Arafura Rare Earths (ARU) investor relations material

Executive summary

• Net loss for the half-year ended 31 December 2025 was A$12.99 million, a significant improvement from A$18.85 million in the prior period, reflecting a refocus on closing out offtake and equity funding for the Nolans Project.

• Three binding offtake agreements now represent 66% of the binding offtake target, with further negotiations ongoing amid favorable geopolitical conditions.

• Major project funding milestones achieved, including over US$1 billion in debt facilities and significant equity placements, positioning the Nolans Project for construction commencement upon Final Investment Decision (FID).

• All major environmental and operational licenses for the Nolans Project remain current, supporting readiness for construction.

Financial highlights

• Net loss after tax for the half-year was A$12,987,868, down from A$18,851,865 year-over-year.

• Basic and diluted loss per share improved to (0.4) cents from (0.8) cents per share in the prior period.

• Cash and cash equivalents surged to A$571.3 million as of 31 December 2025, up from A$27.2 million at 30 June 2025, driven by successful capital raisings.

• Total equity increased to A$694.3 million from A$149.3 million at 30 June 2025.

• Net cash outflow from operating activities was A$9.4 million, a reduction from A$19.6 million in the prior period.

Outlook and guidance

• Focus remains on achieving FID in the second half of FY2026, with advanced design and operational readiness activities underway.

• Ongoing efforts to secure remaining offtake agreements and finalize equity investments, particularly targeting German and US markets.

• Pre-feasibility study for potential processing facility expansion planned post-FID.