Interview with Dr. Mike Jones, MD of Impact Minerals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/impact-minerals-asxipt-global-scale-low-cost-high-purity-alumina-5270

Recording date: 7th November 2024

Investors seeking exposure to the high-growth high-purity alumina (HPA) market should take a close look at Impact Minerals (ASX:IPT). This junior explorer is developing the Lake Hope Project in Western Australia, which has the potential to become one of the world's lowest-cost sources of 4N (99%) HPA.

Impact's key advantage lies in its innovative processing route, which utilizes an alkaline pre-treatment step along with membrane technology to reduce the material before the standard acid leach process. As Managing Director Dr. Mike Jones explains, "It's just raw clay and it goes into this alkaline leach. It actually spits out very high quality potash as the first byproduct...What we're left with is actually a volume of material that's only half what we started with."

By effectively halving the mass of material to be processed, Impact can dramatically reduce its acid consumption compared to other HPA projects. Dr. Jones estimates the company's acid requirements will be 50% lower than competitors on a per-ton basis, translating to significantly lower operating costs.

With HPA demand forecast to grow strongly thanks to rising uptake in LEDs, semiconductors, and lithium-ion batteries, Impact's low-cost production could prove a key differentiator in the market. The company is initially targeting 10,000 tpa of HPA production, with a definitive feasibility study (DFS) slated for completion by 2027.

To fast-track its path to production, Impact has secured a $2.9 million government grant to construct a pilot plant and optimize its HPA process in partnership with CPC Engineering and Edith Cowan University. The pilot plant is scheduled for commissioning by mid-2025 and will enable Impact to produce customer samples for offtake discussions.

The company has also been assembling an experienced management and technical team to guide the Lake Hope project through to development. Recent appointments include an ex-Tianqi Lithium marketing executive to lead offtake negotiations and two process engineers with prior experience building an HPA plant. While Impact's initial focus is on supplying HPA to the LED, semiconductor, and sapphire glass markets, the company is also exploring potential new applications through additional R&D projects. With the Li-ion battery market seen as a key growth driver, the company has applied for further grants to develop new HPA uses.

As the Lake Hope project continues to advance, Impact's low-cost, high-purity HPA looks well positioned to disrupt the market. With a DFS on track for 2027, pilot plant construction fully funded, and a team experienced in specialty chemicals projects, the company appears to have a clear path to production.

For investors, the next 12 months should provide a steady stream of catalysts as Impact hits key milestones in the HPA growth story.

View Impact Minerals' company profile: https://www.cruxinvestor.com/companies/impact-minerals

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