REG - Cadence Minerals PLC - Corporate Update - Hastings Technology Metals

Cadence MineralsAnnouncement

31/05/2023 13:00

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RNS Number : 2023B  Cadence Minerals PLC  31 May 2023

Cadence Minerals Plc

 

("Cadence Minerals", "Cadence", or "the Company")

 

Corporate Update - Hastings Technology Metals

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the
announcement by Hastings Technology Metals (ASX: HAS) ("Hastings") that it has
introduced a staged development strategy to reduce delivery risk and enable
faster pathway to cash flow for the Yangibana Rare Earths Project.

 

Highlights:

 

·      Results of the project capital and delivery model review support
a staged development strategy for the Yangibana Rare Earths Project

·      This strategy will reduce upfront capital requirements and
project execution risks as well as providing a faster pathway to cash flow by
Q1 2025

·      Initial focus will be on construction of the Yangibana mine and
beneficiation plant to produce rare earths concentrate (Stage 1), followed by
development of a hydrometallurgical plant to produce mixed rare earth
carbonate (Stage 2)

·      Total project capital cost is now estimated at $948m, with the
Stage 1 component being $470m (a 40% increase to the estimate from 2020/21)

·      Fixed price contracting model aims to minimise risk of further
capital cost increases, demonstrated by the recent arrangement with GR
Engineering for construction of the beneficiation plant

·      Beneficiation plant construction to commence in Q3 CY2023,
supporting Stage 1 concentrate delivery target date of Q1 CY2025

·      Concentrate offtake discussions underway with rare earth oxides
producers in Australia and offshore with a view to concluding firm contracts
prior to drawdown of project finance debt in early 2024

·      Potential for strong Stage 1 financial returns with post-tax
NPV11 of $538m, an IRR of 27.54% and average annual EBITDA of $174m providing
a funding source for Stage 2.

 

Link here
(https://investi.com.au/api/announcements/has/befee282-f7d.pdf?utm_source=Hastings+Tech+Metals+Email+List&utm_campaign=6e000ccdff-EMAIL_CAMPAIGN_2023_05_31_12_52&utm_medium=email&utm_term=0_8af61533ee-6e000ccdff-%5BLIST_EMAIL_ID%5D)
to view the full Hastings announcement

 

Hastings Executive Chairman Charles Lew commented: "The Yangibana Rare Earths
Project is one of the world's most advanced greenfield rare earth projects and
is well-timed to meet the forecast supply gap for magnet rare earth elements
which are required to support the global transition to clean energy. A
comprehensive project review undertaken by our new experienced management team
has confirmed that this world-class project remains financially and
operationally robust, with the investment in a Stage 1 mining and
beneficiation plant being a compelling proposition. The implementation of a
two-stage development strategy for Yangibana will lower the upfront capital
funding requirements, reduce the project execution risk and enable a faster
pathway to early project cash flows which can be used to fund Stage 2 plant
construction."

 

Cadence CEO Kiran Morzaria, commented: "The Cadence board remain enthusiastic
shareholders and supporters of Hastings Technology Metals and the Yangibana
Rare Earths project. We are pleased to see the project risks further reduced
by the introduction of a two stage investment strategy, and we are excited by
the prospects for commencement of the beneficiation plant construction within
the next few months. I look forward to providing further updates."

 

Cadence shareholding in Hastings

 

On 25 January 2023, Cadence completed the sale of its 30% stake in several
mineral concessions forming part of the Yangibana Rare Earths project for a
consideration of 2.45 million Hastings shares, equating to approximately 1.9%
Hastings issued share capital. This consideration was a premium over the Net
Present Value ("NPV") of the Cadence portion of the mineable material, based
on the definitive feasibility ("DFS") updated by Hastings on 21 February 2022.

 

The full announcement concerning the Yangibana sale is available here
(http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428231137425921)
.

 

 For further information contact:

 Cadence Minerals plc                                           +44 (0) 20 3582 6636
 Andrew Suckling
 Kiran Morzaria

 WH Ireland Limited (NOMAD & Broker)                            +44 (0) 207 220 1666
 James Joyce
 Darshan Patel

 Enzo Aliaj

 Brand Communications                                           +44 (0) 7976 431608
 Public & Investor Relations
 Alan Green

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information
contained in this announcement. Kiran holds a Bachelor of Engineering
(Industrial Geology) from the Camborne School of Mines and an MBA (Finance)
from CASS Business School.

 

Cautionary and Forward-Looking Statements

Certain statements in this announcement are or may be deemed to be
forward-looking statements. Forward-looking statements are identified by
their use of terms and phrases such as "believe", "could", "should",
"envisage", "estimate", "intend", "may", "plan", "will", or the negative of
those variations or comparable expressions including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the company's future growth results of operations performance,
future capital, and other expenditures (including the amount, nature, and
sources of funding thereof) competitive advantages business prospects and
opportunities. Such forward-looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors.  Many factors could cause actual results to differ materially
from the results discussed in the forward-looking statements, including risks
associated with vulnerability to general economic and business conditions,
competition, environmental and other regulatory changes actions by
governmental authorities, the availability of capital markets reliance on key
personnel uninsured and underinsured losses and other factors many of which
are beyond the control of the company. Although any forward-looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions. The company cannot assure investors that actual
results will be consistent with such forward-looking statements.

 

The information contained within this announcement is deemed by the company to
constitute Inside Information as stipulated under the Market Abuse Regulation
(E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European
Union (Withdrawal) Act 2018, as amended. Upon the publication of this
announcement via a regulatory information service, this information is
considered to be in the public domain.

 

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