Arafura Rare Earths (ARU) Q3 2025 earnings summary

Executive summary

• Secured AUD 200 million cornerstone investment from the National Reconstruction Fund, advancing equity funding toward FID for the Nolans Project.

• Progress continues toward FID, with equity funding as the last major step before construction can begin.

• Signed binding offtake agreement with Traxys Europe SA for up to 300 tonnes per annum of NdPr oxide, reaching 66% of binding offtake target.

• Recent geopolitical events, including US-China trade tensions and tariffs, have increased the strategic importance of non-China rare earth supply chains.

• Operational expenditure review completed, extending financial runway to Q1 2026.

Financial highlights

• AUD 200 million secured from the National Reconstruction Fund as cornerstone equity.

• Debt financing for the project is already secured; only equity remains to be raised before FID.

• Cash and cash equivalents at 31 March 2025 were AUD 37.2 million.

• Cash outflows from recurring activities reduced to approximately AUD 2.5 million per month.

• Estimated funding runway is 4.8 quarters based on current cash and outgoings.

Outlook and guidance

• FID timing has shifted beyond the first half of the calendar year, with updates to be provided as equity milestones are achieved.

• Management remains confident in achieving FID by year-end, citing strong engagement with multiple investors and favorable market conditions.

• Four-month ramp-up post-FID is planned before construction, extending the execution schedule from 37 to 41 months.

• Company expects further reduction in recurring cash outflows following operational expenditure review.