Business
Interim Results for six months to 31 December 2022
Interim Results for six months to 31 December 2022.
About this update from Rainbow Rare Earths Ltd.
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n 31 March 2023\n \n \n \n Rainbow Rare Earths Limited\n \n \n \n (\"Rainbow\" or \"the Company\")\n \n \n LSE: RBW\n \n \n \n \n \n \n \n \n Interim Results for the six months ended 31 December 2022\n \n \n \n \n Rainbow Rare Earths\n \n is pleased to announce its unaudited results for the six months ended 31 December 2022 (\"the Period\").\n \n \n \n Highlights\n \n \n \n ·\n Strong supply/demand fundamentals for permanent magnet rare earths supported by projection that c. 25% of supply will need to come from new projects by 2030[1].\n \n \n ·\n Robust Phalaborwa project economics demonstrated by the preliminary economic assessment (\"PEA\") published during the Period which presented base case figures of:\n \n \n o \n NPV10 of US$627 million[2];\n \n \n o \n an IRR of 40%;\n \n \n o \n an average EBITDA operating margin of 75%; and\n \n \n o \n a payback period of only two years.\n \n \n ·\n Using long-term rare earth price forecasts provided by Argus Media Group, underpinned by compelling supply/demand fundamentals, the PEA delivers an NPV10 over US$1 billion.\n \n \n ·\n Key workstreams have commenced to advance Phalaborwa to the definitive feasibility study (\"DFS\") stage, with the pilot plant due to commence commissioning in Q2 2023.\n The project remains on track to reach production in 2026 - five years after initial work commenced on site in 2021.\n \n \n ·\n The overall size of the Phalaborwa Mineral Resource Estimate is confirmed at 30.4 Mt, comprising 0.44% total rare earth oxides (\"TREO\"). High-value magnet rare earths Neodymium (\"Nd\") and Praseodymium (\"Pr\") represent 29% of the TREO in the rare earths basket, with economic quantities of Dysprosium (\"Dy\") and Terbium (\"Tb\").\n \n \n ·\n As a brownfield site, the development of Phalaborwa provides Rainbow with a significant opportunity to make positive environmental, social and economic impacts.\n \n \n ·\n Leveraging our proprietary technology, we continue to explore opportunities to deliver separated rare earth oxides from secondary phosphogypsum sources around the world.\n \n \n ·\n Continued progress in ongoing discussions with strategic funding partners.\n \n \n ·\n Strong technical team to drive Phalaborwa's successful development, as well as progressing our global growth pipeline....