Impact Minerals Limited (ASX: IPT) (the ‘Company’ or ‘Impact Minerals’), a leading player in Australia’s HPA sector, manages an extensive 5,500 square kilometres of mining tenements focused on unlocking Australia’s mineral potential. Its flagship Lake Hope High Purity Alumina (HPA) Project in Western Australia features cost-disruptive processing technology in a premier mining jurisdiction, underscoring its long-term growth strategy.
Beyond HPA, Impact Minerals’ diversified assets include gold, silver, lead, zinc, copper, nickel, and platinum group metals, positioning it firmly to capitalise on multiple mining industry opportunities.
Lake Hope HPA Project: High-Potential Asset Advancing Towards Production
Impact Minerals Limited’s primary asset is the Lake Hope High Purity Alumina (HPA) Project, located around 500 kilometres east of Perth in Western Australia. The Project aims to transform the HPA market and become a top low-cost HPA producer, capitalising on a unique production process that combines cost-efficiency and sustainability.
Figure 1: The Lake Hope HPA Project Location
The Lake Hope Project, with the potential for 10,000 tonnes per annum HPA production for over 50 years, is supported by a favourable 2023 scoping study that assigns the asset a post-tax NPV₈ of A$1,334 million. Impact Minerals’ project is primed to meet growing needs and is positioned well in a market projected by CRU (2022) to face a global HPA supply deficit and soaring demand by 2027.
The Project is anticipated to supply high-purity alumina, essential for advancing lithium-ion batteries, LED technology, and other high-performance applications. HPA-coated separators and cathodes prevent overheating and fire in lithium-ion batteries.
In a critical step toward production, Impact Minerals has submitted a Mining Lease Application (MLA63/684) and associated licenses for Lake Hope, with the upcoming Pre-Feasibility Study (PFS) also focusing on logistics and cost analysis for transporting Lake Hope mud to the processing plant. Completion of the PFS will grant Impact Minerals an 80% interest in Playa One Pty Ltd, owner of the Lake Hope Project and its intellectual property.
Lake Hope’s low-cost operation is projected to keep mining costs under 5% of total operating expenses. With current 4N HPA prices ranging from U$15,000 to U$ 25,000 per tonne, this cost structure supports robust profit margins for Impact Minerals.
The project emphasises environmental responsibility, having obtained heritage clearance from the Ngadju Aboriginal community, which aligns with its commitment to reducing environmental impact and CO2 emissions.
Timeline for the project:
- The Company has recently submitted the Mining Lease Application
- The Pre-Feasibility Study is ongoing and expected to be completed by 1st Quarter of 2025, aiming to secure an 80% project stake
- Definitive Feasibility Study / Mining Lease Grant / Trails by 2025
- 1000 tpa Demo Plant to start by 2026 along with Offtake Agreements
Figure 2: Timeline for the Lake Hope HPA Project
Impact Minerals’ Managing Director, Dr Mike Jones, said, “We have selected Kwinana as the site for the processing plant and our proprietary Low-Temperature Leach as the best method to scale up HPA production to the planned 10,000 tonnes per annum because of substantial strategic advantages. We continue on schedule to complete the PFS early in 2025 and set ourselves up for significant strides towards production later that year and into 2026”.
Recent ASX releases by Alpha HPA Limited show significant global demand for a wide range of HPA products. The Company estimates that the HPA market will grow at a 15% to 20% annual compound growth rate.
Figure 3: HPA Market Demand and Supply Gap by 2026
By 2026-2027, the HPA market is projected to be significantly undersupplied. Impact Minerals is advancing the Lake Hope Project in response to these favourable market conditions, positioning the Company to gain a competitive advantage in this lucrative sector. In an upcoming pre-feasibility study for the Lake Hope Project, Impact Minerals will focus on four key areas: Mining, processing, test work, and off-take agreement. The Company is fully aligned with its work across these key areas.
Impact Minerals has recently received A$ 2.87 million for its pilot plant under the Federal government’s Cooperative Research Centres Projects (CRC-P) program. The grant is part of an A$ 6.4 million R&D effort to provide Impact with the necessary information to complete a definitive feasibility study for its proposed 10,000-tonne-per-year HPA plant.
Updates on Other Impact Minerals Projects
Arkun-Beau-Jumbo Ni-Cu-PGM-REE Project, WA (IPT 100% and 80%)
The Arkun Battery Metals (Ni-Cu-PGM) Project covers about 850 square kilometres between York and Corrigin, 100 kilometres east of Perth, aligning with the Company’s vision. Impact Minerals is progressing with final land access agreements and necessary statutory approvals, laying the groundwork for its anticipated drilling program scheduled to commence in the first and second quarters of 2025. Impact Minerals’ strategic project placement is aligned with the rising global demand for battery minerals, backed by a sharp rise in electric vehicles (EVs) and solar power.
Impact recently re-assayed 413 soil samples to refine drill targets at the Beau and Caligula prospects. Supported by $180,000 co-funding from the Western Australian Government’s Exploration Incentive Scheme, drilling is set to begin in early 2025.
Managing Director of Impact Minerals Limited, Dr. Mike Jones
Figure 4: Dr Mike Jones, Impact Minerals’ Managing Director
Dr. Jones completed his undergraduate and postgraduate studies in Mining and Exploration Geology at Imperial College London. His PhD on gold mineralisation led him to move to Western Australia in 1988 to work for Western Mining Corporation, exploring gold and nickel deposits in the Yilgarn. Dr. Jones has worked on over 80 projects in greenfield and near-mine exploration in various mineralised terrains. He was the founding director of Lithofire Consulting Geologists in Perth, Australia. Dr. Jones is using his expertise to align Impact Minerals with the global demand for metals. He is strategically advancing the emerging Cost-disruptive HPA, Lake Hope Project.
Investor’s Outlook
- Global Demand for High-Purity Alumina (HPA): With HPA seeing increasing demand in international markets, particularly for applications in electronics, catalysts, and flame retardants, the project is well-positioned to tap into this demand.
- Strong Financial Foundation and Government Support: With a reported post-tax Net Present Value (NPV₈) of A$ 1.3 billion from previous scoping studies and additional funding like R&D rebates of about $500,000 each year, the project demonstrates a robust financial base and potential for further governmental backing, enhancing investor confidence in the project’s stability and scalability
- Pipeline for Market Expansion and Product Diversification: Impact Minerals is conducting further test work to develop new products, including hydrated alumina with applications in catalyst and flame retardant industries. Early-stage discussions with established alumina businesses in Europe and the USA highlight a clear strategy for expanding into international markets and diversifying product offerings, which positions the company for global growth.
- With a focus on enhancing metallurgy and final product specification, the company is set to enter a high-margin, growth market with substantial upside potential. The billion-dollar market cap of peers like Alpha HPA (ASX: A4N) underscores the significant opportunity in this rapidly expanding sector.
- The Company has gained strong investor confidence. Its share price increased by 25% over the past year, reflecting market support for its high-purity alumina (HPA) strategy and progress on the Lake Hope HPA Project.
- As of November 9th, 2024, Impact Minerals was trading at A$ 0.012 per share with a 52 range of A$ 0.009 – A$ 0.026. The Company’s market capitalisation is A$ 36.71 million, with approximately 3,059.4 million shares issued on the same date.
For more details on Impact Minerals Limited’s strategic financial performance, visit the official website.
