Arafura Rare Earths (ARU) H2 2025 earnings summary

Executive summary

• Achieved major milestones in advancing the Nolans Project, including securing over US$1 billion in debt funding and a cornerstone A$200 million equity commitment from the National Reconstruction Fund Corporation (NRFC).

• Progressed to appraisal phase for up to €100 million in funding from the German Raw Materials Fund (GRMF) and received a conditional Letter of Interest from Export Finance Australia (EFA).

• 66% of initial nameplate capacity for NdPr oxide is now under binding offtake agreements, with a target of 80%.

• Focus remains on finalising equity funding and securing additional offtake to enable a Final Investment Decision (FID) for full-scale construction.

Financial highlights

• Net loss after tax for FY2025 was $19.2 million, a significant improvement from the $101 million loss in FY2024, mainly due to reduced operating expenditure and completion of early works construction.

• Cash and cash equivalents at year-end were $27.2 million, down from $42.2 million in the prior year.

• Total assets stood at $155.9 million, with equity of $149.3 million.

• No dividends were paid or recommended.

Outlook and guidance

• The primary focus for FY2026 is to complete the equity funding strategy and secure the remaining NdPr offtake agreements to fully fund the Nolans Project and facilitate FID.

• Anticipates further progress with GRMF and EFA, with FID expected around the end of the calendar year.