A lot been going on with ARU:

1 - Two new non-exec directors appointed:

https://wcsecure.weblink.com.au/pdf/ARU/02791328.pdf

Both have lots of mining experience. As expected. I have not done the digging on them yet. But reading between the lines, these appointments are probably a CP to one of the soon to be announced equity participants.

2 - New exec appointments

https://wcsecure.weblink.com.au/pdf/ARU/02794074.pdf

Dr Stuart Macnaughton commenced as Chief Operating Officer, Shaan Beccarelli commenced as Head of Corporate Affairs and Investor Relations and Tanya Perry was promoted to Head of Sustainability and Environment.

From what I have been told, the COO Stuart is a great hire. He will be onsite with his family in Alice Springs. And he is very aligned with shareholders given his remuneration package. Apparently it is hard to attract talent and compete on salary, so ARU has offered lots of share options. This type of remuneration will be across alot of the staff. And options set up in a way so that the staff have to back themselves. This is great for us as shareholders. Dilution for these will not be massive.

The other takeaway from this annoucement, is that these hires would not be happening unless there is certainity they project is going ahead.

3 - Funding package

The previous annoucement of Aust Govt funding was amazing. And not well understood by the market and not refledted in the SP. I understand that the debt particpants are many. And this has added to the compeltity of getting all parties signed up. I have worked on these types of deals....and delays happen all the time. Sometimes because some spanish banker has gone on holidays...and they need his approval etc.

I have previously been advised that equity discussions have been underway for some time. But I understand that the equity side is getting 'close'. Usually equity would not be 'close' unless debt is locked away. Ie equity want to see the compete funding package before commiting. So this is great news and gives me great comfort that the project will proceed to construction. And having the Aust Govt cost over run facility de-risks the construction and commisioning of the project. Remember that Lynas had massive issues commisioning their project.

4 - NdPr pricing

This seems to be on the way up. But it is controlled by China. And as previously mentioned, the western world wants ex-china supply (for certainity and for better ESG outcomes). There is lots of talk about countiries banning cars/products that have china supplied raw materials with terrible social and environmental effects. This will just add to the tail winds for ARU.

5 - Gina and MP Materials

https://www.afr.com/companies/energy/gina-rinehart-emerges-as-big-investor-in-california-rare-earths-giant-20240409-p5figk

Gina owns 10% of ARU and now 5% of MP Materials (a USA rare earth company). She also reportably owns alot of shares of Lynas (but she must own less than 5% because it is not reported). Lots of talk about Lynas and MP doing a merger.

My takeaway point is that Gina is setting herself up to be a powerhouse in rare earths. And she knows that Govertnments around the world will provide backing/incentives to build ex-china supply. Again a massive tail wind for ARU.

6 - Summary

Nothing has changed for me in my assessment of ARU. It will go ahead. And I think once all the finance has been announced we will see the SP go up quite a bit.