- 01Powder output rose to 8.7t; furnace runs topped 200tpa.
- 02GenX reached ~100tpa, using over 75% less power.
- 03Defence programs advanced; cash stood at US$63m.
IperionX (ASX: IPX) has increased titanium powder production at its Virginia manufacturing campus while validating higher-capacity processing and advancing US defence customer programs.
The company produced 8.7 metric tonnes of titanium powder in the September quarter, up from 1.4t in the preceding period, and demonstrated furnace capacity above its 200 tonnes per annum target.
Its GenX continuous production technology also achieved an equivalent run rate of approximately 100tpa while substantially reducing energy and reagent consumption compared with the existing batch process.
Expansion work is supported by government manufacturing awards and a US$18.5 million US Army task order, while quarter-end cash reached US$63m following a US$50m equity raising.
Powder Capacity Enhanced
IperionX completed successive hydrogen-assisted metallothermic reduction furnace runs totalling 1.6t over 63 hours, equivalent to an annualised production rate of about 219tpa.
Most supporting process stages have reached the 200tpa operating benchmark, although powder drying must still achieve that rating before validation of the complete production system targeted for year-end.
The quarter closed with 19t of finished titanium powder and 207t of titanium scrap feedstock available for manufacturing and customer qualification.
Management is matching powder output to customer requirements rather than operating continuously at full rated capacity while existing inventory meets near-term demand.
GenX Processing Gains
GenX processed more than 500 kilograms (kg) of powder across four continuous campaigns totalling 41 hours, with all valid oxygen samples meeting applicable quality specifications.
On a comparable operating-time basis, the continuous system delivered six times the throughput of batch HAMR while consuming over 75% less power, over 45% less magnesium and over 60% less hydrogen per kg of powder.
Engineering work is now directed at integrating feedstock preparation, leaching, drying, and screening around the furnace to bring additional capacity online.
The continuous system is separate from the existing 200tpa ramp and the planned expansion to 1,400tpa, rather than a prerequisite for either program.
Defence Component Production
The first of two additional sintering furnaces was commissioned during the quarter, with the second installed and scheduled for commissioning in the December quarter.
In-house machining and thread rolling expanded as IperionX manufactured approximately 1,500 titanium fasteners and advanced track pins for American Rheinmetall Vehicles under a US Army prototype order.
The company completed titanium components for Carver Pump, which are undergoing customer testing for potential wider supply to US Navy pump contractors.
A further US Army Ground Vehicle Systems Center purchase order covers fasteners for the Joint Light Tactical Vehicle and trailer, following independent testing that showed performance exceeding the torque-to-yield benchmark for Grade 8 steel.
The new task order has US$11.5m initially funded and potential options lifting its total value to US$25.4m, with funding directed towards manufacturing equipment and industrial-scale processing capability.
Tennessee Platform Growth
In Tennessee, IperionX completed its US$3m acquisition of the adjacent Atlas assets, adding surface mineral stockpiles, pre-stripped ground and existing power, water, gas, and rail infrastructure to its Titan development plans.
The Titan definitive feasibility study outlined an after-tax net present value of US$813m and a 39.4% internal rate of return over an initial 14-year mine life, with an integrated Atlas-Titan economic assessment now under way.
Those study outcomes remain subject to development assumptions, financing and execution requirements, while the expanded project evaluation will assess whether Atlas infrastructure can reduce costs and accelerate development.
IperionX finished September with US$63m cash and US$33.7m in remaining obligated reimbursable government funding, giving approximately US$96.7m in combined cash and funding availability.
Net operating cash outflow for the quarter was US$12.6m, and the company continues progressing a proposed move to a Texas parent with a direct Nasdaq listing, subject to the necessary approvals.
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