Hastings Technology Metals Ltd (ASX:HAS) Forms Joint Venture with Wyloo on Yangibana Project
Strategic Highlights
Hastings Technology Metals Ltd (ASX:HAS) has entered into a 60:40 joint venture with Wyloo Metals Pty Ltd to develop the Yangibana Rare Earths and Niobium Project in Western Australia. The partnership aims to leverage Wyloo’s technical and financial capabilities to advance the multi-decade project.
Transaction Details
Under the agreement, Wyloo will manage and operate the joint venture, retaining 60% of the participating interest, while Hastings holds 40%. The transaction includes the cancellation of $220 million in exchangeable notes and the transfer of a 19.99% stake in Neo Performance Materials Inc. Wyloo is responsible for funding its share of remaining capital costs, with project financing to be raised jointly.
Project Economics
The Yangibana Project boasts a post-tax NPV of $865 million (ungeared) and an internal rate of return (IRR) of 31.28%, with a payback period of 3.4 years. The project is expected to generate $258 million in EBITDA annually and a life-of-mine free cash flow of $3.345 billion. These robust financial metrics position the project within the first quartile of global margin curves.
Project Progress
Significant infrastructure development has been completed, including a 294-room village, a 2km airstrip, and a 20km site access road. To date, $158 million has been invested in Yangibana Stage 1 and $68 million in Stage 2, achieving 33% project completion. The project is fully permitted, with all necessary state and commonwealth approvals secured.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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