Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Technical Presentation (January 2024)
32 slides from Rainbow Rare Earths's technical presentation, Jan 31, 2024
Slide 1: Phalaborwa Site Visit
RAINBOW RARE EARTHS Phalaborwa Site Visit The highest margin producer of separated rare earth oxides in development globally 31 January to 1 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: 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 4: 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 5: Importance of the 'Heavy' Rare Earths
IMPORTANCE OF THE ‘HEAVY’ RARE EARTHS SMALL BUT VITAL COMPONENTS OF PERMANENT MAGNETS THE IMPORTANCE OF DY AND TB SHORT TERM DOE CRITICALITY MATRIX • Enable performance under high temperatures • Improve energy density, increasing the power and size efficiency of the magnet Market Backdrop • By impro
Slide 6: Phalaborwa
RAINBOW RARE EARTHS Phalaborwa A near-term, strategic and low-cost supply of all four permanent magnet rare earths
Slide 7: 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 8: History of Phalaborwa
HISTORY OF PHALABORWA BASED IN AN ESTABLISHED MINING JURISDICTION Phosphoric acid plant taken over by December 2020: Sasol; REE Production of separated Rainbow reaches potential RE oxides at pilot plant Bosveld investigated binding agreement Publication of PEA investigated back-end in Florida REE po
Slide 9: JORC Compliant Mineral Resource Estimate
JORC COMPLIANT MINERAL RESOURCE ESTIMATE (MRE) UPDATE EXPECTED H1 2024 Contribution of TREO by oxide Grade • High value magnet rare earths Nd and PR represent 29% of % ppm TREO, with economic Tonnes TREO Nd Pr Dy Tb Other Th U quantities of Dy and Tb Mt % Stack A 20.2 0.43 23.4 5.6 1.0 0.3 69.7 50 2
Slide 10: Historical Metallurgical Test Work
HISTORICAL METALLURGICAL TEST WORK EXTENSIVE KNOWLEDGE BASE ON BEHAVIOUR OF PHALABORWA RARE EARTHS 1980’S: FEDMIS/SASOL REE TESTWORK BEGINS 2021: RAINBOW COMMENCES TESTWORK MINTEK, SOUTH AFRICA ANSTO, AUSTRALIA • Bench-scale work, followed by piloting • Three phases of test work • Focused on Evapora
Slide 11: Completed Metallurgical Test Work
COMPLETED METALLURGICAL TEST WORK EXPANDING AND OPTIMISING OF PROCESS FLOWSHEET 2021 – PRESENT: K-TECH, FLORIDA • Scoping of leach and fluorine removal • Cerium removal • REE separation and purification 2023 – PRESENT: MINTEK, SOUTH AFRICA • Leach optimisation Test Work • Fluorine ion exchange • Sil
Slide 12: Economic Process Flowsheet
ECONOMIC PROCESS FLOWSHEET DEVELOPED AND OPTIMISED BASED ON ONGOING TEST WORK Flow Sheet 12 Rainbow Rare Earths Limited Corporate Presentation - January 2024
Slide 13: Pilot Plant Schedule
PILOT PLANT SCHEDULE SPLIT INTO FOUR CAMPAIGNS Campaign 1: Mintek in Joburg – Completed 1. Feed phosphogypsum repulp wash 2. Site water neutralisation 3. Weak acid leach 4. Fluoride IX 5. Silica precipitation Pilot Plant Campaign 3: Mintek in Joburg – Ongoing Campaign 2: Mintek in Joburg – Completed
Slide 14: Pilot Plant - Mintek
PILOT PLANT - MINTEK Pilot Plant Sulphuric Acid Leach 1 Reactors 14 Rainbow Rare Earths Limited Corporate Presentation – January 2024
Slide 15: Pilot Plant - Mintek
PILOT PLANT - MINTEK Pilot Plant Fluorine Ion Exchange System 15 Rainbow Rare Earths Limited Corporate Presentation – January 2024
Slide 16: Pilot Plant - Mintek
PILOT PLANT - MINTEK Pilot Plant Sulphuric Acid Leach 2, two-stage counter-current leaching 16 Rainbow Rare Earths Limited Corporate Presentation – January 2024
Slide 17: Front-End Pilot Plant at Mintek in Johannesburg
FRONT-END PILOT PLANT AT MINTEK IN JOHANNESBURG SUCCESSFUL PRODUCTION OF MIXED RARE EARTH CARBONATE VALIDATES RAINBOW’S UNIQUE FLOW SHEET • Iterative plant process that allows for continual optimisation in order to deliver most efficient final flowsheet for commercial scale operations • Initial prod
Slide 18: Back-End Pilot Plant at K-Tech in Lakeland, Florida
BACK-END PILOT PLANT AT K-TECH IN LAKELAND, FLORIDA INITIAL SEPARATION RESULTS EXPECTED IN THE COMING WEEKS Pilot Plant Rainbow’s CIX/CIC Units Control software programming for the CIX (top) and CIC (bottom) units 18 Rainbow Rare Earths Limited Site Visit Presentation – January 2024
Slide 19: 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 Flotation Pilot Plant Cracking Acid Bake Acid Bake
Slide 20: 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 REE Supply Chain OXIDE TO END USE MAGNET COMPONENT MINING CONCENTRATION CRACKING
Slide 21: 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 22: 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 23: 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 prices 1 INHERENT COST BASE $/kg
Slide 24: Current Test Work
CURRENT TEST WORK PARALLEL DESIGN WORK IN SUPPORT AND PREPARATION OF DFS PARAGON, SOUTH AFRICA WATERLAB AND OTHERS, SOUTH AFRICA • Trial hydraulic reclamation • Water stream analyses ARDAMAN & ASSOCIATES, FLORIDA • Bleed and waste characterisation • Residue stacking • Environmental classification •
Slide 25: Environmental Studies
ENVIRONMENTAL STUDIES WSP GOLDER CONDUCTING ESIA ACCORDING TO IFC STANDARDS Workstreams for Environmental and SITE WATER RETICULATION Social Impact (ESIA) Analysis • Climate Analysis - completed • Flood Risk Assessment - completed Additional Studies • Baseline Assessment – completed • Water Quality
Slide 26: Responsible Production of Rare Earths
RESPONSIBLE PRODUCTION OF RARE EARTHS INTEGRATING STRONG ESG PRACTICES IN PHALABORWA’S DEVELOPMENT FOUNDED ON THE PRINCIPLES OF CIRCULARITY; RECOVERING RARE CREATING SOCIAL EARTHS FROM SECONDARY SOURCE VALUE BROWNFIELD REHABILITATION RECYCLING COMMUNITY • Phalaborwa is on an industrial • Rainbow wil
Slide 27: Original Site Layout Used in PEA
ORIGINAL SITE LAYOUT USED IN PEA ONGOING WORK TO OPTIMISE SITE LAYOUT AS PART OF DFS • Ongoing evaluation work to optimise site layout • Expectation to relocate process plant position • Expectation to relocate Site Layout Stack C position 27 Rainbow Rare Earths Limited Corporate Presentation – Janua
Slide 28: Rainbow Rare Earths Summary
RAINBOW RARE EARTHS Rainbow Rare Earths Summary Developing an independent and ethical supply chain of the rare earth elements driving the green energy transition
Slide 29: Multi-Asset Rare Earth Development Company
MULTI-ASSET RARE EARTH DEVELOPMENT COMPANY DIVERSIFIED PORTFOLIO WITH SHORT TO LONGER TERM OPPORTUNITIES Rainbow Overview LCM – UK World-leader in the manufacture of alloys for permanent magnets - agreement to purchase separated rare earth oxides from Rainbow Back-end Pilot Plant – USA OCP - Morocco
Slide 30: 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 31: 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 32: 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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