Brazilian Rare Earths reports progress in Amargosa Bauxite Project, strengthens balance sheet

Brazilian Rare Earths Limited has reported steady progress in the operational front of Amargosa Bauxite Project during the three months ended December 31, 2025, with significant growth achieved in the segments of project development, strategic partnerships and balance sheet strength. During the quarter, the company released a scoping study, outlining a large-scale direct-ship bauxite operation designed to prioritise simplicity and low capital intensity. The study outlines a 5 million tonne per annum export operation based on simple mining practice and road haulage to an established port offering a clear and efficient way to development.

Amargosa is backed by a JORC-compliant mineral inventory of 568 million tonnes, of which only 98 million tonnes qualify as direct-ship bauxite. On a 17-year projected operating life, the study finds that average annual EBIDTA of about USD 102 million and free cash flow of roughly USD84 million. The after-tax valuation stands at USD630 million on an 8 per cent discount basis, with initial capital recovered in just over a year.

Independent cost benchmarking undertaken by CM Group places Amargosa within the lowest-cost quartile of the global seaborne bauxite cost curve, highlighting its competitive position. The project also benefits from its location in Bahia, where access to infrastructure, skilled labour, and favourable tax and royalty settings is well established. Based on experience from similar lateritic mining projects in the area, approvals are typically secured within two to three years, which could allow development to begin around 2028, pending regulatory sign-off.

There is also a scope of expansion by leveraging high output rates and possible future integration with the FIOL–Porto Sul rail corridor, should that infrastructure become available. As part of its broader strategy, Brazilian Rare Earths is progressing a proposed de-merger of the Amargosa asset. The company has lodged suitability-for-listing materials with the ASX in preparation for a potential Amargosa spin-out targeted for mid-2026, aimed at unlocking additional value for shareholders.

During the period, the company also entered into a long-term partnership with Carester, a globally recognised rare earth processing specialist. The agreement covers technical collaboration as well as offtake arrangements and is intended to strengthen Brazilian Rare Earths’ position across the rare earth supply chain.

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Under the partnership, Carester will provide engineering, construction and commissioning support for the company’s planned rare earth separation refinery at the Camaçari Petrochemical Complex in Bahia. In addition, Carester has agreed to purchase Brazilian Rare Earths’ heavy rare earth concentrate under a binding 10-year offtake arrangement, supporting production of up to approximately 150 tonnes per annum of separated dysprosium and terbium oxides at Carester’s facilities.

Carester is currently developing one of the world’s largest heavy rare earth separation and recycling projects through its Caremag subsidiary in Lacq, France. The project is backed by the French Government, along with Japanese partners JOGMEC and Iwatani.

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On the executive front, Brazilian Rare Earths announced the appointment of John Vander Ploeg as Chief Financial Officer. Mr Vander Ploeg brings more than 20 years of experience in senior finance roles, including listed company reporting, complex corporate transactions, technical accounting and cross-border integration.

The company closed the quarter with a strong cash position of AUD 162.4 million ( USD 113.69 million) as at 31 December 2025. This follows a placement completed on 14 October 2025, in which 25.6 million shares were issued at AUD 4.68 (USD 3.28.) per share, raising AUD 120 million( USD 84 million) before costs. The funds are being used to accelerate development of the company’s ultra-high-grade rare earth projects and its planned rare earth separation refinery in Brazil.

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