Hastings Technology Metals Ltd

The fund managers believe Hastings Technology Metals Ltd is well-positioned to become a significant player in the global rare earths market, particularly as a key supplier outside of China. In their opinion, the company’s flagship Yangibana project in Western Australia is on track to become the next major ex-China rare earth mine, offering strategic value in a critical minerals sector increasingly shaped by geopolitical considerations. They highlight the August 2022 announcement of Hastings’ proposed acquisition of a 22% stake in Neo Performance Materials—a rare earth processor and magnet producer—as a transformative step toward building a fully integrated, mine-to-magnet supply chain. The fund managers see this vertical integration as a strategic differentiator for Hastings, enhancing its ability to capture more value across the supply chain. They also note the significance of the A$150 million cornerstone investment from Andrew Forrest’s Wyloo Metals, which they view as both a strong endorsement of the company’s long-term potential and a critical funding mechanism to advance its strategic ambitions. Overall, the fund managers believe Hastings is attractively positioned to benefit from global demand for rare earths, with substantial upside driven by its unique integration strategy and high-quality asset base.