
Disclosure: Nimy Resources Limited has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Risks
Price and Volume (1-year)


* Nimy Resources Ltd. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. All figures in A$, except for commodity prices, which are in US$.
Gallium is widely classified as a critical mineral by the U.S., EU, UK, Australia, Japan, South Korea, and India, and is considered strategically important by countries like Canada and China
Gallium Primer

Source: FRC
The U.S. Geological Survey (USGS) identifies gallium as a high risk critical mineral due to its reliance on imports, and few available substitutes. Its role in defense electronics, advanced semiconductors, and communications infrastructure, makes securing a steady supply a matter of national and economic security.
The U.S. imports 100% of its gallium consumption

Source: Future Market Insights
~95% of gallium is used in semiconductors for chips, communications, defense, and advanced electronics

Source: USGS
China dominates global gallium production, supplying 98–99% of raw and refined gallium
Gallium Demand Growth Forecast

Source: Future Market Insights
It is estimated that global demand will grow from $29B in 2025, to $57B by 2035 (CAGR: 7%), primarily driven by semiconductors, aerospace, defense, and EVs
Gallium: Supply Security in Focus

Source: FRC
China imposed export controls on gallium in August 2023, tightening global supply outside China
Gallium Price Chart

Source: Trading Economics
Gallium prices in China are up 29% YoY to $325/kg

Source: USGS / FRC
U.S. import prices are up 32% YoY to $580/kg vs the five-year average of $420/kg, driven by rising demand, and lower inventories and Chinese exports
As one of the few advanced-stage gallium exploration companies, we believe NIM stands to benefit from Western efforts to secure critical mineral supply chains, and reduce reliance on China.
Gallium is very rare in the Earth’s crust, and rarely forms concentrated deposits
Economics of Gallium

Source: FRC
There are no primary gallium mines; gallium is extracted almost entirely as a by product of aluminum (from bauxite), and, to a much lesser extent, zinc processing
NIM is aiming to become the first primary gallium mine worldwide, while several other companies are working to begin gallium production outside China. In the U.S., the Round Top polymetallic project in Texas, operated by USA Rare Earth (NASDAQ: USAR), contains gallium alongside rare earth elements and lithium, with commercial production targeted for 2027–2028.
USAR has received up to $1.6B in proposed U.S. government funding and loans, highlighting America’s push to secure critical minerals
In Australia, Alcoa (NYSE: AA) is building a specialized gallium recovery plant at the Wagerup alumina refinery, extracting gallium from an existing by-product stream.
While most of these projects remain by-product operations, we believe NIM stands out as the only advanced-stage primary gallium project in development.
Mons Project (100% interest)
NIM acquired the project in 2021
Project Location

Source: Company
Located in Western Australia, 370 km northeast of Perth and 140 km northwest of Southern Cross
Existing infrastructure includes access to roads, rail lines, and power
History, Mineralization, and Resources
The 3,004 km² district-scale project is located within the Mons Greenstone Belt in Western Australia’s Yilgarn Craton, a globally significant mining region known for major gold and nickel deposits such as Kalgoorlie and Kambalda. The project is prospective for at least five distinct mineralisation styles.
Initial exploration focused on nickel, supported by geological similarities to the nearby Kalgoorlie region

Source: FRC
Given the project’s broad prospectivity, NIM is pursuing a multi-commodity development strategy
Major Targets

Source: FRC / Company
10 targets have been identified, with Block 3 East hosting an independently verified JORC-compliant gallium resource
The other two flagship targets are Masson and Sneaky Squirrel
Block 3 East
Block 3 East hosts a large, exceptionally high-grade gallium resource. With grades above 100 g/t, it ranks among the world’s highest-grade primary gallium deposits.
Block 3 East is the most advanced target, progressing from discovery in April 2024, to a maiden resource by late 2025
Notably, the maiden 740 t of Ga2O3 (gallium trioxide) resource is nearly equal to one year of current global production.
In addition to gallium, the project contains 3,890 t of total rare earth oxides (TREO), which, while moderate in size, adds significant value as a co-product.
Drill Highlights

The discovery hole (NRRC0120, shown on the map) intersected 240 m of 50 g/t Ga2O3, including a 52 m high-grade zone at 105 g/t vs versus typical global gallium grades of 10–40 g/t
Maiden Inferred JORC Resource Estimate (Block 3 East)

Source: Company
Based on 20 holes, the current resource spans 0.4 km², and extends to a depth of 100 m within soft oxide and transition zones, suggesting potential for low-cost mining
NIM has identified additional targets within Block 3: up to 26 Mt at 100 g/t Ga₂O₃ (2,600 t Ga₂O₃) across five gallium targets, and up to 100 Mt at 810 ppm TREO (81 kt TREO) at a separate REE target.
Resource Expansion Potential

White and magenta areas represent the primary drill targets, highlighting magnetic highs often linked to high gallium grades.
Source: Company
The current resource estimate covers just 0.4 km of the 3.5 km mineralised trend identified to date, highlighting significant expansion potential
An independent economic assessment is underway, and expected to be completed shortly.
Metallurgical test work is in progress in Perth, and the U.S., to identify processing routes for producing commercial-grade gallium concentrate. This work is part of NIM’s collaboration with M2i Global (OTCQB: MTWO), a U.S. company focused on building a domestic supply chain for critical minerals. Under the collaboration, the company is being introduced to U.S. defense and government entities, with potential pathways for funding and commercial sale of NIM’s gallium.
Mons gallium can be extracted using a simple process under mild conditions, supporting relatively low-cost production
In February 2026, NIM shipped initial test material to the U.S. for analysis by academic and defense partners with results expected later this year.
Processing includes leaching, concentration, and production of commercial-grade gallium
Next steps include advanced metallurgical testing to optimise processing, evaluate recoveries, and support future technical and economic studies.
We believe the next 12 months are pivotal, with potential U.S. government interest tied to metallurgical results and ongoing strategic collaboration progress.
Strategic Partnerships and Agreements

Source: FRC / Company
NIM is leveraging partnerships with government agencies, and technical experts, to potentially de-risk operations, secure funding, and establish a direct supply chain to the U.S. defense market
Regional Targets

Source: Company
Beyond gallium, NIM is actively exploring copper, nickel, and gold at the Mons project
Geophysics and drilling at the Masson and Sneaky Squirrel targets have identified mineral-rich zones with promising concentrations starting from 91 m depth, remaining open for further discovery.
Masson Mineralized Zone

Source: Company
The Masson target has a steep, high-grade mineralized zone near surface, which could be mined efficiently, and remains open at depth, offering potential for further discoveries
Drilling returned high copper grades such as 2 m of 1.23%, and 2 m of 2.09%, which are at the upper end of copper deposits, which generally range from 0.5–1.5%
The Sneaky Squirrel target shares geological similarities with 29Metals Limited’s (ASX: 29M /MCAP: $490M) Golden Grove world-class VMS deposit nearby, indicating strong potential for a discovery.
Golden Grove is known for exceptionally high-grade intercepts
By combining these base metal targets, with its existing gallium and rare earth resources, we believe the company is positioning itself as a multi-commodity player.
Management and Board

Source: Company
MD Luke Hampson is NIM’s largest shareholder with ~10% ownership
Two out of three directors are independent
Brief biographies of the management team and board members, as provided by the company, follow:
Neil Warburton – Non-Executive Chairman
Luke Hampson – Managing Director
Bruce Stewart – Independent Director
Fergus Jockel – Head of Exploration
John Simmonds – Technical Advisor - Geology
Henko Vos – CFO & Joint Company Secretary
Geraldine Holland – Joint Company Secretary
Financials

Strong balance sheet

Source: FRC / Company
FRC Valuation & Rating

Source: FRC
Although no economic studies have been completed, we are basing our valuation on preliminary, early-stage assumptions derived from our review of the Moon project and industry metrics
Our estimated Net Asset Value for the project is $64M, implying a fair value of $0.20/share on NIM
Sensitivity Analysis

Source: FRC
Our valuation is highly sensitive to metal prices and other key assumptions
We are initiating coverage with a BUY rating, and a fair value estimate of $0.20/share. NIM offers exposure to a strategically important gallium project, at a time when global supply remains heavily concentrated in China, and demand from defense and technology sectors continues to grow. The Mons project stands out due to its high-grade gallium resource, significant expansion potential, and alignment with increasing U.S. efforts to secure critical mineral supply chains.
Risks
We believe the company is exposed to the following key risks (not exhaustive):
We are assigning a risk rating of 5 (Highly Speculative)
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