Fund Manager Summary on Brazilian Rare Earths Ltd (ASX:BRE)
In February 2026, Pengana Capital commented that Brazilian Rare Earths Ltd (ASX:BRE) reported two processing breakthroughs that can more than double ore grade (from 12.7% to ~27% TREO) via simple sorting and recover 97% of TREO using a low‑temperature 150°C acid cure, with a scoping study (mine plan) due mid‑year. Across Pengana’s commentary from April 2025 to February 2026 the consensus view is that Brazilian Rare Earths presents significant upside driven by structural tailwinds and multiple value levers: a world‑class high‑grade rare earth deposit plus adjacent bauxite and gallium assets with strong commodity price support, recent government approval for a pilot plant and a major Sulista discovery that expands the resource and economies of scale, positive metallurgy from ANSTO and company tests that suggest low‑cost, high‑recovery processing, and a scoping study for Amargosa showing an NPV of USD 630 million, 1.2‑year payback and USD 100 million annual EBITDA potential; fund managers highlight material cash and asset value already on the balance sheet (figures cited include AUD and USD valuations and cash balances referenced in reports) and the potential to monetize bauxite early via a low‑cost direct‑ship route. Key risks and strategic considerations emphasized are execution and timing risk around drilling, the scoping study and mine plan, market volatility driving share price swings, regulatory and stakeholder management given uranium content despite apparent government support, and the need to finance and scale processing infrastructure; actionable priorities noted are advancing drilling and the mine plan, delivering the scoping study and pilot plant scale‑up to de‑risk metallurgy and economics, optimizing a staged development to capture bauxite cashflows quickly, and monitoring commodity price trends for bauxite, gallium, uranium and scandium which materially affect project valuation.
Commentary From The Managers
There are 17 insights from 2 fund managers regarding their investment in Brazilian Rare Earths Ltd (ASX:BRE) available on Thesis Tracker.
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Commentary From The Managers
Pengana Capital
28 Feb 2026
$5.34
Summary
- Pengana Capital believes the recent processing breakthroughs materially de-risk Brazilian Rare Earths and continues to hold because they significantly improve ore grade, recovery and the prospects for attractive project economics.
- Share price reaction: Brazilian Rare Earths rose 41% following the announcement of two processing breakthroughs.
- Grade uplift — sorting: A simple, low-cost sorting process can more than double TREO grade from 12.7% to approximately 27%.
- Recovery — metallurgy: Metallurgical testing indicates ~97% of contained TREO can be extracted using a relatively low-temperature (150°C) acid cure.
- Combined impact: Higher feed grade plus very high recovery materially improve contained metal per tonne and the operating profile, increasing the likelihood of strong project economics.
- Strategic significance: The simplicity and low-temperature nature of the processes meaningfully reduce technical and execution risk compared with more complex flowsheets.
- Next steps: A scoping study (mine plan), expected mid-year, should provide greater clarity on what appear to be highly attractive project economics.
Pengana Capital Group
31 Dec 2025
$3.96
Summary
- Pengana Capital Group believes the stock is materially undervalued and continues to hold because the Amargosa scoping study delivers compelling economics while the company also controls the world’s richest rare earth deposit, offering significant upside.
- Share reaction: Shares fell 9% despite the positive study release, reinforcing the view of market mispricing.
- Scoping study (Amargosa): An 85‑page report showing an NPV of USD 630 million at current spot prices.
- Project economics: Extremely attractive with a 1.2‑year payback driven by a low‑cost direct‑ship strategy using trucks for haulage and expected annual EBITDA of USD 100 million.
- Scalability: Initial truck haulage supports rapid low‑cost production; the project can be significantly expanded later by adding rail.
- Balance sheet vs market value: Current market value is ~USD 760 million with USD 130 million cash, implying the remainder of the company—including the rare earth asset—is being valued at effectively zero.
- Optionality and timing: The rare earth scoping study is expected in mid‑2026, creating a material catalyst and optionality beyond Amargosa.
- Investment rationale summary: Strong, fast‑payback cash flows from Amargosa, meaningful expansion optionality, a significant cash position, and an undervalued rare earth deposit underpin continued conviction.
Pengana Capital Group
30 Nov 2025
$4.21
Summary
- Brazilian Rare Earths fell 24%, attributed to limited news.
- Current market value around AUD 1bn is considered very attractive.
- Company holds AUD 200m in cash.
- Possesses a bauxite deposit valued at approximately AUD 900m.
- Owns the richest rare earth deposit on the planet.
- Sunrise Energy, a pureplay scandium asset, valued at AUD 850m.
- Scandium has three major uses: fuel cells, strengthening aluminium, and piezoelectric filters.
- Global demand for scandium expected to rise from 60 tonnes to 300 tonnes per annum.
- China produces 90% of the global supply and has restricted exports to the US.
- Brazilian Rare Earths has grades of 300–500ppm as a by-product of rare earth production.
- Also has high grades of uranium, niobium, and tantalum, all of which are valuable.
- Looking forward to the scoping study next year to highlight product value.
Pengana Capital Group
30 Sept 2025
$3.75
Summary
- Brazilian Rare Earths rose 60% following government approval for a rare earth pilot plant.
- The pilot plant approval signifies government support for the project, despite uranium content concerns.
- Brazil operates three nuclear reactors and aims to reduce its uranium imports through domestic production.
- The Sulista discovery indicates that the Monte Alto deposit is not the only high-grade site within the company’s 1,800 sq km tenement.
- This discovery allows for an expansion of the future processing plant, enhancing economies of scale.
- Pengana Capital Group continues to hold its position based on these developments.
Pengana Capital Group
31 Aug 2025
$2.31
Summary
- Brazilian Rare Earths rose 6% on positive sentiment toward the sector.
- The company has significantly lagged behind its peers, Lynas and MP Materials, both valued at approximately AUD 15bn.
- Despite this, it holds what is considered to be the richest rare-earth deposit globally.
- Further details on its bauxite and rare-earth deposits are expected over the next six months.
- This information is anticipated to drive a re-rating in the share price.
- The company is currently valued at AUD 770m with AUD 80m in cash.
- The bauxite deposit alone could be worth several hundred million dollars.
- This valuation is supported by listed Australian peers such as Canyon Resources and Metro Mining, both valued at around AUD 500m.
Pengana Capital Group
30 June 2025
$2.44
Summary
- Brazilian Rare Earths Ltd. has seen a 23% increase following positive metallurgical results.
- Results were reported from ANSTO (Australia’s Nuclear Science and Technology Organisation).
- The findings highlight a simple and low-cost refining process for producing rare earths.
- This process will also yield uranium and high-grade coproducts such as niobium, scandium, and tantalum.
- Pengana Capital Group continues to hold its position in Brazilian Rare Earths due to these promising developments.
Pengana Capital Group
31 May 2025
$2.00
Summary
- Pengana Capital Group notes a recent 11% decline in Brazilian Rare Earths despite significant drilling results.
- Drilling results have greatly expanded the size of its ultra high-grade rare-earth province.
- The Sulista deposit is located 80km south of the initial find at Monte Alto, along a 180km strike.
- Sulista and Pelle are identified as much larger areas than Monte Alto, with potential to significantly increase the overall resource of the company.
- Pengana Capital Group is awaiting further drilling data and a detailed mine plan for the rare earth and bauxite deposits by year end.
- Additionally, there has been a recent surge in uranium prices (up 80% in two months), which benefits the company due to its high uranium grades.
Pengana Capital Group
30 Apr 2025
$2.25
Summary
- Brazilian Rare Earths rose 28% following the announcement of a high-grade bauxite and gallium project adjacent to its rare earth project in Bahia.
- The deposit was extensively drilled by Rio Tinto prior to Brazilian Rare Earths acquiring the project in 2023.
- Since acquisition, the price of bauxite has tripled due to increased dependence on imports by China.
- The price of gallium has surged to over $600,000 per ton following China's export ban to the U.S.
- Pengana Capital Group believes the project could have a rapid, low-cost development pathway.
Pengana Capital Group
31 Jan 2025
$2.17
Summary
- Pengana Capital Group notes that Brazilian Rare Earths experienced an 8% decline despite reporting promising drilling results.
- The average grade across all 69 holes drilled is 14.2% TREO (Total Rare Earth Oxide), with some holes reaching 45%.
- High grade Monazite sand has been identified, with grades up to 10.8%, allowing for potential profitability from overburden removal.
- Pengana anticipates the mine plan to be revealed in mid 2025.
- Brazilian Rare Earths' grades are significantly higher than competitors, with an average of 14% compared to 6% for Lynas and MP Materials.
- Future drilling results are expected from the company's extensive 1800 sq km tenement.
- The Pelle deposit is notably 20x larger than the initial Monte Alto deposit.
Pengana Capital Group
30 Nov 2024
$2.54
Summary
- Pengana Capital Group continues to monitor developments in Brazilian Rare Earths Ltd.
- Recent updates highlighted the positive metallurgy of the Monte Alto deposit.
- The simplicity of processing for metal separation from ore is a notable advantage.
- Despite these positives, Brazilian Rare Earths experienced a 14% decline in shares.
- This decline occurred following the seemingly positive update, raising questions about market reactions.
Pengana Capital Group
31 Aug 2024
$2.75
Summary
- Brazilian Rare Earths rose 11% after releasing very positive drilling results from its Monte Alto deposit.
- Grades reached up to 39.1% Total Rare Earth Oxide (TREO), with most intercepts above 18%.
- This performance significantly exceeds the 6% grade of the world’s current high-grade leader, Lynas.
- Further drilling results are expected by year-end from other discoveries within its 1800sqkm tenement.
- The Pelle deposit has a surface area 30x larger than Monte Alto, generating particular interest.
- Anticipated metallurgical work will detail how the company plans to separate and produce various metals, including rare earths, niobium, scandium, tantalum, and uranium.
- This information will be crucial for assessing the cost of building the mine and processing facilities.
- Optimal routes to market will also be informed by these developments.
Pengana Capital Group
30 June 2024
$2.91
Summary
- Pengana Capital Group highlights a significant new ultra high grade rare earth deposit at the Sulista project with Total Rare Earth Oxide grades of up to 22.4%.
- The company's tenements cover a total area of 1800 sq km.
- The initial discovery was at Monte Alto, followed by Pelle, which is believed to be 30x larger than Monte Alto, and Sulista, which is 10x larger than Monte Alto.
- Large parts of the tenement remain unexplored.
- Drilling results are expected to be released continuously over the next year to validate the resource.
- The company raised $80 million recently, providing a strong balance sheet to support the exploration phase.
- Pengana Capital Group continues to hold because of the promising developments and potential for significant resource validation.
Pengana Capital Group
31 May 2024
$3.25
Summary
- Pengana Capital Group notes a significant rise of 8.7% in Brazilian Rare Earths following the appointment of Mr. Eric Noyrez as a Non-Executive Director.
- Mr. Noyrez brings over twenty years of experience in the rare earths industry, enhancing the company's leadership.
- He is currently the Lead Director of Neo Performance Materials Inc, a key player in advanced industrial materials.
- Previously, he served as CEO of Serra Verde Mineracao, a notable Brazilian rare earths company.
- From 2010 to 2014, he held senior positions at Lynas Corporation, including CEO, which adds to his extensive background.
- Pengana Capital Group views Mr. Noyrez's addition as a significant boost to the company’s commercial expertise.
- The company successfully raised capital in June, with support from the Fund.
- Further drilling results are anticipated in the coming months, which will help validate the company's world-leading resource.
Pengana Capital Group
31 Mar 2024
$2.39
Summary
- Pengana Capital Group notes that Brazilian Rare Earths fell 15% in March despite a strong start to the year.
- April saw a strong recovery in performance following Hancock Prospecting's announcement of 5% stakes in Lynas and MP Materials.
- Hancock Prospecting, owned by Gina Rhinehart, holds a 6% stake in Brazilian Rare Earths.
- Increased media coverage is focusing on the potential for M&A activity in the sector.
- Pengana Capital Group continues to hold Brazilian Rare Earths due to these developments.
Pengana Capital Group
29 Feb 2024
$2.90
Summary
- Brazilian Rare Earths achieved a remarkable 74% one-month return following the release of exceptional drilling results from its Monte Alto deposit.
- Reported rare earth grades of up to 34.4%, a significant achievement for any metal.
- The deposit has the potential to be the largest and richest rare earth deposit globally.
- High grades of heavy rare metals such as Dysprosium and Terbium are particularly noteworthy, as they are crucial for electric motor production and are in short supply.
- Compared to the two largest non-Chinese producers, Lynas Rare Earths and MP Materials, Brazilian Rare Earths offers much higher heavy rare earth grades.
- Current market value of $570 million is seen as undervalued, with potential for significant appreciation.
- Pengana Capital Group continues to hold because Brazilian Rare Earths is expected to be a highly prized takeover target in the future.
Pengana Capital Group
31 Jan 2024
$1.70
Summary
- Pengana Capital Group continues to hold its position in Brazilian Rare Earths Ltd.
- After an initial 13% drop in January, the stock is now trading at $2.18, reflecting a 50% increase from the IPO price of $1.45.
- The investment thesis is supported by extremely positive drilling results released last week.
- Brazilian Rare Earths is believed to have discovered one of the richest rare earth deposits globally.
- Further drilling results are expected in Q2, which may indicate the company can become the lowest cost producer in the market.
Pengana Capital Group
31 Dec 2023
$1.89
Summary
- Pengana Capital Group added a significant new position during the month via an initial public offering of Australian-listed Brazilian Rare Earths.
- The company has 1400sqkm of tenements in Brazil’s Bahia state with potential to be the largest and richest rare earth reserve globally.
- The investment returned 32% from the issue price of $1.45 on December 20 to the close of the month, with a current trading price of $1.7.
- Pengana Capital Group expects shares to rise during the year as the company releases drilling and reserve updates.
- Market interest is high regarding the source rock for 30 high-grade boulders found on the surface with rare earth grades over 30%.
- The current richest rare earth deposit belongs to Lynas at Mt Weld with a grade of 5%.
- Drilling results are expected to be released in Q1, and if successful, the company could become the lowest cost producer globally.
- Even without ultrahigh grade ore, the company can still be the largest rare earths deposit in the world.
- With only 1% of its tenements explored, the company has 510 million tonnes of resource at a grade of 1500ppm (0.15%).
- The reserves published in the prospectus were based on 10,000m of drilling done until May 2023, with an additional 19,000m drilled since.
- The company acquired tenements from Rio Tinto with 57,000m of cores currently being analysed.
- Assays from both drilling efforts are expected in Q1, with an updated resource anticipated in Q2.
- Pengana Capital Group rates the management extremely highly, led by Executive Chairman Todd Hannigan and CEO Bernardo de Veiga.
- The market capitalisation as of January 12, 2024, is $350 million, with closest peer Meteoric (MEI AU) valued at $500 million.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Brazilian Rare Earths Ltd (ASX:BRE)?
Fund managers including Pengana Capital Group and Pengana Capital have invested in Brazilian Rare Earths Ltd (ASX:BRE).
Why do fund managers invest in Brazilian Rare Earths Ltd?
Fund managers invest in Brazilian Rare Earths Ltd due to its significant asset base and growth potential in the rare earth sector. The company holds one of the richest rare earth deposits globally and recently expanded its resource base with high-grade findings at the Sulista deposit. With rising demand for uranium, niobium, and gallium, alongside a favorable drilling profile, Brazilian Rare Earths presents a compelling risk/reward opportunity. The potential for a strong dividend, combined with low development costs for its projects, further enhances its attractiveness to investors.
What happened to Brazilian Rare Earths Ltd (ASX:BRE)?
Fund managers are investing in Brazilian Rare Earths Ltd. due to significant developments, including government approval for a rare earth pilot plant and a major discovery at the Sulista project, showcasing strong governmental support and expanding resource potential. The company's attractive market value, substantial cash reserves, and valuable resource portfolio, including a lucrative bauxite deposit, position it favorably in a supply-restricted global market. Anticipation for a forthcoming scoping study aims to further clarify the company's value and growth prospects.
What is the short interest in Brazilian Rare Earths Ltd (ASX:BRE)?
The short interest in Brazilian Rare Earths Ltd (ASX:BRE) is 0.13% which makes it the 393rd most shorted stock on the ASX. Of the 274.0M shares that Brazilian Rare Earths Ltd has on issue, 367.1K have been sold short.
What does Brazilian Rare Earths Ltd (ASX:BRE) do?
Brazilian Rare Earths Ltd. operates as a mineral exploration company. It focuses on the discovery and development of mineral resources in Brazil. The company was founded on March 3, 2021 by Bernardo da Veiga and is headquartered in Sydney, Australia.