Overview
Influence Minerals (ASX:IPT) is an exploration and growth mining firm targeted on discovering and creating new useful resource initiatives inside Australia. Lake Hope, a current transformational acquisition by the corporate and its present flagship asset, is a high-purity alumina (HPA) undertaking in Influence’s dwelling territory of Western Australia, a tier-one jurisdiction.
This advanced-stage undertaking permits the corporate to fast-track the asset towards growth, firmly establishing the corporate on the highway to manufacturing and growing shareholder worth.
HPA is a high-value product with varied makes use of in a number of industries which are key to the transition to a low-carbon world. Its predominant makes use of are in LED lighting, micro-LED screens, and ceramic-coated separators in lithium-ion batteries. Each these markets are forecast to develop dramatically over the following decade, and a looming provide scarcity is predicted for 2026.
HPA can be obligatory for producing artificial sapphire and scratch-resistant glass. With these ever-widening purposes for HPA, demand for this useful resource is predicted to develop from US$3.18 billion to US$12.21 billion by 2030 with a compounded annual development charge of about 20 p.c.
Lake Hope is the corporate’s present focus because it strikes in the direction of manufacturing, and the place a really shallow, high-grade useful resource of HPA precursor materials has been recognized within the high two meters of a dry salt lake. The deposit has distinctive bodily and chemical properties that may permit for cheap digging and mining, with transportation to a processing facility off-site in a longtime industrial space. This may speed up the approvals processes required to get into manufacturing.
Influence is at the moment targeted on lodging a mining lease utility. The corporate goals to deliver Lake Hope, which incorporates nearly 1 million tons of potential HPA, into manufacturing when the forecast common worth for 4N HPA (99.99 p.c AL203) and associated merchandise is about US$20,000 per ton. The ‘4N’ designation signifies the purity grade, making it appropriate for high-tech finish makes use of.
Excellent economics from the most recent scoping examine launched by the corporate reveals Lake Hope’s potential to be the lowest-cost producer of HPA globally by as much as 50 p.c.
In June 2023, Influence introduced a maiden mineral useful resource estimate (MRE) of three.5 million tons at 25.1 p.c alumina (Al2O3) for a contained 880,000 tons of alumina. The corporate additionally obtained heritage clearances for the whole Lake Hope deposit additional de-risking the undertaking and offering one other important element within the firm’s utility for a mining lease.
Influence accomplished a bulk sampling and take a look at pits program on the Lake Hope undertaking in December 2023. The corporate lately introduced a key milestone having produced HPA better than 99.99 p.c (4N) purity from the metallurgical processing of lake clays acquired from Lake Hope.
In February 2024, a brand new proprietary metallurgical course of for producing HPA from the lake clays was recognized. Influence produced 99.99 p.c (4N) Al2O3 from a low-temperature leach (LTL) course of. The LTL course of could decrease the capital and working prices to provide HPA in comparison with the sulphate course of which underpinned the current scoping examine. The LTL course of might be included within the ongoing pre-feasibility examine in parallel with the sulphate course of at marginal additional value to find out the most effective processing path to HPA. The PFS is because of be accomplished on schedule in late 2024.
A comparability of the LTL course of and the sulphate course of
The corporate obtained a major analysis and growth refund of $753,000 from its exploration actions accomplished within the monetary yr ending June thirtieth, 2022. The corporate is effectively funded to finance the pre-feasibility examine on the Lake Hope Excessive Purity Alumina undertaking and exploration actions on the Arkun battery minerals undertaking.
Influence Minerals was additionally one of many inaugural cohort of seven firms chosen to be a part of the distinguished BHP Xplor program. BHP Xplor, an accelerator program launched by BHP in August 2022, is designed to assist present individuals with the chance to speed up their development and the potential to ascertain a long-term partnership with BHP and its international community of companions.
The BHP Xplor funding was used to establish new goal areas for copper and different power metals across the Damaged Hill space in New South Wales, japanese Australia, the place Influence has been quietly including to its floor place for a number of years.
Moreover, the corporate is exploring its giant Arkun battery metals undertaking, additionally in Western Australia which covers almost 2,900 sq. kilometres. Three new exploration licence purposes have been submitted lately instantly north of the Arkun undertaking alongside pattern from the lately found REE soil geochemistry anomalies at Hyperion, Swordfish and Horseshoe, and the Caligula copper anomaly. These anomalies require drill testing which is able to happen in 2024 and is an thrilling growth within the rising mineral province of southwest WA.
A robust administration staff with over 50 years of mixed trade expertise leads the corporate. With a mining and exploration geology diploma, Dr. Mike Jones, managing director, launched an extended profession consulting and main mining organizations. Peter Unsworth, the non-executive chairman, has greater than 35 years of expertise in a number of monetary sectors, comparable to securities industries and wealth administration. Paul Ingram, a non-executive director, has led a number of mining firms since 2003. Influence Minerals has the expertise and experience to guide the corporate to success.
Firm Highlights
- Influence Minerals is an exploration and growth mining firm targeted on quickly transferring its flagship Lake Hope high-purity alumina (HPA) undertaking in the direction of manufacturing.
- Lake Hope undertaking has a high-grade maiden mineral useful resource estimate (MRE) of three.5 million tonnes at 25.1 p.c alumina (Al2O3), for a contained 880,000 tonnes of alumina that may be transformed to HPA.
- HPA is used all through a number of industries, and the general HPA market is projected to develop by a CAGR of 18.4 p.c by 2030.
- A pre-feasibility examine is at the moment in progress, and Influence plans to lodge a mining lease utility by Q3 2024 after outcomes of its scoping examine indicated that Lake Hope may doubtlessly be one in all, if not the lowest-cost producer of HPA globally, presumably by a major margin of as much as 50 p.c.
- The corporate’s undertaking portfolio additionally contains property with high-grade mineral deposits of a variety of base, important and valuable metals.
- Influence Mineral’s 2,000-square-mile Arkun nickel-copper-PGE undertaking in Western Australia has produced encouraging assays motivating additional exploration with maiden drill programmes deliberate for 2024.
- The corporate can be exploring its Damaged Hill copper undertaking in New South Wales beneath the auspices of the BHP Xplor program.
- A robust administration staff leads the corporate with expertise in geology, mining and company finance.
Key Initiatives
Lake Hope HPA Mission
Influence Minerals’ Lake Hope HPA undertaking is in Western Australia, a tier-one mining jurisdiction. HPA is an important element in lots of new and rising applied sciences, creating ongoing demand for high-grade sources. The Lake Hope undertaking has develop into the corporate’s flagship because it strikes towards manufacturing.
Mission Highlights:
- Maiden Mineral Useful resource Estimate: A maiden mineral useful resource of three.5 million tonnes at 25.1 p.c alumina (Al2O3) for a contained 880,000 tonnes of alumina has been outlined on the Lake Hope HPA Mission. About 88 p.c of the useful resource, or 775,000 tonnes of alumina, is within the greater confidence indicated useful resource class.
- Amenable to Open-pit Mining: The Lake Hope undertaking is a singular HPA asset amenable to shallow, open-pit mining. The deposit is tender and shallow, permitting for reasonable digging and minimal infrastructure necessities. Such a deposit additionally lowers the environmental footprint of the operation.
- Quick-tracked to Manufacturing: The corporate is at the moment awaiting its Mining Lease Software. As soon as granted, the corporate will start working in the direction of a pre-feasibility examine and mini pilot plant. Influence Minerals plans to succeed in a whole pilot plant by 2026.
- Spectacular Outcomes of the 2023 Scoping Examine: Excellent economics present Lake Hope to doubtlessly be the lowest-cost producer of Excessive Purity Alumina (HPA) globally by as much as 50 p.c. Key outcomes from the scoping examine embrace:
- Annual manufacturing of 10,000 tpa of 4N HPA with an preliminary 25-year mine life
- Annual EBITDA of A$174 million.
- 2 years development interval with 5,000 tonnes of manufacturing through the first yr, 8,000 tonnes within the second yr and 10,000 tonnes of manufacturing thereafter.
- US$934 million post-tax NPV8 at an IRR of 55 p.c.
The scoping examine was underpinned by a sulphuric acid course of permitting the corporate to attain a brand new milestone by producing HPA with purity of greater than than 99.99 p.c (4N) from the metallurgical processing of lake clays acquired from Lake Hope. The corporate additional recognized a brand new proprietary metallurgical course of for producing HPA from the lake clays. Often known as the low-temperature leach (LTL) course of, this additionally produced 99.99 p.c (4N) Al2O3 and has the potential to decrease even additional the capital and working prices to provide HPA in comparison with the sulphate course of. The LTL course of might be included within the ongoing pre-feasibility examine together with the sulphate course of to find out the most effective processing path to HPA. The PFS is because of be accomplished in late 2024.
Damaged Hill Copper Mission
The Damaged Hill undertaking has a major land place of 815 sq. kilometers and hosts a number of targets with the potential for high-grade copper. Damaged Hill is positioned in New South Wales, Australia, an space identified for its prolific silver-lead-zinc mining operations and the large Damaged Hill deposit.
Mission Highlights:
- Participant within the BHP Xplor Program: Influence was chosen for the BHP Xplor program primarily based on its Damaged Hill undertaking. This system is designed to permit individuals to speed up development and set up a long-term partnership with BHP.
- Potential for Further Minerals and Deposits: In addition to copper, the undertaking has important exploration potential for magmatic nickel-copper-PGE sulphides, and on the time the host rocks have been shaped, Damaged Hill was positioned near the world-class nickel-copper-PGE deposit of Jinchuan and the numerous Lengquisheng deposit. The undertaking space additionally has the potential to include zinc-lead-silver deposits, offering much more worth.
Arkun Nickel-Copper-Gold-Lithium-REE Mission
The Arkun undertaking is a 2,900-square-kilometer nickel, copper and gold undertaking positioned within the rising Ni-Cu-PGE province close to the world-class Julimar Ni-Cu-PGE deposit and surrounded by Anglo American Company, which secured its floor holding shortly after Influence secured its asset. Anglo-American is among the world’s high ten mining firms, and their presence within the area brings confidence within the undertaking’s potential.
Mission Highlights:
- Further Exploration Underway: Influence plans follow-up work packages, together with drilling, at its precedence targets.
- Vital Targets Recognized: Latest soil sampling recognized two new prospects:
- Hyperion prospect – Positioned within the northwestern a part of the undertaking space returned with uncommon earth ingredient anomalism of as much as 5,880 ppm (0.59 p.c) complete uncommon earth oxide (TREO+Y) and neodymium and praseodymium (Nd+Pr) of as much as 21 p.c.
- Caligula prospect – Initially recognized on the roadside, the Caligula prospect is a big and important goal for porphyry copper mineralisation.
- Three New Exploration Licences: Influence utilized for 3 new exploration licences increasing Arkun undertaking alongside pattern from the lately found REE soil geochemistry anomalies at Hyperion, Swordfish and Horseshoe in addition to the Caligula copper anomaly.
Administration Staff
Peter Unsworth – Non-executive Chairman
Peter Unsworth, previously a chartered accountant, has over 35 years of expertise within the company finance, funding and securities industries and a wealth of administration expertise with private and non-private firms. A former government director with a number one Western Australian stockbroking firm, Unsworth has been a director of a number of public exploration and mining firms. He lately accomplished a very long time serving as chairman of the Western Australian Authorities-owned Gold Company (operator of The Perth Mint). Unsworth is the founding chairman of Influence Minerals.
Dr. Mike Jones – Managing Director
Dr. Mike Jones is the founding managing director of Influence Minerals Restricted, which was listed on the Australian Inventory Change in November 2006. Reporting to the board of administrators, he’s answerable for the corporate’s efficiency because it strikes in the direction of manufacturing at its Lake Hope Excessive Purity Alumina Mission and in addition for implementing methods to discover and maximize the worth of the corporate’s different in depth tenement holdings.
Since itemizing, he has helped increase greater than $60 million to assist fund the exploration of Influence’s initiatives and managed the corporate by important adversarial occasions, together with the worldwide monetary disaster and the Fukushima nuclear catastrophe, which affected Influence’s appreciable funding within the uranium sector, a five-year international downturn within the mining sector and extra lately, the COVID-19 pandemic.
Paul Ingram – Non-executive Director
Paul Ingram is a geologist with in depth expertise managing main mineral exploration packages for a number of publicly listed firms and has been concerned within the mining sector for over thirty years. He has designed and applied modern methods for exploration in distant areas and has managed initiatives in nations all through Australia and East Asia. Ingram has been a director of the next listed firms previously three years: Polo Assets from January 2008 to January 2011; A-Cap Assets since June 2009; Consolidated International Investments since September 2006; Caledon Assets from February 2003 to March 2008; and Australian Pacific Coal since March 2011.
Dr Frank Bierlein – Non-executive Director
Dr. Frank Bierlein is a geologist with 30 years of expertise as a guide, researcher, lecturer and trade skilled. Bierlein has held exploration and generative geology administration positions with QMSD Mining, Qatar Mining, Afmeco Australia and Areva NC, and consulted for, amongst others, Newmont Gold, Resolute Mining, Goldfields Worldwide, Freeport McMoRan, and the Worldwide Atomic Power Company. He’s at the moment a non-executive director of PNX Metals. He was beforehand a non-executive director of Gold Australia NL and chaired the advisory board of a Luxembourg-based personal fairness fund between 2014 and 2021.
