Delays and Dependencies: What Could Stall Impact Minerals’ HPA Ambitions Despite Strong Feasibility

Lake Hope Project – A Standout Feasibility Result

Impact Minerals Limited (ASX – IPT) has unveiled a Preliminary Feasibility Study (PFS) for its Lake Hope High Purity Alumina (HPA) Project in Western Australia that confirms the project’s potential as a globally competitive, low-cost producer. The study highlights a post-tax net present value (NPV10) of A$1.165 billion, underpinned by a modest capital expenditure of A$259 million and operating costs estimated at US$5,860 per tonne of HPA, potentially falling below US$4,500 with by-product credits.

With a maiden Probable and Proved Ore Reserve of 1.7 million tonnes at 26% alumina content, Lake Hope is positioned for a 33-year mine life producing 10,000 tonnes per annum of 4N purity HPA. The project benefits from a unique clay deposit that requires no beneficiation, contributing to its cost advantages and low carbon footprint. Impact plans to proceed with a Definitive Feasibility Study (DFS), including pilot plant construction, aiming for a final investment decision by mid-2028.

Strategic Acquisition of HiPurA® Technology

In a move that could accelerate its market entry by up to two years, Impact has acquired a 50% stake in Alluminous Pty Ltd, which owns the HiPurA® HPA processing technology. This Australian-patented process has demonstrated >99.99% purity at micro-plant scale and features a near-complete pilot plant ready for commissioning with minimal additional capital.

The acquisition not only provides Impact with immediate downstream processing capability but also offers strategic flexibility. HiPurA® can process both Lake Hope’s natural feedstock and chemical feedstocks, enabling a dual-stream approach to market. The partnership includes the original inventors and North American investors, opening doors to global capital and customer networks in high-growth sectors such as batteries, semiconductors, and LEDs.

Exploration and Project Development Updates

Exploration activities at the Arkun-Beau nickel-copper-PGM-REE project have been delayed due to regulatory approvals and seasonal farming activities, with drilling postponed until after the December harvest. Meanwhile, at Broken Hill, Impact is advancing geophysical surveys and integrating legacy data to refine targets, positioning itself as a major landholder in the region.

On the corporate front, Impact reported cash reserves of A$2.43 million as of June 30, 2025, supporting ongoing development and exploration efforts. The company continues to engage with traditional landowners and regulatory bodies to advance permitting and community relations.

Outlook and Market Positioning

Impact Minerals is strategically positioning itself at the forefront of the evolving HPA market, which is forecast to grow at around 20% annually driven by demand in battery and LED sectors. The integration of Lake Hope’s resource with the HiPurA® technology could enhance project economics and accelerate commercial production timelines, offering a compelling value proposition for investors and stakeholders.

With a strong PFS foundation, complementary technology acquisition, and ongoing exploration, Impact is navigating a complex but promising path toward becoming a significant player in the critical minerals space.