ARU 0.00% 17.5¢ arafura rare earths ltd

https://www.metal.com/Rare-Earth-Oxides/201102250162Yep, a nice...

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    https://www.metal.com/Rare-Earth-Oxides/201102250162
    Yep, a nice increase NdPr oxide at $US72.02 per kg ($72,019.61USD/metric tonne). Technically at this level still not enough to make the project viable, but its heading in the right direction. Long term projections by all metal experts see Life of Mine NdPr oxide prices at $US130 /kg and has been what management have been using in their NPV estimates (in all the presentations) OPEX hopefully stays at/near $US35/kg (incl of Phosphoric Acid credits) so even at todays price
    EBITDA would be 4440tonnes X $US 37,000 = $UD 164 mil so at these low NdPr oxide prices it will all depend on management obtaining ultra-cheap financing from ECAs at something under 7% pa, so that annual interest bill is under $US 70mil pa. That leaves ARU with ability to repay the $US 1.0bil over 15 years with approx $US70mil pa.
    AS I've stated many times in the past, don't expect to be reaping dividends from this cashcow in the first few years of production (commissioning, ramp-up, etc) but from 2030/31 onwards expect a dividend which will then build nicely over those next 5 years to be (speculation, but my calcs) in the order of AUD10 cents per share.

    All IMVHO, DYOR (cause I have), GLTA(patient)LTH "Build it they will come for more" LTH over 1.0mil but less than5.0 mil shares.


 
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