Ann: Arafura launches A$20m placement and A$7m SPP, page-106

They need to raise the equity before finalising FID.

My view on the current situation.

So we have a Capital raise at 16 cents per share, totalling $27 million. This amount falls short of what’s needed (but we know this).

The secured debt funding deal sparked this CR, but raising just $27 million with a 15% discount. Such a small amount?

The company has stated it needs around US$800 million for the Nolans project. A substantial partner is essential to complete equity funding. How long will it take and at what price will they want in?

They wrote in the 4C released 2 days ago that they are working towards FID by end of 2024. However in the 4C released last year in October, they were aiming to start main construction Q1 2024. So their timelines aren’t exactly accurate.

Need to view this with a balanced approach. I raised in my previous posts why I think FID will be by end of year (urgency and all) however, they did say that this CR will give them enough cash to organise FID by mid 2025, so they are expecting a potential delay.

This dot point is my biggest concern for their justification regarding the CR. As if it does get extended, this will drop below 15c IMO.

• The Capital Raising is expected to support advancement of the company’s funding initiatives and to provide a sufficient cash runway through to mid 2025 to allow the company to focus on finalising its strategic equity funding and offtake initiatives required for FID

What then? Another CR?