Meteoric Resources (ASX:MEI) Surges 28% as Caldeira Wins Key Environmental Approval

Investors Reprice Meteoric Resources After Caldeira Rare Earths Licence

Meteoric Resources (ASX:MEI) has seen a sharp rerating this month, with the shares surging 28% following progress at its flagship Caldeira rare earths ionic clay project in Minas Gerais, Brazil. Caldeira sits at the core of Meteoric’s valuation and stands out as one of the most advanced ionic clay rare earth developments outside China, which is exactly why the market reacted so quickly.

The company has now confirmed it has received its preliminary environmental licence, an important de risked step that moves the project closer to development and reinforces its strategic relevance. While there is still execution risk ahead, particularly around permitting timelines and funding, this milestone materially improves project visibility and helps explain why investors are starting to reassess the long term value proposition.

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The Caldeira Project

The Caldeira Project covers a total landholding of 193 square kilometres and hosts a high grade mineral resource of around 1.5 billion tonnes, giving the project both scale and meaningful long term optionality to produce rare earths at very low operating costs. Strategically, the project is well located near Rio de Janeiro and São Paulo, providing access to infrastructure and skilled labour. Importantly, the region benefits from a power grid supplied entirely by renewable hydro, solar, and wind energy through the Energy Company of Minas Gerais, which supports a lower cost and lower carbon operating profile.

What is a Preliminary Environmental Licence (LP) in Brazil?

In Brazil, environmental permitting for mining projects follows three sequential steps. The first is the Preliminary Licence or LP, which confirms that a project is environmentally viable and approves the project location. This is the most critical and highest risk stage, which explains why today’s announcement triggered such a strong rerating. If an LP is rejected or heavily constrained, a project cannot progress further, making this a potential terminal setback for any developer. The second step is the Installation Licence or LI, which allows construction to begin, followed by the Operating Licence or LO, which permits operations. These next stages will be important milestones for investors to monitor.

A key takeaway from the update is that the Caldeira Project received its LP without restrictions. This means regulators imposed no additional conditions beyond standard compliance requirements. That matters because restrictions often translate into higher capital expenditure or design changes to meet regulatory standards. Securing approval without added constraints materially de risks the project at a regulatory level and helps preserve the assumptions underpinning the Pre Feasibility Study.

What’s the timeline on the Meteoric Resources project?

From a project timeline perspective, securing the LP immediately allows Caldeira to advance to the Installation Licence or LI, which is the final regulatory approval required before construction. Based on current guidance, this milestone could be achieved by mid 2026, providing a clearer pathway from permitting into execution.

Managing Director Stuart Gale reinforced the importance of this outcome, stating that the company was very pleased to have obtained the LP without restriction, calling it strong validation of the Caldeira Project. He noted that this outcome enables Meteoric to move quickly into the next stage of the licensing process and focus on securing the LI for construction. For investors, this underscores both regulatory momentum and management confidence as the project continues to de risk.