Perth broker RM Research has penned a research report on Hastings Rare Metals. Here is a summary of the report.
Hastings Rare Metals (ASX:HAS) has recently published a Scoping Study that not only proves an economical mining operation and extraction scenario would be viable, but propels the Company headlong into achieving the next key milestone: the proof-of-concept stage of pilot plant testing and the completion of a feasibility study. RM Research considers that the Company has cemented its position among global peers as the most advanced Australian heavy rare earth oxide (HREO) story to follow. So read on...
It is timely to recall that it is nearly 12 months since the appointment of Technical Director Steve Mackowski (October 2011) and since that time, like an Olympian athlete, he has excelled at driving, promoting and winning recognition of HAS globally.
During Steve's maiden year, the Company has:
- appointed Mr Alastair Metcalf as CEO (May 2012)
- engaged Australia's leading REE technology specialist ANSTO (Australian Nuclear Science and Technology Organization) (March 2012)
- appointed Jacobs Engineering Group to oversee the project's development to the feasibility stage (March 2012)
- become a corporate member of REITA (Rare Earth Industry and Technology Association (March 2012)
- successfully raised A$8.38 million capital (April 2012, October 2012)
- attracted Japanese institutional investor A1 Investments (ASX: AYI) and Singapore based investors Union Overseas Bank, Kay Hian Private, and Swift Resources (April 2012)
- been invited to attend an Australian government trade mission to Europe (May 2012) specifically to meet with REE manufacturers and end-users, and been acknowledged in numerous industry forums, blogs, presentations,investment analyst research, and global press (including the Chinese press).
- Share price drivers will relate to the Hastings Project and include market updates on the progress towards the construction of a pilot plant, confirmation of technical viability at pilot plant scale, EIS approvals, the signing of a partnership for project funding, off-take MOUs or Letters of Intent (LOI) for the suite of REO products to beproduced, drilling results that increase the resource potential, and completion of the definitive feasibility study (NYSE:DFS).
Action and Recommendation
Speculative BUY. Price Target: 22 cents. (+83% upside)