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AUZ Daily Timeframe Chart as of 28 April 2026
Australian Mines (ASX: AUZ) — Flemington Scandium Scoping Study Delivers Post-Tax NPV of US$860M at Market-Aligned Pricing
On 28 April 2026, Australian Mines Limited (ASX: AUZ) released the results of the SRK Consulting Scoping Study for its 100%-owned Flemington Scandium Project in central New South Wales. The study outlines a 28-year mine life producing 60 tonnes per annum of high-purity (99.9%) scandium oxide from three shallow, free-dig open pits, underpinned by a Mineral Resource of 6.3Mt at 446ppm Sc. At the mine design price of US$1,500/kg Sc₂O₃, the project generates a post-tax NPV₈ of approximately US$270 million and an IRR of 32%. At a market-aligned sensitivity price of US$3,000/kg Sc₂O₃, the post-tax NPV₈ increases to approximately US$860 million with an IRR of 74%. Initial capital is estimated at US$125 million, with a C1 cash cost of US$561/kg Sc₂O₃ and a breakeven price of US$815/kg. The study recommends advancement to Pre-Feasibility Study (PFS).
Key Details at a Glance
| Detail | Value |
|---|---|
| Project | Flemington Scandium Project, central NSW (100%-owned) |
| Study Prepared By | SRK Consulting (Australasia) Pty Ltd |
| Mineral Resource | 6.3Mt @ 446ppm Sc |
| Mine Life | 28 years |
| Production Rate | 60tpa Sc₂O₃ (high-purity 99.9%) |
| Processing | Hydrometallurgical (HPAL, SX, oxalate precipitation, calcination); 90.8% Sc recovery |
| Mining Method | Three shallow, free-dig open pits; stripping ratio 1.9:1 |
| Average Feed Grade | 573ppm Sc (first 15 years); 529ppm Sc (life-of-mine) |
| Total Ore Processed (LOM) | ~2.1Mt (55.8% Measured, 43.6% Indicated, 0.57% Inferred) |
| Initial Capital | ~US$125 million (±35% accuracy) |
| Sustaining Capital (LOM) | ~US$18.2 million |
| Closure Costs | ~US$42.0 million |
| C1 Cash Cost | US$561/kg Sc₂O₃ |
| Breakeven Price | US$815/kg Sc₂O₃ |
Flemington Scoping Study Economics — Mine Design Case vs Market-Aligned Sensitivity
The Scoping Study presents two pricing scenarios. The mine design case uses a conservative US$1,500/kg Sc₂O₃ price, consistent with pricing assumptions adopted in peer Australian scandium project studies including the neighbouring Syerston Scandium Project. The market-aligned sensitivity case uses US$3,000/kg Sc₂O₃, which the company presents for project valuation estimation purposes based on an internal market assessment.
| Scenario | Sc₂O₃ Price | Post-Tax NPV₈ | Post-Tax IRR |
|---|---|---|---|
| Mine Design Case | US$1,500/kg | ~US$270 million | 32% |
| Market-Aligned Sensitivity | US$3,000/kg | ~US$860 million | 74% |
Additional price sensitivities disclosed in the announcement:
| Sc₂O₃ Price | Post-Tax NPV₈ | Post-Tax IRR |
|---|---|---|
| US$2,000/kg | US$467 million | 46% |
| US$3,000/kg | US$860 million | 74% |
| US$4,000/kg | US$1,253 million | 99% |
| US$5,000/kg | US$1,646 million | 121% |
| US$6,000/kg | US$2,040 million | 143% |
The company cited several data points in support of the US$3,000/kg sensitivity price, including Chinese export controls on scandium introduced in 2025, the U.S. Defense Logistics Agency's announced intention to acquire up to 6.4 tonnes of high-purity Sc₂O₃ over five years for up to US$40 million (implying ~US$6,250/kg in a defence procurement context), and peer North American project evaluation prices of approximately US$3,700/kg referenced in the Syerston Feasibility Study. The company notes that the scandium market remains relatively immature and opaque, with limited transparent pricing data.
Flemington Project Overview — Mining, Processing and Location
The Flemington Scandium Project is located in central New South Wales, contiguous with the Syerston Scandium Project, within an established mining region with access to road networks and nearby mining services. The project features three shallow open pits with pit depths of approximately 40 metres, overall pit slope angles of approximately 30°, and free-dig mining suited to a small-scale contract mining model. Mining dilution of 5% and ore loss of 5% are assumed.
Processing uses a conventional hydrometallurgical flowsheet comprising HPAL (High Pressure Acid Leach), solvent extraction, oxalate precipitation, and calcination to produce 99.9% purity scandium oxide. The flowsheet achieves 90.8% scandium recovery. The study also includes recovery of nickel and cobalt into a mixed hydroxide precipitate as a by-product, though this contributes only approximately 4% of project revenue.
An additional ~410kt at 405ppm Sc is classified as waste in the current study but may be assessed in future studies for potential stockpiling and processing. If this material were excluded from waste movement, the effective stripping ratio would reduce from 1.9:1 to 1.4:1.
Market Context
AUZ closed at $0.026 on the announcement day, up +40.5% from a previous close of $0.018, with an intraday high of $0.027 — a new 52-week high. The 52-week range spans $0.006 to $0.027. The move occurred amid broader interest in critical minerals supply chains, with Chinese scandium export controls introduced in 2025 and U.S. defence procurement activity creating attention around Western-sourced scandium projects.
Risks & Considerations
Scoping Study level of confidence: The study is a Class 5 scoping-level estimate with ±35% accuracy on capital and operating costs. It is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case. Pre-Feasibility and Feasibility Studies are required before a development decision can be made.
Scandium pricing uncertainty: Project economics are highly sensitive to the assumed Sc₂O₃ price. The US$3,000/kg market-aligned scenario is a sensitivity, not a price forecast. The scandium market is immature and opaque with limited transparent pricing data. The mine design case at US$1,500/kg generates a significantly lower NPV₈ of US$270 million compared to US$860 million at the sensitivity price.
Funding risk: Pre-production capital of approximately US$125 million will be required. AUZ is a micro-cap explorer and there is no certainty this funding can be raised. The company notes funding may be dilutive, and alternative strategies such as partial sale or joint venture may be pursued, which could reduce AUZ's proportionate ownership.
Limited metallurgical testwork: The Scoping Study identified limited project-specific testwork as a key risk. The 90.8% recovery assumption is based on the current dataset and will require further validation through additional metallurgical programs.
Water supply: Water supply has been identified as a key area for further de-risking in future study phases. Hydrogeological investigations are required.
No offtake agreements: The project has no binding offtake or customer agreements. Scandium is a niche market and commercial engagement with end-users has not yet commenced.
Permitting: The project is at an early stage and will require environmental baseline studies, permitting activities, and regulatory approvals before development can proceed. Preliminary environmental and social assessments did not identify issues likely to prevent development, but further work is needed.
Inferred Resource component: While the Inferred Mineral Resource component is small (0.57% of the production target) and does not materially feature early in the mine plan, there is a low level of geological confidence associated with this classification.
Key Dates & Timeline
| Date | Event |
|---|---|
| January 2025 | Flemington Mineral Resource Statement — 6.3Mt @ 446ppm Sc |
| 15 April 2026 | SRK Scoping Study completed (Q1 2026 base date) |
| 28 April 2026 | Scoping Study results released to ASX; share price moved +40.5% |
| TBC | Additional metallurgical testwork program |
| TBC | Environmental baseline studies and hydrogeological investigations |
| TBC | Pre-Feasibility Study (PFS) — recommended as next phase |
Price Data
- Previous Close: $0.018
- Close Price (28 April 2026): $0.026
- Change (28 April 2026): +40.5%
- 52-Week Range: $0.006 – $0.027
Notable Price Levels
- $0.027 — 52-week high, set intraday on 28 April 2026
- $0.019 — intermediate level between pre-announcement trading range and announcement-day close
- $0.014 — prior consolidation zone
- $0.012 — lower range of recent trading activity
Key Takeaways
- AUZ moved +40.5% on 28 April 2026 following a price-sensitive ASX disclosure.
- The announcement — Flemington delivers standout Scoping Study economics — was the primary catalyst for the price movement.
- The SRK Scoping Study outlines a 28-year, 60tpa Sc₂O₃ operation from the Flemington Scandium Project in central NSW, with initial capital of ~US$125 million, C1 cash costs of US$561/kg, and a breakeven price of US$815/kg.
- At the mine design price of US$1,500/kg Sc₂O₃, the project generates a post-tax NPV₈ of ~US$270 million and IRR of 32%. At the market-aligned sensitivity price of US$3,000/kg, the NPV₈ increases to ~US$860 million with a 74% IRR.
- The study is a Class 5 scoping-level estimate (±35% accuracy) and is insufficient to support Ore Reserve estimation. Pre-Feasibility Study has been recommended as the next phase.
- The scandium market remains immature and opaque. The US$3,000/kg sensitivity price is not a forecast, and project economics are highly sensitive to the Sc₂O₃ price assumption.
Summary
Australian Mines released the SRK Consulting Scoping Study for its Flemington Scandium Project in central New South Wales, outlining a 28-year mine life producing 60tpa of 99.9% purity scandium oxide from three shallow, free-dig open pits. The study reports initial capital of ~US$125 million, C1 cash costs of US$561/kg Sc₂O₃, and a post-tax NPV₈ ranging from ~US$270 million at the mine design price of US$1,500/kg to ~US$860 million at a market-aligned sensitivity price of US$3,000/kg. The announcement coincided with a +40.5% move to $0.026. The study is a Class 5 scoping-level estimate with ±35% accuracy and recommends advancement to Pre-Feasibility Study. Key areas requiring further work include additional metallurgical testwork, water supply definition, environmental baseline studies, and market and customer engagement. The project has no offtake agreements and approximately US$125 million in pre-production funding will need to be secured.
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