Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (March 2024)
29 slides from Rainbow Rare Earths's investor presentation, March 2024
Slide 1: Unlocking Secondary Sources of Rare Earths
RAINBOW RARE EARTHS UNLOCKING SECONDARY SOURCES OF RARE EARTHS Investor Presentation March 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 PEA BASE CASE OCT 2022 USING SPOT PRICING1, 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 ASS
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: Good Returns Even in a Low Pricing Environment
GOOD RETURNS EVEN IN A LOW 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 increa
Slide 6: 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 7: 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 8: 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 9: 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 tonnage of Production of ca. 1,850t of Project life of Phalaborwa magnet rare • Resource comprises two stacks of ca. 35 Mt at 0.44% TREO1 NdPr, Dy, Tb annually ca. 16 years
Slide 10: Project Positioned in an Established Mining District
PROJECT POSITIONED IN AN ESTABLISHED MINING DISTRICT MAJORITY OF KEY INPUTS ACCOUNTED FOR ALREADY SKILLS & SUPPLIERS SULPHURIC ACID Front gate is 5km from Phalaborwa town PMC Copper Mine FUNDAMENTALLY DIFFERENT COST PROFILE Capex (US$) Opex1 (US$) 295.5 33.86 Phalaborwa POWER High voltage switch yar
Slide 11: Unique Position in the Rare Earth Magnet Supply Chain
UNIQUE POSITION IN THE RARE EARTH MAGNET SUPPLY CHAIN ON TRACK TO DELIVER SEPARATED RARE EARTH OXIDES OF ALL FOUR MAGNET REES Upstream Midstream Downstream Usually lengthy process with many stages Predominantly in China OXIDE TO END USE MAGNET COMPONENT MINING CONCENTRATION CRACKING SEPARATION METAL
Slide 12: Phalaborwa Expected to Be Highest Margin Rare Earth Project
PHALBAORWA EXPECTED TO BE HIGHEST MARGIN RARE EARTH PROJECT MUCH HIGHER GRADE THAN TYPICAL IONIC CLAY RARE EARTH PROJECTS WITH LOW LEVELS OF RADIOACTIVITY Project Style Owner TREO3 NdPr4 In-situ U5 ppm Th6 ppm % ppm REO US$/t1 Phalaborwa Gypsum stacks Rainbow Rare Earths 0.44% 1,277 182 2 47 Peer Gr
Slide 13: Responsible Production of Rare Earths
RESPONSIBLE PRODUCTION OF RARE EARTHS COULD THERE BE A PREMIUM FOR ‘GREEN’ SOURCES OF REOS? FOUNDED ON THE PRINCIPLES OF CIRCULARITY; RECOVERING RARE CREATING SOCIAL EARTHS FROM SECONDARY SOURCE VALUE BROWNFIELD REHABILITATION RECYCLING COMMUNITY Responsible production • Phalaborwa is on an industri
Slide 14: Economic Process Flowsheet
ECONOMIC PROCESS FLOWSHEET DEVELOPED AND OPTIMISED BASED ON TEST WORK Neutral Water Slurry Undersize Pre-Leach K-Tech Reclamation Screening Thickening & Neutralisation elements of the Filtration process Filtered Solids Neutralization Residue Phalaborwa Flow Sheet Effluent Amorphous Silica Continuous
Slide 15: 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 16: Pilot Plant Developments
PILOT PLANT DEVELOPMENTS ITERATIVE PROCESS THAT ALLOWS FOR CONTINUAL OPTIMISATION FRONT-END PILOT PLANT BACK-END PILOT PLANT TO PRODUCE MIXED RE CARBONATE TO PRODUCE SEPARATED RE OXIDES MINTEK – JOHANNESBURG, SA K-TECH – LAKELAND, FLORIDA, USA • Mintek is an acknowledged world-class mining Phalaborw
Slide 17: 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 • U.S. International Development Finance Corporation (DFC) US$50 million funding commitment (to
Slide 18: Timeline to Production
TIMELINE TO PRODUCTION DE-RISKS PHALABORWA PROJECT; UNLOCKS VALUE Q4 2022 Q1 2024 Phalaborwa Development Timeline DEFINITIVE PRODUCTION RESOURCE PERMITTING PEA PUBLISHED PILOT PLANT FEASIBILITY EXPECTED UPDATE UPDATED STUDY 20261 PROJECT NEXT STEPS SUPPORTED BY POSITIVE PEA PROGRESS • Workstreams un
Slide 19: 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 20: Uberaba Project: 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 21: 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 22: Appendix
RAINBOW RARE EARTHS APPENDIX
Slide 23: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BOARD SHAREHOLDINGS AND MAJOR SHAREHOLDERS (>3%) INFORMATION AS AT 10 MARCH 2024 Shareholder Holding as at 10 Mar 2024 Ticker Market Market Share Shares in Brokers cap price issue Adonis Pouroulis 14.0% BERENBERG RBW.L LSE US$87.2m 10.8p 630m / STIFEL TechMet 11.9% Append
Slide 24: Experienced 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 25: 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 26: Front-End Plant Progress
FRONT-END PLANT PROGRESS MANAGED BY MINTEK IN JOHANNESBURG Appendix 26 Rainbow Rare Earths Limited March 2024
Slide 27: Mixed Rare Earth Carbonate Successfully Produced at Pilot Plant
MIXED RARE EARTH CARBONATE SUCCESSFULLY PRODUCED AT FRONT-END PILOT PLANT 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 production of mixed rare earth
Slide 28: 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 Appendix Rainbow’s CIX/CIC Units Control software programming for the CIX (top) and CIC (bottom) units 28 Rainbow Rare Earths Limited March 2024
Slide 29: 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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