Viridis Mining and Minerals (ASX: VMM) has announced the results of its Pre-Feasibility Study (PFS) for the Colossus Rare Earth Project in Brazil, demonstrating robust economics and positioning the company for a global leadership role in the Western market. Viridis Mining and Minerals is a resource exploration and development company with assets in Brazil, Canada, and Australia. The PFS highlights the project’s unmatched rare earth potential with compelling financial metrics across various pricing scenarios.
The economic highlights of the Colossus Project include an after-tax NPV of US$899 million and an after-tax IRR of 34%. The average annual operating cash flow is projected at US$197 million, with a total revenue of US$5.643 billion over the 20-year Life of Mine (LOM). The C1 production cost per kg TREO is estimated at US$6.20, with a CAPEX to first production of US$286 million (excluding contingency).
The PFS underscores Colossus as the first rare earth project in South America to reach this stage. Key improvements over the scoping study include a 65% increase in annual operating cash flows and a 24% improvement in after-tax NPV at spot prices. CAPEX has been reduced to US$358 million due to vendor quotations and tax agreements. The project demonstrates financial resilience with a pre-tax NPV of US$773 million even at a spot price of US$63/kg NdPr.
According to CEO Rafael Moreno, the PFS confirms Colossus as one of the most economically robust rare earth projects globally. The project benefits from high-grade MREO, a scalable resource base, and low-cost metallurgy. The company is now focused on advancing offtake and funding discussions, positioning Viridis as a key player in the Western rare earth supply chain. Production is targeted for 2028, with a clear timeline toward construction and commissioning.
