- Hastings Technology Metals (ASX: HAS) releases its quarterly report covering the three-month period ending on December 31, 2023
- The company’s focus was on advancing project finance initiatives and conducting engineering and design work for the beneficiation plant of its Yangibana rare earths project in WA
- As of December 31, 2023, Hastings held $42 million in cash and equivalents
- HAS last traded at 59.8 cents
Hastings Technology Metals (ASX: HAS) has released its quarterly report covering the three-month period ending December 31, 2023.
The company’s focus was on advancing project finance initiatives and conducting engineering and design work for the beneficiation plant of the Yangibana rare earths project in the Gascoyne region of Western Australia.
Yangibana project development
With overall construction progress at 31 per cent, the Yangibana project continues to advance. As of December 31, 2023, $142 million has been allocated to non-process infrastructure and long-lead equipment for the beneficiation plant.
During the period, development activities focused on progressing detailed engineering and design for the beneficiation plant, currently at 81 per cent completion.
Key commercial agreement negotiations in the quarter included the power purchase agreement for the Yangibana project’s power station.
Project funding package
Hastings received a non-binding indicative financing proposal from various entities aimed at funding the Yangibana project in line with the target gearing ratio of 60 per cent of the total funding package.
This is in addition to previously announced financing support from commercial banks and government agencies.
From this, Hastings entered into a memorandum of understanding with the Estonian Government’s investment agency to conduct a joint scoping study on downstream rare earth processing capabilities in Estonia.
This aligns with the Estonian Government’s goals to strengthen the region’s ability to supply materials for electric vehicles and renewable energy technologies.
The MOU is consistent with Hastings’ vision of establishing a fully integrated mine-to-magnet European supply chain.
Also during the quarter, Hastings maintained its industry-leading position in total recordable injury frequency rate.
Hastings published its annual Sustainability Report for 2023 during the quarter, summarising the company’s achievements over the 12 months ending on June 30, 2023.
Key highlights for 2023 include a 40.3 per cent female participation rate and zero non-compliance across Native Title, Environmental Regulation, and Corporate Governance, with no recordable injuries reported during the quarter.
The company also announced the establishment of a Green Financing Framework during the quarter, allowing for the potential issuance of Green Bonds and Green Loans, aligning with international green finance principles.
Contracts and corporate
Equipment arrivals during the quarter included the SAG Mill shell at the Port of Dampier in December 2023. To date, $22 million has been invested in procuring long-lead items for the beneficiation plant, with flotation cells, thickener, and mill liner handler currently in the fabrication process.
Hastings also secured an At-the-Market (ATM) facility in collaboration with Alpha Investment Partners (AIP). This equity financing option allowed the company to raise up to $50 million over a four-year period.
To confirm the ATM facility, Hastings issued 6.5 million shares to AIP during the quarter.
As of December 31, 2023, Hastings held $42 million in cash.
HAS last traded at 59.8 cents.