Resouro Strategic Metals (ASX:RAU)Share Price and News
About Resouro Strategic Metals
Resouro Strategic Metals (ASX:RAU) is developing the Tiros rare earths project in Brazil. It has a Measured and Indicated Resource of 1.4 billion tonnes at 12% titanium oxide and 4,000ppm TREO.
The Tiros project lies in northern Minas Gerais, Brazil, 350km west-north-west of Belo Horizonte. It is near a town called Tiros with 8,000 people. The project lies in close proximity of major federal highways, high voltage power lines and major rail infrastructure. Brazil has a reputation as a mature mining jurisdiction with a stable regulatory regime. World leading companies such as BHP, Anglo American, Vale and Rio Tinto have all operated there for decades.
The project covers an area of 45,048ha and only 7% has been explored. It was explored for over a decade prior to Resouro first acquiring the project in 2022 – initially to acquire a 33% stake with an ability to earn up to a 90% stake in the project, which it has achieved.
History of Resouro Strategic Metals
Resouro Strategic Metals was incorporated in Canada in 1992 and began life as a web-based shipping solutions business. In May 2008, the company sold all of its assets and sought out new business opportunities. In May 2022, Resouro bought ISON, the private company that then owned Tiros and listed on the TSX-V. Its MRE was unveiled in 2024 after two years of exploration activities.
Exploration had occurred at Tiros beginning more than a decade before Resouro picked it up (back in 2010 at the hands of then owned Aguia Metals), but bearish rare earth prices led to exploration work being put on hold. But the project was kept in good order and new exploration permits were obtained.
Future Outlook of Resouro Strategic Metals (ASX:RAU)
The key events lying ahead of Resouro include further exploration work, further metallurgical testwork and a Mining License. Resouro is laying the foundations for a Scoping Study as a precursor to a formal Preliminary Feasibility Study (PFS).
The challenge for the company will be battling investor sentiment with rare earth prices lagging since high levels achieved in early 2022. This is due to weaker demand for EVs.
Is Resouro Strategic Metals (ASX:RAU) a Good Stock to Buy?
Analysts have a mixed view of Resouro Strategic Metals. While the company's Tiros project offers an attractive long-term opportunity, analysts also point to the fact that the high-grade resource and existing infrastructure bring significant associated risks of early-stage mining and commodity price fluctuations. Dual-listing on the ASX and TSX is viewed as a good move for raising capital and increasing visibility. However, the company is currently in its development stage, and hence it may be prone to volatility and delays. Investors have to weigh the risk against the upside potential of the Tiros project and the company's aptitude for overcoming such ills within the mining sector.
Our Stock Analysis
Resouro Strategic Metals (ASX:RAU): What other ASX rare earths developer has a 1.7 billion tonne deposit?
To say Resouro Strategic Metals (ASX:RAU) has got a monster of a rare earths deposit is an understatement. Resouro just…
Frequently Asked Questions
Resouro Strategic Metals aims at the exploration and development of high-grade projects of rare earths and titanium. Its flagship asset is the Tiros project in Minas Gerais, Brazil.