Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (September 2022)
56 slides from Hastings Technology Metals's investor presentation, Sep 6, 2022
Slide 1: Australia's Next Rare Earths Producer – Equity Raising Presentation
AUSTRALIA’S NEXT RARE EARTHS PRODUCER EQUITY RAISING PRESENTATION | 6 SEPTEMBER 2022 Begin the Future HASTINGS TECHNOLOGY METALS LIMITED | ASX : HAS | Not Hastings Technology for release Metals to US wire services or Limited distribution|inASX : HAS the United States Equity Raising Presentation, 6 S
Slide 2: Important Notices and Disclaimer
Important Notices and Disclaimer All currency amounts are in A$ unless stated otherwise. Unless otherwise defined in this notice and disclaimer, capitalised terms have the meanings given to them elsewhere in this presentation. Disclaimer This presentation has been prepared by Hastings Technology Met
Slide 3: Important Notices and Disclaimer
Important Notices and Disclaimer ASX Listing Rule 5 requirements This presentation includes estimates of mineral resources and ore reserves in relation to Hastings’ mining projects. Hastings has previously reported these estimates in the ASX announcements “Yangibana Project updated Measured and Indi
Slide 4: Important Notices and Disclaimer
Important Notices and Disclaimer Joint Lead Managers Barrenjoey Markets Pty Limited and Canaccord Genuity (Australia) Limited (together the “Joint Lead Managers”) have acted as joint lead managers and underwriters to the A$90 million underwritten portion of the Placement (excluding the Chairman’s Li
Slide 5: Investment Highlights
Investment Highlights Equity Raising Overview Hastings & Yangibana Overview Proposed Neo Strategic Investment Overview Appendix 5 | Hastings Technology Metals Limited | ASX : HAS Equity Raising Presentation, 6 September 2022
Slide 6: Australia's Next Rare Earths Producer
Australia’s Next Rare Earths Producer1 • NdPr is critical to the global energy transition - permanent magnets are key components of EV’s and wind turbines with no substitute Globally significant supplier of NdPr • NdPr market expected to be in significant supply deficit by late 2020s - Yangibana est
Slide 7: Equity Raising Overview
Investment Overview Equity Raising Overview Hastings & Yangibana Overview Proposed Neo Strategic Investment Overview Appendix 7 | Hastings Technology Metals Limited | ASX : HAS Equity Raising Presentation, 6 September 2022
Slide 8: Offer Summary
Offer Summary Hastings is conducting a placement to raise ~A$100 million and a SPP to raise up to ~A$10 million • Hastings is conducting the Offer to raise up to ~A$110 million, comprising: ― A placement to raise ~A$100 million via the issue of approximately: ― 15.2 million fully paid ordinary share
Slide 9: Sources & Uses of Funds
Sources & Uses of Funds Offer proceeds will be used to advance the development of the world-class Yangibana rare earths project which remains on track for first production in 2024 Sources & Uses of Funds Process plant capex at Yangibana and Onslow ▪ Procurement of additional equipment Sources of Fun
Slide 10: Indicative Timetable & Pro-forma Capital Structure
Indicative Timetable & Pro-forma Capital Structure Event Date Pro-forma Capital Structure1 Trading halt Monday, 5 September 2022 Record date for eligibility to participate in SPP 7:00pm AEST Monday, 5 September 2022 Shares (m) Cash (A$m) Launch of Offer and Investor Presentation Tuesday, 6 September
Slide 11: Hastings & Yangibana Overview
Investment Overview Equity Raising Overview Hastings & Yangibana Overview Proposed Neo Strategic Investment Overview Appendix 11 | Hastings Technology Metals Limited | ASX : HAS Equity Raising Presentation, 6 September 2022
Slide 12: Corporate Overview
Corporate Overview Hastings is an emerging ASX-listed company focused on the development of its Yangibana Rare Earths Project Yangibana Project Corporate snapshot (2 September 2022) ASX: HAS Downstream – Onslow Hydrometallurgical Location Broome Halls Creek Market Cap. Share price ($/s) Wheatstone L
Slide 13: Accomplished Board of Directors
Accomplished Board of Directors Jean Claude Steinmetz Bruce McFadzean Charles Lew Guy Robertson Mal Randall Neil Hackett Non Executive Director Non Executive Director Executive Chairman Finance Director Non Executive Director Non Executive Director • Joined the Board in Jul • Joined the Board in Jan
Slide 14: Experienced Senior Management Team
Experienced Senior Management Team Andrew Reid Matthew Allen Nick Holthouse Nick Bennett Narelle Marriott Lisa McGrath Valerie Quay Chief Operating Officer Chief Financial Officer GM Engineering & Project Manager Manager Process GM Environment Legal Counsel Operation Readiness Development • Appointe
Slide 15: Project Milestones
Yangibana Milestones since 2014 NOV 17 NOV 18 OCT 19 JUN 20 FEB 21 AUG 21 FEB 22 MAR 22 Native Title Skyrock Baotou EPCM Schaeffler Master $100M Earthworks NAIF board $40m agreement signed offtake contract contract signed Supply Agreement Equity Raised Construction approval Equity signed with DRA Gl
Slide 16: Strategic Purpose
Strategic Purpose We aim to be Australia’s next rare earths producer and play a vital role in supplying the world with its high grade NdPr rare earth Yangibana Rare Yangibana Hastings 2.0 Earths Project Expansion 1 Deliver Mixed Rare Earth Accelerate newly Partner with downstream Carbonate Product t
Slide 17: Yangibana Rare Earths Project
Yangibana Rare Earths Project Proven and de-risked flowsheet delivering high-value MREC product to global market Upstream - Yangibana Mine Site and Beneficiation plant Downstream – Onslow Hydrometallurgical Plant • Located in the Gascoyne Region, Western Australia • Located in the Onslow Region, Wes
Slide 18: Exceptionally high NdPr composition: Low mine grade to high metal output
Exceptionally high NdPr composition: Low mine grade to high metal output Significant NdPr metal output per tonne of MREC Simon’s Find vs Deposit A Simon’s Find vs Deposit A Simon’s Find vs Deposit A • 28 times lower head grade • 15% higher metal output Metal in Con (kgs NdPr) Mine Head Grade Benefic
Slide 19: Yangibana Project Exceeding On All Key Metrics
Yangibana Project Exceeding On All Key Metrics Low capital development cost (AUDm)1 36% LoM NdPr content2 NdPr – 90% of expected Yangibana revenues3 Concentrate Oxide Carbonate 1,678 36% 3% 4% 3% 1,056 24% 21% 848 711 16% 658 14% 501 305 90% Dubbo ASM Nolans Ashram Kvanefjeld Yangibana Ngualla Songw
Slide 20: Exceptional upside: Opportunities abound
Exceptional upside: Opportunities abound 1• Existing 27.4Mt Mineral Resource has been defined over 24km of strike length (green lines). 2• Additional exploration potential strike length of 42km identified (Orange Lines) 20 | Hastings Technology Metals Limited | ASX : HAS Equity Raising Presentation,
Slide 21: Yangibana Project Budget
Yangibana Project Budget Project is ‘shovel-ready’ following a comprehensive review and assessment of current inflationary pressures present in Western Australia Early Works Direct Capital Cost Indirect Capital Cost Total Capital Cost 2022 Capital Expenditure Update $9m Increase 2019 Capital Expendi
Slide 22: Yangibana Project – Funding
Yangibana Project – Funding Hastings continues to advance funding discussions and remains on-track to deliver first production from Yangibana in 2024 Status of Funding Discussions Near-Term Project Execution • Non-recourse project financing discussions initiated in early 2021, A$140m NAIF loan facil
Slide 23: Global Supply Deficit Approaching Reality…
Global Supply Deficit Approaching Reality… Market for NdPr will be in deficit over coming decade due to strong demand growth NdFeB Demand NdPr market imbalance Global NdFeB demand will increase 3.9x over the period 2021- Sizeable supply gap emerges in later part of this decade due to 2038 (CAGR 8.3%
Slide 24: … Set to Support Robust NdPr Prices
… Set to Support Robust NdPr Prices NdPr Oxide Price (5 years to August 2022) Indicative NdPr Price 2022 to 2038 Pr6O11 25%, Nd2O3 75% ExW China 180 USD/Kg, VAT Incl. (REAL, Dec 2021) 185 160 165 140 145 120 125 100 USD/kg 105 80 Yangibana 60 Construction 85 Period 40 65 20 45 - 2017 2018 2019 2020
Slide 25: Updated DFS Key Metrics
Updated DFS Key Metrics1 Hastings Revised issued February 2022 NPV8 (post-tax) A$1,012M Ore Reserve Mining 16.70 Mt @ 0.95% TREO and 15 year Life of Mine IRR / Payback 26% / 2.7 years 0.35% Nd2O3+Pr6O11 1.2 Mtpa ore feed Capex A$658M (incl. 13% Contingency) NdPr Oxide Price US$112/kg (average LOM) M
Slide 26: Yangibana Project – NPV Sensitivity Analysis
Yangibana Project – NPV Sensitivity Analysis Updated DFS demonstrates strong improvement in project NPV with upside/downside to key input variables being demonstrated below Foreign Exchange Rate Revised NPV Model assumption – Jan 2022 Fwd • AUD$1 :USD$0.64 A$1,106 M • AUD$1 :USD$0.75 A$728 M Capex M
Slide 27: Offtake Contracts
Offtake Contracts ~70% of production contracted for 10 yrs with strong offtake counterparties 3 1 2 Counterparty Counterparty thyssenkrupp Materials Trading GmbH (“TMT”) Baotou Sky Rock Rare Earth New Materials Schaeffler Technologies AG (“Schaeffler Co., Ltd (“Skyrock”) Tech”) Counterparty Essen, G
Slide 28: Sustainability At the Core of All We Do
Sustainability At the Core of All We Do Committed to playing a key role in the push for a more sustainable world Transparent reporting – Maiden sustainability report released • Guided by Global Reporting Initiative (GRI) Standards, including the Mining and Metals Sector Disclosure Supplement • Mater
Slide 29: Yangibana Project Targeted Milestones
Yangibana Project Targeted Milestones Project progress accelerating with early siteworks currently underway Late 2024/Early 2025 Delivery of maiden MREC volumes to key customers Mid-late 2024 Commission Early 2024 hydromet plant Complete Mid 2023 procurement and supply Complete early works and Commi
Slide 30: Proposed Neo Strategic Investment Overview
Investment Overview Equity Raising Overview Hastings & Yangibana Overview Proposed Neo Strategic Investment Overview Appendix 30 | Hastings Technology Metals Limited | ASX : HAS Equity Raising Presentation, 6 September 2022
Slide 31: Mine-to-Magnet Value Chain
Mine-to-Magnet Value Chain Hastings is focused on the delivery of the Yangibana Project. The proposed ~20% strategic investment in Neo1 provides Hastings a platform to access the full mine-to-magnet supply chain Current Focus for Current Focus for 1 2 3 4 5 6 7 Mining Beneficiation Hydrometallurgy O
Slide 32: Europe to be a Key Market for EVs
Europe to be a Key Market for EVs Europe is expected to be a major hub for the production of EVs and therefore a key source of demand for NdFeB permanent magnets European Gigafactories1 “Volkswagen’s product portfolio is focused on electric mobility. The last purely combustion-driven platform will b
Slide 33: Neo Corporate Overview
Corporate Overview - Neo manufactures advanced materials, including magnets, that incorporate rare earth and rare metal elements Corporate snapshot (30 August 2022) TSX: NEO Tier 1 Customers Market Cap. Share price ($/s) C$581m C$14.27 52-week high: C$22.85 52-week low: C$10.84 Shares on issue2 Majo
Slide 34: Business Units Overview
Business Units Overview - Neo is organised into three operating business segments (in addition to a corporate segment) which have collectively generated revenue of US$608m over the last twelve months LTM revenue: US$223m LTM revenue: US$283m LTM revenue: US$102m (revenue share 37%)1,2 (revenue share
Slide 35: Global Operating Footprint
Global Operating Footprint - Neo owns the only commercial rare earth separation and rare metals facility in Europe REE Separation • Sillamäe, Estonia • Zibo, China Neo is accelerating plans to • Jiangyin, China expand its separation plant and construct a new sintered REE Metal Production NdFeB magne
Slide 36: Historical Financial Performance
Historical Financial Performance - Neo has delivered strong growth in earnings and returned US$48m in dividends to shareholders since FY19 Q2 FY22 Commentary1 Annual Revenue (US$m)1,2 • Record revenue, net income and adjusted EBITDA for the 800 six months ended 30 June 2022 since re-emerging as a 60
Slide 37: Appendix
Investment Overview Equity Raising Overview Hastings & Yangibana Overview Proposed Neo Strategic Investment Overview Appendix 37 | Hastings Technology Metals Limited | ASX : HAS Equity Raising Presentation, 6 September 2022
Slide 38: Appendix A – Yangibana Project Additional Materials
Appendix A Yangibana Project Additional Materials | Hastings Technology Metals Limited | ASX : HAS Equity Raising Presentation, 6 September 2022
Slide 39: Mineral Resources and Reserves
Mineral Resources and Reserves Yangibana Project – Total JORC Mineral Resources (1) AS AT 30 JUNE 2021 Category Million Tonnes %TREO %Nd2O3+Pr6O11 TREO Tonnes Measured 4.9 1.01 0.38 49,442 Indicated 16.24 0.95 0.33 154,750 Sub-total 21.14 0.97 0.34 204,192 Inferred 6.27 0.99 0.31 62,225 TOTAL 27.42
Slide 40: Project Flow Sheet Extensively Tested
Project Flow Sheet Extensively Tested Yangibana: Beneficiation plant Project flow sheet • The conventional beneficiation process at Yangibana consists of crushing, XRF ore sorting, grinding, regrinding and flotation • The plant recovers a REO concentrate with an estimated grade of 27% TREO with a pr
Slide 41: Project Overview
Project Overview Operational Fly Camp supporting early construction workforce Figure 5. First blast initiated at Yangibana Figure 1. Yangibana Fly Camp Figure 2. Yangibana Fly Camp Figure 6. First blast successfully completed and ready for excavation. Figure 3. Permanent village site clearing at Yan
Slide 42: MREC Concentrate – Product Composition
MREC Concentrate – Product Composition Yangibana MREC Product Composition and Revenue split Hastings MREC Current Prices LOM NdPr RE % • Approximately 90% of Yangibana’s MREC Name composition (28 June 2022) Revenue composition Revenue concentrate revenue is high value NdPr % (USD/kg) (USDm) High val
Slide 43: Appendix B – Key Risks
Appendix B Key Risks | Hastings Technology Metals Limited | ASX : HAS Equity Raising Presentation, 6 September 2022
Slide 44: Key Risks
Key Risks Risk factors You should be aware that being issued New Shares involves various risks. This section discusses some of the key risks associated with an investment in New Shares. A number of risks and uncertainties, which are both specific to and of a more general nature, may adversely affect
Slide 45: Key Risks (continued)
Key Risks (continued) Volatility of the price of rare earth elements Hastings’ future revenue will be affected by market fluctuations in rare earth prices. This is because the product prices upon which Hastings will sell its MREC is calculated by pricing formulae that reference published pricing for
Slide 46: Key Risks (continued)
Key Risks (continued) Reliance on third party infrastructure The Group will rely on third party transportation infrastructure in order to deliver its production to the market and incoming reagents and supplies to the Yangibana project site. Any delay or failure to access or properly maintain operati
Slide 47: Key Risks (continued)
Key Risks (continued) Reserves and resource estimates No assurance can be given that the anticipated tonnages and grades of ore will be achieved during production or that the anticipated level of recovery will be realised. Mineral resource and ore reserve estimates are based upon estimates made by H
Slide 48: Key Risks (continued)
Key Risks (continued) Legislative changes, government policy and approvals Changes in government, monetary policies, taxation and other laws in Australia or internationally may impact the Group’s operations and the value of the New Shares. The Group requires government regulatory approvals for its o
Slide 49: Key Risks (continued)
Key Risks (continued) Force majeure The Group’s projects now or in the future may be adversely affected by risks outside the control of the Group, including fires, labour unrest, civil disorder, war, subversive activities or sabotage, floods, pandemics, explosions or other catastrophes, epidemics or
Slide 50: Key Risks (continued)
Key Risks (continued) Underwriting Risk Hastings has entered into an underwriting agreement with Canaccord Genuity (Australia) Limited (“Canaccord”) and Barrenjoey Markets Pty Limited (“Barrenjoey”) (together, the "Joint Lead Managers") who have agreed to fully underwrite the Placement (excluding th
Slide 51: Key Risks (continued)
Key Risks (continued) General Risks Potential for dilution A shareholder’s percentage holding in the Company will be diluted by not participating in the Placement (which will include all retail shareholders and those institutional shareholders who do not participate in the Placement). Depending on t
Slide 52: Appendix C – International Offer Jurisdictions
Appendix C International Offer Jurisdictions | Hastings Technology Metals Limited | ASX : HAS Equity Raising Presentation, 6 September 2022
Slide 53: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 54: International Offer Restrictions (continued)
International Offer Restrictions (continued) Malaysia This document may not be distributed or made available in Malaysia. No approval from, or recognition by, the Securities Commission of Malaysia has been or will be obtained in relation to any offer of New Shares. The New Shares may not be offered,
Slide 55: International Offer Restrictions (continued)
International Offer Restrictions (continued) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Ma
Slide 56: Begin the Future – Enabling Green Technologies
Begin the Future Enabling Green Technologies PERTH SINGAPORE CONTACT INFO Level 3, 5 Mill Street 10 Anson Road T: +61 8 6117 6118 Perth WA 6000 #19-02 International Plaza E: info@hastingstechmetals.com Australia Singapore 079903 W: hastingstechmetals.com
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