Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (May 2018)
32 slides from Hastings Technology Metals's investor presentation, May 2018
Slide 1: Future Producer of Neodymium & Praseodymium to the Permanent Magnet Industry
Future Producer of Neodymium & Praseodymium to the Permanent Magnet Industry HASTINGS Investor Presentation Technology Metals Limited May 2018
Slide 2: 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 potential investment in the Comp
Slide 3: Hastings Equity Statistics
Hastings Equity Statistics Steady growth in market cap since Jan 2014 • Market Cap ~ A$ 220m • ~ 1200 Shareholders +55% in 2017 • Top 10 shareholders owns ~ 70% • A$59m raised since 2014 • Cash: A$25m post rights issue • No Debt • Included in the ASX All Ordinaries Index 3
Slide 4: Definitive Feasibility Study (DFS) – Yangibana
Definitive Feasibility Study (DFS) – Yangibana Independent Study by Wave International and Snowden • JORC Resource of 21m tonnes supports an initial 8 years mine life on 100% held ground • Maiden JORC Probable Ore Reserves of 5.15 million tonnes on 100% owned ground • Highest known Neodymium & Prase
Slide 5: Four off-take MOUs signed
Four off-take MOUs signed 70% of Yangibana production under offtake MOUs to German and Chinese customers ➢ Thyssenkrupp Raw Materials Gmbh – 5,000 tonnes per annum of Yangibana MREC for 10 years; for the German and European automotive and other industries (28 Feb 2018) ➢ Baotou Sky Rock Rare Earth N
Slide 6: Some End Uses for Magnets’ Rare Earth
Some End Uses for Magnets’ Rare Earth
Slide 7: Yangibana – Western Australia
Yangibana – Western Australia AAA Sovereign Rating, Established Mining Region Outcrops and level terrain, easy to mine • Total Yangibana area ~ 650 km2 • 21 years Mining Leases Granted since March 2016 ~ 50 km2 • Native Title Agreement signed November 2017 covering all tenements • Various Miscellane
Slide 8: JORC Resources
JORC Resources High Neodymium and Praseodymium content Total Yangibana JORC Resources (rounded) Category Tonnes Nd2O3+Pr6O11 TREO Nd2O3 Pr6O11 • Total Measured, Indicated and Inferred % % ppm ppm Resources now at 21m tonnes* Measured 3,900,000 0.42 1.19 3,372 851 Indicated 8,600,000 0.42 1.25 3,368
Slide 9: Favourable Terrain
Favourable Terrain Mineralised out crops, shallow open pit mining Selective Mining – Bald Hill Selective Mining – Fraser’s
Slide 10: Native Title Agreement signed
Native Title Agreement signed Agreement reached with Thiin-Mah Warriyangka, Tharrkari and Jiwarli • Signed 9th November 2017 • < 1% royalty based on sales for the LoM • Applicable to all rare earth and niobium mined • Provision of jobs and training for the community 10
Slide 11: Yangibana Advantage – Highest Nd-Pr ratio
Yangibana Advantage – Highest Nd-Pr ratio Comparison of REO Distribution & Basket Value • Nd-Pr /TREO Between Hastings and Major Light RE Producers composition is validated China Outside of China by customers in the RE Oxide/TREO Unit Hastings Baotou Sichuan Mt Weld Mountain Pass MREC Lanthanum % 9.
Slide 12: Spot Prices of Rare Earth Oxides (Mar 2018)
Spot Prices of Rare Earth Oxides (Mar 2018) China F.o.B. Export prices 09-Mar-2018 (USD/kg) & YTD change Lanthanum oxide La2O3 $ 2.37 1% Cerium oxide CeO2 $ 2.30 0% Praseodymium oxide Pr6O11 $ 70.50 +11 % Neodymium oxide Nd2O3 $ 58 +22 % Dysprosium oxide Dy2O3 $ 190.50 +9 % Terbium oxide Tb4O7 $ 517
Slide 13: The Yangibana Process and Product
The Yangibana Process and Product From Mining to Mixed Rare Earth Carbonate (MREC) Successful Beneficiation and Hydrometallurgy pilot plan test-work proves simple and effective production process flow sheet. 1m t.p.a. mined 30 - 40k t.p.a. Beneficiated ~15,000 t.p.a. MREC Concentrate = ~8,500 t.p.a.
Slide 14: Yangibana Flowsheet
Yangibana Flowsheet Pilot test work at ALS and ANSTO confirms production process Flotation Pilot Plant Operation at ALS, Perth • Beneficiation – more than 20x upgrade with 85% Nd-Pr recovery at optimum conditions • Hydrometallurgy – 41% Nd-Pr content in the Final flotation concentrate from Yangibana
Slide 15: Downstream Toll Treatment
Downstream Toll Treatment Estimated Tolling cost USD 2.50/kg (based on 15,000 tons MREC) Mixed Rare Earths Carbonate（MREC） Global Separation Capacity 15% Dewatering of Precipitated Solids MREC Dissolving 85% Separation with Solvent Extraction Calcination of Precipitated Solids China Outside of China
Slide 16: Global Rare Earth Supply 2016
Global Rare Earth Supply 2016 Supply diversification increasingly strategic % Total Global Rare Earth Supply 3,000 MT 11% 105,000 MT 3% 1,700 MT 1% 1% 1,100 MT 1% 14,000 MT HASTINGS 83% Second source Supply outside of China 2016 Global Supply 126,000 MT China Australia Russia India Excluding Illegal
Slide 17: Global Nd-Pr Oxide Supply Demand 2017 - 2025
Global Nd-Pr Oxide Supply Demand 2017 - 2025 Possible shortage - crossover point in 2020 Imports to rise due to higher domestic demand from “Made in China 2025” policy Exports fall as Japan sources more from Lynas and ROW Source: Adamas Intelligence 14th International Rare Earth Conference, Nov 2017
Slide 18: Global Demand Growth for Permanent Magnets
Global Demand Growth for Permanent Magnets NdFeB cheapest by strength per unit/sqcm Materials Average Price Average Max. $/MGOe ($/lb.) Energy Product (MGOe) Hard Ferrite 2.0 3.5 N/A Global Market for Permanent Magnets - by Industry 2022 (USD m) NdFeB 75.0 30.0 2.3 Samarium-Cobalt 162.0 22.0 7.4 AlN
Slide 19: Blockchain-enabled Supply Chain Platform
Blockchain-enabled Supply Chain Platform A De-Centralised supply chain management tracking system 1. To assure Ethical Mining • Source of Origin Business Footprint • Compliance to International Standards and Regulations • Socially Responsible from Mine to Production (Market) 2. To deliver Environmen
Slide 20: How does it work? – Track & Trace Hastings MREC
How does it work? – TRACK & TRACE HASTINGS MREC Source Of Origin Blockchain Platform Metal Trader Germany Tracks each step of goods and Japan services between businesses China and across borders Yangibana (MREC) Decentralised Blockchain Manufacturer *AAA Digital Ledger Step 1 Step 2 RFID Smart Contr
Slide 21: Early Works Programme
Early Works Programme Commenced Q2 2018 Bulk earthworks 240 room Civil engineering Establised an Order Critical Path contracts scope Accomodation design being Owners Team Long lead time items developed and work village - finalised for: for Early ie. Rotary Kiln, to start in April construction •Acces
Slide 22: Overall Mine Layout
Overall Mine Layout Optimising logistics between deposits • Mining by conventional drill and blast • Pit optimisations were completed to determine the economic mining limits for each deposit • Waste dumps located to minimise haulage distances • Mining schedule based on value creation and waste reduc
Slide 23: Capital Cost for Infrastructure A$50-60m
Capital Cost for Infrastructure A$50-60m Expected Completion 4Q 2018 • Roads /Bulk Earthworks - Access Roads & and River Crossings • Accommodation Village and support infrastructure • Airstrip on site to be constructed 2Q 2019 • Power Plant – Diesel, LNG and Solar being evaluated • Alternative Truck
Slide 24: Timetable to Production
Timetable to Production Milestones to production by Q1 2020 PROJECT IMPLEMENTATION SCHEDULE FOR YANGIBANA RARE EARTHS PROJECT 2017 2018 2019 2020 Activities N D J FMAM J J A S ON D J FMAM J J A S ON D J F M A Definitive Feasibility Study (DFS) Permitting & Approvals Design for Access Road & Bulk Ear
Slide 25: DFS Capital Cost A$335m
DFS Capital Cost A$335m An improvement of 20% from PFS A$ Cost Centre A$ Million Cost Centre Million Process Plant $130.2 Non Process Infrastructure $105.1 Mining Crushing and Screening 3.6 Mine Infrastructure 3.9 Contingency 1% 13% Grinding 14.1 TSF 1,2 and 3 19.5 Flotation 27.0 Evaporation Pond 0.
Slide 26: DFS Operating Cost A$17.06/kg (US$13.00/kg) of TREO
DFS¹ Operating Cost A$17.06/kg (US$13.00/kg) of TREO An improvement of 30% from PFS • March 2018 MREC Basket Price USD 29/kg • Opex Costs estimates between USD13/kg and conservatively USD15/kg depending on life of mine • Estimate for separation costs ~ USD3/kg, rounded up • Financing costs² up to ~
Slide 27: Funding Programme
Funding Programme Commenced Q1 2018 • Project Finance funding – 65% Debt : 35% Equity Senior Debt and Subordinated Debt ~Senior $220mand Subordinated Debt A$200 + A$50m • Senior & Subordinated Debt financing - potential Working Capital ~ A$30m sources: ✓ Export Credit Agencies ie. Euler Hermes, JBIC
Slide 28: Projected Funding Schedule and Drawdown
Projected Funding Schedule and Drawdown Cash as @ 31 March 2018 - A$25m HAS Projected Quarterly Drawdown and Proposed Cash Raising (A$’000) Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 $- $(10,000) $(20,000) $50M $50M Shares Mezz Debt $(30,000) placemen / Shares $(40,000) t Placeme
Slide 29: Board of Directors
Board of Directors Experienced Directors and Management Team Guy Robertson Charles Lew Jean Claude Steinmetz Finance Director & Executive Chairman Non-Exec. Director / Commercial Company Secretary Director • Corporate Finance Director HG Asia • Previously Chief Operating • 30+ years CFO experience S
Slide 30: Management Team
Management Team In depth experience and specialised skills Andy Border Stefan Wolmarans Hannes Zandberg Robin Zhang General Manager Exploration Chief Operating Officer Project Director Process Engineering Manager • 40+ years experience as a • 20 years experience in planning & • 30 years experience i
Slide 31: Summary
Summary ▪ Experienced management ▪ MREC with 41% NdPr content ▪ Market Cap A$240m team with rare earth production experience ▪ Basket price (March 2018): ▪ NPV A$466m USD29.20/kg ▪ Definitive Feasibility Study ▪ IRR 78% (DFS) completed Nov 2017 ▪ Mine construction 2Q 2018 Production Q2 2020 ▪ EBITDA
Slide 32: Thank you. Q & A
Thank you. Q&A
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