Rainbow Rare Earths Limited

-0.25 (-3.12%)
Share Name Share Symbol Market Type Share ISIN Share Description
Rainbow Rare Earths Limited LSE:RBW London Ordinary Share GG00BD59ZW98 ORD NPV
  Price Change % Change Share Price Shares Traded Last Trade
  -0.25 -3.12% 7.75 683,150 08:00:18
Bid Price Offer Price High Price Low Price Open Price
7.50 8.00 7.75 7.75 7.75
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Chem,fertlizer Minrl Mng,nec 0.00 -3.88 -0.70 - 40.80
Last Trade Time Trade Type Trade Size Trade Price Currency
16:15:11 O 10 7.833 GBX

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Date Time Title Posts
31/5/202314:42Rainbow Rare Earths Limited3,707
17/10/202109:50RBW only producer out side China 🇨🇳 6
08/12/202012:51Yamaha/Toyota mass production motor needs RRE ! -
21/3/201707:03Problem With The Figures?13

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Rainbow Rare Earths (RBW) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2023-05-31 15:15:127.83100.78O
2023-05-31 14:39:157.7151,3253,957.67O
2023-05-31 14:31:287.856,318495.96O
2023-05-31 14:31:267.996,257499.93O
2023-05-31 14:25:357.7050,0003,850.00O

Rainbow Rare Earths (RBW) Top Chat Posts

Top Posts
Posted at 19/5/2023 09:44 by perfect choice
Think that is all down to the private placement on the 9th may, which is the same date stated in the holdings RNS for Caden as to when the 5% threshold was crossed, in this case the same share holding is a lower % so generating need for an RNS as it crosses a threshold. I do notice GB holding now showing as 6.1% now on the RBW web site so that has gone down as well from the 7.75% you mention so same effect. The 9th May placing RNS did state the new lower % for GB anyway within the "Participation of the Directors and Related Parties" so that was effectively the announcement for GB reduced % holding, be it % not actual reduction in shares held. But as Caden were not mentioned in the placing RNS, a separate RNS was required.

Changing subject, notice buy and sell price very close right now. Only did a test trade on 1500 shares but got 8.71p to buy and 8.706p to sell. So bear that in mind when looking at ADVFN default allocation of trades.

Posted at 18/5/2023 17:23 by napoleon 14th
Just when are they going to produce RNSs about changes of holdings in companies
that are understandable in plain English?

From what I can garner, Caden Holdings Limited of Gibraltar's holding in RBW
has been reduced from 5.5% to 4.8%, a change of 0.7%, on May 9th.
Is this an adjustment in view of the new shares issued on the same day - May 9th.
If so, no wonder the market ignored this - share price unchanged.

So what of other holdings? Adjusted or not?
TechMet Limited, Pella Ventures Limited, various members of Rainbow's Board of Directors, including George Bennett himself who held c. 7.75% before May 9th?

Anyway, changes nowt for me...

Posted at 15/5/2023 08:00 by maccamcd
From BerenbergRe-rating begins from now ? Rainbow Rare Earths (Rainbow) will issue 72.5m shares on 15 May following the closing of a USD9.5m fundraise, priced at GBp10.377 per share (a 28.1% premium to the 5 May close). The deal funds the completion and operation of the pilot plant at Rainbow's Phalaborwa rare earths project in South Africa, which we think will be a major de-risking event for the shares. We expect additional near-term newsflow from the other major catalysts that we think will be key to the investment thesis and drive a continued re-rate in the shares: 1) the release of the definitive feasibility study (DFS) on the Phalaborwa project, probably in early 2024; 2) ongoing upside risk of offtakes/strategic deals with partners; 3) additional deals within the phosphogypsum space; and 4) consolidation of project ownership to 100%. We would buy now, ahead of a major rally post-technical de-risking. ? Pilot plant set to de-risk investment case: The pilot plant is key because its main goal is to prove the commercial operation of the continuous ion exchange (CIX)/continuous ion chromatography (CIC) technology which will produce separated rare earth oxides in a more environmentally friendly way than is possible for peers, who typically use solvent extraction (SX) technology. The plant will be up and running this quarter, and we expect Rainbow to confirm in the short term (Q2/Q3) that it can deliver rare earth oxides to the intended specification. This will be a major de-risking event, and we expect a significant positive reaction from the shares. ? Why we love the project: From a macro standpoint, we think rare earths are an attractive strategic commodity, closely linked to the energy transition and, on our calculations, a medium/long-term deficit market. Phalaborwa is reprocessing phosphogypsum stacks (a circular economy play), which have already been chemically "cracked"; this means that opex is lower than at peers. The USD/kg mineral assemblage is the highest of any development project globally, we calculate, and this, plus low costs, means a high-margin project (long-term EBITDA margins of 75% on a conservative price deck) and a post-tax NPV (100%) of USD628m, with upside. ? Model changes and valuation: We update our model for the equity raise and add in a USD20m raise in H2 2023 to progress studies and early works, before a USD100m equity raise in 2024 to fund the project. Our estimate of total equity raised for the final build is unchanged at USD120m. Our price target increases slightly to GBp33 per share. At 0.27x risked NAV, the stock is too cheap, and has a clear, near-term catalyst to drive a re-rating.
Posted at 04/4/2023 11:57 by perfect choice
Listened to latter half of that presentation, fairly BAU information I recall for those who know RBW although its good to hear the pilot plant commissioning work is all in progress at both locations so very much going in the right direction.

Continuing weakness in the share price still I see despite the "bright future" potential here and is this the reason?

The interim results to Dec 22 stated Cash and cash equivalents were down to $2.146M as of last December (see Condensed Consolidated Statement of Financial Position financials).

That figure has roughly reduced by $2M in the previous 6 months (although actual Net cash used in operating activities is less in the Condensed Consolidated Cash Flow Statement), but the basic message is that RBW is due another fund raise "for corporate purposes", entirely separate to the project funding which I am much more confident on.

So a short term hurdle RBW just needs to get through right now or am I missing something? Previously they have done well on the price for such a raise but will see what happens with this next one then!

Posted at 17/1/2023 20:41 by perfect choice
Spotted that as well, a little bit too casual agree but I always said expected in 2023. On the more positive side, he also talked of RBW being worthy of being a 5 or 10 bagger from current value. Burundi also not dead and the government has invited RBW to discuss restarting operations. No timescales given but key point is the government want to see Burundi operations underway again. Might be a side show but sentiment wise may well help share price when up and running again. In the meantime at Phalaborwa, pilot plant due to start Q1 (slight difference to last presentation where it was "from April") but to run for 3-4 months, so clear timeline stated for "continuous pilot operation" for main commercial operation design.

Today's presentation available to download from the RBW web site, its dated 17th January.

Posted at 27/11/2022 22:31 by perfect choice
Just to add to snowflake's post, Berenberg and the AJ Bell investor evening are simply unrelated.

Yes Berenberg have been appointed as joint broker and wiganpunter gave a very comprehensive response to that point above. But in terms of their initial target price ("target" so not now or short term), they only started at 33p. That is actually the lowest compared to other recommendations from the likes of Auctus, Cenkos, Peel Hunt and S P Angel, with a range of target prices from 50 to 63p. Hardly a case of a new broker "ramping up" the price!

As regards the investor evening, RBW are NOT hosting it, its AJ Bell who are and its one of their regular investor evenings they have across the year. There are actually 3 companies presenting at this AJ Bell event which are usually attended by individual investors. Its BAU business for them with AJ Bell routinely inviting companies to present and I've attended a few remote video ones myself, being too far away from London to attend in person.

I also notice your comment about the route to raising finance Snowflake and that including non-equity based sources. I've read that from another source as well.

As far as I am concerned there will be a fund raising in 2023 some time. Every placing can be regarded as dilutive as it's an increase in equity. That is the norm for a non revenue earning company so a statement of the obvious. But as stated before, RBW does have access to strategic partners interested and wanting to see the future development of the Phalaborwa project in particular. It's simply not a case of all finding being an open market cash ask. In fact if you want a ramp, how about the take-over potential for RBW. That is a risk (in terms of ultimate current shareholder value) I can see when the pilot plant is commissioned and initial output verified.

And just as a reminder in terms of what may be required in 2023, RBW reviewed the declared a "reasonably plausible downside scenario" (so there are also better scenarios, this was the worst case) with a fund raise target of $9.2M (so somebody getting confused with $ versus £ as that figure is £7.62M based on the exchange rate right now?) at some stage before December 2023. Simply put, the appointment of a joint broker (good for the future though when finance is required) and an investor evening, where RBW are one of several presenters, are simply not linked.

Posted at 01/11/2022 22:07 by perfect choice
Well a case of picking on words I see going on. SPA article is referring to now and is correct. It is also correct that RBW themselves state that there is a "material uncertainty" based on their "plausible downside scenario" requiring $9.2M (£7.94M) to be raised before December 2023, so some time in the next 14 months from now.

Nobody should be arguing it isn't required, although this is the worst case "downside" scenario, so we could consider neutral and upside options as well.

The real question is when and the answer to that his simply not now. And even when it is required (a case of when in 2023 IMHO) there are key partners as mentioned already who see a strategic need for RBWs Rare Earths metal output.

Should also point out if you go back in previous year accounts the same material uncertainty statement is made. Its just a case of what the value of the amount to be raised which varies and this year it is higher, expected as RBW approach commercialisation (pilot plant now required) and permitting.

Basically any non-revenue generating resource company developing a potential mining operation (or in the case of RBW a chemical extraction operation not a mine), whose cash runway does not pass the next 12 month accounting period, should be stating a material uncertainty in their annual accounts. That should be a routine as RBW have been doing.

So back to today, nice to see GB putting money where his mouth is and making a direct share investment from the market to add to his current holding, which you can see as reported as trade 25 in yesterday's trades.

Posted at 30/10/2022 21:38 by perfect choice
Thanks Mike for the enlightening input of what is going on the PANR BBs which seems to have overflowed into here because RBW actually reviewed the declared a "reasonably plausible downside scenario" with a fund raise target of $9.2M (£7.94M based on exchange rate right now) at some stage before December 2023.

Nobody is saying there will not be a fund raise and that will be planned and executed as was done last October 2021, with the majority of funding coming from select partner IIs and in the caee of TechMet (where the US government is a major investor) , as a direct subscription to the company. That wasn't a one-off and fully expected for the next round.

We can argue what the price will be for the next placing, but I have absolutely no doubt the placing will be completed as required. The previous placing was at a premium to market price (15p placing versus 14.5p mid market share price) and was significantly over subscribed. Capital markets might have changed since then, but direct subscription investment is the factor here and I full expect that will be a significant contribution to the next placing, due to strategic reasons for rare earth supply.

RBWs rare earth potential to a significantly growing world market demand, coupled with no dependancy on China, has significantly improved since then and underpins even more focus on getting RBWs Phalaborwa project underway.

Work still has to be done and yes that including getting the next placing done, plus a pilot plant to finally verify the operational aspect on the soon to be patented (jointly with K-Tech) rare earth extraction process RBW will be operating, necessary for full project financing, plus all the permitting to go through with authorities. This is never a straight forward process, but the potential is huge and even necessary to provide a near term new source of rare earths for there word market. Next step is a resource upgrade I see so will be looking forward to that.

Posted at 25/7/2022 13:29 by odsjp
Hi Napoleon - As GB indicated in one of his presentations I think the PEA (due by End of Sept) should be a material boost to the share price as it will indicate the initial Capex and ongoing Opex along with revenue.

If the economics are as good as GB has indicated then assume most of the finance will be for a loan rather then dilute equity holders too much but guess there will be a combination with Techmet having a bigger stake. If the MOU comes off as well, this will drive the direction for RBW going forward and can see this having a major impact on share price going forward.

GB indicated two weeks ago that we will get an RNS in two weeks (hopefully this week) on timelines so will be good to see it written down and committed.

Burundi must be getting close to being sorted. It is now 13 months since suspension which is not helping anyone. This would probably add a few pence to the share price but doubt much more.

Posted at 13/5/2021 12:42 by glasswala
RBW share price has taken a tumble of 35% since the debacle of the Burundi cancelling its export licence. I thought the west desperately needed rare earth or China is so powerful now that the west cannot exert pressure on Burundi anymore
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