Brazilian Rare Earths (ASX:BRE) Rises as Monte Alto Ore Sorting Delivers 95% Yields: Time to Buy?

Brazilian Rare Earths jumps after high yields at Monte Alto

Brazilian Rare Earths (ASX: BRE) climbed 3.5% to A$4.05 on Wednesday after releasing breakthrough ore sorting results from its flagship Monte Alto project in Brazil. The test work achieved metal recoveries of 96-99% while more than doubling feed grades from 12.4% to 27% TREO in a single pass. CEO Bernardo da Veiga said the results “exceeded all our expectations.” For investors watching the critical minerals space, this matters because it proves BRE can use simple, dry processing to turn raw rock into high-grade concentrate at very low cost. With China tightening its grip on global rare earth supply, the question now is whether this A$1.1 billion explorer deserves a place in your portfolio.

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Why These Ore Sorting Results Change Everything

Think of ore sorting like a high-tech filter. Before rare earth minerals go through expensive processing, sensors identify and separate the good stuff from the waste rock. BRE’s test work rejected 25% of the feed mass as waste while losing less than 0.3% of the valuable rare earth metals. That’s exceptional efficiency.

What makes this even more compelling is the grade upgrade. The multi-sensor system boosted grades from 12.4% TREO to 27% TREO, more than doubling the concentration in a single pass. For context, most rare earth deposits globally run at just 6-8% TREO (Total Rare Earth Oxides). Monte Alto is genuinely world-class.

The “dry” processing method is also a big deal for ESG-conscious investors. Unlike traditional methods that use water and chemicals, BRE’s sensor-based approach uses minimal water and zero chemical reagents. This eliminates the need for tailings dams, a sensitive issue in Brazil’s mining history, and could potentially speed up environmental approvals.

Multiple Catalysts Lined Up for Mid-2026

Brazilian Rare Earths enters 2026 with A$162.4 million in cash, representing roughly 15% of its market cap. This strong financial buffer provides a comfortable runway to advance development plans without immediate funding pressure.

The most significant near-term catalyst is the pilot plant commissioning, scheduled for mid-2026. Developed through a partnership with Brazilian research institution SENAI CIMATEC, this facility will test and optimise processing methods ahead of production decisions. Successful results here could be a major share price driver.

Also targeted for mid-2026 is the Amargosa bauxite spin-off. Brazilian Rare Earths has already lodged ASX listing materials for this advanced-stage asset, which could unlock additional value for shareholders by creating a separate listed company.

On the sales front, BRE has locked in a binding 10-year offtake deal with Carester, a leading rare earth processor. Carester will purchase BRE’s heavy rare earth concentrate, de-risking the path to market considerably.

The Investor’s Takeaway for Brazilian Rare Earths

Analysts covering Brazilian Rare Earths remain uniformly bullish, with Buy ratings and price targets ranging from A$6.07 to A$7.40, implying 50-80% upside from current levels. The investment case centres on ultra-high grades, a favourable Brazilian operating environment, and multiple near-term catalysts.

While a market cap of A$1.1 billion is significant for a pre-revenue company, the low projected capital intensity and A$162.4 million cash buffer provide a valuation floor rarely seen in the exploration sector. The dry, chemical-free processing method may also allow for faster permitting compared to traditional rare earth projects.

For growth-focused investors comfortable with exploration risk and a 2-3 year horizon, Brazilian Rare Earths offers compelling exposure to what could become a globally significant rare earth producer. More conservative investors may prefer waiting for pilot plant results or a pullback toward A$3.50 before building positions. The recent results represent meaningful technical validation, but the bigger milestones lie ahead.