Updated feasibility study values Hastings' Yangibana rare earths project at A$1B

An updated definitive feasibility study for Hastings Technology Metals Ltd.'s Yangibana rare earths project in Western Australia outlined a net present value of A$1.01 billion, after taxes and discounted at 8%.

The net present value increased by 84% from A$549 million estimated in a 2019 update, while the expected mine life increased to 15 years from 12 years, the company said in a Feb. 21 news release.

The internal rate of return for the proposed Yangibana mine improved to 26% from 21%, while capital costs increased to A$658 million from A$516 million, including contingency. The updated study used a price of US$112 per kilogram of neodymium-praseodymium oxide and incorporated an updated reserves estimate that was completed in July 2021.

Hastings Technology said it plans to start plant construction activities in the second half of 2022.