The Arafura Resources Ltd (ASX: ARU) share price is pushing higher in afternoon trade on Tuesday.
At the time of writing, the rare earths share is swapping hands at 36 cents apiece on no news, a 4.35% jump on the day.
This brings Arafura's gains to around 25% in the new financial year, capping off a solid performance in July.
What's up with the Arafura share price?
It's been a quiet month for the company. That was until it released its quarterly activities report yesterday.
In the report, Arafura outlined that NdPr [neodymium and praseodymium] pricing continued to realise strong performance at US$139/kg to close the quarter.
It also highlighted a memorandum of understanding (MoU) with Hyundai Motor Company.
The terms would be for an offtake agreement of 1,000-1,500 tonnes per annum of NdPr Oxide over a seven-year term. It would commence in 2025 if it goes ahead.
The Arafura share price is also rated as a buy from analysts at Bell Potter. The broker is attracted to the company's Nolans rare earth project.
It also noted the MoU with Hyundai Motor Company in its notes, suggesting the company could potentially provide up to 8% of global supply into the permanent magnet market.
In addition, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has risen in July despite weakening substantially at the back end of June.
Both Arafura's and the index's returns for the year to date are seen below. It's also worth noting that in the last 12 months, the Arafura share price has gained more than 173%.
