Harena Rare Earths Receives Buy Rating as Broker Highlights Upside at Madagascar Asset

Harena Rare Earths (LSE:HREE) has initiated analyst coverage from broker SP Angel with a Buy rating and a target price of 9.4p, reflecting the firm’s positive outlook for the company’s flagship rare earth project in Madagascar. The broker’s note draws attention to the scale of the Ampasindava ionic clay deposit, which contains a JORC-compliant resource of roughly 699Mt grading 868ppm TREO and is viewed as a potentially scalable source of critical magnet rare earth oxides outside China.

According to SP Angel, the global rare earth market remains heavily reliant on Chinese supply, positioning Harena as a potential contributor to diversifying Western supply chains as demand rises across sectors such as electric vehicles, renewable energy, and advanced manufacturing. The broker values the Ampasindava project at an estimated post-tax NPV10 of around US$200m using base pricing assumptions, increasing to roughly US$510m at spot prices. It also points to possible financing support from the U.S. International Development Finance Corporation (DFC), alongside upcoming permitting decisions, technical studies, and potential offtake agreements through 2027, as catalysts that could help close what it sees as a significant valuation gap, with the shares trading near 0.1x P/NAV.

Despite these longer-term opportunities, Harena Rare Earths Plc continues to face substantial financial and operational hurdles. The company currently generates no revenue and exhibits weak market indicators, which weigh on its near-term outlook. While recent corporate developments and project progress suggest potential upside, the business still faces financial pressure and negative technical trends that remain key risks for investors.

More about Harena Rare Earths Plc

Harena Rare Earths Plc is an exploration and development company focused on rare earth elements, with its primary asset being the Ampasindava ionic clay rare earth project in Madagascar, where it holds a 100% interest. The deposit ranks among the largest ionic clay rare earth resources outside China and contains valuable magnet metals including neodymium, dysprosium, and praseodymium, which are essential for applications across the energy transition, defence technologies, and robotics industries.