Key Highlights

  • Sunrise Energy Metals reported project Capital for the Syerston Scandium Project of A$450–475 million (US$315–333 million), with a final Investment decision targeted by the end of 2026.
  • The company reported a conditional, non-binding commitment from the US Office of Strategic Capital for up to US$400 million under a proposed 25-year Debt facility.
  • Cash at 30 September 2026 was A$148.1 million, and the company estimated a funding runway of 9.8 quarters.

Sunrise Energy Metals (ASX:SRL) reported in its September 2026 quarterly that front-end engineering and design for the Syerston Scandium Project in New South Wales has been completed by GR Engineering Services. The company said the first phase of engineering and procurement has started, and that the project execution plan and the contract and procurement strategy are finished. Remaining long-lead packages have either been awarded or recommended for purchase.

On the water pipeline, Stage 2 design is complete and drawings issued for construction have been prepared. Procurement of pipe, pumps and valves has begun, and early works, including preparation of the first borefield, have started. A Crown Lands licence for the pipeline has been executed and Modification 8 has been submitted to the NSW planning department. The company recorded no lost-time injuries or reportable environmental incidents in the quarter.

Revised capital estimate and timetable

The company now puts project capital at A$450–475 million (US$315–333 million). It said the scope has been broadened to include scandium metal refining capacity in the United States, refinery modifications to produce chemical-grade scandium compounds, expansion-related utilities and civil works brought forward, and power generation taken into project capital. Contracts priced in early 2025 were re-tendered, and Sunrise said the estimate includes higher construction, equipment and capital costs together with an increased contingency.

A final investment decision is targeted by the end of 2026 and commercial production is targeted for 2028. The company describes these as targets rather than approvals or commitments. Sunrise also said it has been accepted into the NSW Critical Minerals Royalty Deferral Scheme, which allows royalties to be deferred for up to five years.

Funding and cash

The company reported a conditional commitment from the US Office of Strategic Capital for up to US$400 million (about A$570 million) under a proposed 25-year debt facility. The report states that the terms are non-binding. Conditions include due diligence, definitive documents and regulatory approvals, and redomiciliation and a US listing are described as a condition. No borrowings have been drawn.

Cash at 30 September 2026 was A$148.1 million, including a A$100.0 million term deposit, up from A$115.4 million at the start of the quarter. Net operating outflow was A$15.1 million, including A$7.9 million of administration and corporate costs and A$3.8 million on the Syerston and Sunrise projects. Financing inflows of A$48.0 million came from the exercise of unlisted options. The company estimated a funding runway of 9.8 quarters at the current operating burn rate.

Redomiciliation and corporate changes

Sunrise Energy Metals (ASX:SRL) has signed a scheme implementation deed under which a Delaware company, Sunrise Energy Metals Inc, would become the parent. Under the proposal, shareholders would receive one Holdco CDI traded on the ASX for each share, or could elect to receive one Holdco share for trading on Nasdaq. Conditions include shareholder, Federal Court and Foreign Investment Review Board approvals, an effective SEC registration statement, and Nasdaq and ASX listing approvals. A scheme booklet will follow in due course. John Mullumby, formerly of Gold Road Resources, has been appointed chief financial officer.

Queensland exploration

Away from scandium, maiden diamond drilling of about 6,000 metres began at the Clonagh Trend joint venture in Queensland, where Sunrise can earn up to 75 per cent. The programme comprises four holes at Maureen-Lola, testing geophysical and geochemical anomalies beneath more than 180 metres of conductive cover, and six holes totalling 3,500 metres at Dianne, targeting a shear system. The first hole was collared late in the quarter. These are exploration targets only, no results have been reported, and the company said assays and downhole geophysics would be released as available.

Next steps

The company's stated next steps are the final investment decision target, approval of Modification 8, definitive documents with the Office of Strategic Capital, the scheme booklet and associated approvals, and the first Clonagh Trend drilling results.