Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (January 2018)
33 slides from Hastings Technology Metals's investor presentation, January 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 January 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$ 230m • ~ 1200 Shareholders +55% in 2017 • Top 10 shareholders owns 70% • A$ 46m raised since 2014 • Zero Debt 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 & Pra
Slide 5: Early Works Programme
Early Works Programme Commencing Q1 2018 Bulk earthworks 240 room village Civil engineering Engage Order Critical Path contracts scope being sourced design being contractors for Long Lead items developed and (options for 2nd finalised for: Early Contractor (Rotary Kiln, contractors under hand villag
Slide 6: Operational Readiness
Operational Readiness 1 2 3 4 5 Establish Critical Develop Establish and Review Risk Community Path for execution Maintenance enter into supply management Engagement via and establish Strategies in agreements protocols and signed Native Title monitoring process parallel to (parts, establish systems
Slide 7: Overall Mine Layout
Overall Mine Layout Optimising logistics between deposits • Mining focus 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 re
Slide 8: Project Status
Project Status • Purchase Order placed for Accommodation Village (240 rooms) • Tenders prepared for Bulk Earthworks • Tenders issued for Long Lead Items (Rotary Kiln and Sulphuric Acid Plant) 8
Slide 9: Capital Cost for Infrastructure A$50-60m
Capital Cost for Infrastructure A$50-60m Expected Completion September 2018 • Roads /Bulk Earthworks - Access Roads & River Crossings • Accommodation Village and support infrastructure • Upgrade airstrip at Gifford Creek • Power Plant – Diesel, LNG and Solar being evaluated • Alternative Trucking & S
Slide 10: Timetable to Production
Timetable to Production Milestones to production by Q3 2019 PROJECT IMPLEMENTATION SCHEDULE FOR YANGIBANA RARE EARTHS PROJECT 2017 2018 2019 2020 Activities N D J F MAM J J A S O N D J F MAM J J A S O N D J F Definitive Feasibility Study (DFS) Permitting & Approvals Design for Access Road & Bulk Ear
Slide 11: DFS Capital Cost A$335m
DFS Capital Cost A$335m An improvement of 20% from PFS A $ Cost Centre A$ Million Cost Centre Million Mining Process Plant $130.2 Non Process Infrastructure $105.1 Contingency 1% 13% Crushing and Screening 3.6 Mine Infrastructure 3.9 Grinding 14.1 TSF 1,2 and 3 19.5 Flotation 27.0 Evaporation Pond 0
Slide 12: DFS Operating Cost A$17.06/kg of TREO
DFS Operating Cost A$17.06/kg of TREO An improvement of 30% from PFS • Processing Costs – significant gains achieved in metallurgical process resulted in lower reagent consumption and costs decrease by 47% • Minor increases in General & Admin costs mainly reflecting corporate admin expenses • Resour
Slide 13: Funding Programme
Funding Programme Commencing Q1 2018 • Project Finance funding – 65% Debt : 35% Equity Senior D Senior ebt aand Debt nd SSubordinated ubordinated DDebt ebt ~ $220m ~ $220m • Senior & Subordinated Debt financing - potential sources: Working CWorking apital ~ ACapital $30m ü Export credit insurance ~
Slide 14: Project Drawdown
Project Drawdown Milestones, Timeline & Expenditure CAPEX Milestone & Drawdown 2018 CAPEX Milestone & Drawdown 2019 $(M) $(M) 100 100 50 $93.8m 50 $90.3m Process & Sulphuric Process & Sulphuric Acid Plant , Rotary Kiln Acid Plant , Rotary Kiln 20 20 $28m $22.3m Bulk Earthworks $19.7m ProducIon & Min
Slide 15: Projected Funding Drawdown
Projected Funding Drawdown Schedule to determine funding requirement HAS Projected Quarterly Drawdown and Proposed Cash Raising (A$ '000s) Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 $0 -$10,000 -$20,000 $50M $50M Equity -‐ Equity -$30,000 Raising Shares placement/ -$40,000 SPP/Rights -
Slide 16: Yangibana Region
Yangibana Region • Gascoyne Junction – good support from local community for mining at Yangibana • Gifford Creek Airstrip – FIFO services • Carnarvon – high unemployment hence availability of casual labour • Geraldton, Onslow or Exmouth – ongoing economic assessment for inbound and outbound freight
Slide 17: Yangibana – Western Australia
Yangibana – Western Australia AAA Sovereign Rating, Established Mining Region Outcrops & 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 Miscellaneou
Slide 18: JORC Resources
JORC Resources High Neodymium and Praseodymium content Total Yangibana JORC Resources (rounded) Category Tonnes Nd2O3+Pr6O11 TREO Nd2O3 Pr6O11 % % ppm ppm • Total Measured, Indicated and Inferred Measured 3,900,000 0.42 1.19 3,372 851 Indicated 8,600,000 0.42 1.25 3,368 858 Resources now at 21m tonn
Slide 19: Maiden JORC Ore Reserves
Maiden JORC Ore Reserves High Neodymium and Praseodymium content JORC Probable Ore Reserves (rounded) Deposit Tonnes Nd2O3+Pr6O11 TREO Nd2O3 Pr6O11 % % ppm ppm Bald Hill 4,380,000 0.41 1.04 3,330 783 Fraser’s 780,000 0.67 1.58 5,320 1,380 TOTAL 5,160,000 0.45 1.12 3,630 873 * Hastings ASX release 28
Slide 20: Favourable Terrain
Favourable Terrain Start at outcrops, shallow open pit mining for 8yrs Selective Mining – Bald Hill Selective Mining - Frasers
Slide 21: 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 RE mined & niobium • Provision of jobs and training for the community 21
Slide 22: 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 China Outside of China validated by customers RE Oxide/TREO Unit Hastings Baotou Sichuan Mt Weld Mountain Pass in the MREC Lanthanum % 9.
Slide 23: Spot Prices of Rare Earth Oxides (October 2017)
Spot Prices of Rare Earth Oxides (October 2017) China F.o.B. Export prices 12-Oct-2017 (USD/kg) & YTD change Lanthanum oxide La2O3 $ 2.55 +11 % Cerium oxide CeO2 $ 2.55 +50 % Praseodymium oxide Pr6O11 $ 77 +59% Neodymium oxide Nd2O3 $ 60 +56 % Dysprosium oxide Dy2O3 $ 174 -2% Terbium oxide Tb4O7 $ 5
Slide 24: The Yangibana Process and Product
The Yangibana Process and Product The Steps from Mining to Mixed Rare Earth Carbonate (MREC) Successful Beneficia+on and Hydrometallurgy pilot plan test-‐work proves simple and effec+ve produc+on process flow sheet. 1m t.p.a. mined 30 - 40k t.p.a. Beneficiated ~15,000 t.p.a. MREC ~8,500 t.p.a. Concent
Slide 25: Yangibana Flowsheet
Yangibana Flowsheet Pilot test work at ALS and ANSTO confirms production process Flotation Pilot Plant Operation at ALS, Perth • Beneficiation – 18-20x upgrade, high Nd-Pr recovery levels of 76% • Hydrometallurgy – 41% Nd-Pr content in the Final flotation concentrate from Yangibana MREC beneficiatio
Slide 26: 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 27: Major Growth Applications
Major Growth Applications Demand drivers for permanent magnets from new technologies Wind turbines Electric Vehicles Magnetocaloric Refrigeration GWEC projects wind Policy changes, 30% to 50% more energy capacity to reach 2,110 GW Manufacturer EV Targets efficient & zero CFC usage – 5X increase from t
Slide 28: Board of Directors
Board of Directors Experienced Directors and Management Team Guy Robertson Charles Lew Jean Claude Aris Stamoulis Executive Chairman Steinmetz Executive Director / Finance Director & Non-Exec. Director / Director Corporate Finance Company Secretary • Corporate Finance Director Commercial Director •
Slide 29: Management Team
Management Team In depth experience and specialised skills Andy Border Pit Wah Chung Viv Roberts Hannes Zandberg Robin Zhang General Manager Chief Financial Officer Director of Mining Project Director Process Engineering Mgr Exploration Operations • 40+ years experience as • 18+ years experience in •
Slide 30: Specialised Technical Team
Specialised Technical Team Dr Kwan Wong Narelle Marriott KYSPYmet Mineral Processing Principal Engineer – Beneficiation Consultants - Flotation Specialist • 14+ years experience in the minerals • 50+ years practicing metallurgist with processing and mining industry extensive flotation treatment expe
Slide 31: Three off-take MOUs signed
Three off-take MOUs signed Strong level of interest and demand for Yangibana high Nd-Pr MREC Ø Baotou Sky Rock Rare Earth New Material Co. Ltd – 2,500 tonnes per annum (1 Aug 2017) Sky Rock produces high tolerance NdFeB permanent magnets. Main products include • Sintered Neodymium Magnets • Sintere
Slide 32: Summary
Summary § Experienced management § MREC with high NdPr content § Market Cap A$230m team with rare earth production experience § DFS basket price: USD30.50/ § NPV A$466m kg (Oct 2017) § Definitive Feasibility Study § IRR 78% (DFS) completed § Mine construction 1Q 2018 Production Q4 2019 § EB
Slide 33: Thank you. Q & A
Thank you. Q&A
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