HAS - Hastings Technology Metals

[Dona Ferentes]

bring out good news (CAPEX reduction)
Investor Presentation
SP uplift
Trading Halt ....
Capital Raising
(you know the story)

 

[Dona Ferentes]

• Hastings has received firm commitments to raise $14.6 million (before costs) at $0.125 per share.
• An additional $3.1 million to be raised via a Conditional Placement and a further $3.0 million to be raised from a fully underwritten Share Purchase Plan.
• Strong interest received from existing shareholders and new institutional and sophisticated investors resulted in a significantly over subscribed Placement.
• Funds will be used to advance the company’s flagship Yangibana Project

 

[Garpal Gumnut]

• Hastings has received firm commitments to raise $14.6 million (before costs) at $0.125 per share.
• An additional $3.1 million to be raised via a Conditional Placement and a further $3.0 million to be raised from a fully underwritten Share Purchase Plan.
• Strong interest received from existing shareholders and new institutional and sophisticated investors resulted in a significantly over subscribed Placement.
• Funds will be used to advance the company’s flagship Yangibana Project

HAS is in a bit of a trading range.
gg

 

[Dona Ferentes]

RAREing to go ... but has been for a while!
- up over the last few days like most of them

Australia’s Next Rare Earth Producer

Up to 52% NdPr:TREO, highest amongst peers
Low Capex –A$449M; Production 15,000tpa MREC; equivalent to 3,400tpa NdPr oxides after separation
13 years mine life (New resource estimation due in Q1 2021)
World leading Beneficiation upgrading of up to 25x mine grade
Strong Economics; NPV 2019: $549M, IRR 21% ; Payback 3.4 yrs (revision due Q1 2021)
Perfectly timed to benefit from global NdPr demand growth: 6% CAGR 2020 -20

 

[greggles]

Interesting stock this one. It has doubled in price in the last six months and appears to be consolidating in the 21c-23c range. Volume is high so buyers are currently absorbing all the selling. When the sellers back off, are we up for a share price spike north?

No price sensitive announcements since November. Director Foon Keong (Charles) Lew bought 4 million shares on 1 December for 12.5c a share.

Looks like some news is due soon. One for the watchlist.

 

[Dona Ferentes]

Quite a few claiming to be the Next RE producer, by whichever path. Selected excerpts from most recent Investor Presentations:

HAS: 30/11/20

Next RE producer (non-China) coming to production by 2023; construction targeted to start Q2 2021

ARU: 09/12/20

Only Australian NdPr focused project that is shovel ready. Construction ... 6 mths; Commission & Ramp-up ... 24 months

VML: 26/11/20

Operations commencing 2021; Aim for the production of a minimum of 5,000t contained REO by 2025

PM8: 01/10/20

..bankable feasibility study for Longonjo, alongside a final investment decision the roll out of the mine development plan and main financing of the Project is well on track for the development of the first major rare earth mine in over a decade.

ASM: 09/01/21

Construction of Dubbo Project - mid 2012; Commissioning late 2023

PEK: 01/12/20

Solid framework agreement will allow Export Credit Finance to be developed over the coming year, and then construction/start up over next 2 Years.

REE; 09/12/20

Strategy is to produce a saleable monazite concentrate to sell on an FOB / CIF basis to China ( undefined timeline)

 

[wabullfrog]

Hastings has signed an offtake agreement with Thyssenkrupp. They already had signed a Master Agreement with Schaeffler in June 2020.

 

[Dona Ferentes]

a big boost to Hastings’ hopes of getting its $449 million Yangibana project off the ground.

- now capital needs to be raised

 

[peter2]

Since April 21 the price of HAS has been rising slowly. Bought some today on spec (gutfeel) as I notice that many other rare earth stocks (ARR, ARU, IXR, PEK, REE, VML) are rallying higher quite strongly. HAS may catch up soon.

 

[Dona Ferentes]

HASTINGS RAISES A$40 MILLION IN STRATEGIC PLACEMENT

Key Highlights:
• Share placement to Melbourne based L1 Capital, the Company’s largest shareholder
• L1 Capital has been a long-term investor in the rare earths and battery minerals sectors with a track record of successful investment in natural resources
• L1 Capital’s shareholding increased to 15.15% of enlarged capital base following the Placement
• Placement proceeds will be used to accelerate key workstreams, long lead equipment order and mine site works
• Hastings will have a cash balance of $131 million upon settlement of the Placement
__________________________________________________
price of $0.25 per share, representing a 5.7% discount to the last traded price.Also, a 1 for 2 free-attaching unlisted option with an exercise price of $0.325 and an expiry date two years from the date of issue.

As outlined in our recent updated project economics announcement, we are well advanced in discussions with a range of funding partners in finalising the appropriate capital structure that best positions the Company for bringing Yangibana into production by 2024.

 

[Dona Ferentes]

cleaning up the structure of ownership.

• Hastings to acquire Cadence Minerals Plc 30% interest in Yangibana JV tenements for A$9 million to be satisfied by the issue of fully paid ordinary Hastings shares.
• Following the acquisition Hastings will have 100% interest across the entire Yangibana rare earth tenement package.
• Acquisition includes 2.34Mt of Mineral Resources and 0.73Mt of Ore Reserves.
• Acquisition adds one year of production to the Yangibana rare earth project, increasing the life of mine to 16 years

 

[JohnDe]

Australia’s next rare earths producer Hastings Technology Metals Ltd (ASX: HAS) (Hastings or the Company) is pleased to announce that it has received significant interest from a number of different parties both in terms of debt and strategic equity (Strategic Financing).

• Hastings is looking to leverage its high grade NdPr project for exposure into downstream rare earths processing activities in Europe.
• Commenced early-stage discussions on partnerships with companies establishing facilities in Europe around rare earth oxides separation and feeding into magnet manufacturing operations emerging in Europe.
• Hastings’ European centric strategy and existing agreements with Schaeffler and thyssenkrupp and other commercial prospects have positioned the company to be a reliable long-term source of supply of rare earth feedstock to the European permanent magnets industry
• Multiple parties have expressed interest in advancing discussions in relation to debt and equity finance.

https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02538034-5Q30CL3O24K7DUU8J7D0TQ76OO/pdf?access_token=0007zOj7XJYdhnN5MA9HePCNJ3Iy

 

[JohnDe]

Interesting times ahead -

https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02559180-1AKLQ78M10D8LMRFBNJEMC1ADC/pdf?access_token=00071QuzDTBnsMMcGSgxDcgAd1WU

 

[Dona Ferentes]

And Andrew Forrest at it again, via his Private Company Wyloo

Agreement to acquire strategic shareholding in Neo Performance Materials and cornerstone investment in Hastings by Wyloo Metals

Highlights

• Hastings to acquire a 22.1% strategic shareholding in Neo Performance Materials Inc., a leading global rare earth processing and advanced permanent magnets producer listed on the TSX.
• The acquisition is intended to be funded by a A$150 million cornerstone investment in Hastings by Wyloo Metals, through the issuance of secured, redeemable, exchangeable notes.
• The proposed acquisition provides Hastings with a strategic stake in Neo and exposure to the global downstream processing of rare earth materials into magnets.

Neo is a leading producer of NdFeB magnets and rare earth materials globally, uniquely positioned as the owner of the only operating commercial rare earth separation and rare metals facility in Europe

 

[Dona Ferentes]

TH ... necessary as the Company is in the process of a book build in relation to a capital raising.

 

[chuckyball]

TH ... necessary as the Company is in the process of a book build in relation to a capital raising.

I would have thought Hastings near neighbours Dreadnought Resources would have done better today releasing some more good drilling results but currently down 10%. LNR not much better...

 

[Dona Ferentes]

Placement to Accelerate Development of the Yangibana Rare Earths Project

Highlights
• Firm commitments received for a A$110 million two-tranche Placement. Tranche 1 of the Placement raised A$67 million and tranche two of the Placement, which is subject to shareholder approval, is set to raise A$43 million.
• Strong demand received from high-quality Australian and international institutional investors, and existing shareholders, providing a strong endorsement for the Yangibana Rare Earths Project and Hastings’ development pathway.
• SPP for all eligible existing shareholders to raise up to A$10 million (before costs) to open on Wednesday, 14 September 2022 at the same price as the Placement (A$4.40 per share).

 

[JohnDe]

Placement to Accelerate Development of the Yangibana Rare Earths Project

Highlights
• Firm commitments received for a A$110 million two-tranche Placement. Tranche 1 of the Placement raised A$67 million and tranche two of the Placement, which is subject to shareholder approval, is set to raise A$43 million.
• Strong demand received from high-quality Australian and international institutional investors, and existing shareholders, providing a strong endorsement for the Yangibana Rare Earths Project and Hastings’ development pathway.
• SPP for all eligible existing shareholders to raise up to A$10 million (before costs) to open on Wednesday, 14 September 2022 at the same price as the Placement (A$4.40 per share).

The market didn't like it.

 

[peter2]

I wouldn't assume that yet. The market has merely removed the premium in the SPP (price 4.40). The real test starts now. Can they raise capital when there's little to no premium? The insto money is committed while the retail amount is only one tenth the amount of the instos. Most retail short falls are taken up by instos any way.

The spp should provide support for the price until the offer has ended. Once the offer ends the market will indicate what it thinks of the proposal in the market conditions at the time.

HAS and it's project development are worth monitoring for a more timely trade opportunity.

 

[peter2]

Since that cap raise, price didn't find any support at the SPP price of 4.40 and fell to 3.30. Price traded in a range for a few months and it looked like it had found a bottom with occasional spikes higher. They didn't last and price has now fallen much lower. HAS goes into my reversal watch list but it going to be a while to form a bullish buy set up for me. [HAS-been?]