Brazilian Rare Earths December 2025 Quarterly Report

Rhea-AI Summary

Brazilian Rare Earths (BRELY) reported quarterly progress to 31 December 2025, highlighting a scoping study for the Amargosa bauxite project (JORC 568 Mt resource, 98 Mt DSB), robust economics (EBITDA ~US$102m p.a., after-tax NPV8 US$630m), a proposed mid-2026 Amargosa de‑merger, a binding 10‑year heavy rare earth offtake and technical partnership with Carester, appointment of a new CFO, and A$162.4m cash at quarter end.

Positive

• JORC resource of 568 Mt including 98 Mt direct‑ship bauxite
• Scoping-study economics: EBITDA ~US$102m p.a. and NPV8 US$630m
• Binding 10‑year offtake with Carester for heavy rare earth concentrate
• A$162.4m cash position at 31 December 2025
• Placement raised A$120m (25.6m shares at A$4.68) to fast‑track development

Negative

• Permitting horizon ~2–3 years could delay development toward a 2028 pathway
• Scoping study sized at 5 Mtpa may require further studies for large‑scale expansion

News Market Reaction

-5.10%

1 alert

-5.10% News Effect

On the day this news was published, BRELY declined 5.10%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

SYDNEY, Jan. 29, 2026 (GLOBE NEWSWIRE) -- Brazilian Rare Earths Limited (ASX: BRE / OTCQX: BRELY) (‘BRE’) is pleased to report progress during the quarter ended 31 December 2025. Highlights during and subsequent to the end of the quarter include:

Amargosa Bauxite Scoping Study: Large-Scale, Low-Cost Direct-Ship-Bauxite Project

• Simple, low-capex 5 Mtpa export project: Direct-ship-bauxite (DSB) export operation with efficient road logistics to an established port, delivers a compelling development pathway
• JORC Resource: 568 Mt Mineral Resource Estimate, including 98 Mt of direct-ship-bauxite
• Strong economics and cash generation: Average EBITDA of US$102 million p.a. and free cash flow of US$84 million p.a. over a 17-year mine life; after-tax NPV₈ of US$630 million and ~1.2-year payback
• Cost-curve leadership: CM Group independent benchmarking ranks Amargosa in the lowest-cost first quartile on the global seaborne bauxite cost curve
• Tier-one jurisdictional advantages: Strategically located in Bahia, competitive taxes and royalties, access to skilled labour and infrastructure, and strong government support. Permitting timelines of ~2–3 years for comparable lateritic operations support a potential development pathway by 2028, subject to approvals
• Large-scale expansion optionality: Material production and exports upside beyond the 5 Mtpa DSB case, underpinned by the large resource base and potential future integration with the FIOL–Porto Sul rail corridor
• Value-unlock catalyst: BRE is advancing a de-merger of Amargosa to unlock shareholder value, and has lodged ASX suitability-for-listing materials for an Amargosa spin-out in mid 2026
  

BRE and Carester Sign Heavy Rare Earth Offtake & Technical Partnership

• Strategic alliance: BRE entered into a long-term partnership with Carester, a leading rare earth processing specialist with a proven track record in the design, commissioning and optimisation of rare earth separation facilities globally
• Camaçari separation plant delivery: Carester will provide engineering, construction and commissioning support for BRE’s planned rare earth separation refinery at the Camaçari Petrochemical Complex, Bahia
• Heavy rare earth supply offtake: Carester will purchase BRE’s heavy rare earth concentrate under a binding 10-year offtake, supporting up to ~150 tpa of separated dysprosium and terbium (DyTb) oxides production at Carester’s separation facility
• Caremag scale and tier-one backing: Carester is developing one of the world’s largest heavy rare earth separation and recycling projects through its Caremag subsidiary in Lacq, France, supported by the French Government and Japanese partners JOGMEC and Iwatani

Appointment of Chief Financial Officer

• BRE announced the appointment of John Vander Ploeg as Chief Financial Officer
• Mr. Vander Ploeg is a highly experienced finance leader with over 20 years’ experience spanning listed-company reporting, complex corporate transactions, technical accounting, and cross-border integration

Strong Balance Sheet

• BRE held A$162.4 million in cash at 31 December 2025
• On 14 October 2025, BRE completed a placement of 25.6 million shares at A$4.68 per share to raise A$120 million before costs
• Placement proceeds to fast-track development of ultra-high-grade rare earth projects and rare earth separation refinery in Brazil
  
  

A link to the full announcement can be found here.

Contacts

Bernardo Da Veiga, Managing Director and CEO

investors@brazilianrareearths.com
www.brazilianrareearths.com

Sign up to our investor hub at investors.brazilianrareearths.com

FAQ

What did BRELY announce about the Amargosa bauxite resource in December 2025?

BRELY reported a JORC mineral resource of 568 Mt, including 98 Mt of direct‑ship bauxite. According to the company, the scoping study models a 5 Mtpa DSB project with first‑quartile cost positioning and strong cash generation metrics.

How material is the Carester offtake and partnership for BRELY's rare earth plans?

BRELY signed a binding 10‑year offtake and technical partnership with Carester. According to the company, Carester will support engineering and buy concentrate to underpin up to ~150 tpa DyTb oxides at its separation facility.

What cash and financing did BRELY report at 31 December 2025 (BRELY)?

BRELY held A$162.4 million in cash at quarter end and completed an A$120m placement. According to the company, placement proceeds will fast‑track rare earth project development and refinery plans in Brazil.

When does BRELY expect an Amargosa spin‑out and what is the timeline?

BRELY is advancing a de‑merger and lodged suitability materials for a mid‑2026 spin‑out of Amargosa. According to the company, listing materials were submitted and a spin‑out is targeted for mid‑2026, subject to approvals.

Who is BRELY's new CFO and what experience do they bring to the company?

BRELY appointed John Vander Ploeg as Chief Financial Officer. According to the company, he has over 20 years' experience in listed‑company reporting, complex transactions, technical accounting and cross‑border integration.