HyProMag USA Study Maps Fourfold Magnet Capacity Expansion, US$2.1B Incremental NPV
CTHCF sits 20% above its 52-week low of $0.731.
Summary
CoTec's 50:50 joint venture HyProMag USA released an independent pre-feasibility study by PegasusTSI and BBA USA for three new rare earth magnet plants plus a Central Texas finishing hub, on top of the Northlake, Texas facility now in detailed engineering. The study puts incremental post-tax NPV at US$1.85 billion to US$2.06 billion with a 31% to 36% post-tax IRR, on capital costs of roughly US$623 million to US$656 million and payback of 2.3 to 3 years. Including Northlake, the combined platform NPV is estimated at US$2.6 billion to US$2.8 billion, and magnet output would reach about 4,192 metric tons per year by 2034 versus roughly 1,048 metric tons at Northlake alone. The offsetting detail is Northlake's own post-tax NPV, cut to about US$723 million from US$797 million on a later construction timetable and higher costs, with Phase 1 commissioning still targeted for mid-2028. For a company of CoTec's size these are large projected numbers, but they are study-stage economics years from production and the expansion still needs to advance to a feasibility study.
At the time of this announcement, CTHCF was trading at $0.88 on OTC in the Manufacturing sector, with a market capitalization of approximately $106.2M. The 52-week trading range was $0.73 to $2.70. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: ACCESS Newswire.