Arafura Rare Earths (ARU) Q3 2026 earnings summary

Executive summary

• Progress toward Final Investment Decision (FID) remains on track for this quarter or H2 FY2026, with construction expected to start four months after FID is called.

• Secured binding equity agreements with Export Finance Australia and KfW (GRMF) for A$230 million, advancing funding for the Nolans Project.

• The company is over 90% funded, with multiple pathways to close the remaining equity gap and less than 10% of required funding outstanding.

• Partnership with Clean TeQ Water to enhance heavy rare earth separation and recovery technologies.

• Acquisition of a 208-bed accommodation camp to reduce costs and support construction readiness.

Financial highlights

• Binding agreements with cornerstone investors total approximately AUD 230 million (EUR 50 million from KfW and $100 million from Export Finance Australia).

• Total equity funding commitments for Nolans Project now at A$911 million, with less than 10% of required funding outstanding.

• Cash balance at March 31/A$561 million as of March 2026; total funds on hand or committed are about AUD 911 million.

• Raised A$481 million in Q2 FY2026 via placement and SPP, with Hancock Prospecting contributing A$125 million.

• Interest income for the quarter was AUD 3.5 million, with a weighted average investment rate over 4.5%.

Outlook and guidance

• FID is targeted for this quarter or H2 FY2026, contingent on completion of funding and offtake arrangements.

• Construction to commence four months after FID, with commissioning expected to take 12–24 months post-construction and first product sales anticipated around 2028–2029.

• CapEx estimate remains stable at $1.6 billion, with additional contingent facilities available up to $1.9 billion.

• High confidence in current CapEx estimates, with final numbers to be confirmed post-FID through competitive tendering.

• Project delivery and operational readiness activities advancing.