Lindian announced a funding term sheet and offtake agreement for US$20 million with Iluka Resources. Could you comment on the significance of this milestone for Kangankunde’s development?

The strategic partnership with Iluka, announced on 6 August, delivered 50% of our Stage 1 capital requirement via a US$20 million construction term loan and a 15-year offtake agreement for 6,000 t/y of rare earth monazite concentrate from Kangankunde. Iluka also holds a right of first refusal over 25,000 t/y of Stage 2 production, subject to funding 50% of Stage 2 capital costs. Material from Kangankunde will feed into Iluka’s Eneabba Rare Earths Refinery in Western Australia. The Iluka agreement was critical turning point for Lindian, providing market validation and credibility with tier-one customers. 

Shortly after, we raised A$91.5 million through an oversubscribed institutional placement, enabling the Board to approve the Final Investment Decision for Stage 1 construction. With funding now secured through until first cash flows, Lindian will become the next rare earths producer to market, targeting first production in Q4 2026.

Since the offtake agreement, we’ve had our approved mining license area expanded from 900 to 2,500 hectares, appointed DRA Pacific to complete the Stage 2 expansion study, adopted an owner-operator mining model, and completed early works on time and on budget.

What makes Kangankunde particularly attractive for financing in today’s market?

Kangankunde is set to become one of only a handful of rare earth mines built outside China.  Our project benefits from a simple flowsheet, a near-zero strip ratio of 0:0.2, and a straightforward processing route involving magnetic separation, gravity, grinding, crushing, and screening, without the use of toxic chemicals. 

The capital intensity is remarkably low: just US$40 million in CapEx. With this combination of low costs, simplicity, and speed to market, Lindian is uniquely positioned to capture significant market share before any other potential developers enter the market.

What are the obstacles to financing an REE project in Africa?

The main challenges usually come down to perceived country risk and infrastructure. The Iluka partnership really anchored that for us. The first piece of financing is always the hardest, but once you’ve got a cornerstone clients like Iluka in place, the rest follows. 

Could you walk us through the development plan and the timeline to first concentrate?

The first thing we did was sign a contract with Mota-Engil for early works to construct our service road to the main highway roads, from site; during this contract we have also managed  to  constructed ROM pads, some internal roads, security buildings, fencing, and started the haul roads in preparation for the plant to be constructed. Those early works are now complete and were delivered on time and on budget. We also recently announced that we are adopting an owner-operator mining model. Under this model, we are now targeting the start of mining in February 2026 which will enable earlier access to stockpiled high-grade ore. The mining fleet has been procured and will include Komatsu haulage, loading and earth moving units plus a Sandvik drill rigs, with majority of the fleet is available now with the balance due January 2026 allowing us an immediate start. 

In parallel, Zac Komur has been actively optimising our current Feasibility Study. The ore body supports a 45-year LOM under the current JORC code, but realistically, it probably has a couple of centuries of production ahead of it. Kangankunde is currently built at 15,300 t/y, but even at 100,000 t/y, it will still produce for decades.

What sort of rerate do you expect once Kangankunde enters production?

As of today, 9 October 2025, we’re sitting at a ~A$590 million market cap with a great deal of positive work to come. Realistically, we see Lindian becoming a multi billion-dollar company in the short-medium term once we have achieve some further documented goals. 

Has the Malawi government been supportive in this journey?

The Malawian government  has been extremely professional to deal with . The government sees mining as a way to enrich the country, through contributions to tax and GDP, but also skills development. As part of our government agreement, we will be running training programs and allocating funding for local communities. Malawi is highly under-explored, so it is crucial to start building those foundations to allow the industry to grow. Malawi is a very stable and safe country, with friendly people who are happy to see us progressing a project that will benefit all..