Shares in Brazilian Critical Minerals Ltd (ASX: BCM) were charging higher on Tuesday morning after the company published a bankable feasibility study into its Ema project, which said it had "exceptional economics''.
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Long-life, low-cost project
The study indicated that the project would be developed in two stages, with the first stage costing just US$74 million to build and having a payback period of six months.
The project would produce total rare earth oxides at a cost of US$8.84 per kilogram, which the company said was among the lowest costs globally.
A second stage that would double production would cost just US$27 million.
The company said regarding the study:
The bankable feasibility study confirms Ema as a long-life, economically resilient rare earth project, advancing BCM's pathway toward development and strengthening its exposure to critical minerals underpinning global electrification trends. The BFS incorporates a comprehensive suite of technical, operational and engineering initiatives designed to optimise project economics, de-risk future development pathways and support progression toward a disciplined Final Investment Decision (FID). The study follows a pivotal year for the Ema development team, including the successful completion of an extensive three-month in-situ recovery field trial program.
The company said in a statement to the ASX that the study highlights the potential for Ema to "emerge as one of the Western world's lowest-cost rare earth projects supplying downstream-compatible mixed rare earth carbonate product''.
The mine was expected to operate for 20 years and to produce, on average, EBITDA of US$219 million per year.
Brazilian Critical Minerals Managing Director Andrew Reid said:
The results of the Bankable Feasibility Study further reinforce our belief that Ema has the potential to emerge as one of the most compelling rare earth development projects globally. The study highlights a combination of low capital intensity, low operating costs, strong projected cashflow generation and robust financial returns, positioning Ema favourably amongst both existing producers and emerging rare earth projects worldwide. Importantly, these outcomes are underpinned by the successful application of in-situ recovery (ISR), a development approach that significantly reduces mining intensity, lowers infrastructure requirements and provides a scalable lower risk pathway to long-term production. Ema's financial performance is particularly significant given the conservative assumptions incorporated within the study and the substantial remaining upside associated with resource expansion, wellfield optimisation, reagent recycling initiatives and future production growth.
Important new source of minerals
Mr Reid added that the mine would be of strategic importance as a source of rare earths outside of China, which has been a key focus for Western governments.
Brazilian Critical Minerals shares traded as high as 5.9 cents, up 25.5%, before settling back to be 17% higher at 5.5 cents. The company is valued at $92 million.
