Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (March 2017)
34 slides from Rainbow Rare Earths's investor presentation, Mar 10, 2017
Slide 1: Developing One of the World's Richest Rare Earth Deposits
DEVELOPING ONE OF THE WORLD’S RICHEST RARE EARTH DEPOSITS: NEAR TERM, LOW COST PRODUCTION INVESTOR PRESENTATION Q4 2017
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: Overview
OVERVIEW FOCUSED ON BECOMING AN INDEPENDENT SUPPLIER OF HIGH- GRADE CONCENTRATE TO THE GLOBAL RARE EARTH MARKET BY BRINGING THE GAKARA PROJECT INTO PRODUCTION Developing one of the Straightforward, low world’s highest grade ccost mining and rare earth projects ppprocessing routes Fully permitted pro
Slide 4: Key Data
KEY DATA SHARES TICKER MARKET MARKET CAP SHARE PRICE JOINT BROKERS IN ISSUE HANNAM & PARTNERS RBW.L LSE £16.74m 11.00p 154.63m ARDEN PARTNERS As at 03.10.17 SHARE PRICE GRAPH SIGNIFICANT SHAREHOLDERS 13 12.5 SHAREHOLDER HOLDING 12 Adonis Pouroulis 29.33% Other Board & 11.5 6.41% Management 11 Shawn
Slide 5: Annual Results to June 2017: Rapid Development Since the IPO
ANNUAL RESULTS TO 30 JUNE 2017 RAPID DEVELOPMENT SINCE THE IPO Primary focus at Gasagwe: haulage & Mining site preparation, Initial labour force EPCM contract signed for access road construction stripping and exposure of recruited on site Gakara processing plant & basic infrastructure for rare earth
Slide 6: Company photos of inducted, trained and equipped staff
Source: Company Rainbow photo Rare Earths Ltd.of| Corporate fully inducted, trained and Presentation Q4equipped 2017 staff 5
Slide 7: Rare Earths: Long Term Growth in Global Demand
RARE EARTHS LONG TERM AND CONSISTENT GROWTH IN GLOBAL DEMAND FOR RARE EARTHS Properties vital for many high-tech applications Global Rare Earth Demand by ▶ Magnetism, high thermal and electrical Element 2012-2016 ▶ conductivity, luminosity, and catalytic action ▶ Market currently driven by increasin
Slide 8: The "Technology Metals"
THE “TECHNOLOGY METALS” Nd & Pr ARE THE MOST VALUABLE ELEMENTS IN THE LANTHANIDE GROUP Magnet Rare Earths are critical in these key booming markets amongst others Projected Global Electric Vehicle Sales Electric vehicles: Smart phones : Wind turbines: Forecast demand growth Neodymium gives your NdFe
Slide 9: Executive & Management Team
EXECUTIVE & MANAGEMENT TEAM TECHNICALLY, OPERATIONALLY AND FINANCIALLY PROVEN IN MINE DEVELOPMENT IN AFRICA Martin Eales • 15 years’ broking and investment banking expertise specialising in the resources sector CEO • Previously Managing Director at RBC Capital Markets in London. Was long-term advise
Slide 10: The Gakara Rare Earths Project
THE GAKARA RARE EARTHS PROJECT Source: Company’s aerial photo of Gasagwe operation. Rainbow Rare Earths Ltd. | Corporate Presentation Q4 2017 9
Slide 11: Project Overview
PROJECT OVERVIEW Key Facts NEAR TERM PRODUCTION FROM HIGH-GRADE RARE EARTH MINE Location Mining Areas: 35km by road from Bujumbura, Burundi’s capital city Processing Plant: 13km South of Bujumbura by road Interest 90% with a non-dilutable 10% owned by the Republic of Burundi Mining Licence Granted M
Slide 12: Gakara Project: Key Strengths
GAKARA PROJECT: KEY STRENGTHS HIGH-GRADE, LOW CAPEX PROJECT WITH NEAR TERM PRODUCTION SIMPLE OPERATION MANAGEMENT & HIGH GRADE PARTNERSHIPS ▶ Extremely high-grade ore ▶ Ore extracted by manual mining from ▶ Distribution agreement in place with the host rock (free-digging – no thyssenkrupp Raw Materi
Slide 13: The Deposit
THE DEPOSIT HIGH GRADE EXTENSIVE INVENTORY ▶ 835 occurrences of high-grade vein material have been identified to date: ▶ 408 established as in-situ veins (the rest are transported material) ▶ Only those veins exposed at surface have been included ▶ Independent Consultant MSA calculated an Exploratio
Slide 14: Development Schedule 2017/2018
DEVELOPMENT SCHEDULE 2017/2018 DEFINED DEVELOPMENT PLAN TO MAXIMISE PRODUCTION POTENTIAL AND BUILD VALUE Opportunities to further Production rates increase production and intended to increase investigate downstream Start of mining Process plant to 5,000tpa target value opportunities completion IPO a
Slide 15: Gakara Project: Licence Areas
GAKARA PROJECT: LICENCE AREAS MINE PLAN DEVELOPED FOR NEXT TWO YEARS Initial Mine Areas GASAGWE & GASHIRWE WEST Rainbow Rare Earths Ltd. | Corporate Presentation Q4 2017 14
Slide 16: Rainbow Rare Earths Ltd. | Corporate Presentation Q4 2017
Rainbow Rare Earths Ltd. | Corporate Presentation Q4 2017 15
Slide 17: Gakara Project: Gasagwe
GAKARA PROJECT: GASAGWE FIRST MINING AREA NOW WELL ADVANCED AND ORE EXTRACTION UNDERWAY ▶ Total production from Gasagwe planned for over 5,000 tonnes of concentrate over two years ▶ Manual bench mining to remove overburden commenced at initial mine site Gasagwe in April 2017 ▶ Extraction of ROM ore
Slide 18: Gakara Project: Gashirwe West
GAKARA PROJECT: GASHIRWE WEST GASHIRWE WEST, THE SECOND DEPOSIT PLANNED TO BE MINED, IS SITUATED IN THE CENTRAL NW PART OF THE MINING LICENCE Example of adit ▶ Planned production from Gashirwe West commencing 2018 ▶ Underground up-dip room and pillar manual mining accessed by hand-dug adits Rainbow
Slide 19: Ore Processing
ORE PROCESSING SIMPLE, CHEMICAL-FREE PROCESSING TO PRODUCE HIGH-GRADE CONCENTRATE Tailings to be reprocessed at end of mining 3D Image of the Processing plant Source: Rainbow Rare Earths ▶ Process plant will have 5tph throughput, therefore total annual (expected grade ~30% TREO) production capacity
Slide 20: Processing Plant
PROCESSING PLANT ▶ ROM ore processing plant is situated at Kabezi approximately 20km from the Company's mining areas ▶ Successful drilling and capping of a borehole has been completed to confirm adequate water supply for all of the site's processing and office/warehouse requirements ▶ Completion of
Slide 21: Gakara Basket
GAKARA BASKET ORE VALUE STRONGLY WEIGHTED TOWARDS MAGNET RARE EARTHS Basket composition Magnet Rare Earths Based on average grades of REOs within Gasagwe in situ vein samples and market prices of separated 2% 15% ▶ Magnets REEs: Magnets containing neodymium and 31% praseodymium are the strongest com
Slide 22: Partners: thyssenkrupp
PARTNERS: THYSSENKRUPP SUBSIDIARY OF GERMAN MULTINATIONAL THYSSENKRUPP SECURED AS DISTRIBUTION AND OFFTAKE PARTNER FOR CONCENTRATE ▶ 10 year distribution and offtake agreement with thyssenkrupp Raw Materials (“tk Raw Materials”), an active worldwide metals trader with offices in Europe, North Americ
Slide 23: Peer Comparison
PEER COMPARISON RAINBOW EMERGES AS THE LOWEST CAPEX RARE EARTHS COMPANY WITH THE FASTEST ROUTE TO PRODUCTION Avalon Advanced Materials Alkane Resources Capex expectations of other REE development projects Peak Resources Northern Minerals* Hastings Technology Metals Mkango Resources Rainbow Rare Eart
Slide 24: Future Strategy
FUTURE STRATEGY NUMEROUS OPTIONS TO DRIVE FUTURE VALUE FOR SHAREHOLDERS Demonstrate profitability through trial mining and Continued exploration Increase production achieve commercial expected to uncover beyond 5,000 tpa production target of more veins 5,000 tpa by the end of 2018 Capture greater sh
Slide 25: Key Strengths
KEY STRENGTHS High grade Near-term production Attractive rare earth mix Low capex operation Simple processing route Fully permitted Supportive government Distribution partner established EV transformational demand drive Team to deliver Rainbow Rare Earths Ltd. | Corporate Presentation Q4 2017 24
Slide 26: Appendix
APPENDIX Rainbow Rare Earths Ltd. | Corporate Presentation Q4 2017 25
Slide 27: Board
BOARD A BLEND OF CORPORATE, AFRICAN, RARE EARTH & PROJECT DEVELOPMENT EXPERIENCE Adonis Pouroulis • Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration and Non-Executive development of natural resources across Africa including diamonds, precious/base metals, coal and
Slide 28: Development Chronology
DEVELOPMENT CHRONOLOGY HISTORICAL MINING PROVIDES SUBSTANTIAL DETAIL ON MINERALISED SYSTEM HISTORICAL German Geological Survey exploration and feasibility study in six primary sites resulting in delineation of c.5,000t resource at Discovered 50% TREO 1936 1981 1985 Gakara mine, 1957 1948 1978 ▶ Hist
Slide 29: Development Chronology
DEVELOPMENT CHRONOLOGY DEFINED DEVELOPMENT PROGRAMME TRANSLATED INTO A MINING-READY ASSET RAINBOW DEVELOPMENT Completion of initial Mining exploration work Mining Licence licence 2013 Application 2015 awarded thyssenkrupp Start of internal 2011 2014 Exploration offake production licence renewed agre
Slide 30: Rare Earth Elements and Their Uses
RARE EARTH ELEMENTS AND THEIR USES APPLICATION RARE EARTHS DEMAND DRIVERS Automotive, Wind turbines, Drives for computers, mobile Nd, Pr, Sm, Tb, phones, mp3 players, cameras, Voice coil motors. Magnets Dy Hybrid and Electric vehicles, Cordless power tools, Sensors, Medical imaging (MRIs) LaNiH Hybr
Slide 31: Corporate Social Responsibility/Community Initiatives
CORPORATE SOCIAL RESPONSIBILITY/COMMUNITY INITIATIVES COMMITTED TO IMPROVING THE LIVELIHOOD OF LOCAL COMMUNITIES ▶ Rainbow is committed to stimulating the economy on both a local and national level. ▶ By utilising the local labour market in the development of its project, Rainbow is able to provide
Slide 32: Year Ended June 2017 – Summary P&L and B Sheet
YEAR ENDED 30 JUNE 2017 – SUMMARY P&L AND B SHEET INCOME STATEMENT US$’000 30 June 2017 30 June 2016 ▶ Income statement reflects support costs incurred during the year – higher in 2017 Operating expenses (1,431) (674) due to increased activity post IPO Net finance cost 29 (526) ▶ Finance costs in 20
Slide 33: Year Ended June 2017 – Summary Cashflow
YEAR ENDED 30 JUNE 2017 – SUMMARY CASHFLOW CASHFLOW STATEMENT US$’000 30 June 2017 30 June 2016 ▶ IPO proceeds (net of transaction and Net cash used in operating activities (844) (690) listing costs) amounted to US$7.4m Exploration spend (769) (583) ▶ US$1.7m of this was used to settle the Pala loan
Slide 34: Contact
CONTACT Martin Eales Rainbow Rare Earths 29 Lincoln’s Inn Fields London, WC2A 3EG info@rainbowrareearths.com T +44 (0) 20 3910 4550 Rainbow Rare Earths Ltd. | Corporate Presentation Q4 2017
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