Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (February 2024)
22 slides from Rainbow Rare Earths's investor presentation, February 2024
Slide 1: Unlocking Secondary Sources of Rare Earths
RAINBOW RARE EARTHS UNLOCKING SECONDARY SOURCES OF RARE EARTHS 121 Presentation February 2024
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 CASE1,2 NPV10 US$627m CRITICAL MINERALS: Demand for rare earth elements (REEs) will rise significantly to meet decarbonisation; urgent need for non-China supply Investment opportunity IRR STRATEGIC ASSETS: Responsible rare earth produ
Slide 4: Highest Margin Global Rare Earth Development Project
HIGHEST MARGIN GLOBAL RARE EARTH DEVELOPMENT PROJECT DUE TO LOWER OPERATING AND COST PROFILE THAN TRADITIONAL MINING PROJECTS Argus Media analysis of expected operating margin per kg PHALABORWA HAS HIGHEST MARGIN DUE TO LOW of REO production based on 2022 average REO prices1 INHERENT COST BASE $/kg
Slide 5: Rare Earth Elements Essential for Global Decarbonisation
RARE EARTH ELEMENTS ESSENTIAL FOR GLOBAL DECARBONISATION Light Rare Earths CRITICAL BUILDING BLOCKS TO REACH NET ZERO • Rare earth elements (REEs) are a group of 17 elements – NdPr, Dy and Tb are used for permanent magnets and account for ca. 95% of global consumption by value1 Market Backdrop • Ess
Slide 6: Major Centralisation of Supply Chain Currently
MAJOR CENTRALISATION OF SUPPLY CHAIN CURRENTLY URGENT NEED TO DEVELOP DIVERSE AND ETHICAL SOURCES OF SUPPLY Geographical concentration of supply chain stages for sintered NdFeB magnets REE mine supply is currently 60-70% dominated by China ‘Heavy’ REE (Dy & Tb) mine supply is +90% dominated by China
Slide 7: Strong Leadership Team
STRONG LEADERSHIP TEAM WITH TRACK RECORD THROUGH PROJECT DEVELOPMENT TO PRODUCTION EXPERIENCED MANAGEMENT AND TECHNICAL TEAM TO DELIVER PHALABORWA AND PROJECT PIPELINE • CEO George Bennett established MDM Engineering which delivered Phalaborwa NPV10 multiple processing plants and feasibility studies
Slide 8: Recovery of Magnet Rare Earths from Phosphogypsum Stacks
RECOVERY OF MAGNET RARE EARTHS FROM PHOSPHOGYPSUM STACKS ONE OF THE LOWEST COST RARE EARTH PROJECTS IN DEVELOPMENT TODAY Total Resource1 of Production of ca. 1,850t of Project life of ca. • Resource comprises two stacks of phosphogypsum, the by- 30.4 Mt at 0.44% TREO NdPr, Dy, Tb annually 14 years p
Slide 9: Advantages of CIX / CIC Technology Over Traditional SX
ADVANTAGES OF CIX / CIC TECHNOLOGY OVER TRADITIONAL SX SIMPLIFIED PROCESS LEADING TO COST AND ENVIRONMENTAL BENEFITS Mineral Process Rainbow Process Mineral Ore Phosphogypsum Concentration Mining Leaching Crushing Rare Earths Precipitation Grinding CIX / CIC Benefits Flotation Cracking Acid Bake Aci
Slide 10: Unique Position in the Rare Earth Magnet Supply Chain
UNIQUE POSITION IN THE RARE EARTH MAGNET SUPPLY CHAIN ON TRACK TO DELIVER SEPARATED RARE EARTH OXIDES OF ALL FOUR MAGNET REES Upstream Midstream Downstream Usually lengthy process with many stages Predominantly in China OXIDE TO END USE MAGNET COMPONENT MINING CONCENTRATION CRACKING SEPARATION METAL
Slide 11: Preliminary Economic Assessment
PRELIMINARY ECONOMIC ASSESSMENT HIGHLIGHTED ROBUST ECONOMICS FOR THE PROJECT BASED ON SPOT PRICING AT OCTOBER 2022 PEA Base Case Parameters Units Value PHALABORWA MAGNET RARE EARTH OXIDE SUPPLY Treatment rate Mt/a 2.2 Production of NdPr, Dy, Tb t/a 1,848 NdPr production2 Phalaborwa Economics oxides
Slide 12: Strong Returns in Any Foreseeable Pricing Environment
STRONG RETURNS IN ANY FORESEEABLE PRICING ENVIRONMENT ROBUST ECONOMICS VS TRADITIONAL RARE EARTH MINING DEVELOPMENT PROJECTS • Sensitivity analyses demonstrate robust EBITDA operating • Strong supply / demand fundamentals support expectations margins in all pricing sensitivity scenarios of long-term
Slide 13: US Government to Invest US$50 Million via TechMet
US GOVERNMENT TO INVEST US$50 MILLION VIA TECHMET SIGNIFICANT DE-RISKING OF PHALABORWA FINANCING Strong US Government interest – option to invest US$50 million as part of the equity funding for Phalaborwa • DFC US$50 million funding commitment (to be invested via TechMet) announced at COP28 US Gover
Slide 14: 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 15: Timeline to Production
TIMELINE TO PRODUCTION DE-RISKS PHALABORWA PROJECT; UNLOCKS VALUE Q4 2022 Q1 2024 DEFINITIVE PRODUCTION RESOURCE PERMITTING PEA PUBLISHED PILOT PLANT FEASIBILITY EXPECTED UPDATE UPDATED Project Development STUDY 20261 PROJECT NEXT STEPS SUPPORTED BY POSITIVE PEA PROGRESS • Workstreams underway to de
Slide 16: Multi-Asset Rare Earth Development Company
MULTI-ASSET RARE EARTH DEVELOPMENT COMPANY DIVERSIFIED PORTFOLIO WITH SHORT TO LONGER TERM OPPORTUNITIES Global Footprint LCM – UK World-leader in the manufacture of alloys for permanent magnets - agreement to purchase separated rare earth oxides from Rainbow OCP - Morocco Back-end Pilot Plant – USA
Slide 17: MOU Signed with Mosaic in Brazil
MOU SIGNED WITH MOSAIC IN BRAZIL MAJOR OPPORTUNITY TO REPLICATE PHALABORWA UBERABA PHOSPHOGYPSUM STACK IN MINAS GERAIS INITIAL ASSAY RESULTS • Large phosphogypsum stack sitting at surface as a byproduct of phosphoric acid production TREO grade @ • Uberaba phosphate slurry feed is sourced from a hard
Slide 18: Why Rainbow?
WHY RAINBOW? DRIVING VALUE FROM STRATEGIC SECONDARY SOURCES OF RARE EARTHS PHALABORWA UPSIDE KEY TAKEAWAYS FORECAST1 • Phalaborwa offers unique benefits over traditional rare earth projects: NPV10 – Expected to be the highest margin rare earth project in development today US$1.0bn – Contains all fou
Slide 19: Appendix
RAINBOW RARE EARTHS APPENDIX
Slide 20: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BOARD SHAREHOLDINGS AND MAJOR SHAREHOLDERS (>3%) INFORMATION AS AT 24 JANUARY 2024 Shareholder Holding as at 24 Jan 2024 Ticker Market Market Share Shares in Brokers cap price issue Adonis Pouroulis 14.0% BERENBERG RBW.L LSE US$104.2m 13p 630m / STIFEL TechMet 11.9% Appen
Slide 21: Experience Board and Executive Management
EXPERIENCE BOARD AND EXECUTIVE MANAGEMENT EXTENSIVE EXPERIENCE ACROSS MINING, AFRICA, CAPITAL MARKETS, INTERNATIONAL AFFAIRS ADONIS POUROULIS GEORGE BENNETT NON-EXECUTIVE CHAIRMAN CEO • Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration • 25 years in finance and mana
Slide 22: Thank You
RAINBOW RARE EARTHS THANK YOU Contact: INVESTOR RELATIONS Cathy Malins Tel: +44 7876 796 629 Email: cathym@rainbowrareearths.com www.rainbowrareearths.com
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