IperionX shares fall despite US critical minerals growth projection
Make us a preferred source
Make us a preferred source on Google
More news: Shares in IperionX slumped in afternoon trade despite the critical minerals developer projecting an after-tax net present value of $1.14 billion for its Titan Project, following an initial engineering study supported by US government funding.
Shares fell 3.29% to $5.72 at 1:34pm AEST.
IperionX to deliver over $1b value from US rare earths project
The news: IperionX’s Titan Critical Minerals Project is projected to deliver an after tax net present value of USD813 million ($1.14 billion) and USD1.9 billion in total cashflow over a 14-year life of mine, following a definitive feasibility study (DFS) funded by the US government.
The numbers: The DFS projects an average life-of-mine EBTDA of USD2.8 billion over an initial 14 year mine plan.
The project is estimated to incur an initial development capital cost of USD381.3 million.
The context: The project is designed to produce heavy rare earths alongside titanium minerals and zircon, with output materials used in defence, aerospace, advanced manufacturing and electronics supply chains in the US.
The ongoing DFS evaluates an initial 14-year mine plan, which will focus on proved and probable ore reserves, excluding the inferred mineral resources in the production target.
The DFS is also supported by the US Department of Defense’s industrial base analysis and sustainment program to secure a domestic source of titanium across the defence, aerospace, energy and robotics sectors.
What they said: “The DFS confirms Titan as one of the most compelling, shovel-ready rare earth and critical minerals development opportunities in the United States,” CEO Taso Arima said.
The source: ASX
