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Highlights

  • ARU has made notable progress by entering a gas supply LOI with Tamboran Resources and securing a binding offtake agreement with Traxys Europe SA
  • The company significantly reduced its net loss to AUD 18.85 million in 1HFY25 from AUD 66.87 million a year ago
    • Despite a one-year decline, ARU shares surged 56.52% year-to-date

Arafura Rare Earths Limited (ASX:ARU) is an Australian mineral exploration and development company that continues to cement its role in the rare earths sector through focused development of its Nolans Project in the Northern Territory.

In March 2025, ARU’s subsidiary executed a non-binding Letter of Intent (LOI) with Tamboran Resources Corporation. The LOI outlines plans to explore a potential gas supply arrangement from Tamboran’s Beetaloo Basin assets to power operations at the Nolans Project.

During the same month, Arafura inked a binding five-year offtake agreement with Traxys Europe SA. The deal allows ARU to supply between 100 and 300 tonnes per annum of NdPr oxide at its discretion. The agreement is contingent on project completion and commercial production, targeted by 31 December 2028.

These agreements mark critical steps toward ARU’s goal of securing offtake commitments for 80% of Nolans Project production, with only 34% remaining to be marketed.

Financial Performance

For the half-year ended 31 December 2025 (1HFY25), Arafura reported a net loss of AUD 18.85 million, a substantial improvement from the AUD 66.87 million loss reported in 1HFY24. The narrowed loss reflects the completion of early works at the Nolans Project and a strategic shift toward securing full project funding.

  • Other Income: AUD 0.71 million, down 44.5% year-on-year.
  • Net Cash Inflow from Financing Activities: Increased by 28.6% to AUD 23.08 million.
  • Cash at Period End: AUD 44.86 million, a 33.0% decrease from the previous year, indicating ongoing project investments.

Outlook

Looking ahead, Arafura is well-placed to benefit from evolving global trade dynamics, including U.S. tariffs on Chinese rare earths and possible Chinese export restrictions.

Continued Offtake Expansion: Progress with Traxys brings ARU closer to securing the majority of Nolans Project production.

Strategic Positioning: The Nolans Project is crucial for diversifying global rare earth supply chains amid geopolitical uncertainties.

Growth through Capacity Expansion: ARU’s Phase 2 Study outlines plans to expand processing capacity by 150% and potentially process third-party feedstocks. A pre-feasibility study is expected following the Final Investment Decision.

Share performance of ARU

ARU shares surged 5.88% to close at AUD 0.180 on 14 April 2025. Despite a one-year decline of 7.69%, the stock has posted a year-to-date gain of 56.52%. It touched its 52-week high of AUD 0.210 on 20 March 2025 and its 52-week low of AUD 0.105 on 19 December 2024.

Support and Resistance Summary

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 14 April 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.