• VTM scoping study highlights robust financial metrics for North Stanmore REE project
• Project poised to supply critical minerals to international markets outside of China
• Victory targeting project commissioning in Q3 2028

Special Report: Victory Metals has released the scoping study for its North Stanmore rare earths project in WA, promising a long-term, low cost-supply source of heavy rare earths and scandium.

The project presents an opportunity to establish Western supply of critical minerals essential for high-growth industries such as renewable energy, electric vehicles and defence. 

A 31-year mine life is underpinned by drilling data that places 72% of the 247.5 million dry metric tonnes at 493ppm total rare earth oxide and 26ppm scandium oxide resource in the high confidence indicated category.

Based on an 8% discount rate, a standard measure reflecting the cost of capital, the project economics factor for an estimated net present value of approximately $1.2 billion with an IRR of 52% based on a lower case price forecast from Adamas Intelligence.

Victory Metals (ASX:VTM) CEO and executive director Brendan Clark said the scoping study confirms North Stanmore as a “world-class heavy rare earth and scandium project with outstanding economics”. 

“The study delivers an exceptional robust case even based on Adamas Intelligence’s lower case price forecast, with a net present value (NPV) exceeding AUD $1,212m and a very high internal rate of return (IRR), reinforcing the project’s strong financial viability and low-cost advantage,” he said.

Capital expenditure is approximately $337m including a 30% contingency with the lower costs mainly due to the terrific existing infrastructure around the project, located just a stone’s throw from the well-serviced regional mining town of Cue. 

That means no transient camps or haul roads need to be constructed.

The OPEX is also low, at around A$25.5 per ROM tonne over the life of mine due to the unique geology of North Stanmore and an extensive weathering event leading to high metallurgical extractions. 

The scoping study confirms that North Stanmore has the potential to be one of the lowest-cost producers of rare earths globally, with VTM set to produce a very high value and quality heavy rare earth enriched product.

This is helped by outstanding metallurgical recoveries of 94% for magnet rare earth oxide (MREO), plus scandium and hafnium have also been successfully separated from the mixed rare earth carbonate. Both metals are critical for defence, aerospace and decarbonisation.

The process used by VTM is also an environmentally sustainable process that eliminates the need for a concentrate phase – reducing capital and operating costs. 

Plus, the project consists of shallow, free-dig clay mineralisation which allows for low-cost mining without the need for drilling or blasting.

Already the company has seen significant interest from offtakers, with VTM entering into a non-binding memorandum of understanding to negotiate an offtake agreement with Fortune 500 company Sumitomo Corporation which the company entered into in December 2024. 

“Heavy rare earths, particularly dysprosium and terbium along with emerging defence metals such as scandium and hafnium, are in growing global demand due to their critical importance and emerging supply constraints,” Clark said. 

“As industries increasingly look for sustainable, high-performance and defence materials, the outlook continues to strengthen in these markets, presenting another compelling and diversified off-take opportunity for Victory Metals.”

Pathway to 2028 commissioning

The project is scheduled for commissioning (all things progressing as planned) by Q3 2028.

And with strong financial metrics, world-class infrastructure access and increasing demand for heavy rare earths and scandium, North Stanmore is well-positioned to become a key global ethical source of critical minerals.

“The combination of a globally significant resource, low CAPEX and strong market fundamentals sets North Stanmore apart as a unique and highly strategic project,” Clark said. 

“We are now focused on advancing towards production while continuing discussions with potential partners to further de-risk development and maximise shareholder value.”

The next steps for the company include further resource drilling to expand and upgrade the resource, mine design and optimisation studies, mining strategy and scheduling studies along with metallurgical refinements ahead of a pre-feasibility study.

This article was developed in collaboration with Victory Metals, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.