Goschen Central Scoping Study Shows Up to A$613M NPV and 32% IRR

Strong Economic Potential at Goschen Central

ACDC Metals Limited (ASX, ADC) has delivered a compelling update on its flagship Goschen Central Project in Victoria, revealing robust economics from its recently completed scoping study. The study outlines a 14-year mine life with a two-phase development approach, combining traditional heavy mineral sand operations with a downstream rare earth element processing plant. This integrated strategy aims to produce critical minerals such as zircon, titanium, and high-demand rare earth elements including terbium, dysprosium, neodymium, and praseodymium.

The scoping study estimates a pre-tax net present value (NPV) ranging from A$384 million under base case pricing to A$613 million in an upside scenario, with internal rates of return (IRR) between 24% and 32%. These figures underscore the project's potential to generate strong cash flows, supported by a relatively low capital intensity of approximately A$310 million for the initial heavy mineral sands operation and a further A$103.5 million for the rare earth processing plant.

Strategic Licence and Resource Development

In a significant regulatory milestone, ACDC Metals has lodged a 10-year retention licence application covering the Goschen Central mineral sands tenement and an adjacent area where mineralisation extends. This licence is designed to secure the company’s exploration and development rights, providing a stable platform for advancing the project. The Victorian Government’s recent supportive stance on resource development adds a favorable backdrop to this application.

Meanwhile, the company is progressing detailed mineralogy studies to refine geological confidence and better define high-grade zones within the deposit. These studies, conducted on samples from previous drilling campaigns, are expected to deliver results in the third quarter of 2025 and could enhance the resource base beyond the current mine plan, which utilizes less than 15% of the global mineral resource.

Financial Position and Forward Outlook

ACDC Metals closed the quarter with a healthy cash balance of A$2.025 million and no debt, positioning it well to fund ongoing exploration, development activities, and business development opportunities. The company also anticipates receiving a research and development tax refund of approximately A$213,672 in the coming quarter, further supporting its financial flexibility.

CEO Tom Davidson highlighted the project's scale and strategic importance, noting the vertical integration of rare earth processing technology as a key differentiator that offers both economic and environmental advantages over conventional methods. The company’s focus remains on unlocking the full potential of Goschen Central while exploring additional value creation avenues.

While the scoping study results are promising, ACDC Metals cautions that these are preliminary and subject to further technical and financial validation. The company acknowledges the need for substantial funding, estimated at around A$429 million across two phases, and the inherent uncertainties in securing such capital on favorable terms.