Ann: Arafura achieves major debt funding milestone presentation, page-35

I was hopeful factchecker until the quarterly report and presentation only based on possibility FID could be announced prior to equity and on completion of debt which is now all but complete (just long paperwork process to prepare for release and the debt will be last drawdown - the equity component will first be used) - time was reiterated again by management and by end of year mentioned again - so perhaps EOY it is - although much of equity component well advanced - it is a significant amount - in line with what we have consistently advised - a 50/50 or near debt/equity split - the retail component alone which I would presume will come last - well it is advised as such in the 4 stage equity process will take 2 months from offer to completion (EOY another ticket for shorts/instos to play) but that's fine it all takes time and reality is 2 years in total is some achievement from when the huge strategy shift was initiated.

The debt closure is exceptional particularly given the substantial current and future challenges in securing project financing. All the many parties have to be well satisfied with terms - loan guarantees were a key and as Darryl stated it was all facilitated by the Aus Gov substantial increased facility.
A couple of key highlights the market would receive well was the average of 12 year loan terms established (understanding the loans are of much favorable terms than commercial lenders - they will be the last drawdowns particularly the commercial facilities - a substantial buffer over the normal 5-7 years FMG past holders from 9-10 years ago would understand such importance).
Another highlight was the debt could be reduced by more equity when scaling to full production. Basically instead of using the Aus Gov 200million facility - if market conditions are favorable ie product pricing - project budget/time and delivery favorable - thus SP favorable it would be better to raise in way of placements the 200 million circa 50c-$1 than do add to debt stack - enabling more cash flow for other debt reduction and growth - stage 2. Or they could use the option and exercise the Aus Gov of 200 million (which is on favorable terms) and go after more equity in way of SPP to bring forward stage 2 implementation - much to ponder there in coming 3 years and quiet some expenditure on drilling - confirming resource at depth below current 400m just as Lynas did some approx 2 years ago at Mt Weld prior to moving ahead with significant expansion.

There is just so much in these announcements - debt closure - quarterly and presentation. The USD 35kg OPEX is remarkable - in lowest cost quartile due to increased acid pricing primarily. Another critical component to insto equity participation. Where is there any other advanced - shovel ready - mine to oxide RE project with near all finance locked in? Exceptional.

The margins are clearly there for debt providers and insto's to provide debt - invest - participate in equity. With 80% offtake and discounts attached to those providing equity - the 20% remaining for spot market at a time of ex China supply shortfalls is substantial given the West can not use China produced critical minerals in their EV/WIND/OTHER manufacturing due to relative government requirements - hence what Darryl continues to reiterate regarding paying 3-4 times as much for a current 50USD component of a car - wind is interesting and not referenced but the increased pricing there would be a significant burden but that's the price of a renewables shift - no different to oil cartels swings.

Anyway towards EOY it is for now and whilst all attention now shifts to equity component - company spending has been reigned in as advised however are we cashed enough - can we close equity and a great deal else happening - mobilizing contractors etc - without another SPP/CR? One can see clearly now why the previous lowball SPP had to happen opposed to many holders dissent at the time - nice if management complete the large 1 and 2 parts of equity in this quarter? Commence contractor engagements - increase camp capacity - order long term items - procure much - etc whilst parts 3-4 of equity are closed out EOY However we'll have to await equity closure and commence construction early 2025.