MARCH 2025 QUARTERLY REPORT INVESTOR CALL

[John]

https://wcsecure.weblink.com.au/pdf/ARU/02939170.pdf

So this webinar is going to be very interesting.

Timeline to FID - If there is a material change to the timeline to FID, then they will probably mention it here (i know the continous disclosure rules, but this quarterly forces them to re-confirm the timelines).

Aust Govt Buying/Stockpiling Minerals - They will probably just say they are in discussions...and waiting for outcome of the election.

Anyone got anything else they want to know from the ARU management?


Register for the webinar here:
https://s1.c-conf.com/diamondpass/10046979-lj8u7y.html

 

[patarnoster]

I was having a think about this, this would assume that next week there will be no PS announcements, and then the week after probably not either, which means all is to happen after elections... a lot of things out of our control.

 

[John]

I was having a think about this, this would assume that next week there will be no PS announcements, and then the week after probably not either, which means all is to happen after elections... a lot of things out of our control.

Yeah the new Govt Buying critical minerals is interesting. Because they could not commit till after the election. And even then, these things take time. Contracts, negotiations etc etc.

But the way I view it. This is ARU’s backstop. So the other off takers must commit now. Or Aust govt will buy.

 

[patarnoster]

Im interested in why the Quarterly is taking so long... It should be super simple. Also the election could be an interesting catalyst.

 

[John]

Im interested in why the Quarterly is taking so long... It should be super simple. Also the election could be an interesting catalyst.

Yeah...I think the election has held up some discussions......so i'm not expecting much.

But the body langauge will be what I will be looking at.

 

[John]

Arafura (March 2025 Quarterly)

My key takeaways:

• FID delay is annoying. But if ARU can secure a JV or another strategic cornerstone investor, this will mean way less dilution and obviously better for current shareholders.
• Why the Q1 2026 date for new FID (to be confirmed this quarter):
  • So if ARU were nowhere near FID, they would have to do a capital raise now. So this means they are very close (and ARU CEO said this multiple times in the call)…but the JV has come out of nowhere….and they have to consider it.
  • They must have pretty good idea that the JV is a strong possibility. Ie it can’t just be a thought bubble. There must be substance behind it.
  • They will have worked out all the details in the timeline for a JV to be secure (DD, contract signing etc.)….and come up with that date.
• Who is likely to be in the JV?
  • Well originally, I thought just the Australian Govt. And they have likely come to the conclusion, we are putting in all this debt, equity, and buying off take (maybe)….then why not just JV and have more control.
  • BUT – IMHO….ARU CEO has a small ‘tell’ whilst answering the last question regarding the USA funding. Again, IMHO, the USA Govt has walked in and said, you are the most progressed NdPr mine in the world…lets JV. That also fits with the Trump review of the RE sector in USA (6 months)…and they will be working in the background with ARU. And don’t forget, USA Govt can move quick if it needs to under national security laws.
• Also don’t forget….the longer we go on…better the macro/tailwinds. It should increase off take prices and increase equity raise price or terms under the JV.

So at first I was pretty disappointed with the Quarterly….but now I think this is actually a great outcome. And it also says…FID is a certainty. It is just a matter of locking up the original plan….or the new JV plan.



Thought I would put some high-level pros and cons below from the quarterly:

Pros	Reason
JV structure under evaluation	This would reduce dilution significantly by bringing a partner with cash and/or strategic capabilities.
Runway extended to Q1 2026	Reduces immediate need for dilutive capital raising under distressed conditions. Gives time to negotiate better funding terms.
$200m cornerstone equity secured (NRFC)	Reduces funding risk and signals strong Australian government support, which can help attract additional investors.
Debt package (~US$1.055b) largely locked in	Secures major project financing under favourable, long-tenor conditions; lowers future cost of debt or uncertainty.
66% of offtake target secured	Real binding contracts (Hyundai, Siemens, Traxys) show market validation and future revenue security.
Strong macro tailwinds (geopolitics, tariffs)	Global policy shifts (US/China tariff war, EU Critical Raw Materials Act) favor ex-China projects like Nolans. Supports future demand and pricing.
Process optimization continuing	Continued efforts to lower capex, improve efficiency could enhance project economics and NPV, benefiting shareholders.

Cons	Reason
FID delayed beyond H1 2025	Increases project uncertainty; delays revenue generation, extends risk exposure window.
Capital burn still ongoing (~$2.5m/month)	If they don’t get FID by Q2026…cap raise and it will be a blood bath. So the stakes are high.
Construction camp contract terminated	This is annoying. Waste of cash, but in the scheme of things not material (although it would have funded the runway a little more).
Project execution timeline stretched to 41 months post-FID	Longer path to cashflows, lower near-term valuation, and higher exposure to cost inflation risk over time. But also means could achieve higher off take prices.
Loss of $15m Modern Manufacturing Grant	Means nothing in the scheme of things. But could also mean that Govt has said, hey…forget this grant…we are going to JV with you.
Market remains cautious	Economic uncertainty and "risk-off" sentiment in capital markets might delay strategic funding outcomes further.

Also…here is What a JV means for ARU?

Aspect​	Project-Level JV​	Corporate-Level Equity (POSCO-style)​
Where the money goes	Directly into the project entity (e.g., Nolans Project Pty Ltd)	Into the listed parent company (e.g., Arafura Rare Earths Ltd - ASX:ARU)
What the investor owns	A fixed % of the project’s economics, risks and cash flows	A % of the entire company, including all assets, liabilities, and optionality
Control rights	Joint control over project-level decisions: capex, offtake, operations	Usually no direct control, unless investor gets a board seat or large %
Dilution impact	Minimizes dilution for existing shareholders — Arafura only funds its share	Dilutes existing shareholders unless equity is matched by all
Return focus	Investor gets ROI only from the project	Investor shares in all upside/downside of the company, including other assets or markets
Exit complexity	JV unwind or sell-down can be contractually defined	Investor exits by selling shares on the market or via block sales
Regulatory hurdles	JV may require FIRB or DSR (defence strategic review) if sensitive assets involved	Generally simpler, especially for small stakes under 10–20%
Flexibility for Arafura	Potential for greater optionality post-FID (e.g. selling more % of project)	Less flexibility — once shares are issued, they're out

 

[John]

Here is the Transcript:


Full transcript - Arafura Resources Ltd (ARU) Q3 2025:

Conference Moderator: A question box and click submit. I would now like to hand the conference over to mister Darryl Kadubo, managing director and CEO.

Please go ahead.

Daryl Kosubo, Managing Director and CEO, Arafura: Thanks, Harmony, and good morning, everyone. Thank you for making the time to join us today for our quarterly update. For those that are new to these calls, my name is Daryl Kosubo, the managing director of Arapahararers. And, again, today with me is Peter Sherrington, our CFO. A lot has happened since our last quarterly update, both from an external market perspective and in terms of activities to secure the best possible pathway to fit that rewards existing shareholders and opens up the best long term growth options for our company.

Between Peter and I, we will make some comments on the external market, how we are progressing towards securing the equity ahead of FIT, and the Traxxas offtake agreement recently announced before opening to to your questions. So let me start by summarizing how we see the external market. We’ve seen escalating trade tensions between The US and the rest of the globe, but in particular China. On April, the US imposed China specific tariffs of 36% on the imports of rare earth magnets. China subsequently announced plans to restrict exports of high performance magnets and rare earth products on national security grounds with no specific country being targeted.

This has created significant supply uncertainty for nearly 90% of the world’s high performance permanent magnets required for everything from everyday electronics to electric vehicles, wind turbines, robotics, and military equipment. We are already hearing a supply disruptions for ex China manufacturers such as Tesla, noting that their robot manufacturing is being affected. In response to this, The US President signed an order directing the commerce secretary to begin to begin a national security review, noting that The US dependency on mineral imports raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience. Within one hundred and eighty days, the commerce secretary is required to report his findings back to the president, including whether to impose further tariffs. It should be noted that the European Union has already stated some time ago that they will introduce trade restrictions through their critical raw materials act where no more than 65% of their needs can come from a single country.

In conjunction with these developments, our federal government has announced plans to secure strategic reserves of critical minerals, including rare earths, which presents a potential mechanism that can be used to break China’s monopoly overpricing. It was in anticipation of circumstances like this that Arafura has held tightly to our auto oxide railroad strategy so that we can offer a meaningful alternative to China’s railroad supply chain. If you look across the globe, we are uniquely positioned as a truly construction ready project that can bypass China’s supply chain. Given that we have secured the debt required, our only remaining step ahead of moving into construction is raising the required equity. I believe that our timing could not be better.

With these developments, we should expect that there will be a bifurcation of rare earth pricing, creating the market opportunity for a seaborne based pricing system. The domestic rare earth prices in China should no longer be a functional representative price for a non China magnet value chain. Importantly, Argus, a well regarded independent forecaster, believes that a long term incentive pricing of US hundred $63 a kilogram is necessary to create a rest of world NDPR supply chain that isn’t dependent on China. Now let me make a couple of comments on on securing the required equity before handing over to Peter to talk through our recent TRACSAS offtake agreement, and then we’ll open up to questions. As stated previously, we have been targeting 50 to 60% of our equity to come from cornerstone investors before raising the remainder from institutions and the broader market, including current shareholders.

This target of 50 to 60% is dependent on market conditions, which have been volatile, particularly given the recent uncertainty of the impact to the global economy of a potential trade war. Consequently, we have been pursuing the upper end of this target range. Earlier this quarter, we announced securing $200,000,000 from the National Construction Fund as part of our cornerstone investor funding. Following significant engagement and progress over the last quarter, we are confident in achieving our cornerstone investor equity target, and we are now in a position to be able to progress with multiple investor pathways to a fully funded solution. This is important.

Having multiple pathways not only firms up securing the required funding, but also so that we can attain the best outcome for our shareholders and the long term objectives of the company. Specifically, Arafura is assessing a potential joint venture structure, which could significantly reduce the equity required to fund Arafura’s remaining project interests. Given the need to evaluate the merits of multiple pathways as well as some potential cornerstone investors requiring additional time to progress through their internal processes and due diligence. Fit for Knowledge will extend beyond the previously advised window of the first half of this calendar year. We will update the market as material equity funding milestones are achieved in advance of announcing FID later this calendar year.

We expect that as we progress the different funding solutions during this quarter, we will be able to provide more definitive guidance on FEED timing. I do wanna point out that we will only progress a funding solution that requires requires more time if it presents a better outcome for our shareholders and the long term objectives of the company. Given this and the advanced status of our engineering, we have conducted an operational review. This has led to a reduction of project and engineering effort that will see our financial runway push out to the first quarter of next calendar year twenty twenty six. This decision does, however, mean that we will need to ramp back up the project and engineering capability post bid, placing up to an additional four months to the project schedule.

We will use this four month ramp up period as an opportunity to retest market prices and retender where appropriate to ensure that the best possible capital outcomes for project are being achieved. I will now hand over to Peter to talk through the strategic importance of the Traxxas offtake. Thank you, Peter.

Peter Sherrington, CFO, Arafura: Thanks, Daryl. During the quarter, we announced and concluded a binding offtake agreement with Traxxas Europe for a base amount of 100 tonnes per annum of NDPR. The offtake agreement has a a five year period. And at Arifura’s option, we can nominate up to a further 200 tonnes per annum of NDPR to be placed into the market with with Traxxas. For those who don’t know, Traxxas is a global physical commodities trader, and it it trades battery materials, industrial minerals, and has existing business in the rare earths sector and and with other metals as well.

We we know that Arafura has been prioritizing offtake partners who bring strategic support to Knowles, and this is, in most instances, a link to equity investment. We know that the Traxas in offtake doesn’t bring equity, did it but it does provide us with some volume flexibility, which we felt was quite strategic. We, in effect, have a 100 tonnes per annum amount, but an optional amount of 200 tonnes per annum. The the key here is that can assist us with managing variability in production volumes and delivery schedules that arise over the life of the the initial off take agreements. We we also saw some significant value in building a strategic relationship with a a trading company who has a deep understanding of the rare earths market.

And from from that perspective, Traxxas was a good fit. So we we whilst the volume was small, it doesn’t have a link to equity. It’s it’s fairly strategic from a a long term perspective in building that relationship. And it’s also critical to us in that it provides us some optionality around a volume from 100 to 300 tons to placed with that off taker. And we were sort of very keen to get this arrangement locked in.

And just Frank Richards, our our sales and marketing manager, did a good job in structuring this off take and worked well with Traxx in order to complete the arrangement.

Daryl Kosubo, Managing Director and CEO, Arafura: So, Harmony, we might hand over to you for any questions coming through.

Conference Moderator: Thank you. If you do wish to ask a question, please press 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press 2. And if you’re on a speakerphone, please pick up the handset to ask your question. We’ll pause a moment for any phone questions to register.

And if you would like to ask a question via the webcast, please enter it into the Ask a Question box and click Submit. Seems there are no phone questions at this time. I’ll hand back to your speakers to address your webcast questions.


...continued next message.....

 

[John]

…Continued Here.


Question Reader: Thanks, Hayley. The first question comes from Brett Smith of B and L Smith Superfund and reads, what level of assurance or confidence can you give shareholders that FID will happen before the end of the calendar year?

Daryl Kosubo, Managing Director and CEO, Arafura: Yeah. So let me take that one, Brett. So that’s probably the million dollar question. Right? So so let me share with you what we’re doing around that.

Right? And you can you can see this in the introductory, comments. So there’s a there’s a few parts to it. So so firstly, we’ve engaged with multiple cornerstone investors more than what we need to secure, the equity that that’s required, and that gives us optionality. That gives us multiple pathways to get there.

And with that, that gives us confidence to to secure FID. And, and also by having different options, it gives us options to choose what is in the best interest of our shareholders in a long term, company. We’re confident of achieving fit for that for that very, very reason. If you look at, some of the geopolitical events, that has raised awareness around the importance of rare earths to the manufacture of permanent magnets and why you need permanent magnets. I know everyone on this call has been aware of that, but I think that awareness across the globe hasn’t been there.

But that awareness is increasing rapidly, and that is very helpful for us. The other thing that we’ve gotta take into account, though, is that many investors are, I’m going to say, somewhat sitting on their hands waiting to see what happens with this potential trade war. So what we so the way we’re playing this is we’re engaging with that cornerstone investors more than what we need. We’re using the opportunity of this increased awareness of the importance of to engage with other parties so they’re ready to come in so that as the market settles down, we’re ready to move. Long story short, we’re confident of achieving FID because of that engagement.

And as we achieve milestones, we will share that with the market so that you can see the progress that we’re making.

Question Reader: Thanks, Daryl. The second question also comes from Brett and reads, if the current government is returned this weekend, does their promise of a strategic critical mineral stockpile present an opportunity for Arafura and additional offtake?

Daryl Kosubo, Managing Director and CEO, Arafura: Yeah. It does. It does, Brett. So so I would make a couple of observations. So firstly, the strategic reserve is helpful in getting up a rare earth sector in Australia, including Nolan’s.

And I think Nolan’s has a, you know, first cattle of the raid, has a significant role to play in that. If you look at the number one reason we don’t have a non China supply of rare earths, it’s because of China’s control over the pricing. With the last twelve months, they’ve either been making marginal profits or have been losing money. So establishing a strategic reserve and offtakes, I think presents the opportunity to create a different pricing mechanism, which would obviously benefit benefit us. I think the other reason for a strategic reserve, though, is it gives the Australian government additional clout at a time where trade patterns are being are being rewritten.

But I also note that the Australian government has said that they would go through an extensive consultation process to make sure that this strategic reserve is used in, if you like, in the best long term interest of Australian Derrari sector. So there’s a lot to still be worked through there, but I think it’s a very positive development and is very timely for us.

Question Reader: The next question comes from James Lowry and reads, how does AIU propose to mitigate construction costs with transport infrastructure to get Nolan’s product to Darwin Port?

Daryl Kosubo, Managing Director and CEO, Arafura: Yeah. So a good good question. So firstly, our engineering is is quite extensive. And why that’s important is because it locks down scope. So if you lock down scope, you have less surprises as you progress the the project.

That is a key driver of of CapEx. The other driver of CapEx, of course, is the cost of that of that scope. And, you know, we have developed commercial strategies and developing commercial strategies to make sure that we get the best competitive pricing. You’ll have noted that earlier I mentioned that, we will need four months to ramp back up our project team post bid before moving into construction proper. And we’re going to use that time to retest some of, some of our pricing where we know that there is more capacity in the market and has a bit more competition than there was earlier.

But just to answer your question, I mean, there’s a couple of key key drivers to manage your CapEx. One is locking down the scope through advanced engineering, which we’ve done. And then secondly, having sourcing strategies that get the best potential pricing for that for that scope, which is what we’re doing.

Question Reader: The next question comes from Ronald Lomax and reads, Linus has been in production for many years but has never been able to pay a dividend. How long does Arafura expect to be until they be profitable and pay a dividend?

Daryl Kosubo, Managing Director and CEO, Arafura: So what so we can’t talk to exactly what’s going to happen in the future. But what what we can talk to is what we expect to happen and how we can help that happen. So the number one issue that the rare earth sector, including Linus, has been having to deal with is China’s control of pricing. That control will come to an end or be minimized when there is a when a number of things can happen. One, when a structural supply deficit happens, the pricing will naturally increase.

And we’ve seen that in the past when there’s been, short term supply disruptions. We’ve seen the pricing double to to triple. If that had have occurred on a long term, Linus would have been paying dividends, I am sure. So if you look at the forecast of demand doubling over the next ten years, and China’s ability to meet that demand, we believe and other forecasts believe there will be a structural supply deficit, and that will create a very different pricing mechanism. So that’s one trigger that will create a different pricing mechanism.

The second thing that will create a different pricing mechanism is and we’re seeing this playing out today, right, is when trade restrictions are being applied, whether that’s through restrictions or tariffs, and that creates a non China pricing index. And this is where the Australian strategic reserve can play a very important role in creating a seaborne, traded only NDPR index. What that means is China’s domestic production and, consumption of rare earth magnets is taken out of the equation, and therefore, you have a truly, functioning NDPR index that reflects true supply and demand. Argus believed that in that sort of scenario, we would see pricing, you know, close to triple long term pricing close to triple of what we’re seeing today. The third trigger of a different pricing environment is I’m and I’m gonna use EV buyers as an example here.

Most electric vehicle buyers wanna be a responsible part of the energy transition. A lot of the rare earth magnet that come out of China, it has been getting their feedstock from places like Myanmar, which have poor environmental standards, but poor poor human rights standards as well. As that becomes, you know, as awareness of that grows, I’d like to think that EV buyers will be more selective and demand that the supply of the materials that go into making electric vehicles is coming from responsible sources. So I’ve just talked through three triggers that will create a very different pricing environment that will then enable us to grow, pay dividends in the future, etcetera, etcetera. It only takes one of those three to trigger the sort of pricing environment, and we’re or already seeing the second trigger, which is trade restrictions related taking place.

So that’s why we’re confident that we will be a very profitable organization that’s able to grow and ultimately pay dividends.

Question Reader: The next question comes from Lee Birch of Birch Corp and reads, could you please confirm whether the potential joint venture involves a single party or multiple parties? Furthermore, would such a partnership reduce the risk of further dilution for existing shareholders?

Daryl Kosubo, Managing Director and CEO, Arafura: So let so I I so we’ll be able to share more when we’re at a position to share more. But one of the benefits, obviously, with the joint venture is that it it it significantly reduces dilution. This quarter, we will be assessing our different options as they progressed, and they do need to be progressed before we get to a point where we can assess what’s in the best interest of our our shareholders. But one of the pluses with joint venture structure is that it reduces dilution.


Continued next…..

 

[John]

…continued here


Question Reader: The The next question comes from Bernard Ho and reads, how is AIU going with securing remaining binding offtake agreements? Is GE still in the pipeline?

Daryl Kosubo, Managing Director and CEO, Arafura: Yeah. Did you would you like to talk to that one, Peter?

Peter Sherrington, CFO, Arafura: Yeah. No problems. So in terms of securing the remaining offtake, the issue is not so much around the the requirement for the offtake. And I think some of the events that we’ve seen over the last couple of months since The US tariff announcements have probably reinforced that view that there is a need for a a non China or or a supply diversification. So I I think that the challenge for us is that we are trying to link the the the remaining offtake to strategic equity.

And we’re going to hold pretty pretty hard on that because we believe that, you know, the the NDPR offtake is strategic, and we’re going to link the equity to that. And we’ll we’ll we’ll stick to that. That’s probably the challenge that presents to us around securing offtake. The second part of the question, so we’re confident we will get that, but we are probably making our our our our work around getting the offtake more challenging by linking that equity to it. But it’s critical to the funding strategy which we’ve set out.

In terms of GE, we we have, you know, an ongoing relationship with GE. We we have seen that, you know, for example, GE has probably been not gaining market share in the offshore wind turbine business. That is making it difficult for them to make a commitment now to offtake, but we remain engaged with them on looking at ways that they may be able to commit to offtake as we start to close out the the final offtake group. So whilst whilst we don’t see them as one of the groups that we will be engaging with on on the equity opportunities, we still engage with them on on offtake.

Question Reader: There are a number of questions coming through regarding the alternative funding solutions or potential alternative funding solutions. So I’m just gonna lump them into to one question. Is there any more information you can share about the potential joint venture, and is the structure likely to be a fifty fifty joint venture?

Daryl Kosubo, Managing Director and CEO, Arafura: Yeah. So I can’t share anymore at this point. Right? So I’m I’m very mindful that there’s a need for additional information. And as soon as we can share it, we will share it.

The reason for flagging it, though, is because in the past, we’ve been talking about our equity strategy, and we haven’t specifically flagged the JV structure. But but that is a real alternative, But it’s too early for us to comment anymore at this stage, but we’re mindful that there is a strong strong desire to name more. And as soon as we can, we will share it.

Question Reader: The next question comes from Paul Stevens and reads, is Arafura seriously considering considering dysprosium and terbium geochemical processing capability?

Daryl Kosubo, Managing Director and CEO, Arafura: Good question. So so our current CapEx does not include that. We’ve got processing capability locked in through third party to to take the heavies to a oxide, but that is an option that we’ll always be open to and always be be looking at. Peter, do you wanna make any additional comments to that?

Peter Sherrington, CFO, Arafura: Yeah. So in in the short term, as as Daryl mentioned, we we we see, you know, some third party processes and they’re in the right jurisdictions who have the ability to process that material, and we’ve had engagement with those groups around separating the DY and TB because we do get inquiries around those particular products. And again, we see them as strategic. And whilst they are not significant in terms of revenue, we probably see them as being important in terms of locking in those final off takers and and equity providers. Yeah.

But as as Daryl mentioned, at present, our our CapEx does not include the scope of separating those products. But I think ultimately, it’s something we would look to try and work through ourselves. But I think we would be up for our first challenge of producing NDPR on spec and and rely on those tollers as an interim measure.

Question Reader: The next question comes from Roberto Versace of Versace Capital. Are there any concerns the change in the change of government and whether the current government funding may be withdrawn?

Daryl Kosubo, Managing Director and CEO, Arafura: Good question, Roberto. So, so we’re not concerned about a potential change in government. I mean, parties are supportive. The opposition have said that they would support funding that we’ve already received. I would note that the current government, has, you know, very welcome their support for the production tax, incentive.

That is that is helpful. And the current government has also raised the strategic reserve, and that that still has to be worked through on the assumption that they get get reelected. But if you if you take a step back, the Nolan’s project creates significant employment, significant downstream manufacturing, across Australia. And consequently, we enjoy the support of both both parties at both the Northern Territory and the federal level. So we’re not we’re not we’re not concerned.

Question Reader: The next question comes from Steven Darrington and reads, is the proposed strategic stockpile likely to be associated with further government equity joint venture opportunities?

Daryl Kosubo, Managing Director and CEO, Arafura: It’s too early to to say. The Australian government has really just outlined at a very high level what they intend to do with the strategic reserve and that they will enter into a consultation process, and and we look forward to participating in that.

Question Reader: The next question comes from Steven Allen and reads, you mentioned retendering where appropriate. Can you advise what the potential criteria for doing that would be?

Daryl Kosubo, Managing Director and CEO, Arafura: Yeah. Good question. So, Steven so it’s the the environment is a little bit different today than it was when we got the original tenders and we went for a process and selected our preferred tender. It’s we’ve seen, you know, our projects pulled back, some operations, you know, nickel, cease or going to going to cease, and that’s created some additional capacity in the market. And we’ve had some some tenders come back to us and said that if if there is an opportunity, they would like to retender.

So we will be selective in retendering where we think there is a benefit, mindful that we also don’t want to to delay our project schedule as well.

Question Reader: The next question comes from Andrew Ballard and reads, the Australian government supports stated interest free loans of up to a billion dollars. Is management engaging with the government on this opportunity?

Daryl Kosubo, Managing Director and CEO, Arafura: Peter, do you have any comments on that?

Peter Sherrington, CFO, Arafura: No. I’m aware of the facility that the shareholder’s referring to. Sorry, Daryl. I mean, obviously, we’re engaged with the government on on on on debt financing, but, you know, there there are some concessional interest rates on the facilities that we’ve secured. Some of them are referenced to commercial rates as well, but they’re all on on, you know, interest payable on amortization basis.

So, yeah, I’m I’m can’t provide any comment. We can look into it further and and provide some further comment if there’s something that we we’ve missed.

Daryl Kosubo, Managing Director and CEO, Arafura: It’d be great to if you didn’t mind sending through some details on that. If if there’s something we’re not aware of, kind of surprise would surprise me, but we would be very interested in pursuing that.

Question Reader: The next question comes from Nick Stott and reads, is phase two a part of any offtake JV and or equity negotiations?
Daryl Kosubo, Managing Director and CEO, Arafura: Good good question. So so so phase two is obviously a draw card because it presents a significant growth opportunity for any any party. However, given that we’re not talking about a decision for phase two, it’s excluded from any binding agreements, but it’s obviously a draw card for investors and potential JV partners.

 

[John]

Question Reader: The next question comes from Bernard Ho and reads, with the Trump presidency, do you see the US government potentially being part of any equity funding and or grant funding given their national security concerns?

Daryl Kosubo, Managing Director and CEO, Arafura: Bernard, so, good question. Right? So, again, I probably can’t say too much, but but what I can say is that as we look for a fully funded solution and the if you like, The US is growing attention to securing warehouse supply, we’re certainly exploring avenues around that. But there’s nothing that’s at a point that we can we can be definitive about at this point.

Question Reader: That’s all the written questions for now. So, Darryl, I’ll pass back to you for for closing comments.

Daryl Kosubo, Managing Director and CEO, Arafura: Okay. So, look, thank you everyone for again for your for your time, and for your your questions. Any follow-up questions, please send them send them through. Let me just make a couple of concluding comments. Particularly the last few months, the importance of developing a diversified reverse and permanent bag supply chain has been thrown into sharp focus by recent geopolitical events.

Arafiras Nolan’s project remains the only significant construction ready, auto oxide rare earth project in the world, offering the potential to bypass the dominant Chinese supply chain. We continue to make significant progress executing our equity funding strategy, which is the final piece to put in place before making a final investment decision. Following the initial cornerstone investment from the National Reconstruction Fund, we’re confident securing a cornerstone investment target with multiple pathways to get there. Our timing is fortuitous, but we have the right project at the right time. I’d like to thank you for your time for dialing in, and we look forward to providing you updates in the near future.

Thank you.

END.