Investor Perception
With a mining lease software underway and a scoping research that exhibits wonderful economics, Impression Minerals’ game-changing, superior Lake Hope high-purity alumina mission makes for a compelling funding case.
Overview
Impression Minerals (ASX:IPT) is an exploration and improvement mining firm targeted on discovering and creating new useful resource initiatives inside Australia. Lake Hope, a transformational acquisition by the corporate and its present flagship asset, is a high-purity alumina (HPA) mission in Impression’s dwelling territory of Western Australia, a tier-one jurisdiction.
This advanced-stage mission permits the corporate to fast-track the asset towards improvement, firmly establishing the corporate on the street to manufacturing and rising shareholder worth.
HPA is a high-value product with numerous makes use of in a number of industries which can be key to the transition to a low-carbon world. It’s primarily utilized in LED lighting, micro-LED screens, and ceramic-coated separators in lithium-ion batteries. Each these markets are forecast to develop dramatically over the following decade, and a looming provide scarcity is predicted for 2026.
HPA can be needed for producing artificial sapphire and scratch-resistant glass. With these ever-widening functions for HPA, demand for this useful resource is predicted to develop from US$3.18 billion to US$12.21 billion by 2030 with a compounded annual progress charge of about 20 %.
Lake Hope is the corporate’s present focus because it strikes in direction of manufacturing, and the place a really shallow, high-grade useful resource of HPA precursor materials has been recognized within the prime two meters of a dry salt lake. The deposit has distinctive bodily and chemical properties that may permit for cheap digging and mining, with transportation to a processing facility off-site in a longtime industrial space. This may speed up the approvals processes required to get into manufacturing.
With a mining lease software pending, Impression goals to deliver Lake Hope, which incorporates virtually 1 million tons of potential HPA, into manufacturing when the forecast common value for 4N HPA (99.99 % Al2O3) and associated merchandise is about US$20,000 per ton. The ‘4N’ designation signifies the purity grade, making it appropriate for high-tech finish makes use of.
Excellent economics from the newest scoping research launched by the corporate exhibits Lake Hope’s potential to be the lowest-cost producer of HPA globally by as much as 50 %.
Lake Hope has a maiden mineral useful resource estimate (MRE) of three.5 million tons at 25.1 % alumina (Al2O3) for a contained 880,000 tons of alumina. The corporate additionally obtained heritage clearances for your complete Lake Hope deposit additional de-risking the mission and offering one other essential part within the firm’s software for a mining lease.
Impression accomplished a bulk sampling and check pits program on the Lake Hope mission in December 2023, and later reached a key milestone by producing HPA higher than 99.99 % (4N) purity from the metallurgical processing of lake clays acquired from Lake Hope.
In February 2024, a brand new proprietary metallurgical course of for producing HPA from the lake clays was recognized. Impression produced 99.99 % (4N) Al2O3 from a low-temperature leach (LTL) course of. The LTL course of might decrease the capital and working prices to supply HPA in comparison with the sulphate course of which underpinned the latest scoping research. The LTL course of shall be included within the ongoing pre-feasibility research in parallel with the sulphate course of at marginal additional price to find out one of the best processing path to HPA. The PFS is because of be accomplished in late 2024.
A comparability of the LTL course of and the sulphate course of
The corporate is effectively funded to finance the pre-feasibility research on the Lake Hope Excessive Purity Alumina mission and exploration actions on the Arkun battery minerals mission.
Impression Minerals has been awarded a $2.87 million grant for the commercialisation of its revolutionary course of to supply Excessive Purity Alumina (HPA) from the Lake Hope deposit. The grant is beneath the Federal Authorities’s Cooperative Analysis Centres Tasks (CRC-P) program which fosters short-term, industry-led analysis collaborations. The grant is a part of an estimated $6.4 million analysis and improvement mission to be accomplished inside three years and designed to offer Impression with the related info required to finish a definitive feasibility. A key part of the grant funding shall be to assemble a pilot plant, which is a key purpose for 2025, and this can present constant materials for off-take and qualification trials.
Impression Minerals was additionally one of many inaugural cohort of seven firms chosen to be a part of the distinguished BHP Xplor program. BHP Xplor, an accelerator program launched by BHP in August 2022, is designed to assist present individuals with the chance to speed up their progress and the potential to ascertain a long-term partnership with BHP and its international community of companions.
The BHP Xplor funding was used to establish new goal areas for copper and different vitality metals across the Damaged Hill space in New South Wales, japanese Australia, the place Impression has been quietly including to its floor place for a number of years.
Moreover, the corporate is exploring its massive Arkun battery metals mission, additionally in Western Australia which covers practically 2,900 sq. kilometres. Three new exploration licence functions had been submitted just lately instantly north of the Arkun mission alongside development from the just lately found REE soil geochemistry anomalies at Hyperion, Swordfish and Horseshoe, and the Caligula copper anomaly. These anomalies require drill testing which is able to happen in 2024 and is an thrilling improvement within the rising mineral province of southwest WA.
A powerful administration staff with over 50 years of mixed {industry} expertise leads the corporate. With a mining and exploration geology diploma, Dr. Mike Jones, managing director, launched a protracted profession consulting and main mining organizations. Peter Unsworth, the non-executive chairman, has greater than 35 years of expertise in a number of monetary sectors, resembling securities industries and wealth administration. Paul Ingram, a non-executive director, has led a number of mining firms since 2003. Impression Minerals has the expertise and experience to guide the corporate to success.
Firm Highlights
- Impression Minerals is an exploration and improvement mining firm targeted on quickly shifting its flagship Lake Hope high-purity alumina (HPA) mission towards manufacturing.
- The Lake Hope mission has a high-grade maiden mineral useful resource estimate (MRE) of three.5 million tonnes at 25.1 % alumina (Al2O3), for a contained 880,000 tonnes of alumina that may be transformed to HPA.
- HPA is used all through a number of industries, and the general HPA market is projected to develop by a CAGR of 18.4 % by 2030.
- A pre-feasibility research is presently in progress and scheduled to be accomplished by This autumn 2024. A mining lease software for the Lake Hope Excessive Purity Alumina (HPA) was just lately lodged with the purpose of being granted by 2026.
- The corporate’s mission portfolio additionally consists of belongings with high-grade mineral deposits of a spread of base, essential and valuable metals.
- Impression Mineral’s 2,000-square-mile Arkun nickel-copper-PGE mission in Western Australia has produced encouraging assays that encourage additional exploration. Maiden drill programmes are deliberate for early 2025.
- The corporate can be exploring its Damaged Hill copper mission in New South Wales following a significant grant beneath the auspices of the BHP Xplor program in 2023..
- A powerful administration staff leads the corporate with expertise in geology, mining and company finance.
Key Tasks
Lake Hope HPA Challenge
Impression Minerals’ Lake Hope HPA mission is in Western Australia, a tier-one mining jurisdiction. HPA is an important part in lots of new and rising applied sciences, creating ongoing demand for high-grade sources. The Lake Hope mission is the corporate’s flagship because it strikes towards manufacturing.
Challenge Highlights:
- Maiden Mineral Useful resource Estimate: A maiden mineral useful resource of three.5 million tonnes at 25.1 % alumina (Al2O3) for a contained 880,000 tonnes of alumina has been outlined on the Lake Hope HPA Challenge. About 88 % of the useful resource, or 775,000 tonnes of alumina, is within the increased confidence indicated useful resource class.
- Amenable to Open-pit Mining: The Lake Hope mission is a novel HPA asset amenable to shallow, open-pit mining. The deposit is mushy and shallow, permitting for reasonable digging and minimal infrastructure necessities. The sort of deposit additionally lowers the environmental footprint of the operation.
- Quick-tracked to Manufacturing: A mining lease software is presently underway. As soon as granted, the corporate will start working in direction of a pre-feasibility research and mini pilot plant. Impression Minerals plans to succeed in an entire pilot plant by 2026.
- Spectacular Outcomes of the 2023 Scoping Research: Excellent economics present Lake Hope to probably be the lowest-cost producer of Excessive Purity Alumina (HPA) globally by as much as 50 %. Key outcomes from the scoping research embody:
- Annual manufacturing of 10,000 tpa of 4N HPA with an preliminary 25-year mine life
- Annual EBITDA of A$174 million.
- 2 years development interval with 5,000 tonnes of manufacturing throughout the first 12 months, 8,000 tonnes within the second 12 months and 10,000 tonnes of manufacturing thereafter.
- US$934 million post-tax NPV8 at an IRR of 55 %.
- Mining Lease Utility: Amining lease software was lodged in mid-2024 over the West Lake useful resource whereas a miscellaneous licence software (L63/99) was lodged to cowl mine infrastructure and haulage street.
The scoping research was underpinned by a sulphuric acid course of permitting the corporate to attain a brand new milestone by producing HPA with purity of greater than than 99.99 % (4N) from the metallurgical processing of lake clays acquired from Lake Hope. The corporate additional recognized a brand new proprietary metallurgical course of for producing HPA from the lake clays. Often called the low-temperature leach (LTL) course of, this additionally produced 99.99 % (4N) Al2O3 and has the potential to decrease even additional the capital and working prices to supply HPA in comparison with the sulphate course of. The LTL course of shall be included within the ongoing pre-feasibility research together with the sulphate course of to find out one of the best processing path to HPA. The PFS is because of be accomplished in late 2024.
Damaged Hill Copper Challenge
The Damaged Hill mission has a big land place of 815 sq. kilometers and hosts a number of targets with the potential for high-grade copper. Damaged Hill is positioned in New South Wales, Australia, an space recognized for its prolific silver-lead-zinc mining operations and the large Damaged Hill deposit.
Challenge Highlights:
- Participant within the BHP Xplor Program: Impression was chosen for the BHP Xplor program in 2023 based mostly on its Damaged Hill mission. This system is designed to permit individuals to speed up progress and set up a long-term partnership with BHP.
- Potential for Further Minerals and Deposits: In addition to copper, the mission has vital exploration potential for magmatic nickel-copper-PGE sulphides, and on the time the host rocks had been fashioned, Damaged Hill was positioned near the world-class nickel-copper-PGE deposit of Jinchuan and the numerous Lengquisheng deposit. The mission space additionally has the potential to include zinc-lead-silver deposits, offering much more worth.
Arkun Nickel-Copper-Gold-Lithium-REE Challenge
The Arkun mission is a 2,900-square-kilometer nickel, copper and gold mission positioned within the rising Ni-Cu-PGE province close to the world-class Julimar Ni-Cu-PGE deposit and surrounded by Anglo American Company, which secured its floor holding shortly after Impression secured its asset. Anglo-American is without doubt one of the world’s prime ten mining firms, and their presence within the area brings confidence within the mission’s potential.
Challenge Highlights:
- Further Exploration Underway: Impression plans follow-up work applications, together with drilling, at its precedence targets.
- Vital Targets Recognized: Current soil sampling recognized two new prospects:
- Hyperion prospect – Positioned within the northwestern a part of the mission space returned with uncommon earth component anomalism of as much as 5,880 ppm (0.59 %) whole uncommon earth oxide (TREO+Y) and neodymium and praseodymium (Nd+Pr) of as much as 21 %.
- Caligula prospect – Initially recognized on the roadside, the Caligula prospect is a big and vital goal for porphyry copper mineralisation.
- Three New Exploration Licences: Impression utilized for 3 new exploration licences increasing Arkun mission alongside development from the just lately found REE soil geochemistry anomalies at Hyperion, Swordfish and Horseshoe in addition to the Caligula copper anomaly.
Administration Staff
Peter Unsworth – Non-executive Chairman
Peter Unsworth, previously a chartered accountant, has over 35 years of expertise within the company finance, funding and securities industries and a wealth of administration expertise with private and non-private firms. A former govt director with a number one Western Australian stockbroking firm, Unsworth has been a director of a number of public exploration and mining firms. He just lately accomplished a very long time serving as chairman of the Western Australian Authorities-owned Gold Company (operator of The Perth Mint). Unsworth is the founding chairman of Impression Minerals.
Dr. Mike Jones – Managing Director
Dr. Mike Jones is the founding managing director of Impression Minerals Restricted, which was listed on the Australian Inventory Trade in November 2006. Reporting to the board of administrators, he’s answerable for the corporate’s efficiency because it strikes in direction of manufacturing at its Lake Hope Excessive Purity Alumina Challenge and in addition for implementing methods to discover and maximize the worth of the corporate’s different in depth tenement holdings.
Since itemizing, he has helped increase greater than $60 million to assist fund the exploration of Impression’s initiatives and managed the corporate via vital hostile occasions, together with the worldwide monetary disaster and the Fukushima nuclear catastrophe, which affected Impression’s appreciable funding within the uranium sector, a five-year international downturn within the mining sector and extra just lately, the COVID-19 pandemic.
Paul Ingram – Non-executive Director
Paul Ingram is a geologist with in depth expertise managing main mineral exploration applications for a number of publicly listed firms and has been concerned within the mining sector for over thirty years. He has designed and applied revolutionary strategies for exploration in distant areas and has managed initiatives in nations all through Australia and East Asia. Ingram has been a director of the next listed firms prior to now three years: Polo Sources from January 2008 to January 2011; A-Cap Sources since June 2009; Consolidated International Investments since September 2006; Caledon Sources from February 2003 to March 2008; and Australian Pacific Coal since March 2011.
Dr Frank Bierlein – Non-executive Director
Dr. Frank Bierlein is a geologist with 30 years of expertise as a guide, researcher, lecturer and {industry} skilled. Bierlein has held exploration and generative geology administration positions with QMSD Mining, Qatar Mining, Afmeco Australia and Areva NC, and consulted for, amongst others, Newmont Gold, Resolute Mining, Goldfields Worldwide, Freeport McMoRan, and the Worldwide Atomic Vitality Company. He’s presently a non-executive director of PNX Metals. He was beforehand a non-executive director of Gold Australia NL and chaired the advisory board of a Luxembourg-based non-public fairness fund between 2014 and 2021.
