ABx Group (ASX: ABX) Records Australia’s Best-Ever Clay Rare Earth Extraction – Time to Buy?

ABx Group hits record rare earth extraction in Tasmania

ABx Group (ASX: ABX) has achieved what no other Australian clay-hosted rare earth developer has managed, delivering record extraction rates that significantly strengthen the economic case for its Deep Leads project in northern Tasmania. Column leach tests conducted by ANSTO returned up to 86% total rare earth extraction (with 81% as a benchmark average across bulk samples), including 76% dysprosium and 79% terbium, the two most valuable and strategically important elements in the rare earth basket.

These results matter because they comfortably beat the company’s previous benchmarks of 65-75% extraction. For investors watching the critical minerals space, this suggests ABx Group could be closer to a low-cost production pathway than many had anticipated, which explains why shares jumped 7.14% recently to A$0.09.

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Record Extraction Opens Low-Cost Production Pathway

The latest test work used 26-kilogram bulk samples from trial pit DLP002, with both column tests delivering above 80% extraction. CEO Dr Mark Cooksey described the results as “extremely encouraging”, noting that “heap leach could be superior to tank leach.”

This distinction is important for investors to understand. Heap leaching typically requires less fixed infrastructure than tank leaching, offering lower capital intensity and faster construction timelines. For a company targeting commercial production quickly, this validation could meaningfully reduce the funding hurdle to enter the market.

Deep Leads hosts an 89 million tonne resource averaging 844 ppm total rare earth oxides, with combined dysprosium and terbium grades of 36 ppm, the highest of any ionic clay deposit in Australia. We believe the combination of record extraction rates and premium grade positions ABx well for potential development, though execution remains the key challenge ahead.

US Partnership and Premium Product Position ABx Group for Growth

ABx has already secured a pathway to market through a Memorandum of Understanding with Ucore Rare Metals, a processor backed by the US Department of Defence and the Canadian government. The agreement grants Ucore the first right of refusal for 50% of ABx’s production over five years, providing access to Western supply chains seeking non-Chinese sources.

In December, ABx produced its maiden mixed rare earth carbonate (MREC) containing 4% dysprosium and 0.7% terbium, more than twice the content of any peer product. This premium composition translates to a basket price 17-51% higher than competitors, a meaningful advantage if the company can successfully scale to production.

The company raised AUD 6.05 million in November 2025 to advance engineering studies, exploration drilling, and offtake negotiations, providing near-term funding to progress key milestones.

The Investor’s Takeaway for ABx Group

ABx Group currently trades at AUD 0.09 per share with a market capitalisation of approximately AUD 34 million, still relatively modest given the strategic value of its deposit. The stock has gained over 100% in the past 12 months as investors recognise the project’s potential.

For those seeking critical minerals exposure, the recent results strengthen the bull case: record extraction rates, a US-backed offtake partner, a premium MREC product, and funding to advance development. However, this remains an early-stage opportunity with meaningful execution risk. ABx is pre-production with no rare earth revenue, and transitioning from successful test work to commercial operations involves considerable technical and financing hurdles.

For risk-tolerant investors, we believe ABx offers compelling exposure to the heavy rare earth thematic at a reasonable valuation. Near-term catalysts, including final test results and offtake discussions, should continue driving interest, though conservative investors may prefer further de-risking before adding positions.