Rainbow Rare Earths Share Discussion Threads

[odsjp] 28/4/2021 14:21

As luffness said in post 2879, Rainbow (Phalaborwa only) is valued at $3/t whereas the value of the NdPr and DyTb in the stacks is $147/t

So 35M tonnes of material * $147/t = $5.145 Billion
$5.145B / 20 years = $250 million revenue per year.

All this material does not need to be mined but chemically processed, so there should be a good profit margin. All this is also at current prices with the value expected to increase.

Looks good value in my book.

Extract from RNS
"The overall rare earth basket price was expected to be dominated by the NdPr content, which at current prices is valued at US$111/t gypsum based on the assay values reported. The additional DyTb credit adds a further US$36/t gypsum, significantly enhancing the recoverable value of the rare earths from the gypsum stacks. Together, these high value elements represent over 92% of the total value of the Phalaborwa rare earths basket."

[lasata] 28/4/2021 13:44

Take a look at the chart of REMX........RBW mirrors it!

[lasata] 28/4/2021 13:35

Shard

Agree

I would buy the dip if bad news from Burundi negotiations......which is unlikely as you say.

[shardview] 28/4/2021 12:07

IF rbw lots it's right to mind in Burundi (which is highly unlikely) the current mcap would still be cheap. This play is almost entirely about Phalaborwa. It's amazing how concentrated minds have become on what is basically a side show.

[timnicebutdim] 28/4/2021 10:06

This reminds me of what happened to Churchill mining who were sat on the largest coal reserves, the government revoked the licence on the basis that a key document had an auto signature rather than a hand written one, then did a deal with another company to mine the coal. Just prey this doesn't go the same way!

[timnicebutdim] 28/4/2021 10:04

That was before the exports were put on hold, if that isn't resolved soon then they will either have to stop production and lay off the workforce or do a fund raise. They must know by now the reason behind the export stop and why haven't they informed the market?

[lasata] 28/4/2021 09:38

Glasswala.......if you listened to the interview then you would realise that is not in the pipeline.

[glasswala] 28/4/2021 09:10

Very subdued reaction to this news. Has a fund raise been pencilled in??

[luffness] 28/4/2021 08:10

True - it is also the timescale which is appealing - full production possible in 2023

[astubbs67602] 28/4/2021 08:07

All the early trades are showing as sells, not true as I topped up at 8am

[glasswala] 28/4/2021 08:06

What is not to like???

[glasswala] 28/4/2021 08:05

Back down again.

[32campomar] 28/4/2021 08:00

Yes, vastly undervalued doesn't even touch the surface. It's pretty extra-ordinary what the company are sat on.

[lasata] 28/4/2021 07:53

Luffness.......interesting!

[luffness] 28/4/2021 07:25

So ignore Burundi and RBW current market cap ascribes a value to Phalaborwa of usd3/t. Current basket price based on assay results is usd147/t

[lasata] 28/4/2021 07:18

Liking these assay results

[luffness] 28/4/2021 07:14

Further Phalaborwa assay results out - looking good

[32campomar] 27/4/2021 16:58

The South African venture is worth many multiples of the SP, Barundi will sort itself out, it's already Tomorrow's chip wrapper. The assays should give us a nice boost in the next few days.

[p winky] 27/4/2021 16:43

I topped up again

[luffness] 27/4/2021 15:17

Fair enough but my view is Phalaborwa will be the driver of the share price not Burundi in the short to medium term

[redhill9] 27/4/2021 14:47

I sold out completely as soon as I heard of government interference. Once politicians get involved there can be delays and costs beyond what anyone might think reasonable.

I'm in no rush to buy back - I suspect the share price will show nerves for a while even when the situation is resolved.

[timnicebutdim] 27/4/2021 10:48

With exports on hold, how long until they run out of cash reserves? As no exports = no income.

[lasata] 16/4/2021 16:09

Panic over

Assay results before long according to the interview...

[marktime1231] 15/4/2021 13:18

"could be a paperwork issue" sounds like what the defence lawyer suggests when you have been challenged over your tax returns, see Romie Tager.

More likely the govt of Burundi are suspicious at how much mineral is being exported from "test mining" and want to assert their rights, call them royalties or what you will.

It is encouraging that production can continue while the issue is resolved, which should not be difficult since it is in both parties' interests. Watching for an opportunity to add some.