Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (April 2024)
40 slides from Hastings Technology Metals's investor presentation, Apr 18, 2024
Slide 1: Rights Issue Presentation
Not for release to US wire services or distribution in the United States Rights Issue Presentation 18 April 2024 Hastings Technology Metals Ltd | ASX:HAS 1 Photo: Kurrbili Village
Slide 2: Disclaimer
DISCLAIMER The Company confirms that it is not aware of any other new information or data DISCLAIMER that materially affects the information included in the original market This presentation has been prepared by Hastings Technology Metals Limited announcement and that all material assumptions and te
Slide 3: Equity Raising Overview
EQUITY RAISING OVERVIEW $22.15m Rights Issue to existing shareholders for advancement of the Yangibana Project development Equity Raising Overview • Partially underwritten pro-rata renounceable entitlement offer to Eligible Shareholders of 9 New Shares for every 20 Shares held to raise up to $22.15
Slide 4: Equity Raising Timetable
EQUITY RAISING TIMETABLE Entitlement Close Date of 24 April 2024 Timetable Event Date Announcement of Entitlement Offer Wednesday, 27 March 2024 Lodgment of Prospectus (ASIC & ASX) Wednesday, 27 March 2024 Ex Entitlement date Tuesday, 2 April 2024 Rights trading starts Tuesday, 2 April 2024 Record D
Slide 5: Equity Raising Outcome
EQUITY RAISING OUTCOME Utilisation of funds to strengthen balance sheet and advance final funding package through to final investment decision and main construction Purpose of the Offer1 Pro-forma Balance Sheet2 Item AUD Interim Financial Pro-forma fully Report Consolidated subscribed Pro-forma Post
Slide 6: Corporate Snapshot
CORPORATE SNAPSHOT Significant value upside from development of the Yangibana Rare Earths Project Yangibana Project Reserve inventory of 20.9mt with high NdPr:TREO ratio3 Current mine life of 17 years with significant upside Investment of $142 million in early works $0.37 $294 million Share price1 N
Slide 7: Yangibana - Unique Tier One Asset
YANGIBANA - UNIQUE TIER ONE ASSET World-class deposit with unrivalled high percentage of NdPr:TREO in the orebody in a tier one jurisdiction, supplying the critical raw Average NdPr:TREO Ratio1 materials for rare earth magnets Sichuan (China) 14% Mountain Pass (US) 16% Kangankunde (Malawi) 20% NdPr
Slide 8: Strategic Highlights
STRATEGIC HIGHLIGHTS Significant progress made to de-risk the pathway to first concentrate production in 20261 World-class rare earth deposit with high proportion of neodymium and Globally significant praseodymium (average of 37% over mine life) in the rare earth basket, world-class asset producing
Slide 9: 13x Yangibana Projects to Meet Deficit
13X YANGIBANA PROJECTS TO MEET DEFICIT Supply deficit for rare earths driven by growth in demand for permanent magnets this decade1 Global REO Magnet Demand – Anticipated Growth2 NdPr Oxide – Forecast Supply and Demand Balance2 Supply Demand Electric Vehicles / mobility Wind Power Industrial Consume
Slide 10: Short Term Market Dynamics
SHORT TERM MARKET DYNAMICS Prices are recovering and sophisticated investors are building positions within the sector • Neodymium and praseodymium oxide prices have increased by ~10% in the past month on key markets Rare earth prices • Supply deficit expected to widen past 2030 starting to rebound1
Slide 11: Project Overview
PROJECT OVERVIEW Photo: Kurrbili Village at dusk 11
Slide 12: Yangibana Project Snapshot
YANGIBANA PROJECT SNAPSHOT1 Fully permitted and high-margin project with multi- generational opportunities for the Gascoyne region 17 years 20.9mt Life of mine JORC Ore Reserves 37% High margins Average NdPr:TREO ratio over life of First quartile on global operational mine, driving higher realised r
Slide 13: Project Execution Significantly De-risked
PROJECT EXECUTION SIGNIFICANTLY DE-RISKED Yangibana Project is shovel ready and fully permitted to move into development Key Workstreams Execution and cost Technical and regulatory Commercial and funding Operational Readiness management • Fully permitted for development • $210 million EPC contract a
Slide 14: Development Ready
DEVELOPMENT READY Fully permitted for first production in Q1 2026 Key Approvals Status WA Ministerial Approval Commonwealth Ministerial Approval Native Title Agreement Mining Proposal (Early Works) Mining Proposal (2023) Works Approvals (Early Works) Works Approval (Site-wide) Water License (Early W
Slide 15: Capital Costs
CAPITAL COSTS $142 million capital investment1 to date provides strong base to ramp up construction $52 $22 Non-Processing Infrastructure $120 million invested to date1 in finalising early site works • Kurrbili Accommodation Village • Yangibana Airstrip • SipHon Well Borefield $120 $503m • Site Acce
Slide 16: Yangibana Project Progress
YANGIBANA PROJECT PROGRESS Kurrbili Village SipHon Borefield Yangibana Airstrip SAG Mill Shell 16
Slide 17: Mining Schedule
MINING SCHEDULE1 3.0 Life of mine optimised mining sequence by orebody1,2 2.5 Focus on first five year to identify cost saving and Ore Tonnes Mined (Mt) enhance economic returns 2.0 1.5 1.0 Lower Strip ratio 0.5 Mining model is strategically designed to target zones with well-defined grade and strip
Slide 18: Beneficiation Plant Construction
BENEFICIATION PLANT CONSTRUCTION EPC contract in place with leading engineering and construction firm GR Engineering Services1 $210 million contract Fixed price lump sum portion of $180 million and provisional sum portion of $30 million Key benefits Lowers project delivery risks, lower cost, greater
Slide 19: Beneficiation Process
BENEFICIATION PROCESS Conventional flotation process which has been extensively tested and de-risked Feed grade of 1% TREO Recovered grade of ~27% TREO Crushing Grinding Regrinding Flotation >100 bench scale tests Completed at four commercial labs to develop robust beneficiation flowsheet >80 variab
Slide 20: Operating Sustainably
OPERATING SUSTAINABLY Leading ESG credentials outperforming our peers and competitors in sustainability performance Health and Safety Climate Change Five years lost time injury free Commitment to minimum 40% renewables allowed for in capital forecast for Yangibana power station Public benefit Cultur
Slide 21: Project Economics and Commercial Arrangements
PROJECT ECONOMICS AND COMMERCIAL ARRANGEMENTS 21
Slide 22: Robust Project Economics
ROBUST PROJECT ECONOMICS1 Improved metrics driven by move from previous domestic profit- Key Material Assumptions / Updates sharing model to realising 100% of net revenue, as well as lower The Base Case Financial Model (“BCFM”) assumptions adopted in the Staged Development Study released on 31 May 2
Slide 23: Baotou Skyrock Offtake Agreement
BAOTOU SKYROCK OFFTAKE AGREEMENT1 Higher rare earth oxide revenue achieved through competitive offshore processing Increased payability for the Yangibana Project’s concentrate through outsourcing multi- Key Terms stage processing to mixed rare earth carbonate and rare earth oxides Baotou Skyrock Rar
Slide 24: Building a Diversified Customer Base
BUILDING A DIVERSIFIED CUSTOMER BASE 1 Negotiations ongoing with other potential customers to conclude similar offtake arrangements for remaining Yangibana Project volumes within the framework agreement with thyssenkrupp Binding Agreements – Rare Earth Concentrate (Stage 1) Non-Binding Agreements –
Slide 25: Yangibana Project's Basket Price Forecast
YANGIBANA PROJECT’S BASKET PRICE FORECAST Based on market consultants and the expected element composition for the Yangibana Project Average basket price first production to 20301 Expected gross basket price (US$/kg TREO) (real 2024$)1 100 Base Case High Case Market Consultant / source US$/kg US$/kg
Slide 26: Future Growth Optionality
FUTURE GROWTH OPTIONALITY 26
Slide 27: Resource and Reserve Development
RESOURCE AND RESERVE DEVELOPMENT Significant exploration targets providing growth optionality Exploration focus Priority areas identified to expand mine life beyond initial 17 years to build long-term value for shareholders 66km strike length Significant exploration upside with only one-third of str
Slide 28: Hastings Strategy
HASTINGS STRATEGY Building on the long-life of the Yangibana Project to unlock value through downstream processing opportunities Rare Earth Mixed Rare Earth Concentrate Carbonate Rare Earth Oxides Metals and Alloys Permanent Magnets Mining and Beneficiation Processing Separation Refining Manufacturi
Slide 29: Board and Management
BOARD AND MANAGEMENT 29
Slide 30: Board and Management
BOARD AND MANAGEMENT Highly experienced Board and management team with proven experience in project development globally Paul Brown Teck Lim Gareth Fleming Chief Executive Officer Chief Financial Officer Project Director • Mining engineer with over 20 years’ experience across the entire • Chartered
Slide 31: Board and Management
BOARD AND MANAGEMENT Highly experienced Board and management team with proven experience in project development globally Guy Robertson Neil Hackett Charles Lew Finance Director Non-Executive Director Executive Chairman Company Secretary Company Secretary • Took over HAS in December 2013 and appointe
Slide 32: Appendices
APPENDICES 32
Slide 33: Appendix A: Corporate Structure
APPENDIX A: CORPORATE STRUCTURE Separate ring-fenced funding structures with Wyloo convertible note secured over Neo shares (not Yangibana) Hastings Technology Metals Limited (ASX: HAS) 100% 100% Gascoyne Metals Pty HTM Investments (One) Yangibana Project encompasses 100% owned Ltd Pty Ltd tenements
Slide 34: Appendix B: Key Risks
APPENDIX B: KEY RISKS The following summary, which is not exhaustive, represents some of the key and principal risk factors which potential investors need to be aware of in evaluating the Company’s business and risks of investing in the Company. Potential investors should carefully consider the foll
Slide 35: Appendix B: Key Risks
APPENDIX B: KEY RISKS Risk factors specific to the Company (cont.) Industry operating risks include, but are not limited to, fire, explosions, environmental hazards, technical failures, unusual or unexpected geological conditions, adverse weather conditions, cyclones and other accidents. The occurre
Slide 36: Appendix B: Key Risks
APPENDIX B: KEY RISKS Risk factors specific to the Company (cont.) Changes in government, monetary policies, taxation and other laws in Australia or internationally may impact the Group’s operations and financial condition. The Group requires government regulatory approvals for its operations. The i
Slide 37: Appendix B: Key Risks
APPENDIX B: KEY RISKS General Risks The operating and financial performance of the Group is influenced by a number of general economic and business conditions. Generally applicable factors which may affect the operating and financial performance of the Group include: • general movements in Australia
Slide 38: Appendix C: Source Documents
APPENDIX C: SOURCE DOCUMENTS PEER COMPRISON – NDPR:TREO RATIO Stage of Reserves Mine Ownership Ticker Capex (A$m) TREO Grade Category NdPr:TREO ratio Source Development Tonnage (mt) Proven and Yangibana Hastings Technology Metals Ltd HAS:ASX Pre-production 503 20.93 0.90% 37% 6 February 2023: ASX An
Slide 39: Our Vision and Values
Our Vision and Values To be a leading Australian producer of rare earth minerals needed to meet the global transition to renewable energy and advanced technologies. >Passion > Teamwork We are loyal to the project and work We are honest and work as one team to passionately to deliver our vision. achi
Slide 40: hastingstechmetals.com
Hastings Technology Metals Limited ABN 43 122 911 399 Level 6, 197 St Georges Terrace Perth Western Australia 6000 Follow us on T: +61 8 6117 6118 E: info@hastingstechmetals.com hastingstechmetals.com 40
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