Ann: Successful production of Lanthanum Oxide , page-7

http://www.rcresearch.com.au/
Resource Capital Research (RCR)


Investment Comment: We consider that the prospects
of commercialising the Nolans Project have increased
significantly after the conversion of resources to
reserves and the recent cash injections meaning that
ARU should be able to largely complete the Feasibility
Study and advance the Nolans Project to the project
financing stage in CY13.



The critical issue will now be
the negotiations with potential project partners, an
essential requirement to get the project over the line.



The modest ~A$60m EV does not seem to reflect the
good progress made and the potential for value
generation if big brother partners are confirmed.



Based on our projected A$0.60-A$1.00.share valuation range
and recent signs of the start of a stock re-rating, we
maintain our A$0.28/share six months price target.