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

Our previous interview: https://www.cruxinvestor.com/posts/impact-minerals-asxipt-surging-demand-for-hpa-investment-4477

Recording date: 22nd April 2024

Impact Minerals (ASX:IPT) is an emerging player in the high purity alumina (HPA) market, developing the Lake Hope project in Western Australia. HPA is a critical material for the global energy transition, with applications in lithium-ion batteries, LEDs, sapphire glass, semiconductors, and catalysts. As the demand for clean energy technologies continues to grow, Impact Minerals is well-positioned to capitalize on the increasing need for HPA.

The Lake Hope project boasts unique advantages that set Impact Minerals apart from its competitors. The deposit is located in the top two meters of a salt lake, allowing for simple and cost-effective mining operations. The fine particle size of the clay at Lake Hope provides a high surface area, enabling efficient processing and extraction of HPA. These natural advantages, combined with the company's innovative processing routes, position Impact Minerals to become one of the lowest-cost HPA producers globally.

Impact Minerals has developed two cutting-edge processing routes: the sulfate process and the low-temperature (LTL) process. The sulfate process, designed by the company's geologist, Rolland Gottard, uses sulfuric acid to extract HPA from the clay. This process formed the basis for the scoping study released in November 2023, which demonstrated Impact Minerals' potential to achieve industry-leading low production costs. The LTL process, a more recent development, utilizes a different set of reagents and has the potential to further reduce capital and operating costs by eliminating one stage of the production process.

The global HPA market is expected to experience significant growth in the coming years, with a projected compound annual growth rate (CAGR) of 20% by the end of the decade. This growth will be primarily driven by the increasing demand for LEDs, which Impact Minerals plans to target as its primary application for HPA. The LED industry is expanding rapidly, fueled by the adoption of energy-efficient lighting solutions, smart screens, and displays. Government regulations, such as the ban on incandescent light bulbs in the United States, further support the growth of the LED market and, consequently, the demand for HPA.

Impact Minerals is making steady progress in advancing the Lake Hope project. The company is currently conducting feasibility studies, with the pre-feasibility study (PFS) expected to be completed by the end of 2024. The PFS will include a decision on which processing route to pursue for the 10,000 ton per annum HPA plant. Following the PFS, Impact Minerals will commence the definitive feasibility study (DFS), with completion targeted for the end of 2025. In parallel, the company plans to initiate marketing efforts by mid-2024, engaging with potential end-users in the LED industry to secure off-take agreements and partnerships.

Investors seeking exposure to the growing HPA market should consider Impact Minerals for its unique advantages, innovative processing technologies, and strategic focus on the expanding LED sector. With a strong management team, led by Dr. Mike Jones, and a clear path to low-cost production, Impact Minerals is poised to become a significant player in the global HPA supply chain. As the company continues to advance the Lake Hope project and approach commercial production, it presents a compelling investment opportunity in the critical materials space, offering the potential for substantial returns in the years to come.

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

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