VIDEO: 90 Seconds With…Gavin Lockyer, Arafura Resources
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Special Report: Got 90 seconds? Then listen to Arafura Resources’ managing director discuss the impact following the news that rare earths heavyweight Lynas (ASX:LYC) rejected Wesfarmers’ $1.5 billion takeover play.
Lynas has now said it does not plan to engage with the $38 billion Wesfarmers because it did not like the terms of the indicative and highly conditional proposal.
But the fact that such a big deal was even on the table in the first place has ignited investor interest in a bunch of smaller players.
More than half the 13 ASX-listed companies that have exposure to rare earths made gains of between 7 per cent and 17 per cent on the back of the news, including Arafura Resources (ASX:ARU).
The company recently released the results of a definitive feasibility study (DFS) for its Nolans NdPr project.
The DFS indicated the project will be a low-cost producer with a net present value (NPV) of $729m and internal rate of return (IRR) of 17.43 per cent.
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