Osmond Resources study projects US$2.31B value

• Osmond Resources released a scoping study for its Orión Project in Spain, projecting a post-tax net present value of US$2.31 billion.
• Initial development costs are estimated at US$299 million, featuring an expected payback period of six months and a 145% internal rate of return.
• The business aims to supply critical raw materials to European Union markets, meeting local demand for rare earths, zirconium, and titanium.

Osmond Resources (ASX:OSM) completed a scoping study for its Orión Project in Spain, projecting an unlevered post-tax net present value of US$2.31 billion.

The economic evaluation outlines an initial development phase targeting average earnings before interest, taxes, depreciation, and amortisation of US$531 million per year.

The company stated that the project requires US$299 million in upfront capital expenditure, which includes a 25% contingency buffer.

Osmond Resources reported that initial annual production from Module 1 would fulfil approximately 6% of the forecast 2030 European Union demand for neodymium and praseodymium.

Following the announcement, the Osmond Resources share price was down at $0.60.

The Australian exploration company holds a beneficial interest in the Orión Critical Minerals Project located in southern Spain.

The group plans to advance additional metallurgical testwork while seeking project support under European critical raw materials initiatives.