Yangibana Project NPV Increases 84% to A$1Billion
Perth, Feb 21, 2022 AEST (ABN Newswire) - Australia's next rare earths producer, Hastings Technology Metals Ltd (
ASX:HAS) (5AM:FRA) is pleased to announce significant progress on, and improved project economics for, its Yangibana Rare Earths Project (Yangibana), in Western Australia's Gascoyne region.
KEY HIGHLIGHTS
- Post-tax Net Present Value8 ("NPV8") increases by 84% to $1,012 million.
- Post-tax Internal Rate of Return ("IRR") of 26%.
- Life of Mine pre-tax Free Operating Cashflow increases by 71% to $4,376 million.
- Revised capital cost estimated at A$582 million (including contingency is $658 million)
- Project is 'shovel-ready' following a comprehensive review and assessment of current inflationary pressures present in Western Australia.
- Capital payback period forecast at 2.7 years from commencement of production.
- Production of 3,400tpa of NdPr Oxides capable of supplying up to 8% of forecast global NdPr demand.
- Discussions on funding options with suitable partners continue to progress.
- $20 million early works program to deliver the core site infrastructure at Yangibana is well underway
The updated project economics, based on a Definitive Feasibility Study (DFS) completed by Hastings in 2017 and revised in late 2021, follows an extensive and comprehensive review period, extending over three years, which has sought to de-risk project execution, optimise the flowsheet and enhance project economics. Key to this process was validating the capex required to bring Yangibana into operation considering the current inflationary environment and tightening labour market in Western Australia.
Following this review period, the management team now have a high degree of confidence in the quantum of capital required and are proceeding to finalise funding arrangements for Yangibana ahead of proposed commencement of plant construction activities forecast to commence in H2 2022. The $20 million early works program to deliver the core site infrastructure at Yangibana is underway with plant and personnel achieving good progress to date.
Commenting on the revised project economics, Hastings Technology Metals Executive Chairman, Charles Lew said:
"Today is a significant milestone for the Hastings team that is the result of an extensive amount of work carried out over a number of years. The updated project economics tell a story of a world-class rare earths project that will be capable not only of delivering up to 8% of global NdPr demand for a period of at least 15 years but generate significant, long-term value for all shareholders.
"The Hastings team has done a tremendous job since 2017 to optimise and de-risk the Yangibana project, both technically and commercially, to make it an even more compelling investment proposition. Since its discovery in 2014, we were always confident in the quality of the rare earths resource endowment at Yangibana. As it turned out, the steady progress we have made over the years has converged with a strong global rare earths magnet market underpinned by the global energy transition and electric mobility. As the updated project economics demonstrate, Yangibana will be a financially and operationally robust, long-life project.
"We are well advanced on discussions with a range of funding partners (in addition to NAIF) and are now focused on finalising the appropriate capital structure that best positions Hastings for success in bringing Yangibana into production by 2024. This includes undertaking a corporate transaction or seeking a joint venture partner(s)."
*To view the full release with tables and figures, please visit:
https://abnnewswire.net/lnk/152YXCR1
About Hastings Technology Metals Ltd
Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM) is advancing its Yangibana Rare Earths Project in the Upper Gascoyne Region of Western Australia towards production. The proposed beneficiation and hydro metallurgy processing plant will treat rare earths deposits, predominantly monazite, hosting high neodymium and praseodymium contents to produce a mixed rare earths carbonate that will be further refined into individual rare earth oxides at processing plants overseas.
Neodymium and praseodymium are vital components in the manufacture of permanent magnets which is used in a wide and expanding range of advanced and high-tech products including electric vehicles, wind turbines, robotics, medical applications and others. Hastings aims to become the next significant producer of neodymium and praseodymium outside of China.
Hastings holds 100% interest in the most significant deposits within the overall project, and 70% interest in additional deposits that will be developed at a later date, all held under Mining Leases. Numerous prospects have been identified warranting detailed exploration to further extend the life of the project.
Brockman Project
The Brockman deposit, near Halls Creek in Western Australia, contains JORC Indicated and Inferred Mineral Resources, estimated using the guidelines of JORC Code (2012 Edition).
The Company is also progressing a Mining Lease application over the Brockman Rare Earths and Rare Metals Project.
Hastings aims to capitalise on the strong demand for critical rare earths created by the expanding demand for new technology products.
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