Impact Minerals' Lake Hope study charts strong 33-year low-cost alumina project with $722 mln present value

The study confirms that Lake Hope has the potential to supply high-purity alumina at low cost and with a comparatively small carbon footprint - an important factor, as demand for HPA is growing in sectors such as electric vehicles, energy storage, and LED lighting.

Financial overview

The PFS outlines a planned output of 10,000 tonnes of HPA annually, with a product sale price of AUD 35,484 per tonne (USD 22,000/t). Financial modelling produced a post-tax Net Present Value (NPV10) of AUD 1.165 billion (USD 722.3 million) and an initial capital cost of AUD 259 million (USD 160.6 million). Operating costs were estimated at AUD 9,452 per tonne (USD 5,860/t) before by-product credits and AUD 7,105 per tonne (USD 4,405/t) after credits.

The project is expected to generate post-tax annual cash flow of around AUD 170 million (USD105.4 million) across an initial 33-year mine life, delivering total life-of-mine cash flows of AUD 5.148 billion (USD 3.192 billion). The study also points to a post-tax internal rate of return (IRR) of 47 per cent, a capital efficiency ratio of 4:1, and a payback period of just over two years.

The proven and probable reserves stand at 610,000 tonnes and 1,120,000 tonnes, respectively.

Mine planning and resource work

Impact has continued to advance groundwork at Lake Hope while progressing approvals. During the year, the company lodged a Mining Lease Application (MLA63/684) and a Miscellaneous Licence (L63/99) to cover haul road access and other site logistics.

The project lies roughly 500 kilometres east of Perth, within the traditional lands of the Ngadju Aboriginal people.

The Prescribed Body Corporate (PBC) has provided a Negotiation Protocol that will guide the development of a Land Access Agreement and Cultural Heritage Management Plan. These discussions will continue as the approvals process moves forward.

Infill drilling at West Lake during the year converted a significant portion of the Indicated Resource to Measured status. This allowed the company to declare a maiden Proven Reserve as part of the PFS. The updated Measured Resource, prepared by H and S Resource Consultants, totals 730,000 tonnes at 25.8 per cent alumina (Al₂O₃), containing 189,000 tonnes of alumina - enough to support at least 15 years of production at the targeted output rate.

Processing and infrastructure

The PFS also confirmed Kwinana, south of Perth, as the preferred location for the project's processing plant, replacing the earlier plan for Kalgoorlie. While transporting ore to the coast adds some cost, Kwinana's established industrial infrastructure and proximity to key reagents are expected to reduce overall operating expenses.

Following test work and modelling, the Low-Temperature Leach (LTL) process was selected as the most suitable method for large-scale HPA production. Impact is now in talks with suppliers for the required chemical inputs and with potential offtakers for by-products such as fertiliser and acid. These can both be handled directly within Kwinana's industrial zone, reducing logistical complexity.

CPC Engineering has been appointed to design and manage a pilot plant and prepare detailed cost estimates for a full-scale facility. The design builds on process work by Strategic Metallurgy and will include an acid regeneration system aimed at cutting chemical use and operating costs. A potential site for the facility has been identified, and discussions over land access are continuing.

Environmental work and research support

Environmental and heritage baseline surveys have been completed across Lake Hope, with no obstacles to mining identified. Power to the future Kwinana refinery is expected to be supplied by 70 per cent renewable energy by 2040, in line with Western Australia's Whole of System Plan (WoSP). The company is also assessing ways to accelerate the shift toward renewables earlier in the project's life.

In October 2024, Impact secured AUD 2.87 million grant under the Cooperative Research Centres Projects (CRC-P) program, partnering with CPC Engineering and Edith Cowan University (ECU). The funding will support the pilot plant's construction and allow Impact to produce HPA samples for customer qualification and offtake trials. The grant also funds the introduction of Membrane Selective Technology (MST) - a process designed to improve reagent recovery, reduce waste, and achieve near zero-liquid discharge operation.

Outlook

Impact has confirmed that all key assumptions and financial forecasts from its June 2025 announcement remain unchanged. The company will now move to increase its ownership to 80 per cent of Playa One Pty Ltd, which holds the Lake Hope Project and associated patents.

Work over the next year will focus on obtaining mining lease approvals, completing additional environmental and heritage studies, and advancing toward a Definitive Feasibility Study (DFS). Engagement with the Ngadju community is expected to continue through 2025 and 2026 as the project moves closer to development.

If brought into production, Lake Hope could become one of Australia's most efficient and environmentally responsible sources of high-purity alumina, supporting growing demand from the global clean-energy and advanced manufacturing sectors.