Impact Minerals Limited (ASX:IPT) Announces Positive Pre-Feasibility Study Results for Lake Hope HPA Project
Project Overview
Impact Minerals Limited (ASX:IPT) has released the results of its Pre-Feasibility Study (PFS) for the Lake Hope High Purity Alumina (HPA) Project in Western Australia. The study highlights exceptionally strong economics, positioning Lake Hope as a potential low-cost global supplier of HPA with significant environmental benefits for the local community.
Financial Performance
The PFS reports a Net Present Value (NPV) at a 10% discount rate of A$1.165 billion and a robust Internal Rate of Return (IRR) of 47.5%. Capital expenditures are estimated at A$259 million, while operating expenses stand at US$5,860 per tonne, which could potentially decrease to under US$4,500 with by-product credits.
Ore Reserve Details
The study confirms a maiden Probable and Proved Ore Reserve of 1.7 million tonnes at 26% Al₂O₃, translating to 450,000 tonnes of contained Al₂O₃. This significant reserve underpins the project’s economic viability and long-term production capacity.
Future Plans
Impact Minerals will proceed to acquire an 80% interest in Playa One Pty Ltd, securing ownership of the Lake Hope resource and related intellectual property. The company is set to commence a Definitive Feasibility Study (DFS), which includes constructing a pilot plant and exploring integration with the HiPurA process to enhance production scalability and efficiency.
Executive Comments
Dr Michael G Jones, Managing Director of Impact Minerals, stated, “The Lake Hope PFS clearly demonstrates that Impact Minerals is now on the cusp of delivering a significant, low-cost and highly scalable HPA project. In just over two short years since acquiring the rights to the project, we have proven that Lake Hope’s unique natural feedstock, combined with a straight-forward flowsheet, offers one of the most capital-efficient and environmentally responsible pathways to high-purity alumina production globally. The Project’s strong margins, minimal carbon footprint, and ability to deliver 4N product without critical reagents or complex processing provides us with a clear competitive advantage as the HPA market enters a phase of rapid growth.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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