Impact Minerals (IPT) Q4 2025 TU earnings summary

Executive summary

• Preliminary Feasibility Study (PFS) for Lake Hope HPA Project shows strong economics, with NPV10 of A$1.165 billion and IRR of 47.5%, positioning it as a potential lowest-cost global HPA producer.

• Acquisition of 50% of Alluminous Pty Ltd and HiPurA® technology accelerates HPA market entry by up to two years, providing immediate access to scalable, high-purity alumina processing.

• Integration of Lake Hope and HiPurA® offers dual-feedstock flexibility and strategic alignment with government-funded research, enhancing technical and financial prospects.

• Cash balance at June 30, 2025 was $2.43 million, with ongoing efforts to divest non-core assets and advance exploration at other projects.

Financial highlights

• Post-tax NPV10 of A$1.165 billion, IRR of 47.5%, and payback period of 2.2 years for Lake Hope HPA Project.

• Initial capex of A$259 million, average annual post-tax free cash flow of A$170 million, and life-of-mine post-tax cash flows of A$5.148 billion.

• Average annual production of 10,000 tonnes of 4N HPA over a 33-year mine life, with operating costs of US$5,860/t (excluding by-product credits).

• EBITDA over life of mine projected at A$7.786 billion, net profit at A$5.148 billion.

Outlook and guidance

• Definitive Feasibility Study (DFS) and pilot plant construction to commence, with integration studies for HiPurA® process underway.

• Targeting accelerated commercial production and customer engagement through pilot plant sample generation.

• Market fundamentals remain strong, with HPA demand forecast to grow at 20% CAGR, driven by batteries and LEDs.