Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Hastings Rare Metals — Investor Presentation (September 2012)
28 slides from Hastings Technology Metals's investor presentation, Sep 6, 2012
Slide 1: Supplying Heavy Rare Earths For New Technologies
For personal use only Supplying Heavy Rare Earths For New Technologies Investor Presentation | September 2012 Hastings Rare Metals
Slide 2: Important information
Important information All currency amounts are in AUD$ unless stated otherwise. For personal use only 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 w
Slide 3: Agenda
Agenda For personal use only Our Vision To become an essential supplier 1. Uses of rare earths of heavy rare earths for high 2. Heavy rare earths tech industries 3. Projects • Hastings project • Yangibana project 4. Why Hastings? Hastings Rare Metals 3
Slide 4: Uses of rare earths
Uses of rare earths For personal use only “The list of things that contain Rare Earths is endless”* * National Geographic Magazine - June 2012 Hastings Rare Metals 4
Slide 5: 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 Hastings Rare Metals 5
Slide 6: Heavy rare earths are more valuable
Heavy rare earths are more valuable For personal use only $/kg Hastings heavy rare earths 1,200 › There are 17 rare earths $950/kg 1,000 › Sold in US$/kg free-on-board 800 (FOB) China 600 › Heavy rare earths are typically 400 Light rare earths substantially more valuable 200 $90/kg $19/kg $20/kg 0 C
Slide 7: Rare earth distribution by project
For personal use only 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% Hastings Rare Metals Wigu Hill Mountain Pass Sarfartoq Nolans Bore Cummins Range Bear Lodge Eldor Hoidas Lake Mount Weld (ave) Steenkampskraal Rare earth distribution by project Zandkopfsdrift Eco Ridge Kvanefjeld Nechalacho Dubbo Kip
Slide 8: In serious undersupply?
In serious undersupply? For personal use only Dysprosium oxide supply/demand Critical Supply Matrix (5-15yr) Hastings Tonnes p.a. 23% supply REE mix shortage 4,000 3,447 3,500 3,000 2,799 2,500 2,240 2,000 1,902 Supply Demand 1,500 1,377 1,353 1,000 500 0 2010 2015 2020 Based on IMCOA and Oko-Instit
Slide 9: Forget Chinese supply
Forget Chinese supply* For personal use only China supplies +95% of rare earths Chinese export quota › Imposed export quotas Tonnes (‘000) › Implemented price levies › Prohibited new operations / expansions › Closed mines and processing plants › Set minimum operating standards › Started consolidatin
Slide 10: Sustained price increases
Sustained price increases $/kg Dysprosium oxide For personal use only 2,500 2,000 1,500 1,000 Heavy rare earth prices are 500 9 to 13 times 2009 prices 0 $/kg BCC Research 2016 forecast Yttrium oxide 180.0 160.0 • Dysprosium $2,170/kg 140.0 120.0 100.0 • Yttrium $275/kg 80.0 60.0 40.0 20.0 0.0 *Meta
Slide 11: 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, including: 140tpa Dysprosium oxide Heavy 830tpa Yttrium oxide rare 590tpa Mixed rare earth oxide earths 2,630tpa
Slide 12: Existing Resources
Existing Resources For personal use only › 36.2 million tonnes Indicated and Inferred Resources at 0.21% TREO (0.18% HREO), plus 0.35% Nb₂O₅ and 0.89% ZᵣO₂ › Open at depth and along strike to the south. Southern Extension locally returns high scintillometer readings over significant widths (to 40m)
Slide 13: 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 14: Highest value per kg vs HREO peers
Highest value per kg vs HREO peers For personal use only NORRA KARR STRANGE LAKE NECHALACHO HASTINGS KUTESSAY II DUBBO (Alkane) (Tasman) (Quest) (Avalon) $/kg China In Situ In Situ In Situ In Situ In Situ In Situ Oxides FOB* % Dist $/kg % Dist $/kg % Dist $/kg % Dist $/kg % Dist $/kg % Dist $/kg Lan
Slide 15: Metallurgical success
Metallurgical success For personal use only Bulk solution handling at ANSTO Multi-stage solvent extraction at ANSTO › ANSTO (Australian Government) scientists completed extensive test work and experiments › Time and cost advantage from historical work › Metallurgical recoveries of 75% for Dysprosium
Slide 16: Process design and flow sheet
Process design and flow sheet For personal use only Hastings Rare Metals 16
Slide 17: Hastings products
Hastings products For personal use only › Electric + hybrid vehicles Dysprosium Permanent › Wind turbine drives oxide Magnets › Disk drives › Loud speakers, sensor Yttrium › Monitors, TVs, LEDs Phosphors › iPad, Phones oxide › Lasers, filters, superconductors Niobium › Structural steel Alloy agent o
Slide 18: Attractive economics
Attractive economics* For personal use only › 25 years mine life from existing Resources › Producing oxides of: Tonnes % world p.a. supply Dysprosium 140 10% Yttrium 830 6% Mixed heavy rare earths 590 n/a Niobium 2,630 ±3% Zirconium 6,170 <1% Port of Wyndham $720m Capital costs (excluding contingenc
Slide 19: Pathway to production
Pathway to production For personal use only Drill Program Exploration & Reserve Definition Optimise Product Suite Pilot Plant 2011 2012 2013 2014 2015 2016 Scoping Study Pathway to Production Potential Pre-Feasibility Study Definitive Feasibility Study EPCM Explorer Developer Miner Hastings Rare Met
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 ROCK CHIP SAMPLES INCLUDED No of Yangib
Slide 22: Strong board & management
Strong board & management For personal use only David Nolan Alastair Metcalf Tony Ho Chairman CEO Independent Director • Head of Corporate at • +25 years resources • Former CFO of Brazin Mills Oakley Lawyers and finance • Director of Dolomatrix, • Extensive legal and experience Greenland Minerals, c
Slide 23: Heavy rare earths
Heavy rare earths For personal use only Proportion HREO: TREO (%) Supply shortage 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 ind
Slide 24: Market Capitalisation
Market Capitalisation For personal use only 100 200 300 400 500 600 0 $millions Namibian As at end August 2012 Hastings Rare Metals Northern Mins Commerce Exploration Peak Ucore Frontier Leverage to upside Greenland Mins Resources Quest Rare Elements Avalon Hastings Arafura Tasman Alkane Advanced Te
Slide 25: Significant milestones
Significant milestones For personal use only Next 6 -18 Months JORC compliant Resource Nov-12 ANSTO work validates and verifies flow sheet and test work Jul-12 Jacobs Engineering Scoping Study defines operating parameters Aug-12 Economic assessment confirms strong business case and NPV Sep-12 •
Slide 26: 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 Hasting › Largest heavy rare earths project in Australia, fourth largest globally › Advanced project: » 25 years mine li
Slide 27: Additional information
Additional information For personal use only ASX Code – HAS Shares on issue 129 million Market capitalisation (at 12c) $15m Listed options 61 million Cash (30/6/2012) $3.2m Unlisted options 47 million Board/Management 7% Japanese rare earths fund 6% Singapore Major shareholders Investment Funds 8% T
Slide 28: For personal use only
For personal use only www.hastingsraremetals.com Phone: +61 2 9078 7674 Email: info@hastingsraremetals.com Hastings Rare Metals
Hastings Rare Metals — Investor Presentation (September 2012) on 6ix