Highlights

• Sunrise Energy Metals announced a 98% increase in scandium resources at Syerston to 19,007 tonnes.
• Ore reserves increased by 87%, supporting a 32-year mine life producing 60 tpa Sc₂O₃.
• The company secured a US$67m Letter of Intent from U.S. EXIM Bank, approximately half of the US$120m capex.
• This occurs amid China's export licensing restrictions on rare earth materials.
• C1 costs are at US$534/kg with granted mining permits in place.
• Syerston is positioned as a front-runner for non-Chinese scandium supply to the aerospace, defense, and semiconductor sectors.

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Sunrise Energy Metals (ASX: SRL, OTC: SREMF) reported (opens in a new tab) a 98% uplift in contained scandium at Syerston (NSW) to 19,007 t Sc @ 414 g/t (300 g/t cut-off), plus a 161% increase in the high-grade resource to 1,155 t Sc @ 665 g/t (600 g/t cut-off). The Ore Reserve rose 87% (2.0 Mt @ 644 ppm Sc), supporting a 32-year life producing ~60 tpa Sc₂O₃ at US$534/kg C1 with ~US$120m capex. Sunrise also received a U.S. EXIM Bank LOI up to US$67m (half of the estimated capex). Feasibility Study update due early 2026; cash A$12.05m (7.4 quarters runway).

What’s The Key Relevance

Scandium is the alloying key for lighter, stronger Al-Sc components in aerospace, defense, semiconductors, and batteries. With China imposing export licensing on REE-related materials in April/October 2025, Western buyers need a qualified, non-Chinese primary supply. Syerston sits on a granted mining lease with approvals and infrastructure—rare advantages for a specialty metal.

Numbers that move the needle

• MRE: 19,007 t Sc (M+I 90%+), high-grade 1,155 t Sc (M+I 99%+).
• ORE: 2.0 Mt @ 644 ppm Sc → ~60 tpa Sc₂O₃ over ~32 years.
• Costs/Capex: C1 US$534/kg Sc₂O₃; capex ~US$120m.
• Financing: EXIM LOI up to US$67m (due diligence pending).
• Cash: A$12.05m; options inflow ~A$3.0m this quarter.

Solid vs. Speculative

Solid: Independent Mining One updates; JORC-compliant MRE/ORE; permits/land/water in place; EXIM LOI under U.S.–Australia critical-minerals coordination; visible U.S. end-user engagement.

Speculative/assumptions: Price deck (US$1,500/kg Sc₂O₃ long-term), scale-up yields, and timing of metallization (including U.S. options). EXIM LOI is not a binding commitment; Sc pricing uplift from China’s licensing could normalize.

Investor Questions

1. Timeline and cap structure to close project finance (equity piece, offtakes, EXIM final credit).
2. Metallization route, qualification steps, and targeted customers beyond pilot volumes.
3. Sensitivity to Sc price ±25% vs. C1/All-in costs; ramp-up curve to 60 tpa.
4. Environmental/circularity plan for processing residues and reagent recycling.

Stock lens (SRL / SREMF)

Fundamental: Resource + reserve upgrades de-risk geology and extend life; EXIM LOI lowers financing friction. Key catalysts: FS (early 2026), binding offtakes, EXIM credit approval, and metallization JV.

Technical (high level): Expect event-driven volatility around FS/financing; watch for volume confirmation on ASX following resource/EXIM headlines and any U.S. end-user news.

REEx Take

Directionally positive for allied scandium supply; execution (finance, offtake, metallization, ramp) remains the gating factor. Sunrise is now a front-row candidate in the West’s specialty-alloy rebuild.

Source: Sunrise Energy Metals, Quarterly Activities Report, Oct 24, 2025.

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