Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (December 2020)
25 slides from Rainbow Rare Earths's investor presentation, December 2020
Slide 1: Rainbow Rare Earths Limited – NdPr: Powering the Green Revolution
RAINBOW RARE EARTHS LIMITED NdPr: Powering the Green Revolution Date: December 2020 1
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: Rainbow Rare Earths Overview
RAINBOW RARE EARTHS OVERVIEW ▪ Rare Earths Metals are critical to the needs of our changing world with strong demand growth anticipated from the green revolution ▪ Rainbow Rare Earths has two major opportunities: ▪ The Gakara Project in Burundi, currently producing a high- grade rare-earth concentra
Slide 4: The Rise of Rare Earths
THE RISE OF RARE EARTHS RARE EARTHS ARE CRITICAL TO THE NEEDS OF THE GREEN REVOLUTION TAKING PLACE IN THE WORLD TODAY Key drivers of demand for Rare Earth Minerals are: ▪ Technological progress ▪ Environment/climate change ▪ Pollution/health ▪ Energy security ▪ Energy efficiency Neodymium and Praseo
Slide 5: Electric Vehicles – Huge Growth Anticipated
E L E C T R I C V E H I C L E S – H U G E G R O W T H A N T I C I PAT E D ELECTRIC VEHICLE USE IS SET TO ACCELERATE OVER THE NEXT 20 YEARS ▪ Global automakers have announced over US$300bn to be invested in EV production ▪ Each new EV requires between 1-2kg of NdPr ▪ Growth in EV production alone for
Slide 6: Wind Turbines – A Major Consumer of RE Magnets
WIND TURBINES – A MAJOR CONSUMER OF RE MAGNETS MOST EFFICIENT WIND TURBINES USE CONSIDERABLE AMOUNTS OF RARE EARTHS ▪ A 3MW direct drive turbine consumes close to 2 tonnes of rare earths permanent magnet compared to c. 2kg for a standard Electric Vehicle ▪ The wind turbine market is expected to acco
Slide 7: Rare Earths – A Strategic Imperative
R A R E E A R T H S – A S T R AT E G I C I M P E R AT I V E RARE EARTHS ARE CRITICAL TO KEY ECONOMIC AND MILITARY APPLICATIONS ▪ China dominates RE production globally having taken over from US in the mid 1980’s ▪ Covid-19 has created a global focus on supply chain dominance by China ▪ Western Gover
Slide 8: Gakara Project
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Slide 9: Gakara Project Overview
GAKARA PROJECT OVERVIEW PRODUCING HIGH-GRADE RARE EARTH CONCENTRATE FROM THE ONLY AFRICAN RARE EARTHS MINE IN PRODUCTION ▪ Located just south of Bujumbura, Burundi (East Africa) ▪ Large mining permit – 39km2 with over 1,500 occurrences of RE discovered in outcrop on surface demonstrating large scale
Slide 10: Gakara Deposit – a mix of Breccia and high-grade veins
GAKARA DEPOSIT - a mix of Breccia and high -grade veins Breccia style Stockwork style high grade mineralisation suitable for veins suitable for selective open pit mining and bulk open pit or underground processing mining Source: PhD thesis, University of Rennes, December 2019 10
Slide 11: New Understanding of Geological Structure
N E W U N D E R S TA N D I N G O F G E O L O G I C A L S T R U C T U R E ▪ Structural re-evaluation recently completed by TECT combining geophysical data with comprehensive mapping database accumulated over several years ▪ Three large carbonatites identified, believed to be the source of mineralisat
Slide 12: Gakara JORC (2012) Exploration Target
G A K A R A J O R C ( 2 0 1 2 ) E X P L O R AT I O N TA R G E T EXPLORATION TARGET ANNOUNCED OCTOBER 2020 DEFINED CLEAR STRATEGY FOR MODULAR DEVELOPMENT TARGETING 10,000-20,000 TONNES PER ANNUM OR RARE EARTH CONCENTRATE PRODUCTION Lower estimate Upper estimate Tonnes TREO % Tonnes TREO % Vein Hosted
Slide 13: JORC Exploration Targets from Across the Licence
J O R C E X P L O R AT I O N TA R G E T S F R O M A C R O S S T H E L I C E N C E Murambi South – Currently being trial mined by Rainbow. Production data and vein mapping data have Gasagwe – Trial mined by Rainbow between delivered the following updated target tonnage: 36kt- 2017–2019 producing 1,20
Slide 14: Road Map – Executing on our long-term plan at Gakara
ROAD MAP – Executing on our long-term plan at Gakara Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Status Current status 2021-22 2022 2023 2024+ • Trial mining proof of • Upgrade Gakara JORC • Grow JORC resource • Build commercial scale • Establish downstream concept at Gakara Project exploration target t
Slide 15: Gakara: Simple Development Opportunity
GAKARA: SIMPLE DEVELOPMENT OPPORTUNITY Existing pilot plant demonstrates simple 1 processing route 2 Crushing and gravity separation with no reagents required 3 Low levels of radioactive elements in underlying ore body 4 High grade concentrate produced c. 54% TREO of which c.19.5% NdPr 15
Slide 16: Downstream Processing and Separation
D O W N S T R E A M P R O C E S S I N G A N D S E PA R AT I O N POTENTIAL TO INCREASE REVENUE AND PROFITABILITY SIGNIFICANTLY • Rainbow takes a ~70% discount on sales to the published RE oxide prices • Further processing of concentrate will reduce this significantly 1 • SGS scoping study for a 5,000
Slide 17: Phalaborwa Earn-in
P H AL AB O RWA E AR N - I N Image: Phalaborwa Gypsum Stack 17
Slide 18: Phalaborwa – Exciting Opportunity from Gypsum Dumps
P H AL O B O RWA – E X C I T I N G O P P O R T U N I T Y F R O M G Y P S U M D U M P S ▪ Existing Gypsum stacks resulting from mining and processing of phosphate rock over 50+ years in South Africa ▪ c.35Mt in stacks which initial grab sample assays indicate hold c.210,000 tonnes rare earth oxides a
Slide 19: Phalaborwa – Earn-in Agreement
P H AL O B O RWA – E A R N I N A G R E E M E N T ▪ Earn-in agreement signed with Bosveld Phosphates ▪ US$750k consideration for earn-in payable in three tranches in cash and shares over a period of 12 months ▪ Initial US$250k payable in cash on completion of initial confirmatory due diligence proces
Slide 20: Summary
SUMMARY RAINBOW – A STRATEGIC SOURCE OF RARE EARTH MINERALS FOR A GROWING MARKET ▪ Rainbow has both project and country risk diversification from two potentially world-class scalable projects in Burundi and South Africa ▪ Huge growth in demand expected for NdPr to power the green revolution ▪ Growin
Slide 21: Appendices
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Slide 22: Board
BOARD ADONIS POUROULIS GEORGE BENNETT NON-EXECUTIVE CHAIRMAN CEO • Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration and development • 25 years in finance and management, including as partner of natural resources across Africa including in stockbroking/advisory firm
Slide 23: Rainbow Executive Management
RAINBOW EXECUTIVE MANAGEMENT GEORGE BENNETT PROF. GILBERT MIDENDE CEO CHARGE D’AFFAIRS - BURUNDI • 25 years in finance and management, including as • Former Minister of Energy and Mines of Burundi, twice . partner in stockbroking/advisory firms in SA • Former Minister of Higher Education and Scienti
Slide 24: Key Data
K E Y D ATA SHARES TICKER MARKET MARKET CAP SHARE PRICE BROKERS IN ISSUE RBW.L LSE £46.0m 9.90p 465m SP ANGEL As at 30 November 2020 BOARD AND MANAGEMENT SHARE PRICE SHAREHOLDER HOLDING Adonis Pouroulis* 16.5% George Bennett* 7.5% Shawn McCormick* 2.0% Alexander Lowrie 1.2% Robert Sinclair 1.1% Atul
Slide 25: Thank you
Thank you Contact me: George Bennett Pete Gardner CEO: Rainbow CFO: Rainbow SA Mobile: +27 82 652 8526 UK Mobile: +44 771 779 4251 Office Number: + 27 11 996 3500 Skype: George.bennett729 Skype: petegardner73 Email: georgeb@Rainbowrareearths.com Email: peteg@rainbowrareearths.com 25
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