Osmond Resources Eyes EU Rare Earths Crown With US$2.3bn NPV Scoping Study

Orión scoping study delivers US$2.31bn NPV and 145% IRR

Osmond Resources (ASX: OSM) has announced compelling outcomes from the Scoping Study for its Orión EU Critical Minerals Project, located in Jaén Province, Andalucía, Southern Spain, approximately 235km south of Madrid. The Study returns a post-tax NPV8 of US$2.31bn and a post-tax IRR of 145% (ungeared, 100% Project basis), on an initial capital cost of just US$299m inclusive of a 25% contingency.

The Study is built on a maiden Mineral Resource Estimate (MRE) of 60.0Mt at 16.2% total heavy minerals (THM), announced on 30 September 2026. OSM’s objective is to become the first producer of rare earth-bearing monazite, zircon–hafnium and titanium minerals in the EU — a forward-looking ambition, not a confirmed achieved position. Following completion of the Scoping Study, OSM holds an 80% interest in 95% of the Project, for a 76% beneficial interest.

Investors should note this is a Class 5 estimate with ±35% accuracy, suitable for preliminary project evaluation. No Ore Reserves have been declared, and there is no certainty the production target or economic outcomes will be realised.

Key Scoping Study metrics at a glance

The table below presents the core financial outcomes across three scenarios: the Base Case (using Argus rare earth oxide and TZMI mineral sands forecasts), the Spot Case (using August 2026 reference prices), and the MREO Case (payable on magnetic rare earth oxides only).

Module 1 operating highlights at a glance:

• Plant throughput: 2Mtpa (Module 1)
• Initial mine life: 9 years
• Initial Capex: US$299m (±35%, inclusive of 25% contingency)
• LOM C1 cash cost net of by-product credits: -US$12.67/t ROM (a negative figure — the zircon and titanium by-product revenues are projected to more than cover the cost of producing the rare earth concentrate)
• FCF payback from first production: 6 months

Why the EU needs Orión — the critical minerals context

The EU’s supply gap in rare earths, zircon and titanium

Rare earth elements (REEs) such as neodymium, praseodymium (NdPr), dysprosium and terbium are the essential inputs for the permanent magnets that power EV motors, wind turbines, defence systems and industrial automation. Zircon is irreplaceable in nuclear fuel cladding, ceramics and advanced semiconductors. Titanium is the structural metal of choice for aerospace, defence and medical applications.

The EU currently imports virtually all of these materials, with rare earths sourced predominantly from China. In April 2025, China introduced export licensing requirements covering seven rare earth elements, including samarium, gadolinium, terbium, dysprosium and yttrium, demonstrating in concrete terms what supply dependence on a single country looks like when that leverage is exercised. The EU currently has no rare earth mine production.

What the EU Critical Raw Materials Act means for Orión

The EU Critical Raw Materials Act (CRMA), which entered into force on 23 May 2024, establishes binding benchmarks for the EU’s supply of strategic raw materials by 2030: at least 10% of annual consumption to be mined domestically, 40% processed within the EU, and 25% sourced from recycling. Every one of Orión’s commodity streams is formally designated under the CRMA — light and heavy rare earth elements (with rare earths for magnets classified as Strategic Raw Materials), hafnium as a Critical Raw Material, and titanium metal as both a Critical and a Strategic Raw Material.

Module 1 alone is estimated to equate to approximately 6% of forecast 2030 EU NdPr demand, approximately 24% of zirconium demand, and approximately 8% of titanium feedstock demand. The extraction benchmark is the hardest CRMA target to meet, because the EU currently mines essentially none of these materials. Following completion of the Scoping Study, OSM intends to apply for EU Strategic Project status, which offers streamlined permitting capped at a maximum of 27 months for extraction projects.

What the mine will look like — project design and economics

Underground room and pillar mining with minimal surface disturbance

The Study evaluates an owner-operated underground room and pillar mine, accessed by decline, targeting the high-grade Main Seam over an initial 9-year mine life. The underground design virtually eliminates surface disturbance, with filtered tailings backfilled underground rather than stored at surface.

The maiden Mineral Resource Estimate underpinning the Scoping Study covers a footprint of just 7.9 km², representing approximately 3.4% of the 232 km² project area, with the higher-grade Main Seam alone delivering 49.7 Mt at 10.29% TiO2 and a 17.9% VHM grade.

The three concentrate products targeted are:

1. Monazite concentrate — 42ktpa at 22.6% TREO
2. Zircon concentrate — 68ktpa at 64.1% ZrO2
3. Titanium mineral concentrate — 109ktpa at 71.3% TiO2

Construction is expected to take 24 months, with first production targeted in 2030.

The economics that set Orión apart

The most distinctive feature of Orión’s cost structure is the projected Life-of-Mine C1 cash cost of -US$12.67/t ROM — a negative figure, because the revenues from the zircon and titanium concentrate streams are projected to more than cover the cost of mining and processing the rare earth concentrate. This positions the Project as a potentially industry-leading rare earth producer on cost, though these are preliminary estimates subject to Scoping Study accuracy (±35%).

The NPV8-to-Capex ratio of 7.7x in the Base Case points to strong projected capital efficiency relative to the upfront investment. Even when the Study is run on Measured and Indicated Mineral Resources alone (excluding Inferred), it returns an estimated post-tax NPV8 of approximately US$1,706m and an IRR of 137%, retaining approximately 74% of the base-case NPV8.

What comes next — catalysts and growth pipeline

OSM’s stated next steps, as disclosed in the announcement, include:

• 13-hole drilling campaign expected to commence shortly, targeting resource confidence upgrades and resource size increase
• Updated Mineral Resource Estimate following drilling
• Updated Scoping Study incorporating the upgraded MRE
• PFS-level metallurgical testwork already underway at Nagrom, targeting premium-grade zircon (~66% ZrO2), a near-pure rutile stream, and an upgraded monazite concentrate
• Applications for Andalusian, Spanish and EU project support schemes, including Spain’s €150m critical minerals exploration fund
• Downstream initiative progress: rare earth oxide (MREC/MREO) studies continuing with Técnicas Reunidas, the leading company in the EU’s PERMANET permanent-magnet value chain project
• Secondary listing on the Bolsa de Madrid (BME) targeted in the short term

One of the most important contextual points for investors is that the current MRE covers only approximately 3.4% of the Company’s approximately 232km² tenure. The drilling programme is designed to test whether the resource can be grown substantially across the broader landholding. The modular 2Mtpa plant design is intended to allow staged capacity expansion subject to drilling success, though any expansion would depend on the estimation of additional Mineral Resources and further technical and economic studies — there is no certainty this will occur.

The 10km mineralised corridor confirmed at Orión by final Phase 1 assays frames the scale of what the current MRE footprint of 7.9 km² has only begun to characterise, making the upcoming 13-hole drilling campaign one of the more consequential near-term catalysts for the project.

The Company estimates that pre-production funding in the order of approximately US$300m will likely be required for commercial-scale operations, and investors should note there is no certainty the Company will be able to raise that amount when needed.

Ready to Explore the Orión EU Critical Minerals Project in More Detail?

With a post-tax NPV8 of US$2.31bn, a 145% IRR, and a projected six-month payback from first production, the Orión Project is positioning Osmond Resources as a potential cornerstone supplier of rare earths, zircon and titanium to a minerals-starved European market.

Discover the full financial metrics, project design and upcoming catalysts by visiting the Osmond Resources investor profile on Discovery Alert, where you can track the company’s progress as it advances towards its next drilling campaign and PFS-level testwork.