Australia’s next rare earths producer Hastings Technology Metals Limited (ASX: HAS) is pleased to advise that analysts at leading stockbroking firms Ord Minnett and Canaccord Genuity have published positive research that highlights the potential of the Company’s Yangibana project, in WA’s Gascoyne region.
Ord Minett senior research analyst Dylan Kelly this week upgraded his Hastings stock recommendation from hold to speculative buy on the back of an increase in his target price assumption from 16c to 30c.
“The rare earth thematic is firing and Hastings’ strategic position warrants a rerate,” Kelly wrote in his note to clients.
“Project economics have recently improved (capex) with further upside in opex and ore sorting. We see a debt funding solution is within reach to start construction by mid-2021.
“Risks include financial close and project execution, but we find the risk/reward attractive.”
This week’s positive Ord Minnett note was followed by Canaccord Genuity also increasing its target price for Hastings.
Canaccord analyst Reg Spencer, who initiated coverage of Hastings only last month with a 25c price target, this week increased his target to 30c on the back of rising neodymium and praseodymium (NdPr) prices.
NdPr is a component in the permanent magnets used in electric vehicles, wind turbines and medical equipment.
Last month, Spencer used his Hastings initiation note to highlight the high NdPr levels in the Yangibana orebody, which he said would lead to sector-leading rare earths basket pricing.
Spencer initiated coverage with a speculative buy recommendation and a 25c price target.
“Our research suggests that Yangibana is the only greenfield, ex-China light rare earth (LREE) development project capable of achieving production by 2023 – a period when we expect supply shortfalls to appear in the NdPr market,” Spencer said in his initiation note to clients.
“In our view, this makes Hastings a clear standout in the peer group.”
Dylan Kelly’s Ord Minnett research note on Hastings and Reg Spencer’s Canaccord Genuity initiation report can be found on the Hastings website.