Meteoric Resources Ltd (ASX: MEI) recently released its quarterly report, which included several interesting updates for shareholders.
Macquarie has run the ruler over the updates and has maintained a very bullish share price target for the company, which I'll get to shortly.
First, let's look at what the company announced.
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Huge upgrade for mineral resources
Meteoric Resources is progressing its Caldeira project in Brazil, and said in its report that a definitive feasibility study (DFS) would be completed "in the near term".
The company also announced that drilling at the project had led to a 246% increase in the mineral resource at Caldeira, to 128 million tonnes.
The company said its pilot processing plant continued to deliver robust recoveries and consistent mixed rare earth carbonate (MREC) production at or above nameplate capacity.
So far, more than 200kg of MREC have been produced and provided to existing and potential offtake partners for product qualification.
Meteoric Managing Director Stuart Gale said:
Meteoric continues to build strong momentum at Caldeira, with all major DFS workstreams advancing to their final stages during the June 2026 quarter. The results from five months of continuous pilot plant operations have exceeded expectations, delivering strong MREC recoveries and validating key assumptions within the processing flowsheet. Importantly, the pilot plant has also generated valuable insights that support further process optimisation in the DFS. In parallel, the resource infill drilling program has underpinned the delivery of an updated mineral resource estimate and ore reserve for Caldeira, significantly enhancing geological and metallurgical understanding.
Meteoric Resources shares looking cheap
Macquarie said in its research note on the company that it expected a DFS to be released as early as the fourth quarter of 2026, which would enable a final investment decision in late 2026 or early 2027.
The Macquarie analysts said there could also be the potential for further value-adding.
They said:
Over the past 12 months, the ex-China rare earth industry has moved further downstream, highlighted by Lynas Rare Earths commencing commercial heavy rare earth oxide (Dy, Tb) production and pursuing magnet manufacturing through its JS Link partnership, while MP Materials has expanded into rare earth metal and magnet production. We believe MEI could evaluate similar downstream opportunities over time. In our view, greater downstream integration could improve product payability through production of separated rare earth products (or groups) rather than MREC alone, while potentially attracting additional support from the Brazilian government as it seeks to establish a domestic rare earth elements value chain.
Macquarie has a price target of 45 cents on Meteoric shares compared to 18.25 cents at the time of writing.
Meteoric Resources is valued at $523.2 million.
