Brazilian Rare Earths (BRE) Q3 2026 TU earnings summary

Executive summary

• Monte Alto’s maiden Mineral Resource grades 11.3% TREO; integrated Monte Alto–Camaçari Scoping Study forecasts strong economics and first-quartile costs.

• Exploration expanded high-grade mineralisation at Monte Alto and Sulista; pilot commissioning produced the first concentrate and Stage II hydrometallurgical piloting secured partner co-funding.

• Cash and cash equivalents were A$121.8m at 30 September 2026, with no borrowings.

Financial highlights

• Scoping Study forecasts after-tax NPV8 of US$6.0bn, IRR of 90%, 1.1-year payback and average annual operating free cash flow of US$1.2bn under Argus long-term EU/US prices.

• Study forecasts first-five-year output of 6,351 tpa NdPr oxide, 274 tpa DyTb, 360 tpa gadolinium and 1,060 tpa yttrium.

• Q3 operating cash outflow was A$14.3m; 9M operating cash outflow was A$38.8m. Quarterly exploration and evaluation payments were A$13.1m.

• Quarter-end cash was A$121.8m; estimated funding available for 8.5 quarters based on the quarter’s relevant outgoings.

Outlook and guidance

• Updated Monte Alto Mineral Resource Estimate targeted for Q4 2026, incorporating post-cut-off drilling subject to resource conversion and further studies.

• Sulista resource update planned after step-out and infill campaigns; more than 10,000m of drilling is underway across the Sulista South exploration corridor.

• Stage II hydrometallurgical pilot plant commissioning is targeted for Q2 2027; construction and co-product recovery testing are planned.

• Fast-track Monte Alto concentrate sales are under assessment, subject to further engineering and technical studies.