Share Name Share Symbol Market Type Share ISIN Share Description
Rainbow Rare LSE:RBW London Ordinary Share GG00BD59ZW98 ORD NPV
  Price Change % Change Share Price Shares Traded Last Trade
  +0.00p +0.00% 17.75p 0 14:00:28
Bid Price Offer Price High Price Low Price Open Price
17.50p 18.00p 17.75p 17.50p 17.75p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 -1.4 -0.0 - 31.00

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Date Time Title Posts
14/3/201816:16Rainbow Rare Earths Limited619
24/11/201712:49Rainbow Rare Earths INTERVIEW with CEO Martin Eales-
21/11/201711:21Rainbow Rare Earths INTERVIEW with Arden Partners1
21/3/201707:03Problem With The Figures?13

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Rainbow Rare Daily Update: Rainbow Rare is listed in the Mining sector of the London Stock Exchange with ticker RBW. The last closing price for Rainbow Rare was 17.75p.
Rainbow Rare has a 4 week average price of 13.88p and a 12 week average price of 13.50p.
The 1 year high share price is 18.78p while the 1 year low share price is currently 9.25p.
There are currently 174,626,472 shares in issue and the average daily traded volume is 309,949 shares. The market capitalisation of Rainbow Rare is £30,996,198.78.
maccamcd: lovely clear statement which guides us on all important news points we need as Bullish holders. A great share price journey over 2018 should be expected. Well done to team Rainbow so far!
croasdalelfc: 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: 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.
goldguru2017: Kestrel Gold (TSX Venture Exchange symbol KGC.V) Please allow me to bring your attention to this low-market capitalisation, high potential gold/copper exploration company that has assets in the ‘Eye of the Storm’ – the White Gold Area in the Yukon, Canada. - Recently acquired acreage in one of Canadas most prolific gold areas – the ‘Eye of the Storm’ White Gold Area in the Tintina Gold Belt. - Easily accessible, excellent infrastructure, safe jurisdiction. - Sampling just finished, funded drilling programme about to commence - >100g/T Gold sample from Clear Creek – excellent potential - Peak values of 12,400 ppb Au from soil sampling on Val Jual - Relative low market cap – CDN$4.2 million - CEO with proven track record of growing public companies share price by multiples - Leading Canadian gold geologist, Jean Paulter, running drilling campaign - Nearby to discovered goldmines (Coffee, Golden Saddle) - Val Jual /10 Mile Creek acreage surrounded by active 2017 programs by other companies - Drilling news flow expected before year-end Please do your own research on the Company before investing. Thank you for your time.
eadwig: I added on the 31st @11p. Been waiting for lower, but buyers always move in and I miss out. News of plant arrival/assembly/testing/training and eventually concentrate production all due over next 3 months. Just hope the media pick up on it, I'd like to take some profit and then hold until next summer when I expect a GO decision on further mining to be announced. Share price then will depend on projected production and really could be just about anything.
novicetrade68: Here you go : 'Does this mining minnow offer more upside than Sirius Minerals plc?' Many investors are attracted to junior mining and oil stocks for the prospect of achieving life-changing profits over a relatively short period of time. With a market cap of just £16m and significant upside potential, Rainbow Rare Earths(LSE: RBW) more than ticks the box. A mining company focused on the exploration and development of the Gakara Rare Earth Project in Burundi, East Africa -- one of the richest such deposits in the world -- debt-free Rainbow is backed by well-regarded developer, Pella Resources. The low-risk, low-capex project is fully permitted with a 25-year mining licence being granted in 2015. Perhaps understandably, the company also has the full support of the Burundi Government and locals. Rare earth elements are used in wind turbines, mobile phones and electric vehicles. It therefore stands to reason that demand is likely to soar over the next decade. Add to this the possibility of Rainbow's shares rocketing if Donald Trump instigates a trade war with China (which owns the vast majority of rare earth assets) and the investment proposition starts to looks rather appealing. In its recent operations update towards the end of March, the company revealed that a mining fleet had been ordered and was expected to be in operation in a matter of weeks. Assuming all has gone to plan, this month's initial extraction of run of mine ore will then be stockpiled until roughly September, at which point it will be transferred to the company's new processing plant. Of course, mining a precious resource is one thing, selling it is quite another. Here however, Rainbow also offers a degree of security for investors. The company has already signed a 10-year distribution and off-take agreement for exclusive sales of 5,000 tonnes of concentrate with active worldwide metals trader Thyssenkrup. Proceed with caution Despite all this, it can't be emphasised enough that buying shares in businesses this small is about as risky as it gets. Indeed, with its share price now standing 10% lower than when it came to the market in January, it seems many investors still need to be convinced of the company's potential. When compared to something like Rainbow, £1bn cap Sirius Minerals(LSE: SXX) is a different beast entirely. While other writers on the Fool are more wary of the polyhalite producer, I've never lost faith, particularly after it managed to secure the Stage 1 finance required to begin building its mine in North Yorkshire towards the end of 2016. Following a positive construction update at the end of March, the share price has been on something of a roll, climbing 43% in just over three weeks. While some profit-taking from traders is inevitable, I can see this trend continuing when the company moves to the main market at the end of April. A full listing will force those operating trackers to buy in. Many institutional investors, previously restricted from adding Sirius to their funds, are also highly likely to take full advantage. While the company still faces many hurdles over the next few years, the fact that construction is proceeding to plan gives me even more confidence that its shares will multi-bag from their current price. So, while Rainbow Rare Earths appears to have a lot of potential, I'll be sticking with the substantially de-risked Sirius for now. Another top small-cap? If you're attracted to companies operating at the lower end of the market spectrum, you'll definitely want to read about another opportunity identified by the analysts at the Motley Fool. They think they've found a potentially lucrative investment in the form of a niche small-cap that appears to be off many peoples' radars. Not only this, their report is also absolutely FREE to download and keep. Just click here for your copy. Paul Summers owns shares in Sirius Minerals. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
eadwig: sian, I've re-read your comments with regards to the future aspirations of RBW and its potential. You haven't added anything that I wasn't already aware of in terms of what the company has told us, and its hopes for the Gakara project, we just seem to have a different perception drawn from mostly the same information over the use of the term 'scale'. I think the best response if for me to run through my own reasoning then if you disagree or dispute anything I've said, or still don't think I'm seeing the bigger picture, you can highlight it. Given the whole nature of the deposit, assumptions surrounding future market demand and the opaque nature of the REE market place, it is not surprising that the company warns investors in the IPO that the Gakara project is "essentially an exploration exercise and the company is still in the exploration phase of the life-cycle of a typical mining company" and that the company will only be able to assess the economic viability of the Gakara project towards the end of the project, with the stated aim to determine if a) the deposit veins can support a profitable mining operation and/or b) can be quantified to report an Ore Reserve or Mineral Resource under the JORC code. If the latter can be achieved, that would give a very large boost to the share price, I believe. However, the deposit is such that it may not be feasible to do so and that assuming on-going profitable operations are determined as feasible, they may all progress under the JORC heading of 'Exploration Results and Exploration Targets'. I'm perhaps too wary of anticipating too much beyond the CPR (Competent Person's Report). I know that such a report has to be conservative by its nature and it can only define Gakara as an 'Exploration Target' of 20-80,000 tonnes according to the JORC code. Then again, the JORC code is there specifically to ensure a fair representation of a mineral resource in a given area in terms of grade and quantity, including all details an investor may reasonably expect to be made aware of by an independent accredited expert including the absence of any relative details. Rainbow’s technical team has declared a mineral inventory estimate at Gakara of: 256,500t of ore with an in-situ grade of 54.3% on average TREO 141,853t of contained TREO (Total Rare Earth Oxide). Again, probably a conservative estimate, with the potential for new discoveries to add to those totals. "Rainbow has identified extensive deposits within the Mining Licence that have been incorporated into the mine plan for the first five years", it states on the web site, but the IPO document looks forward no more than 3 years that I can tell and the Trial Mining Project is just over 27 months. The trial mining project needs to reveal commercial viability well before its scheduled project completion, otherwise it will run out of ore to process while a decision to mine any further is made. That scenario doesn't seem likely to me, therefore I expect a declaration of anticipated commerciality relatively early, and the addition of at least one more production site from around 12-18 months in (Apr 2018-Oct 2018). Possibly the first site will produce more REO than expected in which case that decision point may slip back. If so, we will have already had a statement about production targets being exceeded, so either situation is a win. The beauty of this from an investment point of view, beside the guaranteed offtake for the product (if the expected 54% quality is achieved, and no rel doubts there), is the frequency of positive newsflow we can expect. As a standard listing, RBW aren't required to give us all of it, ironically, but I'm trusting that they will. The JORC codes also seem to indicate that a quarterly update on production and current deposit estimates are required. Rainbow's strategy is based on the assumption that the trial mining project proves the deposit is commercially viable, even so commercial mining levels mentioned are 5,000t p.a. rising to 10,000t p.a. of concentrate with no need for further expenditure on existing processing capacity. Even though the latter figures are a little confused, I think they may well have capacity to produce in excess of 10,000t p.a, but may be restricted by how much REO they can extract from each site opened up and the costs associated with doing so. Those figures are pretty small scale in my book, which does not mean unprofitable. There is a heightened risk associated with the choice of each new mining site as the initial two sites become played out. That risk sounds like it may be lessened by recent discoveries in 2016, three especially in the Gomvyi Centre, Kivungwe 1 and Kiyenzi target blocks where boulders of REE veins weighing in excess of 100 kg were encountered suggest that the width of REE veins can locally be up to 50 cm. The longer RBW can stay producing at commercial levels the greater the chance of discovering more commercial concentrations within the license area. There is only one other non-Chinese productive mine to go by, Lynas Corporation Limited and its Western Australian Mt. Weld mine that has been discussed on this board. It has a defined Mineral Resource (not an exploration target) of approx 2,100,000 tonnes. Just to be clear, to put it in the same terms as the RBW technical team's figures above, that is based on: c. 32,000,000t of ore with an in-situ grade 7.5%-10.8% TREO c. 2,1000,000t of contained TREO. These figures based on a mix of 'Mineral Reserves' and 'Mineral Resources' per the JORC code. RBW's figures are to the lesser standard of an 'Exploration Target'. Lynas anticipate 22,000t p.a. production as of late 2015, I'm unsure if that refers to REO (Rare Earth Oxides) or REE (Rare Earth Elements) or a mixture of both. I think its REO concentrate of approx 40% (Lynas have their own plant in Malaysia to process concentrate into REEs). Perhaps our friend who has invested in them previously can chip in and tell us if I am correct? Their very latest figures from Feb appear to indicate record output to date in 2017, perhaps approaching 'Ready for Sale Volume' of 16,000t inc. 'Ready for Sale Volume NdPr' 5,300t. It could be that the Lynas Malaysian separation plant ends up being one of the ultimate customers for Gakara concentrate via tk Raw Materials. As we know from the RBW documents, there are at least six other rare earth projects expecting to start production in 2017-19. I haven't yet looked into any of them or how much they expect to produce. I have heard of projects underway in Russia, Vietnam, Malawi, USA. Greenland, India and Chile. How many of these overlap with the projects RBW mention I do not know. Some of them appear to be on a very large scale judging by their Cap Ex, however scale doesn't necessarily equate to profitability and competitiveness, and Martin Eales remains confident that RBW can compete in terms of cost with RBW in the lowest quartile of production costs compared with all other world production. This encourages me that RBW can relatively quickly turn an operating profit which will in turn soon repay cap-ex costs, them being so low due to Rainbow's low-tech and low cost approach. So much for operations and competitors who are also external to China, so have that same competitive advantage as RBW. We must also take into account the markets, especially where the product is basically a commodity and therefore subject to the usual swings and cycles associated with global commodities. The rare earths market is less than straightforward though. There are rare earth elements and rare earth oxides, and the latter are often sold as concentrates in various bands, or through negotiation and prices for concentrate are much reduced compared to REEs themselves: Prices 31 Dec 2016 (I've only illustrated the main Gakara production elements) Lanthanum metal =>99% 7 US$/kg Lanthanum Oxide =>99.5% 2 US$/kg Cerium metal =>99% 7 US$/kg Cerium Oxide =>99.5% 2 US$/kg Praseodymium metal =>99% 85 US$/kg Praseodymium Ox =>99.5% 52 US$/kg Neodymium metal =>99.5% 60 US$/kg Neodymium Oxide =>99.5% 42 US$/kg Prices have remained depressed and continued to fall through 2016, since the upsurge in 2010 when China threatened to curb exports, although Lynas reported a slight uptick in prices in Q1 2017. Even so, prices achieved were pretty woeful based on the 2011 estimates that many projections were based on for production. Lynas itself has cut price expectations by 50% which has had a small impact on how it approaches its deposit. Gakara's deposits are small and concentrated. It could be that Rainbow can be relatively flexible, perhaps enough to choose the most profitable area to go for next. A mine the size of the Lynas deposit is going to pretty much remove everything anyway, some of which may no longer be economically viable. It may be fanciful, but there is the possibility of an edge there for this type of small scale, high grade, low tech operation. China has talked of limiting exports to 140,000t p.a. but more importantly it has stated that a programme to shut down 'unofficial production' is now underway and should complete around 2020. It is estimated unofficial production feeds up to one third of global demand and is thus the greatest single contributor to keeping prices flat. Tentatively I would suggest that leaves a hole in supply of around 70,000t p.a. but I really need to do some further research on that - if at all possible - to be certain. This should help support prices, as I have previously discussed, through the cutting of supply and thus giving an opportunity for projects external to China to remain economically viable. Gobal demand for all REEs remains muted with just a 2.2% global compounded growth rate, more akin to a mature market than the fresh and exciting one that might be expected with so many REEs required for desired 'green' power efficiency. There is always the possibility of a further clampdown on exports by the Chinese, despite WTO efforts. This possibility is arguably heightened by the US Trump administration's economic 'saber rattling' over protectionist policies to protect its own industries. There is a distinct possibility the Chinese could use the strategic nature of REEs as a bargaining chip and a consequence of that could easily be a return to the price heights of 2011. The danger for RBW in the above is that a prolonged situation of uncertainty of supply that threatens the medium-long term plans of huge global commercial interests will see them seeking alternatives to REEs in their production materials. There's always the possibility of other minerals or REEs being found (I believe there was E.g. tin in the area), REEs are almost always found alongside metal ore deposits. All the REE types mentioned so far are from the same group in the periodic table and I don't know if there is any reason to expect others (the high value per kg ones) to be found in the same geographic area. Another definite plus for Gakara are the low levels of Thorium and Uranium radiation so far detected. These are often high among REE deposits and are obviously of environmental concern and potentially costly to deal with. Hopefully they remain low which will only increase RBW's competitiveness compared to some other producers. To sum up, I see every chance of Rainbow successfully implementing a profitable, if relatively small scale, mining operation. Global factors beyond its control could boost prices for its concentrate greatly, and the share price will surely respond accordingly. Such a situation is unlikely to last in my view, and if it did it could become detrimental, but it seems unlikely. Rainbow appear to have the backing of the Burundi government and local populace with all the required permits and agreements for Gakara in place for 25 years. [Strangely I haven't been able to turn up any references in the Burundi press to the project. As the only mine in the country one would expect it to make the news!]. They have excellent experience of mining operations in Africa on the board. If the encouraging deposits play out and more can be found, there is every chance of Rainbow establishing Gakara as a profitable going concern. From an investors point of view, there is the chance of external factors causing a huge bubble in the share price at some point in the future which could give the potential for a substantial 'killing'. Even if that doesn't happen, the short term nature of the project between IPO and production and production and first sales (5,000t p.a. of concentrate >54% with a further 5,000t p.a. almost certain to be taken up by the agreement with tk Raw Materials over the next 10 years), as well as other factors mentioned above, promises a positive news flow which will support the share price with every chance of a substantial yield through dividends being gained at a relatively very early stage. A STRONG BUY in my opinion, before the positive news flows start to move the share price upwards (first production expected in April should generate the next one). Don't miss the boat is my advice to anyone reading.
eadwig: Dingo, "Gross Profits will be above current market cap from 2018 ... If I have time I'll dig out my notes and put together some facts and figures in" you should dig those figures out, buddy, because I think you've got mixed up somewhere, either with anticipated revenues or the definition of gross profit. As a share holder, I don't particularly mind you popping up to say its a cash cow and a steal at @11p once in a while. As someone who may add potentially to a very small current holding, I'd like at least a link to some figures that make sense. I appreciate time constraints may be an issue though. The very latest figures from the company that we have as of the presentation to investors a couple of days ago, suggest that going into 2018 they will have produced a max of around 1200t of concentrate, by the end of 2018 perhaps a total of 3500t. See Page 19: hxxp:// Revenue wouldn't exceed current market cap of US$20m [10.5GBp x 154.63m x 1.25], not anywhere close, let alone gross profits. My figures suggest perhaps US$3.75m in *revenues* by the end of 2018. I'm quite happy to accept the document is perhaps over-cautious in its estimates, so far as it can give any, but even if we double the above figure, it still isn't in your ball park. One of us is way out in our calculations. Everyone's seen mine. Show us yours! If you're right, I'll at least triple my current holding immediately. (I might anyway). Next news flow will be within 5 weeks saying production has started (possibly much sooner). That's almost always a share price boost on a new mining project, I quite fancy having some more on board before then.
multibagger: Thanks jon123 for sharing. I have ordered a book called "Elements of power" on the same theme from Amazon just now. RBW seems to tick a number of boxes re investment potential with the usual risks associated with resource mining in less stable/unpredictable parts of the world. However, RBW senior team have very strong experience of working in Africa and according to the website, have employed the former Minister of Mines for Burundi - so may be able to navigate better than most. I have taken a small position in RBW and will add depending on market sentiment and mining progress....expect it may take about 12-18 months for more traction, but with AIM mining stocks, one can never tell when the share price will rocket for no good reason ! Good luck all :)
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