Cadoux’s HPA gains real-world validation as rare earths footprint expands

Battery Qualification Gives Cadoux’s HPA Portfolio a Commercial Test

Cadoux’s most marketable progress during the September quarter came outside the mine plan: its premiumHPA® material was qualified by the European SAFELOOP consortium for next-generation lithium-ion battery applications and incorporated into batteries used in a US hypersonic rocket test. The Pluto Aerospace flight reached 5.5 Mach, approached 150 G acceleration and climbed above 45,000 feet, according to the company.

“SAFELOOP consortium members engaged in mega-factory LiB production development.”

“Images: Pluto Dash One hypersonic rocket trialling Cadoux’s premiumHPA® in guidance management battery pack under extreme operating conditions.”

Caption and image © Cadoux Limited. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 30 Oct 2026.

The flight is a notable demonstration of the material in a demanding application, but it is not yet a supply contract. SAFELOOP participants are evaluating customer-specific applications, manufacturing integration and potential supply arrangements, while the wider commercial pathway remains subject to further trials and negotiations. Cadoux’s earlier hypersonic battery validation had already positioned premiumHPA® as a material for extreme operating conditions.

Kwinana HPA Facility Moves Through FEED

At the project level, GR Engineering Services continued as lead engineer for the Kwinana small-scale production facility, converting Cadoux’s pilot-tested process design into a construction-ready and costed engineering package. The work includes plant layout, process documentation, equipment integration, safety studies, procurement planning and a revised capital-cost estimate. GHD Australia is supporting environmental, air-quality and approvals work.

The report says final third-party processing packages are being integrated into the front-end engineering design studies, with GR Engineering’s mechanical equipment list now under Cadoux’s review. That is an important step towards a more complete feasibility case, although the company has not yet reported a final investment decision, updated project economics or a construction funding package.

Danube Mineralisation Extends Beyond Previous Target

“Cadoux’s 70% WMS JV project tenements and deposit locations.”

Cadoux’s Wimmera Mineral Sands joint venture also delivered exploration momentum. Results from 21 Danube holes extended mineralisation beyond both ends of the June Exploration Target envelope, including as far as 1.4 kilometres north. The strongest reported intersection was 9 metres at 1.01% in-situ zircon from 18 metres, with two other extension holes returning 7 metres at 0.62% and 4 metres at 0.61%.

The result expands the geological opportunity, but it does not constitute a mineral resource. A 380-kilogram bulk sample has been prepared for flowsheet development and processing work linked to the proposed Darwin Minhub, while further mineralogical analysis and follow-up drilling remain planned. The findings build on the Danube exploration extension, which previously identified mineralisation beyond the earlier exploration envelope.

Minhub Engineering Advances Without Binding Feedstock Deals

Cadoux’s 50%-owned Minhub project received engineering and equipment proposals from FLSmidth and IHC Mining during the quarter. Pilot processing of Gippsland and Murray Basin concentrate is planned for 2027, with environmental referrals prepared for the proposed East Arm site in Darwin. The company is also assessing a potential third flotation circuit for fine-grained Danube material.

The strategic logic is clear: Wimmera feedstock could support a downstream facility targeting zircon, titanium minerals and rare earth-bearing concentrates. The commercial chain is not yet secured, however. Cadoux says discussions are continuing with potential feedstock partners, but no binding offtake or supply agreement has been executed.

Cash Position Leaves Funding as the Immediate Constraint

Cadoux finished the quarter with $1.97 million in cash, down from $2.20 million three months earlier. Net operating cash outflow was $534,000, exploration and evaluation payments were approximately $196,000, and the company reported $390,000 of equity proceeds. On its Appendix 5B calculation, that leaves an estimated 3.7 quarters of funding at the quarter’s reported spending rate.

The balance sheet also carries an unresolved overhang: Cadoux has impaired $1.085 million previously placed with a third-party escrow agent because it cannot independently verify that the funds remain available for return. The company is assessing its legal rights and recovery options. Against a portfolio that still requires feasibility work, pilot processing, approvals and commercial agreements, the next funding decision may matter as much as the next technical result.