Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (November 2018)
30 slides from Hastings Technology Metals's investor presentation, November 2018
Slide 1: Yangibana Project - High Grade Neodymium & Praseodymium Mine
Yangibana Project - High Grade Neodymium & Praseodymium Mine for the Permanent Magnets Industry ASX stock code: HAS Investor Presentation HASTINGS Technology Metals Limited November 2018
Slide 2: Disclaimer
Disclaimer All currency am ounts are in A$ unless stated otherwise. Disclaim er This presentation has been prepared by Hastings Technology Metals Limited (“ Company”). It does not purport to contain all the infor mation that a prospective investor may require in connection w ith any potential invest
Slide 3: Everyday Use of Permanent Magnets
Everyday Use of Permanent Magnets Tesla 3? Washing Machine s, Fans and Fridges? 3
Slide 4: Yangibana – Western Australia
Yangibana – Western Australia Established Mining Region, Flat Terrain, Open Pit Mining • Yangibana area ~ 650 km2 • 21 years Mining Leases granted since March 2016 covering only 50 sqkm • JORC Resource – 21m tonnes from 50 sqkm • Native Title Agreement signed Nov 2017 for 650sqkm • ERD approval for
Slide 5: Yangibana Development History
Yangibana Development History PROJECT MILESTONES Nov 14 Mar 15 Aug to Sept Nov 17 Oct 18 Successful Scoping May 16 2017 DFS completed ERD advertised Beneficiation Study PFS completed 3 Chinese Feb 2018 with 1 general Results complete & DFS May 17 Offtake Nov 17 Mar 14 Thyssenkrupp public comment Nov
Slide 6: 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 RE Oxide/TREO Unit Hastings Mountain customers in the Baotou Sichuan Mt Weld Pass MREC Lanthanum % 9.9
Slide 7: Spot Prices of Rare Earth Oxides (Sep 2018)
Spot Prices of Rare Earth Oxides (Sep 2018) China F.o.B. Export prices 07-Sep-2018 (USD/kg) & YTD change Lanthanum oxide La2O3 $ 2.20 -7% Cerium oxide CeO2 $ 2.15 -7% Praseodymium oxide Pr6O11 $ 62.65 -1% Neodymium oxide Nd2O3 $ 48.60 +2% Dysprosium oxide Dy2O3 $ 172.80 -2% Terbium oxide Tb4O7 $ 440
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 21.7m tonnes* Measured 4,700,000 0.42 1.17 3,394 848 Indicated 8,700,000 0.41 1.24 3,27
Slide 9: Exploration Targets
Exploration Targets Multiple deposits – significant resource increase opportunity opportunities Yangibana West • Eastern and Western Belts form >25km of strike length • Further resource drilling in 2018 exploration program to increase JORC Resources and Reserves. Yangibana • Only 100% owned ground B
Slide 10: Un-explored targets
Un-explored targets Multiple deposits – significant resource increase opportunities • Tenement wide high resolution aeromagnetic survey undertaken in 2016 • 6 new targets identified by aeromagnetic survey • >1,000m of exploratory drilling on targets included in 2018 programme between Auer and Fraser
Slide 11: 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 12: Environmental Impact Assessment
Environmental Impact Assessment No significant environmental impacts • Thorough understanding of the surrounding environment • surveys across all tenements • assessments • Environmental Factors • Flora and Vegetation • Fauna and Subterranean Fauna • Terrestrial Environmental Quality • Water • Human
Slide 13: Public and regulator feedback
Public and regulator feedback Public advertisement period (4 weeks in October) Only 1 submission from the general public and 1 submission from a non-government organisations – a positive indicator of confidence Positive feedback from the • Department of Biodiversity, Conservation & Attractions • Dep
Slide 14: Compliance with Equator Principles
Compliance with Equator Principles • Environmental Review Document approved for public advertisement by the Environmental Protection Authority of WA Environmental • Public advertisement period completed • Final EPA recommendation to Minister and permitting 2Q 2019 • Commitment to manage the Project
Slide 15: The Yangibana Process and Product
The Yangibana Process and Product 1MT of ore to produce 15KT of Mixed Rare Earth Carbonate (MREC) Successful Beneficiation and Hydrometallurgy pilot plan test-work proves simple and effective production process flow sheet. ~15,000 t.p.a. MREC 1m t.p.a. mined 30 - 40k t.p.a. Beneficiated = ~8,500 t.p
Slide 16: Process Flowsheet – to produce 15KT of MREC
Process Flowsheet – to produce 15KT of MREC • Beneficiation – more than 20x upgrade with Flotation Pilot Plant 85% NdPr recovery at optimum conditions Operation at ALS, Perth • Hydrometallurgy – 41% NdPr content in the Yangibana MREC Neutralisation & Precipitation Circuit – Hydromet - ANSTO 16
Slide 17: Off take MOUs/Contracts for ~70% MREC
Off take MOUs/Contracts for ~70% MREC • 5,000 tonnes per annum of Yangibana MREC for 10 years • For German and European automotive industry • Signed 28 Feb 2018, contract drafting in progress • 2,500 tonnes per annum for 5 years CONTRACT SIGNED • Price based on 90 days mid market EXW REO price in RM
Slide 18: Global Demand Growth for Permanent Magnets
Global Demand Growth for Permanent Magnets CAGR 2017 – 2022: ~ 9% Application 2016 2017 2022 CAGR% USDm USDm USDm 2017–2022 Consumer electronics 1,933.9 2,090.8 3,078.0 8.0 Global Market for Permanent Magnets - by Industry 2022 (USDm) Electric motors 1,888.9 2,074.6 3,287.3 9.6 Sonic equipment, magn
Slide 19: 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 14 th International Rare Earth Conference, Nov 201
Slide 20: EV - Catalyst for NdPr Demand
EV - Catalyst for NdPr Demand Expected Growth of Electric Vehicle Sales Worldwide 25 Commercial (truck and vehicle) EV (electric vehicle) 20 PHEV (plug-in hybrid electric vehicle) HEV (hybrid electric vehicle) Total 15 Millions 10 5 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 21: Commitment to Electrification
Commitment to Electrification VW invests US$25bn in Volvo will have an BMW to mass produce battery cell to make 50m electric model in every 12 different models of electric cars [1] car range by 2019 [2] electric cars by 2020 [3] Toyota commits to Honda announces ‘Electric Daimler invests manufacturi
Slide 22: Timetable to Production
Timetable to Production Milestones to production by Q4 2020 PROJECT IMPLEMENTATION SCHEDULE FOR YANGIBANA RARE EARTHS PROJECT #### 2018 2019 2020 Activities ND J FMAM J J A S OND J FMAM J J A S OND J FMAM J J A S O Definitive Feasibility Study (DFS) Permitting & Approvals Design for Access Road & Bu
Slide 23: Definitive Feasibility Study (DFS) – Yangibana
Definitive Feasibility Study (DFS) – Yangibana Independent Study by Wave International and Snowden • JORC Resource of 21MT supports an initial 8 years mine life on 100% held ground • Maiden JORC Probable Ore Reserves of 5.15MT on 100% owned ground • Highest known Neodymium & Praseodymium (Nd-Pr) con
Slide 24: DFS Operating Cost A$17.06/kg of TREO
DFS Operating Cost A$17.06/kg (US$13.00/kg) of TREO Pretax Profit Margin ~ 25% at current REO prices • Sept 2018 MREC Basket Price USD25.00/kg (A$33.30) vs DFS of USD 30.50/kg (A$40.65)¹ • Post-DFS Opex Costs estimate increase to USD14.00/kg (A$18.67) vs DFS Opex of USD13.00/kg (A$17.06)¹ • Expect i
Slide 25: Funding Programme
Funding Programme KfW commenced due diligence, expected to complete Jan 2019 • DFS capex A$335m, capex review underway by DRA Global Senior Debt and Subordinated Senior Debt Debt ~ $220m A$250 • Project Finance funding – 65% Debt : 35% Equity Target close 2Q 2019 Working Capital ~ A$30m • Proposed S
Slide 26: Hastings Equity Statistics (HAS:ASX)
Hastings Equity Statistics (HAS:ASX) Steady growth in market cap since Jan 2017 • Market Cap ~ A$ 150m • ~ 1250 Shareholders +55% in 2017 • Top 10 shareholders (Malaysians) owns ~ 70% • A$75m raised since 2014 • Cash: A$22m as reported on 30th Sept 2018 • No Debt • Included in the ASX All Ordinaries
Slide 27: Board of Directors
Board of Directors Experienced Directors and Management Team Neil Hackett Charles Lew Jean Claude Steinmetz Non Executive Director & Executive Chairman Non-Exec. Director / Commercial Company Secretary Director • Corporate Finance and Regulatory • Corporate Finance Director HG Asia • Previously Chie
Slide 28: Executive Management Team
Executive Management Team In depth experience and specialised skills Andy Border Valerie Quay Andrew Reid Pit Wah Chung Robin Zhang General Manager Chief Operating Officer Process Engineering Legal Counsel Chief Financial Officer Exploration Manager • 20 years experience in • 20+ years experience in
Slide 29: Summary – Key Facts
Summary – Key Facts ❖ Rapid growth in EV will drive NdPr Demand ❖ Public Environmental Review advertised and completed with favourable outcome ❖ Offtake - contract signed with Boatou SkyRock; MOU signed with Thyssenkrupp and GQD to be converted to contract ❖ KfW German state bank for project finance
Slide 30: Thank you. Q & A
Thank you. Q&A
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