Company Interview / Axel Ree targeting low‑capex rare earths in Brazil’s ‘Lithium Valley’ | TIP Emerging Wealth Winners

Key points

Focus on magnet‑rich rare earths for EVs, robotics and semiconductorsPlanned in‑situ recovery using Epsom salts to lower capex and speed developmentWoolrich deposit compared with Malaysia’s producing Jericho mine analogueStandalone gallium opportunity and mining‑friendly Brazilian jurisdictionBoard track record cited at Alligator Energy (ASX:AGE) and Lotus Resources (ASX:LOT)

Paul Dixon outlines how Axel Ree is targeting magnet‑rich rare earths such as neodymium, praseodymium, dysprosium and terbium, which he states are critical inputs for electric vehicles, robotics, semiconductor chips and other high‑growth technologies. Dixon characterises the company’s Brazilian ionic clay deposits as “small but mighty”, arguing that investors increasingly seek earlier cash flow rather than traditional, long‑dated mining projects.

Dixon says Axel Ree plans to trial in‑situ recovery using Epsom salts (magnesium sulphate) as a leaching agent, rather than conventional open‑cut mining. He describes this method as the current global standard in China and Malaysia and contends it can substantially reduce capital intensity and surface disturbance. He notes a $14 million market capitalisation and claims investors have yet to recognise the project’s potential, citing unfortunate listing timing amid a sharp rare earth price fall and ongoing “stale” shareholder overhang.

The Woolrich deposit is likened to Malaysia’s Jericho mine, with Dixon suggesting it provides a clear analogue for potential scale and capex. He highlights a standalone gallium deposit, continuing cash balance, board track record at companies such as Alligator Energy (ASX:AGE) and Lotus Resources (ASX:LOT), and views Brazil’s Minas Gerais state as a supportive, mining‑friendly jurisdiction.

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