Emerging as Australia’s Next NdPr Producer
Stock Code: ASX: ARU
Company Exposure: NdPr Rare Earths
Project Locations: Australia
Arafura Resources is an Australian mineral exploration and development company focusing on Neodymium and Praseodymium (NdPr) rare earths. It is headquartered in Perth, Western Australia and was listed on the Australian Stock Exchange (ARU) in 2003. The company’s flagship project is the Nolans NdPr Project, located in Australia’s Northern Territory.
Investment Highlights
• DFS completed February 2019 confirms Nolans as a world-class NdPr project
• Annual NdPr oxide production 4,357 tonnes
• Ultra-low cost producer US$25.94/kg NdPr
• Robust economics with average EBITDA A$377m p.a., NPV10 A$729m, IRR 17.43%
• Highly leveraged to NdPr (96% of rare earths revenue) – US$5/kg increases NPV by A$130m
• Long-life asset – 23-year mine life based on ore reserves only with potential to extend production
• Well positioned to feed forecast supply shortfall in NdPr for permanent magnets in clean energy applications
• Target project commissioning in 2022
• Globally strategic – 100% Australian-domiciled operation with strong government and community support
• All environmental approvals secured
• DFS includes fully costed permanent disposal and rehabilitation of tailings and process residues at site
• Able to provide customers with product traceability and waste management certainty
• Product offtake and financing engagement in full swing
