Nimy Resources Limited
A Rare Western Solution for Critical Gallium Supply – Initiating Coverage
Published: May 26, 2026
Author: FRC Analysts
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.
Company Details
Sector – Basic Materials
Industry – Other Industrial Metals & Mining
Trading Information
Trading information – NIM.AX : ASX
Report Highlights
- Critical Minerals Exposure: NIM is advancing the district-scale Mons project in Western Australia, prospective for gallium, and other high-value metals, such as copper, nickel, and rare earth elements.
- Strategic Gallium Resource: Gallium is critical for military, and national security applications, including radar, missile guidance, and advanced electronics. The USGS classifies gallium as a high-risk mineral for the U.S., and China dominates global supply. Tightened Chinese exports have raised prices, driving global demand for secure, alternative sources.
- Strong U.S. Demand for Critical Minerals: Between 2023 and 2026, the U.S. government allocated approximately $36B to 33 publicly listed critical mineral companies, including projects in Australia, Canada, Greenland, and Africa, highlighting America’s willingness to support strategic projects abroad — a positive backdrop for NIM.
- High-Grade & Expandable Resource: The Mons project hosts 740 tonnes of gallium trioxide at 102 g/t Ga₂O₃, well above the 30–60 g/t range for typical deposits of, nearly equal to one year of global production. Higher grades support stronger economics through increased production at lower costs. The current resource estimate covers 0.4 km, while mineralization has been identified over 3.5 km, highlighting significant expansion potential.
- U.S. Strategic Partnership: NIM has a collaboration agreement with U.S.-based M2i Global (OTCQB: MTWO), and is actively pursuing a deal to supply gallium to the U.S. defense, and technology sectors. The company has shipped test material to the U.S. for analysis and refining. We believe the next 12 months could be pivotal, as positive metallurgical results, and ongoing collaboration, may attract U.S. government interest.
- Global Context & Comparables: Few projects outside China have gallium production potential. A notable comparable is USA Rare Earth Inc. (NASDAQ: USAR), which targets commercial production of gallium, rare earths, and lithium by 2027–2028, supported by up to $1.6B in U.S. government funding and loans, reflecting America’s push to secure critical minerals.
- Near-Term Catalysts: Key catalysts include an independent economic assessment (scoping study), U.S. metallurgical and defense testing results, and potential funding and government grants.
Risks
- Commodity prices
- Exploration and development
- Foreign exchange risks
- Access to capital, project financing, and potential share dilution
Price and Volume (1-year)
* Nimy Resources Ltd. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. All figures in A$, 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
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
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