By Tom Kerr, CFA
OTCQB: IXRRF
READ THE FULL IXRRF RESEARCH REPORT
Overview
Ionic Rare Earths (OTCQB: IXRRF) is a critical minerals company focused on the production and recycling of rare earth oxides, with a credible pathway to commercial-scale production through its proprietary hydrometallurgical process. The company’s technology is designed to recover critical materials from recycled permanent magnets and manufacturing swarf (metal waste material), supporting a modular, capital-light recycling model. Ionic’s 2024 Definitive Feasibility Study provides the blueprint for its inaugural commercial facility in Belfast, UK, which is expected to process 1,200 tonnes per annum (tpa) of feedstock and produce approximately 400 tpa of rare earth oxides, with first production targeted for the second quarter of calendar 2028. The company currently operates a demonstration plant in Belfast that has been in operation since 2024 and processes magnet feed at a rate of approximately 30 tpa, achieving metallurgical recoveries of approximately 94%-95% and producing approximately 10 tpa of NdPr, Dy, and Tb oxides at purities above 99.5%.
Ionic’s core value proposition is its patented leach and separation technology, which is intended to establish a non-Chinese supply chain for NdPr, Dy, and Tb oxides used directly in permanent magnet production. The company has also assembled a geographically diversified partnership network to support international expansion, including a 50/50 joint venture with Viridis Mining (ASX: VMM) in Brazil, an MOU with US Strategic Metals, and an offtake-aligned MOU with South Korean magnet manufacturer JS Link. Complementing its recycling operations, Ionic holds a 60% interest in the Makuutu Ionic Clay rare earth deposit in Uganda, which, at full development, could provide sufficient heavy rare earth feedstock to support as many as five Belfast-equivalent processing modules. The regulatory backdrop is also favorable, with the EU’s Critical Raw Materials Act targeting 25% recycled-source consumption by 2030. Ionic’s Northern Ireland facility is positioned to qualify for both UK and EU grant funding frameworks, potentially strengthening the case for public-sector co-investment.
Total capital required for the Belfast commercial plant is estimated at A$170 million, with up to A$80 million expected to be sourced from UK government grants. A final funding decision is anticipated in the third quarter of 2026 and represents a near-term catalyst for the company. As of June 30, 2026, Ionic had A$3.5 million in cash and no short- or long-term debt. Subsequent to June 30, the company raised approximately A$8.0 million through a placement offering, including A$7.5 million received immediately. With a current market capitalization of approximately US$45 million, we believe the company offers significant upside if it successfully executes its commercialization strategy. Based on our DCF valuation and other valuation approaches, we estimate that Ionic Rare Earths is worth approximately US$1.00 per share.
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