NTU - Quarterly Reports

[John]

https://yourir.info/resources/f912a...6A1262275/NTU_Quarterly_Activities_Report.pdf
https://yourir.info/resources/f912a.../6A1262266/NTU_Quarterly_Cash_Flow_Report.pdf

​

Northern Minerals (ASX: NTU) just lodged its March 2025 quarterly with some key takeaways for investors keeping an eye on heavy rare earths:

• $29.5 million in cash at 31 March 2025
• Quarterly burn rate: ~$5.8 million
• Estimated cash runway: ~5 quarters (i.e. until mid-2026)
• No unused debt facilities. The existing $15M convertible note from Iluka is fully drawn.

The Feasibility Study is fully funded and on track for release by June 30, 2025.

• Total raised from equity in FY25 YTD: $45.4M, mostly from the two-tranche placement finalised this quarter
• Zero debt repayments due in short term, but discussions are ongoing with Iluka to extend convertible note terms.
• According to this quarterly....the Iluka divestment (forced sale of ~10% stake by Treasurer) has now been completed. See my previous post...this is a joke and a deal breaker for me to invest.
• Operating cost breakdown this quarter:
  • Exploration & Evaluation: $1.89M
  • Development: $2.33M
  • Staff + Admin: ~$1.93M combined

What to Watch Next​

• Delivery of the Feasibility Study by June 30 – this is critical to unlocking debt funding from NAIF and EFA.
• Any updates on Iluka note renegotiation.
• Potential uplift in valuation as global heavy rare earth tensions (Dy/Tb) escalate due to China's export controls
• And those pesky Chinese investors that wont exit stage left....

Anyone got any more insights that i missed?
Anyone invested in NTU?

 

[John]

Hey @Fundamental and @Mumbles2025

Have you guys done much research on NTU?

 

[Fundamental]

Hey @Fundamental and @Mumbles2025

Have you guys done much research on NTU?

I have looked at it a couple of times, mainly because the Geology is completely different to the standard carbonatite Intrusion model. The mineralisation at Browns appears to be controlled by contact metamorphism and structure. As such the deposit has lateral extent and depth but is limited in width. Tonnages will therefore be low, if compared to those monster deposits at the top of REEx's rankings. But as a high value HREE deposit it will certainly have its place as a producer. I consider it similar to a high-grade underground gold mine vs a big low-grade open cut operation.

The deposit is fairly remote, so logistics are going to be costly, and getting between 1/2 and 1 metre of rain every Wet season will test people's determination. but on the plus side, having Iluka to do the processing is a significant bonus.

 

[John]

I note they have Nick Curtis (i'm going to say founder of Lynas) on their board too. I have been trying to reach out to him, but have not heard back yet.

Is the Iluka processing a done deal?

 

[ashentegra]

I am an investor in NTU:ASX. Why?

Its Wolverine deposit is globally one of the highest grade Dy Tb deposits, ex-China. It might well be the best.

It is fully-permitted, process-proven after a physical trial on-site and now an X-ray sorter incorporated in the flow-sheet. Mining will be by open-cut and decline to underground, with both set to begin simultaneously. Mineralisation begins just below ground level.

NTU its eligible for financial assistance from the Northern Australia Infrastructure Fund and Export Finance Australia. Illuka's Eneabba REE refinery, under construction, will be much less profitable processing only ILU's Monazite.

ILU owns 19.9% of NTU.

Have a look at the 5 June 2025 presentation:

https://www.listcorp.com/asx/ntu/northern-minerals-limited/news/ntu-company-presentation-june-2025-3198285.html

China has been doing everything in its power to stymie NTU, including through owning 48% of it. Australian Treasurer Dr Jim Chalmers ordered them to divest, which they did to Aunty Wu and Uncle Chin.

Anyway, it is a fascinating journey. When the Western allies finally get their act together, Wolverine will be high on their list to assist.

Ash

 

[John]

I am an investor in NTU:ASX. Why?

Its Wolverine deposit is globally one of the highest grade Dy Tb deposits, ex-China. It might well be the best.

It is fully-permitted, process-proven after a physical trial on-site and now an X-ray sorter incorporated in the flow-sheet. Mining will be by open-cut and decline to underground, with both set to begin simultaneously. Mineralisation begins just below ground level.

NTU its eligible for financial assistance from the Northern Australia Infrastructure Fund and Export Finance Australia. Illuka's Eneabba REE refinery, under construction, will be much less profitable processing only ILU's Monazite.

ILU owns 19.9% of NTU.

Have a look at the 5 June 2025 presentation:

https://www.listcorp.com/asx/ntu/northern-minerals-limited/news/ntu-company-presentation-june-2025-3198285.html

China has been doing everything in its power to stymie NTU, including through owning 48% of it. Australian Treasurer Dr Jim Chalmers ordered them to divest, which they did to Aunty Wu and Uncle Chin.

Anyway, it is a fascinating journey. When the Western allies finally get their act together, Wolverine will be high on their list to assist.

Ash

Hi @ashentegra

Good to see you here on REEx.

Yeah NTU is on my short list. I'm amazed on HC how the trolls just attack any slightly positive comment on NTU. There is a particular poster who appears to have been hiding their true identity. Some expert that seems to be working to a paid agenda. But they keep saying that NTU is low grade. How can they be so blatent?

In my reseach, the expected mine life is about 11 years which is kinda short, but NTU has many many deposits. Do we know much about the other deposits? I assume NTU will then just progress these other depoists...is that all part of the long term plan?


And the following updates are expected shortly and will really define if NTU goes ahead:
- Updated DFS (Q2 2025) - Will it say that the project is more/less economic than before.
- Dazzlet Deposit - Resource Update (mid 2025)
- Quarterly - (Late July 2025)
- Coomarie Dome Deposit - Resource Update (H2 2025)

NTU has approx 12-16 months of cashflow (really rough estimate and could be extended if cost cut). So not likley to have a Cap Raise...unless they are progressing a FEED? Or do you think they will go straight to FID....I mean they have done a great deal of work on site proving the processes. They have about $8 million in the bank...and a FEED would cost about $3-5 million...so they would have to do a cap raise for that.....but like I said...do they need it? And more imporantly...does finance need it? That is what annoyed me on ARU, that the finance required massive contingencies...even with all the work that had been done including FEED.

Personally, i'm trying to time my entry...and i want to know they are going straight to FID soon....and no more fluffing around. I have had enough of that on ARU. Ha.

Hey @ashentegra have you done your own NPV analysis on the NTU business? And any dilution anlysis for the likely financing structures? It has been on my list to do...but just have not had time. Do you have any idea on what the retail portion of the financing would be? Circa 25%?

 

[ashentegra]

Hi John,

Many questions there. I urge y'all to study the presentation, linked above.

While Wolverine is a gem, vicinity exploration has only revealed small deposits - so far. NTU has 5,600km2 (that is not a typo) REE exploration permits across WA/NT.

The presentation says: "DFS update due Q2 2025, project funding discussions underway" (slide 3). That is within the next 3 weeks.

Today, the price rose 20% to 3.6c on the Reuters story - Auto companies 'in full panic' over rare-earths bottleneck. Now back to 3.5c.

It is clear ALL Western governments will have to contribute to standing up REE chains in competition with China or be held to ransom. National interests are entirely secondary.

I expect concessional loans plus direct grants - the equity base of the REE sector is clearly insufficient for the task.

Ash