RareX has moved Cummins Range through key permitting and heritage milestones, while stronger metallurgical results broaden the project’s critical-minerals potential. But the explorer’s annual loss widened to A$5.07 million, cash burn remained high and its going-concern assessment still depends on future funding and project development.
- A$5.07 million annual loss, up from A$3.50 million
- Cummins Range mining lease and Jaru heritage agreement completed
- Metallurgical testing lifted TREO concentrate grade to 25.15%
- A$4.04 million cash balance after A$7.08 million equity issuance
- Mrima Hill consortium reaches Kenya’s RFP stage, but licence remains uncertain
Cummins Range clears two major hurdles
RareX Limited (ASX:REE) has crossed two of the most important non-technical hurdles at its Cummins Range rare earths project in Western Australia, securing a mining lease and signing a mining heritage protection agreement with the Prescribed Body Corporate of the Jaru Native Title Determination.
The company describes the mining lease as establishing the State’s acceptance of the project in principle and providing the statutory right to develop a mining operation, subject to operating and environmental approvals. The agreement with the Jaru, signed after a general meeting in Halls Creek attended by more than 150 members, is the first mining agreement entered into by the Jaru since its 2018 determination. Those milestones reduce tenure and heritage uncertainty, but they do not turn Cummins Range into a producing mine.
Metallurgy strengthens the multi-mineral case
RareX’s latest testwork produced its strongest reported beneficiation results for the project. SGS Lakefield achieved a 9.5-times TREO upgrade to a 25.15% concentrate grade, with rougher recovery of up to 74.6%. The work identified monazite liberation as the main constraint on recovery, giving the company a defined target for further optimisation through finer and staged grinding.
Separate programs also pointed to additional value beyond rare earths. Gega Elements achieved near-complete gallium extraction and reported scandium recovery of 89% to 93%, while RareX continues to assess a biologically derived nanophosphate pathway. The next stage is to push concentrate grade above the 25% benchmark, refine gallium and scandium recovery, and advance the nanophosphate work towards larger field trials. These are encouraging test results, not yet an economic study or production outcome.
Losses rise as exploration portfolio expands
The financial statements show the cost of remaining an explorer. RareX recorded a consolidated loss after tax of A$5.07 million for the year ended 30 June 2026, compared with A$3.50 million a year earlier. Operating cash outflow rose to A$4.51 million from A$2.71 million, while exploration expenses reached A$1.38 million and share-based payment expense rose to A$1.44 million.
Cash nevertheless increased to A$4.04 million from A$1.75 million, largely reflecting A$7.08 million in share-issue proceeds during the year. The balance sheet also held A$2.93 million of listed financial assets, principally Kincora Copper shares. RareX’s directors state that the group’s ability to continue as a going concern depends on raising further equity or debt, disposing of listed securities if needed and reducing working-capital requirements. Exploration commitments total A$7.72 million, including A$859,000 due within one year.
Kenya tender advances, but the licence is still conditional
The RareX and Iluka Resources consortium has advanced to the Request for Proposal stage of Kenya’s competitive tender for the Mrima Hill niobium, rare earths, phosphate and manganese project. RareX says its submission, due in October 2026, includes local mining and initial processing, by-products, skills development through Curtin University and a proposed pilot plant work program.
A A$50 million share subscription facility with GEM Global Yield LLC SCS is earmarked for the consortium’s first three years of work, but the annual report does not present that facility as completed project funding. More importantly, the prospecting licence has not been granted: the report says approval remains at the discretion of Kenya’s National Mining Corporation and the Cabinet Secretary. Mrima Hill therefore remains a potentially significant growth option rather than a secured asset.
Khaleesi adds copper to the exploration mix
RareX also commenced maiden drilling at the 966-square-kilometre Khaleesi project in Western Australia’s East Yilgarn region. Initial indicative pXRF readings from drill hole KRC012 outlined copper enrichment over approximately 74 metres from 77 metres downhole at the Niobe prospect, adding copper to an exploration story already focused on gallium, niobium and rare earths.
Because the readings are indicative field measurements rather than definitive laboratory assays, the significance of the copper zone remains unresolved. The company is also considering next steps at its Mt Mansbridge heavy rare earths project, where earlier exploration identified veins and altered sandstone carrying elevated TREO and dysprosium-terbium grades, while drilling at the Piper carbonatite target awaits native title negotiations.
Bottom Line?
RareX has improved the project-development pathway at Cummins Range, but the next test is financial: converting technical progress into a funded work program before the current cash and listed investments are stretched.
Questions in the middle?
- Can further flowsheet optimisation turn the strong Cummins Range testwork into an updated economic development case?
- Will Kenya grant the Mrima Hill prospecting licence, and on what terms?
- How much additional capital will RareX need to meet its A$7.72 million exploration commitments and maintain its broader project portfolio?