Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (September 2023)
29 slides from Rainbow Rare Earths's investor presentation, September 2023
Slide 1: Unlocking Secondary Sources of Rare Earths
RAINBOW RARE EARTHS UNLOCKING SECONDARY SOURCES OF RARE EARTHS Investor Presentation September 2023
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: Multi-asset rare earth development company
MULTI-ASSET RARE EARTH DEVELOPMENT COMPANY UNIQUE POSITION IN PIPELINE – DEVELOPING A WESTERN RARE EARTH SUPPLY CHAIN FROM SECONDARY SOURCES Investment Opportunity LCM – UK World-leader in the manufacture of alloys for permanent magnets - agreement to purchase separated rare earth oxides from Rainbo
Slide 5: Rare Earth Elements: Essential for Global Decarbonisation
RARE EARTH ELEMENTS ESSENTIAL FOR GLOBAL DECARBONISATION CRITICAL BUILDING BLOCKS TO REACH NET ZERO • Rare earths are a group of 17 elements – Neodymium and Praseodymium (together NdPr), Dysprosium (Dy) and Terbium (Tb) are economically important and account for 95% of global consumption by value1 •
Slide 6: Importance of the 'Heavy' Rare Earths
IMPORTANCE OF THE ‘HEAVY’ RARE EARTHS RAINBOW WILL BE A SIGNIFICANT PRODUCER OF SEPARATED DY AND TB OXIDES DY AND TB: SMALL BUT VITAL COMPONENTS OF PHALABORWA MAGNET RARE EARTH SUPPLY PERMANENT MAGNETS • The importance of Dy and Tb: NdPr production2 – enable performance under high temperatures – imp
Slide 7: Dy and Tb Among Highest Risk for Supply Shortages
CRITICAL MINERALS DY AND TB ARE AMONGST HIGHEST RISK FOR SUPPLY SHORTAGES “While some materials, such as nickel, may experience modest shortages (approximately 10 to 20 percent), others, such as dysprosium, which is a magnetic material used in most Market electric motors, could see shortages of up t
Slide 8: Long Term Supply Deficit Expected for Rare Earths
LONG TERM SUPPLY DEFICIT EXPECTED FOR RARE EARTHS MAGNET RE SUPPLY WILL NEED TO GROW BY 8% PER ANNUM TO MATCH DEMAND FORECAST RARE EARTH SUPPLY DEFICIT / PHALABORWA PRICE1 +27,000t 160 550 supply deficit Supply growth 140 2026: expected Phalaborwa production 500 forecast driven by Steady state produ
Slide 9: Unique Position in the Rare Earth Magnet Supply Chain
UNIQUE POSITION IN THE RARE EARTH MAGNET SUPPLY CHAIN UNDERLINES ADVANTAGE OF RAINBOW’S UNIQUE FLOW SHEET Upstream Midstream Downstream Usually lengthy process with many stages Predominantly in China OXIDE TO END USE MAGNET COMPONENT MINING CONCENTRATION CRACKING SEPARATION METAL AND MANUFACTURE MAN
Slide 10: Phalaborwa Expected to Be One of the Lowest Cost Producers
PHALABORWA EXPECTED TO BE ONE OF THE LOWEST COST PRODUCERS OF SEPARATED MAGNET RARE EARTH OXIDES GLOBALLY Total Resource1 of Production of ca. 1,850t of Mine life of 14 RECOVERY OF MAGNET RARE EARTH ELEMENTS FROM 30.4 Mt at 0.44% TREO NdPr, Dy, Tb annually years HISTORIC GYPSUM STACKS • The resource
Slide 11: Production of Mixed Rare Earth Sulphate at Front-End Pilot Plant
PRODUCTION OF MIXED RARE EARTH SULPHATE AT FRONT-END PILOT PLANT FIRST MAJOR DE-RISKING MILESTONE FOR RAINBOW VALIDATES RAINBOW’S UNIQUE FLOW SHEET • Front-end pilot plant is located at Mintek in Johannesburg • Mixed rare earth sulphate is of expected purity and grade Phalaborwa Project and includes
Slide 12: Front-End Plant Progress
FRONT-END PLANT PROGRESS MANAGED BY MINTEK IN JOHANNESBURG Phalaborwa Project 12 Rainbow Rare Earths Limited
Slide 13: K-Tech Patented Separation Technology
K-TECH PATENTED SEPARATION TECHNOLOGY CONTINUOUS ION EXCHANGE (CIX) AND CONTINUOUS ION CHROMATOGRAPHY (CIC) RAINBOW HAS ACCESS TO K-TECH’S PATENTED CIX AND CIC TECHNOLOGY FOR RECOVERY OF SEPARATED RARE EARTH OXIDES • Replaces traditional solvent extraction (SX) technology, which Phalaborwa Project u
Slide 14: Back-End Pilot Plant Progress
BACK-END PILOT PLANT PROGRESS MANAGED BY K-TECH IN LAKELAND, FLORIDA Phalaborwa Project Rainbow’s CIX/CIC Units currently nearing completion 14 Rainbow Rare Earths Limited
Slide 15: Strategic Supply Agreement with Less Common Metals
STRATEGIC SUPPLY AGREEMENT WITH LESS COMMON METALS (LCM) BUILDING AN ETHICAL AND WESTERN SUPPLY CHAIN FOR RARE EARTH ELEMENTS PARTNERS ALIGNED IN THEIR VALUES Phalaborwa Project – Supply Agreement “Given the concentration of the rare earth supply chain, a relationship with Rainbow offers the opportu
Slide 16: 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 17: 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 18: 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 19: Strong Progress to Date
STRONG PROGRESS TO DATE DE-RISKS PHALABORWA PROJECT; UNLOCKS VALUE Q4 2022 Q3 2023 DEFINITIVE PRODUCTION RESOURCE PERMITTING PEA PUBLISHED PILOT PLANT FEASIBILITY EXPECTED UPDATE UPDATED Progress and next steps STUDY 20261 PROJECT PROGRESS NEXT STEPS SUPPORTED BY POSITIVE PEA • PEA publication – Pha
Slide 20: 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 development projects: NPV10 US$1.0bn – Expected to be one of the lowest cost producers of rare earths globally – Contai
Slide 21: Thank You
RAINBOW RARE EARTHS THANK YOU Contact us: INVESTOR RELATIONS Cathy Malins Tel: +44 7876 796 629 Email: cathym@rainbowrareearths.com www.rainbowrareearths.com
Slide 22: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BOARD SHAREHOLDINGS AND MAJOR SHAREHOLDERS (>3%) INFORMATION AS AT 5 SEPTEMBER 2023 Shareholder Holding Ticker Market Market Share Shares in Brokers cap price issue Adonis Pouroulis 14.0% RBW.L LSE £96.6m 16.1p 598m BERENBERG TechMet 12.0% Appendices George Bennett 6.1% S
Slide 23: Strong Leadership Team
STRONG LEADERSHIP TEAM WITH TRACK RECORD THROUGH PROJECT DEVELOPMENT TO PRODUCTION EXPERIENCED MANAGEMENT AND TECHNICAL TEAM • CEO George Bennett established MDM Engineering which delivered Phalaborwa NPV10 multiple processing plants and feasibility studies under his tenure • Technical Director Dave
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: Creating a Responsible, Western, Independent Supply Chain
CREATING A RESPONSIBLE, WESTERN, INDEPENDENT SUPPLY CHAIN URGENCY MOUNTING TO MEET GROWING DEMAND SUPPLY DEFICIT IS LIKELY DUE TO TRADITIONAL RARE “THE MIDDLE EAST HAS OIL; EARTHS MINING CHALLENGES: CHINA HAS RARE EARTHS.” • Many development projects have complex challenges to overcome including low
Slide 26: Phalaborwa Preliminary Economic Assessment
PHALABORWA PRELIMINARY ECONOMIC ASSESSMENT EXPECTED TO BE ONE OF THE LOWEST COST PRODUCERS OF SEPARATED MAGNET RARE EARTH OXIDES STRONG ECONOMIC RETURNS FROM PEA BASE CASE1 YTD AVERAGE PRICES AT TIME OF PEA PUBLICATION2 • October 2022 PEA demonstrated the low-cost nature of the Phalaborwa developmen
Slide 27: Updated JORC Compliant Mineral Resource Estimate
UPDATED JORC COMPLIANT MINERAL RESOURCE ESTIMATE (MRE) PHALABORWA, SOUTH AFRICA UPDATED 20 MARCH 2023 Contribution of TREO by oxide Grade • Overall size of MRE confirmed % ppm at 30.4 Mt comprising 0.44% Tonnes TREO Nd Pr Dy Tb Other Th U TREO Mt % Stack A 20.2 0.43 23.4 5.6 1.0 0.3 69.7 50 2 • High
Slide 28: Phalaborwa Block Flow Diagram
PHALABORWA BLOCK FLOW DIAGRAM UNIQUE PROCESS DEVELOPED BY RAINBOW AND K-TECH HYDRAULIC PRE-LEACH PRETREATMENT PRETREATMENT RARE EARTH RE LEACH NEW PG STACK RECLAMATION DEWATERING PROCESS DEWATERING LEACH DEWATERING Benign gypsum Appendices deposited IMPURITIES RAPID REMOVAL CONSOLIDATION on new dry
Slide 29: Gakara: High-Grade Rare Earth Mineral Concentrate
GAKARA: HIGH-GRADE RARE EARTH MINERAL CONCENTRATE FROM LARGE MINERALISED SYSTEM IN BURUNDI PRE-2020 • 39km2 mining permit hosting large scale mineralised system • Exploration target provides opportunity for 262,000 -375,000t of high-grade vein hosted mineralisation grading 7.0% - 12.0% TREO plus 252
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