By Tom Kerr, CFA
OTCQB: IXRRF
READ THE FULL IXRRF RESEARCH REPORT
Quarterly Activities Report
On October 13, 2026, Ionic Rare Earths (OTCQB: IXRRF) released its Quarterly Activities Report for the 3-month period ending September 30, 2026. During the quarter, the company spent approximately A$560,223 on Ionic Technologies demonstration and study activities, and A$442,809 on Makuutu exploration, demonstration plant and study activities. Payments to related parties of the entity and their associates totaled A$251,500.
Cash used in operations for the quarter was (A$4.0) million, and capital expenditure was A$1.5 million. Cash balances as of September 30, 2026 were A$5.1 million, and there was no debt outstanding.
August 2026 $8.0 Million Capital Raise
In August 2026, IonicRE successfully completed an A$8 million placement, resulting in the issuance of approximately 30.8 million new fully paid ordinary shares to accredited professional and institutional investors at a price of $0.26 per share. The Placement included $0.5 million in Director participation, subject to shareholder approval, highlighting the Board’s alignment with shareholders.
It also included a further $2 million strategic investment from US-based Argentem Creek Partners, a specialist investment firm with a global presence and experience across the critical minerals, fintech and industrial sectors. Funds raised from the placement will support the company’s commercial magnet recycling plant in Belfast, UK, together with its global expansion across the UK, Europe, North and South America.
Management Commentary
Ionic Rare Earths has made significant progress over the past two months in advancing and de-risking the Belfast commercial magnet recycling plant. With the full planning application submitted and due diligence completed, the company is now focused on finalizing a comprehensive funding package. Once financing is secured, IonicRE plans to award pre-FID contracts, initiate key work streams, and order long-lead items to maintain its ambitious development timeline.
Management is committed to securing funding as quickly as possible to accelerate the delivery of separated rare earth oxides (REOs) to Western markets. Investor interest in participating in the Belfast project and the company's globally scalable technology platform remains strong. Meanwhile, Ionic Technologies continues to optimize its Demonstration Plant, with upgraded circuit modifications installed. Completion of commissioning for the enhanced heavy rare earth solvent extraction circuit is expected to support increased heavy REO production and allow the processing of greater volumes and a wider variety of mixed REO feedstocks.
Ionic Technologies' magnet recycling technology offers a relatively fast, capital-efficient pathway to producing significant volumes of high-purity, separated REOs for Western markets. Its long-loop recycling process supports supply chain diversification and strategic resource independence while offering a strong social license and a low carbon footprint. Management views Belfast as a globally significant project and a credible route to establishing commercial supplies of separated REOs to Western customers. The company is also advancing key value-chain relationships and strategic partnerships intended to strengthen its technology and support its broader global rollout.
Valuation
We maintain our US$1.00 per-share price target, based primarily on Belfast’s estimated US$251 million value, reflecting the feasibility study’s US$502 million NPV adjusted for a more conservative 12.5% discount rate. The 400-tpa plant is projected to generate approximately US$105 million in annual revenue, with £85 million in capital costs and a 2.4-year payback under the original study assumptions. Key risks include securing feedstock, controlling costs, achieving capacity utilization and ramp-up targets, and rare-earth pricing. Current prices for relevant rare earths are approximately 50–100% above feasibility study assumptions, offering potential upside.
Our valuation is supported by a 10-year DCF using a 15% discount rate, which indicates a US$1.00–US$1.50 per-share range depending on growth and other assumptions. We assign no value to the African mining asset or Brazilian Viridion JV at this stage, treating both as additional upside. Longer term, Belfast’s scalable model could be replicated in the U.S., Europe, and other markets, creating further growth potential.
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