Critical Minerals Group Posts $821M NPV in Lindfield Vanadium Project PFS

Robust Financials Highlight Project Viability

Critical Minerals Group Limited (ASX:CMG) has completed a Pre-Feasibility Study (PFS) for its Lindfield Vanadium Project in Queensland, revealing a compelling financial profile that supports advancing the project towards a Final Investment Decision (FID) in 2027. The preferred development scenario, processing 3 million tonnes per annum (Mtpa) of run-of-mine (ROM) material, delivers a pre-tax net present value (NPV) of AUD 821 million and an internal rate of return (IRR) of 26.6%. Post-tax figures remain attractive with an NPV of AUD 458 million and an IRR of 18%, alongside a capital cost estimate of AUD 981 million and a payback period of seven years.

The PFS evaluates three production scales (1, 3, and 4 Mtpa), with the 3 Mtpa case balancing capital intensity and project returns. The 4 Mtpa scenario offers comparable NPV but at a significantly higher capital cost, while the 1 Mtpa option remains viable as a lower-capital fallback. Sensitivity analysis underscores the project's financial resilience, with vanadium electrolyte price, mineral grade, and metallurgical recovery identified as the primary value drivers, whereas capital cost and discount rate variations exert moderate influence.

Integrated Mine and Vanadium Electrolyte Manufacturing

The Lindfield Project is designed as a vertically integrated operation, combining an open-cut vanadium mine near Julia Creek with a downstream vanadium electrolyte (VE) manufacturing facility at the Parkes Special Activation Precinct in New South Wales. This integration aims to capture greater value by supplying battery-grade vanadium electrolyte for vanadium flow batteries (VFBs), a technology gaining traction for long-duration energy storage (LDES).

Notably, the VE facility is planned to commence operations ahead of the mine, sourcing vanadium pentoxide (V₂O₅) from third parties initially, thus generating early revenue from 2028 and mitigating peak funding requirements. The modular electrolyte plant is sized initially for 24 million litres per annum, scalable to 72 million litres as demand grows, with an estimated capital cost of AUD 47.5 million.

Resource Base and Mining Plan

The PFS is underpinned by a Mineral Resource Estimate (MRE) of 713 million tonnes at 0.32% V₂O₅, predominantly classified as Indicated (491 Mt) with the remainder as Inferred (222 Mt). The deposit lies in the shallow, flat-lying Toolebuc Formation, facilitating conventional open-pit mining without the need for drill and blast. Mining will focus on weathered domains with higher metallurgical recoveries, delivering an average annual pentoxide production of around 10,577 tonnes during the first 16 years.

Mining sequencing prioritises lower strip ratio zones and stockpiling strategies to optimise vanadium recovery. The mine life is projected at 31 years for the preferred 3 Mtpa case, with a strip ratio consistently below 1.6:1, supporting operational efficiency.

Metallurgical and Processing Advances

Extensive metallurgical test work has shaped a flowsheet that combines physical separation and chemical processing to maximise vanadium recovery while minimising environmental impacts. Pilot-scale testing of scrubbing, flotation, leaching, solvent extraction, and ion exchange has informed a process design that achieves approximately 68–69% recovery of V₂O₅ from key mineralised horizons.

Reject material from physical separation remains chemically uncontaminated, enabling progressive rehabilitation by returning waste to the mine pit. The process design also targets reduced sulphuric acid consumption, a major operating cost, with on-site acid production planned at higher throughput levels to control reagent expenses.

Infrastructure and Environmental Considerations

The project benefits from strong infrastructure, including proximity to the Flinders Highway and the Townsville-Mount Isa railway, with a rail siding near the mine site. Power supply is planned as a hybrid renewable system combining solar, wind, battery storage, and diesel backup, aiming for approximately 95% renewable penetration at an estimated cost of AUD 0.15 per kWh under a power purchase agreement.

Water sourcing strategies include surface water harvesting from Alick Creek and groundwater from the Great Artesian Basin, with ongoing refinement planned. Environmental and social impact assessments are well advanced, with regulatory engagement indicating no anticipated abnormal delays in approvals.

Market Opportunity and Strategic Positioning

CMG positions Lindfield to supply a rapidly growing vanadium flow battery market, driven by the energy transition and surging demand from AI data centres requiring reliable, long-duration energy storage. The global VFB market, valued at approximately US$2.2 billion in 2025, is forecast to exceed US$10 billion by 2033, with vanadium electrolyte supply a critical bottleneck.

Australia’s significant vanadium resources and the project’s vertically integrated model offer a competitive edge amid geopolitical supply risks and Western policy incentives favouring provenance-assured supply chains. Offtake discussions are underway across four continents, reflecting strong interest in battery-grade vanadium electrolyte.

Risks and Next Steps

The PFS identifies 161 risk items, with 20 rated as high priority. Key risks include maintaining product purity, managing reagent costs, securing funding, offtake agreements, permitting timelines, exchange rate volatility, and resource constraints. Mitigation strategies focus on pilot plant programs, supply agreements, government financing engagement, and continued resource drilling to upgrade confidence.

Critical Minerals Group plans to advance to a Definitive Feasibility Study (DFS) with priorities including metallurgical optimisation, long-term reagent contracts, and binding offtake agreements to underpin financing. The company is exploring concessional funding options with Australian and US government agencies to support development.