Rainbow Rare Earths (LSE:RBW) — Investor Presentation

0:00 Good morning and welcome to the RAINBOW RARE EARTHS LIMITED investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to George Bennett, CEO. Good morning. Good morning. I hope you can hear me well well and clear. I'd like to welcome you to another investor update on RAINBOW. We've had quite a lot going on since I last presented to you IMC, and it's all been very exciting for RAINBOW. So with no further ado, I shall carry on.

0:51 Usual disclaimer. Thank you. So this slide is was my last presentation. It presents the Pedobor base case in terms of our financial metrics. This was published as part of our PEA in October last year. And once again, it highlighted what a robust project we have at RAINBOW with the PALIBOR project. And since then, of course, we've done a couple of other things. You see where it says strategic assets. We did a capital raise at a 30% premium to the market price at the time. The cornerstone investor was Techmed. You are funded by the U. S. Government via the DFC, the Development Finance Corporation. And this, I think, speaks volumes in itself that we now have the U. S. Government through TechMet as a 12% shareholder in RAINBOW, and we will be looking at further investment from the source in The U. S.

1:48 Once again, we have very robust economics in our PEA, but the technology that is very innovative, we've been able to extend this further to signing an MOU with Mosaic in Ubaraba in Brazil, and I'll talk about that later. And then as the last sort of key point there is the experienced team. I've covered this in previous presentations, and some more information on our experienced team that's delivered many, many times in the past is now in appendix to this presentation and you can look at it at your leisure. Very importantly, Monday this week, we announced the MOU signed with Mosaic.

2:34 Mosaic is a U. Listed multinational. They got a $12,000,000,000 market cap. And what we've been able to do is sign an MOU to jointly develop the Ubaraba project in Brazil. Now Ubaraba is a very large phosphate producer. They mined phosphate, hard rock phosphate from a carbonatite similar to what Foscol mined in Kalaboa. They slurry it down to a phosphoric acid plant and they produce phosphoryl gypsum, very, very similar to the process that we have that was carried out for sixty years at Paloborua in South Africa and run by SASL. As I said, the phosphate slurry feed at Ugaraba mine and produce is in similar nature to what we experienced at Palobor.

3:26 And in our initial desktop work we did on this opportunity, we know that the grade is similar, if not higher than Palabo's and the rare elements of the similar makeup to what we have at Palabo. And just to stress, Palabo has a very, very high basket of neodymium, percidinium, above 29%, which is one of the highest in the world, and it's got very, very strong commercial credits in terms of terbium and dysprosium, which are very important, these two heavy roof elements. We basically are going to collaborate with Mosaic to do the test work, which has already started at SGS Laboratories in Toronto, very well known worldwide, the recognized laboratory with lots of work experience and and basically, we're funding the work program, the drilling program we'd have to undertake on on this stack at at Ubaraba as well as the PEA PA on the fifty fifty basis. So you can understand where we are going with this project. I might add that the Ubarabba stack is significantly larger than what we have at Paloborah.

4:33 So it's a very, very exciting opportunity for RAINBOW. We expect it will be a similar low capital intensity to Paloborah compared to other hard rock projects. It will be resilient to the pricing environment that we see, and I'll go into that more later. And very importantly, the phosphate mine that's feeding this phosphoric acid plant at Ubaraba is a life in excess of twenty five years. So it's a very, very long life project that RAINBOW now finds itself jointly developing with Mosaic in Brazil. Also very importantly, we've consolidated our ownership at Dalla Boy by doing a deal which was very, very accretive in terms of NPV for RAINBOW.

5:22 We have paid $5,000,000 to take interest from 70 to 85% in in the Kalabo project in South Africa. And we've got a call option, which will exercise at our leisure to to take the other 15% based on VWAP of the price of RAINBOW in October 2023. And then so we will fix the number of shares that we're going to issue for the balance of the 15%, but we've got up to two years to exercise this. And the reason why we're going to take two years, we just want to make sure that we've got all the permitting in place and so forth before we finalize our last 15% call option.

6:07 So it's a very, very strategic stake. It's been done in a very strategic manner. And as I said, we raised $9,500,000 on the market recently at a premium of, as I said, about 30%. And it demonstrates that we've got strong backing from the market and also a very strong backing by Techmed, which, as I said, is funded by the U. S. Government. Techmed came in for $7,500,000 of the $9.5 and we were able to raise 2,000,000 from the balance of other shareholders who are very supportive of RAINBOW.

6:42 For the investors on this interview who are not sort of familiar with the RARE EARTHS market and with the Pettaboard story or the RAINBOW story per se, as we know, key building blocks for the net zero sort of target that we see for 2050 is basically electric vehicles, solar and wind power. Now wind power generation, which has been rolled out aggressively over the next twenty odd years, requires huge amount of permanent magnets and their drives. And these permanent magnets are made up about over three megawatt wind turbines, got two tons of permanent magnets in it and about 600 kilograms of those permanent magnets are made up of neodymium and brisodymium. So very, important part for permanent magnets in wind turbines. Electric vehicles like Tesla or a fully electric vehicle takes between three and five kilograms of permanent magnets. And once again, you've got a very high percentage of neodymium and preseidinium required in these permanent magnets, not only for, as I said, for electric vehicles, wind turbines, but all consumer electronics today make up 50% of permanent magnet demand, and the defense industry also requires permanent magnets.

8:06 Not only do you require a large amount of neodymium and brazidinium, you also require disposing of intervium in smaller quantities. These protect the permanent magnets from losing their power through heat And, you know, electric vehicles generate heat on turbines and certainly missile guidance systems when they're flying it at high speed through the atmosphere, they generate lots of heat and you need to protect the properties of the permanent magnets. So also a very, very important part of the four pillars that are acquired in the permanent magnet industry. And as I mentioned, consumer electronics, your handheld drills, your cell phones, your ear pods, your drones, your electric scooters, electric motorbikes, all these things require permanent magnet motors and they all require rare earth elements in them. So the demand outlook is very, very robust.

9:03 As I mentioned earlier, dysprosium and terbium are small but vital components of permanent magnet and we see the importance of DUI and TB growing in the world right now. I was at the RAINBOW EARTHS conference in Barcelona just three or four weeks ago, and it was very apparent how dysplasia in terbium will be recognized as being very, very important going forward because China has has only got ten year life reserves left of these two rare earth elements. So with the Chinese only having ten years of wildlife left, you realize our critical and other sources of these two brewers are becoming. And basically, there are no facilities separating, disposing and terbium outside of China in the world right now. Linus are currently building a plant in The U. S. To separate the disposing and terbium that they mine in Australia.

9:57 Because even currently, even though LIMITED themselves separate neodymium and and and and pressuridinium, the heavy rain has been disposing material or actually currently being separated in China and then moving the separation to The US. But right now, there's nobody else. RAINBOW will be one of the few companies in the world that will separate all four of these with oxides, separated oxides outside of China. As you can see, what our production forecast of these two key elements will be is plusminus 100 tons of disposing and plusminus 40 to 50 tons of turbine, even though these tonnages look small, very, very high value and very important in the global sense.

10:45 Once again, this highlights these two key rears, disposal and terbium on this chart. You can supply by McKinsey. A severe imbalance is dark blue on this chart and moderate imbalance is slightly lighter blue. As you can see on the magnets, dysprosium and terbium, they're colored in dark blue showing the severe imbalance that they're predicting and neodymium and prisodymium is in the milder blue, but also a moderate imbalance, which we're all aware of, is occurring as in terms of forecast supply and forecast demand. Going back to this chart now where we're looking at a supply deficit of 27,000 tonnes forecast by 2032.

11:31 And this is supporting the increase in the price of the taller board basket. In other words, we see real prices rising consistently on average over the next ten years. We have seen a price pullback in 2022 and 2023. This is after a spike in 2022 driven by massive rollout of wind turbine generation in China, which slowed, but that wind turbine generation is going to pick up its forecast towards the end of this year and going into next year and continue as well as forecast demand growth for EVs. And that's why you see a pickup in roof pricing as well as so that translates into a pickup of the value of the RAINBOW basket made up of those four permanent magnet rears.

12:24 For first time sort of first time viewers of the RAINBOW story on this webinar. Over here in this slide, we have the RAINBOW project at Paloborba. As you can see, those two stacks here are the gypsum stacks that are plus 30,000,000 tons of gypsum with associated acid water on top. Now on the top right hand corner of this photograph, you've got the old phosphoric acid plant that has been mothballed in 2014, and that was originally largely run by by Cecil until it was sold to Boschowl Phosphates who we did our deal with, and they ran it for two years, and then it was closed down in 2014. And and very importantly, next door you have the Hard Rock carbonatite phosphate mine that produced a concentrated phosphate slurry.

13:18 The rarest, which were present in the hard rock carbonatite, rent an economic value to mine just for themselves. But because they were now concentrated up in the phosphate slurry and pumped next door, they feed the phosphoric acid plant there. Phosphoric acid is required for the fertilizer industry globally. And what Cecil did was a key ingredient to add here was sulfuric acid and heat in the production of phosphoric acid. And then the various stages of phosphoric acid production, you finally created a gypsum residue, which was pumped onto these two stacks. And the rear is supported with the gypsum onto the two gypsum stacks in the waste residue. The slight yellow discoloring, you can see it at the very top on the right hand side of this photograph, is the old sulfur stockpile.

14:05 This sulfur stockpile feed the sulfuric acid plant on-site. Now the reason why I'm mentioning this is because these stacks sit in what's known as a cracked chemical form. Now all hard rock projects have to mine with crushing and well, first of all, drill and blast, then you have to haul to a process plant where you've got crushing, you've got milling to take the crushed rock into almost sand or powder form, then you have to, through a flotation process, produce a real earth concentrate. Once you've got a real earth concentrate, you have to crack it into a chemical form, and to crack real earth concentrates into a chemical form, you need two key ingredients. Sulfuric acid and heat. And this has taken place already at Palaburra.

14:52 And therefore, we have a crack chemical stockpile and we were able to go straight into an acid solution using sulfuric acid to leach the rare earths out of the gypsum and then go into the next stage, is to go into separated earth oxides further downstream than most rare earth projects go. Lots of rare earth projects in the world stop it either just producing a mixture of concentrate or they stop it producing a mixture of carbonate after the cracking stage or mixture of sulfate or mixture of salt. Because RAINBOW started with a crack chemical stockpile, we are able to we said, why must we stop at a mixture of carbonate? We're gonna go further downstream to capture capture 100% of the value and produce a mixed with sorry, separated red oxides.

15:38 If we only stop to the carbonate or sulfate, we capture 60% of the payability if we stop to that point, but because we're going all the way to separated red oxides, we are now capturing 100% of the payability. So once again, you can see that this is a low capital intensity project, below $300,000,000 and that's basically the price the CapEx footprint to that September last year. We will be doing an update of the PA CapEx for this ahead of the release of our definitive visibility study, which has already started and is well underway, and our target for our DFS is March 2024. Finally, just to have a look at our OpEx, as you can see our OpEx is very, very low at 33.86 per kilogram. This is the lowest in the Western world, we are aware of this And we believe it's even lower than Chinese cost of separated derived oxide, which puts us in a very, very strong price. And against that, that basket price down PDA, you can see this is driving our EBITDA margin of over 75%, which is a fantastic EBITDA margin for any mining project or any project for that matter.

16:51 We look at the RARE supply chain as I've been talking about it, just to give some more color to it. As you can see, we start with mining, then you have to produce a red concentrate, then you have to crack it. And then once it's cracked, you can then take it into a mixture of carbonate or mixture of sulfide sulfate or mixture of oxide for that matter, and then you go into the separation stage. RAINBOW starts with this cracked chemical stockpile, so are going to produce a mixture of sulfates, and then we're gonna go to do the final stage of separation and produce the four separated roof oxides that are very important for permanent magnets. After that, we have to supply a facility that takes it into metal and alloy because once you've turned it from metal to an alloy, you then feed a permanent magnet manufacturing operation.

17:45 And this is where there's a big bottleneck in the world right now, which is metals to alloy and then magnet manufacturing. Now the West is is very, very focused on on that on rolling out these steps in the strategic supply chain to create this supply chain outside of China. And we see a German magnet manufacturer, for example, called VAC, you've entered into an agreement with General Motors in The US to build a mega factory in The US and they are looking at also expanding their magnet manufacturing facility in Germany. But they have announced the rollout of the new magnet manufacturing in The US to feed General Motors in The US. Now there will be a mountain pass or been spoken about has been able to feed metal and metal to this plant, metalloid to this plant, but we know not in Boston are running quite late.

18:47 And RAINBOW, we believe, will be able to produce separated red oxides to feed one of these facilities in the very near future. And the fact that we are considering doing the back end of our separation in The U. S. Similar to what LIMITED are doing will create a very, very real presence for RAINBOW in The U. S. We've got that flexibility. It's come about because we split our pilot plant between doing the front end to produce a mixed red sulfate at Mintech in South Africa and then shipping a mixed red sulfate to The US where our pilot plant is currently undergoing construction at KTEC in Florida. And then there, they'll do the separated rare earth oxide, similar to what LIMITED doing but on the commercial scale.

19:34 Currently, we're doing it at a pilot plant scale, and then we will make a decision whether we want to do the commercial front end in South Africa and the commercial back end in The US. And we'll be making announcements on this shortly. Once again, RAINBOW is using a new technology to separate the roofs out of the mixed roof sulfates. It's called continuous ion exchange and continuous ion chromatography. It is a very tried technology. Continuous ion exchange is used in uranium plants all around the world. And myself and the RAINBOW team, in our previous life as MDM engineering, where we were part of the MDM engineering, we designed and built two uranium plants. So we're very, very okay with using continuous ion exchange and and plant process plant design. And then continuous ion chromatography came about the guys at KTEC invented CRC and sorry, continuous ion exchange, they also invented continuous ion chromatography.

20:40 Now this was used worldwide in other industries, food, biotech, phosphate mining, well as the chemical industry. So it's a trial and tested process, but we are for the first time, we will be using it at commercial scale to separate the areas that we are looking for out of the pallet board feedstock. So very, very exciting. It's a much lower capital intensity, much more environmentally friendly process compared to continuous solvent extraction, which is their day factor way for separating rears used by the Chinese, used by aligners and will be used by mountain pass. But we are going a slightly different route, which we've proven at bench scale and lab scale, and our pilot plant will be the final step of proving that our final stage of separation is totally dearest when we produce separated roof outside out of the pilot plant in Florida by the end of this quarter. So a very, very exciting time for RAINBOW.

21:38 I might add that there's a new company in Norway called Retek, which is also using a mixed earth carbonate to produce separated earth oxides and they're also using CICE. So you know, RAINBOW will be I think the first dinger on the large scale commercially, but it's interesting to note that VTEC and Norway are also gaining this fruit.

22:01 As you can see, these are photographs of our pilot plant at Mintec in Johannesburg. This front end of the pilot plants, they're already being commissioned. We'll be producing the first stage, which is a mixed red sulfate out of this pilot plant once again in this quarter. And that as I say is a dearest stage for RAINBOW. Because the mixed rare sulfate is using processes that are trying to test it, conventional processes in the rare earth industry we're using we're neutralizing the acid water we're using to wash the phosphoryl gypsum, we're producing a gypsum cake, then going into

22:42 an acid solution which will leach the areas out of the solution, then we go into continuous ion exchange, which is well proven to remove the fluoride, then we do what's known as the silica precipitation, then it goes into another acid leach and basically we then go into a salt, which is a strong agitated acid bake to produce a mixed rare sulphate. The salt process is used in many rare earth projects around the world. So once again, all the front end of this is tried and tested, proven technology, and we will produce a mixed rare earth sulfate, which is 60% payable, so that de risk rainbow as sits. And then the final separation will take place in Florida in our pilot plant there to prove 100% that our process all the way to separated red oxides are completely derisked.

23:33 Now as the pilot plant in Florida currently under construction and this is on target and on budget to be complete at the end of July and it will be ready to remove the to receive the mixed red sulfate from the front end being created at MINTECH shortly thereafter.

23:56 I think this is a new slide, which we haven't shown to this forum before, it's a very, very powerful slide. As we know, RARE EARTHS prices have been under pressure starting sort of last quarter of twenty twenty two and into the first half of twenty twenty three. And I said at the time when I published the PEA for Pettibor that we will be resilient to pricing shots in the RAREZ market. And my prediction was actually almost came true where I said we could withstand a 50% drop in RAREZ prices and we'd still be very, very profitable. Well, reals prices have come down by about 40 odd percent and they've started climbing slowly.

24:42 But if you look at the left hand chart there and

24:48 and also on the left hand side of that chart, you'll see that value of 78.46, that's the PALABOWR basket, which is below spot at the moment, so spot's higher. But the value of that basket, RAINBOW would still generate about $80,000,000 of EBITDA per annum. And that's very, very significant because I don't think there are many rare earth projects in the world, if any, that will produce that kind of EBITDA margin or even EBITDA at current pricing. And then we see as the basket price rises, RAINBOW's average EBITDA increases strongly. Our OpEx stays very, very low because it's more or less fixed. And we see very, very strong returns for RAINBOW.

25:38 So if we look at

25:41 that price of 20 of $2.16.54 for the RAINBOW basket, this would generate about $300,000,000 of EBITDA, and that would be circa 2029 pricing forecast pricing that RAINBOW would be able to produce $300,000,000 of EBITDA. But then if we but that's looking at conservative pricing. If we look at where we see pricing when RAINBOW is expected to be in production, which is 2026, we the first stage of production, we're looking at $100,000,000 $120,000,000 of EBITDA. And as we ramp up into 2027, we're looking at $300,000,000 of EBITDA in 2027.

26:28 If we look at forecast pricing at 2032 and in steady state, we're looking at at EBITDA numbers of roundabout 450 to $500,000,000 of EBITDA in 2032, which is not that far away in terms of the life of a project. So these numbers footprint RAINBOW's opportunity and very, very, very significant upside for RAINBOW even from very depressed pricing we see in RARE EARTHS right now. But all the forecasters, these are not RAINBOW's forecasters, but one thing about RAINBOW's forecast pricing is everyone's forecasting pricing to go up. Unlike a gold forecaster, gold price forecaster, you'd have some guys who will call the gold price up to $3,000 next month, and some guys will be calling gold down to $1,500 next month.

27:22 That's the nature of of forecasting the gold price. But one thing is very, very apparent with various pricing forecasts is that because of the thematic and the structural underpin of demand for permanent magnets and that feed those permanent magnets, everybody confirms that prices are going up. It's just with which forecast you wanna you wanna take into your your financial model. But under all forecast pricing scenarios, RAINBOW is a very, very profitable business based on Pelloborah and we have the opportunity now to replicate this with what we have in Brazil. Just to cover the ESG credentials once again, we know it's a brownfield site. We're using water in a closed loop. The water we are receiving is from those gypsum stacks, so we're gonna neutralize all that acid water, which right now is is sends to be an environmental risk. So we're cleaning up the environmental risk.

28:18 We will be redepositing the clean benign gypsum on a land stack site to IFC and equated principal standards. And we'll also be entering into an agreement shortly to sell part of this phosphoryl gypsum into the South African gypsum market. We will be, as I said, recycling the water and any discharge will be totally benign. We are also using sulfuric acid from a nearby sulfuric acid plant. In fact, when I say nearby, I'm talking about one or two kilometers away from the Paloborah mining company, it's a big copper mine. They have excess of sulfuric acid to get rid of every month. It's circa 10,000 tons a month And at Pettiborba, we're gonna be requiring between four and a half and 5,000 tons of sulfuric acid per month. So we've got ample sulfuric acid as a waste stream from next door, and that's fit into the optics of our PEA because, you know, when at the time of our PEA, our price that we were indicated we would receive from Pellobor was $95 a ton. Just to footprint this, Glencore, you're mining copper in The Congo and needs sulfuric acid, they were paying $450 a ton for sulfuric acid. So that just shows you how competitive our sulfuric acid, which leads into our financial metrics of RAINBOW.

29:43 And also, we're gonna be using renewable energy. There's a gigawatt of renewable energy being commissioned in the Northern Cape and South Africa between wind and solar that's being fed into the grid. There's there's two licenses that have been issued in South Africa to wheel this green power off the grid. And we are already in negotiations with one of those license holders, and we've got an agreement that we'll be able to wheel the power that we require off the grid at Pelobora. And we're only gonna need about 10 to 12 megawatts of power, very low. A normal mining project, your power cost would be about 50% of your OpEx. At Pelobora, we will be below 20% of our OpEx for our power. So once again, just shows you the green credentials of this project.

30:31 When I have a look at where we are, we've had strong progress since the fourth quarter of twenty twenty two. And by quarter three of twenty twenty three, all the work streams for our Definitive Feasibility Study are underway, which I think is key. We've also been able to increase our project pipeline. As I mentioned, the MOU signed with Mosaic on the Ubarabba project is very key. The reason why I say this is very key is because the

31:02 Ubarabba project is almost copy and paste of the paddleboard project. It's hard rock carbonatide mining. It's producing a phosphate slurry, feeder, a phosphoric acid plant. The phosphoric acid plant requires sulfuric acid and heat to generate the phosphoric acid for the Brazilian fertilizer market and then they produce gypsum waste residue which sits on a massive stack at Ubaraba. Very importantly, they produce their own sulfuric acid at Ubaraba similar to what Sasol did in South Africa. That means for our plants at Ubaraba will have a very, very cheap source of sulfuric acid to feed into the OpEx number of this project.

31:47 So this I think the fact that we were able to sign this with 11,000,000,000 or $12,000,000,000 company gives RAINBOW EARTHS IP and technology a huge amount of credibility. And as I said, we're already testing testing the the samples in in Canada. And also be because we of all the lessons we've learned at Kalaboa and the first sheet we've been able to develop and all the tests that we've done, we know a large part of this will apply to the Ubarabra project. Not all of it because no two ore bodies are the same anywhere in the world. So they carbonatide, even though it's a carbonatide, it's hard rock. It will have different characteristics to the one in Paloborah, but a large part of our flow sheet will be applicable. So we see that we'll be able to progress this project along very, very quickly. We are also working with OCP in Morocco.

32:40 But OCP, as I've always said, is and told the market, it's a sedimentary phosphate source of phospho gypsum that they're generating at Pelleboa, it's very low grade. So we are looking at ways of being able to upgrade that phospho gypsum feed in terms of the area of content and only then will we be able to do something with it. But that's a far slower project. Is progressing as I've said, but it will be at slower pace than Umarabha. So our focus right now is delivering Talaboa, which is a near term, very, very high value project. And in parallel, we'll be able to move the Ubarabo project along relatively quickly because of what of all our knowledge that we have out of Kalaboa.

33:29 And also lastly, the environmental process started by WSP Gold, a global engineer sorry, consultancy, EIA consultancy is progressing very well. I think key takeaways just on Talibor alone, if we look at when we forecast to come into production in 2026, our NPV at a very conservative discount rate, post tax discount rate jumps to over $1,000,000,000. We've got an IRR of over 40%. We'll be generating, as I say, circa $310,000,000 of EBITDA per annum, and our EBITDA margin jumps to over 80%. So also, we've got a strategic advantage now, we've got the flexibility to be able to do the back end separation in The US, which will give us US presence, start making us, I think, important to US investors who can start looking at RAINBOW from that point of view. We know US investors like anything to do with American. The fact that we will be on shoring this if we decide to do this, we would be on shoring this separation on USO. We think we'll carry favor with US investors.

34:42 And we've got a large amount of geographic diversification, which no other earth project in the world has on my head. All earth projects in the world right now are single project companies, and RAINBOW will be unique in the sense that we will have this geographic and project diversification of two low capital intensity projects, very low OpEx that will be able to stand the vagaries of RARE EARTHS pricing, which we know most of those projects in the world will battle to be able to to operate under trying RARE EARTHS pricing that we have at the moment. But even at these RARE EARTHS prices, as I mentioned earlier, as you can see back in our presentation, RAINBOW will still be a very, very profitable company. So I would like to thank you for your attendance, and I will now go to questions. Thank you very much. George, thanks very much for your presentation. George, perhaps to start with, we did receive a number of pre submitted questions from investors.

35:48 So I'll read the first one here, which reads as follows. Please could you give an update on the Gakkara project in Burundi? And what is the likelihood of it proceeding in the near future? So Burundi is still on care maintenance. It's a very, very low cost to keep keep it, Ken, and maintenance for RAINBOW. And right now, we are just waiting to engage with the Burundi government. They just, I think, six weeks ago, passed a new mining act in parliament. And based on that new mining act, the government has said they would like to start negotiations with RAINBOW. So we are waiting for that finalization of a meeting date. But can I do would just like to stress that it will be a fairly slow process, I think, in negotiating with the government? This is the nature of negotiating with governments.

36:47 There's no danger of RAINBOW losing its license in Burundi. But it's also very, very small in the size of what we have in terms of RAINBOW's overall sort of value as a company to footprint Borinia right now in terms of EBITDA. Even at full scale commercial production, at current risk pricing in a broadly would be able to generate more than $5,000,000 or $6,000,000 of EBITDA, whereas RAINBOW would generate plus $80,000,000 of EBITDA. And then we will be also looking at the opportunity in Brazil. So I think that speaks for itself. Perfect. The next one here reads as follows. When the pilot plant is dismantled from Mintek, will it be reassembled?

37:34 And if so, where? So the pilot plant at Mintech, I might stress that it's Mintech's pilot plant. You know, part of the equipment has been purchased by RAINBOW, but the majority of the equipment is based at Mintech. That's why we use in Mintech. They're a big r and d parasitic in South Africa with a world class reputation, and lots of the equipment is there. So, no, we won't be dismantling and taking it away. We'll only take bits and pieces that belong to RAINBOW. But once again, we will be looking at doing another pilot program with the Brazilian opportunity, which they are saying, you know, I say shortly, it would be fairly quick compared to when you find a new discovery and the time it takes that new discovery to get you piloting. We'll be piloting Brazil relatively quickly and we'll be using part of that equipment for Brazilian pilot.

38:28 The equipment at KTEC, it's all RAINBOWs and we'll take a decision on what to do with the final back end separation pilot plant at KTEC's offices or laboratories in Florida. But we haven't come to a final decision yet. That's that's great. Thank you for that. Is Morocco still being considered slash assessed as you briefly alluded to in your recent interview? I've just covered Morocco. As I said, we are busy with test work there. As I said, it's a much slower opportunity. We are assessing it. I've always as mentioned, it's a much lower grade in the in the sedimentary phosphate deposit. So we've got some work to do there, and we are working with u m six, which is the the university in Morocco as well as OCP themselves.

39:19 And this is progressing as I mentioned. Perfect. That's great. Moving on to the final pre submitted question. Your previous capital raises have been at a premium to the share price on the day, which is unusual for a pre revenue junior miner. Have you achieved this, and what's been the benefits? Look, I think we've achieved this because we've been able to convince investors that, you know, RAINBOW has got a lot more value than what the share price is reflecting. And that's proven by by the premiums every raise I've done since I've I've been at RAINBOW. I think the people that you've come into these fundraisers at a premium are people who you believe in the long term story of RAINBOW. They're not stakes. You're looking for 20% discount to the spot price and sell immediately once once they receive their shares through a raising.

40:09 So we've been able to to be able to raise as a premium from people who believe in the RAINBOW story, believe in the the teams that had been able to deliver that that value that will eventually come out of RAINBOW. So I think it's been very, positive. Perfect. George, that does conclude the pre submitted questions. But as you can see, we received a number of questions throughout today's live presentation. If I could just hand over to you just to read out those questions and give responses where it's appropriate to do so, I'll pick up from you at the end. Yeah. So I've got a question here. What's the backup plan for the rare earth oxide extraction in the event of the RAINBOW RARE technology not working? We don't have a backup plan because we know it works, to be honest. I'll be very blunt. We know the process works.

40:57 If you, for some hallelujah reason, the final separation didn't work, the front end process, which we know does work, would still generate, at PEA pricing, about a $120,130,000,000 dollars of EBITDA. So the front end part of RAINBOW's process makes RAINBOW a very, very profitable company. But as I said, the final back end, we know it works, so we don't have a backup plan. Next one is does RAINBOW have a KTEC license for Morocco? No, we don't, but this is not apparent because Morocco bought the KTEC technology a few years ago to separate uranium and thorium out of their phosphorylipsum.

41:45 So once again, as I alluded to, we know the KTEC technology works. This is why OCP, the biggest generators of phosphorylipsum in the world, bought their technology. But they didn't preclude OCP from signing a master agreement with RAINBOW because of what we've done at the front end, which we've also been able to go into a patent application with. The next one is what's the ballpark value to RAINBOW should the Brazilian project proceed into operation? I can't answer that question other than you look at Pettibor metrics and you look at the size of the opportunity in Brazil and you can draw your own conclusions. But, no, I wouldn't we haven't done the work yet and anything any statement I made on this would I would have to get signed off from Mosaic.

42:36 So at the moment, you can draw your own conclusions. But needless to say, this is a major, major opportunity in Brazil, and we would expect very, very good good financials to come out of this or financial metrics, I should say, to come out of it as well as low capital intensity. Any other questions? Sorry, I see. Would RAINBOW consider disposing of the Kukara project? I have no liberty to say that other than we'll consider all our options once we are given the go ahead start remining in Burundi. Given given the take from my presentation that we are focusing on secondary sources of risk now, that's all I can say.

43:28 Next one says, how would you manage your ongoing power outages in South Africa? I think I've answered this partly with the fact that we are going to be reeling green power off the grid. So we're not concerned about the power. Also, I might add that it's well documented that the power shortages in South Africa, but what doesn't get documented is that the mines actually don't suffer many power disruptions because the mines are you can't have a mine losing power when you've got, you know, mine workers two or three kilometers underground, and you need to bring them to surface. So the mines suffer very, very little power outages. And, you know, at Paloborvo, we would would expect to see a similar a similar result for with our power. But as as I said, we're not a big power draw.

44:18 And if wheeling off the grid didn't work because the grid started faltering, we then introduced solar power ourselves. And Palobor is one of the hottest places in South Africa, so we'd have very, very good results if we put our own solar power plant, which would be circa 10 megawatts, which is not big by anybody's standards. Would you look to list on The US market? As I mentioned, we've got the flexibility now to onshore part of our separation on US soil, and that would then we would then have to consider that. Yes. Any other questions?

45:11 When will the DFS be complete? This will be our target date is March 2024. And then after the completion of the the DFS, we will go into financing discussions. And the intention is to hopefully be able to start construction in the last quarter of twenty twenty four for our process plant at Talabo. I might add that the DFC, which is the US government, have indicated to RAINBOW that they would be happy to look at being a project funding partner, in other words, a debt funding partner for RAINBOW. And as I said, they are already invested in RAINBOW through Topco with only 12% of RAINBOW.

46:05 Would I list them to JC? No. I wouldn't at this stage. Okay. George, thank you very much for that. I think you've addressed those questions you can from investors. And, of course, the company will review all questions submitted today and will publish those responses on the investor meet company platform. But just before redirect investors to provide you with their feedback, which you know is particularly important to the company, George, could I just ask you for a few closing comments? I think I've covered most things for the investors, hopefully. We as I said, we are making very good progress since our last presentation. The pilot plant is going along very, very well, both at MINTECH and the board at in Florida.

46:52 We expect to get these produce a mixture of sulfates, as I said, within the next couple of weeks the next few weeks, I should say, will be this quarter and we'll also be able to have the separated red oxides by the end of this quarter out of the plant at in Florida. So we've got two massive derisking steps for RAINBOW. But as I said, the first step is, in my mind, is already derisked because there's no doubt that we'll produce a mixture of sulfate, which makes RAINBOW a very, very profitable company in its own right just based on the 60% viability of the sulfate. But as you know, we're going all the way through to separate oxides. So I think the future for RAINBOW looks very good as well as the exciting MOU with Mosaic in Brazil.

47:39 Well, it's Mosaic in New York actually, but it's a project in Brazil, which gives RAINBOW lots of credibility for the marketplace as well. Thank you very much. Perfect, George. Thank you once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order the management team can better understand your views and expectations. This will only take a few moments to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team of RAINBOW RARE EARTHS LIMITED, we'd like to thank you for attending today's presentation, and good morning to you all. Thank you.