Ionic Rare Earths, the Australian-listed developer of Uganda’s Makuutu rare earths project, reported no decision on its review of the project’s funding and ownership options in its September-quarter update.

The quarterly report, issued on 13 October, says discussions with potential financiers and buyers continue. The review, launched on 31 July, is considering government-backed partners, new investment structures and possible listings in other jurisdictions. Ionic cautions that it may not lead to a transaction or ownership change.

Petra Capital, a stockbroker that helped arrange Ionic’s August share placement, cut the value it assigns to Makuutu in an 8 October research note to A$25mn (Shs72.1bn) from A$61mn (Shs176bn), a reduction of about 59 per cent. The fundraising was intended to support Ionic’s Belfast recycling plant and expansion in other overseas markets.

The broker’s valuation table groups the asset under “Makuutu & Exploration”. The note does not explain the specific basis for the reduction. Petra nevertheless retained its Buy recommendation and raised its overall price target for Ionic, mainly after adding the proposed US recycling venture to its valuation. It disclosed receiving fees for its role in the placement.

The company had previously set out a timetable for bringing Makuutu into production. When it announced the mining licence in January 2024, managing director Tim Harrison said it aimed to take a final investment decision that year and deliver first product to customers in early 2026.

The annual report released on 17 September and the quarterly update of 13 October do not set out a replacement timetable for commercial production. The annual report records the production of mixed rare earth carbonate at Makuutu’s demonstration plant, which supports testing and discussions with potential buyers. That demonstration work does not establish commercial deliveries.

Ionic reported spending A$442,809 (Shs1.3bn) on Makuutu exploration, demonstration-plant and study activities in the September quarter. Its stated aim for the review is to accelerate development, citing interest from US and other Western-aligned investors seeking alternative sources of rare earths.

The wider group also needs further funding. Its quarterly cash-flow statement reported A$5.1mn (Shs14.6bn) in cash at the end of September, equivalent to 1.26 quarters of funding on its prescribed expenditure measure.

That calculation uses group operating cash outflows and is not a measure of the money required to build Makuutu. Ionic said it expected those outflows to remain broadly consistent and planned to raise further equity, subject to market conditions, while managing its cash resources.

Auditor BDO flagged a material uncertainty over the group’s ability to continue as a going concern in the annual accounts. Its audit opinion was not modified on that account. Management’s forecasts anticipated further funding needs after the August share placement.

Decisions about Makuutu also involve Ionic’s partners. The company owns 60 per cent of Rwenzori Rare Metals (RRM), the Ugandan company that holds the project, but says key decisions require more than 75 per cent of voting rights.

Its annual report therefore treats RRM as a joint venture under shared control. Ionic says the accounting reassessment involved no change to the underlying contractual arrangements. The report does not identify which other parties must approve a new investor or a listing.

In December 2023, Ionic agreed to buy a further 34 per cent of RRM from Rare Earth Elements Africa, subject to approvals. The annual and quarterly reports continue to show Ionic’s holding at 60 per cent, leaving the status of that proposed purchase unexplained.

The Uganda National Mining Company (UNMC) says it holds a 15 per cent interest in Makuutu’s mining licence. The reports do not explain how the state’s participation relates to RRM’s shareholding or decision-making arrangements.

(A$1 = Shs2,885.91, Bank of Uganda rates for 19 October 2026)

The UNMC statement appears on a project page at unmc.co.ug. ugbusiness.com has not independently confirmed that UNMC operates that domain. UNMC’s government-domain website, unmc.go.ug, was inaccessible when checked on Monday morning.