SP Angel Initiates Research Coverage
SP Angel has initiated research coverage on Harena Rare Earths Plc with a Buy recommendation and a target price of 9.4p per share, highlighting the Ampasindava Project's JORC Mineral Resource Estimate of approximately 699Mt at 868ppm TREO. The project is seen as a potential scalable ex-China source of critical magnet rare earth oxides, with discussions underway for up to US$5M in potential initial commitment from the U.S. International Development Finance Corporation. SP Angel's valuation estimates the project's post-tax NPV10 at approximately US$200M under base case pricing, suggesting strong upside potential given the company's current trading valuation. Near-term catalysts include Exploitation Licence conversion in the first half of 2026 and DFS completion in 2026.
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Harena Rare Earths Plc (LSE: HREE, OTCQB: CRMNF), the rare earths company focused on the Ampasindava ionic clay rare earth project in Madagascar (the "Ampasindava Project"), notes the publication of a research initiation report by its broker, SP Angel Corporate Finance LLP ("SP Angel").
SP Angel has initiated coverage on the Company with a Buy recommendation and a target price of 9.4p per share.
Research Highlights:
| · | The Ampasindava Project is a large-scale ionic clay rare earth project hosting a JORC Mineral Resource Estimate of approximately 699Mt at 868ppm TREO. |
| · | The Ampasindava Project is positioned as a potential scalable ex-China source of high-value magnet rare earth oxides, including neodymium, praseodymium, dysprosium and terbium, which are critical for electric vehicles, renewable energy, advanced manufacturing and defence. |
| · | Rare earth supply remains highly concentrated, with >60% of upstream supply and >90% of downstream processing controlled by China, highlighting growing Western supply chain security concerns. |
| · | Discussions are underway with the U.S. International Development Finance Corporation (DFC) regarding a potential initial commitment of up to US$5M, with scope for broader project-level support. |
| · | Near-term catalysts over the next 24 months include Exploitation Licence conversion (1H 2026), DFS completion (2026), potential government funding update (2026), demonstration plant validation (2026-27), and potential strategic/offtake agreements ahead of a targeted Final Investment Decision in 2027. |
SP Angel's valuation analysis estimates the Ampasindava Project's post-tax NPV10 at approximately US$200M under base case pricing, increasing to US$510M under spot pricing assumptions, suggesting the Company is currently trading at approximately 0.1x P/NAV, reflecting strong upside potential.
The full research report is available on the Company's website and can be found here.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.