Arafura Rare Earths Ltd, page-728

We shareholders are an inpatient lot and always want more. I want the investment world to know the terms of off takes - pricing primarily to show the investment world risk is off on such pricing mechanisms - funds and retail can invest in ARU with great confidence in knowing pricing of off takes - which will only arrive in future quarterly's and be of combined pricing and sales revenue. Why? because each off take is confidential for obvious reasons.

Speed - in leu of what has happened since Dec 2022 with HP and other insto arriving - departure of ECE - missed past guidance for reasons known now - ARU management have pulled this together in very quick time - literally 18 months by end of June is outstanding - such is the pertinent global ex China demand and ESG etc requirements. Have a look at the governments and global companies locked in or about to be completed - none of which would have happened without our very own current Gov. Much the same applies to US situation and transition to renewables - then the EU shift due to Russia-Ukraine issues and critical deficiencies that arrived in reliance on one.

Shareholders - we are an impatient lot - but understand this is going to take time. What SP on FID soon - who cares unless one is here for the quick trade - the only issue of importance regarding SP is the equity component at what price and what dilution. I still believe we have some pleasant surprises in store to arrive and impact favorably the equity component.

No US Birch - GE are surely a lock to take some maybe even more than first advised - thanks to them we received the huge ECA - USD300million in very quick time. Yep I figured when I saw and posted regarding POSCO monster magnet supply deal they would be taking a chunk (they said at the time supply from Aus) which will comply with US and EU supply conditions.
Japan another in Asia - still possible however unlikely unless they want diversified supply ex Lynas.
India another in Asia - discussions some 9 months ago re trade were positive on critical minerals - they have a very large growing e mobility industry. Perhaps not mature enough as yet and they could be a customer down the track.

Currently the NdPr price declines immediately on US tariffs display Beijing's current strategy. It is not working! look at the ARU list of countries and companies - Japan's Lynas supply arrangements. China can supply cheap RE's - magnets - EV's etc all they like - the list of major countries securing ex China supply continues to grow - and they are all scuttling cheap Chinese dumping of EV's etc to protect their own major industries and economies - it is critical these countries do such - unfortunately Beijing's strategy to these major markets will be foiled. Yet they will gain market share in some places such as South East Asia. Thailand is a major vehicle producer with all big Japanese manufacturers dominating in the past - now China is crowding Thailand auto sales and establishing factories. Vietnam has their own quality EV's in Vinfast and the people there will mostly support local and gov initiatives - they do not sell themselves out to anyone like Thailand whom just announced they want in on BRICS as well as every other trade bloc universally such is their poor governance - corruption and lousy economy. Chinese EV manufacturers are already having EV pricing wars in Thailand - making very little just to stay afloat as China is saturated with choices of EV's and huge price discounting - some 200 EV manufacturers - perhaps 10 will make it through - so much at stake for them. But globally and the huge markets Beijing assumed they could supply and conquer have or are shutting the door. Not happy Jan comes to mind. Even worse are the growing voices from global independent and gov bodies - of ex China pricing controls getting louder - it is only a matter of a few years and China's RE and magnet pricing will become irrelevant to other major users and importantly for large suppliers such as ARU.

Earlier I think I mentioned todays sp is insignificant to that of 4 years time - well looking at their timelines in the presentation it may be 6 years before we hit full production - when ex China supply deficits are in full force and ARU have commenced many other organic growth plans - so 6 years 2030 for me is fine - perfect - born in 65 and I'll be 65 in 2030. Everyone has their own agenda. The most significant events have arrived since March on Aus Gov debt facility - for me we are now derisked - that's all that ever mattered to me - that Nolan's would get built - the other issues - challenges will be resolved in due course - construction, commissioning, ramping to full scale, internal growth. But nothing would have happened with Nolan's development but for the changes made since Dec 22 and thereafter to current day. Thankyou to Biden - Elbow - SK - EU - ARU management and the unfortunate events of other countries and ex China supply security. I'm sure there are many here breathing a lot easier now - well most anyway.