Livewire: buy the dip?

https://www.livewiremarkets.com/wires/your-favourite-small-cap-is-down-50-year-to-date-is-it-time-to-buy-the-dip?

Some quotes from the interview:

Arafura’s FY23 highlights
-Signed binding offtake agreements with foundation customers Hyundai, Kia and Siemens
-Advancing negotiations with several other global Tier 1 businesses and OEMs
-Completed FEED and commenced detailed design on Nolans’ hydrometallurgical plant
-Commenced enabling works and early construction activities at Nolans in the second-half
-NdPr prices eased from early highs of US$140 to around US$60 per kilogram
-Financial highlights:Raised more than $180 million in FY23
-Net loss of $96.3 million
-Cash position of $128.8 million as at 30 June 2023

Are there any risks to this company and its sector that investors should be aware of Arafura:
The main risk is the chunky capital spend of $1.4 billion plus a $200 million contingency to bring the Nolans Project into production. So we’re talking about a $1.6 billion project. Let’s also remember that Arafura is a long way from the ocean, there are a lot of factors that pose a risk for this project, which is why it’s been a long time in the making.That said, Nolans is a quality project with a production profile of 4,400 tonnes per annum of NdPr oxide. That’s a size where it won’t saturate the market.

From 1-5, where 1 is cheap and 5 is expensive, how much value are you seeing on the ASX right now? Are you excited or are you cautious about the market in general?
Rating: 2The Australian market is presenting an interesting discount, which is why we have two. We like the large cap banks and resource companies but think some of the defensives are a bit overvalued.