Impact Minerals announces new strategy built on HPA focus and capital discipline

Impact Minerals Limited (ASX: IPT) (Impact Minerals or the Company) today announces the outcome of the strategic review it began under its 100-day plan in August. The Company will concentrate management attention and development capital on one priority: producing high-purity alumina (HPA) from its Lake Hope Project (80 per cent) in Western Australia. Its precious and base metals ground will be reviewed and its exploration effort will turn to critical minerals.

The 100-day plan is approximately 50 per cent complete and is meeting its milestones. Its purpose is to make Impact Minerals ready for institutional investment.

Two businesses, two sets of needs

Impact Minerals has run HPA development and metals exploration as one business. They are not. HPA needs development capital, engineering and project delivery. Exploration needs risk capital. Running the two businesses together has blurred the Company's investment case. The core is the HPA business, made up of Lake Hope and Alluminous. The exploration portfolio of precious and base metals is made up of Broken Hill and Commonwealth assets. From today the Company will manage and present these two businesses separately.

HPA: Lake Hope

HPA is used in semiconductors, LED lighting, batteries, synthetic sapphire and technical ceramics.

Lake Hope (80 per cent) hosts feedstock for circa 33 years of planned production (refer to the PFS notice below). The PFS indicated an NPV10 of A$1.165 billion and a post-tax IRR of 47 per cent. The work now is to prove the process.

• Pilot plant. Design is complete, equipment is purchased, delivery to site is continuing and installation has begun.
• Flow sheet. Edith Cowan University has undertaken extensive testing of the front-end flow sheet.
• Process. The Company uses a patented process.

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Alluminous: an investment, not an operation

Alluminous Pty Ltd (50 per cent) operates a pilot plant in Perth. The first HiPurA® samples have gone to US battery technology company Charge CCCV for testing. The independent Scoping Study released on 7 September 2026 evaluated a staged plant producing 2,000 to 4,000 tonnes a year in a preferred US location (refer to the Scoping Study notice below).

Alluminous uses a chemical feedstock and a different flow sheet from Lake Hope. The two processes are distinct, and processes used in one are not expected to carry across to the other. The Company will manage Alluminous as an investment, with Lake Hope taking priority for management attention and capital.

Scoping Study.

The Alluminous Scoping Study is a preliminary technical and economic study with an accuracy of approximately +/-50 per cent. The production target and forecast financial information derived from the production target, was previously reported in the Company's ASX announcement dated 7 September 2026. The Company confirms that all material assumptions underpinning the production target and forecast financial information disclosed in the original announcement continue to apply and have not materially changed. The Scoping Study is preliminary in nature and is based on low-level technical and economic assessments. There is no certainty that the production target or forecast financial outcomes will be realised.

Broken Hill

The Company holds a large, prospective tenement position at Broken Hill. Developing it requires years of expensive exploration, which Impact Minerals does not intend to fund. The Company will pursue opportunities to monetise these tenements with the aim of generating value for shareholders.

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Commonwealth: the partner-funded model

Kuniko earned a 51 per cent interest in the Commonwealth Project (Silica Hill) on 11 August 2026 by funding all exploration. An updated Mineral Resource estimate is expected before the end of calendar year 2026. If Kuniko earns 70 per cent, Impact Minerals retains 30 per cent, free carried to a decision to mine. This progress is not funded from HPA capital.

Critical minerals exploration focus

Impact Minerals has strong geological capability and will direct it towards critical minerals exploration, with Manganese, Tungsten and Bismuth under consideration as targets. The longer-term aim is to leverage Impact’s capabilities in high purity processing into other critical minerals.

 Transformation progress: ready for institutional investors

• Strategic direction and focus: completed.
• Capital management plan: in place and ongoing.
• Board renewal: Dr Frank Bierlein and Mr Paul Ingram will retire and are thanked for their many years of service. New directors are in the appointment process and will be announced before the AGM on 30 November 2026.
• Committees: the Audit and Risk Committee and the Remuneration and Nomination Committee have been established.
• Performance management is being implemented, and the remuneration and incentive scheme is under review.

New name

The Board proposes to change the Company's name, subject to shareholder approval at the AGM on 30 November 2026. Details will be set out in the Notice of Meeting.

Impact Minerals Executive Chair Jim McKerlie said, “Investors were being asked to value two very different business models as if they were one. That ends today. Lake Hope is now the priority for management time and development capital, with existing precious and base metals exploration assets under review and a re-focus on critical minerals exploration. We will report against clear milestones, starting with commissioning the Lake Hope pilot plant by 30 November.”

Note: This article has been taken from Impact Minerals and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.