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I went the lazy way and asked Gemini about potential profits from the viridian JV:
Ionic Rare Earths Limited (ASX: IXR) has a 50/50 joint venture in Brazil called Viridion with Viridis Mining and Minerals Ltd (ASX: VMM). While specific profit expectations directly attributed to the Viridion JV are not yet publicly detailed with precise figures for the Brazilian operations, we can infer its potential based on IXR's broader rare earth recycling strategy and recent developments:
Key Takeaways and Inferred Profit Potential for Viridion JV:
* Replication of Belfast Model: The Viridion JV in Brazil aims to replicate the successful magnet recycling technology developed for Ionic Technologies' Belfast facility in the UK. The Belfast facility's Feasibility Study showed strong financial returns with a post-tax Net Present Value (NPV) of US$502 million and an Internal Rate of Return (IRR) of 43.6%, based on producing separated magnet Rare Earth Oxides (REOs) at >99.5% grade. This provides a strong indication of the profit potential if the Brazilian operations achieve similar efficiencies.
* Lower Operating Costs in Brazil: IonicRE anticipates substantially lower operating costs in converting alloy feedstock to REO product in Brazil compared to other markets. This reduction in costs would directly contribute to higher profit margins for the Viridion JV.
* Government Funding and Support: The Viridion JV has secured significant backing from the Brazilian government (BNDES and FINEP), with funding allocations of R5 billion (US903 million) for strategic mineral projects and an additional R3 billion (US542 million) for R&D and innovation centers. This financial support demonstrates government confidence and significantly de-risks the project, potentially accelerating its path to profitability.
* Strategic Market Position: The JV is positioned to play a strategic role in developing a local, sustainable, and traceable supply chain for rare earth elements in Brazil, aligning with global demand for critical minerals and reduced reliance on foreign suppliers. This strong market alignment enhances the long-term profitability outlook.
* Feedstock Security: The potential for a strong feed source from Viridis Mining and Minerals' Colossus Project further strengthens the Viridion JV's operational and financial viability.
Current Financial Status of IXR (Company-wide):
It's important to note that as a mineral exploration and development company, IXR itself has been in a pre-profitability phase. Analysts anticipate the company to incur a final loss in 2025 before generating positive profits of approximately AU$23 million in 2026, implying a breakeven point just over a year from now. This projection includes the broader activities of IXR, with the Viridion JV expected to be a significant contributor to future profitability.
In summary, while specific, standalone profit figures for the Viridion JV are not explicitly stated, the strong financial projections from the replicated Belfast model, anticipated lower operating costs in Brazil, and substantial government backing indicate that IXR expects the Viridion JV to be a highly profitable venture, contributing significantly to the company's overall positive financial performance in the coming years.
Ionic Rare Earths Limited (ASX: IXR) has a 50/50 joint venture in Brazil called Viridion with Viridis Mining and Minerals Ltd (ASX: VMM). While specific profit expectations directly attributed to the Viridion JV are not yet publicly detailed with precise figures for the Brazilian operations, we can infer its potential based on IXR's broader rare earth recycling strategy and recent developments:
Key Takeaways and Inferred Profit Potential for Viridion JV:
* Replication of Belfast Model: The Viridion JV in Brazil aims to replicate the successful magnet recycling technology developed for Ionic Technologies' Belfast facility in the UK. The Belfast facility's Feasibility Study showed strong financial returns with a post-tax Net Present Value (NPV) of US$502 million and an Internal Rate of Return (IRR) of 43.6%, based on producing separated magnet Rare Earth Oxides (REOs) at >99.5% grade. This provides a strong indication of the profit potential if the Brazilian operations achieve similar efficiencies.
* Lower Operating Costs in Brazil: IonicRE anticipates substantially lower operating costs in converting alloy feedstock to REO product in Brazil compared to other markets. This reduction in costs would directly contribute to higher profit margins for the Viridion JV.
* Government Funding and Support: The Viridion JV has secured significant backing from the Brazilian government (BNDES and FINEP), with funding allocations of R5 billion (US903 million) for strategic mineral projects and an additional R3 billion (US542 million) for R&D and innovation centers. This financial support demonstrates government confidence and significantly de-risks the project, potentially accelerating its path to profitability.
* Strategic Market Position: The JV is positioned to play a strategic role in developing a local, sustainable, and traceable supply chain for rare earth elements in Brazil, aligning with global demand for critical minerals and reduced reliance on foreign suppliers. This strong market alignment enhances the long-term profitability outlook.
* Feedstock Security: The potential for a strong feed source from Viridis Mining and Minerals' Colossus Project further strengthens the Viridion JV's operational and financial viability.
Current Financial Status of IXR (Company-wide):
It's important to note that as a mineral exploration and development company, IXR itself has been in a pre-profitability phase. Analysts anticipate the company to incur a final loss in 2025 before generating positive profits of approximately AU$23 million in 2026, implying a breakeven point just over a year from now. This projection includes the broader activities of IXR, with the Viridion JV expected to be a significant contributor to future profitability.
In summary, while specific, standalone profit figures for the Viridion JV are not explicitly stated, the strong financial projections from the replicated Belfast model, anticipated lower operating costs in Brazil, and substantial government backing indicate that IXR expects the Viridion JV to be a highly profitable venture, contributing significantly to the company's overall positive financial performance in the coming years.
