General Chat / Discussion, page-4308

Valuation: A$0.09/share


Risks to Share Price and Valuation
We have outlined the key risks to the share price and valuation below, noting that early-stage mining projects
have various critical risks.
Company-and project-specific risks
• Access to funding: the availability of funding for the Project is not guaranteed. A lack of sufficient
funding could have a negative impact on the stock.
• Delays to development: any delays in moving into construction would be a negative for the stock.
This includes delays in approval of the Mining Licence.
• Key person dependence: individuals, including the CEO, may have relationships and experience
critical to advancing the Makuutu Project. The loss of such personnel may significantly compromise
IXR’s ability to advance the Project.
• Cost inflation: inflation is becoming a global theme and is particularly concerning in the mining
industry. If operational or capital costs increase without a corresponding increase in the commodity
price, the Project's margins will be reduced which could impact the economics and viability.
Macro risks
• Rare Earth Oxide Price – this is the key valuation sensitivity
• Foreign exchange rates
• Increasing interest rates and the potential impact on the cost of debt finance
Country-specific risks
The Makuutu project, operating in Uganda, may face several country-specific risks. For example, changes in
government policies or regulations could significantly affect the project's success.
• Political instability: any government policies or leadership changes could impact the Makuutu
project, as it may cause adverse changes in laws, taxes, or other regulations that could increase
costs or decrease revenues.
• Regulatory environment: with any adverse changes in regulations or laws potentially impacting
the project's success.