Rainbow Rare Earths

Financials:

Primary ticker: LSE:RBW
Stage of development: Development, Production
Primary minerals: Rare Earths
Project to promote: Phalaborwa and Gakara
Project location: South Africa & Burundi
Website: www.rainbowrareearths.com
Corporate video: Click here 

Rainbow is focused on producing rare earth oxides to drive the green energy transition. Rainbow’s projects include the Phalaborwa Project in South Africa and the high-grade Gakara Project in Burundi. Rainbow is also investigating other processing projects, such as the opportunity of extracting rare earth elements from a nitro phosphate process stream at a phosphoric acid production plant near Johannesburg in South Africa.

Through our processing projects, which have fundamentally different risk profiles to traditional rare earth mining projects, we see enormous potential to facilitate near-term access to sources of critical permanent magnet rare earths, required to decarbonise energy systems in an environmentally responsible way.

Phalaborwa comprises a resource estimate of 30.7Mt at 0.43% TREO contained within unconsolidated gypsum stacks derived from historic phosphate hard rock mining. High value NdPr oxide represents 29.1% of the total contained rare earth oxides, with economic dysprosium and terbium oxide credits enhancing the overall value of the rare earth basket in the stacks.

Major shareholders:
A. Pouroulis – 14.6%
G.Bennett – 6.9%
R. Kampf – 5.5%
Management Ownership – 26%

Management Profile

George Bennett – CEO
 • 25 years in finance and management, including as a partner in numbdr of leading stockbroking/advisory firms in SA
• Former CEO of Shanta Gold Ltd, successfully listed on LSE in 2005
• CEO and Founder of MDM Engineering, listed on LSE in 2008; responsible for building 22 process plants and completing over 60 feasibility studies – sold after 8 years to Foster Wheeler for US$120 million
• Seed-funded and raised initial capital for OreCorp Ltd, now ASX listed

Peter Gardner – CFO
 • Qualified Chartered Accountant
• 15 years’ experience in mining industry leading finance teams across Africa and developing nations
• Former CFO of Amara Mining plc (up to acquisition by Perseus Mining Ltd), Chaarat Gold, Piran Resources and Alexander Mining

What is your rationale for taking part in 121 Mining Investment?

Investor relations to further increase, broaden and diversify our investor base.

What recent news would you like to highlight to investors attending?

Phalaborwa preliminary economic assessment – 3 October

What are your key goals for the next 3, 6 and 12 months?

3 Months:
Publication of a resource update for Phalaborwa and the definition of a work programme for a feasibility study.

6 Months:
Identify all permits required for Phalaborwa’s development, engage with the relevant authorities to expedite permitting and undertake further process optimisation tests.
Continue to identify and assess rare earths production opportunities from phosphogypsum sources.

12 Months:
Extensive process pilot plant operation at Phalaborwa.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Commercial production at Gakara – the operation remains on care and maintenance, with short-term cash requirements minimised – Rainbow continues to engage effectively with all stakeholders to allow operations to recommence.

What do you think makes your company such a compelling investment?

The escalating urgency to tackle climate change is revealing a number of challenges, including a supply shortage of the raw materials required to drive the clean energy transition. With our near-term development opportunity at Phalaborwa in South Africa, as well as other opportunities to produce rare earth oxides from secondary sources, we believe Rainbow is well positioned to contribute to this global effort by providing a responsible, Western source of seperated rare earth oxides, critical minerals for the permanent magnets used in offshore wind generation and electric vehicles.

What are the top 3 key investor takeaways?

• There is a growing supply/demand imbalance and mounting pressure from Governments and investors to secure, independent, ethical, conflict-free rare earth mineral supply chains, with significant growth in demand expected for NdPr to power the green revolution.
• Phalaborwa’s PEA confirms robust economics with a base case NPV of $627m and a 2-year payback
• Rainbow has both project and country risk diversification