Rare Earth Breakthrough in Sichuan: New Ore Bodies Discovered with High TREO Grades

[SMM Rare Earth Daily Review: Rare earth prices consolidate on a strong note; metals struggle to catch up with muted transactions] Overall, the rare earth market was supported by a recovery in Pr-Nd oxide futures and tightening low-priced supply of some medium-heavy rare earth products, with prices consolidating on a strong note. However, downstream follow-through remained cautious, and actual transactions were stagnant. In the near term, as the traditional September-October peak season approaches, downstream magnetic material enterprises' order and production schedule expectations are improving, and Pr-Nd product prices are expected to maintain a drifting higher pattern. Medium-heavy rare earth products, given limited inquiry activity, are likely to continue consolidating on a strong note.

[Oxide offers edge up slightly, while metals and magnetic materials remain stable overall] Yesterday, Pr-Nd oxide offers began to rise from midday, as suppliers held a bullish outlook on the market, held prices firm, and were reluctant to sell at low prices. Downstream purchasing was relatively cautious, and actual transactions were limited. Dysprosium oxide prices moved steadily, with sluggish market inquiries and limited follow-through in actual deals. Terbium oxide prices held steady, with cautious downstream purchasing and a subdued trading atmosphere.

【SMM Rare Earth Flash】 Brazilian Rare Earths has identified multiple high-grade intercepts in the south and east extensions of its Monte Alto deposit, including 8 meters at 21.8% TREO from 189 meters depth, and 6.2 meters at 25.4% TREO from 162 meters depth. The company has prioritized the northern area as a key exploration target, planning 1,400 meters of drilling there and a total of 5,000 meters across the north, south, and east to further delineate the deposit. Assays returned up to 6.664% PrNd oxide, 0.2853% Dy oxide, 1.0986% Nb oxide, and 0.4443% U oxide, confirming significant enrichment of rare earths and associated minerals. These results are not yet included in the current resource estimate and PEA, with a resource update targeted by year-end. The company noted that the deposit remains open to the north, south, east, and at depth. The Rocha project's PEA earlier this year outlined a post-tax NPV of approximately US$7.9 billion.