The following is a summary of the Arafura Rare Earths Ltd. (ARAFF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Arafura has secured USD533 million in funding during Q1 2024 and has engaged joint lead managers, UBS and Canaccord, for further equity raising activities.

• A substantial part of the additional necessary funding is planned to be secured through debt and strategic investors before launching a public equity raise.

• Although NdPr prices are low, the company is considering a significant equity share for overall funding.

• The November 2022 project CapEx update reflected a sub-6% increase, due to considerations like price pressures and advanced engineering.

Business Progress:

• Arafura aims to be a leading NdPr oxide producer globally, with its construction-ready Nolans project expected to support a mine life of 38 years, with significant potential for further expansion.

• A Scoping study has been initiated to explore expansion possibilities for a Phase 2.

• Infrastructure for the main project, including access roads and pipelines, is already in place and ready for construction upon securing funding.

• Offtake arrangements have progressed, with binding agreements for 2,000 tons of NdPr oxide in place, and further negotiations ongoing.

• The company is planning to complete its scoping study on a large NdPr production project and update economic parameters periodically.

• Arafura has strengthened its leadership team and board to better manage project execution and operational phases.

• The company plans to finalize debt and funding by the second half of the year.

More details: ARAFURA RARE EARTHS LTD IR

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