Arafura Resources Limited (ARU)

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General Information
Company Name: Arafura Resources Limited
Stock Code: ARU
GICS Sub-Industry: Diversified Metals & Mining
Market Cap ($M): 25
Equiv. Shares (M): 441

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.057 $ 0.050 $ 0.057 $ 0.050 $ 0.053 537,347 $ 0.004  7.547 %

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 (%)
2014  A -6.9 -1.6 -- 0.0 0.0 0.0 --
2013  A -11.8 -2.8 -- 0.0 0.0 0.0 --
2012  A -8.7 -2.3 -- 0.0 0.0 0.0 --
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
Arafura Resources (ARU) $23 M -- -- -- -- -- -- 0.00 -- --
BHP Billiton (BHP) $107,784 M 0.1223 -0.3099 0.1035 12.5505 18.1867 16.4817 3.83 4.76 4.83
Iluka Resources (ILU) $3,224 M -0.5337 1.1783 0.8215 53.8462 24.7191 13.5707 2.47 3.90 3.52
Rio Tinto (RIO) $27,758 M 2.4411 -0.8102 -0.0528 2.4108 12.7032 13.4119 4.12 4.58 4.82
Sims Metal Management (SGM) $2,528 M 3.0215 0.8072 0.3145 36.6904 20.3025 15.4452 0.81 2.61 3.07

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ARU -- -- 0.19 -- --
Market 0.92 16.5 1.31 2.31 1.63
Sector 0.64 13.1 0.70 1.96 2.50

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

Name Position
Gavin John Lockyer CFO & Company Secretary
Peter Sherrington Chief Financial Officer,Company Secretary
Brian Flower General manager of Northern territory and Sustainability
Neil Graham General manager of operations and Technology
Richard Brescianini General manager of Strategic Development and exploration

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

Calendar of Events
Date Event
29 January 2016 Report (Quarterly)
29 October 2015 Report (Quarterly)
16 September 2015 Report (Annual)
29 July 2015 Report (Quarterly)
29 April 2015 Report (Quarterly)
© 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


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