ASX:HAS
Hastings Technology Metals Ltd
Investment Summary
The fund managers believe Hastings Technology Metals Ltd is positioned as a leader in the Australian rare earth sector, with its Yangibana mine anticipated to be a major non-China source of rare earths. In their opinion, the recent surge in share price to around A$5.18 is attributable to strong operational results and the strategic acquisition of 22% of Neo Performance Materials. They highlight that this acquisition, backed by a significant A$150 million investment from Wyloo Metals, enhances Hastings' ability to establish a fully integrated mine-to-magnet supply chain. The managers view this as a critical step in amplifying Hastings' growth potential, supporting their positive outlook on the company's future prospects.
Commentary From The Managers
L1 Capital
31 Aug 2022
$5.18
- Hastings Technology Metals has seen a strong performance, with shares increasing by 34%.
- The company is recognized as a leading Australian rare earth producer.
- Its flagship project is the Yangibana mine in Western Australia, anticipated to be a significant source of rare earths outside of China.
- In August, Hastings' shares experienced a surge due to strong results.
- They proposed a 22% strategic acquisition in Neo Performance Materials, a Canadian rare earth processor.
- This acquisition will be financed via a A$150 million investment from Wyloo Metals, linked to Andrew Forrest.
- The investment will utilize secured, redeemable, exchangeable notes.
- L1 Capital sees this acquisition as pivotal for Hastings in pursuing a fully integrated mine-to-magnet supply chain.
- The partnership with Wyloo is viewed as enhancing Hastings' potential upside.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.