Ionic Rare Earths Limited (ASX:IXR) Announces Q4 2024 Activities Report
Project Developments
Ionic Rare Earths Limited (ASX:IXR) reported significant progress in its magnet recycling and heavy rare earth projects. A Feasibility Study for a Rare Earth Oxide (REO) manufacturing facility in Belfast, UK, demonstrated robust financial metrics with a post-tax NPV of US$502 million and an IRR of 43.6%. Construction is anticipated to complete by late 2026, establishing a sovereign magnet REO supply chain for the Western market.
Funding and Grants
The company lodged an application for a substantial capital grant from the UK Government via the Automotive Transformation Fund. Additionally, Ionic Technologies secured an extra $2.46 million in grant funding from the UK Government to enhance partnerships for recycled rare earth permanent magnets. These funding efforts support the development of sustainable and traceable rare earth supply chains.
Brazilian Joint Venture
IonicRE’s joint venture with Viridion Mining and Minerals Limited in Brazil received backing from Invest Minas, promoting the replication of UK magnet recycling technology. A five-year Memorandum of Understanding with SENAI FIEMG Innovation and Technology Centre was signed to develop rare earth magnets at Lab Fab, Brazil. The joint efforts aim to establish pilot plants for REO refining and magnet recycling, leveraging lower operating costs in the Brazilian market.
Corporate Highlights
In the corporate sphere, IonicRE completed a $1.65 million capital raise and successfully launched a Share Purchase Plan, raising approximately $766,000. The company also received a $613,000 R&D rebate from the Australian Taxation Office, ensuring sufficient funding for its near-term objectives. Executive changes included the appointment of Mr Warren Tregurtha as acting CFO, and the resignation of Non-Executive Director Nitin Tyagi.
Outlook
Looking ahead, IonicRE aims to finalize the capital grant application outcome in Q1 2025 and target a Final Investment Decision in H1 2025 for the Belfast facility. The company plans to expand its technology to key markets in North and South America, Europe, and Asia, supported by Brazil’s recent announcement of US$815 million in funding for strategic minerals projects.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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