Gina Rheinhart backed ARU is a relatively small $840mn stock behind the Nolans Project, a fully integrated “ore-to-oxide” rare earth operation focused on neodymium and praseodymium (NdPr). In the midst of the recent share price appreciation, ARU took the opportunity to raise a whopping $475mn at 28c for its Northern Territory project – it will also receive $100mn from the Australian government and is being considered to receive $300mn of financing from the US Export-Import Bank.
ARU is targeting first production in 2028–2029, with a final investment decision (FID) expected in early 2026 and construction to start later that year. The company is now well-funded, but there’s a lot of water to go under the bridge before the company starts to enjoy rare earth revenue, hence the speculative nature of the stock, but it’s an interesting portfolio “sleeper” or punt on another round of US-China bickering.
- We like ARU for a “specie” in the low 20c range, though given the big equity raise at 28c, we expect some resistance at that level.
MM is cautiously bullish towards ARU
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