Stormcrow Capital Sees Arafura Resources as Poised to Grow

A research note from Stormcrow Capital took a look at Australia’s Arafura Resources (ASX:ARU) and the company’s advanced feasibility stage Nolans rare earths project. Giving the company a “positive” rating and a target price of $0.35, the analysts saw the deposit at Nolans as “one of the largest and lowest risk REE deposits in the world.” Arafura was trading around $0.044.

As quoted in the press release:

Arafura has every characteristic of a project that will be supported by strategic investors, including end-users. The Nolans Bore deposit is located in mining-friendly Australia, and can produce for many decades. Arafura can produce industryleading levels of neodymium and praseodymium, to be turned into magnets and used in the automotive, alternative energy and aerospace industries. The project is economically viable, even if REE prices approach worst-case levels. And the company has few, if any, remaining technical or social acceptability hurdles. We believe that Arafura is a name that every interested rare earths investor must own.

Click here to read the full research note from Stormcrow Capital.