The Brazilian Rare Earths Ltd (ASX: BRE) share price is in the spotlight today after unveiling its Rocha da Rocha scoping study, which forecasts exceptional economics including an estimated post-tax NPV of US$7.9 billion and an annual life-of-mine average EBITDA of US$1.4 billion for what could become one of the world's largest heavy rare earth operations.
Image source: Getty Images
What did Brazilian Rare Earths report?
- Post-tax NPV (8%): US$7.9 billion
- Annual average EBITDA (life of mine): US$1.4 billion
- Post-tax internal rate of return (IRR): 89%
- Payback period: 1.1 years
- Upfront capital to first oxide production: US$969 million (including 30% contingency)
- Projected C1 cash cost: US$21/kg (NdPr equivalent), placing it among the lowest-cost Western projects
What else do investors need to know?
The scoping study covers Brazilian Rare Earths' Rocha da Rocha project in Bahia, Brazil, highlighting a province-scale development with a hub-and-spoke model anchored by the ultra-high-grade Monte Alto district. Notably, Monte Alto's resource grade is twice that of major Western peers, such as Lynas and MP Materials, supporting robust process yields and lower operational costs.
The study plans a staged approach, fast-tracking concentrate production with an initial capex of just US$91 million for early cash flow, while the integrated Camaçari refinery hub leverages established industrial infrastructure, utilities and skilled workforce.
What's next for Brazilian Rare Earths?
Looking ahead, Brazilian Rare Earths is set to progress pre-feasibility studies through 2027 and seeks to secure further funding to support development. With the project open along strike and offering significant exploration upside, management is also aiming to unlock additional value from strategic co-products like uranium, scandium, niobium and tantalum.
The company expects to make a final investment decision after detailed feasibility studies, with first rare earth oxide and concentrate sales targeted for 2030–2031, subject to funding and permitting.
Brazilian Rare Earths share price snapshot
Over the past 12 months, Brazilian Rare Earths shares have risen 83%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 3% over the same period.
