09-07-2025
Viridis forecasts world's lowest-cost rare earths project in Brazil
Viridis Mining & Minerals has dropped an industry-leading prefeasibility study (PFS) for its flagship Colossus rare earths project in Brazil, unveiling economics that position it as one of the most financially robust and lowest-cost rare earths operations globally.
With a pre-tax net present value of US$1.41 billion (A$2.14 billion) and a potentially cheapest-in-class operating cost, Colossus looks a chance to redefine the Western rare earths supply chains despite depressed rare earths pricing.
The company's PFS projects a staggering US$5.64 billion (A$8.62 billion) in total revenue over a 20-year mine life at a what it says is a conservative base case price of US$90 a kilogram for the high demand battery metals neodymium-praseodymium.
Even at today's depressed spot price of US$63/kg, the project delivers an impressive US$2.568 billion (A$3.89 billion) in cashflow, underscoring its resilience across market cycles.
Annual operating cashflow is forecast at US$197 million (A$298 million) in the base case, soaring to US$260 million (A$394 million) under an upside scenario of US$111/kg neodymium-praseodymium.
The figures project a juicy bump up from Viridis' tabled scoping study earlier this year. Driven by optimised mine planning and reduced capital costs, the new figures deliver a staggering 65 per cent improvement on the preliminary scoping study numbers.
Initial capital expenditure is estimated at a lean US$286 million (A$434 million), with total capex coming in at US$358 million (A$542 million).
Operating costs are where Colossus truly shines. With a C1 operating cost of just US$6.20/kg total rare earth oxides (TREO) and an all-in sustaining cost of US$9.30/kg, the project would sit firmly as the lowest cost producer of rare earths globally.
The cost advantage stems from the project's true ionic adsorption clay mineralisation, enabling a simple ammonium sulphate leaching process with high recoveries from very low intensity acid inputs.
The PFS evaluates a 5 million tonne per annum production facility, targeting high-grade mineral rare earth oxide (MREO) deposits in the project's Northern Concessions and Cupim South tenements.
Annual production is expected to yield 9448 tonnes TREO, including 3518 tonnes of high-value MREO, with a premium basket price of US$43/kg TREO.
As its name would portent, Colossus is not some small-scale, low-cost, low-capex rare earths project. The resource hosts a compelling 493Mt at 2508 parts per million (ppm) TREO, with 601ppm MREO, of which only 20 per cent is utilised in the PFS' immense 20-year mine life.
Despite Viridis' modest $50 million market cap its study figures compare very favourably to Brazil rare earths kin and $250 million plus market cap Meteoric Resources. Colossus stands shoulder-to-shoulder with Meteoric's Caldeira project as a potential global leader in ionic clay rare earths. With Viridis' study showcasing similarly benchmark low operating costs and an even lower capex of US$358 million vs. Caldeira's US$400–420 million.
The company says a large play card for its lowest operating cost mining potential is the project's access to a 100 per cent from hydro and solar-power grid, coupled with its proximity to established infrastructure in the Brazilian municipality of Poços de Caldas.
Viridis says it is deep in advanced offtake and financing discussions, with the project's premium MREC product, which is low in impurities and rich in MREO attracting significant interest from global refineries.
As geopolitical tensions underscore the need for non-Chinese rare earth supplies, Viridis is emerging as a linchpin in the Western critical minerals landscape. With unmatched economics, a scalable resource and a de-risked development pathway, Colossus looks set to become a cornerstone of global rare earth production.
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