Arafura Resources Limited (ARU)



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General Information
Company Name: Arafura Resources Limited
Stock Code: ARU
Website: www.arafuraresources.com.au
GICS Sub-Industry: Diversified Metals & Mining
Market Cap ($M): 40
Equiv. Shares (M): 441

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.086 $ 0.090 $ 0.090 $ 0.086 $ 0.090 756,492 $ -0.004  -4.444 %

Company Overview

Business Description:
Arafura Resources NL (ARU) is a mineral exploration company focusing on rare earths. ARU’s flagship project is the Nolans Rare Earths Project, located in the Northern Territory.

Strategy Analysis:
Arafura has an exploration and development program to grow its position in rare earth projects that are consistent with additional growth beyond the Nolans Project. The Company will focus on the identification and development of rare earth projects and specialise in rare earths products and their markets. Arafura's primary focus is the development of its Nolans rare earths-phosphate-uranium project. The deposit has a resource to sustain a mine life of over 20 years and Arafura has developed a processing flowsheet that optimises the extraction of rare earths, phosphoric acid, and uranium. Arafura Resources reported negative cash flow of $15.09m for quarter ended 30 September 2011. Operating cash flow for the period was $(15.04m). Payments for exploration and evaluation were $(9.91m). Investing cash flow was $(53,000). Financing cash flow was nil. Cash in hand at the end of the quarter was $55.06m. During the quarter, the Company's activities remain fully focused on delivering the 100% owned Nolans Rare Earths Project. All Bankable Feasibility Study work streams are in progress.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  A -11.8 -2.8 -- 0.0 0.0 0.0 --
2012  A -8.7 -2.3 -- 0.0 0.0 0.0 --
2011  A -7.5 -2.2 -- 0.0 0.0 0.0 --
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Arafura Resources (ARU) $40 M -- -- -- -- -- -- 0.0000 -- --
BHP Billiton (BHP) $125,449 M -0.2435 0.1494 -0.0356 16.3952 14.2638 14.7899 0.0320 0.0326 0.0344
Iluka Resources (ILU) $3,693 M -0.6600 -0.9012 12.6370 28.7577 291.0891 21.3456 0.0102 0.0162 0.0193
Rio Tinto (RIO) $28,651 M 0.5848 -0.3363 0.1134 8.5628 12.9008 11.5869 0.0326 0.0341 0.0363
Sims Metal Management (SGM) $2,326 M -0.7514 4.5317 0.6944 135.8423 24.5572 14.4933 0.0000 0.0000 0.0201

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ARU -- -- 0.28 -- --
Market 1.01 16.6 1.26 2.17 1.67
Sector 0.85 12.6 0.68 1.81 5.17

Directors
Name Position Start Date
Mr Ian John Kowalick Non-Executive Chairman 19 December 2002
Ms Shasha Lu Non-Executive Director 21 July 2009
Mr Chris Tonkin Non-Executive Director 14 December 2010
Mr Terrence (Terry) Grose Non-Executive Director 21 January 2013

Management
Name Position
Gavin John Lockyer CFO & Company Secretary
Peter Sherrington Chief Financial Officer,Company Secretary
Neil Graham General Manager of Operations and Technology
John Ganser General Manager of Projects
Richard Brescianini General Manager of Strategic Development and Exploration

Substantial Shareholders
Holding Name
101,073,802 (22.91%) JP Morgan Nominees Australia Limited
109,699,833 (24.86%) ECE Nolans Inv Co PL

Calendar of Events
Date Event
29 July 2015 Report (Quarterly)
29 April 2015 Report (Quarterly)
29 January 2015 Report (Quarterly)
30 October 2014 Report (Quarterly)
22 September 2014 Report (Annual)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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