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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Rainbow Rare Earths Limited | RBW | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 12.25 | 08:00:29 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 12.25 | 12.225 | 12.25 | 12.25 |
| Industry Sector |
|---|
| MINING |
| Top Posts |
|---|
Posted at 21/4/2024 21:23 by odsjp I don't subscribe to the FT but can read the article so it must be outside their paywall and available to everyone.Great article, well done FT and George. Seems to hit the nail on the head... Harry Dempsey in Phalaborwa 16 HOURS AGO 22 Print this page Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. A site close to Kruger National Park in South Africa is becoming a testing ground for US attempts to fight China’s global dominance in critical minerals. Washington has committed to finance a little-known London-listed miner hoping to extract rare earths — a set of 17 minerals key to clean energy technologies — from the chalky stacks outside the safari park, as the US seeks to challenge China’s runaway lead in accessing the metals globally. But a 63 per cent drop in rare earth prices since the start of 2022 has called into question the project’s ability to raise funding. The fate of the $300mn mine at Phalaborwa may echo that of others aiming to extract critical minerals for the west, and raises the question of whether US support is sufficient to build up a counterweight to Beijing. The project, whose site is visited by kudus, springboks and buffaloes, is close to completing a feasibility study on the economics of extracting minerals from gypsum waste generated by old phosphate mines — but it still needs to raise another $250mn. “The question is ‘given the basket price for rare earths, does it make sense to move ahead?’,” For the White House, tackling Chinese dominance is a strategic priority: China is home to 70 per cent of rare earths mining and 90 per cent of processing capacity, according to the International Energy Agency. That gives Beijing a near-monopoly on permanent magnets used in electric vehicles, wind turbines and fighter jets. China also controls the supply of other clean energy resources such as graphite, cobalt and nickel. Washington has been seeking to invest in its own future supply. The US International Development Finance Corporation (DFC) has invested $105mn into TechMet, a $1bn critical minerals fund, which has pledged $50mn of equity for Rainbow Rare Earths, the company behind the mine, when it is ready to start raising finance to build the plant later this year. Nisha Biswal, DFC deputy chief executive, said the state entity expected to increase investments in African critical minerals, with this year’s total likely to exceed last year’s $700mn. “This is just the start,” she added. A key element of that is financing projects such as the Lobito Corridor railway to connect a port in Angola with copper mines in the region. And beyond the DFC, Washington is providing incentives for the construction of US processing plants through the Inflation Reduction Act. Yet recent price slumps in lithium, cobalt, nickel and graphite — all ingredients in electric vehicle batteries — have prompted western producers to shut mines, cut production and reduce expansion plans. Among major miners, BHP is considering closing Nickel West in Western Australia; Albemarle, the world’s largest lithium producer, has cut back spending plans; and Glencore is reducing cobalt output. Analysts say these projects are at risk from price fluctuations because western efforts to support the sector remain piecemeal and flawed against China’s multi-decade lead. Rainbow Rare Earths says projects such as its own will be vital to western energy security © Rainbow Rare Earths Chinese producers are often integrated with industrial activities or receive state-backed financing, enabling them to power ahead even in commodity downturns. Rainbow Rare Earths argues projects such as its own will be crucial to western energy security. “Your green energy, wind turbines, electric cars, drones and handheld cell phones all have rare earth elements in them,” said George Bennett, chief executive. “Sources outside of China to give the west some kind of independence are very important.” Amos Hochstein, the US government’s chief energy security adviser, said the future energy market could fall into similar traps to those seen with fossil fuels. “My concern is that the worst of the 20th-century energy architecture will be repeated in the 21st century,” Hochstein said. “It would maybe be worse because, instead of a group of countries that control the supply, there’ll be a single point of failure or a single point of ability to manipulate global supply and prices.” In particular, investors fear China may flood the rare earths market as it has done periodically since the 1980s. Beijing influences supply and prices through tax policies, quota systems and export restrictions, but denies exerting control to damage competitors. Beijing’s foreign ministry said: “The so-called claim that China controls market prices through dumping and other means is completely unfounded. In the era of globalisation, the interests of various countries are deeply integrated.” It added that global supply chains reflected the “functioning of economic laws” while China “always adheres to the principles of openness, co-ordination, and sharing, playing a positive role in the security and stability of the global critical mineral resources production and supply chain”. Still, prices have been volatile. Prices for neodymium-praseodymi Such pricing “seriously jeopardises non-Chinese producers and exploration projects”, said Ellie Saklatvala, head of non-ferrous pricing at Argus. Recommended Rare earths Mining billionaire Gina Rinehart builds rare-earth stakes in push for non-Chinese supply Rainbow’s Bennett argues Washington needs to consider stockpiling rare earths and other critical minerals by guaranteeing a minimum price for producers through long-term supply contracts. He would be willing to sign such a deal despite it also placing a ceiling on the prices that the mine could receive. Some other western miners have secured supply purchase deals with companies: Australia’s Lynas, which received concessional financing from Japanese government entities, reached one with Japan’s Sojitz conglomerate, while MP Materials in the US signed a deal with General Motors. This month Gina Rinehart, Australia’s richest person, revealed she had taken minority stakes in Lynas and MP Materials, fuelling speculation that merger talks between the two largest rare earth groups outside China, which ended in February, could be rekindled. Stifel’s Breichmanas said the Phalaborwa project “warrants̶ “The US government needs to become the buyer of last resort,” said Bennett. “It’s a chicken and egg [problem]. You can’t build [manufacturing] capability because you don’t have reliable supply. You can’t create a reliable supply unless you’ve got a buyer of it.” That would also solve another strategic problem for the US, Bennett said. The country has no rare earth alloy producers or magnet manufacturers, but any downstream producers would need reliable supplies of affordable material to secure their own funding. The US International Development Finance Corporation has invested $105mn into TechMet, which has pledged $50mn of equity for Rainbow Rare Earths © Rainbow Rare Earths For its part, Beijing is no stranger to stockpiling during market gluts, making record purchases of cobalt last year for its strategic reserve. The US Department of Defense stores critical minerals in the National Defense Stockpile, but its value has dropped from $9bn in 1989 to less than $1bn, or below 0.3 per cent of annual demand globally, as of March 2023. “For the American and European supply chains to be built, you need a surety built by the government,” said Matthew Ashley, senior cobalt trader at Traxys, a Luxembourg-based trading house. Brian Menell, chief executive of TechMet, said that despite the efforts of funds like his, “the problem of future shortages and Chinese control is growing day by day”. He added: “It’s the product of manipulation and the short-term view of western markets.” Additional reporting by Wenjie Ding |
Posted at 05/4/2024 10:46 by napoleon 14th Quite so, PC. The issue is not the company so much as "investors'" attitudes.2026 is when the rewards should come for those who know how to LTBH, not the instant gratification the consumer society has been programed to expect. I'm here because, fundamentally, George Bennett has done it before with MDM & others, and is highly likely to do it again. If he does, the rewards will be exceptional. GLA. |
Posted at 04/4/2024 10:44 by archie222 For those who havn't seen yesterdays Investors Meet presentation on Interims. |
Posted at 03/4/2024 22:01 by perfect choice Just listened to recording of presentation which you can see if you registered for the event (but I couldn't attend today), not sure if available elsewhere yet other than from the Investor Meet Company.Agree Napoleon 14th, all solid progress and going in the right direction. First stage is effectively done at Mintek and several optimisation activities identified and completed, to be announced not too far away it seems. All OK on 2nd stage with K-Tech as well. Still in "work in progress" stage, anticipated re-rate was mentioned a couple of times. Expect that to be achieved at key milestone achievements on the way. Other useful snippets raised as well, notable comment made about independently auditing each stage of the pilot process via a third party (mentioned in video but cannot recall right now) which means its taken a little longer on the pilot work but helps the DFS timescales and subsequent financing, so reason being done. So check out the video when more widely available as it should be in a few days. |
Posted at 03/4/2024 10:46 by napoleon 14th We could be getting an update here:This is a reminder that RAINBOW RARE EARTHS LIMITED will be holding the meeting Interim Results today at 11:00am. You'll be able to enter the meeting up to 15 minutes before the scheduled start time. Meeting Date 3rd Apr 2024 at 11:00am BST, Duration 1 hour Webinar ID 64c9bc1cc72a Dial-in available (listen only) Tel: +44 1793 250421 We have 15 minutes to log on via hxxps://presentation _________ I'm hoping, principally, for a positive update on the points raised by archie above and, who knows?, some idea about how the REE-hungry US are going to help with the financing of the main production unit at Phala. |
Posted at 28/3/2024 13:18 by archie222 To be fair GB has flagged the need to raise more working capital in his many previous video comms to investors - so no surprises there. The big(ish) dilution will come when raising the 1/6th equity for the $300m needed to put Pb into production.Still looking more, or less on track for me - albeit with one or two delays which shouldn’t be too surprising given what the company is trying to do. [addendum] Two big things remain though. 1. The need to nail the production of REOs in Q2 as advertised and at the 99.5% purity specified. 2. The ability to scale up to realistic volumes so as to meet PEA profitability expectations [SP Angels gripe]. |
Posted at 26/2/2024 11:19 by cp42kx07 n14th:I suspect you're right - the concept of a 2 year investment timeframe would fry the "brains" of most modern investors who are herd / meme driven (currently AI) from day to day! RBW certainly continues to enhance its future prospects with today's Phalaborwa resource update. I look forward to the DFS later this year. Perfect Choice: I assume that process refinements to the required level(s) will take some time (and indeed will be ongoing) so I'm not expecting anything definitive for many months. I'm not aware of any target dates announced for this part of the project timeline. I'm hoping for an eventual 40-60p share price based on Phalaborwa but Uberaba has such amazing potential that once the process has been validated for that site and an agreement signed we could be looking at multiples higher again (although this too may take longer than we'd all like!). |
Posted at 13/2/2024 08:07 by maccamcd The Miner Details: Rainbow offers huge opportunity ? Theme of the week Rainbow offers huge opportunity: We continue to believe that Rainbow Rare Earths' share price is completely mispriced by the market. The story receives the usual pushbacks from the market such as market capitalisation, liquidity, and Chinese dominance and manipulation within the rare earths space but we continue to believe that patient investors will return multiples of their investment in this equity. One point that really hit home during our recent site visit to the project, which is located c420km north-east of Johannesburg, is that it is at an established industrial site, with access to all of the key items that generally can prove a headwind for new projects such as power, water and consumables with sulphuric acid expected to be sourced from the nearby Palabora copper mine and other consumables, such as lime, also expected to be sourced nearby, using well-developed local transport links. Further, it is important to note that the rehabilitation liability on the Phalaborwa phosphogypsum stacks is fully funded by Sasol, which is another positive. We also believe that management, with broad experience in the construction of multiple projects across Africa, has the requisite expertise to deliver the project, and our expectation is that capex will be in line with the preliminary economic assessment (PEA) estimate of USD295.5m, while multiple opex savings opportunities are likely to further enhance NPV. Rare earth prices have been weak but, if we take a step back, we think this project will be one of the highest-margin rare earths projects globally, if not the highest-margin, offering through-the-cycle FCF generation. A key question among some investors concerns the continuous ion exchange/continuous ion chromatography (CIX/CIC) process to produce separated rare earth oxides; management is confident that it has undertaken the test work to successfully deliver this, and we expect confirmation of production of separated rare earth oxides at the targeted quality and recovery rate in the near term. We also expect a resource increase, adding project life (also near term), and expect multiple further developments on Phalaborwa, which is backed by the US International Development Finance Corporation through its investment in TechMet. In our view, this stock has near-term and medium-term (the Uberaba joint venture in Brazil with Mosaic) catalysts, and we reiterate our Buy recommendation, with the shares offering meaningful upside. |
Posted at 16/1/2024 09:53 by maccamcd Stifel organised a roadshow for RBW in USA last year which went down well I heard. I'm assuming when RBW needs development funding alongside US govt and others later in the year, Stifel will bring in other US investors.No reliance on dull UK instos bidding discounts. The US investors will compare against MP Minerals $3bn mkt cap and RBW's $115m and scratch their heads and pay a nice price to join our club. |
Posted at 16/1/2024 09:09 by perfect choice Yep, further evidence of the USA focus for RBW and a better route for USA investor involvement. I haven't got the source of this now, but I am sure I either read or it was an answer from a Q&A session after a presentation, that USA investor interest is anticipated after the RE Oxide production results are published, so a threshold stage for investor confidence. We have now started the K-tech pilot plant so that threshold is not too far off then, so sensible timing to get Stifel on board as joint broker. |
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