Victory Metals Limited (ASX: VTM) (“Victory” or “the Company”) has delivered a defining quarter ending 30th September 2025, achieving substantial milestones at its flagship North Stanmore Heavy Rare Earth Elements Project in Western Australia. The Company reported a 29.5% increase in contained tonnage in its upgraded Mineral Resource Estimate (MRE), groundbreaking metallurgical results, and new strategic partnerships, reinforcing its emergence as one of Australia’s most advanced rare earth developers.
The Quarterly Activities Report highlights progress across exploration, processing innovation, and international engagement, positioning Victory as a key supplier in the global rare earth supply chain — a market forecasted for rapid expansion amid rising demand for electric vehicles, renewable energy systems, and defence technologies.
Figure 1: Location map of North Stanmore Rare Earth Discovery
Global Rare Earth Market Outlook: Rising Demand and Strategic Value
According to Precedence Research, the global rare earth metals market was valued at USD 3.75 billion in 2024 and is projected to reach USD 9.91 billion by 2034, growing at a CAGR of 10.21%. The adoption of electric vehicles (EVs), clean energy technologies, and high-performance electronics is driving demand for critical minerals such as Dysprosium, Terbium, and Yttrium, key components in permanent magnets.
As the global energy transition accelerates, heavy rare earths have become essential to decarbonisation and national security. Victory’s advancements at North Stanmore therefore arrive at an opportune time, strengthening Australia’s strategic role in critical mineral supply chains independent of China.
Figure 2: Global rare earth demand growth 2025–2034
North Stanmore Project: Australia’s Emerging Heavy Rare Earth Powerhouse
The North Stanmore Project, located in Western Australia’s Tier-1 mining jurisdiction, represents a globally significant opportunity to establish a long-term, low-cost supply of critical minerals. With Federal and State Government support for rare earth projects, North Stanmore is well-positioned to become a key domestic and international supplier.
Victory’s updated MRE incorporates data from a 79-hole aircore drilling program totalling 3,221 metres, resulting in an upgraded resource of 320.6Mt @ 510ppm TREO, including a high-grade 50Mt zone @ 1,050ppm TREO + Sc₂O₃. Impressively, 55% of this resource now falls under the Indicated category.
The Project continues to demonstrate exceptional heavy rare earth ratios, with HREO/TREO levels up to 83%, confirming North Stanmore as one of the world’s richest clay-hosted dysprosium and terbium deposits. These metals are vital for high-performance magnets used in EV motors, wind turbines, and defence applications.
Record-Breaking Dysprosium and Terbium Grades
Victory’s infill drilling program returned some of the highest dysprosium grades ever recorded globally in a clay-hosted deposit — reaching 218ppm Dy₂O₃. This represents an enrichment over 54 times greater than the average upper continental crust.
The results not only underscore the geological uniqueness of North Stanmore but also reflect the success of the Company’s exploration strategy in identifying ultra-high heavy rare earth oxide zones. These ultra-rich areas could significantly enhance the Project’s value and economic potential.
Figure 4: Victory’s dysprosium/terbium grades comparison with global peers
Breakthrough Metallurgical Achievement: First Australian Clay-Hosted MREO
A major technical milestone for the quarter was Victory’s production of a Mixed Rare Earth Oxide (MREO) containing 94% Total Rare Earth Oxides (TREO) — the first of its kind from an Australian clay-hosted deposit.
This breakthrough validates the Company’s proprietary hydrometallurgical process, which eliminates the need for costly concentration and cracking stages, significantly lowering capital and environmental costs. The high-purity MREO product is directly compatible with global separation facilities, making Victory an attractive offtake partner for non-Chinese processors seeking ESG-compliant supply.
Figure 5: Victory’s high-purity MREO sample
Unlocking Scandium’s Potential for Future Energy Storage
Beyond rare earths, Victory’s scandium oxide by-product adds strategic value to the Project. Research from the Tokyo University of Science recently demonstrated scandium’s role in improving sodium-ion battery performance, boosting energy retention and lifespan.
With scandium prices around US$1,000/kg and limited global supply, Victory’s estimated 7.7 million kilograms of scandium from North Stanmore could position the Company as a leader in supplying this next-generation battery material — crucial for future electric and renewable systems.
Strengthened Global Partnerships and U.S. Engagement
In a landmark post-quarter development, Victory signed a Letter of Intent (LOI) with Sumitomo Corporation, one of Japan’s leading trading houses. The agreement advances offtake discussions for up to 1,000 tonnes per year of MREC, including 50 tonnes of DyTb products, over an initial five-year term.
This partnership marks a strategic progression from the December 2024 Memorandum of Understanding and reinforces Japanese interest in Australian rare earth supply chains.
Simultaneously, Victory achieved approval from the U.S. Government’s System for Award Management (SAM.gov), enabling direct engagement with federal agencies such as the Department of Defence (DoD) and Export-Import Bank (EXIM Bank). This positions the Company for potential funding under the Defence Production Act (DPA) Title III and strengthens credibility in global offtake discussions.
Financial Highlights and Strong Balance Sheet
During the September 2025 quarter, Victory completed an $11.5 million placement supported by institutional, professional, and sophisticated investors. The funds will drive upcoming drilling programs and Prefeasibility Study activities.
The Company also secured a $250,000 grant from the Minerals Research Institute of Western Australia (MRIWA), recognising Victory’s innovative research into scandium oxide recovery and high-purity processing.
As of 30 September 2025, Victory reported a cash balance of approximately $15.1 million, demonstrating strong liquidity and financial discipline.
Investor’s Outlook
Victory Metals’ shares last traded at $A1.070, marking a 5.940% gain on the same day and reporting an impressive year-to-date increase of 161.73%. With a market capitalisation of approximately $A132.1 million, Victory has shown remarkable growth momentum throughout 2025. The stock has traded within a 52-week range of $A0.31 to $A1.915,
When compared with the ASX 200 index, which gained 149.43% over the same period, Victory’s performance stands out as a clear indicator of sustained investor interest and confidence in its long-term value creation strategy. The market’s response underscores growing optimism surrounding the Company’s North Stanmore Project and its potential to supply globally significant volumes of heavy rare earth elements critical to electric vehicles, renewable energy technologies, and defence applications.
With ongoing project milestones, advancing partnerships, and a solid balance sheet, Victory Metals continues to strengthen its position as one of Australia’s most dynamic and strategically important critical minerals developers.
Figure 7: ASX performance chart illustrating Victory Metals’ impressive performance in 2025 [Source: ASX]
Path Forward: Advancing Toward Production
Looking ahead, Victory plans to finalise its North Stanmore Prefeasibility Study (PFS) in 2025, integrating metallurgical, environmental, and economic assessments. The Company is also expanding drilling to define additional high-value heavy rare earth zones and further optimise scandium recovery processes.
With international partnerships, cutting-edge metallurgical breakthroughs, and a growing global demand for heavy rare earths, Victory Metals stands poised to play a central role in Australia’s critical minerals future.
Conclusion
Victory Metals’ September 2025 Quarterly Activities Report underscores a period of remarkable progress and strategic alignment. From resource expansion and metallurgical innovation to partnerships with global industry leaders, the Company is accelerating towards becoming a premier supplier of high-value, sustainable rare earth products.
With a strong financial base, growing investor confidence, and a global market outlook favouring rare earth expansion, Victory Metals is well-positioned to lead Australia’s charge in securing the future of critical minerals.
