Aldoro’s Kameelburg is an emerging Tier 1 niobium and REE play: East Coast Research

• East Coast Research sets $1.101 target price for Aldoro Resources
• Company’s Kameelburg flagged as emerging Tier 1 niobium, REE project
• Catalysts include positive drill results, metallurgical testing and potential strategic partnerships

Special Report: East Coast Research has initiated coverage of Aldoro Resources by tagging the niobium and rare earths explorer with a target price of $1.101, which represents upside of 255%.

It noted the company’s focus on exploring its flagship Kameelburg REE and niobium project in Namibia at a time of accelerating global demand driven by decarbonisation, electrification, and technological advancement.

Drilling at Kameelburg has thus far validated Aldoro Resources’ (ASX:ARN) belief in its prospectivity with recent assays demonstrating the presence of consistent high-grade niobium while earlier holes in the current drill program contributed to the definition of a maiden resource.

This resource of almost 280Mt at 2.45% total rare earth oxide (TREO) equivalent, or 1.16% TREO, 0.18% niobium and 177ppm molybdenum, is expected to see significant growth once it is updated with the remaining results in late August 2025.

East Coast said the Phase 1 drill results at Kameelburg were encouraging as it confirmed broad zones of mineralisation that’s consistent with surface geophysics and historical data.

Notably, it considers the company’s ability to delineate wide, high-grade intersections across multiple drill holes as reinforcing the potential for the project to emerge as a Tier 1 critical mineral resource.

It added that many holes have ended in mineralisation, underscoring the system’s depth potential and strong geological continuity.

This also validates the presence of a vertically zoned polymetallic system, with upper REE-dominant layers transitioning into deeper niobium-rich zones.

Accelerating resource definition

East Coast noted that ARN’s recent acquisition of two dedicated drill rigs to maintain strong drilling momentum while reducing dependency on third-party contractors will allow the company to fast-track exploration and resource development at Kameelburg.

“This strategic investment is aimed at significantly enhancing the company’s drilling depth and capacity, enabling deeper exploration and a more robust assessment of mineralisation across the project area,” analyst Riddhesh Chandwadkar said.

The Nock 600 rig is capable of drilling to 510m while the Nock 800 rig extends the company’s maximum drilling depth to about 740m, a ~40% improvement over current capabilities.

Additionally, the acquisition covers drill rods sufficient for 15,000m of additional drilling, as well as associated consumables and generators.

As such, the acquisition also positions the company to support its exploration momentum.

Divesting non-core assets

East Coast adds the company has acted in line with its strategy to focus on Kameelburg by carrying out a strategic review of its non-core exploration portfolio in Western Australia.

ARN has received unsolicited expressions of interest in several of its other 100%-owned projects, including the Niobe lithium-rubidium-tantalum project, Wyemandoo lithium-rubidium-tungsten project, Narndee nickel-gold project, and the 85%-owned EPL 7895 gold project.

While no final decisions have been made regarding potential divestments, the company is evaluating commercial options that could include partial or full sales, joint ventures, or other capital initiatives.

Such a move will optimise the company’s portfolio, enabling it to enhance shareholder value by concentrating efforts on its highest-potential asset whilst monetising or restructuring less strategic holdings.

Commodity outlook 

East Coast also touched on the various commodities present at Kameelburg.

It noted the outlook for niobium remains robust as it is underpinned by growing demand from the steel, aerospace and emerging clean energy sectors, while the limited global production is dominated by Brazil and a few other suppliers.

This provides emerging niobium producers with a structural advantage as the minerals’ strategic importance is set to increase, supporting long-term price stability and investor interest.

Rare earths also have a strong forward outlook due to their irreplaceable role in high-tech, renewable and defence applications.

With magnet REEs such as neodymium and praseodymium in high demand for electric vehicles, wind turbines and electronics, the market remains structurally undersupplied. 

China’s dominance in REE refining and recent policy shifts have also amplified global interest in diversifying supply chains, creating a favourable environment for REE projects outside of Asia.

Meanwhile, molybdenum continues to benefit from its essential role in steel alloys, high-performance materials, and renewable energy infrastructure.

Global consumption is expected to grow, driven by power generation, nuclear energy, and industrial applications requiring high-temperature and corrosion-resistant materials, while supply is expected to decline, which may support higher prices over the medium term.

Valuation

East Coast said it values ARN at A$1.024 per share in a base-case scenario and A$1.177 per share in a bull-case scenario using an in-situ valuation-based approach.

“Our mid-point fair valuation price of A$1.101 represents 255% upside potential to the current share price of $0.31,” Chandwadkar added.

“REE-Nb-Mo are critical inputs for the clean energy transition, advanced manufacturing and defence applications. 

“With rising geopolitical tensions and increasing global demand, particularly for permanent magnets and superalloys, these commodities are expected to see sustained pricing support, especially as Western nations seek to diversify supply chains away from China.”

The research firm adds that key near-term catalysts for ARN include positive drilling results, metallurgical testwork updates, and potential strategic partnerships.

This article was developed in collaboration with Aldoro Resources, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.