Export Finance Australia - Update

John

John

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https://wcsecure.weblink.com.au/pdf/ARU/02977512.pdf

So it looks like EFA is going to put in some more equity.

Lots of people will say this is just a 'nothing announcement'.

But this is how Government's work. And it takes time. But given they have already put lots of time and committed money before to ARU, maybe this will not take so long.

I reckon what has happened is this:
- EFA gave the $200m in equity
- ARU has gone out to the market, and things are just tough out there. Locking down equity is hard given who we are competing against (China).
- Govt has committed to Stockpiles - But nothing locked in for ARU
- Govt has spoken about a Price Floor similar to USA/MP - but nothing locked in
- And now this further equity

Also given my discussion and view that the JV partner is MP/DoD.....the Aust Govt is weighing all that up...and will use it in trade negotiations with Trump.

So whilst it is my view that ARu will go ahead, probably with even more Govt funding (Aust and Germany)...it will take at least the 6 months to get the other outcomes (trade deals) that Aust Govt wants.

Aust Govt wants the following:
- Use rare earths in negotaitons with Trump
- Build a new sector in mining given iron ore has started to shrink
- Have as much of the value chain (ie processing to oxide) in Australia.

Any other thoughts?
 
Yes, watch out for LYC involvement. They missed out with the Government deals, and so they will demand in. LYC went from anti - government plan 6 months agao to all on board now. Ask why?

Also, they need to disclose. They are ASX listed, not a private company, and the government has been treating ARU as a private company with way too much secrecy and this has caused the devaluation of the private investor value.
 
Last edited:
Given that the due diligence has already been done for the previous capital infusion, this additional outlay shouldn’t take too long, hopefully.

I see the announcement as a prod to companies waving in their decision processes to either shit, or get off the potty.
John said:
https://wcsecure.weblink.com.au/pdf/ARU/02977512.pdf

So it looks like EFA is going to put in some more equity.

Lots of people will say this is just a 'nothing announcement'.

But this is how Government's work. And it takes time. But given they have already put lots of time and committed money before to ARU, maybe this will not take so long.

I reckon what has happened is this:
- EFA gave the $200m in equity
- ARU has gone out to the market, and things are just tough out there. Locking down equity is hard given who we are competing against (China).
- Govt has committed to Stockpiles - But nothing locked in for ARU
- Govt has spoken about a Price Floor similar to USA/MP - but nothing locked in
- And now this further equity

Also given my discussion and view that the JV partner is MP/DoD.....the Aust Govt is weighing all that up...and will use it in trade negotiations with Trump.

So whilst it is my view that ARu will go ahead, probably with even more Govt funding (Aust and Germany)...it will take at least the 6 months to get the other outcomes (trade deals) that Aust Govt wants.

Aust Govt wants the following:
- Use rare earths in negotaitons with Trump
- Build a new sector in mining given iron ore has started to shrink
- Have as much of the value chain (ie processing to oxide) in Australia.

Any other thoughts?
Click to expand...
 
WideMouthFrog said:
Yes, watch out for LYC involvement. They missed out with the Government deals, and so they will demand in. LYC went from anti - government plan 6 months agao to all on board now. Ask why?

Also, they need to disclose. They are ASX listed, not a private company, and the government has been treating ARU as a private company with way too much secrecy and this has caused the devaluation of the private investor value.
Click to expand...
This LYC link is actually very interesting. You are right. They have gone very quiet on criticising the Govt's plan.....hmmmm
 
Durro said:
Given that the due diligence has already been done for the previous capital infusion, this additional outlay shouldn’t take too long, hopefully.

I see the announcement as a prod to companies waving in their decision processes to either shit, or get off the potty.
Click to expand...

Yeah that makes sense too. Because the annoucement really didn't say much....and that is on purpose....
 
John said:
This LYC link is actually very interesting. You are right. They have gone very quiet on criticising the Govt's plan.....hmmmm
Click to expand...
At diggers, LYC discussed sharing resources with government involvement. To support industry. So, whether they meant locally, or across the border.

Hancock is shaping up to be the conduit. Government is the winner on the world stage, and retail holders do all the heavy lifting.
 
https://www.investing.com/news/stoc...-in-export-agency-funding-source-says-4184083

"MELBOURNE (Reuters) -Arafura Rare Earths has been offered $100 million in potential funding from Australia’s export finance agency, a source familiar with the matter said, helping it surpass a milestone in funding needs to develop its Nolans project.
Export Finance Australia has provided a non-binding letter of interest for funding support for the project, Arafura - which is backed by billionaire Gina Rinehart - said in an exchange filing on Tuesday.
The potential funding is part of a Western push to develop rare earths supply chains with international partners outside of top producer China. Australia’s resources minister last week said the government was considering price floors to support critical minerals projects, including for rare earths.
"We will now be advancing due diligence with both of these parties," Arafura’s CEO Darryl Cuzzubbo said.
The funding would mean that Arafura will be able to "materially close" a cornerstone equity target that is 60% of the $775 million total equity requirement, the source said.
The backing follows Prime Minister Anthony Albanese’s announcement last year that Australia would provide up to A$840 million ($547.85 million) for Nolans, the first combined rare earths mine and refinery in the Northern Territory.
The project has also entered an appraisal phase for potential equity investment from Germany’s Raw Materials Fund after being referred by the country’s Interministerial Committee last month.
Rinehart’s Hancock Prospecting is Arafura’s largest shareholder with an 8.57% stake, per LSEG data."

So this is a little more substantive...."has been offered $100 million in potential funding from Australia’s export finance agency, a source familiar with the matter said, helping it surpass a milestone in funding needs to develop its Nolans project"
 
John said:
https://www.investing.com/news/stoc...-in-export-agency-funding-source-says-4184083

"MELBOURNE (Reuters) -Arafura Rare Earths has been offered $100 million in potential funding from Australia’s export finance agency, a source familiar with the matter said, helping it surpass a milestone in funding needs to develop its Nolans project.
Export Finance Australia has provided a non-binding letter of interest for funding support for the project, Arafura - which is backed by billionaire Gina Rinehart - said in an exchange filing on Tuesday.
The potential funding is part of a Western push to develop rare earths supply chains with international partners outside of top producer China. Australia’s resources minister last week said the government was considering price floors to support critical minerals projects, including for rare earths.
"We will now be advancing due diligence with both of these parties," Arafura’s CEO Darryl Cuzzubbo said.
The funding would mean that Arafura will be able to "materially close" a cornerstone equity target that is 60% of the $775 million total equity requirement, the source said.
The backing follows Prime Minister Anthony Albanese’s announcement last year that Australia would provide up to A$840 million ($547.85 million) for Nolans, the first combined rare earths mine and refinery in the Northern Territory.
The project has also entered an appraisal phase for potential equity investment from Germany’s Raw Materials Fund after being referred by the country’s Interministerial Committee last month.
Rinehart’s Hancock Prospecting is Arafura’s largest shareholder with an 8.57% stake, per LSEG data."

So this is a little more substantive...."has been offered $100 million in potential funding from Australia’s export finance agency, a source familiar with the matter said, helping it surpass a milestone in funding needs to develop its Nolans project"
Click to expand...
Well fuck me sideways we’re close to close
 
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