Rainbow Rare Earths Share Discussion Threads

[fillipe] 06/10/2017 08:58

Strong on the demand side for RBW.

Total Bid/Ask on L2 is 3.67 : 1.0, as I type......actually 183.5k v 50k of shrs.

The best bid/ask is 30k v 10k.

Looking a good rainbow day!

f

[croasdalelfc] 06/10/2017 08:56

It's probably been tipped elsewhere as well

[purple11] 06/10/2017 08:48

Takeon me x atb

[purple11] 06/10/2017 08:38

12.39 100,000 08:37
tick uP

[shakeypremis] 06/10/2017 08:32

Thar she blows! Hopefully the start of a very significant rerate. It's quite hard to value this company at present as we don't really know what price they are going to get for the concentrate and we don't know what opex costs are. The IPO document gave details of the costs but they were of course just estimates by a competent person. The CPR also didn't predict rainbow would be able to mine the stuff as quickly as it turns out either.

[blueball] 05/10/2017 18:38

The bulls in full control.

[shakeypremis] 05/10/2017 16:45

I expect this Telegraph article is the source of some of the buying today:

hxxp://www.telegraph.co.uk/business/2017/10/04/rare-earth-miner-aims-catch-ride-electric-vehicle-boom/

[shakeypremis] 05/10/2017 16:37

Finally a bit of a jump upwards. Hopefully this is the start of a bit of a re-rate here.

[croasdalelfc] 05/10/2017 13:43

The next RNS hopefully is commissioning of the processing plant has begun ......

[shakeypremis] 04/10/2017 14:06

If they can get around the currency repatriation with methods I highlighted above or can come to a nice arrangement with the Central Bank/Government then I think the most troubling thing is the discount rate which is very heavy. That said, even at the current discount rate of circa 70% still allows for decent profits to be made. Hopefully that rate can come down in the future.

[croasdalelfc] 04/10/2017 14:02

Hi Shakey - the risk is highlighted by RBW as medium . Others are higher such as project overrun. Or problems shipping concentrate.Also cash at June 30th was held in $ or £ with a tiny amount in B Francs $11k worth. This must be to pay the local workers etc.Also:The Company has negotiated access to its dollars with the government - though that takes a leap of faith ;)

[shakeypremis] 04/10/2017 13:43

And another article:

hxxps://www.mfw4a.org/news/news-details/article/2/burundi-central-bank-to-commence-repatriation-of-foreign-currencies.html

"This development which is part of the move to boost Burundi's foreign exchange market, is aimed at reinforcing control over foreign currencies. With this, commercial banks will no longer be able to receive foreign currencies as all foreign currencies transactions from exporters will be received directly by the Central Bank."

Looks like this might be quite easy to get around. You simply open a foreign exchange account in another country, say the UK for example, get yours dollars from TK sent there and only send what you need back to Burundi to convert to Francs. Still not great but could greatly reduce the impact of these measures.

[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.