Does MM like Arafura Rare Earths (ARU) for growth?
Hi Team, Arafura is now trading for about half what I paid. Would you recommend buying more for growth?
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Answer
Hi Sue,
A reminder that we provide general advice only so do not take into consideration personal circumstances.
Rare earths business ARU still has a market cap in excess of $500mn even after falling over -65% from its February high. While its a stock we’ve looked at over the years, its not really a stock we follow closely. It’s Nolan’s Project, which aims to satisfy a significant portion of the world’s neodymium and praseodymium demand in the future, is interesting but risky.
- From a technical perspective, there is significant support ~20c but no obvious catalyst in our opinion to start accumulating.
