Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (September 2017)
33 slides from Rainbow Rare Earths's investor presentation, Sep 5, 2017
Slide 1: Investor Presentation Q2 2017
INVESTOR PRESENTATION Q2 2017 DEVELOPING ONE OF THE WORLD’S RICHEST RARE EARTH DEPOSITS: NEAR TERM, LOW COST PRODUCTION
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 Low risk and low cost world’s highest grade mining and processing rare earth projects routes selected Fully permitted pr
Slide 4: Key Data
KEY DATA SHARES TICKER MARKET MARKET CAP SHARE PRICE JOINT BROKERS IN ISSUE HANNAM & PARTNERS RBW.L LSE £22.68m 14.5p 154.62m - DANIEL STEWART As at 05.05.17 SHARE PRICE GRAPH SIGNIFICANT SHAREHOLDERS SHAREHOLDER HOLDING Adonis Pouroulis 28.83% Other Board & 7.05% Management Malinova Holdings LLC 5.
Slide 5: 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 ▶ Magnetism, high thermal and electrical Consumption 2008-16 conductivity, luminosity, and catalytic action Global Rare Earth ▶ Market currently driven by increasing demand
Slide 6: The Technology Metals
THE “TECHNOLOGY METALS” NDPR REPRESENT THE MOST SIGNIFICANT PLAYERS IN THE LANTHANIDE GROUP BY VALUE Electric vehicles: 100 Glass additives % Value of Rare Earth Applications Magnet Rare Earths are critical in these Forecast demand growth for NdPr is primarily key booming markets amongst others 80 P
Slide 7: Board & Management Team
BOARD & MANAGEMENT TEAM TECHNICALLY, OPERATIONALLY AND FINANCIALLY PROVEN IN MINE DEVELOPMENT IN AFRICA Adonis Pouroulis • Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration and development of Non-Executive natural resources across Africa including diamonds, precious
Slide 8: Burundi
BURUNDI SUPPORTIVE INVESTMENT CLIMATE WITH BURUNDI ACTIVELY SEEKING FOREIGN INVESTMENT ▶ Mining is a priority sector for Burundi with the potential to create jobs, overseas investment and foreign currency income ▶ Rainbow has been active in the country for over five years and experienced no impact f
Slide 9: The Gakara Rare Earths Project
THE GAKARA RARE EARTHS PROJECT 7 8 Source: Company photo of Masenga & Northern Extension Area
Slide 10: Project Overview
PROJECT OVERVIEW NEAR TERM PRODUCTION FROM HIGH-GRADE RARE EARTH MINE Key Facts Location 45km by road from Bujumbura, Burundi’s capital city Interest 90% with a non-dilutable 10% owned by the Republic of Burundi Mining Licence Granted March 2015; valid for 25 years and renewable thereafter Infrastru
Slide 11: 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 ▶ Veins will be extracted by manual mining from the free-digging host rock ▶ Distribution agreement in place with ▶ Numerous and exte
Slide 12: The Deposit
THE DEPOSIT HIGH GRADE EXTENSIVE INVENTORY ▶ 798 occurrences of high-grade vein material have been identified to date: ▶ 387 established as in-situ veins (the rest are transported material) ▶ Only those veins exposed at surface have been included ▶ Independent Consultant MSA has calculated an Explor
Slide 13: Development Chronology: historical mining
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 14: Development Chronology: Rainbow development
DEVELOPMENT CHRONOLOGY DEFINED DEVELOPMENT PROGRAMME TRANSLATED INTO A MINING-READY ASSET RAINBOW DEVELOPMENT Completion of initial Mining Mining Start of internal exploration work Licence licence production 2013 Application 2015 awarded study thyssenkrupp 2011 2014 Exploration offake Private equity
Slide 15: Fully inducted, trained and equipped staff
14 Source: Company photo of fully inducted, trained and equipped staff
Slide 16: Rainbow Progress in 2017
RAINBOW PROGRESS IN 2017 ACTIVITY HAS NOW COMMENCED ON THE GROUND AT GAKARA AHEAD OF TRIAL MINING Primary focus: haulage & Local labour force EPCM contract signed for access road construction & Extraction of run-of-mine recruited on site Gakara processing plant basic infrastructure for ore to commen
Slide 17: Gakara Project: Licence Areas
GAKARA PROJECT: LICENCE AREAS CONCEPTUAL MINE PLAN DEVELOPED FOR TRIAL MINING AND BEYOND Mine Areas Trial Mining GASAGWE & GASHIRWE WEST (Years 1 & 2): 16
Slide 18: Recent work by Rainbow
Recent work by Rainbow includes detailed mapping of two localities, mineralogical and gravity separation test work, hydrometallurgical studies, design of a processing plant and a conceptual mining study based on a trial bench mining exercise at two localities within the Mining Licence, namely Gasagw
Slide 19: Gakara Project: Gasagwe
GAKARA PROJECT: GASAGWE COMPETENT PERSON’S REPORT CONFIRMS EXPLORATION TARGET AND TRIAL MINING APPROACH ▶ First 22 months: Planned production from Gasagwe totalling 3,338 tonnes of ore for 2,503 tonnes concentrate ▶ Manual bench mining of 1 metre ‘steps’ to expose veins ▶ Backhoe-trailer combination
Slide 20: Gakara Project: Gashirwe West
GAKARA PROJECT: GASHIRWE WEST GASHIRWE WEST, THE SECOND DEPOSIT TO BE MINED, IS SITUATED IN THE CENTRAL NW PART OF THE MINING LICENCE Example of adit ▶ Planned production from Gashirwe West commencing from month 13, according to MSA trial mining plan ▶ Trial mining to extract first 1,933 tonnes of o
Slide 21: Gakara Project: Trial Mining Schedule
GAKARA PROJECT: TRIAL MINING SCHEDULE TRIAL MINING PLAN INTENDED TO MINE C.5,300T OF ORE AND PRODUCE C.3,900T OF CONCENTRATE FOR SALE 800 Management intend to ramp-up production to RAMP-UP PRODUCTION 700 Ore stockpiled >5,000 tpa (420 tpm) pending assuming successful 600 completion of completion of
Slide 22: Ore Processing
ORE PROCESSING SIMPLE, CHEMICAL-FREE PROCESSING TO PRODUCE HIGH-GRADE CONCENTRATE ▶ Rainbow in-house processing test work (Q4 2015) ▶ Typical RoM samples tested at a pilot plant and in lab by Metanza Tailings to be reprocessed at end of mining ▶ Process plant will have 10tph Rainbow test processing
Slide 23: Gakara Basket
GAKARA BASKET ORE VALUE STRONGLY WEIGHTED TOWARDS MAGNET RARE EARTHS Gakara Basket Magnet Rare Earths Based on average grades of REOs within Gakara in situ vein samples and market prices of purified 2% ▶ Magnets REEs: Magnets containing neodymium 16% and praseodymium are the strongest 31% commercial
Slide 24: 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 25: Project Economics
PROJECT ECONOMICS LOW CAPEX AND OPERATING COSTS Operating Cost Summary ON-SITE OPERATING COSTS1 US$103,000/month OPEX1 US$810/t (per tonne of concentrate produced in the first year) TRANSPORT, MARKETING AND ROYALTY COSTS2 US$280/t Estimated Capital Expenditure Summary Plant US$1.5 million Earthmovin
Slide 26: Peer Comparison
PEER COMPARISON RAINBOW EMERGES AS THE LOWEST CAPEX RARE EARTHS COMPANY WITH THE FASTEST ROUTE TO PRODUCTION Quest Rare Minerals Production 2019 Avalon Advanced Materials Production 2017 Alkane Resources Production 2018 Peak Resources Production 2018-19 Hastings Technology Metals Production 2019 Cap
Slide 27: Development Schedule
DEVELOPMENT SCHEDULE DEFINED DEVELOPMENT PLAN TO MAXIMISE PRODUCTION POTENTIAL AND BUILD VALUE TRIAL MINING RESULTS OF POTENTIAL FUTURE PRODUCTION Start of trial Assessment Opening of Opportunities to further Process plant increase production mining completion of trial new mine mining areas within a
Slide 28: Future Strategy
FUTURE STRATEGY NUMEROUS OPTIONS TO DRIVE FUTURE VALUE FOR SHAREHOLDERS ASSUMING SUCCESS OF TRIAL MINING 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 Capt
Slide 29: Key Strengths
KEY STRENGTHS High grade Near-term trial mining & production Attractive rare earth mix Low capex operation Simple processing route Fully permitted Trial mine design complete Distribution partner established Supportive government Team to deliver Resource security dynamic 28
Slide 30: Contact
CONTACT Martin Eales Rainbow Rare Earths 52–53 Conduit Street London, W1S 2YX info@rainbowrareearths.com T +44 (0) 20 7494 8206 29
Slide 31: 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 32: 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 33: 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
Rainbow Rare Earths — Investor Presentation (September 2017) on 6ix