Hastings Technology Metals Limited presents an excellent opportunity for investors to take part in the growth trajectory of the Company as it moves to meet the increasing global demand for rare earth resources.

The global rare earth industry has historically been dominated by China which has been taking steps to curb illegal mining activities, consolidate the domestic industry to six State Owned Enterprise (SOEs) and limit exports through required government approvals.

Hastings projects will produce magnet rare earths which are forecast to be in critical supply shortages through to 2020 – these primarily are neodymium, praseodymium and dysprosium. It will also produce europium which is used in energy efficient light bulbs.

Hastings has two major rare earth projects:

Yangibana – Currently in Pre-Feasibility Study to be completed in early 2016. Project contains JORC Indicated and Inferred Resources totalling 7.08 million tonnes at 0.85% TREO, including 0.43% Nd2O3-Eq (comprising 5.41 million tonnes at 0.88% TREO Indicated Resources and 1.67 million tonnes at 0.78% TREO in Inferred Resources).

The project will supply critical rare earths neodymium, praseodymium, and dysprosium to the growing permanent magnets market and europium to the growing phosphors (LED lighting) market.

Brockman – The seventh largest heavy rare earths resource in the world. The Brockman project contains JORC Indicated and Inferred Resources totalling 36.2 million tonnes at 0.21% TREO, including 0.18% HREO, plus 0.89% Zirconium Oxide (ZrO) and 0.35% Niobium (NbO).

Hastings market capitalisation of $30.7 million (September 2015) has yet to reflect the exceptional progress the Company made in 2014 and 2015 in accelerating the Yangibana project, a reduced risk profile in its two projects and the opportunity for share price growth relative to its peers.

Markets and Demand Forecasts

The global demand for products containing rare earths continues to rise each year as more and more innovative uses are discovered.  Products such as a wide range of electronic devices (rechargeable batteries, computer memory, cell phones, DVDs and many others), magnets, instruments, pollution control catalysts and military equipment all utilise rare earths to various extents.  While China continues to dominate production and restrict exports there is an immediate but also a long term requirement for production of rare earths from outside of China, often seen as a “second source” supply.

Potential markets in which Hastings look to supply to occur in Japan, South Korea, Europe and the United States of America. Hastings will explore the numerous options available to it to sell rare earth products into these markets. During its Pre-Feasibility Study, Hastings will evaluate the options to simply sell a beneficiated concentrate, or to produce a mixed rare earths carbonate or oxylate, or to produce separated rare earths oxides.

If wind turbines and electric vehicles are going to fulfill the role environmental planners have assigned them in reducing emissions of carbon dioxide, using current technologies would require an increase in the supply of neodymium and dysprosium of more than 700% and 2,600% respectively during the next 25 years. At the moment, the supply of these metals is increasing by 6% a year.” [1]

[1] Environmental Science & Technology, February 2012.

Following on from what was said in 2012 by Environmental Science & Technology, a report from Adamas shows a demand exceeding supply will begin in the near foreseeable future.  With the government of China restricting exports of rare earths in order to meet its own needs, other sources are likely to be needed to be brought on-stream quickly as the following graphs of the same RE Oxide illustrates:

Forecasted Supply-Demand Balance of Neodymium Oxide from 2014 through 2020

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Forecasted Supply-Demand Balance of Dysprosium Oxide from 2014 through 2020

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Source: Adamas Intel REMO, October 2014