ARU Price
Key Project Information 1,2
| MINING AND PRODUCTION | |
|---|---|
| Mine Life (years) | 38 |
| NdPr Oxide (tpa) | 4,440 |
| SEG/HRE Oxide (tpa) | 5733 |
| Phosphoric Acid (tpa 54% P2O5 MGA) | 144,393 |
| REALISED PRODUCT PRICING | Base (US$/KG) | Incentive (US$/kg) | |
|---|---|---|---|
| NdPr Oxide price – offtake period4 | 104 | 130 | |
| NdPr Oxide price – LOM | 133 | 163 | |
| FINANCIAL | BASE (US$m) | INCENTIVE (US$m) |
|---|---|---|
| Capital Cost | ||
| Pre-production Capital | 1,044 | 1,044 |
| Other Pre-Production Costs and Escalation | 90 | 90 |
| Contingency | 92 | 92 |
| Total | 1,226 | 1,226 |
| Revenue | ||
| Rare Earth Sales Revenue (per annum) | 610 | 747 |
| Phosphoric Acid Sales Revenue (per annum) | 79 | 79 |
| Operating Costs | ||
| Mining Costs (per annum) | (30) | (30) |
| Processing Costs (per annum) | (139) | (139) |
| General and Administration Costs (per annum) | (24) | (24) |
| Production Transport, Royalties and Selling Costs (per annum) | (35) | (40) |
| EBITDA (per annum) | 460 | 592 |
| Post Tax Free Cash Flows (LOM) | 10,229 | 13,480 |
| KPI ANALYSIS | BASE | INCENTIVE |
|---|---|---|
| Operating Cost US$/kg NdPr | 43.7 | 43.7 |
| Operating Cost US$/kg NdPr net of P2O5 credit | 28.6 | 28.6 |
| NPV8 after tax (US$m) | 1,729 | 2,549 |
| IRR after tax (%) | 17.2 | 20.6 |
1Refer to Appendix 2 for key Project Economic Assumptions in ASX Announcement dated 23 July 2024 ‘Arafura achieved major debt funding milestone presentation’.
2Numbers may not compute because of rounding. Revenue, costs and EBITDA are calculated as the arithmetic annual average following the anticipated two year ramp up period and excluding the final years of production from low grade stockpiles.
3In the 2022 Nolans Project Update (Refer to ASX Announcement dated 11 November 2022), SEG was reported as 474tpa (as that figure did not include the 99tpa Heavy Rare Earth (HRE) component of the line item). The Project Economics table above now includes the 99tpa HRE component in relation to SEG.
4Product prices during the offtake period refer to the first seven years of production when offtake agreements will include discounts and other contract mechanisms put in place to underpin project finance for up to approximately 80% of NdPr oxide production with averages calculated as the weighted average over the specified period.