Recent Developments at Arafura Rare Earths Ltd

Institutional Shareholder Changes

On 22 December 2025, Arafura Rare Earths Ltd announced that Mitsubishi UFJ Financial Group (MUFG) ceased to be a substantial shareholder. The ASX Form 605 filed on 8 December 2025 indicated that MUFG had reduced its holdings below the 5 % threshold, a move that also affected its subsidiary, Morgan Stanley, which was listed as a major investor in the same disclosure.

A subsequent ASX notification on 23 December 2025 confirmed that two global financial giants – MUFG and an unnamed “global finance heavyweight” – had significantly reduced their positions in the company. The reductions were reported to be below regulatory disclosure thresholds, but the announcements were followed by a positive price reaction in Arafura’s shares.

Impact on the Nolans Project

Arafura’s Nolans project, a key rare‑earth development in the Northern Territory, remains a focal point for the company’s strategy. The latest news suggests that the company is approaching a final investment decision (FID) for Nolans in the first quarter of 2026. In line with this timeline, the company has secured a substantial portion of its state‑backed project financing, which analysts have recently revised upwards.

The institutional sell‑off, while noteworthy, has not altered the company’s position on the project. Instead, it has prompted a reassessment of the shareholder base, with the company now attracting new institutional interest. Notably, a recent ASX filing indicates that Morgan Stanley and its affiliates have increased their holdings, signaling continued confidence in Arafura’s resource potential and project roadmap.

Market Context

The company’s share price, trading in AUD, closed at $0.265 on 22 December 2025. It has experienced a 52‑week high of $0.62 (20 October 2025) and a low of $0.095 (8 June 2025). The market capitalization stands at $888.33 million AUD. The negative price‑earnings ratio of −32.66 reflects the company’s status as a development-stage miner with no earnings yet.

Summary

  • MUFG and another global bank have reduced their stakes below the 5 % disclosure threshold.
  • Morgan Stanley has increased its holdings, indicating renewed institutional support.
  • Arafura remains focused on securing the final investment decision for the Nolans project, with state‑backed financing largely in place.
  • Share price movements have been positive following the institutional sell‑offs, underscoring investor confidence in the company’s long‑term prospects.

These developments highlight a period of significant shareholder realignment for Arafura Rare Earths Ltd, while its core project and financing strategy remain on track for a 2026 investment decision.