HyProMag USA could look at a US listing in the next 12 months after delivering a positive updated economic study on its proposed US$142 million Texas rare earth magnet recycling and manufacturing plant.
The company, controlled by Toronto-listed CoTec Holdings Corp and Mkango Resources, says direct US equity market exposure could give it access to a wide investor audience and potential capital base. It might also up US investment bank and institution research coverage at “a critical time of rebuilding US critical mineral supply”.
HyProMag USA had engaged prospective advisors to evaluate a listing.
The company said its proposed Texas magnet material plant, fed by pre-processing sites in South Carolina and Nevada, could produce about 1550 tonnes of neodymium iron boron (NdFeB) magnets and co-products worth US$56.8 or more per kilogram at an all-in sustaining cost of $22.3/kg.
A Class 2 AACE capital cost estimate and detailed value-engineering work by Pegasus TSI, BBA and Weston Solutions put a US$409 million post-tax net present value (NPV) on the project, with an estimated 27.6% real internal rate of return, using current market prices.
“We are very pleased with the results of the detailed design to date and the resulting increase in magnet capacity and improved economics of the Texas Hub, the first of several hubs targeted by HyProMag USA,” said CoTec CEO Julian Treger.
“We believe that the project provides a unique opportunity for the US to partially address its dependence on foreign supplied rare earth magnets and alloy powders, critical inputs for accelerating the reshoring of US manufacturing.
“With the Texas site secured through a long-term lease, detailed design well advanced and robust economics, our focus is now on securing sufficient feedstock and the necessary finance to commence with construction.”
