Hastings Technology Metals (HAS) H2 2024 earnings summary

Executive summary

• Advanced the Yangibana Rare Earths and Niobium Project, reaching 32% construction completion and investing $154 million in infrastructure and equipment as of 30 June 2024.

• Reduced total project capital cost by $56 million to $474 million, with $319 million remaining (including $27 million contingency).

• Secured a 9.8% strategic investment from JL Mag Rare-Earth Co. and maintained a 21.5% stake in Neo Performance Materials, supporting a vertically integrated mine-to-magnet strategy.

• Strengthened offtake agreements with Thyssenkrupp and Baotou Skyrock, covering two-thirds of production for the first five years.

• Completed a $15.9 million renounceable rights issue and continued to assess multiple debt funding proposals to achieve a 60% gearing target.

Financial highlights

• Comprehensive loss for FY24 was $36.4 million, a significant improvement from $82.5 million in FY23.

• Group income was $5.6 million (FY23: $7.2 million), including $1.6 million in interest and $4.0 million in dividends.

• Expenses rose to $38.8 million (FY23: $17.7 million), mainly due to $34.7 million in finance costs and a $2.8 million impairment on relinquished tenements.

• Net assets decreased to $296.4 million (FY23: $315.2 million), with cash and cash equivalents at $17.9 million and borrowings at $168.4 million as of 30 June 2024.

• No dividends declared or paid.

Outlook and guidance

• Focus for FY25 is on securing the remaining project funding and progressing mine development and construction.

• First production of rare earth concentrate targeted for the second half of 2026.

• Market analysts forecast a recovery in rare earth prices, with anticipated supply deficits from 2026 onward.