Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (February 2021)
25 slides from Hastings Technology Metals's investor presentation, Feb 10, 2021
Slide 1: Yangibana Project – Begin the Future
Yangibana Project – Begin the Future Investor Presentation HASTINGS Technology Metals Limited February 2021
Slide 2: Important Notice – Disclaimer
Important Notice – 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 po
Slide 3: Australia’s Next Rare Earth Producer
Australia’s Next Rare Earth Producer Up to 52% NdPr:TREO, highest amongst peers World leading Beneficiation upgrading of up to 25x mine grade Low Capex – A$449M; Production 15,000tpa MREC; equivalent to 3,400tpa NdPr oxides after separation Next RE producer (non-China) coming to production by 2023;
Slide 4: Yangibana Project – Milestones Achieved
Yangibana Project – Milestones Achieved PROJECT MILESTONES Nov 17 Jun 20 Native Title Apr 19 Feb 19 Oct 19 Schaeffler agreement Feb 2018 Euler Hermes Successful 2nd EPCM contract Master Supply signed Thyssenkrupp Offtake (UFK) In Principal pilot plant test - signed with DRA Agreement MOU signed Nov
Slide 5: Yangibana Advantage – Highest NdPr:TREO ratio
Yangibana Advantage – Highest NdPr :TREO ratio REO Ore Distribution (Hastings vs Major Producers) 45 42.46% 40 35 % DISTRIBUTION 30 24.39% • Highest value Rare Earths Project for Ore value per kg 25 21.21% 20 16.41% 14.2% 15 10 • 75 – 175% higher value ore products than any current 5 producing rare
Slide 6: Economics – Its not about the TREO grade
Economics – Its not about the TREO grade Yangibana – Beneficiation Plant Grade from the Mine Company TREO % NdPr: NdPr % (Head Grade) TREO 1 16% 24% 3.84% HAS 1.2% 41% 0.50% 3 2.77% 26% 0.73% End of Flotation Stage Company TREO % TREO% % of Con (Head Con NdPr Upgrade Grade) Grade in Con Factor Coast
Slide 7: Separation cost advantage
Separation cost advantage High NdPr content allows for lower separation cost vs China MREC (t) TREO% NdPr:TREO % of NdPr REO (t) NdPr (t) Hastings’ MREC per tonne China 27,750 59% 20% 12% 16,373 3,275 • almost 2x cheaper to separate than Hastings 15,000 59% 37% 22% 8,850 3,275 (20% NdPr:TREO) Chines
Slide 8: Hydromet Relocation Study – Onslow or Port Hedland
Hydromet Relocation Study – Onslow or Port Hedland Onslow Strategic Industrial Area Port Hedland Industrial Area Services available at both sites • Gas • Mains Power • Water • Port Facilities • Roads • IT Comms
Slide 9: 2020 Exploration Drilling Program
2020 Exploration Drilling Program 2020 Drilling Program RC Drilling at Bald Hill 1. 23,000m of RC drilling – completed 2. 5,000m of close space drilling – completed 3. Metallurgical test samples – near completion zones. Exploration Drilling at Bald Hill GC Drilling at Bald Hill
Slide 10: Bald Hill - Simon’s Find – Frasers (8kms long)
Bald Hill - Simon’s Find – Frasers (8kms long) 1. Drilling results confirm a major 2km long zone of economic mineralisation at Simon’s Find 2. Simon’s Find and the recently announced Fraser’s North and South drill results form a continuous zone of economic mineralisation 4km long 3. The Fraser’s - S
Slide 11: Simon’s Find Drilling Results
Simon’s Find Drilling Results • World leading grade of neodymium (Nd2O3) + praseodymium (Pr6O11) = 52% of the TREO (total rare earth oxides) values. • These results are significantly higher than the 40-41% values recorded from the nearby Bald Hill and Frasers deposits. • High-grade and shallow inter
Slide 12: Frasers Drilling Results
Frasers Drilling Results Frasers North Frasers South Potential Pit Size
Slide 13: Exploration Potential – What is the Upside ?
Exploration Potential – What is the Upside ? Yangibana North Drilling • Historic • Planned • Assays Pending Yangibana Bald Hill Simon’s Find Frasers Auer Geological structure
Slide 14: Capex Scenario – excluding contingency
Capex Scenario – excluding contingency Decoupling of beneficiation and hydromet plant savings total $68M Capex Capex CAPEX savings Variance Budget Revised • Reduced by $68m ($m) • Hydromet to Onslow (tbc) 2019 ($m) 2020 ($m) • Eliminated Gas pipeline Mining 14 10 -3 Process Plant 167 181 14 Tailings
Slide 15: EV: 2022 forecast market share – McKinsey Report
EV: 2022 forecast market share – McKinsey Report China and Europe EV market forecasted to grow much faster than in US • Government regulations and incentives will propel EV penetration. Forecast EV mkt share from 2019 to 2022 : - China: from 5% to 11-14% (~1.2m to 3.5m units) - Europe: from 3% to 14
Slide 16: Market Update
Market Update • Market for Magnet Rare Earth Oxides to Increase 5x by 2030 (1) - Total NdFeB magnet demand forecasted to increase at 9.7% CAGR and prices projected to increase at CAGRs of 5.6% to 9.9% over same period - Global magnet rare earth oxides consumption will rise 5x by 2030, from US$2.98B
Slide 17: Offtake Snapshot
Offtake Snapshot > 65% of production contracted for 10 yrs with strong offtake counterparties Offtake Counterparty MOU signed 2018, advanced Master Supply Agreement Offtake Agreement Contract Status contract drafting Signed Jun-2019 Signed Nov-2018. Target signing March Quantity 5,000t MREC p.a. 7,5
Slide 18: Project Finance Lenders
Project Finance Lenders Ø Loans to be underpinned by long term offtake contracts with German Tier 1 companies, Schaeffler and Thyssenkrupp Ø KFW Ipex Bank mandated to advise on German untield loan guarantee scheme UfK) which attracts concessionary financing, subject to certain conditions benefiting
Slide 19: Project Funding - Overview Indicative Debt/Equity Structure
Project Funding - Overview Indicative Debt/Equity Structure A$M A$M % Project Capex – Mine & Process Plant 449 Contingency @ 15% 67 Total Project Capex* 516 80% Sunk cost up to DFS 33 5% Working capital 27 4% Financing costs/ IDC / ECA insurance premium, etc 66 11% Total funding for the Project 642
Slide 20: Capital Structure
Capital Structure Capital Structure $/Shares Share Price Performance Cash Balance (at 31 Dec 2020) A$20M $0.300 12 Shares in Issue 1,200M $0.250 10 Share Price (rebased) Share Price (3rd Feb 2021) A$0.22 8 Volume ('m) $0.200 Market Capitalisation A$265M 6 $0.150 4 Performance Rights (directors & sta
Slide 21: Board of Directors
Board of Directors Jean Claude Bruce McFadzean Charles Lew Guy Robertson Mal Randall Neil Hackett Steinmetz Non Executive Executive Finance Non Executive Non Executive Non Executive Director Chairman Director Director Director Director • Joined the Board in • Joined the Board in • Appointed Chairman
Slide 22: Experienced Senior Management Team
Experienced Senior Management Team Nick Holthouse Matthew Allen Andrew Reid Valerie Quay Robin Zhang General Manager – Chief Financial Officer Chief Operating Officer Legal Counsel Process Engineering Manager Engineering & Operation Readiness • Joined Hastings in 2019 • Joined Hastings in 2021 with
Slide 23: Independent Consultants and Advisors
Independent Consultants and Advisors Engineering, Procurement, Construction and Management (EPCM) Commodity Market Analysis Project Finance Legal Counsel to Borrower Project Finance Debt Advisory Independent Technical Experts to Lenders Financial Adviser to Euler Hermes Environmental and Social Gap
Slide 24: Competent Person
Competent Person Competent Persons and Qualifying Persons Statement The information in this announcement that relates to Exploration Results in relation to the Yangibana Project is based on information compiled by Mr. Benjamin Nicolson BSc (Hons), a Competent Person, who is a Member of the Australia
Slide 25: Thank You / Questions?
Thank You / Questions? 25
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