Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (May 2021)
28 slides from Rainbow Rare Earths's investor presentation, May 2021
Slide 1: NdPr: Powering the Green Revolution
RAINBOW RARE EARTHS NdPr: POWERING THE GREEN REVOLUTION May 2021
Slide 2: Disclaimer
DISCLAIMER These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity and should not be construed as, an offer for sale or subscription of, or solicitation of any offer to
Slide 3: Market Overview: Rare Earths, the Critical Building Blocks
MARKET OVERVIEW RARE EARTHS: THE CRITICAL BUILDING BLOCKS Market Overview IN THE GREEN REVOLUTION 3 Rainbow Rare Earths Limited Corporate Presentation – May 2021
Slide 4: NdPr Constitute 90%+ of Rare Earths Value
NdPr CONSTITUTE 90%+ OF RARE EARTHS VALUE NEODYMIUM AND PRASEODYMIUM (NdPr) ARE CRITICAL ELEMENTS IN PERMANENT MAGNETS USED FOR MOTORS AND TURBINES Permanent magnet production accounted for 91% of the total value of TREO consumption in 2019 Market Overview Source: Adamus Intelligence 4 Rainbow Rare
Slide 5: Global Trends Accelerate NdPr Demand
GLOBAL TRENDS ACCELERATE NdPr DEMAND… KEY GLOBAL MEGATRENDS ARE DRIVING STRONG AND DIVERSIFIED DEMAND FOR NdPr ANTICIPATED GLOBAL REO MAGNET DEMAND GROWTH 160,000 • AUTOMATION: Accelerating technological progress 141Kt by 2030 140,000 • LOW CARBON TRANSITION: environmental protection and climate cha
Slide 6: Powered by the Green Revolution
…POWERED BY THE GREEN REVOLUTION PROJECTED ANNUAL GLOBAL EV SALES NO EXISTING ACCEPTABLE SUBSTITUTES FOR NdPr IN PERMANENT MAGNETS FOR EVS AND WIND TURBINES WHILST BATTERY CHEMISTRY IS STILL EVOLVING, THE MOTOR TECHNOLOGY REQUIRED ACROSS ALL EVS DRIVES NDPR DEMAND REGARDLESS OF BATTERY CHEMISTRY Mar
Slide 7: Significant Projected NdPr Supply Constraints
SIGNIFICANT PROJECTED NdPr SUPPLY CONSTRAINTS SECURING AN ETHICAL AND SUSTAINABLE SUPPLY CHAIN FOR STRATEGIC MATERIALS NdPr OXIDE – FORECAST SUPPLY – DEMAND BALANCE • China currently dominates global RE production (~80%) 160,000 • The EU’s Action Plan on Critical Raw Materials aims to strengthen 140
Slide 8: Rainbow Projects: Supported Even at Current NdPr Prices
RAINBOW PROJECTS: SUPPORTED EVEN AT CURRENT NdPr PRICES NDPR PRICES ARE FORECAST TO INCREASE SIGNIFICANTLY BY 2030… ...but the economic viability of Rainbow’s Gakara and Phalaborwa projects is supported even at current prices NdPr PRICE FORECASTS 120 Market Overview 110 100 90 80 70 60 50 40 30 2015
Slide 9: Project Overview: Phalaborwa Project
PROJECT OVERVIEW Project Overview: Phalaborwa Project PHALABORWA PROJECT 9 Rainbow Rare Earths Limited Corporate Presentation – May 2021
Slide 10: Significant NdPr Production to Power the Green Revolution
SIGNIFICANT NDPR PRODUCTION TO POWER THE GREEN REVOLUTION PHALABORWA – EXCITING, NEAR-TERM GROWTH OPPORTUNITY C.35MT OF GYPSUM IN TWO STACKS FROM 50+ YEARS PHOSPHATE Project Overview: Phalaborwa Project HARD ROCK MINING IN SOUTH AFRICA • Project is largely permitted and positioned in an established
Slide 11: Phalaborwa: Simple Processing and High Value Carbonate Product
PHALABORWA SIMPLE PROCESSING AND HIGH VALUE CARBONATE PRODUCT EXPECTED TO DRIVE STRONG PROJECT ECONOMICS • Historical processing, including initial Typical Rare Project Overview: Phalaborwa Project flotation and concentration by Foskor Typical Unit Processes Phalaborwa followed by processing in Saso
Slide 12: Assay Results Confirm High Value Project
ASSAY RESULTS CONFIRM HIGH VALUE PROJECT MUCH HIGHER GRADE THAN TYPICAL IONIC CLAY RARE EARTH PROJECTS Project Style Owner TREO4 NdPr5 Uranium6 Thorium7 Project Overview: Phalaborwa Project % ppm ppm ppm Phalaborwa1 Tailings Rainbow Rare Earths 0.454% 1,314 2 54 Round Top2 Ionic Clay US Rare Earths/
Slide 13: Phalaborwa: An Ideal Location for a New Operation
PHALABORWA AN IDEAL LOCTION FOR A NEW OPERATION • Brown field site near established Site boundary Project Overview: Phalaborwa Project mining town • Agreed location for new deposition of clean treated gypsum in a ‘Green’ stack • Space for new processing Existing plant area infrastructure within exis
Slide 14: Phalaborwa: Excellent Local Infrastructure
PHALABORWA EXCELLENT LOCAL INFRASTRUCTURE SASOL’S PILOT PLANT REMAINS ON SITE WITH [INSERT PICS FROM DAVE] Project Overview: Phalaborwa Project ASSOCIATED INFRASTRUCTURE OF PHOSPHORIC ACID PLANT, INCLUDING: • High voltage switchyard (providing access to Eskom grid power) • Equipped machine shops • W
Slide 15: Phalaborwa: Earn-in Agreement
PHALABORWA EARN-IN AGREEMENT • Earn-in agreement signed with Bosveld Phosphates Project Overview: Phalaborwa Project • US$750k consideration for earn-in payable in three tranches in cash and shares over a period of 12 months • US$250k paid in cash in December 2020 on completion of initial confirmato
Slide 16: Project Overview: Gakara Project
PROJECT OVERVIEW GAKARA PROJECT Project Overview: Gakara Project 16 Rainbow Rare Earths Limited Corporate Presentation – May 2021
Slide 17: Producing High-Grade Rare Earth Concentrate
PRODUCING HIGH-GRADE RARE EARTH CONCENTRATE FROM THE ONLY AFRICAN RARE EARTHS MINE IN PRODUCTION PRODUCING HIGH-GRADE RARE EARTH CONCENTRATE FROM THE ONLY AFRICAN RARE EARTHS MINE IN PRODUCTION Project Overview: Gakara Project • Located just south of Bujumbura, Burundi (East Africa) • Large mining p
Slide 18: Gakara Deposit: A Mix of Breccia and High-Grade Veins
GAKARA DEPOSIT A MIX OF BRECCIA AND HIGH-GRADE VEINS Project Overview: Gakara Project Source: PhD thesis, University of Rennes, December 2019 18 Rainbow Rare Earths Limited Corporate Presentation – May 2021
Slide 19: JORC Exploration Target Across the Licence
JORC EXPLORATION TARGET FROM ACROSS THE LICENCE Gasagwe – Trial mined by Rainbow between 2017–2019 Murambi South – Currently being trial mined by Rainbow. producing 1,200t high grade concentrate. Production data and vein mapping data delivered updated Production data and vein mapping data delivered
Slide 20: Gakara Exploration Target
GAKARA EXPLORATION TARGET JORC (2012) EXPLORATION TARGET ANNOUNCED OCTOBER 2020 DEFINED CLEAR STRATEGY FOR MODULAR DEVELOPMENT Targeting 10,000-20,000tpa RE concentrate production Lower estimate Upper estimate Project Overview: Gakara Project Tonnes TREO % Tonnes TREO % Vein Hosted Mineralisation Mu
Slide 21: Progressing Mining at Gakara to Mechanical Methods
PROGRESSING MINING AT GAKARA TO MECHANICAL METHODS TRIAL MINING HAS PROGRESSED FROM SMALL-SCALE MANUAL …TO BULK MECHANICAL WASTE MINING AND SELECTIVE MECHANICAL FOCUSSED OPERATION… MINING METHOD Project Overview: Gakara Project • A second new mining fleet is now in operation on site PRE-2020 CURRENT
Slide 22: Road Map: Delivering on Long Term Gakara Potential
ROAD MAP DELIVERING ON THE LONG TERM GAKARA POTENTIAL CURRENT STATUS STAGE 2: NEAR TERM PROFITABLE GROWTH STAGE 3: REALISING FULL POTENTIAL • Trial mining proof of concept at Gakara Project • Expand trial mining into new areas to confirm • Grow JORC resource base: large mineralised Project Overview:
Slide 23: Summary
SUMMARY RAINBOW: A STRATEGIC SOURCE OF RARE EARTH Summary MINERALS FOR A GROWING MARKET 23 Rainbow Rare Earths Limited Corporate Presentation – May 2021
Slide 24: Rainbow: A Strategic Source of Rare Earth Minerals
RAINBOW A STRATEGIC SOURCE OF RARE EARTH MINERALS FOR A GROWING MARKET Rainbow Rare Earths is uniquely positioned to benefit from the expected growth in the demand for Rare Earths to power the Green Revolution • Rainbow has both project and country risk diversification from two potentially world-cla
Slide 25: Our Executive Management
OUR EXECUTIVE MANAGEMENT GEORGE BENNETT DAVE DODD CEO TECHNICAL DIRECTOR • 25 years in finance and management, including as partner in stockbroking/advisory • 45 years of extractive metallurgy experience firms in SA • Dave Dodd – Metallurgical Project Consultant • Former CEO of Shanta Gold Ltd, succ
Slide 26: Our Board – Non-Executive Directors
OUR BOARD – NON-EXECUTIVE DIRECTORS ADONIS POUROULIS J PETER PHAM NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR • Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration • Scholar and practitioner of International Affairs with more than 20 years of and development of natu
Slide 27: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BOARD SHAREHOLDINGS Shareholder Holding Ticker Market Market cap Share price Shares in Brokers issue Adonis Pouroulis* 16.1% RBW.L LSE £72m 15.25p 475m SP ANGEL George Bennett* 7.3% SHARE PRICE Summary Shawn McCormick* 2.0% Alexander Lowrie 1.3% Robert Sinclair 1.1% Atul
Slide 28: Thank You
RAINBOW RARE EARTHS THANK YOU Contact us: GEORGE BENNETT PETE GARDNER CEO CFO SA Mobile: +27 82 652 UK Mobile: +44 771 779 4251 Office Number: + 27 11 996 3500 Skype: petegardner73 Skype: George.bennett72 Email: peteg@rainbowrareearths.com Email: georgeb@Rainbowrareearths.com
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