HyProMag Usa Provides Positive Update to Valuation of Expanded Dallas-Fort Worth Plant and Commences Strategic Review to Explore a U.S. Listing

Executive Summary

• HyProMag USA expanded the Texas Hub’s magnet production capacity to 941 t/yr of recycled NdFeB magnets (total payable capacity 1,552 t/yr) and raised post‑tax NPV to US$409 M (current prices) / US$780 M (forecast prices).
• The updated Class 2 AACE capital cost estimate shows total initial capex of US$142 M (up from US$135 M) with a 3.1‑year payback at current prices and 2.2‑year payback at forecast prices.
• HyProMag USA has begun a strategic review for a possible separate U.S. listing in late 2026 or early 2027, contingent on project execution and regulatory approvals.

Key Details

• Project Valuation:
• Post‑tax NPV US$409 M (current market prices) – IRR 27.6%
• Post‑tax NPV US$780 M (forecast market prices) – IRR 38.7%
• Production Capacity:
• 941 metric tons per annum of recycled sintered NdFeB magnets
• 611 metric tons per annum of NdFeB alloy co‑products
• Total payable capacity: 1,552 t/yr over a 40‑year life
• Cost & Economics:
• All‑in sustaining cost (AISC): US$22.3 /kg NdFeB (vs. market price US$56.8 /kg)
• Initial capex: US$142 M (includes 8.2% contingency, detailed design and engineering costs)
• Payback period: 3.1 years at current prices (PI = 2.89); 2.2 years at forecast prices (PI = 5.5)
• Scalability: Design allows addition of two furnaces within three years for an extra US$3 M capex, increasing capacity further.
• Employment Impact: Expected creation of 90‑100 skilled magnet manufacturing jobs in Texas.
• Carbon Footprint: Independent ISO‑compliant study shows 2.35 kg CO₂‑eq per kg of NdFeB sintered block product.
• Engineering Progress: Detailed Design ~30% complete; led by PegasusTSI (U.S.) and BBA USA (Canada) with University of Birmingham support.
• Feedstock Security: Ongoing partnership with Intelligent Lifecycle Solutions (ILS) to secure feedstock supply.
• Potential U.S. Listing:
• Owners (CoTec Holdings Corp. & Mkango Resources Ltd.) evaluating separate U.S. listing for HyProMag USA.
• Timeline: no earlier than late 2026 or early 2027, subject to successful project execution and regulatory clearance.

Notable Quotes

• Julian Treger, CoTec CEO: “We are very pleased with the results of the Detailed Design… The Project provides a unique opportunity for the U.S. to partially address its dependence on foreign‑supplied rare earth magnets… Our focus is now on securing sufficient feedstock and the necessary finance to commence construction.”

All forward‑looking statements are subject to risks and uncertainties detailed in CoTec’s filings.