Rainbow Rare Earths Ltd
LSE:RBW

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Rainbow Rare Earths Ltd Logo
Rainbow Rare Earths Ltd
LSE:RBW
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Price: 17.5 GBX Market Closed
Market Cap: 112.7m GBX

Rainbow Rare Earths Ltd
Investor Relations

Rainbow Rare Earths Ltd. is a natural resources company, which engages in the exploration and mining of rare earth mineral concentrates. The firm is engaged in the exploration and development of the Gakara project, a rare earth deposit in Burundi, East Africa. The Gakara Rare Earth Project is located in the Bujumbura province of Western Burundi, which consists of a mining license and exploration license. The firm's principle asset, the mining license, is held through its subsidiary, Rainbow Mining Burundi SM. The Gakara project is located approximately 20 kilometers (km) south-southeast of Bujumbura and covers a combined area of approximately 135 square kilometers. Its exploration target at the project is rare earth element mineralization (REE), which is hosted in a system of narrow veins consisting of minerals bastnaesite and/or monazite. The company also owns approximately 10 mining claims covering a total of approximately 12 km square in Zimbabwe. The firm's subsidiaries include Rainbow International Resources Limited and Rainbow Burundi SPRL.

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Last Earnings Call
Fiscal Period
Q4 2024
Call Date
Oct 22, 2024
AI Summary
Q4 2024

Technological Milestone: Rainbow achieved the first commercial recovery of rare earth elements from phosphogypsum, a feat not previously accomplished.

Funding Secured: The company secured $50 million in equity funding from the US government DFC via TechMet and completed additional private placement and royalty-based raises, ensuring funding coverage through Q4 2025.

Resource Growth: Updated resource at Phalaborwa increased by 15% to about 35 million tonnes, extending project life from 14 to 16 years.

Product Purity Progress: The pilot plant produced separated rare earth oxides at 96–97% purity, with efforts ongoing to reach the 99%+ target.

Strategic Partnerships: Rainbow entered MoUs with LCM and Mosaic, and has seen approaches from global partners, opening up wider market opportunities.

Robust Market Outlook: Management highlighted strong long-term demand for rare earths driven by EVs, wind turbines, robotics, and eVTOLs, with global supply chain diversification efforts intensifying.

Low Cost Structure: The Phalaborwa project's low CapEx and OpEx structure, supported by existing infrastructure and high-margin basket, was emphasized as a unique competitive advantage.

Timeline and Guidance: Despite a technical delay, the project remains on track for a 2027 production start, with the DFS fully funded and interim reports expected by end of 2024.

Key Financials
Equity Funding Secured
$50 million
Private Placement
$5.5 million
Royalty Agreement and Placement
$10 million
Resource Estimate
35 million tonnes
Project Life
16 years
In-situ Rare Earths Value
$7.3 billion
Purity of Separated Rare Earths Oxide
96%–97%
Recovery Rate
66%
CapEx (preliminary economic assessment)
$300 million
Operating Margin
over 75%
EBITDA (at spot rare earths prices)
$190 million
EBITDA (at current rare earths prices)
$80 million per annum
Rare Earth Basket Price
$78.46 per kg
Production Start
2027
Other Earnings Calls
2024

Management

Mr. George Sidney John Bennett
CEO & Executive Director
No Bio Available
Mr. Peter Andrew Stuart Gardner ACA
Chief Financial Officer
No Bio Available
Mr. Dave Dodd B.Sc., FSAIMM
Technical Director
No Bio Available

Contacts

Address
Saint Peter Port
Trafalgar Court, Second Floor, East Wing, Admiral Park
Contacts