Brazilian Rare Earths (BRE) – Monte Alto advances - offtake & assistance

Brazilian Rare Earths focuses on the exploration of rare earth elements and other critical minerals in Brazil. It holds interests in the Monte Alto, Pelé, and Sulista project located in the Rocha da Rocha Province. Brazilian Rare Earths was incorporated in 2021 and is based in Haymarket, Australia.

‍

Brazil Rare Earths announced a strategic partnership with French rare earth experts Carester, which includes technical assistance on building a rare earth refinery and a binding 10-year offtake agreement for heavy rare earth concentrate. Its shares have climbed 145% since 20 August but we expect there is much more to come as it progresses plans to monetise its rare earth discoveries and bauxite resources. Carester are the French REO experts also assisting Iluka Resources (ILU) with technical advice for its Eneabba refinery. Carester is also building the France–Japan Caremag refinery in France using feedstock of recycled magnets and rare earth oxide (REO) concentrates, which is due to start in late 2026.

‍

Brazil Rare Earths’ provincial-scale tenements in Brazil include multiple rare earth deposits and 568 million tonnes(Mt) of bauxite, including 98Mt of direct shipping ore (DSO). The company,which is advancing these projects in parallel, still has a rich stream of announcements due over the next six months from parallel workflows, which we consider will be catalysts for its share price. We expect a scoping study on the DSO bauxite project in CY25, as well as metallurgical tests on by-product recovery from Monte Alto, and rare earth separation trials. In the March quarter of CY26, we expect the Monte Alto resource and scoping study announcements.

‍

We maintain our target price of $6.30 and a Speculative Buy recommendation.

‍