Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — Investor Presentation (June 2023)
27 slides from Rainbow Rare Earths's investor presentation, June 2023
Slide 1: Driving Decarbonisation: Unlocking Secondary Sources of Rare Earths
RAINBOW RARE EARTHS DRIVING DECARBONISATION: UNLOCKING SECONDARY SOURCES OF RARE EARTHS JUNE 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 earths (RE) will rise significantly to meet decarbonisation; urgent need for non-China supply Investment opportunity IRR STRATEGIC ASSET: Near-term ethical RE production from a
Slide 4: 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 Strong leadership team •
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 consumption1 • Used for
Slide 6: 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 140 350 26kt 2026: expected Phalaborwa production Rare earth supply Steady state production of ca. 2,000t magnet prices grew def
Slide 7: 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 8: 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. 2,000t 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 9: Rainbow's Position in the Rare Earth Magnet Supply Chain
RAINBOW’S POSITION IN THE RARE EARTH MAGNET SUPPLY CHAIN UNDERLINES PHALABORWA’S UNIQUE ADVANTAGE 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 MANUFACTURE
Slide 10: Strong Returns in Any Foreseeable Pricing Environment
STRONG RETURNS IN ANY FORESEEABLE PRICING ENVIRONMENT ROBUST ECONOMICS VS TRADITIONAL RE MINING DEVELOPMENT PROJECTS • Sensitivity analyses demonstrate robust EBITDA operating • NPV insensitive to changes in operating costs; beneficial in margins in all pricing sensitivity scenarios inflationary env
Slide 11: 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 12: Plant Front End Progress
PLANT FRONT END PROGRESS MANAGED BY MINTEK IN JOHANNESBURG Phalaborwa Project 12 Rainbow Rare Earths Limited Corporate Presentation - June 2023
Slide 13: Plant Back End Progress
PLANT BACK END PROGRESS MANAGED BY K-TECH IN LAKELAND, FLORIDA Phalaborwa Project Existing CIX Unit at Lakeland facility Rainbow’s CIX/CIC Units currently under construction 13 Rainbow Rare Earths Limited Corporate Presentation - June 2023
Slide 14: 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 15: Strong Progress to Date
STRONG PROGRESS TO DATE DE-RISKS PHALABORWA PROJECT; UNLOCKS VALUE Q4 2022 Q2 2023 DEFINITIVE PRODUCTION TEAM PEA RESOURCE PILOT PERMITTING FEASIBILITY EXPECTED STRENGTHENED PUBLISHED UPDATE PLANT UPDATED Progress and next steps STUDY 20261 STRONG PROGRESS NEXT STEPS SUPPORTED BY POSITIVE PEA • PEA
Slide 16: Global Opportunity to Recover Rare Earths from Phosphoric Acid Production
GLOBAL OPPORTUNITY TO RECOVER RARE EARTHS FROM PHOSPHORIC ACID PRODUCTION LEVERAGING IP AND PORTFOLIO FOR LONG TERM GROWTH STRATEGIC FOCUS ON RECOVERING RARE GLOBAL PHOSPHATE PRODUCTION, MT EARTH OXIDES FROM SECONDARY USA, 22 SOURCES TO SUPPORT GLOBAL Africa share of global RoW, 31.5 DECARBONISATION
Slide 17: Why Rainbow?
WHY RAINBOW? DRIVING VALUE FROM STRATEGIC SECONDARY SOURCES OF RARE EARTHS PHALABORWA UPSIDE KEY TAKEAWAYS FORECAST1 • Phalaborwa offers unique benefits over traditional RE development projects: NPV10 US$1.0bn – Expected to be one of the lowest cost producers of REs globally – Contains all 4 permane
Slide 18: 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 19: Key Shareholder Information
KEY SHAREHOLDER INFORMATION BOARD SHAREHOLDINGS AND MAJOR SHAREHOLDERS (>3%) INFORMATION AS AT 6 JUNE 2023 Shareholder Holding Ticker Market Market Share Shares in Brokers cap price issue Adonis Pouroulis 14.0% RBW.L LSE £53.8m 9.0p 598m BERENBERG TechMet 12.0% Appendices George Bennett 6.1% SHARE P
Slide 20: 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 21: Accelerating Global Demand for Rare Earths: Offshore Wind
ACCELERATING GLOBAL DEMAND FOR RARE EARTHS A 3MW OFFSHORE WIND TURBINE REQUIRES ~2T OF PERMANENT MAGNETS1 OFFSHORE WIND POWER CAPACITY ADDITIONS (GW) 55GW of new off-shore wind in 2031 will require ~37kt of Offshore wind rare earth magnets turbine market is forecast to grow at ~21% per annum 2026: e
Slide 22: Accelerating Global Demand for Rare Earths: EVs
ACCELERATING GLOBAL DEMAND FOR RARE EARTHS THE AVERAGE HYBRID OR EV USES 2-5KG OF RARE EARTH MAGNETS1 RISING GLOBAL EV SALES FORECASTS (MILLION UNITS) 44.6 million EVs in 2032 will require ~134kt of EV market is rare earth magnets2 expected to grow 2026: expected by 25% per annum from 2020 to 20321
Slide 23: 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 24: 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 25: 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 26: Phalaborwa Est. EBITDA Margin of 75% Based on Conservative Pricing
PHALBAORWA EST. EBITDA MARGIN OF 75% BASED ON CONSERVATIVE PRICING 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
Slide 27: 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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