Business Description:
Arafura Resources NL (ARU) is a minerals exploration company focusing on rare earths. ARU’s flagship project is the Nolans Rare Earths Project, located in Northern Territory, Australia.

Strategy Analysis:
Arafura has an exploration and development program to grow its position in rare earth projects that are consistent with additional growth beyond the Nolans Project. The Company will focus on the identification and development of rare earth projects and specialise in rare earths products and their markets. Arafura's primary focus is the development of its Nolans rare earths-phosphate-uranium project. The deposit has a resource to sustain a mine life of over 20 years and Arafura has developed a processing flowsheet that optimises the extraction of rare earths, phosphoric acid, and uranium. Arafura Resources reported negative cash flow of $15.09m for quarter ended 30 September 2011. Operating cash flow for the period was $(15.04m). Payments for exploration and evaluation were $(9.91m). Investing cash flow was $(53,000). Financing cash flow was nil. Cash in hand at the end of the quarter was $55.06m. During the quarter, the Company's activities remain fully focused on delivering the 100% owned Nolans Rare Earths Project. All Bankable Feasibility Study work streams are in progress.