Arafura Resources’ Nolans project in NT. Source: ABC
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  • Mineral exploration company Arafura Resources (ARU) has completed the feasibility study for its Nolans Project in the Northern Territory
  • The study has confirmed Nolan’s low operating costs of US$24.76 (around A$31.62) per kilogram of Neodymium-Praseodymium
  • Arafura is also expecting average earnings before interest, taxes, depreciation, and amortisation of $345 million per annum, based on a life of mine of 38 years
  • Arafura will now begin front end engineering and design activities next quarter and is targeting a final investment decision in August 2022
  • On the market this morning, Arafura is up 2.78 per cent, trading at 18.5 cents per share

Arafura Resources (ARU) has completed the feasibility study for its Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory.

The study has confirmed Nolan’s low operating costs of US$24.76 (around A$3.52) per kilogram of NdPr.

Strong financial metrics include a net present value of $1.4 billion and an internal rate of return of 18.1 per cent.

Arafura is also expecting average earnings before interest, taxes, depreciation, and amortisation of $345 million per annum, based on a life of mine of 38 years.

Managing Director Gavin Lockyer is pleased with the feasibility study.

“The feasibility study update confirms Nolans as a shovel-ready world-class NdPr rare earths project with ultra-low operating costs and the capacity to deliver robust financial returns over an initial mine life nearing 40 years and it will provide an important tool with which to progress discussions on financing and offtake towards a successful close,” he said.

“With the forecast demand growth for NdFeB magnets to support the manufacture of electric vehicles amongst other applications, the rising imperative for nations to shore up sustainable supply chains and the lack of alternative NdPr sources outside of China, Arafura is moving ahead with greater confidence than ever before,” he added.

Arafura will now begin front end engineering and design activities next quarter and is targeting a final investment decision in August 2022.

On the market this morning, Arafura is up 2.78 per cent, trading at 18.5 cents per share at 10:00 am AEST.

ARU by the numbers
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