Impact Minerals Limited has completed a major technical milestone for its flagship Lake Hope High Purity Alumina (HPA) Project in Western Australia, releasing a Pre-Feasibility Study (PFS) that outlines strong economics and positions the project among the most cost-competitive potential alumina producers globally.
Image source: Impact Minerals
The study confirms that Lake Hope has the potential to supply high-purity alumina at low cost and with a comparatively small carbon footprint — an important factor, as demand for HPA is growing in sectors such as electric vehicles, energy storage, and LED lighting.
Financial overview
The PFS outlines a planned output of 10,000 tonnes of HPA annually, with a product sale price of AUD 35,484 per tonne (USD 22,000/t). Financial modelling produced a post-tax Net Present Value (NPV10) of AUD 1.165 billion (USD 722.3 million) and an initial capital cost of AUD 259 million (USD 160.6 million). Operating costs were estimated at AUD 9,452 per tonne (USD 5,860/t) before by-product credits and AUD 7,105 per tonne (USD 4,405/t) after credits.
The project is expected to generate post-tax annual cash flow of around AUD 170 million (USD105.4 million) across an initial 33-year mine life, delivering total life-of-mine cash flows of AUD 5.148 billion (USD 3.192 billion). The study also points to a post-tax internal rate of return (IRR) of 47 per cent, a capital efficiency ratio of 4:1, and a payback period of just over two years.
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