SYDNEY, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Brazilian Rare Earths Limited (ASX: BRE / OTCQX: BRELY) (‘BRE’) is pleased to report exceptional results from sensor-based ore sorting test work program that confirms its suitability for Monte Alto’s beneficiation process flowsheet. Key Highlights Exceptional grade enrichment (+100%): Achieved grade upgrade factors of >2x, increasing feed grades from 12.4% TREO to ~27% TREO, using multi-sensor ore sortingHigh-grade product in single-pass: Produced a +27% TREO ultra ...

Core Insights - REAlloys Inc. has entered into non-binding agreements with AltynGroup Kazakhstan LLP to secure rare earth feedstock from Kazakhstan for its North American operations, aiming to integrate Kazakhstan's resources into Western supply chains [1][3][7] Group 1: Strategic Partnership - The partnership aims to identify and develop rare earth-bearing mines in Kazakhstan, with a focus on processing and refining the materials in North America [3][5] - AltynGroup's Kokbulak project, covering 127,000 square kilometers, will provide REAlloys with a concentrate rich in both Light and Heavy Rare Earth Elements, including Terbium and Dysprosium [4][10] Group 2: Investment and Development - AltynGroup has committed to a non-binding investment to support the scaling of REAlloys' U.S. operations, which includes the only dedicated rare earth metallization facility in the U.S. [5][10] - The collaboration will also involve joint development of pilot programs and technology transfer initiatives to enhance materials for defense, semiconductor, and clean-energy supply chains [6][10] Group 3: Market Position and Strategic Importance - Kazakhstan is recognized for having some of the largest rare earth deposits globally, making it a strategic partner for the U.S. in terms of national security and economic interests [7][10] - REAlloys is positioned to meet U.S. protected market demands with its North American supply chain, which includes a unique combination of Heavy and Light Rare Earth Elements [10]

Group 1 - U.S. rare earth miners' shares increased in pre-market trading following the announcement of a $12 billion critical mineral reserve by President Trump [1] - The critical mineral reserve, known as Project Vault, aims to counter China's dominance in rare earth minerals and protect U.S. industries from supply shocks [2][3] - The plan includes $2 billion in private funding and a $10 billion loan from the U.S. Export-Import Bank to support the initiative [3] Group 2 - Rare earths are essential for various technologies, including smartphones, electric vehicles, and military systems, highlighting their importance in the supply chain [3] - The reserve is modeled after existing strategic stockpiles and aims to support U.S. industry while avoiding future disruptions [4]

Core Viewpoint - USA Rare Earth stock experienced a 6.3% increase following news of the U.S. government's "Project Vault," which aims to create a $1 billion stockpile of critical minerals, including rare-earth metals, supported by $10 billion in loans and $1.7 billion in private funding [1][3]. Group 1: Project Vault Overview - Project Vault is designed to stockpile rare-earth metals to mitigate risks associated with potential supply disruptions from China, which dominates the global rare-earth market [3]. - China is responsible for approximately 60% of global rare-earth mining, over 90% of refining, and up to 94% of rare-earth metal magnets produced [3]. Group 2: Implications for USA Rare Earth - While USA Rare Earth could potentially sell rare-earth metals to the stockpile, the company is not currently mining these metals in significant quantities [4]. - The company's involvement in Project Vault may come through its Less Common Metals subsidiary in Britain, which could facilitate the buying and reselling of rare-earth metals at various production stages [4]. - The recent stock price increase may not be justified given the company's current operational status and the nature of Project Vault [4].

Budget Overview - The budget is conservative with tax buoyancy for FY27 assumed at 0.8, lower than the previous year, and GST revenues projected to decrease by 3% in FY27 compared to FY26 [1][8] - The share of revenue expenditure, excluding interest, is proposed to decrease from 52.2% to 50.8% [1][8] Capital Expenditure and Fiscal Deficit - An additional capital expenditure of ₹1.26 lakh crore for FY27 has been budgeted, indicating improved quality of the fiscal deficit [2][9] Strategic Sector Incentives - The budget emphasizes policy nudges and incentives in strategic sectors with long-term economic implications, including nuclear power, data centres, global capability centres (GCCs), and maintenance, repair, and operations (MROs) [2][9] Nuclear Power Sector - The extension of zero basic customs duty on imports for new nuclear power projects until 2035 will lower capital costs for developers, reduce energy costs, and enhance energy security [4][9] Data Centres and Semiconductor Mission - Data centres are incentivized with a long-term tax holiday until 2047 for foreign companies providing cloud services, while the India Semiconductor Mission aims to boost private investment in fabrication, design, and equipment manufacturing [5][9] Manufacturing and Supply Chain Development - Changes in income-tax laws will facilitate just-in-time manufacturing and improve the economics of electronics manufacturing, alongside the development of dedicated rare earth corridors to strengthen strategic supply chains [6][9] Global Capability Centres (GCCs) - Investments in GCCs are encouraged as they drive services exports, job creation, and advanced skills development, particularly in AI and emerging technologies [7][9] IT Services Tax Certainty - Unifying all IT services under a single category with a common safe harbour margin of 15.5% will reduce ambiguity and enhance tax certainty for the sector [7][9] Support for MSMEs - The proposed ₹10,000-crore SME Growth Fund and credit guarantee schemes for invoice discounting aim to provide additional capital for India's 10 million registered MSMEs [7][9] Overall Budget Impact - The budget presents a credible roadmap for increasing competitiveness and long-term growth, although a higher divestment target could have provided more resources and fiscal flexibility [8][9]

Core Insights - USA Rare Earth has proposed a transformative collaboration with the U.S. government, which includes a $1.6 billion support package and a $1.5 billion PIPE transaction, potentially providing up to $3.5 billion in capital for development [4][6][19] Government Support and Financial Structure - The U.S. government package consists of $277 million in federal incentives and a $1.3 billion senior secured loan, with disbursements planned primarily between 2026 and 2028 [3][6] - In exchange for the government incentives, USA Rare Earth will issue 16.1 million shares and 17.6 million warrants, aligning taxpayer interests with potential company upside [2][6] Operational Milestones and Profitability Targets - The company aims for gross profit breakeven in 2027, EBITDA breakeven in 2028, and cash flow breakeven in 2029, with projected 2030 targets of $2.6 billion in revenue, $1.2 billion in EBITDA, and $900 million in free cash flow [4][17] - Accelerated mine-to-magnet buildout includes commercial production at the Round Top deposit targeted for late 2028 and commissioning of the Stillwater magnet plant in Q1 2026 [5][10] Production Capacity and Resource Management - The company targets 27,500 metric tons per annum (tpa) of metal production by December 2027 and 10,000 tpa of magnet-making capacity by June 2030 [8][10] - Round Top deposit is noted for containing 15 of the 17 rare earth elements, with high concentrations of dysprosium and terbium, essential for semiconductor manufacturing [11][18] Strategic Partnerships and Supply Chain - USA Rare Earth has selected Fluor and WSP as EPCM partners for the Round Top project and is working to establish a supply chain that minimizes reliance on Chinese sources [16] - The company plans to source required oxides from third parties initially, with in-house processing capabilities expected to come online in 2027 [13][12]

Core Viewpoint - The U.S. government's $1.6 billion financing package for USA Rare Earth marks a significant shift in industrial policy, providing both a senior secured loan and federal grants, while also acquiring a 10% equity stake in the company [1][5][17] Group 1: Government Involvement - The financing package consists of a $1.3 billion senior secured loan and $277 million in federal grants, with the government acquiring approximately 16.1 million shares and 17.6 million warrants [1][5] - This investment aims to create a secure domestic supply chain for critical minerals, reducing risks associated with capital-intensive development [3][17] Group 2: Market Reaction - Following the announcement, shares of USA Rare Earth rose over 20% intraday, closing with a 7.87% gain, while MP Materials saw its shares decline by 8.95% [4][11] - The capital shift indicates investor confidence in USA Rare Earth as a high-growth opportunity, contrasting with MP Materials' established position [12][17] Group 3: Strategic Importance - USA Rare Earth is positioned to supply heavy rare earths, essential for military applications, while MP Materials focuses on light rare earths for electric vehicles [8][16] - The government's backing of USA Rare Earth highlights its strategic importance in addressing national security vulnerabilities related to heavy rare earth supply, currently dominated by China [8][17] Group 4: Financial Developments - USA Rare Earth secured an additional $1.5 billion in private capital through a PIPE transaction, bringing total liquidity to over $3.1 billion, fully financing its mine-to-magnet strategy [7] - MP Materials reported Q3 2025 revenue of $53.55 million, exceeding analyst expectations, despite facing selling pressure post-announcement [12][13] Group 5: Future Outlook - Upcoming earnings reports for USA Rare Earth and MP Materials will be closely watched for updates on production capabilities and profitability [18]

The Trump administration is planning to invest $1.6bn in Oklahoma-based mining company USA Rare Earth in its latest and biggest deal, reported the Financial Times (FT), citing unidentifiable sources. In return, the US Government will receive a 10% stake in the company, as it continues efforts to onshore rare earth element (REE) projects. It will receive $16.1m in shares in the company and warrants for another 17.6m shares, both at a price of $17.17m, according to one of the sources. USA Rare Earth will ...

Core Insights - USA Rare Earth is set to receive approximately $1.6 billion in funding from the U.S. government, contingent on meeting specific conditions, following discussions with Secretary of Commerce Howard Lutnick [1][2]. Company Overview - Barbara Humpton, the new CEO of USA Rare Earth, has extensive experience, having previously led Siemens USA and held executive roles at Booz Allen Hamilton and Lockheed Martin [3]. - The company aims to reduce U.S. dependence on China by securing government equity stakes in mining operations [2]. Financial Developments - The announcement of the funding deal initially caused USA Rare Earth's stock to rise by 29%, stabilizing at a 7% gain [4]. - USA Rare Earth successfully secured $1.5 billion in private investment, exceeding its initial goal of $500 million [8]. Strategic Initiatives - The company plans to establish a magnet manufacturing facility in Stillwater, Oklahoma, by Q1 2026 and commence commercial mining at the Round Top deposit in Sierra Blanca, Texas, by late 2028 [5]. - The U.S. government will monitor the company's progress closely, with funding disbursed in stages based on the achievement of key milestones [7][9]. Challenges and Risks - USA Rare Earth faces significant challenges in ramping up its manufacturing capabilities and developing the Round Top mine, which has a history of speculation without commercial development [10][11]. - Despite these challenges, the CEO expressed confidence in the development of Round Top, citing advancements in mineral extraction methods and ongoing progress in testing [12].

Core Viewpoint - USA Rare Earth (USAR) shares experienced a nearly 7% increase following the Trump administration's announcement of a $1.6 billion investment in the company, which specializes in rare-earth elements [1] Group 1: Stock Performance - USAR stock has risen over 85% since the beginning of the year [2] - The stock is currently trading at $26, significantly higher than the $17.17 price at which the U.S. government agreed to purchase shares and warrants [3] Group 2: Investment Risks - The recent federal and private investments are expected to be dilutive for existing shareholders, reducing the attractiveness of the stock [4] - Historical data indicates that USAR stock has an average loss of over 7% in February, making it less appealing for short-term investors [4] Group 3: Company Challenges - USAR is considered speculative and pre-revenue, facing significant capital and execution challenges typical of large-scale mining operations [5] - The company is projected to remain unprofitable this year, with negative cash flow expected to continue through 2028 [5] Group 4: Market Sentiment - Analysts on Wall Street believe that the recent rally in USAR's share price may be overextended, especially given concerns regarding the company's "going concern" status [7]