REG - Cadence Minerals PLC - Yangibana Project NPV Increases 84% to A$1bn

Cadence MineralsAnnouncement

21/02/2022 07:00

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RNS Number : 2102C  Cadence Minerals PLC  21 February 2022

Cadence Minerals Plc

 

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

 

Hastings Technology Metals (ASX: HAS) - Yangibana Project NPV8 Increases 84%
to A$1 billion (post tax).

 

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to note that Hastings
Technology Metals (ASX:HAS) ("Hastings"), Cadence's joint venture partner at
the Yangibana Rare Earth Project in the Gascoyne region of Western Australia
("Yangibana" "Yangibana Project"), has announced significant progress on, and
improved project economics for the Yangibana Project. The updated project
economics, based on a Definitive Feasibility Study (DFS) completed by Hastings
in 2017 and revised in late 2021, follows an extensive and comprehensive
review period, extending over three years, which has sought to de-risk project
execution, optimise the flowsheet and enhance project economics.

Highlights:

·      Post-tax Net Present Value8 ("NPV8") increases by 84% to $1,012
million.

·      Post-tax Internal Rate of Return ("IRR") of 26%.

·      Life of Mine pre-tax Free Operating Cashflow increases by 71% to
$4,376 million.

·      Revised capital cost estimated at A$582 million (including
contingency is $658 million)

·      Project is 'shovel-ready' following a comprehensive review and
assessment of current inflationary pressures present in Western Australia.

·      Capital payback period forecast at 2.7 years from commencement of
production.

·      Production of 3,400tpa of NdPr Oxides capable of supplying up to
8% of forecast global NdPr demand.

·      Discussions on funding options with suitable partners continue to
progress.

·      $20 million early works program to deliver the core site
infrastructure at Yangibana is well underway

Key to this process was validating the capex required to bring Yangibana into
operation considering the current inflationary environment and tightening
labour market in Western Australia.

Following this review period, the management team now have a high degree of
confidence in the quantum of capital required and are proceeding to finalise
funding arrangements for Yangibana ahead of proposed commencement of plant
construction activities forecast to commence in H2 2022. The $20 million early
works program to deliver the core site infrastructure at Yangibana is underway
with plant and personnel achieving good progress to date.

The full HAS release can be found at:

https://www.investi.com.au/api/announcements/has/000839dd-0cd.pdf
(https://www.investi.com.au/api/announcements/has/000839dd-0cd.pdf)

Relevance to Cadence Minerals Holdings in the Yangibana Project:

Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of
the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the
remaining 70% ("Hastings"). The current mining schedule indicates that the
joint venture areas are scheduled to be mined in years 12 to 15 on the mine
plan. Further details of our ownership the mineral resources and reserves on
our jointly held leases can be found at:

https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/
(https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/)

Hastings Technology Metals' Executive Chairman Charles Lew commented: "Today
is a significant milestone for the Hastings team that is the result of an
extensive amount of work carried out over a number of years. The updated
project economics tell a story of a world-class rare earths project that will
be capable not only of delivering up to 8% of global NdPr demand for a period
of at least 15 years but generate significant, long-term value for all
shareholders."

"The Hastings team has done a tremendous job since 2017 to optimise and
de-risk the Yangibana project, both technically and commercially, to make it
an even more compelling investment proposition. Since its discovery in 2014,
we were always confident in the quality of the rare earths resource endowment
at Yangibana. As it turned out, the steady progress we have made over the
years has converged with a strong global rare earths magnet market underpinned
by the global energy transition and electric mobility. As the updated project
economics demonstrate, Yangibana will be a financially and operationally
robust, long-life project."

"We are well advanced on discussions with a range of funding partners (in
addition to NAIF) and are now focused on finalising the appropriate capital
structure that best positions Hastings for success in bringing Yangibana into
production by 2024. This includes undertaking a corporate transaction or
seeking a joint venture partner(s)."

 

- Ends -

For further information:

 Cadence Minerals plc                     +44 (0) 7879 584153
 Andrew Suckling
 Kiran Morzaria

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

 Novum Securities Limited (Joint Broker)  +44 (0) 207 399 9400
 Jon Belliss

 

 

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.

 

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 Cadence Minerals
Plc'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 Cadence Minerals Plc. Although any forward-looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions. Cadence Minerals Plc cannot assure investors that
actual results will be consistent with such forward-looking statements.

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