Barrenjoey cuts rating, PT on Australia's Hastings on 'uneconomic' Yangibana project

Hastings Technology Metals

19/06/2023 01:38

** Barrenjoey cuts rating on Australia's Hastings Technology
Metals to "neutral" from "overweight" and lowers price target to
A$1.10 from A$3.50
    ** Brokerage says escalation of capex and opex in the latest
study update suggests that Hastings' Yangibana project is
"uneconomic" at Barrenjoey's long-term Neodymium and
Praseodymium (NdPr) price estimate of $85 per kg
    ** Brokerage estimates a price of above $100 per kg for NdPr
is needed to generate a reasonable >15% return on capital from
Yangibana project
    ** For Hastings to be successful in its endeavors, we think
a two-tiered pricing system (for rare-earths minerals) may need
to evolve, with a premium entrenched for non-China supply -
Barrenjoey
    ** Brokerage, however, does not see enough evidence at this
time to be confident a two-tiered pricing system will evolve
    ** One of three analysts rate the stock "buy" or higher, two
"hold"; their median PT is A$1.50 – Refinitiv data

    
    

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))