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- After an extensive review and revised definitive feasibility study, Hastings Technology Metals (HAS) announces improved economics for its Yangibana rare earths project in WA
- Improved return metrics include an 84 per cent increase in post-tax net present value to $1 billion, internal rate of return of 26 per cent and EBITDA increasing to $295 million
- Operating life has increased from 12 to 15 years and capital cost (including contingency) has increased to $658 million with the initial $20 million early works program underway
- Hastings is advancing funding discussions and hopes to bring the Yangibana project into production by 2024 to meet the global demand for rare earths
- HAS shares have dropped 8.47 per cent to 27 cents
Hastings Technology Metals (HAS) has announced improved economics for its Yangibana rare earths project in Western Australia’s Gascoyne region.
According to the company, the stand-out improvement was an 84 per cent increase in post-tax net present value to just over $1 billion.
Additional return metrics included a post-tax internal rate of return of 26 per cent and annual earnings before interest, tax, depreciation and amortisation of $295 million.
While the production rate of 15,000 tonnes of mixed rare earth carbonate per annum, containing 3400 tpa of neodymium and praseodymium (NdPr) oxides, has remained the same the operating life has increased from 12 to 15 years.
Hastings said the 3400tpa of NdPr oxides is capable of supplying up to 8 per cent of the forecast global NdPr demand.
The operating life extension is based on the updated ore reserve of 16.7 million tonnes at 0.95 per cent total rare earth oxides.
Additionally, life of mine pre-tax free operating cashflow increased by 71 per cent to roughly $4.4 billion.
The capital cost was also updated to $658 million (including contingency) which will cover early infrastructure, plant and supporting infrastructure, services, construction facilities and owner’s cost.
The updated and improved project economics are based on a revised version of a definitive feasibility study (DFS) and follows a comprehensive review process to validate the required capital expenditure to bring Yangibana into operation.
Hastings is now confident in the figures and will proceed to finalise funding arrangements for Yangibana ahead of plant construction activities expected to commence in the second half of this year.
Executive Chair Charles Lew said today was a “significant milestone” for the company after an extensive amount of work.
“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 per cent of global neodymium and praseodymium demand for a period of at least 15 years but generate significant, long-term value for all shareholders,” he said.
“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’ve made over the years has converged with a strong global rare earths magnet market underpinned by the global energy transition and electric mobility.”
Hastings Technology Metals is in advanced discussions with funding partners and the Northern Australia Infrastructure Facility (NAIF) to finalise funding arrangements to help bring the Yangibana project into production by 2024.
For now, the $20 million early works program to deliver core site infrastructure is underway and plant construction is on track to begin later this year.
HAS shares dropped 8.47 per cent to 27 cents at 2:15 pm AEDT.
