InvestSMART

Iondrive Limited (ASX:ION)

ALERT: Price-sensitive ASX Announcement for ION
Current share price for ION : $0.082 -0.003 (-3.53%)+
Announcement
Release
7 Sep 2026 8:44AM
Price at Release
$0.085
Full Release
download
Summary
Iondrive Limited announced an updated technical and economic evaluation for a single United States IONSolv™ rare earth recycling module processing end-of-life permanent magnets, with the study indicating a post-tax NPV at a 10% real discount rate of US$243 million, pre-tax NPV of US$348 million, annual EBITDA of US$62.1 million on revenue of US$121.8 million, and development capital of US$11.9 million over a ten-year operating life following one construction year; the model assumes throughput of 2,402 tpa, feedstock grade of 30.66% REO, production of about 630 tpa rare earth oxide product including about 624 tpa payable Nd, Pr and Dy oxides, and realised pricing at 90% of North American benchmark assessments, while applying overall modelled recoveries of 89.3% for Nd, 88.5% for Pr and 88.8% for Dy, which are below independently validated single-pass leach results and still require integrated testwork to confirm full flowsheet recovery to final product; the upgrade from the November 2025 evaluation is driven mainly by richer assumed feedstock and higher dysprosium content rather than process changes, with dysprosium contributing nearly half of base-case revenue, and the company stresses that feedstock grade, composition, availability, pricing, utilisation, permitting, funding, site selection and offtake remain key uncertainties, meaning the study supports a planned first commercial module in Oklahoma but does not constitute a final investment decision.
Key Points
  • The updated evaluation for one US IONSolv™ module returns a post-tax NPV of US$243 million and a pre-tax NPV of US$348 million.
  • The modelled operation generates annual revenue of US$121.8 million and annual EBITDA of US$62.1 million, with a 51.0% EBITDA margin.
  • Development capital is estimated at US$11.9 million, with sustaining capital of US$6.0 million over the ten-year operating life.
  • The study assumes feedstock throughput of 2,402 tpa at an assumed REO head grade of 30.66%, producing about 630 tpa of rare earth oxide product.
  • Approximately 624 tpa of payable product is modelled as neodymium, praseodymium and dysprosium oxides.
  • The economic model uses assumed overall recoveries of 89.3% for Nd, 88.5% for Pr and 88.8% for Dy, below independently validated single-pass leach recoveries.
  • Overall recovery through to final mixed rare earth oxide product has not yet been validated through integrated flowsheet testwork.
  • The revised economics are driven mainly by richer assumed feedstock and higher dysprosium content compared with the November 2025 evaluation.
  • Dysprosium represents about 4.7% of modelled production by mass but about 49.5% of base-case revenue, making its assumed content and price highly material.
  • Base-case realised product value is US$193/kg, based on 90% realisation of management-adopted North American benchmark prices.
  • Feedstock cost is modelled at US$30.4 million per year, or US$48.30/kg of product, representing 51% of total operating cost.
  • Sensitivity analysis shows no tested pricing case produces a negative NPV, with project value most sensitive to realised product prices and operating costs.
  • The model is ungeared, expressed in real US dollars, uses a 10% real discount rate and 30% corporate tax rate, and assumes no production ramp and no working capital.
  • Iondrive says the evaluation supports the planned first commercial module in Oklahoma, but it is a study only and not a final investment decision.
  • Next steps include front-end engineering design, US feedstock qualification, site selection, permitting, and progressing supply, offtake and funding arrangements.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.