Executive Summary
EV Resources (EVR.ASX) is positioning itself as a North American‑centred supplier of high‑grade antimony by combining its Los Lirios project in Mexico with a strategy to refurbish local processing infrastructure. Management is pursuing a processing‑led pathway to generate near‑term cash flow — initially processing artisanal ore while advancing exploration and maiden resource drilling planned for 2026. The company targets a production timeline of 12–18 months given successful refurbishment and permitting.
Key Highlights
- Los Lirios: High‑grade stibnite observed at surface with visual assays indicating very pure material (30%+ stibnite reported from surface sampling).
- Processing option: EVR holds an option to purchase a second plant for refurbishment, enabling processing of artisanal ore within ~6 months to kick‑start cash flow.
- Near‑term timetable: Drilling commenced end of January; maiden resource drilling scheduled for 2026 with a stated path to production within 12–18 months.
- North American focus: Strategy directed at supplying the US and broader North American market where Western hemisphere antimony supply is limited.
- Complementary assets: Nevada holdings and US advisory input aim to de‑risk supply chain and regulatory navigation.
Market Analysis
Antimony is increasingly strategic — used in flame retardants, speciality alloys, batteries and defence applications. Global production is highly concentrated (China and Russia account for the majority), leaving North America dependent on imports and exposed to geopolitical risk. The US government has signalled intent to develop domestic and allied supply chains for critical minerals, creating favourable policy tailwinds for projects that can deliver western‑sourced antimony quickly. Prices and offtake interest are likely to respond to credible, near‑term supply options.
Investment Thesis
EV Resources offers a differentiated risk profile for investors seeking exposure to a critical mineral with limited western supply. Key points supporting the thesis:
- Low capital pathway: Refurbishing an existing processing plant and starting with artisanal ore reduces upfront capex versus building a new mill.
- High‑grade feed: Surface observations and initial sampling at Los Lirios suggest exceptionally high antimony grades, improving project economics.
- Strategic timing: Delivering product into the North American market within 12–18 months captures growing demand and potential premium pricing for secure supply.
- Execution catalysts: Maiden resource drilling in 2026, ongoing refurbishment milestones, and early production milestones provide clear value inflection points.
Conclusion
EV Resources combines a high‑grade Mexican project with a pragmatic processing‑first strategy designed to bring antimony to market quickly. For ASX small‑cap investors focused on critical minerals and supply‑chain security, EVR presents a near‑term producer thesis underpinned by tangible operational milestones and favourable macro drivers. Monitor drilling results, plant refurbishment progress and early production updates as the primary catalysts.