Arafura Rare Earths Ltd
XMUN:REB
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Arafura Rare Earths Ltd
Arafura Rare Earths Ltd. engages in the exploration and development of mineral resource properties. The company is headquartered in Perth, Western Australia. The company went IPO on 2003-11-05. The firm produces rare earth products from the Nolans Project. The Nolans Project consists of a mine, process plant, including beneficiation, extraction and separation plants, and related infrastructure to be constructed and located at the Nolans site, approximately 135 kilometers north of Alice Springs in Australia's Northern Territory. Its rare earth products are Neodymium-Praseodymium (NdPr) oxide, and Mixed middle-heavy rare earths (SEG/HRE) oxide. NdPr oxide is the Company's flagship product, which is used by magnet and magnet alloy customers. Rare earth products are also used in catalytic converters in automobiles, consumer electronics, energy efficiency lighting, main drive motors in electric vehicles (EV) and others. The company is also engaged in other projects such as Aileron-Reynolds, Northern Territory (NT) and Bonya JV, NT.
Arafura Rare Earths Ltd. engages in the exploration and development of mineral resource properties. The company is headquartered in Perth, Western Australia. The company went IPO on 2003-11-05. The firm produces rare earth products from the Nolans Project. The Nolans Project consists of a mine, process plant, including beneficiation, extraction and separation plants, and related infrastructure to be constructed and located at the Nolans site, approximately 135 kilometers north of Alice Springs in Australia's Northern Territory. Its rare earth products are Neodymium-Praseodymium (NdPr) oxide, and Mixed middle-heavy rare earths (SEG/HRE) oxide. NdPr oxide is the Company's flagship product, which is used by magnet and magnet alloy customers. Rare earth products are also used in catalytic converters in automobiles, consumer electronics, energy efficiency lighting, main drive motors in electric vehicles (EV) and others. The company is also engaged in other projects such as Aileron-Reynolds, Northern Territory (NT) and Bonya JV, NT.
Funding Progress: Arafura continues to make progress on securing cornerstone equity, with a clear line of sight to 60% of required equity through the German Raw Materials Fund and National Reconstruction Fund, but final investment decision (FID) timing is now expected toward the end of the year due to extended due diligence.
Rare Earth Supply Risk: Management highlighted ongoing global supply challenges, with recent EV production stoppages due to rare earth shortages and China's dominance in both light and heavy rare earth markets.
Market Dynamics: The U.S. has set a floor price for NdPr, and a new ex-China price index has been established, which is increasingly referenced in new offtake agreements, signaling a shift away from China-controlled pricing.
CapEx & Cash Runway: Project CapEx remains stable at $1.2 billion, with a cash burn rate of $2 million per month and $27 million in cash holdings expected to last well into 2026, providing a runway to secure funding without near-term capital raises.
JV & Equity Strategy: Multiple funding pathways, including JV discussions, are being pursued in parallel to maximize options and minimize dilution, with management emphasizing flexibility and competitive tension.
Australian Strategic Reserve: The government’s strategic reserve proposal is advancing and may help anchor a non-China rare earths price index, with Arafura actively involved in policy discussions.
