Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.

Arafura Resources $0.05 (symbol ARU on the Australian exchange; www.arultd.com), is an Australian firm with a rare earth property in the country’s Northern Territory.

Rare earth elements are a group of metals with unique characteristics. They are fairly common in the Earth’s crust, but due to their geochemical properties, these elements are usually dispersed and not routinely found concentrated as minerals in economically exploitable ore deposits. Thus the name “rare earth.”

They have many commercial applications, however. They are used for 1) catalytic converters, 2) magnets in small and large motors, 3) glass additives and glass-polishing compounds, 4) rechargeable batteries and 5) TV and computer screens, lighting, x-ray machines and lasers.

Junior mining stocks: Funding of $1.3 billion will be hard to raise

Arafura is focused on its Nolans Rare Earths Project, home to a deposit with high concentrations of neodymium and praseodymium, which are used in high-tech magnets for applications including computer hard drives, wind-turbine generators and audio headphones.

The company aims to bring the deposit into production by 2019, but it must first complete a feasibility study, which is expected at the end of 2015.

It will also need at least AUD$1.4 billion ($1.3 billion Canadian) to build a mine, and that funding could be very difficult to raise. That’s why the shares trade at just $0.05.

We don’t recommend Arafura Resources. If you own the shares, we think you should sell.