IperionX (ASX:IPX) said its definitive feasibility study for its Titan Critical Minerals Project in the US has returned an after-tax net present value of $813 million at an 8% discount rate, an after-tax internal rate of return of 39%, and an after-tax payback period of 3.6 years, according to a Thursday Australian bourse filing.

The company said the study forecasts life-of-mine earnings before interest, taxes, depreciation and amortization (EBITDA) of $2.8 billion and after-tax free cash flow of $1.9 billion over an initial 14-year mine plan. The project is supported by a phase 1 development capital of $228.1 million and phase 2 incremental capital of $153.2 million, for total development capital of $381.3 million.

Ore reserves stand at 117 million tons at 3.2% total heavy mineral (THM), containing 3.7 million tons of THM with about 80% classified as proved, the filing added.

Phase 2 annual production is forecast at about 5,287 tonnes of heavy rare earth concentrate (HREC); 118,658 tonnes of ilmenite; 24,656 tonnes of rutile; and 65,668 tonnes of zircon concentrate, the filing said.

The HREC contains strategically important heavy rare earths dysprosium, terbium and yttrium vital for US supply chains for high-performance magnets, defense, aerospace and semiconductor applications, it added.