Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Brazilian Rare Earths Advanced Sulista Discovery, Pilot Plant and Development Strategy
Highlights
Sulista Drilling Added Exploration Upside
Brazilian Rare Earths Limited (ASX: BRE) announced on 30 September 2026 that exploration drilling had identified a fresh high-grade rare earth zone at Sulista South in Bahia, Brazil. Stage 1 drilling had identified multiple mineralised seams over approximately 500 metres of strike, with true thickness reaching around 18 metres and reported grades of up to 13.3% total rare earth oxide (TREO). The mineralised system continued beyond the areas tested by drilling, with further potential both along its strike direction and at greater depths.
The program had also extended Sulista East mineralisation by approximately 430 metres beyond the existing Mineral Resource footprint. BRE had planned further drilling across more than 4.5 kilometres of largely untested southern corridor, while targeting an updated Sulista Mineral Resource Estimate by the end of 2026.
Camaçari Pilot Plant Reached Key Milestone
Earlier, on 8 September 2026, BRE had confirmed successful commissioning of its Stage I pilot plant at Camaçari. The facility had produced its first rare earth mineral concentrate and moved the company into bulk-scale metallurgical testing for its pre-feasibility work.
SENAI CIMATEC and its partners had committed R$6.4 million, equivalent to approximately AU$1.7 million, toward the Stage II hydrometallurgical plant, representing about 59% of expected capital and operating expenditure. Total co-funding for the Camaçari pilot facility had reached about R$14.6 million, or AU$3.9 million. Stage II commissioning had been scheduled for the second quarter of 2027.
Exploration Investment Increased Half-Year Loss
In its half-year financial report signed on 28 August 2026, BRE had recorded a net loss of AU$39.565 million, compared with the restated AU$16.104 million loss in the prior corresponding period. Exploration and evaluation expenditure had risen to AU$31.794 million, reflecting accelerated work across Monte Alto and Sulista.
The company had maintained AU$134.4 million in cash and cash equivalents at 30 June 2026, providing liquidity to continue its development program.
Outlook
BRE had positioned Sulista drilling, the Camaçari pilot program and ongoing pre-feasibility studies as its principal development priorities. Further drilling, a targeted year-end Sulista resource update and planned Stage II commissioning in Q2 2027 had represented the next major milestones, although future resource growth and project economics remained dependent on additional technical work and feasibility outcomes.
Note- All data presented is based on information available at the time of writing.
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