Ann: Resource Capital Research Report, page-2

Good report. Highlights for me:

Project Valuation: Our after-tax valuation (based on a 10% discount rate, 100% equity basis and 30-year mine life) A$424M or A$0.78 per share. The base case assumes a long-term NdPr price of US$67/kg, which is similar to the current spot price. We consider this to be a conservative price forecast based on the demand outlook. Each US$10/kg increase in the NdPr price increases the assessed after-tax NPV by ~A$240M or ~A$0.44 per share.

ASX-Listed Peer Group Comparison: We have compared forecast operational and cost metrics for ARU and four other ASX-listed magnet metal development companies, as well as benchmarking against the current producer LYC. ARU is a stand-out in this emerging producer group in relation to having the lowest projected operating costs (US$ per kg NdPr oxide), long mine life, low sovereign-risk mining jurisdiction and low ratio of enterprise value to projected NdPr production.

Gold Company Analogy: We have taken our steady state production and earnings forecasts for ARU and re-stated them in terms of the equivalent that a gold mining company would need to achieve. This analysis shows that ARU’s forecast FY2023 revenue and profitability is equivalent to that of a gold company producing ~240kozpa with an all-in sustaining cost of just US$632/ounce.