Rainbow Rare Earths Share Discussion Threads

[shakeypremis] 04/10/2017 13:40

This article seems to suggest near the bottom that exporters might be able to get around the measures:

hxxp://www.iwacu-burundi.org/englishnews/burundi-exporters-forced-to-open-foreign-currency-accounts-to-boost-governments-foreign-exchange

" “The BRB thinks it has found the way to earn foreign currency but this may push exporters to open foreign currency accounts in foreign banks to run their business freely, which will be a big loss for the country,” says Rufyiri. "

[croasdalelfc] 04/10/2017 13:34

For example If say they take $100k in revenue it is equivalent to 175 million Burundian Francs. But if they devalue it , then converting back might only get you $80k

[croasdalelfc] 04/10/2017 13:31

Shakey - the way I read it is:Income from TK will be in dollars. This has to converted in Burundian Francs which are worth very little.Then if RBW has to pay a 3rd party in Dollars , they could have trouble getting hold of dollars , if the amount is substantial.Also the Burundian Franc could be devalued or loss value and when converting back to dollars or any other currency then RBW take the hit

[shakeypremis] 04/10/2017 12:34

It's a huge discount rate. I wonder why it is so low? I might email Martin. He usually responds pretty quickly.

Croasdalefc, I wonder if you can clarify the point about currency repatriation? Do you know what this means precisely?

[croasdalelfc] 04/10/2017 11:49

Varies - no problem ;)The discount is a lot higher than I thought 68-73% .I thought 40% tops. Still with increased production profit up to June 18 should be close to £10m

[varies] 04/10/2017 11:20

shakey premise & croasdalelfc
Thank you so much for answering my query.
I need to read the announcement again !

[croasdalelfc] 04/10/2017 09:41

notwithstanding that the Board continues to anticipate production and sale proceeds being received in the earlier part of Q4 2017.Well that means in the next 6 weeks - surely?

[croasdalelfc] 04/10/2017 09:36

Cash on 30th Sept was $1.2m so they are burning about $2m a quarter and expect an RNS stating they are drawing on the loan sometime late this month .The loan is enough for 2 months approx.

[croasdalelfc] 04/10/2017 09:33

New PowerPoint on the website

[croasdalelfc] 04/10/2017 09:33

ME states that first sales on course for Dec 17 in the recent proactive investors update

[shakeypremis] 04/10/2017 09:11

Varies, Q4 2017 means Q4 2017. This year. Concentrate should be sold before the end of this year.

[croasdalelfc] 04/10/2017 09:10

Contingency loan is in place in case if delays, my guess is they will need to draw on it as I doubt they will get early Q4 revenues from the first shipment.It's more likely late Q4: this is probably dragging the share price :The Board have considered detailed cash flow forecasts and sensitivity analysis for a period to 31 December 2018. The forecasts demonstrate that provided revenues from the first shipment are received towards the earlier part of Q4 2017, the Group will maintain positive cash headroom throughout the next 12 months. If sales revenues are delayed, for example due to issues in the commissioning and ramp-up at the plant, or difficulties in exporting the first shipments of mineral concentrate, it is likely that existing cash balances will be insufficient. Accordingly, the Board have considered reasonable and stress case sensitivity scenarios to assess the potential funding required under such eventualities, notwithstanding that the Board continues to anticipate production and sale proceeds being received in the earlier part of Q4 2017.To protect against such an eventuality, during September 2017, the Company agreed in principle an overdraft facility with Finbank SA, a Burundian bank, for up to US$1.5m, which would provide adequate headroom throughout the period in the event of such a scenario materialising. In addition, the Company has received a letter of support from Pella Resources, the Company's largest shareholder confirming that it will make available funding to the Company should the need arise, for a period up until 31 December 2018.

[varies] 04/10/2017 09:07

Altogether a re-assuring report.
Does Q4 2017 mean the current quarter or the 4th quarter of 2017/18 (ie April-June 2018) ?
Given that the processing plant is not yet finished, I suspect that we have another 6 months to wait for our first sales.
It does look as if the $3 million still held might just about see RBW through until then.
There are, of course, greater political and social risks in Burundi than in, for example, Western Australia and I think our share price allows for these.

[shakeypremis] 04/10/2017 08:48

That risk assessment is a bit of b*tch. The Africans really do know how to stifle enterprise.

[shakeypremis] 04/10/2017 07:35

It would appear from today's rns that Rainbow are going to be producing much more concentrate per unit time than originally thought. It could be DOUBLE previous estimates. Previous estimates were 3338 tonnes of concentrate over 22 months so 151 tonnes per month. Now they estimate a minimum of 2250 tonnes of concentrate over 9 months or 250 tonnes per month. Upper estimates are 333 tonnes per month.

Looks like they've got $3 million in cash left too.

You could quite reasonably expect the amount of concentrate produced per tonne of ore to increase over time as the mining and processing procedures are optimised and improved. It would certainly be worth the effort given the value of rare earths.

[croasdalelfc] 04/10/2017 07:34

The big news is that they expect to increase production over the trial mining schedule and then ramp up to 5000 tonnes of ore by the end of next year.The basket price seems to be eased a little - 80% up to 70% up.Corporation tax is very high at 30%I get the feeling Q4 is a tight schedule for first sale and won't happen until December maybe late December

[shakeypremis] 03/10/2017 14:37

Let's hope for good news tomorrow. Its hard to think of anything negative other than the political/social situation. They might withhold theat sort of information as much as they can anyway. It's been ongoing for a long time and hasn't seemed to have stopped them thus far. It's all gone very well since the start of the year.

I was looking at a map of the Gakara license and the exploration potential seems huge. Here's an image:

hxxp://burundi-agnews.org/wp-content/uploads/2014/06/burundi_gakara-concession.jpg

Bear in mind they are only mining the purple ringed sections on the upper-left center of the map to begin with. The area seems riddled with the stuff.

[croasdalelfc] 03/10/2017 10:32

According to Proactiveinvestors results will indeed be tomorrow.They will issue forward guidance to ore and concentrate for FY 18 up to June 18.I would hope for 1500 tonnes of ore and 1200 concentrate.

[croasdalelfc] 03/10/2017 10:18

An estimate on Life of mine would be good too

[croasdalelfc] 03/10/2017 10:16

Showing how much cash is in the bank would be useful - to rule out a placing.To confirm the stockpiling of RoM. Tonnage would be great but not necessary To say approx when processing plant will be finished or how advanced it is.To confirm that first sale is due in Q4To update on price of REE's - approx basket priceTo confirm that opex and capex expected to be xx in the coming year To give update on explorationTo give an overview on political/social picture ? And lots more ....

[shakeypremis] 02/10/2017 18:57

Will they actually tell us anything? They aren't selling any concentrate yet so there shouldn't be any revenue.

An operational update might be useful but I do think there's much to comment on really. Everything is going to plan and they seem to be almost certain to begin selling concentrate very soon. Maybe the operational update might tell us how much ore they've managed to mine since they began doing so a couple of weeks ago.

[mp79] 02/10/2017 18:47

On 4th oct

[croasdalelfc] 02/10/2017 18:30

I have a feeling results will be out this week,

[croasdalelfc] 01/10/2017 07:14

Results should be out soon, and hopefully an operational update