IperionX(IPX) - 2026 Q2 - Quarterly Report

Financial Performance - For the six months ended December 31, 2025, IperionX reported a loss of $34,768,116, compared to a loss of $16,236,871 for the same period in 2024, representing a 114% increase in losses year-over-year[5] - The company reported a total comprehensive loss of $33,461,270 for the six months ended December 31, 2025, compared to $21,129,105 for the same period in 2024, a 58% increase[5] - The company’s cash flows used in operating activities amounted to $16,702,754 for the six months ended December 31, 2025, compared to $11,748,806 in 2024, a 42% increase[9] - The Group reported net outflows from operating and investing activities of US$(33.1) million for the six months ended December 31, 2025, compared to US$(22.7) million in 2024[18] Research and Development - Research and development costs increased to $10,785,188 in 2025 from $6,809,195 in 2024, reflecting a 58% rise[5] - IperionX's exploration and evaluation expenses increased to $3,298,759 in 2025 from $1,393,608 in 2024, a 137% increase[5] Assets and Equity - Total assets as of December 31, 2025, were $129,156,114, up from $105,034,979 as of June 30, 2024, indicating a 23% increase[6] - The company’s total equity rose to $108,201,890 as of December 31, 2025, from $92,443,999 as of June 30, 2024, reflecting a 17% increase[6] - As of December 31, 2025, total trade and other receivables amounted to US$1,154,337, up from US$823,268 on June 30, 2025[30] - Total trade and other payables increased to US$10,367,158 as of December 31, 2025, compared to US$7,489,397 on June 30, 2025[39] - The carrying amount of property, plant, and equipment increased to US$35,936,076 as of December 31, 2025, from US$25,197,638 on June 30, 2025[33] - The carrying amount of exploration and evaluation assets for the Titan Project rose to US$7,515,238 as of December 31, 2025, from US$6,512,326 on June 30, 2025[36] Shareholder Information - The Company completed the placement of 14 million new fully paid ordinary shares at A$5.00 per share, raising gross proceeds of A$70 million (approximately US$46.0 million) before costs[19] - The company raised gross proceeds of approximately US$46 million by issuing 14,000,000 new fully paid ordinary shares at A$5.00 per share on October 10, 2025[42] - As of December 31, 2025, the company had a closing balance of 336,322,679 ordinary shares issued and outstanding, an increase from 315,846,248 shares as of December 31, 2024[42][44] - The share-based payments reserve increased to US$10,345,002 as of December 31, 2025, up from US$6,469,201 at June 30, 2025[45] - The share-based payments reserve saw a significant reduction in unlisted options, dropping from 12,904,118 to 3,020,839 during the six months ended December 31, 2025[46] Government Funding and Contracts - The Company received US$59.8 million in awards under U.S. government funding programs, with US$55.2 million obligated under contracts as of December 31, 2025[22] - The Company executed a US$12.7 million contract under the U.S. Department of War DPA Title III authorities, matched with US$13.4 million from the Company, totaling US$26.1 million for the Titanium Production Facility in Virginia[23] - The Company was awarded up to US$47.1 million by the U.S. Department of War to strengthen the U.S. Defense Industrial Base, matched with US$49.2 million from the Company, totaling US$96.3 million[25] - The U.S. Department of War obligated a total of US$42.5 million under a US$47.1 million award to support the company's titanium supply chain scale-up[50][51] Operational Developments - The company is focused on developing titanium metal technologies and aims to support advanced industries including aerospace and automotive[11] - IperionX is operating a U.S.-based integrated titanium business to establish a sustainable titanium supply chain[12] - The company received approximately 290 metric tons of high-quality titanium alloy scrap metal from the U.S. Government, equivalent to about 1.5 years' worth of titanium feedstocks at current operating capacity[53] - A prototype purchase order worth US$0.3 million was received from American Rheinmetall for producing 700 lightweight titanium components for U.S. Army systems, with potential for larger agreements[54] Subsidiaries and Future Outlook - The company has 100% equity interest in its subsidiaries, including Hyperion Metals and IperionX Critical Minerals LLC, as of December 31, 2025[47] - No significant matters have arisen since December 31, 2025, that could affect the company's operations or financial results in subsequent years[55]