Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (October 2024)
29 slides from Rainbow Rare Earths's investor presentation, October 2024
Slide 1: Recovery of Critical Rare Earths from Phosphogypsum
RAINBOW RARE EARTHS RECOVERY OF CRITICAL RARE EARTHS FROM PHOSPHOGYPSUM AS PART OF AN INDEPENDENT AND RESPONSIBLE SUPPLY CHAIN October 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: The First Commercial Recovery of REE from Phosphogypsum
THE FIRST COMMERCIAL RECOVERY OF RARE EARTH ELEMENTS (REE) FROM PHOSPHOGYPSUM PHOSPHATE IS MINED TO PRODUCE PHOSPHOGYPSUM IS THE RAINBOW HAS DEVELOPED PHOSPHORIC ACID BY-PRODUCT TECHNOLOGY TO RECOVER THE REE Our Business A hard-rock phosphate deposit is mined and The waste product of phosphoric acid
Slide 4: Achievements for FY 2024
ACHIEVEMENTS FOR FY 2024 12 MONTHS TO 30 JUNE 2024 PILOT PLANT $ FUNDING RESOURCE¹ • Two saleable products to date: • US$50m project funding • Updated JORC-compliant mixed rare earth carbonate and commitment from the U.S. Mineral Resource Estimate Nd/Pr oxide at ca. 96% purity International Developm
Slide 5: Rare Earth Elements Essential for Global Decarbonisation
RARE EARTH ELEMENTS ESSENTIAL FOR GLOBAL DECARBONISATION CRITICAL BUILDING BLOCKS TO REACH NET ZERO GLOBAL DEMAND FOR MAGNET RARE EARTH OXIDES (REO)¹, (ND, PR, DY, TB) • Rare earth elements are a group of 17 elements • Nd/Pr, Dy and Tb are used for rare earth permanent magnets (REPM) and account for
Slide 6: Unstoppable Global Megatrend
UNSTOPPABLE GLOBAL MEGATREND THE ELECTRIFICATION OF TRANSPORT AND THE GREEN ENERGY TRANSITION ELECTRIC VEHICLES GLOBAL EV PASSENGER FLEET FORECAST 2020-34 (BN UNITS) • Ongoing adoption of electric vehicles globally driven by legislation – Some consumers are choosing to switch to plug-in hybrids (PHE
Slide 7: Robotics: Exciting New Market Predicted for Exponential Growth
ROBOTICS EXCITING NEW MARKET PREDICTED FOR EXPONENTIAL GROWTH CONSUMER HUMANOID • Emerging technologies are expected to open up new frontiers for rare earth permanent magnet demand • High-performance REPM (i.e. NdFeB which incorporate both light and heavy rare earths) Market Backdrop electric motors
Slide 8: Advanced Air Mobility and eVTOL
ADVANCED AIR MOBILITY AND EVTOL EXCITING NEW MARKET PREDICTED FOR EXPONENTIAL GROWTH • Advanced air mobility RECREATIONAL EVTOL currently led by recreational and commercial drones, with a payload of <100kg • eVTOL (electrical vertical take-off and landing) Market Backdrop aircraft payload of >100kg
Slide 9: 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 +70% dominated by China ‘Heavy’ REE (Dy & Tb) mine supply is +90% dominated by China M
Slide 10: Geopolitical Pressure Ratcheting Up
GEOPOLITICAL PRESSURE RATCHETING UP US, EU AND ALIGNED GOVERNMENTS TAKING CONCERTED ACTION • Heightened geopolitical tensions around critical minerals, with China exerting export controls on graphite, gallium, germanium, antimony and rare earths processing technology • US retaliation in May with tar
Slide 11: Phalaborwa Snapshot
PHALABORWA SNAPSHOT ONE OF THE HIGHEST MARGIN REE PROJECTS IN DEVELOPMENT TODAY US$50M FUNDING COMMITMENT Trial hydraulic reclamation of the phosphogypsum FROM US DFC RECOGNISES THE stacks delivered excellent results in 2024 EXCEPTIONAL ECONOMIC AND ESG OPPORTUNITIES 35.0 Mt 29% Phalaborwa Total Res
Slide 12: 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 PMC Copper Mine PHALABORWA BENEFITS VS Phalaborwa town TRADITIONAL PROJECTS • Circular economy: will recover REEs from a waste product and rehabi
Slide 13: 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 margins in all pricing scenarios AVERAGE PRODUCTION PER • NPV insensitive to changes in operating costs; beneficial in infl
Slide 14: Responsible Production of Rare Earths
RESPONSIBLE PRODUCTION OF RARE EARTHS COULD THERE BE A PREMIUM FOR ‘GREEN’ SOURCES OF REO? FOUNDED ON THE PRINCIPLES OF CIRCULARITY; EXTRACTING VALUE FROM CREATING SOCIAL VALUE A ‘WASTE’ PRODUCT BROWNFIELD REHABILITATION RECYCLING COMMUNITY • Phalaborwa is on an industrial • Rainbow will clean up le
Slide 15: Unique Position in the Rare Earth Magnet Supply Chain
UNIQUE POSITION IN THE RARE EARTH MAGNET SUPPLY CHAIN Upstream Midstream Downstream Usually lengthy process with many stages Predominantly in China REE Supply Chain OXIDE TO END USE MAGNET COMPONENT MINING CONCENTRATION CRACKING SEPARATION METAL AND MANUFACTURE MANUFACTURE MANUFACTURE ALLOYS (OEM) D
Slide 16: Primary Flowsheet to Produce High Grade Mixed REE Feed
PRIMARY FLOWSHEET TO PRODUCE HIGH GRADE MIXED REE FEED REPRESENTS +/-75% OF PHALABORWA PROCESS • The leach flowsheet has been subject to an extensive programme of bench scale testwork and pilot plant testwork conducted at Mintek in Johannesburg • Primary pilot plant operations comprised of four Pilo
Slide 17: Optimisation of Primary Flowsheet
OPTIMISATION OF PRIMARY FLOWSHEET PROVEN BY EXTENSIVE TESTWORK AND PILOT PLANT OPERATION FLOWSHEET ADOPTED FOR THE PEA • Leach temperature reduced, delivering +/- 50% cost saving • The ability to control the impact of fluorine on rare earth stability resulted in the elimination of the Pilot Plant Ca
Slide 18: Separation Flowsheet to Produce Separated REO
SEPARATION FLOWSHEET TO PRODUCE SEPARATED REO REPRESENTS +/-25% OF THE PHALABORWA PROCESS Developed using continuous ion exchange / continuous ion chromatography (CIX/CIC) CIX / CIC units at the separation pilot plant Achievements to date: • Separation of heavy, medium and light rare earths as group
Slide 19: Timeline to Production
TIMELINE TO PRODUCTION DE-RISKS PHALABORWA PROJECT; UNLOCKS VALUE H2 2024 DFS AND PRODUCTION PILOT PLANT INTERIM PERMITTING PROJECT RESOURCE UPDATE EXPECTED REPORT EXPECTED FINANCE Project Development 2027¹ 2025 UPLIFT TO NEXT STEPS SUPPORTED BY SUCCESSFUL OPTIMISATION OF FLOWSHEET PROJECT NPV furth
Slide 20: Experienced Leadership and Technical Team
EXPERIENCED LEADERSHIP AND TECHNICAL TEAM TRACK RECORD TO DELIVER PHALABORWA DFS AND DEVELOPMENT CORPORATE TEAM TECHNICAL TEAM Rainbow Team Adonis Pouroulis George Bennett Pete Gardner Dave Dodd Chris Le Roux Roux Wildenboer Tamsyn De Jager Founder and Chairman Chief Executive Officer Chief Financia
Slide 21: Rainbow Positioned to Access a Larger Addressable Market
RAINBOW POSITIONED TO ACCESS A LARGER ADDRESSABLE MARKET GLOBAL OPPORTUNITIES TO RECOVER REE FROM PHOSPHOGYPSUM Saudi Arabia Significant gypsum resources Approach for strategic partnership Global Opportunity Canada Approach for strategic Uberaba – Brazil partnership • Major opportunity to replicate
Slide 22: Why Rainbow?
WHY RAINBOW? THE FIRST COMMERCIAL PRODUCTION OF REE FROM PHOSPHOGYPSUM • Rainbow process offers unique benefits over traditional rare earth projects: – Phalaborwa expected to be one of the highest margin rare earth projects in development today – Unique flowsheet is cheaper, safer and more environme
Slide 23: Appendix
RAINBOW RARE EARTHS APPENDIX
Slide 24: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BOARD SHAREHOLDINGS AND MAJOR SHAREHOLDERS (>3%) INFORMATION AS AT 14 OCTOBER 2024 Shareholder Holding as at 14 Oct 2024 Ticker Market Market Share Shares in Brokers cap price issue Adonis Pouroulis 13.9% BERENBERG RBW.L LSE US$98.9m 11.75p 644m / STIFEL TechMet 11.7% App
Slide 25: MOU Signed with Mosaic in Brazil
MOU SIGNED WITH MOSAIC IN BRAZIL MAJOR OPPORTUNITY TO REPLICATE PHALABORWA UBERABA PHOSPHOGYPSUM (PG) STACK IN MINAS GERAIS ASSAY RESULTS FOR • Uberaba phosphate slurry feed is sourced from a hard rock carbonatite similar to the Foskor UBERABA PG carbonatite mine that fed Sasol’s phosphoric acid pla
Slide 26: Advantages of Rainbow Process Technology Over Traditional SX
ADVANTAGES OF RAINBOW PROCESS TECHNOLOGY OVER TRADITIONAL SX SIMPLIFIED PROCESS LEADING TO COST AND ENVIRONMENTAL BENEFITS Mineral Process Rainbow Process Mineral Ore Phosphogypsum Concentration Mining Hydraulic reclamation Crushing Leaching Grinding Flotation Appendix Cracking Acid Bake Water Leach
Slide 27: Updated Mineral Resource Estimate Adds Years to Project Life
UPDATED MINERAL RESOURCE ESTIMATE (MRE) ADDS 2 YEARS TO PROJECT LIFE IN-SITU VALUE OF CA. US$3.7 BILLION AT CURRENT LOW REE PRICES Contribution of TREO by oxide Grade • Tonnages increased % ppm 15% to 35.0Mt Tonnes TREO Nd Pr Dy Tb Eu Sm Gd La Ce Th U • Measured category Mt % increased from 24% to I
Slide 28: Experienced Board and Executive Management
EXPERIENCE BOARD AND EXECUTIVE MANAGEMENT EXTENSIVE EXPERIENCE ACROSS MINING, AFRICA, CAPITAL MARKETS, INTL. AFFAIRS ADONIS POUROULIS DARRYLL CASTLE NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR • Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration • COO for TechMet1
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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