Australian rare earths developer Arafura Rare Earths has reported a significant boost in its treasury, though it has again delayed the crucial Final Investment Decision (FID) for its flagship Nolans Project. The company’s quarterly report for the period ending 31 December 2025 reveals a cash balance of A$571 million, a substantial increase from A$90 million in the prior quarter.
Robust Balance Sheet Following Capital Raises
The surge in liquidity was primarily driven by a successful two-tranche placement, which raised A$475 million before costs. An additional A$6.4 million was contributed through a Share Purchase Plan (SPP). Further funds included A$9.8 million from Tranche 2 of a placement announced in August 2025, settled on 2 October 2025, and another A$9.8 million from an upsized SPP, settled on 10 October 2025.
Key Financing Milestones in Progress
The report highlighted several advanced financing discussions critical for the Nolans Project’s development:
- US Export-Import Bank (US EXIM): A non-binding letter of interest has been received for potential financial support of up to US$300 million. This funding could facilitate capacity expansion and the potential separation of heavy rare earths.
- Export Finance Australia (EFA): A conditional commitment has been secured for an equity investment of up to US$100 million under the US-Australia Critical Minerals Framework.
- German Raw Materials Fund (GRMF): The due diligence and review phase has concluded. A potential €50 million equity investment has been submitted for approval to the relevant German authorities. A possible second tranche of an additional €50 million is contingent on securing further offtake agreements to Germany or Europe.
Strategic Project Status and Contractor Appointment
In a significant strategic development, Arafura was named in October 2025 as one of only two priority projects under the bilateral US-Australia Critical Minerals Framework. This agreement is designed to accelerate the pipeline of critical mineral projects in both nations.
Separately, the company announced the selection of Hatch as the preferred Engineering, Procurement and Construction Management (EPCM) provider for the Nolans Project.
Management Faces Investor Scrutiny Over FID Timeline
During an investor briefing on 29 January 2026, shareholders questioned management on the repeated postponements of the FID. Managing Director Darryl Cuzzubbo stated that “90 percent of the funding is committed or subject to final approval,” according to ABC News.
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The company confirmed to ABC News that it is now targeting the FID “for the first half of the 2026 calendar year.” Previous targets had been early 2025 and later the first quarter of 2026. ABC News reported that the quarterly report showed the company “remained vague on exactly when it might reach its golden milestone of final investment.”
Commenting on the delays, NT Mining Minister Gerard Maley noted that “projects of this magnitude and strategic significance involve complex and time-consuming financing processes.”
NdPr Prices Surge Past Key Threshold
Arafura’s report also noted a positive shift in market conditions, with the price for Neodymium-Praseodymium (NdPr) oxide exceeding US$100 per kilogram on the Asian Metal Index as of 26 January 2026. Prices had risen from US$70 per kilogram after China announced expanded export controls in October 2025 and as trade tensions between the US and China escalated.
Key Financial and Project Data:
- Cash Position (31 December 2025): A$571 million
- Two-Tranche Placement Proceeds: A$475 million (before costs)
- SPP Proceeds: A$6.4 million (before costs)
- EFA Conditional Equity Commitment: Up to US$100 million
- US EXIM Letter of Interest: Up to US$300 million
- GRMF Potential Investment: €50 million (approval pending)
- Revised FID Target: First half of 2026
The company aims to finalize agreements with cornerstone investors by the end of March 2026. The Final Investment Decision remains the pivotal event eagerly awaited by both shareholders and the market.
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