Presentation | November 2015 Yangibana
Slide 2: Disclaimer
Disclaimer 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 investment in t
Slide 3: Experienced Board & Management
Experienced Board & Management Charles Lew Tony Ho Executive Chairman Non Executive Director & Chair of Audit • Private investor and entrepreneur Committee • Independent Director of RHB Banking • Director of Bioxyne, Greenland Minerals, and Group since 2004 Apollo Minerals • 30+ years experience in
Slide 4: Yangibana Project - Location
Yangibana Project - Location Accessible from Carnarvon • In the Gascoyne Region of Western Australia • 900km north of Perth • 280km north-east of Yangibana Carnarvon • 170km north-north-east Gascoyne Junction • Bitumen road from Carnarvon to Gascoyne Junction • Shire maintained road to southern Proj
Slide 5: Yangibana Project - Geography
Yangibana Project - Geography • Flat, open ground with excellent outcrop • Located on the drainage divide between the Gascoyne River system and the Ashburton River system to the north • Situated on Wanna Pastoral Station • Uninhabited 5
Slide 6: Yangibana Project – Outcropping Ironstones
Yangibana Project – Outcropping Ironstones History: • Significant rare earths mineralisation was intersected at Yangibana in the 1980s by Hurlston Pty Ltd. • Rare earths rich monazite mineralisation located in widespread ironstone outcrops. • Percussion drilling intersected significant mineralisatio
Slide 7: Yangibana Project - Tenements and Geology
Yangibana Project - Tenements and Geology • Yangibana Project controls all areas considered to have potential for Yangibana-style Neodymium rich Rare Earths mineralisation • Tenements cover 650km2 • Potential for large scale carbonatite- hosted Rare Earths mineralisation at depth 7
Slide 8: Location of Yangibana Rare Earths Prospects
Location of Yangibana Rare Earths Prospects 8
Slide 9: Yangibana Project - Markets and Nd2O3-Eq
Yangibana Project - Markets and Nd2O3-Eq Products and Markets • Neodymium, Praseodymium, Dysprosium and Europium are Yangibana’s main economic Rare Earths and Hasting’s efforts are directed to recovery of these 4 key rare earths. • Neodymium and Praseodymium account for 86% of total in-ground value.
Slide 10: Yangibana Project – Neodymium The Economic Advantage
Yangibana Project – Neodymium The Economic Advantage Neodymium-rich Rare Earths in the Eastern Belt • Western Belt mineralisation: Nd2O3 comprises about 18% of TREO • Eastern Belt mineralisation: • Nd2O3 comprises about 33% of TREO at Bald Hill South and • more than 40% at Fraser’s Deposit • Hydrome
Slide 11: Yangibana Project: PFS JORC Resources
Yangibana Project : PFS JORC Resources PFS Resource Drilling Objective: Delineate pit optimised JORC Indicated Resources sufficient for a proposed 1mtpa mining operation for 6-7 years additionally supported by JORC Inferred Resources sufficient for a 15-year mining operation 2015 Exploration drillin
Slide 12: Yangibana Project: PFS Total JORC Resources
Yangibana Project : PFS Total JORC Resources Resource Tonnes %TREO %Nd2O3-Eq Category Indicated 8,126,000 1.07 0.46 Inferred 4,236,000 1.07 0.41 TOTAL 12,362,000 1.07 0.44 These resources contain 132,500 tonnes of TREO, including 33,900 tonnes of Nd2O3 8,950 tonnes of Pr2O3 590 tonnes of Dy2O3, and
Slide 13: PFS Bald Hill South Deposit
Yangibana Project : PFS Bald Hill South Deposit Plan showing Thickness x Nd2O3-Eq% contours Mineralisation intersected over more than 1,200m strike length Shows mineralisation continues below a vertical depth of 60m 13
Slide 14: PFS Bald Hill South Deposit
Yangibana Project : PFS Bald Hill South Deposit Mineralised zone continues undiminished to the west & depth 14
Slide 15: PFS Yangibana West and North Deposits
Yangibana Project : PFS Yangibana West and North Deposits Yangibana West & North Thickness x Nd2O3-Eq% contours showing well defined high grade shoots within a continuous and extensive Ironstone vein defined by drilling over more than 1,600m strike length The mineralised limits of the vein are open
Slide 16: Yangibana Deposits – Resource Drilling Results
Yangibana Deposits – Resource Drilling Results Summary All Yangibana Deposits drilled to date have significant: • high grade neodymium, praseodymium, dysprosium and europium Resources • mineralisation that is open-ended along strike and at depth • RE Resources are amenable to low cost open pit minin
Slide 17: Yangibana Project: PFS Mining Studies
Yangibana Project : PFS Mining Studies Pit Optimisations: Based on the JORC Indicated Resources, expected metallurgical recoveries and predicted commodity prices, Snowden completed pit optimisation at Bald Hill South, Fraser’s, Yangibana West (100% Hastings) and Yangibana North (70% Hastings) deposi
Slide 18: PFS Mining Studies Ore Mined
Yangibana Project : PFS Mining Studies 700 Ore Mined 600 Fraser’s Total movement (kt) 500 400 300 200 Bald Hill South 100 Yangibana West & Yangibana North 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Quarter YN BH FR Mine Scheduling: Studies show a superior fina
Slide 19: PFS Mining Studies
Yangibana Project : PFS Mining Studies BALD HILL SOUTH PIT FRASER’S PIT Optimised pits and associated waste dump designs: YANGIBANA WEST – YANGIBANA NORTH PITS 19
Slide 20: Yangibana – Metallurgical Test Work
Yangibana – Metallurgical Test Work Comminution: • Standard tests confirm mineralisation is quite friable and significantly different to the host granite Beneficiation Test Work • Gravity, magnetics, and flotation techniques all showed promise • Flotation showing vastly superior results Hydrometallu
Slide 21: Yangibana Project - Metallurgical Investigations
Yangibana Project - Metallurgical Investigations Beneficiation by Flotation: (Bench scale testing composite drill samples at 80% passing -75micron) Eastern Belt Deposits (Composite sample Bald Hill South & Fraser’s Deposits): concentrate produced with an 18 times increase in TREO grade to 20.3% TREO
Slide 22: Beneficiation
Beneficiation Flotation technique 22
Slide 23: Yangibana Project – Simplistic Processing Flow Sheet
Yangibana Project – Simplistic Processing Flow Sheet 23
Slide 24: PFS Water Resources, Environmental & Native Title
Yangibana Project : PFS Water Resources, Environmental & Native Title • Water Resources: The Company has identified sources of water of potable quality from within existing Mining Leases sufficient to meet the long term requirements of a one million tonne per annum mining operation. • Flora and Faun
Slide 25: Green Solar Energy Supply to Processing Plant
Green Solar Energy Supply to Processing Plant • Solar Power Panels • Chlor-Alkali Plant 25
Slide 26: Yangibana Project: PFS Tenement Holdings
Yangibana Project : PFS Tenement Holdings Mining Leases Granted (shaded in pink) covering all of current JORC Resources All applications including Miscellaneous and General Purpose Leases expected to be granted by March 2016 Production now only requires compliance with standard regulatory processes
Slide 27: Yangibana Project - Development Timeline
Yangibana Project - Development Timeline Period Highlight: 4 Plan Actual % Complete (beyond plan) Yangibana Project - % Complete Actual (beyond plan) Development Timeline 2015 (Qs) 2016 (Qs) 2017 (Qs) 2018 (Qs) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Prefeasibility Study ON SCHEDULE Bankable Feasibil
Slide 28: Yangibana Project – Nov 2015 Scoping Study
Yangibana Project – Nov 2015 Scoping Study Item Units Base Case Plant Throughput Million tonnes per 1.0 annum (mtpa) Project Life Years 7.5 Product Value Neodymium A$m 2,307 Product Value Praseodymium A$m 530 Product Value Dysprosium A$m 151 Product Value Europium A$m 243 Exchange Rate AUD:USD 0.75
Slide 29: Nov 2015 Scoping Study Capital Costs
Yangibana Project : Nov 2015 Scoping Study Capital Costs Category Cost A$m Geology and Mining 9 Processing Plant 154 Project Services 10 Accommodation Camp 20 Infrastructure 28 Management/Services 62 Pre-Production Costs 12 Contingency (40%) 116 Total Capital Costs 411 29
Slide 30: Nov 2015 Scoping Study Operating Costs
Yangibana Project : Nov 2015 Scoping Study Operating Costs Per Tonne Run of Mine* Cost A$m Net Revenue 468 Operating cost 205 Net Profit 263 * That is per tonne delivered to Treatment Plant 30
Slide 31: Nov 2015 Scoping Study Extrapolated 15 Year Operation Case
Yangibana Project – Nov 2015 Scoping Study Extrapolated 15 year Operation Case Extrapolated Case • Based on an additional 8 years production of similar material • Financial evaluation indicates NPV (10% discount rate) of $900million to $1.1billion • Sound expectation of sufficient resources • with +
Slide 32: The Macro Economic Case for Nd/Pr/Dy Magnets
The Macro Economic Case for Nd/Pr/Dy Magnets Yangibana 32
Slide 33: Some End Use of Hastings’ Target Rare Earth Oxides
Some End Use of Hastings’ Target Rare Earth Oxides 33
Slide 34: Facts in Perspective
Facts in Perspective • In 2014 the world wide sales of mobile phones exceeded global population => 7.3B sales • Est of 0.1g of Nd in each mobile => 730 tons Nd/year • Wind turbine present one of the most significant potential areas of growth in demand for NdFeB magnets (permanent magnets) • A 2MW wi
Slide 35: Demand vs Supply - Neodymium Oxide
Demand vs Supply - Neodymium Oxide Adamas Intel – October 2014 35
Slide 36: Demand vs Supply - Dysprosium Oxide
Demand vs Supply - Dysprosium Oxide Adamas Intel – October 2014 36
Slide 37: What’s being said since the VW Emissions Scandal
What’s being said since the VW Emissions Scandal “Internal combustion engine may have died… This is sort of the end game for internal combustion engines to a degree.” – Mike Guy, The Drive Editor “Risk that diesel manufacturers globally will be tarnished” – Matthew Beasley, Henderson Global Investor
Slide 38: US & European Emission Standards
US & European Emission Standards 38
Slide 39: Roskills Intel: Forecast electric vehicle sales
Forecast electric vehicle sales by type, by battery corr 90,000 5 we? 80,000 ~ Infrastructure impro' Technology impr « 70,000 ~ Costs fall = RY, Mass marke! 60,000 | o 50,000 - ee ow Interest grows, G 40,000 + benefits i ae, Sa Increased grog 30,000 | | Early adopters = 20,000 Steady growth > 10,000
Slide 40: RE market outlook – green technology driving NdPr demand growth
RE market outlook – green technology driving NdPr demand growth Roskills Intel 40
Slide 41: Hastings in the Sweet Spot
Hastings in the Sweet Spot • Carbon emissions targets imposed by EU & US governments effective 2020 • Green technology driving NdPr demand growth United Nations’ "COP21" climate summit in Paris (Dec 2015) - likely to be a landmark event that starts to shut the door on parts of the fossil industry. “
Slide 42: Investment Case
Investment Case 1. High grade, neodymium rich beneficiated concentrate 2. Low cost, simple flotation via open pit mining 3. Granted Mining leases free of Native title claims 4. NPV10 A$650 - 750m (7 years), IRR 52% with payback of 1.5 years 5. Australia: availability of skilled services; & AAA sover
Slide 43: Thank You
THANK YOU Yangibana www. hastingstechmetals,.com 43
Hastings Technology Metals — Investor Presentation (November 2015) on 6ix