November Report

As mentioned in last month’s report, IperionX was impacted by a short seller’s report, falling 23%, which the company firmly rebutted. In addition, broker Petra visited the company’s Virginia facility and released a very positive and detailed report that also countered much of the short thesis. We believe the current market cap of USD 1.1bn is a bargain. The Titan mining project alone has an NPV of USD 700m, is already approved, and is rich in heavy rare earths, which are in much shorter supply than light rare earths. A Bloomberg article on 4 December reported that the US government expects to take equity stakes in more mining projects, similar to the deal it did with MP Materials. We believe IperionX is well positioned on this front, with the US Department of War currently funding a definitive feasibility Study expected in 1H 2026. Petra also released a positive report on the Titan project on 10 December, highlighting how it has moved from being an option to a core asset.

Clarity Pharmaceuticals fell 26% on little news. We expect more data in Q1 from both the Co-PSMA study, comparing Clarity and Telix prostate cancer diagnostics, and the SECURE prostate cancer therapeutic study, each of which could be significant catalysts. In the best-case scenario, the company could receive FDA approval for its prostate cancer diagnostic in early 2027, although late 2027 or 2028 appears more likely. The prostate cancer diagnostic market—dominated by Telix and Lantheus—is currently USD 2.5bn and is expected to grow to USD 3bn over the next two years. We believe a 10% market share should be achievable, which would value the company substantially above its current AUD 1bn market cap.

Brazilian Rare Earths fell 24%, also on limited news. As noted last month, the current market value of around AUD 1bn appears very attractive given the company’s AUD 200m in cash, a bauxite deposit worth approximately AUD 900m, and ownership of the richest rare earth deposit on the planet. Sunrise Energy, listed in Australia as a pure-play scandium asset with a grade of 1,000ppm, is now valued at AUD 850m. Scandium has three major uses: fuel cells that produce electricity from natural gas or hydrogen; strengthening aluminium, including enabling 3D printing; and piezoelectric filters used in advanced mobile networks to isolate required frequencies from high-frequency radio waves. Global demand is expected to rise from 60 tonnes per annum to 300 tonnes within a few years, with potential for much more. China currently produces 90% of the global supply and has restricted exports to the US. Brazilian Rare Earths has grades of 300–500ppm as a by-product of rare earth production, along with high grades of uranium, niobium and tantalum, all of which are very valuable. We look forward to the scoping study next year, which should highlight the value of these products to the market.

On the positive side, critical-minerals processing technology company Metallium rose 21% after broker Canaccord initiated coverage with a detailed 35-page report, and the company established a US ADR listing, which will allow US investors to more easily invest.

Australian Alzheimer’s disease drug developer Actinogen rose 71% as the company approaches a futility test in January for its randomised AZ study, ahead of a full read-out a year later. The market value of AUD 175m is now significant, but if the randomised Phase 2 study is successful, we believe a market cap above AUD 1bn could be achievable. The shares and options account for 2% of the portfolio.

US biotech Calcimedia rose 42% as it approaches read-out of its major randomised study in acute kidney disease in the first half of 2026. The current market value of just USD 63m is very attractive if the study is successful. The holding also represents 2% of the fund.