IperionX investors back $20m placement to scale-up titanium production

IperionX has successfully raised $20m to scale-up production of recycled titanium through a placement which reflects investor confidence in its ambitions.

The company’s largest shareholders Fidelity Management & Research Company and Fidelity International confirmed their support for the company by leading the placement of 20 million shares priced at $1 each – a 5% discount to the 10-day volume weighted average price.

IperionX’s (ASX:IPX) directors are also demonstrating their belief in the company by subscribing for 1 million shares subject to shareholder approval.

Proceeds from the placement will be used to advance and scale patented titanium technologies, progress permitting and feasibility studies at the Titan Critical Mineral Project and for general corporate purposes.

Recycled titanium

The company’s plans to become a leading producer of low-cost, low-carbon recycled titanium metal powder – whose credentials were recently validated by a life cycle assessment – have been progressing well.

Final engineering and design for its 125 tonne per annum Titanium Demonstration Facility (TDF) in Virginia, using its breakthrough Hydrogen Assisted Metallothermic Reduction (HAMR) technology, is nearing completion with first titanium powder production targeted for the first quarter of 2024.

There are also defined plans for a simple modular expansion that will transform the TDF into the Titanium Commercial Facility (TCF-1) with production capacity of 1,125tpa in 2025, which will make it the world’s largest producer of 100% recycled titanium metal powders.

It already has a partnership with Canyon Bicycles to develop a more sustainable titanium supply chain for the bicycle industry, reached a deal with Carver Pump to produce titanium parts for the US Navy and had won a US Air Force titanium recycling challenge.

Titan project

The 11,071 acre Titan project in Tennessee is prospective for heavy mineral sands that are rich in minerals such as titanium, rare earth minerals, high grade silica sand and zircon.

According to the company’s Scoping Study, it is estimated to be capable of producing about 1.1 million tonnes, generating after tax net present value and internal rate of return – both measures of a project’s profitability – of US$692m and 40% respectively.

Capex is expected to be US$237m with payback in 1.9 years. Annual life of mine EBITDA is estimated at US$117m

This article was developed in collaboration with IperionX, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.