It has been a rough session for IperionX Ltd (ASX: IPX) shares on Thursday.
The S&P/ASX 300 Index (ASX: XKO) critical minerals stock is sliding even after releasing a major update on its US project.
At the time of writing, the IperionX share price is down 10.30% to $5.31.
Today's weakness follows a strong run for the stock. IperionX shares are still up around 18% in a month and 43% over the past year.
Here's what was in the update.
Image source: Getty Images
A big US project update
According to the release, IperionX has completed the definitive feasibility study for its Titan Critical Minerals Project in Tennessee.
The project is designed to produce titanium minerals, zircon concentrate, and heavy rare earth concentrate from the McNairy Formation.
IperionX said the DFS showed an after-tax net present value of US$813 million, an after-tax internal rate of return of 39%, and a payback period of 3.6 years.
It also forecast life-of-mine EBITDA of US$2.8 billion and after-tax free cash flow of US$1.9 billion.
The project has a 14-year mine plan and is expected to be developed in stages. Phase 1 development capital is estimated at US$228 million, while Phase 2 requires a further US$153.2 million.
That brings total development capital to US$381.3 million.
The maiden ore reserve was another major part of the update. Titan has a reserve of 117 million tonnes at 3.2% total heavy minerals.
IperionX said this includes about 3.7 million tonnes of heavy minerals.
Why the US wants projects like Titan
IperionX is positioning Titan as a domestic US source of critical mineral feedstocks at a time when supply chains remain sensitive.
The project is expected to produce heavy rare earth concentrate, titanium minerals, and zircon concentrate.
At Phase 2, annual production is forecast to include 5,287 tonnes of heavy rare earth concentrate, 118,658 tonnes of ilmenite, 24,656 tonnes of rutile, and 65,668 tonnes of zircon concentrate.
IperionX said they have potential uses across defence, aerospace, energy, robotics, semiconductors, and advanced manufacturing.
Titan is also located near road, rail, power, water, and gas infrastructure in Tennessee.
Why are the shares falling?
Today's fall looks like a mix of profit-taking and caution around what comes next.
IperionX shares had already climbed 45% over the past year, so some investors may have used the DFS as a chance to lock in gains.
The project numbers are large, but Titan still needs US$381.3 million in total development capital across Phase 1 and Phase 2.
The next test is whether IperionX can secure funding and turn the study into a working project.
