Rainbow Rare Earths Ltd. · LSE:RBW
Rainbow Rare Earths — H1 2018 Earnings Presentation
25 slides from Rainbow Rare Earths's earnings presentation, Feb 19, 2018
Slide 1: Interim Results to 31/12/17
ONE OF THE WORLD’S RICHEST PRODUCING RARE EARTH DEPOSITS LOW COST PRODUCTION IN EAST AFRICA Interim Results to 31/12/17
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: What is Rainbow Rare Earths?
WHAT IS RAINBOW RARE EARTHS? AN INDEPENDENT SUPPLIER OF HIGH-GRADE CONCENTRATE TO THE GLOBAL RARE EARTH MARKET 90% owner of Gakara: Gakara is the only the highest grade rare earths producing rare earths mine mine globally in Africa (one of a handful (47 - 67% TREO) outside of China) USPs High value
Slide 4: 2017 – A Year of Delivery
2017 – A YEAR OF DELIVERY FROM IPO IN JANUARY TO FIRST PRODUCTION AND EXPORTATION ON TIME AND ON BUDGET Raised US$3.75M for exploration US$8m initial Exploration success upside and Gasagwe mine funding secured - 4 large anomalies acceleration of developed and from IPO on LSE identified production pr
Slide 5: Key Data
KEY DATA SHARES TICKER MARKET MARKET CAP SHARE PRICE JOINT BROKERS IN ISSUE HANNAM & PARTNERS RBW.L LSE £24.22m 13.875p 174.63m ARDEN PARTNERS As at 19.02.18 SHARE PRICE GRAPH SIGNIFICANT SHAREHOLDERS 18 SHAREHOLDER HOLDING 17 16 Adonis Pouroulis 25.97% 15 14 Other Board & 13 8.50% Management 12 11
Slide 6: Overview of Financials
OVERVIEW OF FINANCIALS Source: Company’s photo of Gasagwe mine site Rainbow Rare Earths Ltd. 5
Slide 7: Six Months to Dec 2017 – Summary P&L and Balance Sheet
SIX MONTHS TO 31 DEC 2017 – SUMMARY P&L AND BALANCE SHEET INCOME STATEMENT US$’000 6 mths to 6 mths to 31 Dec 2017 31 Dec 2016 ▶ Administrative expenses reflect increased activity in period – prior to IPO in Jan (unaudited) (unaudited) 2017, activity was kept deliberately low Administrative expenses
Slide 8: Six Months to Dec 2017 – Summary Cashflow
SIX MONTHS TO 31 DEC 2017– SUMMARY CASHFLOW CASHFLOW STATEMENT US$’000 6 mths to 6 mths to 31 Dec 2017 31 Dec 2016 ▶ Cash outflow from operating activities (unaudited) (unaudited) includes US$0.6M administrative expenses and US$0.4M mining costs Net cash used in operating activities (1,126) (103) ca
Slide 9: The Gakara Rare Earths Project
THE GAKARA RARE EARTHS PROJECT Source: Company’s aerial photo of Gasagwe operation Rainbow Rare Earths Ltd. 8
Slide 10: Rainbow in Summary - Mining
RAINBOW IN SUMMARY - MINING FIRST AREA OF MINING OPERATIONS A SUCCESS Initial mining area at Gasagwe Gashirwe identified as successfully in operation second mining area ► High grade ore being mined and processed ► Limited production commencing in 2018 ► Grades consistent from surface to depth ► Mine
Slide 11: Rainbow in Summary – Processing
RAINBOW IN SUMMARY – PROCESSING KABEZI PROCESSING PLANT – A SIMPLE EFFICIENT 5TPH GRAVITY SEPARATION PROCESSING FACILITY Capacity available to Located next to asphalt road Fully operational on time and increase production First tonnes successfully providing ease of access for within budget throughpu
Slide 12: First Concentrate Production
FIRST CONCENTRATE PRODUCTION PRE 2017 YEAR END TARGET ACHIEVED FOR FIRST PRODUCTION ► Production of first batch of high grade concentrate completed on time and budget within 11 months of IPO ► All material sampled, recorded and exported in line with all applicable Burundi regulations ► First royalty
Slide 13: Rainbow – Sales and Marketing
RAINBOW – SALES AND MARKETING ORE VALUE STRONGLY WEIGHTED TOWARDS MAGNET RARE EARTHS Based on average grades of REOs within Gasagwe in situ vein samples and market prices of purified Basket composition Value in Nd and Pr 2% ► Gasagwe: Based on average samples, magnet 15% REEs account for approximate
Slide 14: Rainbow in Summary – Exploration Successes
RAINBOW IN SUMMARY – EXPLORATION SUCCESSES HIGHLY PROSPECTIVE DISCOVERIES WARRANT FURTHER INVESTIGATION ► Four large and highly prospective anomalies defined by airborne magnetic survey undertaken in Q4 2017 ► Potential for a carbonatite source for Gakara's rare earth veins providing significant exp
Slide 15: 2018 Exploration Programme
2018 EXPLORATION PROGRAMME PROPORTION OF FUNDS RAISED IN DECEMBER 2017 EARMARKED TO UNLOCK FURTHER VALUE AT GAKARA Drilling Initial First Further contractors campaign results drilling Appointed and Initial campaign will News from initial Subject to results work now include ~1,000m drill campaign fur
Slide 16: Future Strategy Underpinned
FUTURE STRATEGY UNDERPINNED NEAR-TERM OPTIONS INTENDED TO DRIVE VALUE FOR SHAREHOLDERS FOLLOWING INITIAL SUCCESS New production Expanded Target maiden target of 6,000tpa exploration strategy JORC Resource during 2019 and drilling campaign Rainbow Rare Earths Ltd. 15
Slide 17: 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 18: 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. 17
Slide 19: Rare Earths
RARE EARTHS GAKARA IS ONE OF THE ONLY FEW RARE EARTH PRODUCERS OUTSIDE OF CHINA Rare earth production – 2016 ► Global rare earth production in 2016 was estimated at China-based 160,000-170,000 metric tonnes, with 93% of it produced production in China (source: Argus) Non-Chinese production ► With 6,
Slide 20: 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 21: Project Overview
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 – 5tph throughput Processing Pla
Slide 22: Gakara Project: Licence Areas
GAKARA PROJECT: LICENCE AREAS MINE PLAN AIMS TO BRING ADDITIONAL AREAS INTO PRODUCTION Rainbow Rare Earths Ltd. 21
Slide 23: 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 24: 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 25: 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