VMM
Viridis Mining and Minerals Limited
ASX
Delivery of First REO to Sole LATAM Magnet Manufacturer
Sentiment:
Operational Update
26 May 2025 7:16 PM
Viridis Mining and Minerals, through its joint venture Viridion, has successfully delivered the first locally sourced magnetic rare earth oxides to Latin America's only magnet manufacturer in Brazil, marking a significant step towards establishing a diversified, integrated rare earth supply chain outside China.
Better than expected
The document highlights 'exceptional project economics even at todays cyclical low rare earth prices', indicating strong performance despite challenging market conditions.
The successful delivery of the first locally sourced rare earth oxides to Latin America's only magnet manufacturer is described as a 'significant milestone', surpassing typical expectations for project development.
The unique positioning of Viridion as the 'only local source of oxides to Brazil and broader Latin America' provides a strategic advantage that exceeds standard market positioning.
Capital raise
Viridis and Viridion are well-placed to capitalize on significant funding opportunities provided by two FINEP / BNDES Public Calls, which total R$8 Billion (approximately US $1.4 Billion) for strategic mineral transformation and R&D centers.
The potential funding available will fast-track the Colossus and Viridion development timelines, indicating a future capital injection to accelerate project progress.
Summary
- Viridis Mining and Minerals Ltd, via its joint venture Viridion Pty Ltd with Ionic Rare Earths Limited, has delivered the first locally sourced magnetic rare earth oxides to CIT SENAI ITR facility in Lagoa Santa, Brazil.
- These separated rare earth oxides, including neodymium, praseodymium, dysprosium, and terbium, were recovered from end-of-life magnets in Brazil, primarily from decommissioned MRI machines and wind turbine generators.
- The magnets were pre-processed in Brazil, shipped to Ionic Technologies' facility in Belfast for advanced hydrometallurgical separation into high-purity individual oxides, and then transported back to Brazil for delivery.
- CIT SENAI ITR will use these recycled oxides for lab-scale experiments to evaluate their transformation into alloys and subsequent magnet production, assessing quality and performance for high-end applications.
- The Colossus Scoping Study indicates Viridis is the lowest cost rare earth producer globally with exceptional project economics, even at current cyclical low rare earth prices.
- This initiative positions Viridion as the sole local source of rare earth oxides in Brazil and Latin America, aligning with Brazil's strategic mineral initiatives and potential funding from BNDES and FINEP totaling R$8 billion (approximately US $1.4 billion).
- Viridis aims to develop a fully integrated rare earth supply chain, the first of its kind outside of China, and plans to incorporate recycling of waste streams from ramp-up operations to create a secure, closed-loop NdFeB supply chain in Brazil.
- CIT SENAI's Lab Fab facility aims to increase NdFeB magnet production to 100 tonnes per annum by the end of 2026.
- Tests with the recycled oxides are expected to be completed during the second half of this year, providing a technical assessment of the process viability.
Sentiment
Score: 9
Explanation: The document conveys a highly positive sentiment, emphasizing significant milestones, unique market positioning, strong project economics even at low prices, substantial government support, and a clear path towards a fully integrated supply chain outside China, with no explicit negatives or delays mentioned.
Positives
- The successful delivery of the first locally sourced magnetic rare earth oxides to Latin America's only magnet manufacturer marks a significant operational milestone.
- The use of recycled end-of-life magnets from Brazil for oxide production promotes a circular economy and domestic resource utilization.
- Viridion is uniquely positioned as the only local source of rare earth oxides in Brazil and Latin America, providing a strategic advantage.
- The Colossus Scoping Study confirms Viridis as the lowest cost rare earth producer globally with outstanding project economics, even amidst low rare earth prices.
- The initiative aligns with Brazil's strategic mineral policies and is well-positioned to access substantial government funding, including R$8 billion (approximately US $1.4 billion) from BNDES and FINEP.
- The project contributes to developing a fully integrated rare earth supply chain outside of China, enhancing supply security for critical minerals.
- The planned increase in NdFeB magnet production at CIT SENAI's Lab Fab facility to 100 tonnes per annum by the end of 2026 indicates strong growth potential.
- The project has the potential to meet up to 7% of global magnetic rare earth oxides demand, offering significant market impact.
- The simple processing of ionic clay projects, without the need for blasting, crushing, or corrosive acids, suggests lower operational complexity and environmental impact.
Negatives
- The document does not explicitly mention any negatives or challenges.
Risks
- The success of the project relies on the outcome of initial lab-scale experiments by CIT SENAI ITR to evaluate if the recycled rare earth oxides can be successfully transformed into alloys and meet performance standards for high-end applications.
- While funding opportunities exist, securing the R$8 billion (approximately US $1.4 billion) from BNDES and FINEP is not guaranteed and depends on successful applications.
- The project's economics, while strong at current low prices, are still subject to the cyclical nature of rare earth prices.
- The ramp-up to 100 tonnes per annum of NdFeB magnet production by the end of 2026 at CIT SENAI's Lab Fab facility is an ambitious target that requires successful scaling and integration.
- The development of a fully integrated supply chain is a complex undertaking that requires ongoing technical, operational, and financial execution.
Future Outlook
Viridis is progressing towards developing a fully integrated rare earth supply chain, the first of its kind outside of China, by advancing the Colossus Project through technical assessments for an Installation License and continuing discussions for project financing and off-take agreements. The company also plans to incorporate recycling of waste streams generated during ramp-up operations to further its objective of a secure, closed-loop NdFeB supply chain in Brazil, supporting the growth of high-value advanced manufacturing industries.
Management Comments
- Chief Executive Officer, Rafael Moreno commented that Viridis is progressing on the pathway to creating a circular mine to magnet supply chain, looking to capitalize on the burgeoning supply chain developing in Brazil and Latin America.
- Mr. Moreno stated that the delivery of high purity Nd, Pr, Dy, Tb oxide to SENAI / FIEMG is another important example of Viridion's capability to help develop a Brazilian and Latin American rare earth magnet industry and ensure security of supply for downstream users looking to decouple its dependence on the Chinese supply chain.
- Mr. Moreno also noted that the timing of this delivery and the outstanding economics shown by their Scoping Study, even at today's low rare earth prices, puts them in a strong position compared to peers to take advantage of the substantial funding now being made available through BNDES and FINEP to support Brazil's strategic mineral initiatives.
- Jos Luciano Pereira, SENAI ITR's Innovation and Technology Manager, expects all tests with the recycled oxides to be completed during the second half of this year, which will provide a technical assessment of the viability of this process, calling it an important step and a milestone for all involved.
- Flávio Roscoe, President of FIEMG, highlighted this as a historic process emphasizing the importance of recycling, stating that these materials are not new but have been efficiently reused.
Industry Context
This announcement comes at a critical time amidst China's recent rare earth export restrictions, underscoring the global necessity for diversified and secure rare earth supply chains. Viridis's efforts to establish a fully integrated rare earth supply chain in Brazil, from mining to magnet production and recycling, directly addresses this geopolitical and supply security challenge. The focus on end-of-life magnet recycling also aligns with broader global trends towards circular economy principles and sustainable resource management in the critical minerals sector. Brazil's government support through significant funding initiatives further positions the country as a potential key player in the non-Chinese rare earth market.
Comparison to Industry Standards
- The Colossus Scoping Study showcases Viridis as the lowest cost rare earth producer globally, indicating a competitive advantage in production economics compared to other rare earth projects worldwide.
- The development of a fully integrated rare earth supply chain in Brazil, from mining to magnets, is highlighted as the first of its kind outside of China, setting a new benchmark for vertical integration in the industry.
- Viridion is uniquely positioned as the only local source of rare earth oxides to Brazil and broader Latin America, differentiating it from international suppliers and fostering regional self-sufficiency.
- The project's potential to meet up to 7% of magnetic rare earth oxides global demand suggests a significant scale that could impact international market dynamics and reduce reliance on dominant producers like China.
- The simplicity of processing ionic clay projects, which avoids the need for blasting, crushing, flotation, corrosive acids, and high-temperature cracking, contrasts favorably with the more complex and energy-intensive processes often seen in hard-rock rare earth projects globally.
Stakeholder Impact
- Shareholders of Viridis Mining and Minerals Ltd may benefit from increased company value due to strategic milestones, strong project economics, and potential access to significant government funding.
- Employees could see job creation and stability as the integrated rare earth supply chain develops in Brazil, supporting local advanced manufacturing industries.
- Customers, particularly CIT SENAI ITR and other downstream users in Brazil and Latin America, will gain a secure and local source of high-purity rare earth oxides, reducing their dependence on international supply chains.
- Suppliers involved in the collection and pre-processing of end-of-life magnets in Brazil, as well as those providing services for the Belfast facility, will see continued demand for their services.
- Creditors may view the company more favorably due to strong government support, robust project economics, and a clear development strategy, potentially leading to more favorable financing terms in the future.
Next Steps
- CIT SENAI ITR will conduct initial lab-scale experiments to evaluate if the recycled rare earth oxides can be successfully transformed into alloys and meet performance standards for high-end applications, with tests expected to be completed during the second half of this year.
- Viridis is preparing all technical assessments for the Installation License, which is required before project construction can commence.
- Viridis will continue to progress important discussions with potential strategic off-takers and project financing options.
- Viridion plans to incorporate the recycling of waste streams generated during ramp-up operations to further the objective of developing a secure, closed-loop NdFeB supply chain in Brazil.
- Discussions are ongoing with Minas Gerais authorities regarding the siting of pilot facilities for both REO refining and magnet recycling operations near the Colossus Project.
Key Dates
- 2024-04-03: Viridis entered a Joint Venture for Separation, Refining and Recycling of Rare Earths with Ionic Rare Earths Limited.
- 2024-09-24: Maiden Mixed Rare Earth Carbonate (MREC) test results from the Northern Concessions of the Colossus Project were announced.
- 2024-11-06: Viridis announced progress on downstream rare earth oxide refining, magnet manufacturing, and recycling partnerships.
- 2024-12-12: Maiden Mixed Rare Earth Carbonate (MREC) product from the Southern Complex was announced.
- 2025-01-00: Brazilian Development Bank (BNDES) and Financier of Studies and Projects (FINEP) launched their first Public Call (Notice N 001/2025) to allocate R$5 billion (~US $880 million) for strategic mineral transformation.
- 2025-01-22: Colossus delivered the largest Measured & Indicated Resource and Highest MREO Grade IAC Project Globally.
- 2025-01-28: Viridis achieved critical environmental and regulatory milestones.
- 2025-02-00: BNDES and FINEP launched a second public call, allocating R$3 billion (~US $530 million) for Research, Development and Innovation centers.
- 2025-02-24: Scoping Study confirmed Colossus as a premier rare earth project globally with outstanding project economics.
- 2025-05-27: Viridion delivered the first rare earth oxide to Latin America's only magnet manufacturer.
- 2025-07-01: Expected completion of all tests with recycled oxides by CIT SENAI ITR during the second half of this year.
- 2026-12-31: Target for CIT SENAI's Lab Fab facility to increase NdFeB magnet production to 100 tonnes per annum.
Keywords
Rare Earth Elements, Rare Earth Oxides, Rare Earth Recycling, Integrated Supply Chain, Brazil Mining, Magnetic Rare Earths, NdFeB Magnets, Critical Minerals, Circular Economy, Ionic Clay, Colossus Project, Viridis Mining, Ionic Rare Earths, BNDES, FINEP
VMM
Viridis Mining and Minerals Limited
ASX
Sector: Materials
Filings with Classifications
Capital raise
26 May 2025 7:16 PM
Operational Update
- Viridis and Viridion are well-placed to capitalize on significant funding opportunities provided by two FINEP / BNDES Public Calls, which total R$8 Billion (approximately US $1.4 Billion) for strategic mineral transformation and R&D centers.
- The potential funding available will fast-track the Colossus and Viridion development timelines, indicating a future capital injection to accelerate project progress.
Better than expected
26 May 2025 7:16 PM
Operational Update
- The document highlights 'exceptional project economics even at todays cyclical low rare earth prices', indicating strong performance despite challenging market conditions.
- The successful delivery of the first locally sourced rare earth oxides to Latin America's only magnet manufacturer is described as a 'significant milestone', surpassing typical expectations for project development.
- The unique positioning of Viridion as the 'only local source of oxides to Brazil and broader Latin America' provides a strategic advantage that exceeds standard market positioning.
Better than expected
30 April 2025 12:14 AM
Quarterly Activity Report
- The JORC Mineral Resource Estimate (MRE) at the Colossus Project increased by 140%, reaching 493Mt @ 2,508ppm TREO and 601ppm MREO, which is better than previous estimates.
Capital raise
13 March 2025 12:50 AM
Interim Financial Report
- The company completed a $3.5 million placement on February 4, 2025, at $0.33 per share.
- The company completed a placement to raise A$4 million through an equity issue at $0.52 per share in October 2024.
Better than expected
13 March 2025 12:50 AM
Interim Financial Report
- The company's net loss after tax decreased compared to the previous year, indicating improved financial performance.
Better than expected
24 February 2025 10:08 PM
Scoping Study Announcement
- The Colossus project's economics, including a pre-tax NPV8 of US$1.43 billion and an IRR of 43%, suggest better than expected results.
Better than expected
12 February 2025 9:14 PM
Project Update
- The Colossus project boasts the largest and highest-grade MREO Measured & Indicated IAC resource globally.
- Metallurgical testing shows industry-leading MREO recoveries of 76-78% using a cost-efficient and environmentally friendly process.
Capital raise
3 February 2025 5:27 PM
Reinstatement Announcement
- The reinstatement of trading is directly linked to an announcement regarding a capital raising.
- The company is expected to announce details of the capital raising soon.
Capital raise
29 January 2025 5:16 PM
Trading Halt Request
- The company has requested a trading halt pending an announcement regarding a capital raising.
Capital raise
27 January 2025 4:32 PM
Environmental and Regulatory Update
- The company is continuing to focus on project financing discussions.
Better than expected
21 January 2025 6:35 PM
Resource Upgrade Announcement
- The resource size increased by 140%, which is significantly better than expected.
- The Measured & Indicated resource is now the largest and highest grade globally, which is better than industry standards.
Better than expected
21 January 2025 5:27 PM
Exploration Update
- The resource estimate has increased by 140%, which is better than expected.
- The project has the largest and highest-grade MREO resource in the Measured & Indicated categories globally, which is better than expected.
- Metallurgical recoveries are industry-leading, which is better than expected.
Better than expected
11 December 2024 5:56 PM
Exploration Update
- The results are better than expected due to the industry-leading 78% MREO recoveries, which exceed typical recoveries in similar projects.
- The low impurity level of approximately 0.7% is significantly better than global benchmarks for public IAC projects.
- The high TREO content of 58% in the final MREC product, along with a 38% MREO/TREO ratio, surpasses expected values and indicates a high-quality deposit.
Better than expected
3 December 2024 5:35 PM
Exploration Update
- The drill results were significantly better than expected due to the discovery of multiple exceptionally thick and high-grade rare earth intercepts, exceeding previous expectations for both grade and width.
Capital raise
28 November 2024 11:38 PM
Annual General Meeting Results
- Approval of a 10% placement facility was granted.
- Ratification of prior share issues (April and October placements) was approved.
Better than expected
19 November 2024 5:19 PM
Investor Presentation
- The high-grade nature of the MRE, exceeding expectations, and the exceptional metallurgical recoveries are significantly better than anticipated.
Capital raise
19 November 2024 5:19 PM
Investor Presentation
- $4 million capital raise completed on 14 October 2024
Better than expected
13 November 2024 5:44 PM
Metallurgical Test Results
- The ionic recoveries achieved at the Southern Complex significantly exceeded expectations, surpassing all previous results at the Colossus project and demonstrating a superior economic profile.
Capital raise
29 October 2024 9:17 PM
Annual General Meeting Notice
- Resolution 4 seeks shareholder approval for a 10% placement facility, potentially raising additional capital.
- Resolution 10 seeks approval to issue 1,712,308 October Placement Shares to Tranche 2 participants, potentially raising approximately $0.9 million.
Better than expected
29 October 2024 6:51 PM
Exploration Update
- The drilling results significantly exceeded expectations, with multiple intersections revealing exceptionally high grades and thicknesses of rare earth elements, particularly MREOs, far surpassing previous models.
Better than expected
13 October 2024 6:22 PM
Capital Raise Announcement
- The successful A$4 million placement exceeded expectations, demonstrating strong investor confidence in the company and its Colossus project.
- The exceptional maiden MREC results from the Colossus project significantly exceeded expectations, showcasing superior economics and potential to disrupt the industry.
Capital raise
9 October 2024 6:42 PM
Trading Halt Announcement
- The company is undertaking a capital raising.
Capital raise
20 September 2024 4:22 AM
Annual Report
- The company's ability to issue additional shares under the Corporation Act 2001 to raise further capital. The Group has a history of successfully raising funds from equity raisings in the past
Worse than expected
20 September 2024 4:22 AM
Annual Report
- The company reported a significant net loss after tax of $8,314,168 for FY2024, substantially exceeding the previous year's loss of $814,226, indicating worse than expected financial performance.
Better than expected
12 August 2024 7:21 PM
Exploration Update
- The company acquired new tenements at a low cost, expanding its landholding in key prospects.
- Drilling results indicate high-grade mineralisation in the Cupim South Extension.
Better than expected
31 July 2024 12:51 AM
Quarterly Activity Report
- The company announced a globally significant maiden MRE for the Colossus IAC Project of 201Mt @ 2,590ppm TREO with 668ppm MREO.
- Metallurgical test work at the Colossus IAC Project achieved high bulk composite sample recoveries globally, averaging 79% recovery in a 30-minute leach cycle.
Better than expected
29 July 2024 7:28 PM
Exploration Update
- The drilling results are better than expected due to the high TREO grades and MREO concentrations discovered at the Cupim South extension.
- The infill drilling at the Northern Concessions returned grades over twice the block model estimates, indicating a significant improvement in the resource potential.
Better than expected
16 July 2024 7:15 PM
Missing type for ID: 2009
- ASX:VMM announces better than expected results.
Worse than expected
10 July 2024 9:28 PM
Missing type for ID: 3480
- ASX:VMM announces worse than expected results.
Better than expected
2 July 2024 6:58 PM
Market Announcement
- The granting of the Cupim South mining licenses and Centro Sul exploration licenses is better than expected as it secures critical tenements for the company's development strategy.
Better than expected
11 June 2024 7:13 PM
Exploration Update
- The drilling results have exceeded expectations by discovering higher grades and extending the mineralized zones beyond the previously known resource area.
Better than expected
3 June 2024 6:55 PM
Mineral Resource Estimate
- The Colossus project has a high MREO content compared to its peers.
Better than expected
8 May 2024 7:27 PM
Investor Presentation
- The document highlights better than expected results due to the high grades of rare earth elements found near the surface.
- The document highlights better than expected results due to the high recoveries achieved in initial metallurgical testing.
- The document highlights better than expected results due to the strategic partnerships and government support secured.
Better than expected
7 May 2024 6:31 PM
Exploration Update
- The drilling results at Ribeirao encountered significantly higher grades than previously anticipated, improving the potential resource estimate.
- The mineralized footprint at Cupim South has doubled, indicating a larger resource potential than initially expected.
Better than expected
29 April 2024 6:14 PM
Quarterly Activity Report
- The drilling results exceeded expectations with high-grade zones and new discoveries.
- Metallurgical testing showed exceptional ionic adsorption recoveries.
- The company secured additional mining rights and expanded its land position.
Capital raise
17 April 2024 7:49 PM
Trading Halt Request
- The company is undertaking a capital raising.
- The details of the capital raising will be released in a subsequent announcement.
Better than expected
17 April 2024 6:26 PM
Metallurgical Test Results Announcement
- The maiden bulk met test work completed at Colossus exceeded expectations.
- The average ionic recoveries of magnet rare earth elements (MREE), including Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb), outperformed every publicly known IAC prospect and deposit globally.
Better than expected
9 April 2024 6:30 PM
Exploration Update
- The discovery of the highest peak grade publicly reported by any company within the entire Complex of 27,087ppm TREO is better than expected.
Capital raise
2 April 2024 6:07 PM
Joint Venture Announcement
- The Parties acknowledge and agree that on and from the Commencement Date (being the date the JV Co is incorporated), a detailed budget and funding model will be developed to inform future funding requirements, which must be agreed by both Parties.
Better than expected
2 April 2024 6:07 PM
Joint Venture Announcement
- The joint venture aims to be the first producer of refined Rare Earth Oxides (REO) in Brazil, utilizing innovative separation and recycling technologies, which is better than the current industry standard.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.