Ann: IperionX Completes A$50 Million Placement, page-49

The current situation is this:

Pro forma cash US$45M

Received US$3.8m from the US$12.7m DPA Title III funding to fund Phase I of the Virginia Titanium Production Facility. The remaining US$8.9m available under the DPA Title III funding was yet to be drawn upon at the end of the quarter. (29 May)

Significant progress on the US$11.5m equipment finance application with EXIM Bank, advancing the application through major EXIM Transaction Review Committee stage gates.

U.S. government recently sought to invest further grant funding to re-shore a secure domestic titanium supply chain. Well positioned to apply for additional funding to scale titanium production and manufacturing capacity.

Major Japanese conglomerate completed bulk sample test work to advance potential sales offtake and development financing, with subsequent metallurgical test work continuing at an independent laboratory in Australia. IperionX has a range of commercial opportunities with Japanese companies for potential offtake/investment at the Titan Project.

Phased expansion for higher production at lower costs 2,000+ tpa by 2026 with estimated capital costs of ~US$70 million.

Multiple U.S. Government funding opportunities. U.S. government funding options include grants and equipment finance.

CEO @ Bell Potter:We are pursuing a phased expansion to 2,000TPA by 2026. We believe there are going to be significant opportunities from the DOD like what we have seen with the initial Phase I where we secured US$12.7M. We believe there's follow-on funding from multiple avenues in the DOD which is going to want to see us start to produce Ti products from both 3D printing and traditional powder metallurgy processes.

Ahead of us we've got some major milestones coming from the start-up of our Virginia facility with first commercial production, additional announcements around customers and contracts, through to additional potential announcements around DOD funding opportunities.

(Taso was reluctant to talk about actual Ford products but did say they were in the process of finalizing contracts.)

I'm really excited about the next 12 months. I think it's going to be very rewarding for shareholders with all the milestones we've got coming.

We're a very easy company to support in DC circles and DOD circles. We're seeing, and we believe we will continue to see that immense support from the US government towards the development of our company.

Observation: Re Phase II expansion, we don't know what the final cost or equity funding contribution will be, but neither do we know what the overall contribution from US Govt/DOD grants or other equipment funding sources will be. The expansion to 2,000TPA by 2026 is phased over the next 18 months. Capital costs are also likely to be phased as required. There is nothing in company announcements and CEO commentary to suggest they are underfunded or worried about their ability to access necessary funding from multiple sources including equity raises, as and when required. Whatever the final numbers are, it is highly unlikely IPX will have to sole-fund the expansion.

IMO.

Hey Silversurfer, the chart from Jan 2023 is a regular procession of higher lows and higher highs from 62 cents to present levels. Drawdowns of 20-30% have been a regular feature of the step-up. I don't think the current drawdown is anything different. Rather just more consolidation/accumulation before the next higher high. Tight stops for sure, but nothing to worry about. IMHO.

Good luck to all.