Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (August 2020)
29 slides from Hastings Technology Metals's investor presentation, Aug 4, 2020
Slide 1: Yangibana Project – Begin the Future
Yangibana Project – Begin the Future Investor Presentation August 2020 Hastings Technology Metals Limited (HAS.ASX) 1
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer All currency amounts are in A$ unless stated otherwise. Disclaimer This presentation has been prepared by Hastings Technology Metals Limited (“Company”). It does not purport to contain all the information that a prospective investor may require in connection with any po
Slide 3: Everyday Use of Permanent Magnets
Everyday Use of Permanent Magnets Hastings Technology Metals Limited (HAS.ASX) 3
Slide 4: Yangibana Project – Milestones Achieved
Yangibana Project – Milestones Achieved PROJECT MILESTONES Nov 14 May 16 Feb 19 Successful Nov 17 PFS Completed Successful 2nd pilot Apr 19 Beneficiation Results Feb 2018 Jun 20 DFS Commenced Native Title plant test Higher Oct 19 Euler Hermes In Schaeffler agreement Thyssenkrupp Offtake yield Princi
Slide 5: Investment Attraction
Investment Attraction Why Hastings? Yangibana Project Area • Electric Vehicle (EV) growth = Demand for NdPr magnets Broc ✓ Total tenement area – 650km2 ✓ 250kms NE of Carnarvon ✓ Every EV powertrain requires ~1.5 – 2.0kg of NdPr ✓ FIFO workforce ✓ CAGR of 9% for NdPr magnets 2020 - 2025 ✓ 21.3 MT Re
Slide 6: Capital Structure and Share Price
Capital Structure and Share Price Capital Structure $/Shares Share Price Performance Cash Balance (at 30 June 2020) A$9.5M 180 Rebased to 100 as of 28 July 2019 10 160 9 Shares in Issue 1,034.4M Share Price (rebased to 100) 140 8 7 Share Price (29 July 2020) A$0.135 120 6 Volume (‘m) 100 Market Capi
Slide 7: Shire Council – New Site Access Secured
Shire Council – New Site Access Secured • Meetings have been held with all 3 Shires to date, covering the new access road north • Conditional approval already received from Gascoyne and Carnarvon Shires • Ashburton Shire President indicated approval should be forthcoming. Next Steps: • Complete geot
Slide 8: Exploration – 2020 Drilling Program
Exploration – 2020 Drilling Program • Commenced 17 June 2020 with Grade Control Drilling • As of 30 June completed 3,454m of 5,000m GC Bald Hill South-East program • Further 20,000m of Resource Definition Drilling commenced July 2020 • As of 31 July 7,201m completed • Assays have been submitted to l
Slide 9: World Leading NdPr : TREO
World Leading NdPr : TREO Up to 48% NdPr : TREO High rates of upgrading 48% 50x 75% to >100% higher than peers NdPr 0.43% to > 20% in MREC 15,000 tpa MREC Small and compact plant = 8,500 tpa TREO 1 Mtpa Volume size 200m x 200m = 3,400 tpa NdPr 50 – 100% > peers Low CAPEX of A$449m – up NdPr+Dy&Tb ~9
Slide 10: Mineral Resource and Reserve Statement
Mineral Resource and Reserve Statement Mineral Resources M Tonnes TREO % Nd2O3+Pr6O11 % Measured 4.15 1.15 0.43 Indicated 10.92 1.13 0.38 Inferred 6.18 1.09 0.35 TOTAL 21.25 1.12 0.38 Ore Reserves M Tonnes TREO % Nd2O3+Pr6O11% Probable 12.20 1.13 0.40 ~ 50 x upgrade from Final Product MREC (tpa) TRE
Slide 11: Yangibana Project Summary
Yangibana Project Summary Key Facts Phase One Enabling Infrastructure Capital cost (excl Contingencies) A$449m Mining Production 1.0 Mtpa ➢ 340 camp rooms on site Mine Life 13 years ➢ Airstrip design Process Recovery 76% completion Annual (MREC) production ~15,000 tpa ➢ Continuing design of the Annu
Slide 12: Final Process Flowsheet
Final Process Flowsheet Ore Sorting ➢ Included in new CAPEX Beneficiation ➢ Tier 1 Metso Outotec equipment ➢ 2nd pilot test achieved 80% TREO recovery vs 70% at DFS Hydromet ➢ Relocated to the Pilbara Region to be relocated to the Pilbara ➢ Rotary kiln from FLSchmidth Mixed Rare Earth Carbonate (MRE
Slide 13: Yangibana Advantage – Highest NdPr :TREO ratio
Yangibana Advantage – Highest NdPr :TREO ratio One of the Highest NdPr:TREO rare earth deposits in the world Comparison of REO Distribution & Basket Value Between Hastings and Major Light RE Producers China Outside of China RE Oxide/TREO Unit Baotou Sichuan Mt Weld Mountain Pass Lanthanum % 9.99 25.
Slide 14: Rare Earth Oxide Prices
Rare Earth Oxide Prices Nd Oxide Prices, FOB China USD/mt China F.o.B. Export prices 22-7-2020 (USD/kg) & 90-day change Lanthanum oxide La2O3 $1.60 - 3.8% Cerium oxide CeO2 $1.65 - 2.4% Praseodymium oxide Pr6O11 $40.80 - 0.4% Neodymium oxide Nd2O3 $43.80 + 6.8% Dysprosium oxide Dy2O3 $260.50 - 1.9%
Slide 15: Separation cost advantage
Separation cost advantage High NdPr content allows for lower separation cost vs China Hastings’ MREC % of NdPr per Seperation Cost • almost 2 times cheaper to separate than MREC (t) TREO% NdPr:TREO REO (t) NdPr (t) tonne US$M (20% NdPr:TREO) Chinese reference China 27,750 59% 20% 12% 16,373 3,275 $8
Slide 16: Next Steps – Project Timeline
Next Steps – Project Timeline Yangibana Project Timeline ➢ Hastings remains on track to achieve key milestones for the Yangibana Project ➢ Construction targeted to commence immediately post debt finance conclusion ➢ Hastings’ Yangibana Project is well positioned to be the next ASX-listed Rare Earths
Slide 17: Electric Vehicles – Catalyst for NdPr Demand
Electric Vehicles – Catalyst for NdPr Demand Expected Growth of Electric Vehicle (EV) Sales Worldwide 25 Commercial (truck and vehicle) EV’s are inevitable – 54% drop in emissions over next decade 23.0 EV (electric vehicle) Timeline European Emissions Standards – 95% of vehicles PHEV (plug-in hybrid
Slide 18: EV penetration rate increasing in Europe – McKinsey Report
EV penetration rate increasing in Europe – McKinsey Report • Europe saw significant EV growth of 44% in 2019, highest since 2016 • Automakers are relying on EVs to achieve Europe’s 2020/21 carbon-dioxide emissions limits of 95 gm of CO2 per km for passenger cars • EV markets in Europe will increase
Slide 19: Global NdPr Demand & Supply
Global NdPr Demand & Supply The supply gap for NdPr is widening ➢ China consumption 2017 - 46KT of NdPr oxide 2022 - forecast 60KT. ➢ China net importer in 2018 - 41KT of REO ➢ China supply tightening due to stricter environmental enforcement and Made in China 2025 policy ➢ EV battery for passenger
Slide 20: NdPr Price Forecast 2020 – 2035
NdPr Price Forecast 2020 – 2035 NdPr Oxide Price Forecast 130.0 120.0 ➢ *CAGR of 8.5% for NdPr magnets from 2019 – 2025 is the key factor pushing 110.0 NdPr price up 100.0 ➢ Automotive OEMs to launch multiple 90.0 new EV models from 2021 onwards USD/kg 80.0 ➢ No major rare earth mine coming into 70.
Slide 21: Offtake Customers
Offtake Customers ➢ German T1 - Schaeffler : Master Agreement signed • 10 years supply of significant volume • Long term price and discount structure, payment terms, floor price, delivery timeline, etc ➢ German T1 (MOU) – 1KT pa. for 5 + 5 years ➢ Sky Rock Baotou – 2.5KT p.a. for 5 years (contract s
Slide 22: Project Finance Lenders
Project Finance Lenders ➢ Concessionary financing by Government agencies from Germany, Finland and Australia for Senior Debt of 7 – 10 years tenure ➢ Loan to be underpinned by long term offtake contracts with Germans (Schaeffler), Chinese and customers from Japan and US Concessionary Senior Debt ➢ ~
Slide 23: Capital Cost Estimate - Updated
Capital Cost Estimate - Updated Global Tier 1 suppliers of mining equipment and services Previous Update Changes Key Contracts Awarded Capital Expenditure (A$M) (A$M) (A$M) Mine 13 10 -3 ➢ Design and Supply of Rotary Kiln Off Gas Scrubbing Plant awarded to Total Air Process plant 167 181 14 Pollutio
Slide 24: Project Funding - Overview
Project Funding - Overview Indicative Debt/Equity Capital Structure A$M A$M % Project Capex – Mine & Process Plant 449 Contingency @ 15% (EH requirement) ** 67 Total Project Capex*** 516 80% Sunk cost up to DFS 33 5% Working capital (i.e. Short Term Facilities) 27 4% Lenders fees, DSRA, IDC, EH cove
Slide 25: Board of Directors
Board of Directors Charles Lew Jean Claude Steinmetz Mal Randall Neil Hackett Guy Robertson Executive Chairman Non Executive Director Non Executive Director Non Executive Director Finance Director • Corporate Finance Director • Previously Chief Operating • Bachelor of Applied • Corporate Finance and
Slide 26: Experienced Senior Management Team
Experienced Senior Management Team Andrew Reid Pit Wah Chung Nick Holthouse Valerie Quay Robin Zhang Chief Operating Officer Chief Financial Officer General Manager – Legal Counsel Process Engineering Engineering & Operation Manager Readiness • 25 years of expertise in • 20 years experience in • 30+
Slide 27: Independent Consultants and Advisors
Independent Consultants and Advisors Engineering, Procurement, Construction and Management (EPCM) Commodity Market Analysis Project Finance Legal Counsel to Borrower Project Finance Debt Advisory Independent Technical Experts to Lenders Financial Adviser to Euler Hermes Environmental and Social Gap
Slide 28: Competent Person
Competent Person Competent Persons and Qualifying Persons Statement The information in this announcement that relates to Exploration Results in relation to the Yangibana Project is based on information compiled by Mr. Benjamin Nicolson BSc (Hons), a Competent Person, who is a Member of the Australia
Slide 29: Thank You / Questions?
Thank You / Questions? Hastings Technology Metals Limited (HAS.ASX) 29
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