# IperionX (IPX): After 8.7 Tons of Titanium Powder in September, a Short Seller Still Questions June's 1.4 Tons > IperionX reported 8.7 tons of titanium powder output in the September quarter and listed 1.4 tons for June. Spruce Point, a forensic short seller, says an earlier chart implied far more for June and questions the company's reporting. With the stock at $14.89 on November 3, 2026, we check the quarterly report, inventory, cash, early orders and Spruce's record on IPX. By MCAFax · Published November 4, 2026 Section: Markets & Main Street › From Wall Street · Series: Market Calls, Investigated (https://mcafax.com/notebook/series/market-calls-investigated) Canonical: https://mcafax.com/notebook/ipx-iperionx-titanium-output-short-seller-june-quarter-figures Source: MCAFax, The Broker's Notebook (https://mcafax.com/notebook). MCAFax is not a lender or a law firm. --- Spruce Point Capital, a forensic short seller, says IperionX (Nasdaq: IPX) appears to have sharply restated how much titanium powder it made in the June quarter. The company's new quarterly report lists 1.4 tons for June and 8.7 tons for September, with inventory building while it moves from testing to orders. We could not confirm the restatement claim. The stock rose 9.3% to $17.04 on October 29, 2026, the day of the report, then fell 12.6% to $14.89 by the November 3 close. *This is journalism and commentary, not investment advice. We hold no position unless stated.* ## Key facts - **Ticker:** IPX, listed on Nasdaq and the ASX; based in Virginia. - **Price:** $14.89 at the November 3, 2026 close, down 12.6% from $17.04 on October 29, when the shares rose 9.3% from $15.59 on the day of the report. - **Production:** 8.7 tons of titanium powder in the September quarter versus 1.4 tons in the June quarter, per the [quarterly report](https://www.globenewswire.com/news-release/2026/10/29/3391279/0/en/iperionx-september-2026-quarterly-report.html). - **Inventory:** 19 tons of finished powder and 207 tons of titanium scrap feedstock at September 30. - **Cash:** $63.0 million at September 30, up from $35.2 million after a $50 million share offering in July; net operating cash outflow of $12.6 million in the quarter. - **Next-generation process:** a continuous GenX platform validated at an equivalent run-rate of about 100 tons a year, per the same report. - **Government work:** an $18.5 million Army task order, with $79.2 million left under a $99 million contract ceiling. - **The short:** Spruce Point published its [IperionX report](https://www.sprucepointcap.com/research/iperionx-ltd) in November 2025 and has repeated the call since. ## Is IPX a good bet right now? It depends on whether IperionX turns pilot output into steady revenue. The new report shows production rising and a stronger balance sheet, but most of the business is still funded by share sales and government awards. Spruce's new point is about reporting quality. If it is right, that matters more than any single quarter. If it is wrong, the claim adds little to the existing short case. ## Why are short sellers bearish on IperionX? On October 29 Spruce [wrote](https://x.com/sprucepointcap/status/2115784424897892766) that a monthly production chart IperionX showed earlier implied more than 4 tons in the June quarter, not 1.4 tons. Its conclusion: "If the production is wrong, then there's a high likelihood the financial results are wrong too." - **Inventory build.** Spruce says inventory is piling up while commercial sales are still absent. - **Earlier doubts.** On October 21 Spruce [questioned](https://x.com/sprucepointcap/status/2112887597366198651) the company's consumer electronics pitch. - **Audit call.** On October 29 Spruce [said](https://x.com/sprucepointcap/status/2115882384780648571) taxpayers should ask the Government Accountability Office to audit IperionX and the government programs it works on, citing the past restatement and the powder reporting questions. - **Past restatement.** Spruce says IperionX already did one restatement that shareholders revolted on. We could not verify that claim, and we have not seen the earlier chart. ## Who's making this call and why? Spruce Point Capital Management, founded by Ben Axler, publishes forensic short reports. Its original IperionX report argued for 70% to 95% downside under some scenarios. **Track record.** In our tracking, Spruce Point is 11-6 (a .647 win rate) on 17 calls scored at 180 days against the S&P 500, ranked 3rd on the career board, with an average edge of +10.4 points. All 17 are shorts, and its last 10 went 6-4. Its November 2025 IperionX short counted as a miss at 180 days, when the stock was up about 10%. The shares have since fallen about 60% from $37.47 to $14.89 at the November 3 close. Its October 29 reiteration, made at $15.59, is provisional and leads the index by about 2 points through November 3. See the [scoreboard](https://mcafax.com/notebook/market-calls-scoreboard) and our [earlier IPX piece](https://mcafax.com/notebook/ipx-iperionx-spruce-point-short-after-target-cut). ## Who disagrees? We found no detailed bull rebuttal on X. The case against Spruce comes from the company and the tape. - **Output is rising.** IperionX says its HAMR furnace ran 1.6 tons in 63 hours and validated capacity above 200 tons a year. - **Early orders.** It finished parts under a Carver Pump order for Navy pump work and won a follow-on Army order for vehicle fasteners. It also made 1,500 fasteners. - **Insider buying.** Directors bought about $1.9 million of shares on the market in July. - **The market.** Shares rose 9.3% on the day of the report but gave back that gain and more by November 3. ## What are the key facts to verify? - The [quarterly report](https://www.globenewswire.com/news-release/2026/10/29/3391279/0/en/iperionx-september-2026-quarterly-report.html) for production, inventory and cash. - Earlier IperionX presentations for the monthly production chart Spruce cites. - Whether any past financial statements were actually restated, and how shareholders voted. - The November 25, 2026 annual meeting, and the shareholder approval the planned move to a Texas parent requires. ## What would prove it right or wrong? **Right:** IperionX corrects past production or financial figures, inventory keeps rising without matching sales, or it needs another large share sale. **Wrong:** the June figure is explained, recurring commercial orders arrive and revenue starts to track output. *This is journalism and commentary, not investment advice. We hold no position unless stated.* ## Questions readers ask **What is Spruce Point saying about IperionX?** On October 29, 2026 Spruce Point Capital, a forensic short seller, said IperionX (Nasdaq: IPX) appears to have restated its June-quarter titanium powder production by about 70% or more. The new quarterly report lists 1.4 tons for the June quarter, while Spruce says a monthly production chart the company showed earlier implied more than 4 tons. Spruce argues that if production figures are wrong, the financial results may be too. We could not verify the earlier chart or Spruce's claim of a prior restatement. **How much titanium powder did IperionX produce?** IperionX said it produced 8.7 tons of HAMR titanium powder in the September 2026 quarter, up from 1.4 tons in the June quarter. It ended September with 19 tons of finished powder and 207 tons of titanium scrap feedstock. **What is IperionX GenX?** GenX is a continuous version of the HAMR titanium powder process. IperionX said it processed over 500 kg of titanium powder across four continuous runs totaling 41 hours and validated the current GenX platform at an equivalent run-rate of about 100 tons a year. The company says engineering is underway to integrate the full production line. **How much cash does IperionX have?** IperionX had $63.0 million in cash at September 30, 2026, up from $35.2 million at June 30, after a July offering of 2,275,000 ADSs at $21.98 that raised about $50 million. Including reimbursable government funding, it cites about $96.7 million of available liquidity. **Does IperionX have customers?** It has early orders rather than steady revenue. It finished titanium parts under a Carver Pump purchase order for U.S. Navy pump work, won a follow-on U.S. Army order for vehicle fasteners and produced 1,500 fasteners in the quarter. **What government contracts does IperionX have?** The U.S. Army awarded IperionX an $18.5 million Task Order 2 under its $99 million contract, leaving $79.2 million under the ceiling. It also has a $47.1 million IBAS award and a $12.7 million DPA Title III award for capacity expansion. **How did IPX stock react to the report?** IperionX (IPX) closed at $15.59 on October 28, 2026 and rose 9.3% to $17.04 on October 29, the day of the report. It then fell 12.6% over the next three sessions to $14.89 at the November 3, 2026 close. **Who is Spruce Point Capital?** Spruce Point Capital Management is an activist investment manager founded by Ben Axler that specializes in forensic short selling. It published its IperionX short report in November 2025. **What is Spruce Point's track record?** In our tracking, Spruce Point is 11-6 on 17 calls scored at 180 days against the S&P 500, with an average edge of +10.4 points, ranked 3rd on our career board. Its first IperionX short counted as a miss at 180 days, though the shares have since fallen about 60% from $37.47 to $14.89 at the November 3, 2026 close. **Did insiders buy IperionX stock?** Yes. IperionX said its directors bought about $1.9 million of shares on the market in July 2026. **What would prove the short case right?** A correction of past production or financial figures, inventory that keeps rising without matching sales, or another large share sale would support Spruce. Recurring commercial orders and revenue that tracks output would undercut it.