Rainbow Rare Earths Share Discussion Threads

[runthejoules] 10/8/2017 08:04

Bought a few more at 11.44p

[runwaypaul] 10/8/2017 08:01

Imin for a few gl

[bookwormrobert] 10/8/2017 07:57

Or not, Shakeypremis. Beware this RNS, it really is pumping not much very hard with its talk of "fantastic news". I sniff an ulterior motive, and I'm not liking the smell.

[croasdalelfc] 10/8/2017 07:57

Earle's is confident : he has tried to inform us approx every 6 weeks of progress and the news just gets better.I have been hesitant to invest further due to possible political unrest, the country manager selling and uncertain basket prices although my guess was always that they would get about $5k gross a basket.I'm going to buy a few more now but I'm fully invested elsewhere so it's a tricky one

[shakeypremis] 10/8/2017 07:53

Appears to have been a really badly timed sell by that Country Manager.

[shakeypremis] 10/8/2017 07:52

Yes, these latest numbers blow all previous numbers out of the water.

As you say, even at $5,000/tonne that's $25m/year.

Costs from memory of $1090ish/tonne so around $3900/tonne profit, let's say $3000/tonne profit, that's $15,000,000 profit per year at 5000tpa.

[croasdalelfc] 10/8/2017 07:39

The way I read it is:TReO is 62% and the plant processing will make it more concentrated.TK will buy when the basket is over 54% - from memory.The more concentrated the more money per basket tonne for both TK and RBW.Prices have risen 33% so possibly $8k a tonne depending on concentration.Even at $5k a tonne we get $25m a year initially . That's about £20m.The market cap is £20m

[runthejoules] 10/8/2017 07:13

Things should improve this morning... Exceptional Rare Earth Grades Confirmed



Rainbow, the rare earth element mining company, is pleased to announce that independent laboratory testing recently undertaken in respect of its 'main vein' at Gasagwe has returned an average Total Rare Earth Oxide ("TREO") grade of 62.17%. Gasagwe is the area within the Company's 39km2 mining licence which is expected to provide ore for the first two years of production, which is targeted to commence in Q4 2017.



The grade compares extremely favourably to the average grade of 57% contained within mineralised veins across the Company's Gakara Rare Earths Project in Burundi ("Gakara") as disclosed in the Competent Person's Report compiled by MSA contained in Rainbow's IPO Prospectus published in January 2017.



Highlights

· Testing indicates grades at Gasagwe are 62.17% TREO (compared with 57% average grade over the entire Gakara project area) confirming Gakara is one of the highest grade rare earth element mining projects globally

· Rainbow's basket price has increased by 33% during 2017 following strengthening REE prices

· Very low levels of uranium and thorium confirmed

· Gakara remains on target to produce first rare earth concentrate in Q4 2017



Martin Eales, CEO of Rainbow, commented: "This really is fantastic news. We always knew that the Gakara Project was capable of delivering grades far in excess of industry norms, but to get this level of average TREO content from our first mining area is a wonderful boost as higher grade means that we shall achieve higher prices for each tonne of concentrate sold.



"Taking into account the continued strengthening of rare earth prices over recent months, the Gakara Project continues to add to its excellent potential. We are now gearing up towards our first production and sales of high-grade concentrate through our multinational distribution partner thyssenkrupp Raw Materials in Q4 2017."



Laboratory Testing of Gasagwe ore



These samples are part of the grade control programme of systematic sampling of the orebody and represent the upper 2m of the Rare Earth Element ("REE") vein, exposed 80m along strike to be mined first. This run of mine ("ROM") ore from Gasagwe is expected to be processed and sold before the end of 2017 as soon as construction and commissioning of the Company's processing plant has been completed. Based on the plant design process, it is anticipated that the grade of rare earth concentrate produced by the plant should exceed that of the ROM feed, which further increases the attractiveness of Rainbow's product to customers.



The detailed breakdown of the individual rare earth oxides elements within the Gasagwe main vein on a TREO basket basis is as follows:



REE Oxide

Grade

(100% basis)



Lanthanum Oxide

30.59%

Cerium Oxide

48.07%

Neodymium Oxide

14.75%

Praseodymium Oxide

4.37%

Samarium Oxide

1.32%

Gadolinium Oxide

0.47%

Dysprosium Oxide

0.05%

Europium Oxide

0.21%

Yttrium Oxide

0.13%

Terbium Oxide

0.02%

Erbium Oxide

0.01%

Holmium Oxide

0.01%



Applying the average grades above to recent published prices for rare earth oxides would imply a basket price for the ROM ore of approximately US$13.18 per kg on a 100% basis (before processing into concentrate). This basket price has risen by approximately 33% already in 2017 due to strengthening REE prices.



Due to the further processing and separation work required to be undertaken on Rainbow's mineral concentrate, customers will pay a discounted price to the basket price, which in each case will be subject to commercial negotiation.



The laboratory testing further confirmed the very low Uranium and Thorium contents of the ROM ore, with averages of 0.005% and 0.004% respectively.



Notes on laboratory testing



The laboratory testing was undertaken by ALS Chemex using its facilities in Canada and reviewed 20 individual ore samples taken from the main vein at Rainbow's Gasagwe area of operations. The analytical method used by ALS Chemex was the ME-MSH81h (high grade REE by lithium meta-borate fusion and ICPMS) and the ME-OGREE for over the limit assays.



Progress of Gakara Project



The Gakara Project is proceeding well, and remains on track to produce first concentrate during Q4 2017 for sales through its multinational distribution partner thyssenkrupp Raw Materials. At the Kabezi plant site civils are well underway and the first containers of plant components have been dispatched from South Africa ahead of assembly during September and October 2017. At the Gasagwe mine site, work continues to expose the main vein ahead of full scale mining operations.



Rainbow has created a Gallery section on its website (hxxp://rainbowrareearths.com/gakara-project/gallery/) for investors to review photographs of recent progress.

[croasdalelfc] 10/8/2017 07:09

$10k tonne anyone ;)))

[novicetrade68] 07/8/2017 11:49

Isn't that a good thing? :-) Ultimately, he could have sold for a variety of reasons, may be a new house or an expensive divorce. Clearly, for whoever bought these 366k shares it was of no concern.

[croasdalelfc] 07/8/2017 09:09

I'm surprised this didn't fall big time this morning

[shakeypremis] 06/8/2017 12:30

It's really quite hard to work out what they'll actually be selling the stuff for, given the various numbers quoted and inferred from company literature. We will unfortunately just have to wait for a figure to be officially announced.

[croasdalelfc] 05/8/2017 16:31

Gross revenue per basket tonne is put at $6000 in this recent article:hxxp://crown.co.za/latest-news/modern-mining-latest-news/4565-gakara-rare-earth-project-on-fast-track-to-production

[stephentroughton] 04/8/2017 16:50

Looks like a sell to me... whats puzzling is it looked like a buyer was taking a position the last few days. Has someone snapped these up?

[bookwormrobert] 04/8/2017 16:29

He's on the ground; he knows the real risk of the simmering civil war coming to a full boil.

[novicetrade68] 04/8/2017 16:18

Sold more like! Well, that's a vote of confidence.He better explain himself.

[croasdalelfc] 04/8/2017 16:12

1100000 bought by country manager

[iankn73] 03/8/2017 12:50

Howdy shakey. It may only be the real risk. But its a significant one none the less, when you look at the regions history. I was tempted to buy in with a small stake but decided against it for the reason mentioned.

Good luck all

[shakeypremis] 03/8/2017 10:48

Bookwormrobert, it is certainly the only real risk I can see here.

[bookwormrobert] 03/8/2017 10:47

Maccamcd - Burundi is a simply massive political risk.

[maccamcd] 03/8/2017 10:43

the front page of their website says "low cost production by the end 2017"
surprised this isn't at least 15p.. maybe 20p

[goodgrief] 03/8/2017 10:34

Trade war between Trump and China might help!

[stephentroughton] 03/8/2017 10:25

First sign of volume I've seen here for a while. Decent size trades as well... looks like someone is quietly taking a position.