Highlights

• ASM demonstrates significant progress in becoming a vertically integrated rare earth supplier through Korean Metals Plant expansion and innovative processing techniques.
• Successfully completed first heavy rare earth metal sales and secured purchase orders for NdFeB alloy and NdPr metal.
• Heap Leach Scoping Study reveals potential low-cost pathway for Dubbo project, bolstering company's strategic positioning in the critical metals market.

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As we catch up on our quarterly coverage, Rare Earth Exchanges highlights Australian Strategic Materials’ (ASM) (ASM.AX) recently-released Quarterly Activities Report (opens in a new tab) for the period ending 30 June 2025. The report marks a significant step forward in ASM’s transition from project developer to vertically integrated rare earth supplier.

Korean Metals Plant Gains Traction

ASM's Korean Metals Plant (opens in a new tab) (KMP) continues to build commercial credibility amid tightening global supply chains and China-linked export restrictions.

Key takeaways:

• 22.2 tonnes of NdFeB alloy are now under confirmed purchase orders.
• Delivery completed for 19 tonnes of NdPr metal previously announced.
• New 10-tonne NdPr metal order placed post-quarter.
• Most notably, first-ever sales of heavy REEs (terbium and dysprosium) reported after the quarter—suggesting KMP’s metallization capabilities are maturing beyond light REEs.

This performance positions ASM as one of the few non-Chinese producers with operational exposure to heavy rare earth metals (HREEs)—a niche with limited supply and high strategic value.

Dubbo’s Heap Leach Breakthrough

A Heap Leach Scoping Study, delivered just after the quarter, outlines a low-cost, low-capex route to unlocking the company’s Dubbo rare earth and critical minerals project in New South Wales. The study was propelled by “breakthrough metallurgical results” from the company’s internal Rare Earth Options Assessment.

If validated at scale, heap leaching could fast-track Dubbo’s transition to a producing asset and reduce ASM’s capital intensity—a key advantage in a market increasingly cautious about mega-projects with long timelines.

Balance Sheet Bolstered

ASM closed the quarter with A$19 million in cash, supported by a refinancing of Korean loan facilities. Following the quarter, the company raised an additional A$11.9 million through an oversubscribed Share Purchase Plan (SPP)—a testament to investor confidence amid market volatility.

Unanswered Questions for Investors

• Are KMP’s heavy REE sales a one-off or the start of recurring commercial production?
• What are the technical and regulatory risks tied to Dubbo’s heap leach process?
• Will further offtake agreements be disclosed to backstop long-term financing?

Bottom Line

ASM’s quarterly update is one of its strongest to date, with real commercial traction at KMP and promising cost-pathway evolution at Dubbo. But for the retail investor, execution and consistency remain key. Heavy REEs may be the next frontier—if ASM can scale.

Profile

Australian Strategic Materials (ASM) is an Australian company focused on becoming a vertically integrated producer of critical metals for advanced and clean technologies. They aim to integrate mining the Dubbo Project in New South Wales with downstream processing at their Korean Metals Plant to produce high-value metals and alloys. This strategy enables them to simplify and mitigate risk in the supply chain for global manufacturing industries.

Ian Jeffrey Gandel (opens in a new tab) (Non-Executive Chair) and family are the biggest shareholders with just over 19% of outstanding stock.

Mr Gandel is a successful Melbourne-based businessman with extensive experience in retail management and retail property. He has been a director of the Gandel Retail Trust and has been involved in the construction and leasing of Gandel shopping centres. He has previously been involved in the Priceline retail chain and the CEO of a serviced office chain.

Source: ASM Quarterly Activities Report to 30 June 2025