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Australian Rare Earths Limited (ASX:AR3)

ALERT: Price-sensitive ASX Announcement for AR3
Current share price for AR3 : $0.108 0.003 (2.38%)+
Announcement
Release
25 Jun 2026 9:47AM
Price at Release
$0.105
Full Release
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Summary
The Koppamurra Pre-Feasibility Study by Australian Rare Earths Limited presents a comprehensive evaluation of the Koppamurra Project, delineating a significant clay-hosted rare earth elements deposit in South Australia. The project outlines a 12-year operation plan with a processing capacity of 3 million tonnes per annum and an Ore Reserve estimate of 26 million tonnes at a grade of 920 ppm TREO. Financial projections include an initial capital expenditure of A$178 million, annual operating costs of A$96 million, and a robust financial outlook with a pre-tax NPV of A$1,196 million and a post-tax NPV of A$858 million. The study highlights a strong pre-tax IRR of 113% and a post-tax IRR of 99%. Detailed sensitivity analyses show the project's responsiveness to rare earth market prices. Environmental considerations are addressed through a mitigation hierarchy and extensive stakeholder engagement, ensuring the sustainable development of the project.
Key Points
  • Koppamurra Project is a significant clay-hosted rare earth elements deposit located in South Australia.
  • The project has an Ore Reserve estimate of 26 Mt at 920 ppm TREO as of June 2026.
  • The life of the operation is planned for 12 years with a processing capacity of 3 Mt per annum.
  • Initial capital expenditure (CAPEX) is estimated at A$178 million.
  • Annual operating costs (OPEX) are projected at A$96 million.
  • The project has a pre-tax NPV (Net Present Value) of A$1,196 million and a post-tax NPV of A$858 million.
  • Pre-tax IRR (Internal Rate of Return) is estimated at 113%, with a post-tax IRR at 99%.
  • The project's sensitivity to rare earth pricing and other factors was assessed, showing significant responsiveness to market changes.
  • Environmental and regulatory considerations include comprehensive risk management strategies.
  • The project applies a mitigation hierarchy and involves significant stakeholder engagement.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.