Buying into resource companies as they progress their projects towards production can be a solid strategy for impressive share price gains, as long as the execution is a success.
The analyst team at Macquarie has this week published research notes on two companies, both in the critical minerals sector, which they believe have the potential for strong gains based around this very thesis.
Let's have a look at who they like.
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Meteoric Resources Ltd (ASX: MEI)
This rare earths project developer recently provided an update on its Caldeira project pilot plant, stating it delivered "exceptional performance" with magnetic rare earth oxide (MREO) recoveries of 80% in May.
The pilot plant was commissioned in late 2025, the company said, and MREO recoveries had been improving over that time.
The company added:
Recoveries to mixed rare earth carbonate (MREC) for the lite MREO – neodymium and praseodymium (NdPr) and heavy MREO – dysprosium and terbium (DyTb) have averaged 71% over the operational period. This is in line with the May 2025 Pre-Feasibility Study estimate which was based on detailed testwork and piloting completed at the Australian Nuclear Science and Technology Organisation (ANSTO). Total rare earth oxide (TREO) recovery of 61% is materially above the PFS estimate. Exceptional recoveries of 80% for MREO and 74% for TREO were achieved over the last month, reflecting ongoing process optimisation, iterative flowsheet improvements and ore quality.
The company said that bulk MREC samples had been supplied to a range of groups for separation test work, including existing partners Neo Performance Materials in Europe, and Ucore and MTM in the United States.
The Macquarie team said in their report to clients this week that the pilot plant's performance was better than nameplate capacity, and that rare earth recoveries were above their forecasts.
They added:
MEI continues to execute its development plan with steady progress. We see value in the company, which is currently trading at an implied NdPr price of US$70/kg, 36% below our base-case assumption of US$110/kg and 31% below spot price of US$103/kg.
Macquarie has a target price of 45 cents on Meteoric Resources shares compared to 17.5 cents currently. If achieved, this would be a 157.1% return.
Wildcat Resources Ltd (ASX: WC8)
Shares in Wildcat Resources have appreciated about 310% over the past 12 months, but the Macquarie team thinks they still have a way to go.
The company is currently working on a definitive feasibility study for its Tabba Tabba lithium project in Western Australia's Pilbara region, and said in May there was strong interest in offtake agreements for the mine's products.
Wildcat Project Director James Dornan said at the time:
We are close to finalising the Definitive Feasibility Study for the Tabba Tabba Project. Mine planning and metallurgical test work is being progressed across the entire life of mine, with material from Years 1-2 of open pit operations achieving a spodumene concentrate grade of 5.65% Li2O with low iron and excellent recoveries, providing confidence for the commissioning and ramp up phases of the Project.
The Macquarie team said the company stands out because of its large resource base and favourable mining geometry.
They added:
Beyond Tabba Tabba, the Bolt Cutter discovery provides incremental upside, in our view, with drilling supporting an expanding spodumene footprint proximal to existing infrastructure. This has the potential to enhance overall project scale, improve development flexibility and extend mine life over time.
Macquarie has a price target of 90 cents on Wildcat shares compared to 55.5 cents currently. If achieved, this would be a return of 62.2%.
