NeoTerra Group (LSE:TERA) has reported positive initial metallurgical results from its Monte Muambe gallium programme in Mozambique, providing early indications of a potential processing route for recovering gallium from the project.
Ore-sorting trials using X-ray transmission technology successfully identified gallium-bearing feldspar, demonstrating the potential to pre-concentrate mineralised material before further processing. Separate hydrometallurgical testing conducted by SGS achieved approximately 85% gallium extraction using an acid leaching process.
The leaching tests also demonstrated good selectivity against silica, an important consideration in developing an efficient processing method. Together, the results provide NeoTerra with an initial technical foundation for further optimisation of a potential gallium recovery flowsheet.
Further Metallurgical Testing Planned
NeoTerra will now expand its ore-sorting programme using X-ray transmission, short-wave infrared and potentially X-ray fluorescence sensor technologies. The objective is to determine the most effective approach for separating and concentrating gallium-bearing material.
Additional hydrometallurgical trials are also planned to refine leaching conditions and evaluate alternative recovery options. This work will be used to develop and optimise a complete processing flowsheet for the Monte Muambe gallium mineralisation.
Establishing a reliable recovery process represents an important step before the company commits to a larger resource expansion programme.
NeoTerra Targets Major Expansion of Gallium Resource
Once NeoTerra has sufficient confidence in the proposed recovery process, the company intends to undertake further drilling at Monte Muambe.
The planned campaign will target an expansion of the project’s existing gallium resource from 11.73 million tonnes to at least 50 million tonnes. Achieving that objective would significantly increase the potential scale of the gallium opportunity and could strengthen Monte Muambe’s strategic position within the critical minerals sector.
Development work on the project’s rare earth and fluorspar potential is continuing alongside the gallium programme, giving NeoTerra exposure to several strategically important commodities within the same mining licence.
Financial Position Remains a Significant Risk
Despite the encouraging technical progress at Monte Muambe, NeoTerra’s wider outlook remains constrained by weak financial fundamentals. The company currently generates no revenue, remains loss-making and continues to consume cash as it funds exploration and development activities.
Leverage also increased significantly during 2025, adding to the financial risks associated with advancing its portfolio. Technical indicators provide little support, with the shares trading below key moving averages and MACD remaining negative.
Traditional valuation measures are similarly limited while earnings remain negative, resulting in a negative price-to-earnings ratio, while the absence of a dividend provides no income-based valuation support. Continued technical progress and the company’s ability to fund future development work will therefore remain important factors for investors.
More About NeoTerra Group
NeoTerra Group is a London Main Market-listed exploration and development company focused on critical raw materials projects across Africa. Its strategy combines opportunities for near-term commercialisation with the development of larger-scale mineral assets.
The company’s flagship Monte Muambe Project in northwest Mozambique contains rare earths, fluorspar and gallium and is covered by a 25-year mining licence. Development of the rare earth component is also supported by a U.S. government grant aimed at advancing the project towards the prefeasibility stage.
NeoTerra additionally owns the Sesana Copper-Silver Project in Botswana, situated near MMG’s Khoemacau Zone 5 mine. Its portfolio provides exposure to commodities used across clean energy, advanced technology, defence and industrial applications, while management continues to assess additional projects that fit the group’s development strategy.
Leave a Reply