A: Thanks for the question.

I have no particular insight into ARU.

I note the MD announced on Wednesday that he is stepping down – this is probably not a great sign. The economics of their rare earth project look pretty challenging, and while they are sitting on some cash, it is looking somewhat unlikely that this project will get off the ground.

With any mining exploration company, there is always a reasonable chance they will get taken over. Historically, the most likely acquirer is a major shareholder – and with the Chinese company ECE owning around 24.5% of the company, you may want to research what the position of the FIRB might be in relation to any offer. Their shareholding may also potentially be a negative to other possible acquirers.

In the short term, I wouldn’t be banking on a takeover offer.

Kind regards,