Arafura Rare Earths (ARU) Q2 2026 earnings summary

Executive summary

• Over 90% of project funding secured, with final cornerstone investor agreements and due diligence underway, targeting completion by end of the current quarter.

• Raised A$475 million via placement and A$6.4 million through SPP, increasing cash balance to A$571 million as of 31 December 2025.

• Identified as a priority project under the US-Australia Critical Minerals Framework, with conditional government equity and financing support.

• Appointed Hatch as EPCM provider, enhancing project execution readiness and de-risking delivery.

• The company is prioritizing securing favorable long-term offtake pricing terms, which will define value for the next decade.

Financial highlights

• Total project funding requirement is $1.6 billion, with $1.9 billion in total funding sources including undrawn completion support facilities.

• Cash reserves at quarter-end were A$571 million, reflecting significant capital inflows from equity raises.

• Only $134 million in equity remains outstanding, with multiple pathways being pursued to close this gap.

• Net cash used in operating activities for the quarter was A$5.0 million; investing activities used A$0.5 million.

• Financing activities provided A$487.4 million net cash inflow for the quarter.

Outlook and guidance

• Targeting finalization of funding and offtake agreements by end of March, enabling a shareholder vote and FID in Q2.

• FID timing is subject to negotiation outcomes and third-party dependencies, but management is confident in imminent completion.

• Less than 10% of required project funding remains outstanding, with cornerstone equity commitments expected in Q3 FY2026.

• Ongoing engagement with lenders to maintain valid credit approvals for project finance.

• Long-term value will be driven by securing the best possible offtake pricing terms.