Rainbow Rare Earths Share Discussion Threads

[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.

[croasdalelfc] 30/7/2017 17:31

80% of the value of a basket is Neodymium and praesodymium .Neodymium is 58% by itself

[croasdalelfc] 30/7/2017 17:27

RBW retweeted this a while ago:https://twitter.com/adamasintel/status/890217709224460288EV = NeoD demand

[goodgrief] 30/7/2017 11:30

Not every rare mineral as mentioned in the article is a rare earth mineral. In fact lithium isn't actually that scarce, more a case of being able to cost efficiently mine and process it.

[shakeypremis] 30/7/2017 10:48

Reading between the lines with a little bit of knowledge you come to the following conclusion. Super efficient electric motors benefit greatly from permanent magnets. Hello Neodymium and various others.

[goodgrief] 29/7/2017 20:30

Don't see any reference in the Guardian article to any of the stuff Rainbow Rare Earth will be mining!?

[croasdalelfc] 29/7/2017 19:26

https://www.theguardian.com/environment/2017/jul/29/electric-cars-battery-manufacturing-cobalt-mining?CMP=Share_iOSApp_Other

[flashheart] 28/7/2017 12:32

Thanks novice trade. Answers completely.

[novicetrade68] 28/7/2017 11:32

Spread has never been so tight actually, sell at 11.10 and buy at 11.13.

[flashheart] 28/7/2017 10:39

shakey/Croas, any idea if these are buys or sells going through recently. Bit difficult to decipher on this one.

[croasdalelfc] 28/7/2017 09:37

Shakey - your reasoning above implies that revenue per tonne is fixed but the admission doc suggests that TK will be a sales agent and get the best price for each delivery up to 5000 tonnes per annum . I.e. The price will fluctuate depending on market prices and customers. I presume RBW take a cut of the final price.Also Martin Earles is highlighting the fact that prices for RE metals are rising ( best for 2 years in some cases) and implying that is good news for RBW

[shakeypremis] 27/7/2017 09:51

Good buying around these levels. Seems well supported here. Could this be the bottom? Wouldn't take a whole lot to knock it back further however.

[shakeypremis] 25/7/2017 11:47

Implied is not the same as the price they may receive. Another implied value is $1066/t.

From the presentation under the project economics section it can be seen that one of the cost is $280/t. Made up of $200/t transportation and $80/t marketing and royalty costs. These costs are said to represent 3.5% and 4% of revenue respectively.

7.5% of revenue/t = $80

Therefore

100% of revenue/t = $1066

I emailed Martin Eales to clarify this as at the time their presentation was quoting $40/t marketing and royalty costs which made the total revenue figure even smaller. The presentation was later corrected and the $80/t figure was included. This still only makes $1066/t. In his email to me he did not say this figure was the exact figure they'd receive but he did say it will 'get you closer to the figure we will receive'.

Make what you will of that.

[croasdalelfc] 25/7/2017 10:31

Shake - they imply c$6000 a tonne

[shakeypremis] 24/7/2017 16:14

Back in again for more shares than I sold some time ago. All to play for. All I am concerned about is what price they get for the basket!

I believe there is the possibility of significant upside in the resource available at Gakara which is good for the future.

[croasdalelfc] 22/7/2017 18:09

Also 80% of the value of a basket is the REE so any price rises/falls in these two elements will influence revenues greatly

[croasdalelfc] 22/7/2017 18:01

It says circa $6k per tonne of concentrate in the 3rd q presentation slide 23

[croasdalelfc] 22/7/2017 17:40

TK sort out RBW to seek a take off agreement - I believe the price per basket tonne will depend on global REO prices at each shipment to Tk -That will also depend on the buyers of concentrate from TK but with prices for REO strengthening things are looking good

[shakeypremis] 22/7/2017 16:14

Just replied to someone's comment on the LSE board, can anyone fault my math? Or perhaps let me know where I've missed something. Poster was trying to work out what costs and revenues would be. My reply is below.

===================================================================================

Revenue is a little bit of mystery at present (unless you've heard/seen something I haven't). It's based on 'a basket of rare earths' that Thyssenkrupp will buy from Rainbow. I seem to remember a figure of around the $5,000/t mark (I might well be wrong here) for a 'basket'. But what exactly does that basket contain? I don't know. Probably a basket of concentrates I'd imagine. Additionally you can calculate a revenue figure per tonne from page 22 of the 2017 Q2 Investor Presentation (see link below).

TRANSPORT, MARKETING AND ROYALTY COSTS US$280/t.

Transportation costs are estimated to be $200/t. Marketing and Royalty costs are estimated to be 3.5% and 4% of revenue respectively. So $80 must equal 7.5% of revenue. 100% of revenue per tonne must therefore equal $1066/t. I can't believe this will be the figure received as it will not allow for a profit. Given the costs outlined below.

Costs however, I can shed some light there. Referring to page 22 of the May 2017 Q2 Investor Presentation we can see that OPEX is predicted to be $810/t and marketing, transport and Government royalties amount to $280/t. So seemingly the all-in cost per tonne is going to be somewhere around $1090/t. These costs are per tonne of concentrate.

Trial mining is supposedly going to produce 5270 tonnes of 'vein material' in a 27 month period (which is estimated to produce 3880 tonnes of concentrate, so per month that equates to about 143 tonnes mined per month (again concentrate). So costs per month are going to equate to something like $157,000. There's another figure quoted on page 22 which states another cost for 'On-site operating costs' of $103,000/month. I am not sure if this is part of the OPEX or not.

2017 Q2 Investor Presentation

hxxp://rainbowrareearths.com/wp-content/uploads/2017/06/Investor-Presentation-Q2-2017-09.05.17-FINAL.pdf

IPO Document and Competent Person's Report

hxxp://rainbowrareearths.com/wp-content/uploads/2017/06/Rainbow-Rare-Earths-Prospectus-25.01.17-FINAL.pdf

[croasdalelfc] 22/7/2017 15:38

Processing plant diagram:https://twitter.com/minergiemine1/status/888418389462482945