Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (June 2017)
41 slides from Hastings Technology Metals's investor presentation, June 2017
Slide 1: Future Producer of Neodymium & Praseodymium to the Permanent Magnet Industry
Future Producer of Neodymium & Praseodymium HASTINGS to the Permanent Magnet Industry Technology Metals Limited ASX Stock Code: HAS Investor Presentation June 2017 1
Slide 2: Disclaimer
HASTINGS Technology Metals Ltd 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 p
Slide 3: Key Facts
Key Facts Hastings’ Yangibana Project in Western Australia - to produce Mixed Rare Earth Carbonate (MREC) rich in Neodymium (Nd) and Praseodymium (Pr) Nd and Pr are critical elements in manufacture or Permanent Magnets - used in advanced and green technologies such as wind turbines, electric veh
Slide 4: Key Facts
Key Facts • Lead Agency Project Status granted by W.A. state government to assist in permit process & final approvals Experienced Management Team with rare earths mining and production experience and capability Commercial off-take discussions underway with European and Chinese buyers Mine Cons
Slide 5: Rare Earths
Rare Earths Key rare earths and applications Permanent Magnets, Wind Turbines, E-Vs, Robotics, Speakers, Hard-Disks, Lasers HE-Vs, Electron Microscopes, Batteries, IR-absorbing Optical Permanent Magnets, Aircraft Glasses, Lenses, Chemical Engines, Ceramic Dyes, Welder’s catalyst Goggles, Magnetoc
Slide 6: Nd-Pr based Permanent Magnets
Nd-Pr based Permanent Magnets Stronger, lighter & smaller NdFeB (Neodymium, Iron, Boron Magnet) - strongest permanent magnet commercially available: Nd-Pr approx. 1/3 by material weight ~10x more powerful, and 3x lighter than traditional ferrite magnet Superior performance, compact, lightweight an
Slide 7: Rare Earth Utilization Facts
Rare Earth Utilization Facts Demand in consumption numbers • Each 2MW wind turbine contains 340- 420kg REE in NdFeB permanent magnet • GWEC* est. 330 GW to be installed from 2017 to 2021 ~ 66,000 tonnes** • Each HEV contains about 2.7kg REE • Global HEV and EVs have increased 13 Neodymium & fold fro
Slide 8: New Advanced Technologies
New Advanced Technologies Additional demand for rare earths from new innovations and technologies PVC stabilizers Magnetocaloric Refrigeration Industrial Robots Protect PVC from thermal 30% to 50% more energy efficient, Chinese robotic usage to degradation and exposure zero CFC usage. (Mostly Nd-Pr)
Slide 9: Global Rare Earth Supply 2016
% Total Global Rare Earth Supply Global Rare Earth Supply 2016 Supply diversification increasingly strategic 11% 3% 1% 3,000 MT 1% 1% 105,000 MT 1,700 MT 1,100 MT 14,000 MT 83% China Australia Russia India Brazil Thailand Vietnam Malaysia 2016 Global Supply 126,000 MT Excluding Illegal Supply HASTIN
Slide 10: Growth in Demand for Nd-Pr
Growth in Demand for Nd-Pr Providing critical elements for Permanent Magnets Expect Strong Growth in Nd-Pr Demand • 2017 Demand Nd-Pr ~ 39,000 tonnes – Argus Metals estimates 2010 – 2020 CAGR – 9% • Permanent Magnets - increased demand from wind turbines, electric vehicles (EVs), digital devices and
Slide 11: View from Beijing
View from Beijing China signs up to Paris Agreement Policy initiatives in support of Paris targets • Non-fossil energy sources to increase to 20 percent of total energy requirement by 2030 [3] • Requires deployment of 800 - 1,000 gigawatts in non- fossil capacity, close to current US total electrici
Slide 12: View of Procurement Managers
View of Procurement Managers 15 Apr 2017: Introduction of ISO 20400 New Sustainable Procurement Standard • New ISO 20400 compliance standard for procurement • Compliance necessary across three key areas: • Environmental Impact • Social Sustainability • Economic Sustainability • Pressure on manufactu
Slide 13: Case for continuing Nd-Pr Price Increase
Case for continuing Nd-Pr Price Increase Praseodymium Neodymium: Praseodymium neodymium market prices went up significantly as some domestic enterprises suspended production. Recently, Potentially supply Prices praseodymium Nd – Proxide of neodymium increase was offeredin at RMB shortage of Nd–Pr 20
Slide 14: Yangibana
Yangibana Mining and Production of Neodymium & Praseodymium 14
Slide 15: Western Australia Base
Western Australia Base Advantages of geographic location • Australia Sovereign Risk Rating AAA/Aaa (S&P/Moody’s) – lower cost of capital ❏ Broome Brockman • High rank for corporate governance and Rule of Law. (WJP Rule of Law Index 2016). ❏ Port Hedland • Western Australia - long history of succes
Slide 16: Site Location
Site Location Central Western Australia Yangibana is situated 280 km north-east from the port town of Edmund Carnarvon Airstrips available at: Mangaroon • Carnarvon • Gascoyne Junction • Gifford Creek Gifford Creek • Edmund Road from Carnarvon follows Gascoyne River to Gascoyne Junction, then along
Slide 17: Favourable Terrain
Favourable Terrain Above ground ore outcrops – level terrain, easy to mine Open Pit Mining on Flat Terrain Key Rare Earths: Neodymium (Nd) Praseodymium (Pr) Dysprosium (Dy) Terbium (Tb) Nd & Pr account for ~ 82% of in-ground economic value. HASTINGS 17 Technology Metals Limited
Slide 18: Granted Leases
Granted Leases Mining, General Purpose & Exploration Leases • Total Yangibana area ~ 650 km2 • 21 years Mining Leases Granted ~ 50 km2 • No Native Title Claims on mineralised ground • Contain ~ 90% of JORC Resource • Various Miscellaneous and General Purpose Leases granted • Supporting infrastructur
Slide 19: Drill Programme 2017
Drill Programme 2017 Increasing JORC Resources & Mine Life • Airborne survey in 2016 identified 22 priority mineralised targets for future exploration after 2017 (18 Oct 2016) • Fraser’s Southwest Deposit drill results – high grade to 2.00% TREO (25 Oct 2016) • Auer North Deposit – high grade of 2.0
Slide 20: JORC Resource
JORC Resource Rich in Neodymium and Praseodymium Total Yangibana JORC Resources • Jan 2017 updated JORC estimate sets out Tonnes Nd2O3+Pr2O3 TREO Nd2O3 Pr2O3 Category Measured Resource in 100% ground % % ppm Ppm Measured 2,155,000 0.42 1.01 3,410 770 Indicated 5,446,000 0.41 1.30 3,260 870 • In-grou
Slide 21: Yangibana Advantage
Yangibana Advantage Comparison of TREO in Beneficiated Concentrates High Nd & Pr content means high Neodymium Praseodymium Lanthanum Cerium Samarium Europium Gadolinium Terbium economic basket value 100% 90% • Pilot confirmed ore upgrade from ~ 1.2% in-ground to 23% TREO in Beneficiated 80% Concentr
Slide 22: Economic Value from Nd - Pr
Economic Value from Nd - Pr Permanent Magnets to drive Nd – Pr prices higher Rare Earth Elements In Yangibana Basket Value Price Escalation in Basket Price assumption 1.6 1.52 1.5 1.52 1.4 1.42 1.3 1.30 1.2 1.19 1.1 1.07 1.06 1 1.03 2017 2019 2020 2021 2022 2023 2024 2025 2026 Nd-Pr = 82% of In Grou
Slide 23: The Yangibana Process and Product
The Yangibana Process and Product The Steps from Ore to Mixed Rare Earth Carbonate (MREC) Successful Beneficiation and Hydrometallurgy pilot plant test-work proves simple and effective production process flow sheet 1m t.p.a. ore mined ~30-40k t.p.a. Beneficiated ~15,000 t.p.a. MREC ~8.500 t.p.a. Con
Slide 24: Yangibana Beneficiation Flowsheet
Yangibana Beneficiation Flowsheet Successful completion of pilot plant test work Continuous Pilot Plant Test - Successfully validated simple and effective flowsheet Confirmed 70% TREO recovery rates and a concentrate upgrade to 23% TREO ~ 18 times from ore. Achieved lower consumption of reagents F
Slide 25: Yangibana Hydrometallurgy Flowsheet
Yangibana Hydrometallurgy Flowsheet Successful completion of pilot plant test work Final flotation concentrate from beneficiation pilot Hydrometallurgy Pilot plant undertaken for three phases: • Acid bake • Water leaching & impurity removal • Carbonate product precipitation All three phases exceeded
Slide 26: Lead Agency Project Status
Lead Agency Project Status Granted by Department of Mines and Petroleum (DMP) Benefits Outcomes • Coordination of the approvals • Government support for the Project process across multiple prior to receipt of Approvals government departments = • Approvals received within assigned timelines: • Hastin
Slide 27: Milestones to Achieve Production
Milestones to Achieve Production • DFS Completion • EPC Management • Financing 27
Slide 28: Preparatory work prior to Plant Construction
Preparatory work prior to Plant Construction Pre-project implementation work 1. Project Implementation Schedule and Strategy • How and When – cost effectiveness • Contracting strategy (parcelling) 2. Forming the Project Management Team (PMT) • Skilled and experienced personnel 3. Secondary Works App
Slide 29: Timetable to Production
Timetable to Production Getting from Definitive Feasibility to production by 2H 2019 • Project Director (Mr KH Leong) – responsible for engineering design and equipment specification work. • Leong has extensive experience in engineering design, construction and project management. Formerly with Lyna
Slide 30: Capital Expense
Capital Expense Ensuring an efficient and effective utilisation of capital and reducing project risk CAPEX targets • Substantial progress in reducing CAPEX since PFS AUD m (from $420m down to $300m) Engineering 38.4 • Optimised and re-engineered process plant Procurement – Process & Mining 62.8 util
Slide 31: Annual Operating Expense
Annual Operating Expense Estimated Annual Operational Costs Assumes 2020 production year and 8,500 tonnes TREO in MREC • Substantial OPEX cost savings due to: • Optimised consumption of reagents AUD m identified in pilot plant test-work Mining Costs – based on 1 m t.p.a. mined 38.8 • Recycling and r
Slide 32: Profitability Forecasts
Profitability Forecasts + AUD100m NPV for every +10% Nd & Pr price increase 2019 2020 2021 2022 2023 2024 Mining Rate tonnes 375,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 TREO tonnes 4,268 12,951 13,601 8,610 7,720 8,329 Revenue A$ m 128.8 364.0 301.0 339.9 357.6 377.5 Operating Costs A$
Slide 33: The Hastings Team
The Hastings Team Directors, Management & Technical Team A diverse group of experienced professionals have been brought together to achieve the goal of production at Yangibana in 2019. The multi-disciplinary team includes highly specialised experts in rare earth minerals processing and metallurgy, p
Slide 34: Board of Directors
Board of Directors Experienced Directors and Management Team Charles Lew Tony Ho Jean Claude Steinmetz Executive Chairman Non Executive Director & Non Executive Director Private investor and entrepreneur Chair of Audit Committee Previously Chief Operating Officer Corporate Finance Director – HG Dire
Slide 35: Management Team
Management Team Experienced Directors and Management Team Charles Tan Andy Border Guy Robertson Kok Hoong Leong Aris Stamoulis Chief Operating Officer General Manager Chief Financial Officer & Project Director Director • 20+ years in Commercial, Exploration Company Secretary • 38 years’ engineering
Slide 36: Specialised Technical Team
Specialised Technical Team Dr Kwan Wong Narelle Marriott KYSPYmet Mineral Processing Consultants Principal Engineer – Beneficiation Flotation Specialist • 14+ years experience in the minerals • 50+ years practicing metallurgist processing and mining industry • Possesses extensive flotation treatment
Slide 37: Current Company Status
Current Company Status To-date capital raises and shareholder statistics 37
Slide 38: Hastings Equity Statistics
Hastings Equity Statistics Steady growth in market cap since Jan 2014 HAS:ASX Price/Volume Chart • YTD Performance +22%; Market Cap ~ AUD50m Price Volume 0.11 10,000,000 • 2017 increase in Total Shareholders by 29% 9,000,000 0.1 8,000,000 • Top 100 shareholders control 94%; top 10 0.09 7,000,000 con
Slide 39: Summary – De-risking Production Process
Summary – De-risking Production Process Contributing to lower operational risk Yangibana Ore Body – Exceptionally High Nd – Pr content • JORC resource currently at 13.4m tonnes; ongoing drilling in 2017 extends Mine life to +10 years • High % in-ground Nd – Pr ; average of 33% weighted across JORC r
Slide 40: Thank you. Q & A
Thank you. Q&A 40
Slide 41: Additional Sources
Additional Sources [1] International Energy Agency: Electric vehicles have another record year, reaching 2 million cars in 2016 – 7 Jun 2017. [2] Australian Financial Review: China charging ahead in electric car battery market. – 8 Mar 2017. [3] The Road from Paris: China’s progress toward its clima
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