Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (March 2019)
25 slides from Hastings Technology Metals's investor presentation, Mar 12, 2019
Slide 1: Yangibana Project – Begin the Future
Yangibana Project – Begin the Future Investor Presentation HASTINGS Technology Metals Limited March 2019
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: Yangibana Development History
Yangibana Development History Nov 14 Aug to Sept 2017 Oc t 1 8 Successful 3 Chinese Offtake Nov 17 Feb 19 ERD advertised with 1 MILESTONES Beneficiation Results M ar 1 5 MOUs signed DFS completed Successful general public comment PROJECT Scoping Study 2nd pilot completed May 16 plant test Nov 18 PFS
Slide 4: Investment Attraction – Why Hastings?
Investment Attraction – Why Hastings? v Highest NdPr content at 41% of TREO v CAGR of 9% for NdPr due to expected strong demand from EV sales v NPV A$447m : IRR 28% : Payback 2.6 years v Average Annual Free Cash Flow ~A$137m v EIA report completed, progressing on to final permitting and approvals v
Slide 5: Site Overview
Site Overview Broome Onslow Yangibana Project Area Carnarvon Meekatharra Geraldton Fremantle Perth 5
Slide 6: Resources and Reserves
Resources and Reserves Nd2O3+Pr6O11 Mineral Resources Tonnes (Mt) TREO % % Measured 4,727,000 1.17 0.42 Indicated 8,652,000 1.24 0.41 Inferred 8,294,000 1.09 0.36 TOTAL 21,673,000 1.17 0.39 Ore Reserves Tonnes (Mt) TREO % Nd2O3+Pr6O11% Probable 10,345,000 1.22 0.43 Final Product MREC (tpa) TREO % Nd
Slide 7: Yangibana Advantage – Highest Nd-Pr ratio
Yangibana Advantage – Highest Nd-Pr ratio Comparison of REO Distribution & Basket Value Between Hastings and Major Light RE Producers China Outside of China • Nd-Pr /TREO RE Oxide/TREO Unit Hastings Mountain composition is Baotou Sichuan Mt Weld Pass validated by Lanthanum % 9.99 25.94 36.50 25.16 3
Slide 8: Spot Prices of Rare Earth Oxides (6 Mar 2019)
Spot Prices of Rare Earth Oxides (6 Mar 2019) China F.o.B. Export prices 06-03-2019 (USD/kg) & YTD change Nd Oxide Prices, FOB China USD/mt Lanthanum oxide La2O3 $ 2.0 0% Cerium oxide CeO2 $ 2.0 0% Praseodymium oxide Pr6O11 $ 57.00 -1% Neodymium oxide Nd2O3 $ 46.50 0% Dysprosium oxide Dy2O3 $ 183.00
Slide 9: Site Overview
Site Overview 200kms north of Gascoyne Location Junction Mining Method Open Pit Minerals Rare Earths Mineralisation Iron stone Type Plant Capacity 1.0 Mtpa Process SAG Mill flotation front end method Kiln – Hydromet back end Overall ~ 76% Recovery Mineral 21.67Mt @ 1.17% TREO for Resources 254kt TRE
Slide 10: Mine Economics
Mine Economics Net Present Value $447 million Internal Rate of Return 28% Bald Hill Pit Project Payback 2.6 years Capital cost $427 million Average annual free cash $ 137 million flow (pre tax) Mining Production 1.0 Mtpa Process Plant Mine Life 11 years Annual (MREC) production ~15,000 tpa Annual (T
Slide 11: Pre-Production Capex: A$413m - Breakdown
Pre-Production Capex: A$413m - Breakdown Revised Capex 427 less: Sunk costs (to 31 Jan 2019) (14) Pre Production Capital Costs 413 Process Equipment Upgrades 42.0 Hydromet & Gas Scrubber area 23.0 Piping 6.0 Flotation 5.0 First fill reagents 3.0 Crushing & Grinding 5.0 Tailings Storage Facility 1.3
Slide 12: Final Process Flowsheet
Final Process Flowsheet Beneficiation: • Standard monazite flotation • Proprietary fatty acid collector is in use Hydromet: • Well known and reliable hydrometallurgical processes. Mixed Rare Earth Carbonate (MREC): • Annual production of 15K tonnes • Customer takes title FOB WA port of loading • Sep
Slide 13: Beneficiation Pilot Plant Testwork
Beneficiation Pilot Plant Testwork • 2 times beneficiation and continuous pilot plant testing has successfully validated the simple and effective flowsheet of Yangibana flotation process • The second pilot plant operation achieved 80% TREO recovery improved from 70% of first pilot plant operation. •
Slide 14: Capex improvements since DFS
Capex improvements since DFS Project Capital Costs Improved economics/flow sheet Power station Capex Changes from DFS • Gas pipeline and power station 450.00 outsourced 41.7 11.5 426.9 14.1 Crushing 400.00 412.8 • No mobile crushing 13.2 1.6 • 24hr Live stockpile and re-feed 41.6 1.3 0.9 Process Pla
Slide 15: Update on Major Activities
Update on Major Activities Phase One Phase Two Enabling Infrastructure Mine Construction Apr 2019 – Q3 2019 Q3 2019 – Q1 2021 • Installation of the • Process plant accommodation camp • Open pit pre-stripping • Airstrip upgrade • Tailings Storage Facility • Communications Network • Camp completion •
Slide 16: Project Timeline
Project Timeline YANGIBANA PROJECT 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Milestones 26-July-21 Approvals 31-Aug-19 Detailed Engineering 31-July-20 Design Procurement & 31-July-20 Contracts Construction 12-May-19 24-Feb-21 Commissioning 17-July-20 24-Feb-21 Commercial Production 26-Jun-2
Slide 17: 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 Electric motors 1,888.9 2,074.6 3,287.3 9.6 (USDm) Sonic equipment, magn
Slide 18: 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 14th International Rare Earth Conference, Nov 2017
Slide 19: 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 20: Financial Highlights
Financial Highlights Description Unit • Pre Production Capex – LOM Basket Price (avg) US$ / kg 37 A$413m Life of mine years 11 Project NPV (post-tax) A$M 447 • NPV of A$447m and IRR of IRR % 28% 28% exceeds hurdle rate Payback period years 2.6 LOM Net Revenue A$M 3,849 • Payback period - 2.6 years L
Slide 21: Funding Plan : 65% Debt / 35% Equity
Funding Plan : 65% Debt / 35% Equity KfW Bank advising on UFK loan application (concessionary interest rates) • Proposed Structure: ü Senior Debt (7 years/10 years) ~ $250 - 300M Senior Senior Debt and Debt Subordinated Debt ü Equity ~ $100 -150M ~ $220m A$250 - 300m ü Offtake – Advance Payment ~ $5
Slide 22: Hastings Equity Statistics (HAS:ASX)
Hastings Equity Statistics (HAS:ASX) Steady growth in market cap since May 2017 • Market Cap ~ A$130m • ~ 1250 Shareholders • Top 10 shareholders (Malaysians) owns ~ 70% • A$75m raised since 2014 • Cash: A$12m as reported on 31st Dec 2018 • No Debt • Included in the ASX All Ordinaries Index 22
Slide 23: Board of Directors
Board of Directors Neil Hackett Charles Lew Mal Randall Jean Claude Steinmetz Non Executive Director & Executive Chairman Non Execuitve Director Non-Exec. Director & Company Secretary • Corporate Finance Director Commercial Director (PT) • Bachelor of Applied Chemistry • Corporate Finance and HG Asi
Slide 24: 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 Process Engineering Legal Counsel Chief Operating Officer Chief Financial Officer Exploration Manager • 20 years experience in • 20+ years experience in
Slide 25: Thank you. Q & A
Thank you. Q&A 25
Hastings Technology Metals — Investor Presentation (March 2019) on 6ix