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Osmond Resources Limited (ASX:OSM)

ALERT: Price-sensitive ASX Announcement for OSM
Current share price for OSM : $0.510 -0.01 (-1.92%)+
Announcement
Release
30 Oct 2026 8:43AM
Price at Release
$0.520
Full Release
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Summary
Osmond Resources Limited’s Quarterly Activities and Cashflow Report for the quarter ended 30 September 2026 focused on advancing its Orión EU Critical Minerals Project in Jaén Province, Andalucía, Spain, where the company holds an effective 76% beneficial interest; during the quarter it announced a maiden JORC 2012 Mineral Resource Estimate of 60.0Mt at 9.39% TiO2, 3.06% ZrO2, 624ppm HfO2 and 6,274ppm TREO, including 15.3Mt in Measured and Indicated categories, and after quarter end released a preliminary Scoping Study for a 2Mtpa underground operation with a 9-year initial mine life, estimated initial capital of US$299 million, post-tax ungeared NPV8 of US$2.309 billion, IRR of 145%, average annual EBITDA of US$531 million and payback of about 6 months, while noting the study is based partly on Inferred Resources and does not establish Ore Reserves; the company also expanded its drilling program to 15–20 holes with two rigs operating, commenced pre-feasibility mineral processing testwork, progressed downstream initiatives including MREC and REO studies, secured a provisional €250,000 Spanish government exploration grant, completed the final 85 million share issuance to secure 80% of Iberian Critical Minerals, pursued strategic recognition and a proposed secondary Madrid listing, and reported cash of A$3.153 million at 30 September 2026, with quarterly operating cash outflow of A$802,000, exploration and evaluation investing outflow of A$1.886 million, administration and corporate costs of A$613,000, related party payments of A$337,000, and estimated funding of 1.17 quarters based on current outgoings.
Key Points
  • Quarterly report date was 30 September 2026 and the ASX announcement was released on 30 October 2026.
  • Osmond Resources focused on the Orión EU Critical Minerals Project in Jaén Province, Andalucía, Spain.
  • The company holds an 80% interest in Iberian Critical Minerals, which owns 95% of Orión, giving Osmond a 76% beneficial interest.
  • A maiden JORC 2012 Mineral Resource Estimate was announced for Orión of 60.0Mt at 9.39% TiO2, 3.06% ZrO2, 624ppm HfO2 and 6,274ppm TREO.
  • Measured and Indicated Resources totalled 15.3Mt, around 26% of the total resource.
  • The higher-grade Main Seam contains 49.7Mt at 10.29% TiO2, 3.42% ZrO2, 690ppm HfO2 and 7,139ppm TREO.
  • After quarter end, Osmond announced a preliminary Scoping Study for Orión on 2 October 2026.
  • The Scoping Study considered a 2Mtpa underground room-and-pillar mine and processing plant producing monazite, zircon and titanium concentrates.
  • Scoping Study initial capital was estimated at US$299 million including 25% contingency.
  • Base case post-tax ungeared NPV8 was US$2.309 billion and IRR was 145%.
  • Average annual EBITDA was estimated at US$531 million with free cash flow payback of about 6 months from first production.
  • The study used a production target comprising 10% Measured, 61% Indicated and 29% Inferred Mineral Resources and does not establish Ore Reserves.
  • The company highlighted strategic EU supply potential for rare earths, zirconium and titanium products.
  • Forecast annual monazite concentrate production contained 2,160tpa NdPr oxide, 94tpa Dy2O3 and 24tpa Tb4O7 within concentrate.
  • Pre-feasibility level mineral processing testwork commenced to optimise the flowsheet and generate products for customer testing.
  • Upside identified outside the Scoping Study included near-pure rutile separation, silica sand sales and possible contract mining.
  • Downstream opportunities under review included rare earth oxide production, titanium and zirconium metal powders, hafnium metal and silicon metal.
  • The drilling program was expanded from 13 holes to an expected 15 to 20 holes to support resource growth and confidence upgrades.
  • Two drilling rigs were operating, with a third rig expected in November 2026.
  • Osmond secured a provisional €250,000 grant under Spain’s Programa Nacional de Exploración Minera 2026-2030.
  • The company continued work on project recognition in the EU, Spain and Andalucía and on a planned secondary listing on Bolsa de Madrid in 1H CY27.
  • Final share issuance of 85 million shares was completed to retain the 80% interest in Iberian Critical Minerals.
  • Osmond’s shares also commenced trading on the Frankfurt Stock Exchange during the quarter.
  • Cash and cash equivalents at 30 September 2026 were A$3.153 million, excluding the provisional Spanish grant.
  • Net cash used in operating activities was A$802,000 and net cash used in investing activities was A$1.886 million.
  • Exploration and evaluation expenditure for the quarter was A$1.886 million.
  • Administration and corporate costs were A$613,000 for the quarter.
  • Payments to related parties and their associates totalled A$337,000 and related to director salaries and bonuses.
  • Estimated funding based on quarter-end cash and current outgoings was 1.17 quarters.
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.