Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (November 2018)
26 slides from Rainbow Rare Earths's investor presentation, November 2018
Slide 1: One of the World's Richest Producing Rare Earth Deposits
ONE OF THE WORLD’S RICHEST PRODUCING RARE EARTH DEPOSITS LOW COST PRODUCTION IN EAST AFRICA NOVEMBER 2018
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: Achievements So Far
ACHIEVEMENTS SO FAR Most of the key challenges have been addressed in the first 18 months of operations Develop first Recruit and Build Complete Secure access Embed safe Commence Export area for mining train local processing sales to cash to sales practices mining concentrate (Gasagwe) workforce pla
Slide 4: Strong Fundamentals
STRONG FUNDAMENTALS The fundamentals of the Gakara project remain strong – notwithstanding short term operational challenges Grade Asset in production Low-capex asset At TREO of 47-67%, Gakara is by Only producing mine in Africa, one Brought into production for far the highest-grade mine in the of o
Slide 5: Operations Update: Q1 2018-2019
OPERATIONS UPDATE: Q1 2018-2019 INCREASE IN EXPORTED TONNES AND TOTAL ORE MINED FROM GASAGWE 400 350 300 Concentrate tonnes exported up 27% QoQ to 350t Tonnes exported ▶ 250 ▶ Sales for the quarter were maintained at 350t 200 150 ▶ Average grade increased to 59%TREO from 55% 100 50 TREO in previous
Slide 6: Fundamental Growth and Value Strategy
FUNDAMENTAL GROWTH AND VALUE STRATEGY THREE ELEMENTS: NEAR-TERM PRODUCTION; RESOURCE GROWTH; AND DOWNSTREAM EXPANSION Develop separation capability Investigate separation capability for Gakara 3 ▶ concentrate with feasibility study to be Develop downstream completed with additional funding from Tech
Slide 7: The Gakara Rare Earths Project
THE GAKARA RARE EARTHS PROJECT Rainbow Rare Earths Ltd. 6
Slide 8: Gasagwe & Murambi Mining Areas
GASAGWE & MURAMBI MINING AREAS GASAGWE First operational mining area ▶ Small mechanical fleet strips overburden ▶ Manual extraction of high grade vein material ▶ Consistent high grade ore has supplied all of Rainbow’s production to date although veins can be unpredictable MURAMBI Rainbow’s next mini
Slide 9: Aerial View of Murambi Mining Area
ARIEL VIEW OF MURAMBI MINING AREA Rainbow Rare Earths Ltd. 8
Slide 10: Kabezi Processing Plant
KABEZI PROCESSING PLANT A SIMPLE EFFICIENT GRAVITY SEPARATION PROCESSING FACILITY Fully operational Capacity Located next to First tonnes and available to asphalt road successfully commissioned increase providing ease of exported in production access for December 2017 throughput container trucks wit
Slide 11: Concentrate Production
CONCENTRATE PRODUCTION RAINBOW’S PLANT FULLY COMMISSIONED AND HANDED OVER MARCH 2018 ► Rainbow processing plant located c. 13km south of Bujumbura at Kabezi and approximately 20km from mining areas ► Loading, sealing and sampling process working efficiently with Govt of Burundi officials prior to ex
Slide 12: Rainbow – Sales and Marketing
RAINBOW – SALES AND MARKETING ORE VALUE STRONGLY WEIGHTED TOWARDS MAGNET RARE EARTHS Basket composition Value in Nd and Pr Based on average grades of REOs within Gasagwe in situ vein samples and market prices of 2% ► Gasagwe: Based on average samples, magnet 15% REEs account for approximately 19% of
Slide 13: Cooperation Agreement with TechMet
COOPERATION AGREEMENT WITH TECHMET DEAL ENABLES RAPID ACCELERATION OF DOWNSTREAM BUSINESS INVESTIGATION ▶ JV agreement whereby TechMet will fund up to US$3m for a full Definitive Feasibility Study (“DFS”) for a downstream rare earth separation business, with the aim of processing Rainbow’s high Tech
Slide 14: Exploration Success
EXPLORATION SUCCESS Over 1,000 instances of rare earth mineralisation have been discovered over an area of 39 km2, which points to a potentially world-class rare earth deposit, particularly in view of the exceptional grades. Company photo of Kiyenzi (left) and Gasagwe (right) Rainbow Rare Earths Ltd
Slide 15: Kiyenzi Discovery – 2018
KIYENZI DISCOVERY – 2018 PRIORITY TARGET FROM PHASE 1 DRILLING CAMPAIGN REVEALS NEW REE MINERALISATION ► Significant REE mineralisation encountered in five out of ten diamond drill holes at the Kiyenzi target as announced 27 June 2018 (see table below) ► Intersections range from a few centimetres to
Slide 16: Peer Comparison
PEER COMPARISON RAINBOW HAS ACHIEVED PRODUCTION FOR A FRACTION OF THE COST OF OTHER PROJECTS RBW Rainbow Rare Earths Total raised since 2005 (US$ millions) MKA Mkango Resources PEK Peak Resources HAS Hastings Technology Metals NTU Northern Minerals GGG Greenland Minerals AVL Avalon Advanced Material
Slide 17: 24 Month Objectives
24 MONTH OBJECTIVES NEAR-TERM OPTIONS INTENDED TO DRIVE VALUE FOR SHAREHOLDERS FOLLOWING INITIAL SUCCESS Target maiden Targeting Expanded Progressive Completion of code near-term exploration increases in DFS for compliant positive strategy and production downstream Resource by EBITDA drilling from n
Slide 18: Key Strengths
KEY STRENGTHS Delivered on production & sales in 11 months Highest grade globally: 47-67% TREO The only African REE producer Attractive rare earth mix Low capex operation Simple processing route Fully permitted Supportive government Distribution partner established EV transformational demand drive T
Slide 19: Contact
CONTACT Martin Eales Rainbow Rare Earths 29 Lincoln’s Inn Fields London, WC2A 3EG info@rainbowrareearths.com T +44 (0) 20 3910 4550 Rainbow Rare Earths Ltd. 18
Slide 20: Key Data
KEY DATA SHARES TICKER MARKET MARKET CAP SHARE PRICE BROKERS IN ISSUE RBW.L LSE £8.8m 4.675p 187.1m ARDEN PARTNERS As at 31.10.18 SIGNIFICANT SHAREHOLDERS OTHER SIGNIFICANT SHAREHOLDERS SHAREHOLDER HOLDING SHAREHOLDER HOLDING Miton Asset Management* 4.58% Adonis Pouroulis 25.46% Shawn McCormick 4.55
Slide 21: Gakara Project Overview
GAKARA PROJECT OVERVIEW PRODUCTION OF HIGH-GRADE RARE EARTH CONCENTRATE FROM THE ONLY PRODUCING RARE EARTHS MINE IN AFRICA Key Facts Location Processing Mining Areas: 35km by road from Simple efficient gravity separation Bujumbura, Burundi’s capital city processing facility Processing Plant: 13km So
Slide 22: Rare Earths: Gakara Is One of the Only Few Producers Outside China
RARE EARTHS GAKARA IS ONE OF THE ONLY FEW RARE EARTH PRODUCERS OUTSIDE OF CHINA Rare Earth production – 2017 ► China remains the global leader in the production China-based of both mined rare earth products and refined production rare earth compounds, with Chinese production 86% Non-Chinese accounti
Slide 23: The "Technology Metals"
THE “TECHNOLOGY METALS” ND & PR REPRESENT THE MOST SIGNIFICANT ELEMENTS IN THE LANTHANIDE GROUP BY VALUE Magnet Rare Earths are critical in these key booming markets amongst others Electric vehicles: Smart phones : Wind turbines: Forecast demand growth for NdPr is Neodymium gives your phone the NdFe
Slide 24: 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 25: 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 26: Electric Vehicle Revolution
ELECTRIC VEHICLE REVOLUTION 2017 MARKED LANDMARK COMMITMENTS FROM AUTOMAKERS AND ACCELERATED ADOPTION OF EVs ► Market currently driven by increasing demand for powerful Tesla introducing NdPr permanent magnet motor magnets used in electric motors and generators – rare earth (Model 3) magnets are the
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