Company Statement: Rainbow has two major rare earths opportunities in Africa: the Phalaborwa Project in South Africa and the high-grade Gakara Project in Burundi, East Africa.
Rainbow’s strategy is to become a globally-significant and responsible producer of rare earth metals, with a particular focus on NdPr – the fundamental building blocks for the permanent magnets driving the global green technology revolution.
| Close Price | 12.25 |
| 52 wk Range Low | 10.50 |
| 52 wk Range High | 18.50 |
| MCAP (m) | £64.24 |
| Implied EV (m) | £67.39 |
| Index: Public | XLON |
| Financial YE | 30-Jun |
| Reporting Currency | USD |
| Listing Currency | GBP |
Business Activity
Mining / Rare Earths
Key metrics
| Gross debt (m) | -£0.70 |
| Cash (m) | -£3.85 |
| Net Debt (Cash) (m) | £3.15 |
| Net Operating Cash (m) | £5.89 |
| Revenue (m) | £0.11 |
| Net Income (loss) (m) | £0.00 |
Key ratios
| (Net Cash) /Shareholder Equity % | 4.90 |
Mining Sector Research
LSE Market Index
ACF Mining Team
+44 20 7419 7928
mining@acfequityresearch.com
Rainbow Rare Earths Ltd (LSE: RBW; OTCPK: RBWRF) is a rare earths (REE) explorer with projects in South Africa and Burundi. The flagship project, Phalaborwa, in South Africa has an inferred resource of 38.3Mt at 0.43% TREO (total rare earths oxides). Phalaborwa is largely permitted and positioned in an established mining town with existing power, rail access and availability of skilled labour. Rainbow owns 90% of the Gakara asset in Burundi, which has produced high-grade TREO concentrate of 52-56%, weighted towards NdPr (Neodymium and Praseodymium), which account for 19.5% of contained TREO and 85% of the value of the concentrate. There is additional project de-risking via separated RE oxides production, a possible extraction patent and licensing of extraction technology. READ MORE…
➢ REE overall recovery >65% (vs. usual industry rate >40% to <55%)
➢ Phalaborwa: 5-10x grade higher than typical ionic clay REE deposits
➢ Significant NdPr to leverage global transition to green technologies
➢ Cash & CE £5.24m as of 1H22 (31 Dec 2021)
RBW (lighter line) AIM market vs price relative
Rainbow Rare Earths: A low-cost rare earths explorer than could sell direct to western markets (avoiding Chinese beneficiation) is positioned to power the green revolution through significant NdPr production potential, exceptional overall recovery rates >65%, separated oxides delivery, leading to receipt of ~85% of published oxide prices, potential extraction technique licensing, possible patentable extraction technology and rising demand driven by growth in green technologies often requiring REEs.
World-class scalable projects – Phalaborwa in South Africa and Gakara in Burundi.
Shift towards green technology supports demand prospects – Demand growth drivers – accelerated electric vehicle sales
Viable supply alternative to China – China currently accounts for 85% of the refined RE global supply.
Proven management team – CEO George Bennett founded MDM Engineering (listed on LSE and sold to Amec Foster Wheeler for US$ 120m in 2014). READ MORE…
➢ Completion of PEA and technical feasibility study for the Phalaborwa
➢ Higher NdPr prices
➢Success of pilot study to extract REEs from phosphoric acid production
➢Green tech magnet demand growth
Operational Strategy
Rainbow’s strategy is to become a leader and significant low-cost global producer of rare earth metals powering the green revolution. REEs are a highly sought-after resource given their use in green technology and low carbon applications.
Phalaborwa – The Phalaborwa project has an inferred mineral resource estimate of 38.3Mt at 0.43% TREO.
Gakara – This project is a high-grade deposit. Since 2017, trial mining and processing have demonstrated amenability of the project to simple open pit mining and low-cost gravity separation.
Potential licensing of RBW/K-Tech process – RBW signed an MoU, June 2022, with a major South African chemical company to complete a test to extract REE from a live phosphoric acid stream. READ MORE…
I am a financial analyst, entrepreneur, professionally qualified equestrian and amateur eventer. Amongst others, I trained as a financial analyst at Global US based fund manager Legg Mason Investors and have been head of Technology and Media Equity Research at Bryan Garnier, a pan-European investment bank and brokerage.
I founded ORACA Independent Equity Research a ground breaking highly independent thinking large-cap secondary comm business and ACF Equity Research, a very high-quality independent issuer-pays small and mid-cap research business. I opened our first corporate finance business (Destrier Partners) and am approaching the launch of our first non-financial services business. In my view, I am only able to do these things because of the quality of the team I work with at ACF. For 11 years I broadcasted as an expert guest and wrote regularly in the leading pan-European and international media including Bloomberg Television, BBC Radio 4 and the Financial Times.
I studied Biochemistry at Kings followed by Economics at LSE and can conduct business in English and French, I speak German and have basic knowledge of Spanish and Italian. My free time, which I make sure I carve out, is in part each day spent on my passion – riding, competing with and caring for my horse(s).
I have managed over 20 IPOs in the US, UK and Europe from small to large cap, I am proud to be ACF Equity Research’s Non-Executive Chairman.
I am also Executive Chairman of Texadon Oil Plc focussed on oil & gas production in the Texas Gulf Basin and is a Non-Executive Director of UK AiM listed Diaceutics, a diagnostics commercialisation business. I am a life sciences communications expert and have a background in large and mega cap pharmaceuticals.
During my more thann 20 IPOs and secondary raisings I have brought in well in excess of £600m.
In addition, I have co-founded a number of life science start-up companies in Europe and the USA.
I am a life science communications expert and former life sciences CEO (large to start-up). He graduated in microbiology and lectured to science undergraduates in both the UK and Nigeria. He joined the pharmaceutical industry, working in a number of senior sales, marketing and clinical roles for Glaxo, SmithKline and Wellcome in the UK and overseas.
Appointed IR Manager for Wellcome, I helped organise its global roadshow for a £2.4bn secondary offering.
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Formerly MD at De Facto Communications, Bell Pottinger’s healthcare offering, I recently retired from Walbrook, the UK’s most successful SME PR/IR agency.
Joining ACF at its founding I started in financial services in 2007 on the sell-side with ORACA, a large-cap independent equity research business that changed the industry. Before financial services I was a highly successful and rapidly promoted young manager in manufacturing and have worked closely at board level for over 15 years with SMEs in the City and in other financial markets.
I co-run ACF with our MD, as Head of Operations, responsible for driving profitability and developing and designing processes and managing projects for ACF and for client partners to allow our portfolio of businesses to grow. I am bilingual English/Romanian, read Italian and am working towards my accountancy ACCA qualification with AAT.
I love to relax by making time for my favourite out-of-hours activity – photography – taking my first formal nature course in May 2018. I have a keen understanding and interest in horses, though not a rider, this is combined with a life-long love of polo.
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I also wrote award winning research notes and met with senior politicians with varied global and local interests in both wealthy and less developed economies. My sector expertise includes natural resources (particularly oil & gas) healthcare, manufacturing, infrastructure and investment portfolio management.
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Before joining ACF Equity Research, I worked with Japan’s second largest brokerage, Mitsubishi Bank, in the London office. I speak six languages including English (native), Italian, French and Arabic and obtained an MBA in Rome and a Mathematics degree from a sister Ivy League – Smith College. I joined ACF because of its entrepreneurial, female friendly City culture, overarching global values and excellent growth prospects.
I have considerable experience in the wealth management and private banking industries. I am co-author of the Platforum UK Wealth Management Market Overview report, and previously was Research Director at PAM Insight, a specialist publisher for the wealth management industry. I engage in research and analysis both qualitative and quantitative and am an experienced project and business development manager. I have been commissioned by UHNWI's, companies and organisations for various bespoke projects.
I also contribute to major news and media organisations, compiling and analysing data and research for the Daily Telegraph and Evening Standard on national government and environmental issues. Prior, I contributed to the Guardian, the Spectator, BBC news and investigative programming, the Sunday Times, and the Sunday Times Rich List.
My interest in ESG and sustainability is focused on raising awareness and achieving practical and workable solutions to the climate crisis we are facing. I enjoy spending my free time with family and friends, watching cricket, theatre and film.
I have strong analytical, planning and execution skills, I love working as part of a team both inside ACF and externally with our clients and prospective clients.
I am used to working with and within senior leadership teams and understand the needs of small and medium sized companies through my current and previous professional experience, I graduated in life sciences with a specialisation in Ecology and Environmental Protection in Romania in 2007 and for my first job I worked in a laboratory carrying out chemical analysis of industrial waste-water.
I am passionate about the environment and work as a volunteer for the Sussex Wildlife Trust doing conservation work at the Old Lodge nature reserve. In my spare time I am a school governor and have been a juror at the Royal Court of Justice. My hobbies are dance, horses, swimming, opera and theatre.
Zak Mir has 30 years financial markets experience and understands credible influencing across digital channels in order to drive stock liquidity. He is an accomplished author.
I am part of ACF’s advisory and execution team helping growth companies (nano, micro, small and mid-cap) maximise their profiles to achieve the optimal investment message.
Amongst others I have worked for Man Group companies, Berkeley Futures and Sucden. I have been a technical analyst, derivatives broker and Chief Market Strategist for a number of brokers in the retail space developing and optimising client trading strategies. I ran the well-attended annual Master Investor conferences and am a keynote speaker at the UK investor show. I also host the CityAM Podcast.
Analytical communications is part of my forte – I have variously been a markets columnist, editor and commentator for influential retail financial information outlets, amongst others – Investors Chronical, Yahoo! Finance, Shares Magazine, international leading long-form periodical The Spectator, CNBC and Bloomberg TV.
Away from the markets, I am a song writer and musician and have a long and patient interest in politics – areas that continue to be potential additional professional careers.
I was attracted to ACF because of the effectiveness of its high quality research and its forwarding thinking culture.
I’m a Modern Marketing Strategist with a strong CXM, digital transformation and innovation background working with global blue chip clients, modern creative and media agencies and start-ups.
I put people, data, technology and brand at the heart of everything I do – always delivering highly creative and effective integrated solutions with engaged, excited teams. I believe in taking everyone from the Account Exec to the C-suite client with me on the journey.
I work with Global clients as easily as entrepreneurial start-ups across a broad range of categories from Automotive to FMCG, Financial Services and Technology. My recent focus has been on Digital integration; Relationship Marketing; Content Planning and Brand evolution.
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Adrian has over 20 years investment research writing, editing and supervisory analysis experience for leading investment banks including Barclays Capital, UBS, BNP Paribas, Jefferies, S&P, Danske Bank, ABN Amro, Lombard Odier and Bear Stearns.
He has a deep understanding of his subject. Adrian has executed editing and supervisory analysis for investment banks, brokerages and fund managers. He has up-to-date knowledge of the operational and regulatory framework for international institutional equities markets. Adrian is a materials scientist and has languages
