Rainbow Rare Earths Limited Appointment of Stifel as Joint Broker (7684Z)

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RNS Number : 7684Z

Rainbow Rare Earths Limited

16 January 2024

16 January 2024

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

Appointment of Stifel as Joint Broker

Rainbow Rare Earths is pleased to announce the appointment of Stifel Nicolaus Europe Limited ("Stifel") as joint broker to the Company with immediate effect. Stifel will work alongside Rainbow's incumbent broker, Berenberg, Gossler & Co KG ("Berenberg"), to further broaden the Company's share register and investor access globally as it progresses the Phalaborwa rare earths development project in South Africa and the earlier stage Uberaba project in Brazil.

George Bennett, CEO of Rainbow, commented: "The appointment of Stifel is a positive step forward in the development of Rainbow, the Phalaborwa project and our project pipeline. Stifel has deep industry experience within the natural resources space, as well as global operations. Their franchise within North America will be particularly relevant to Rainbow as we continue to grow our presence in the region, further to the U.S. Government's backing of the Phalaborwa project via the investment commitment from the U.S. International Development Finance Corporation (DFC) and TechMet Limited, as announced at COP28 in Dubai last month."

For further information, please contact:

 
 Rainbow Rare Earths                    George Bennett 
  Ltd                        Company     Pete Gardner        [phone] 
  IR         Cathy Malins                                    [phone] 
                                                              [e-mail] 
                                        Matthew Armitt 
 Berenberg                   Broker      Jennifer Lee        [phone] 
                                        Ashton Clanfield 
 Stifel                      Broker      Varun Talwar        [phone] 
 Tavistock Communications    PR/IR      Charles Vivian       [phone] 
                                         Tara Vivian-Neal     [e-mail] 
 

Notes to Editors:

About Rainbow:

Rainbow Rare Earths aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. It is doing this successfully via the identification and development of secondary rare earth deposits that can be brought into production quicker and at a lower cost than traditional hard rock mining projects, with a focus on the permanent magnet rare earth elements neodymium and praseodymium, dysprosium and terbium.

The Company is focused on the development of the Phalaborwa Rare Earths Project in South Africa and the earlier stage Uberaba Project in Brazil. Both projects entail the recovery of rare earths from phosphogypsum stacks that occur as the by-product of phosphoric acid production, with the original source rock for both deposits being a hardrock carbonatite. Rainbow intends to use a proprietary separation technique developed by and in conjunction with its partner K-Technologies, Inc., which simplifies the process of producing separated rare earth oxides (versus traditional solvent extraction), leading to cost and environmental benefits.

The Phalaborwa Preliminary Economic Assessment has confirmed strong base line economics for the project, which has a base case NPV(10) of US$627 million[1], an average EBITDA operating margin of 75% and a payback period of < two years. Pilot plant operations commenced in 2023, with the project expected to reach commercial production in 2026, just five years after work began on the project by Rainbow.

More information is available at www.rainbowrareearths.com .

[1] Net present value using a 10% forward discount rate

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January 16, 2024 02:00 ET (07:00 GMT)