Victory Metals Ltd. has released its pre-feasibility study (PFS) for its North Stanmore heavy rare earth project near Cue, Western Australia, outlining a highly lucrative development path with minimal capital requirements.
The PFS highlights an exceptional pre-tax net present value of AU$1.76 billion and an impressive pre-tax internal rate of return (IRR) of 338 per cent, with rapid capital payback achieved in just 1.5 years. Post-tax metrics remain robust, generating an NPV of AU$1.21 billion and a 240 per cent IRR.
The compelling economics are supported by a low initial capital expenditure of AU$155 million and an initial 20-year mine life generating AU$6.5 billion in life-of-mine free on board (FOB) revenue.
Alongside the PFS, Victory unveiled a maiden ore reserve estimate of 47 million tonnes contained within an updated Measured and Indicated mineral resource of 154.8 million tonnes.
The global mineral resource estimate now stands at 278.8 million tonnes at 483 ppm total rare earth oxide (TREO), including a high-grade domain of 53.3 million tonnes averaging 1,024 ppm TREO.
The proposed operation relies on shallow, free-dig open-pit mining and beneficiation to produce a heavy rare earth-enriched concentrate. Processing and site-wide general and administrative costs are estimated at a low AU$28.38 per tonne processed.
Victory Metals CEO Brendan Clark said the study demonstrates the unique commercial profile of the deposit.
“The numbers speak for themselves,” Clark said.
“With initial capital of just A$155 million, the PFS delivers a pre-tax NPV8 of A$1.76 billion and pre-tax IRR of 338 per cent, with payback in just 1.5 years.
“These are exceptional returns for a critical minerals project of this scale, and reflect both the low capital intensity of our development concept and the strength of the deposit rare earth basket.”
Victory will now advance definitive feasibility study (DFS) activities, focusing on process optimisation, permitting pathways, offtake negotiations, and project funding options.
