Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (February 2023)
24 slides from Rainbow Rare Earths's investor presentation, February 2023
Slide 1: Driving Decarbonisation: Unlocking Secondary Sources of Rare Earths
RAINBOW RARE EARTHS DRIVING DECARBONISATION: UNLOCKING SECONDARY SOURCES OF RARE EARTHS FEBRUARY 2023
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: Unique Investment Opportunity
RAINBOW RARE EARTHS UNIQUE INVESTMENT OPPORTUNITY PHALABORWA BASE CASE1 NPV10 US$627m STRATEGIC ASSET: Near-term rare earths production from a secondary source Investment opportunity IRR DE-RISKED: PEA demonstrates strong returns in all pricing scenarios and low 40% capital intensity (US$295.5m) EBI
Slide 4: Strong Leadership Team
STRONG LEADERSHIP TEAM WITH TRACK RECORD THROUGH PROJECT DEVELOPMENT TO PRODUCTION EXPERIENCED MANAGEMENT AND TECHNICAL TEAM • CEO, George Bennett, and Technical Director, Dave Dodd, established MDM Engineering; delivered Phalaborwa NPV10 Strong leadership team – >100 feasibility studies – >80 mine
Slide 5: Rare Earth Elements Essential for Global Decarbonisation
RARE EARTH ELEMENTS ESSENTIAL FOR GLOBAL DECARBONISATION CRITICAL BUILDING BLOCKS TO REACH NET ZERO • Rare earths (RE) are a group of 17 elements • Essential in permanent magnets for EVs and wind turbines, Neodymium (Nd) and Praseodymium (Pr), with Dysprosium (Dy) and Terbium (Tb) are economically i
Slide 6: Long Term Supply Deficit Expected for Rare Earths
LONG TERM SUPPLY DEFICIT EXPECTED FOR RARE EARTHS DRIVING STRENGTHENING RARE EARTH PRICES FORECAST RARE EARTH SUPPLY DEFICIT / PHALABORWA PRICE1 26kt Rare earth 120 Magnet rare earth 2026: expected 400 supply prices grew supply will need to Phalaborwa production deficit strongly in grow by 8% per 35
Slide 7: Creating a Responsible, Western, Independent Supply Chain
CREATING A RESPONSIBLE, WESTERN, INDEPENDENT SUPPLY CHAIN URGENCY MOUNTING TO MEET GROWING DEMAND SUPPLY DEFICIT IS LIKELY DUE TO TRADITIONAL RARE “THE MIDDLE EAST HAS OIL; EARTHS MINING CHALLENGES: CHINA HAS RARE EARTHS.” • Many development projects have complex challenges to overcome including low
Slide 8: Rainbow's Position in the Rare Earth Magnet Supply Chain
RAINBOW’S POSITION IN THE RARE EARTH MAGNET SUPPLY CHAIN UNDELINES PHALABORWA’S UNIQUE ADVANTAGE Upstream Midstream Downstream Usually lengthy process with many stages Predominantly in China Value chain OXIDE TO END USE MAGNET COMPONENT MINING CONCENTRATION CRACKING SEPARATION METAL AND MANUFACTURE
Slide 9: Phalaborwa: Exciting, Near-Term Growth Opportunity
PHALABORWA: EXCITING, NEAR-TERM GROWTH OPPORTUNITY DELIVERY OF SEPARATED MAGNET RARE EARTH OXIDES ON SINGLE SITE FROM HISTORIC GYPSUM STACKS RAINBOW IS EARNING A 70% INTEREST IN PHALABORWA • Project is largely permitted and positioned in an established mining town, with: – associated skilled labour
Slide 10: Responsible Production of Rare Earths
RESPONSIBLE PRODUCTION OF RARE EARTHS INTEGRATING STRONG ENVIRONMENTAL AND SOCIAL PRACTICES IN PHALABORWA’S DEVELOPMENT FOUNDED ON THE PRINCIPLES OF CIRCULARITY; RECOVERING RARE CREATING SOCIAL EARTHS FROM SECONDARY SOURCE VALUE BROWNFIELD REHABILITATION RECYCLING COMMUNITY Responsible production •
Slide 11: Strong Progress to Date
STRONG PROGRESS TO DATE DE-RISKS PHALABORWA PROJECT; UNLOCKS VALUE Q4 2022 Q1 2023 DEFINITIVE PRODUCTION TEAM PEA RESOURCE PILOT PERMITTING FEASIBILITY EXPECTED STRENGTHENED PUBLISHED UPDATE PLANT UPDATED Progress and next steps STUDY 20261 STRONG PROGRESS NEXT STEPS SUPPORTED BY POSITIVE PEA • PEA
Slide 12: Rainbow's Business Model
RAINBOW’S BUSINESS MODEL DELIVERING NEAR-TERM RARE EARTHS PRODUCTION LEVERAGING IP AND PORTFOLIO FOR LONG TERM GROWTH • Strategic focus on recovering rare earth oxides from secondary sources to support global decarbonisation Business model • IP and expertise in recovering rare earths from phosphogyp
Slide 13: Uniquely Positioned in a Growing Market
RAINBOW RARE EARTHS UNIQUELY POSITIONED IN A GROWING MARKET Listed on LSE: RBW Institutional support Strong strategic institutional Patenting IP rights relating to the shareholder support and recovery of rare earths from Pipeline for significant Board holdings phosphogypsum, unlocking growth further
Slide 14: Why Rainbow?
WHY RAINBOW? DRIVING VALUE FROM STRATEGIC SECONDARY SOURCES OF RARE EARTHS PHALABORWA FORECAST1 NPV10 US$1.0b IRR 44% Summary EBITDA US$320m Margin2 83% 1. Based on the long-term price forecasts received from Argus, with the first year of production assumed to occur in 2026 and 14 Rainbow Rare Earth
Slide 15: 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
Slide 16: Experienced Board and Executive Management
EXPERIENCED BOARD AND EXECUTIVE MANAGEMENT ADONIS POUROULIS GEORGE BENNETT NON-EXECUTIVE CHAIRMAN CEO • Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration • 25 years in finance and management, including as partner in stockbroking/advisory firms in SA and development
Slide 17: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BOARD SHAREHOLDINGS AND MAJOR SHAREHOLDERS (>3%) Shareholder Holding Ticker Market Market Share Shares in Brokers cap price issue Adonis Pouroulis 14.5% SP ANGEL RBW.L LSE £70m 13p 526m George Bennett 6.8% BERENBERG Robert Kampf 5.5% Appendices Praesidium Capital Manageme
Slide 18: A Strategic Source of Rare Earths for a Growing Market
RAINBOW RARE EARTHS A STRATEGIC SOURCE OF RARE EARTHS FOR A GROWING MARKET DRIVING VALUE THROUGH STRONG PORTFOLIO UNDERPINNED BY UNIQUE INTELLECTUAL PROPERTY • Flagship asset at Phalaborwa, South Africa: – PEA substantially de-risks project – Exceptionally strong economics in all foreseeable pricing
Slide 19: Accelerating Global Demand for Rare Earths: Offshore Wind
ACCELERATING GLOBAL DEMAND FOR RARE EARTHS A 3MW OFFSHORE WIND TURBINE REQUIRES ~2T OF PERMANENT MAGNETS1 OFFSHORE WIND POWER CAPACITY ADDITIONS (GW) 40GW of new off- Offshore wind shore wind in 2030 turbine market is will require 26kt of forecast to grow at rare earth magnets 25% per annum from 202
Slide 20: Accelerating Global Demand for Rare Earths: EVs
ACCELERATING GLOBAL DEMAND FOR RARE EARTHS THE AVERAGE HYBRID OR EV USES 2-5KG OF RARE EARTH MAGNETS1 RISING EV SALES FORECASTS EV market is 25 million EVs in expected to grow 2030 will require ~87kt of rare earth by 27% per annum magnets from 2020 to 20301 Market By 2040 45% of the global vehicle f
Slide 21: Phalaborwa Preliminary Economic Assessment
PHALABORWA PRELIMINARY ECONOMIC ASSESSMENT EXPECTED TO BE THE LOWEST COST PRODUCER OF SEPARATED MAGNET RARE EARTH OXIDES STRONG ECONOMIC RETURNS FROM PEA BASE CASE1 YTD AVERAGE PRICES2 • October 2022 PEA demonstrated the low-cost nature of the Phalaborwa development NPV103 NPV10 • Base case model de
Slide 22: Phalaborwa Block Flow Diagram
PHALABORWA BLOCK FLOW DIAGRAM UNIQUE PROCESS DEVELOPED BY RAINBOW AND K-TECH HYDRAULIC PRE-LEACH PRETREATMENT PRETREATMENT RARE EARTH RE LEACH NEW PG STACK RECLAMATION DEWATERING PROCESS DEWATERING LEACH DEWATERING Benign gypsum Appendices deposited IMPURITIES RAPID REMOVAL CONSOLIDATION on new dry
Slide 23: Phalaborwa Resource Confirms High Value Project
PHALBAORWA RESOURCE CONFIRMS HIGH VALUE PROJECT MUCH HIGHER GRADE THAN TYPICAL IONIC CLAY RARE EARTH PROJECTS WITH LOW LEVELS OF RADIOACTIVITY Project Style Owner TREO3 NdPr4 In-situ U5 ppm Th6 ppm % ppm REO US$/t1 Phalaborwa1 Gypsum stacks Rainbow Rare Earths 0.431% 1,257 181 2 48 La Paz2 Ionic Cla
Slide 24: Gakara: High-Grade Rare Earth Mineral Concentrate
GAKARA: HIGH-GRADE RARE EARTH MINERAL CONCENTRATE FROM LARGE MINERALISED SYSTEM IN BURUNDI PRE-2020 • 39km2 mining permit hosting large scale mineralised system • Exploration target provides opportunity for 262,000 -375,000t of high-grade vein hosted mineralisation grading 7.0% - 12.0% TREO plus 252
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