VBX LTD (VBX) - Mining Australia's Newest Bauxite Opportunity

The global bauxite landscape is shifting dramatically, and ASX newcomer VBX Limited is positioning itself at the forefront of this transformation. Fresh from completing a $10 million IPO that was oversubscribed with strong institutional support, Managing Director Ryan de Franck reveals why this Northern Australian bauxite developer has captured investor attention at such a critical market juncture.

With Chinese bauxite demand surging 33% year-to-date and Guinea now supplying a precarious 80% of that market, VBX's advanced Wuudagu project in Western Australia's far north emerges as a compelling alternative. The project's Guinea-equivalent low-silica product, combined with efficient logistics from a stable jurisdiction, addresses growing concerns about supply chain security. What makes this opportunity particularly intriguing is that the current 96 million tonne resource has been defined from just 48% of the plateau target areas, suggesting significant exploration upside still to be captured.

Ryan outlines an ambitious timeline that would see VBX complete its Definitive Feasibility Study by year-end, secure project financing and offtake agreements in early 2026, and achieve first production by the close of next year. The company's tight capital structure and high management ownership levels ensure strong alignment with shareholders throughout this journey. As Australia's share of Chinese bauxite imports has slipped from 25% to just 16%, VBX appears perfectly positioned to capitalize on emerging market gaps while offering refiners a product that maintains the low silica content they require to control processing costs.

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Chapters

• 0:05 VBX Limited Introduction
• 1:08 Post-IPO Development Plans
• 2:18 Wadagoo Resource and Drilling Program
• 4:34 Bauxite Market and Chinese Demand
• 6:39 Future Catalysts and Conclusion

Transcript

Andrew Musgrave Host

Welcome back to ASX Briefs, the show where we meet people shaping the future of Australian industry, and today we're joined by Ryan de Franck, the Managing Director of VBX Limited, Australia's newest bauxite developer and now a publicly listed company following its recent $10 million IPO. Ryan, thanks for joining me today and welcome to the ASX Briefs podcast.
 
 Ryan de Franck Guest

Pleasure, Andrew. Thanks very much for having me.
 
 Andrew Musgrave Host

Okay, Ryan. Now VBX have only just recently IPO'd on the ASX, so can you start by giving a brief overview of the company? 

Ryan de Franck Guest

Yeah, sure. So, we listed on the 17th of June, so just under a month ago, and VBX is a northern Australian focused bauxite exploration and development company, and we've got 100% interest in the advanced Wuudagu bauxite project in the far north of Western Australia and the earlier stage Takapinga project which is up on Melville Island in the Northern Territory. 

Andrew Musgrave Host

Okay, and from the listing itself, what does it mean for the company at this pivotal stage of its development? 

Ryan de Franck Guest

Yeah, really excited to having got the listing done and achieve that milestone, because now we're fully funded to complete the on-ground work program that's underway at the moment, targeting the completion of the DFS by the end of the year, and then our focus will turn to project financing and offtake and finalizing the approvals, targeting development of the project second half of next year and first production by the end of next year. So really exciting time for the company. A pretty exciting time in the bauxite sector as well, Andrew. 

Andrew Musgrave Host

Okay, and the IPO was oversubscribed with strong support from both institutional and sophisticated investors. So, what do you think resonated most with investors about the VBX story? 

Ryan de Franck Guest

Yeah, probably a few different things actually. From a corporate level, I think people like our tight capital structure and the fact that there's really strong alignment between the board and management team and investors, because we've got a really high level of board and management ownership level. In terms of the projects, you know, Wuudagu is really unique in terms of the product quality that we'll produce, the short, efficient logistics and translating both of those into a really high margin, low capex project development opportunity. And then in terms of the bauxite market, it's been a really strong growth market over a long period of time, but there's been some recent changes in the sector which have made it a lot more interesting for a lot more people. 

Andrew Musgrave Host

Okay, and with a 95.9 Mt resource and a 59 Mt probable reserve, what's the exploration upside and how will the 2025 drill program contribute to growing or upgrading that resource? 

Ryan de Franck Guest

Yeah, so the existing resource that we've got there of 96 million tonnes has been defined from 48% of our plateau target areas at Wuudagu. So, the exploration and infill drilling program that's underway at the moment is seeking to quantify the resource that's on the other plateau areas that haven't had any drilling done to date and also infill the existing resource to increase the confidence in those estimates. So, we're targeting an increase in the scale and confidence of the resource through this year's drilling program. 

Andrew Musgrave Host

Okay, and you've already mobilized rigs and started drilling. So, what are the key work streams underway now to support your DFS and regulatory submissions? 

Ryan de Franck Guest

Yeah, so obviously we've started the drilling. So that's a combined exploration, infill and hydrogeological drilling program. The other work that we've had going on up on site over the last few months is finalising the environmental surveys that will feed into our environmental review document, which will be lodged with EPA and DQ second half of this year. And the other on-ground work program that will occur is some additional bulk sampling work and that will feed into the optimization of our beneficiation process and into the DFS by the end of the year. So, a pretty busy work program across a number of different areas, but all progressing well at the moment. 

Andrew Musgrave Host

Okay, and just touching on that, bulk sampling and metallurgical optimization and the hydrogeological studies are also in play. So, can you outline how these pieces come together to de-risk the project ahead of funding? 

Ryan de Franck Guest

Yeah, so in producing our attractive low silica product it's a beneficiated product, so it's a simple industry standard beneficiation flow sheet of scrubbing and wet screening and we're doing some additional optimization work on that so we can finalize what the residence time is, what the solids ratio, the screen size that we're using in that process and try and target a bit of a higher mass recovery level but still achieve that really low silica content in the product which is really attractive to end users and trading groups. 

Andrew Musgrave Host

Okay, and just looking at things at more of a macro level, obviously Chinese demand for bauxite continues to grow, while Guinean supply appears increasingly uncertain. So how does your project position itself to fill this emerging supply gap? 

Ryan de Franck Guest

Yeah. So, bauxite's grown at over 25% annually for the last 20 years. Year to date. Bauxite demand in China is up 33% and a lot of that material has come out of increased supply in Guinea. So, the reliance on Guinean material from the Chinese market has increased from 70% last year up to nearly 80%, and the contribution of Australian suppliers into China has decreased from 25% down to about 16% year to date. So, the fact that Wuudagu has a Guinea spec product but is located in Northern Australia with really attractive logistics means that we can provide an alternative source of supply to material coming out of Guinea but not compromising on the silica content and in doing so keeping the refining cost as low as possible.

Andrew Musgrave Host

Now, Ryan, just to wrap things up, looking out over the next 12 to 18 months, what are the major catalysts investors should keep an eye on as the company moves from feasibility to financing and, ultimately, first production? 

Ryan de Franck Guest

Yeah, so once the drilling's completed, we'll be updating the resource and then we'll do an optimised mine plan and that'll feed into the DFS. The DFS is really the key document that will allow us to finalise our offtake and project financing discussions, so they're both key milestones. Once the environmental review document is in with the EPA and DQ, we'll be able to work through that process and obviously, receiving the environmental approval mid next year will allow us to commence construction of the project and target delivery of first tons by the end of next year. 

Andrew Musgrave Host

Okay Ryan, well, it's been great to chat today very early days as a listed company, so we wish you all the best and we look forward to further updates from VBX in the upcoming months. 

Ryan de Franck Guest

Thanks, Andrew Appreciate the time. 

Andrew Musgrave Host

That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.