Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — 121 Hong Kong Conference 2017
38 slides from Hastings Technology Metals's conference presentation, March 2017
Slide 1: Hastings Technology Metals - Future Supplier of Rare Earths to Permanent Magnet Industry
HASTINGS TECHNOLOGY METALS LTD (ASX Listed Stock Code: HAS) Future Supplier of Rare Earths to Permanent Magnet Industry 121 Hong Kong - Investor Presentation March 2017 Brockman 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: Overview of Hastings Technology Metals
Overview of Hastings Technology Metals • Hastings Technology Metals – from its Yangibana tenement located in the Gascoyne, WA, is developing a mine to produce Neodymium (Nd) , Praseodymium (Pr) and other Rare Earth Oxides. • Nd and Pr are the critical elements in next-generation technologies e.g. wi
Slide 4: The Hastings Team
The Hastings Team 4
Slide 5: Experienced Board & Management
Experienced Board & Management Charles Lew Tony Ho Jean Claude Steinmetz Executive Chairman Non Executive Director & Chair of Audit Non Executive Director • Private investor and entrepreneur Committee • Previously Chief Operating Officer for Lynas • MD of ABN Amro Investment Bank Singapore • Directo
Slide 6: Management Team
Management Team Charles Tan Guy Robertson Chief Operating Officer Chief Financial Officer & Company Secretary • 20+ years in Commercial, • 25+ years CFO experience Procurement, Outsourcing & Supply Chain Management with MNCs • Former senior finance executive with Jardine Lloyd Thompson, Colliers, Fr
Slide 7: 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 8: Yangibana
Yangibana 8
Slide 9: Yangibana: Located in Central Western Australia
Yangibana : Located in Central Western Australia • Situated 280 km north-east of Carnarvon • Yangibana site covers total area of ~650 km2 BROCKMAN Yangibana 9
Slide 10: Yangibana: Mining Leases Granted
Yangibana : Mining Leases Granted Mining Leases Granted (shaded in red & blue) with tenure of 20 years and no Native Title claims covering 90% of JORC Resource area measuring only ~50sqkm out of 650sqkm Miscellaneous and General Purpose Leases granted Application to authorities for permit to commenc
Slide 11: Yangibana: JORC resource update 2017
Yangibana : JORC resource update 2017 Total Yangibana JORC Resources Category Tonnes Nd2O3+Pr2O3 TREO Nd2O3 Pr2O3 • Jan 2017 updated Resource estimate Measured 2,155,000 % 0.42 % 1.01 ppm 3,410 Ppm 770 which includes first Measured Resource Indicated Inferred 5,446,000 5,807,000 0.41 0.36 1.30 1.12
Slide 12: Recent Airborne Surveys and Drilling Results – ASX Releases
Recent Airborne Surveys and Drilling Results – ASX Releases* • Infill drilling at Fraser’s return very encouraging intersections (6 Oct) • Airborne survey identified additional 22 priority areas of significant exploration interest (18 Oct) • Fraser’s Southwest Deposit drill results with grades as hi
Slide 13: Yangibana: Open Pit Mining on Flat Terrain
Yangibana : Open Pit Mining on Flat Terrain • 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 • Two significant aquifers in mineralised ground 13
Slide 14: The Market for Rare Earths and Permanent Magnets
The Market for Rare Earths and Permanent Magnets 14
Slide 15: Some End Uses for Magnets' Rare Earth
Some End Uses for Magnets’ Rare Earth Focus on production of rare earths for permanent magnet industry; i.e.. Nd, Pr and Dy due to strong future demand for Electric Vehicles, wind turbines, domestic appliances, industrial robotics, digital devices, etc. 15
Slide 16: Rare Earth Used in a Mobile Phone
Rare Earth Used in a Mobile Phone 16 Source: Apple, Venturebeat.com
Slide 17: Facts in Perspective
Facts in Perspective • World wide sales of mobile phones by 2014 ~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 2.7kg
Slide 18: Rare Earth Metals in an Electric Vehicle
Rare Earth Metals in an Electric Vehicle 18
Slide 19: NdFeB Permanent Magnets in comparison
NdFeB Permanent Magnets in comparison § NdFeB (Neodymium, Iron, Boron Magnet) - strongest permanent magnet commercially available § ~10 times more powerful, and 3 times lighter than traditional ferrite magnet è Superior performance, miniaturisation, compact, lightweight and more efficient § Synchron
Slide 20: New Technologies using Permanent Magnets
New Technologies using Permanent Magnets • PVC stabilizers – Protect PVC from thermal degradation and exposure to heat and UV rays (Mostly La & Ce). Additional demand 14,000 tonnes by 2025. • Magneto caloric Refrigeration – 30% to 50% more energy efficient, zero CFC usage. (Mostly Nd-Pr & Gd). Addit
Slide 21: RE market outlook – green technology driving Nd/Pr demand growth
RE market outlook – green technology driving Nd/Pr demand growth Roskills Intel 21
Slide 22: Recovery in Rare Earths Prices in 2017
Recovery in Rare Earths Prices in 2017 • Rare Earths prices have improved in 2017, both onshore China and in international markets • China F.o.B. prices for Nd +16.8% YTD • China F.o.B. prices for Pr +13.4% YTD • Even La and Ce prices recovered, +8.6% & +11.7% respectively • Stringent crackdown in C
Slide 23: The Yangibana Advantage
The Yangibana Advantage 23
Slide 24: Exceptional High Content Nd and Pr
Exceptional High Content Nd and Pr Comparison of REO Distribution & Basket Value Between Hastings and Major Light RE Producers China Outside of China RE Oxide/TREO Unit Hastings Ø Yangibana’s Rare Earths Producer 1 Producer 2 Producer 1 Producer 2 distribution is the best light Lanthanum % 9.99 25.9
Slide 25: Estimated OPEX – work in progress
Estimated OPEX – work in progress Assumes 2nd year of production and 8,500 tonnes TREO • OPEX refinement underway AUD m as part of DFS* Mining Costs – based on 1m tons p.a. mined 31.5 • Mining costs from Reagents - Beneficiation 16.8 Snowdens estimates Reagents - Hydromet 21.7 • Reagent costs from c
Slide 26: CAPEX (WIP) – Procurement/Sourcing Strategy
CAPEX (WIP) – Procurement/Sourcing Strategy Direct CAPEX: estimate ~A$246m 1. Global sourcing of major capital equipment results in average savings of 25% to 30% compared to PFS. • Mills/Crushers/Screens • Sulphuric Acid Plant • Rotary Kilns • Lime Slaking 2. Utilising foreign equipment manufacturer
Slide 27: Rationale for Yangibana's competitive advantage
Rationale for Yangibana’s competitive advantage Yangibana’s profitability is due to: • Highest basket price due to high Nd-Pr content in ore body • High recovery rates of RE Oxides: +70% relative to TREO in the ground • Experienced Management Team – ex-Lynas with good experience and know how in RE p
Slide 28: Process Flow: Beneficiation and Hydrometallurgy
Process Flow Beneficiation Hydrometallurgy 28
Slide 29: Yangibana: Toll Treatment Route
Yangibana : Toll Treatment Route Toll Treat 29
Slide 30: Yangibana: Mine and Production Development Plan
Yangibana : Mine and Production Development Plan The path to production in 2019: 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 - Benefic
Slide 31: Completed Beneficiation Piloting – March 2017
Completed Beneficiation Piloting – March 2017 • Successful completion of pilot plant testing validating simple and effective Yangibana flotation process. • Piloting confirmed 70% TREO recovery and concentrate grade of 23% TREO. • Ongoing improvement to optimize floatation circuit chemistry with expe
Slide 32: Milestones to Completion of DFS
Milestones to Completion of DFS • Beneficiation Pilot Plant Test Completed Feb 2017 • HydroMet Pilot Plant Test Work Mar/Apr • Mining Proposal/Mine Rehab Plan Submission March • Production Process Optimization April • Prelim Plant Engineering Specification May/June • DFS Document Release to Public 3
Slide 33: DFS – Production Concept – reducing size of plant
DFS – Production Concept – reducing size of plant • Initial plan to mine 1m tons p.a, Capex is AUD350m and Opex is AUD175m. However;….. • DFS optimization process – analyze smaller production plant of 700,000 tons p.a mined = TREO 5,500 tons; • Capex reduced to ~AUD250m & Opex to ~AUD120m • Current
Slide 34: Hastings Technology Metals Equity Statistics
Hastings Technology Metals Equity Statistics 34
Slide 35: Equity Funds Raised and Share Price Performance
Equity Funds Raised (NO DEBT) HAS:AU - Share Price Performance 0.12 May 2014: Underwritten Rights Issue at 3.8c A$2.8m (Fund drilling program at Yangibana) 0.1 Jan 2015: Underwritten Share Placement @ 7c per share A$6.5m 0.08 Jan 2015: Underwritten Share Purchase Plan @ 7c per share A$2.0m Apr 2016:
Slide 36: HAS – Current Shareholding Distribution
HAS – Current Shareholding Distribution • YTD Performance +35.6% Hastings Price in AUD • 2017 increase in Total Shareholders by 29% 0.11 • Top 100 shareholders control 94% of shares with top 10 controlling 73%. 0.1 • Future Equity capital raise to partially fund 0.09 CAPEX will help increase daily t
Slide 37: Summary
Summary § Strong growth in demand for Permanent Magnets § Yangibana’s high basket price compared to most § Management’s ability to execute its business plan and control costs from start § Granted Mining Leases free of Native title claims over 90% of JORC resource § Non-China sustainable source of su
Slide 38: Thank You Q&A
THANK YOU Q&A 38
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