For those interested in Heavy Rare Earths, an run down of HAS structure and operations.
Ordinary Shares 125.26 million
Unlisted Options 15m at 40 cents
Unlisted Options 37m at 25 cents
Unlisted Options 20.6m at 15 cents
Cash at hand (12 April 2012) A$4 million approx.
Top 20 59%
Singapore investment funds 12%
Japanese REE fund 6.4%
Hastings Rare Metals Limited (HAS) has two Rare Earth Projects in WA, both recognised by GeoScience Australia as key REO deposits. Both deposits remain open at depth and along strike.
Hastings Project 100%
Hastings Project (WA) is Australia’s largest Heavy Rare Earth project, and includes significant Dysprosium and Yttrium, with Niobium and Zirconium by products.
2011 drilling defined JORC-compliant Indicated and Inferred Resources totalling:
36.2 million tonnes @ 2102ppm (0.21%) Total Rare Earth Oxides (TREO) including 85% Heavy Rare Earth Oxides
3546ppm (0.35%) Nb₂O₅
8913ppm (0.89%) ZrO₂
Over $10m previously spent on the project
Historical metallurgical results from pilot plant tests show recoveries of around 75% for Dysprosium and Yttrium, 80% for Niobium and Zirconium
Metallurgical test work is ongoing on samples prepared from the 2011 drilling programme
Yangibana Project 60%
Yangibana Project (WA) (206 sq. km under Exploration Licences) average grades of circa all 1.7%-2.0% TREO with high proportion of Neodymium (24%)
HAS leads the way in valuable REE mix with HREE (Dysprosium and Yttrium) at Hastings and LREE (Neodymium) at Yangibana. These are classified as “critical” rare earths by the US Department of Energy (December 2010)
Dysprosium has been highlighted as being among the highest priority and most critical strategic metals now
consumed world-wide for high technology, clean energy applications and military. The December 2010 report by the US Department of Energy named dysprosium as the single most critically threatened strategic metal
to the United States. This situation has also been recognised in Europe and Asia.
Yttrium The most important use of yttrium is in making phosphors, such as the red ones used in television and
tablet displays and in LEDs. Other uses include the production of electrodes, electrolytes, electric filters, lasers
Neodymium oxide is widely considered one of the three rare earth oxides with critical supply shortages looming in the high performance magnet industry.
Also at Hastings
Niobium and tantalum commonly occur in the associated minerals columbite (Fe,Mn)Nb2O5 and tantalite
(Fe,Mn)Ta2O5. Main source of niobium however is pyrochlore NaCaNb2O6F. Niobium is an important alloying
element in steels and Fe-Ni-Co based superalloys. Lesser use in diverse areas such as camera lenses and
coating of glass for computer screens.
Zirconium occurs predominantly as the silicate mineral zircon ZrO2. Used mostly in ceramics, foundry
applications, opacifiers and refractories. Main growth areas are advanced ceramics and auto-exhaust catalysts.
Significant use in nuclear energy industry in fuel rods and reactor vessel construction.
Tantalum occurs in wide range of minerals but any tantalum-bearing concentrate is commonly termed tantalite.
Highly corrosion resistant and refractory. Used in cutting tools, mobile phones, high temperature alloys and
furnace parts to computer hard drive discs.
Hastings project includes significant resources of Dysprosium and Yttrium while Yangibana contains
Neodymium, three of the critical rare earths (CREO).
The Hastings project mineralisation contains 85% HREO to TREO the highest percentage of all advanced exploration projects
Hastings Project Path Forward and significant milestones
Validation and Verification of previous metallurgy (Mid Year)
Scoping Study to confirm economics
Define Southern Extension Opportunity
Optimisation of product suite (End of Year)
Pre-feasibility study (Early 2013)
Pilot plant (Early 2013)
Bankable Feasibility study (End of 2013)
Advantages of Hastings Project
Indicated JORC resource of >30 years operations at 1m tonnes per annum – potential to expand and to double outputs
4th largest HREO Project in the world, largest in Australia
85% Heavy Rare Earths as a percentage of TREO
Historic pilot plant operation for the critical initial extraction circuit
Experienced team of management, process developers and project engineers in place
Schedule savings in Exploration and Metallurgy Development are significant compared to other potential HREO developers (4-5 years).
Found this in HAS' June quarterly, which I had not noticed before.
European Trade Mission
During the quarter the Company took part in a European trade mission which included sessions with representatives of major German industries. This initiative is part of the Company’s objective of identifying and meeting major users of heavy rare earth projects in all continents with a view to developing strategic relationships.
● China’s Ministry for Industry and Information Technology announces a new standard limiting rare earths mining and processing
● Closures of more than one third of rare earths mines and up to half of China’s smelters and extracting enterprises expected
The Chinese central government has announced a new standard designed to optimise production of rare earths, slow depletion of the country’s reserves, and reduce the impact of rare earths mining and processing on the environment. The new standard announced this week will encourage development of rare earths projects outside China to meet the looming shortfall of world supply.
The Hastings project in northern Western Australia is the largest heavy rare earths project in Australia and the world’s fourth largest. Its main output will be the heavy rare earths dysprosium and yttrium, both nominated by the US Department of Energy in 2010 as “critical”. The Hastings project is expected to have a mine life capacity exceeding 25 years.
China possesses less than 25% of the world’s rare earths reserves, but accounts for over 90% of production. Rare earths are critical to the making of high-technology and low-emission manufactured goods such as hybrid vehicles, wind turbines, smart phones, wireless devices, cordless electrical tools and flat screen televisions. The benefits include reduced weight, greater efficiency and lower energy consumption.
The new standard is expected to reduce the 23 rare earths mines in China by more than a third and the 99 smelting and extracting enterprises by up to one half. It also imposes for the first time minimum production levels on those surviving enterprises, of 20,000 tonnes per year for mines and 2,000 tonnes a year for smelters.
An official from the Ministry for Industry and Information Technology, Mr Yinsong, is quoted in the China.org.cn website saying that, “besides weeding out sub-standard companies, the merger and recombination of rare earth enterprises within the industry will continue.” Lin Boqiang, director of the China Energy Research Centre at Xiamen University, told China.org.cn that the government was “more likely to support three or four domestic rare earths enterprises so they can control the international market price in the future”. Rare earths metals have typically traded in China at prices below international prices.
Alastair Metcalf, the CEO of Hastings Rare Metals, which is developing the largest heavy rare earths project in Australia in northern Western Australia, said, “China has limited reserves of rare earths. The actions it is taking to address its challenges can only reduce the supply of rare earths to world markets. Major manufacturers are right to be concerned about the supply of heavy rare earths. The Hastings resource is one of very few projects that can provide a secure supply of heavy rare earths for over 25 years.”
It has been widely reported that over the past two years that China is moving to restrict output and exports of rare earths and recently began stockpiling. Early this year, the US, Japan and European nations started proceedings in the World Trade Organisation against China claiming it was in breach of its free trade commitments.
In June, the Chinese government published a White Paper which outlined moves to optimise its rare earths reserves and slow their depletion. These included moratoriums on the issue of new exploration and mining licences and prohibiting existing mines lifting their output. The new standards announced this week continue the trend of consolidating the Chinese rare earths industry and are beneficial to Hastings Rare Metals.
"Benefits of rare earths – Rare earths can be equated to the vitamins of
modern manufacturing. They create disproportionately large benefits
in the end product. The major benefits include reduced weight,
greater efficiency and lower energy consumption. They allow
enhanced efficiency, performance, speed, miniaturisation, durability
and thermal stability. They are essential to the manufacture of high
technology applications where there is a constant search for greater
efficiency and performance."
SCOPING STUDY CONFIRMS STRONG BUSINESS CASE FOR HASTINGS HEAVY RARE EARTHS PROJECT
• Compelling economics with a base case net present value (‘NPV’) of A$1.9 billion, an IRR of 26% and payback of 3.6 years for the 100% owned Hastings Project
• Earnings of $223 million per annum represent a gross operating profit margin of 46%
• Revenue is predominantly heavy rare earths, differentiating the project from others
• Hastings Project to advance to piloting and feasibility study
Based on the Scoping Study and detailed work completed by the Company and its consultants over the last six months, the Company is now able to confirm:
• The resource at the Hastings Project can be mined by conventional open-cut methods
• The mine life would be 25 years based on the existing Resources of 36.2 million tonnes. With further drilling, the Resource could be increased
• Ore will be processed through a plant built on-site in Western Australia, without the need to transport intermediate products interstate or overseas
• The flow sheet has been confirmed, with metallurgical recoveries of 75% for rare earths and 70% to 75% for rare metals
• The project is to produce over 10,000 tonnes of rare earths oxides and rare metal oxides annually for 25 years. The saleable products will be high purity oxides that are significantly more valuable than rare earth carbonates or concentrates
• The strong demand and supply shortage projected for heavy rare earths is highly opportune for the Project. Heavy rare earths, such as Dysprosium and Yttrium that are both on the US Department of Energy’s ‘critical’ list, represent the majority of the projected revenue
• The project has a base case net present value (‘NPV’) of A$1.9 billion, with substantial upside. For example, using price forecasts from BCC Research, including Dysprosium at US$2,170/kg (currently US$950/kg), would more than triple the NPV of the Project
• The Scoping Study has successfully reduced the risks and identified options to further optimise the project.
HASTINGS HEAVY RARE EARTHS PROJECT Project
Hastings Project, Western Australia, 100% owned by Hastings Rare Metals (ASX Code HAS) Processing
1 million tonnes per annum, with upside to 1.5mtpa Recoveries
75% for Dysprosium, Yttrium and Niobium, 70% for Zirconium Average Annual Production
• 140 tonnes of Dysprosium oxide
• 830 tonnes of Yttrium oxide
• 590 tonnes of a mixed rare earths oxide
• 2,630 tonnes of Niobium oxide
• 6,170 tonnes of Zirconium oxide Mine Life
25 years from existing Resources Prices
August 2012 China FOB prices for Dysprosium, Yttrium, Niobium and Zirconium.
2.5% p.a. price increase for Dysprosium and Yttrium due to forecast strong demand and supply shortage Exchange rate
A$ deflating to 85c by 2016 Capital cost
$720 million plus $96 million contingency Earnings
Revenue of $482 million, operating costs of up to $259 million, generating EBITDA of $223 million Net present value
$1.9 billion (pre-tax, 100% equity, 8% discount rate, real terms) Internal rate of return
HAS looks to have formed a pretty solid base at 14c and has just recently started to make
On Tuesday the company announced that it has signed an offtake MOU with SchaefflerAG, a global automotive and industrial supplier of high-precision components and systems in engine, transmission, and chassis applications, as well as rolling and plain bearing solutions for a large number of industrial applications, primarily focussed on the automotive industry.
Under the MOU the parties have outlined their intent to enter into a binding commercial offtake agreement within the next 6 months for the sale and purchase of Mixed Rare Earth Carbonate (MREC), which will be produced from Yangibana, Western Australia.
Any commercial offtake contract is contingent on Hastings starting operations and production of MREC from the Yangibana mine which is targeted to commence in 2H 2021. Hastings planned annual production capacity is 15,000 tonnes of MREC, which it will sell to offtake partners as well as on the spot market.
HAS recently completed a placement of 71,386,635 shares at $17c per share by way of institutional placement to raise $12,135,728. The proceeds of the placement were used to continue construction of the 380 room accommodation village at Yangibana, early infrastructure earth works on the mine site and progress payments for long lead time equipment currently on order, namely the rotary kiln and off-gas scrubber with the remainder used as working capital.
These recent events seems to have spurred on the HAS share price and in the last couple of weeks it has climbed back to a high of 19c, although it is currently trading at 17.5c. I think the bottom is in for Hastings and the Rare Earth connection is giving it some momentum.
One to watch for those following Rare Earth related companies.
I missed you guys commentary on this one … too many Stocks to watch
Chart has worked quickly off the recent lows and a lot of capital was successfully raised at 17 cents … positive signs …. Accumulation on any retracements could prove financially rewarding I suspect … I need a bigger trading account
Reading Greggles post #11, I wonder if they will have enough capital to commence extraction and processing?
From Hawks posted pdf:
They need to construct open pit mine, ground water abstraction, onsite processing plant, tailings storage, access and haulage roads, accommodation and administration buildings and an airstrip.
That will take some serious money. https://hastingstechmetals.com/investor-relations/announcements/
was selected on the 18th by my daily at 7.3c and was supposed to be bought by one weekly system on Monday but got into trading halt, so far nearly 60pc increase in 2 weeks so crossing finger will carry on