The Meteoric Resources Ltd (ASX: MEI) share price is in focus after the company released its highly anticipated Definitive Feasibility Study (DFS) for the Caldeira Rare Earth Project in Brazil. Highlights from the DFS include confirmation of a 151 million tonne (Mt) ore reserve grading 3,524ppm TREO and an impressive life of mine (LOM) post-tax NPV of US$847 million at spot prices.
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What did Meteoric Resources report?
- Ore Reserve: 151Mt @ 3,524ppm TREO and 857ppm Magnet Rare Earth Oxides (MREO), supporting a >20 year mine life
- LOM Post-Tax NPV: US$847 million (spot) / US$2,721 million (forecast); IRR of 24% (spot) / 47% (forecast)
- Total Project Revenue: US$9.4 billion (spot) / US$17.4 billion (forecast)
- Initial Capital Expenditure: US$498 million including 10% contingency
- Average Operating Cost: US$11.68/kg TREO (LOM); Payback in 4 years (spot)
- No dividend declared
What else do investors need to know?
Meteoric's DFS is backed by more than 90,000 metres of drilling and extensive testwork, including over six months of pilot plant operation in Brazil. The Caldeira Project has the largest ionic clay rare earth resource reported outside of China and boasts high recoveries (71% for magnet rare earths) from shallow, free-digging ore. More than 80% of the broader tenement has not yet been included in the DFS, suggesting potential for future growth or mine life extensions.
The project has already secured a Preliminary Environmental Licence, with the construction permit (LI) expected by the end of 2026. Meteoric has signed non-binding offtake agreements with major players in South Korea, Canada, and North America and is in advanced funding talks with several government credit agencies.
What did Meteoric Resources management say?
Managing Director and CEO Stuart Gale said:
The Caldeira Project DFS is a comprehensive assessment of the technical, commercial and financial fundamentals required to support a formal investment decision. The DFS confirms Caldeira as a low capital intensive, low operating cost, long life asset containing abundant light and heavy magnetic rare earth elements essential to permanent magnet production… Caldeira is positioned to become a significant long-term supplier of rare earth materials, into global markets, at a time when demand for rare earth materials continues to be driven by electrification, renewable energy, advanced manufacturing and defence applications.
What's next for Meteoric Resources?
The next steps for Meteoric involve receiving the Installation Licence and finalising project funding to move towards a final investment decision and project construction. Front-end engineering and design studies are underway, and plans are in place to secure key contracts and finalise vendor commitments for long-lead items. The company continues to progress offtake and financing discussions, with an eye on becoming a major new source of rare earths for global markets.
Meteoric is also continuing downstream studies to assess the feasibility of future value-adding in Brazil and has strong support from all levels of Brazilian government, including inclusion in critical minerals and decarbonisation initiatives.
Meteoric Resources share price snapshot
Over the past 12 months, Meteoric Resources shares have risen 50%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.
