Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (October 2016)
30 slides from Hastings Technology Metals's investor presentation, October 2016
Slide 1: A Future Producer of Magnets' Rare Earth: Investment Highlights
HASTINGS TECHNOLOGY METALS LTD (ASX Listed Stock Code: HAS) A Future Producer of Magnets’ Rare Earth Investment Highlights October 2016 Yangibana
Slide 2: Disclaimer
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
Slide 3: Experienced Board & Management
Experienced Board & Management Tony Ho Charles Lew Non Executive Director & Chair of Audit Committee Executive Chairman • Chairman of Bioxyne Ltd and non-executive director • Private investor and entrepreneur Greenland Minerals Ltd • Independent Director of RHB Banking • 35+ years in senior corporat
Slide 4: 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 processing • 50+ years practicing metallurgist and mining industry • Possesses extensive flotation treatment
Slide 5: Yangibana: Located in Central Western Australia
Yangibana : Located in Central Western Australia Yangibana 5
Slide 6: Yangibana: Mining Leases Granted
Yangibana : Mining Leases Granted Mining Leases Granted (shaded in pink) with no Native Title claims covering all of current JORC Resources for a period of 21 years Miscellaneous and General Purpose Leases granted Application to authorities for permit to commence mine construction and production pla
Slide 7: Yangibana: Open Pit Mining on Flat Terrain
Yangibana : Open Pit Mining on Flat Terrain 7
Slide 8: Lanthanides – Rare Earth Elements
Lanthanides – Rare Earth Elements The term Rare Earths covers a group of 15 elements with similar characteristics (the Lanthanides)and often with the addition of yttrium (Y) and scandium (Sc) 8
Slide 9: Yangibana: Project Highlights
Yangibana : Project Highlights • 4 key rare earths: (1) Neodymium (Nd), (2) Praseodymium (Pr) (3) Dysprosium (Dy) and (4) Terbium (Tb) • Nd & Pr account for approx. 83% of in-ground value • Focus on production of magnets’ rare earth; ie. Nd, Pr and Dy due to strong future demand for Electric Vehicle
Slide 10: Some End Uses for Magnets' Rare Earth
Some End Uses for Magnets’ Rare Earth 10
Slide 11: Rare Earth Used in a Mobile Phone
Rare Earth Used in a Mobile Phone 11 Source: Apple, Venturebeat.com
Slide 12: Facts in Perspective
Facts in Perspective • In 2014 : World wide sales of mobile phones ~7.3B sales • Approx. 0.1g of Nd/Pr per phone => 730 tonnes per annum • Renewable Energy - wind turbine adds to demand for NdFeB magnets (permanent magnets) • Each 2MW wind turbine contains 340-420kg REE • Each HEV contains about 2.7
Slide 13: NdFeB Permanent Magnets in comparison
NdFeB Permanent Magnets in comparison Synchronous Permanent Magnet Motor NdFeB (Neodymium, Iron, Boron Magnet) - strongest permanent magnet commercially available ~10 times more powerful, and 3 times lighter than traditional ferrite magnet Superior performance, miniaturisation, compact, lightw
Slide 14: Rare Earth Metals in an Electric Vehicle
Rare Earth Metals in an Electric Vehicle 14
Slide 15: RE market outlook – green technology driving Nd/Pr demand growth
RE market outlook – green technology driving Nd/Pr demand growth Roskills Intel 15
Slide 16: Supply/Demand and Price Forecast – Nd & Pr
Supply/Demand and Price Forecast – Nd & Pr 16
Slide 17: Yangibana: Exceptional High Grade Nd and Pr
Yangibana : Exceptional High Grade Nd and Pr Comparison of REO Distribution Between Hastings and Major Light RE Producers China Outside of China RE Oxide/TREO Unit Hastings Yangibana’s Rare Earth Producer 1 Producer 2 Producer 1 Producer 2 minerals is the best light Lanthanum % 9.99 25.94 36.50 25
Slide 18: Sep Market Prices (USD/kg)
Sep 8 Market Prices (USD/kg) REO Low High La 1.50 1.70 Ce 1.70 2.00 Nd 38.00 40.00 Pr 48.00 52.00 Sm 1.80 1.95 Eu 62.00 72.00 Gd 22.50 23.50 Dy 198.00 202.00 Tb 410.00 420.00 Y 3.55 3.80 18
Slide 19: Process Flow: Beneficiation, Hydrometallurgy
Process Flow Beneficiation Hydrometallurgy 19
Slide 20: Beneficiation Flotation technique
Beneficiation Flotation technique 20
Slide 21: Yangibana: Toll Treatment Route
Yangibana : Toll Treatment Route Toll Treat 21
Slide 22: Yangibana: Mine and Production Development Plan
Yangibana : Mine and Production Development Plan FY15 FY16 FY17 FY18 FY19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Pre- Feasibility Study Completed Definitive Feasibility Study In Progress Production Plan Evaluation In Progress Pilot Plant Work In Progress Mining Application/Appro
Slide 23: Cost Control: Phase Management Transition
Cost Control : Phase Management Transition 23
Slide 24: Pioneering Work - South of the Mining Facility
Pioneering Work - South of the Mining Facility Airstrip Floodway Village Bulk Earthworks Shire Road Access 24 Road
Slide 25: Milestones to Completion of DFS
Milestones to Completion of DFS • Complete Beneficiation Pilot Plant Test Work Nov 2016 • Mining Proposal/Mine Rehab Plan Submission Nov • Complete HydroMet Pilot Plant Test Work Feb 2017 • Production Process Optimisation March • Commence Infrastructure “Pioneering” Work April • Prelim Plant Enginee
Slide 26: Pioneering Work and Process Optimisation Estimated Costs
Pioneering Work and Process Optimisation Estimated Costs AUDm • Roads (15km of access road) 4.0 • River crossing 1.5 • Bulk earth works for camp site 1.5 • Airstrip (1.8km to handle 65 seater plane) 2.0 • Total - Pioneering work cost 9.0 • Production Process Optimisation (post piloting) 3.0 26
Slide 27: Equity Funds Raised (NO DEBT)
Equity Funds Raised (NO DEBT) HAS:AU - Share Price Performance 0.12 May 2014: Underwritten Rights Issue at 3.8c 0.1 (Fund drilling program at Yangibana) A$2.8m Dec 2014: Share Placement at 7c per share A$6.5m 0.08 (Fund PFS) 0.06 Jan 2015: Underwritten Share Purchase Plan @ 7c per share A$2.0m Apr 2
Slide 28: Investment Case
Investment Case Strong growth in demand for Nd/Pr for Permanent Magnets Exceptional Nd/Pr mineralogy supports strong economics Good cost & process control through to production Granted Mining Leases free of Native title claims Australia: AAA sovereign risk rating 28
Slide 29: Brockman / Kimberley: REE and Gold Prospects
Brockman / Kimberley : REE and Gold Prospects Northern WA http://dmpbookshop.eruditetechnologies.com.au/product/rare-earth-may-2014.do • JORC resources estimate: 41.4 million tonnes at 0.21% TREO including 0.18% HREO • Australia’s largest HREO deposits • Mainly Dy and Y http://dmpbookshop.eruditetec
Slide 30: Thank You Q&A
THANK YOU Q&A 30
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