Hastings Technology Metals: Wyloo backs Hastings with giant rare earths JV
Hastings Technology Metals General Manager of Corporate Vince Catania on 3AW, 2GB, 4BC & 6PR Bulls N' Bears Report
Listen to ASX-listed Hastings Technology Metals General Manager of Corporate, Vince Catania talk to Matt Birney on the Bulls N’ Bears Report about the latest billionaire to get set for an expected rare earths market resurgence by slicing of a big piece of Hastings’ massive rare earths project.
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Hastings is developing the Yangibana rare earths and niobium project in WA’s Gascoyne that will become one of the worlds biggest suppliers of industrial magnet rare earths neodymium and praseodymium. In a pivotal moment, Twiggy Forrest’s privately owned Wyloo has just agreed to enter into a JV with Hastings that will see Wyloo pick up 60% of that project and manage it all the way into production.
RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears brought to you today by Hastings Technology Metals
Matt Birney - ASX code: HAS
Matt Birney - I'm Matt Birney and I'm joined now by the Corporate General Manager of Hastings, Vince Catania
Matt Birney - Hi Vince
Vince Catania - G'day Matt
Matt Birney - Hastings is developing the Yangibana rare earths and niobium project in WA’s Gascoyne that will become one of the worlds biggest suppliers of industrial magnet rare earths neodymium and praseodymium. In a pivotal moment, Twiggy Forrest’s privately owned Wyloo has just agreed to enter into a JV with Hastings that will see Wyloo pick up 60% of that project and manage it all the way into production.
Matt Birney - Okay Vince we'll get to that deal in a minute but just tell me how big is the oil reserve at Yangibana now?
Vince Catania - The oil reserve at Yangibana is almost 21 million tonnes which is enough to churn out 37,000 tonnes per annum of rare earth concentrate a year for 17 years, and about 37% of the total rare earths at Yangibana are neodymium and praseodymium and in some places up to 52% which is the among the highest ratios you'll see at any rare earths projects around the world.
Matt Birney - Okay so what's the deal with Twiggy Forest's Wyloo, how will they come to earn 60% of this project?
Vince Catania - Well a couple of years ago they lent Hastings about $150 million by the way of a exchangeable loan note to buy shares in a Canadian listed magnet company and the debt accrued with interest is now around $200 million which is becoming problematic for us to fund our flagship Yangibana project. Under the terms of this deal Wyloo will cancel that debt and we'll transfer those shares in the magnet company to them and form a 60/40 JV at Yangibana, which is great for us because Wyloo has the capacity to get the project all the way into production.
Matt Birney - Well this project is arguably the most advanced rare earths play out there because millions have already been spent on capital equipment as I understand it.
Matt Birney - Roughly how much have you spent on capital equipment and what have you got stashed away?
Vince Catania - $158 million has been spent on capital equipment such as a 294 bed camp, air strip, access roads, bore fields, pipeline, communications and a long lead infrastructure ready for deployment. We're also looking to build a hydramet plant downstream and to mine the product which we have already spent $68 million on that.
Matt Birney - Okay so roughly how much more capital is it going to take to get this thing into production and if you assume a reasonable level of debt, how much equity do you think Hastings is now going to have to put up?
Vince Catania - By bringing Wyloo in, our Hastings equity contribution could be as low as a very achievable $32 million on a 50/50 project gearing basis.
Matt Birney - Now I know this is a rare earths project predominantly but how much niobium do you have in this ore body because niobium is pretty lucrative right now right?
Vince Catania - Well niobium resource at Yangibana currently sits at 6.7 million tonnes grading at 0.23% for 15,000 tonnes of niobium pentoxide. I might add you know at $80 Australian a kilo this makes it extremely valuable in ground by-product.
Matt Birney - Vince Catania from Hastings.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information, not advice, which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears.
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