Outstanding Financial Returns Across Market Scenarios
The PFS demonstrates Colossus' remarkable financial resilience, delivering robust returns even at current depressed rare earth prices:
- US $899 million after-tax NPV8 (AUD $2.13 billion) at base case pricing of US $90/kg NdPr
- 34% after-tax IRR with a rapid 2-year payback period
- US $197 million average annual operating cash flow (base case)
- US $5.64 billion total revenue over a conservative 20-year mine life
Even at today's cyclical low spot price of US $63/kg NdPr, Colossus maintains strong economics with a US $481 million after-tax NPV8 and 24% IRR, demonstrating exceptional downside protection across commodity cycles.
Industry-Leading Cost Position Drives Competitive Advantage
The project's financial strength is underpinned by its position as one of the lowest-cost rare earth producers globally:
- US $6.20/kg TREO C1 production cost places Colossus in the first quartile of the global cost curve
- US $9.30/kg TREO all-in sustaining cost ensures healthy margins even in challenging markets
- US $286 million initial CAPEX (excluding contingency) reflects capital-efficient development
"The Pre-Feasibility Study confirms what we've believed from day one: Colossus is emerging as one of the most economically robust and strategically significant rare earth projects globally. With its high-grade MREO profile, scalable resource base, and simple, low-cost metallurgy, Colossus stands out in a market increasingly defined by quality, security, and supply chain diversification."
- Rafael Moreno, CEO
Understanding Ionic Adsorption Clays: Colossus' Competitive Edge
Ionic adsorption clay (IAC) deposits represent the holy grail in rare earth mining, offering significant advantages over traditional hard-rock deposits:
Unlike hard-rock rare earth deposits that require energy-intensive crushing, grinding, and aggressive chemical processing, IACs allow for simple, low-temperature leaching that dramatically reduces both capital and operating costs. Rare earth elements in IACs are loosely bound to clay minerals, requiring only mild reagents (ammonium sulfate) at ambient temperature to release the valuable metals.
This metallurgical advantage translates directly to Colossus' industry-leading economics, with processing costs approximately 40-60% lower than hard-rock alternatives while delivering superior environmental performance through reduced energy consumption, chemical usage, and waste generation.
Strategic Resource Base Drives Long-Term Value
Colossus boasts a world-class resource foundation with significant growth potential:
- 493 million tonnes at 2,508 ppm TREO global resource (January 2025)
- World's highest-grade MREO resource among Measured & Indicated IAC projects globally
- PFS mine plan uses just 20% of the total resource, utilising only 98.5Mt over 20 years
- Only 13% of landholding included in current resource, highlighting vast exploration upside
The PFS mine plan strategically prioritises high-value magnetic rare earth oxide (MREO) content rather than simply targeting total rare earth volume, ensuring premium basket pricing and strong margins throughout the mine life.
Clear Path to Production with Key Milestones Achieved
Viridis Mining and Minerals has systematically derisked the Colossus development pathway:
- Environmental Impact Assessment submitted with preliminary licensing underway
- Certificate of Regularity for Land Use already secured, a critical permitting milestone
- Metallurgical flowsheet validated by ANSTO, confirming high recoveries and low impurities
- Operational startup targeted for 2028 with a clear development timeline
The company has secured valuable government support through formal agreements with both the State Government of Minas Gerais and the Municipality of Poços de Caldas, streamlining the approval process and enhancing project economics through tax incentives.
Why Investors Should Follow Viridis Mining and Minerals
Viridis Mining and Minerals offers a compelling investment proposition in the critical minerals space:
- Exceptional project economics that remain robust across market cycles
- First-quartile cost position ensuring profitability even at depressed rare earth prices
- Significant growth potential with only a fraction of the resource base included in current plans
- Strategic position in the race to develop Western rare earth supply chains
- Clear development pathway with major permitting milestones already achieved
With global demand for magnet rare earths projected to double over the next decade, driven by electric vehicles and renewable energy, the Viridis Mining and Minerals Colossus project is ideally positioned to become a cornerstone supplier to the Western market. As one of the most advanced rare earth projects in South America with demonstrated financial viability, Viridis stands ready to capitalise on growing demand for secure, sustainable rare earth supply.
The company is now advancing toward a Definitive Feasibility Study while progressing strategic discussions with potential offtake partners and financiers, with further updates expected as the project continues its development momentum.
Ready to Capitalise on the World's Most Promising Rare Earth Project?
Discover why Viridis Mining and Minerals' Colossus project delivers exceptional returns even at today's depressed rare earth prices, with its industry-leading cost position and strategic resource base. For comprehensive details on this compelling investment opportunity in the critical minerals space, view the full PFS announcement and position yourself ahead of the curve in the race for secure, sustainable rare earth supply.
