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Rainbow Rare Earths reports interim results

Published by
Global Mining Review,


Rainbow Rare Earths Ltd has announced its unaudited results for the 6 months ended 31 December 2020 (1H21).

Highlights

  • Strong safety performance: No lost time injuries recorded in the period; a total of 22 months production with zero lost time injuries (LTI) now recorded.
  • Effective measures to address COVID-19 remain in place and operations continue to run largely as normal.
  • Key global macroeconomic trends expected to drive a strong and diversified demand for neodymium and praseodymium (NdPr), which analysts suggest will lead to a significant supply deficit over the medium term underpinning strong pricing.
  • Co-development agreement signed with Bosveld Phosphates (Pty) Ltd to develop the Phalaborwa rare earth project in South Africa, recovering rare earths from gypsum stacks resulting from historic phosphate hard rock mining.
  • Phalaborwa represents an exciting, near-term growth opportunity for the business, with initial assay results indicating average in situ grade of 0.5% TREO, of which 29 – 30% comprises high-value NdPr.
  • ANSTO Minerals are performing tests to confirm the metallurgical variability within the gypsum stacks at Phalaborwa. Metallurgical test work will then be carried out to produce an optimised process flow sheet for the preliminary economic assessment (PEA)/scoping study.
  • As a result of the unique nature of the project, it is anticipated that Phalaborwa can be brought into production far quicker and with a lower capital intensity than a traditional hard-rock rare earths mining project.
  • Ongoing trial mining continues to demonstrate Gakara's considerable potential. 300 t of concentrate were produced at Gakara in 1H21 (6 months to 31 Dec 2019: 114 t).
  • Viability of 10 000 tpy down-stream processing plant confirmed, reinforcing the potential of Gakara's robust long-term economics.

George Bennett, CEO, said: "I believe we are now well positioned for success as London's only listed producing rare earths company with both country and project diversification. The supply/demand fundamentals in the NdPr market present Rainbow with an exciting opportunity and we are confident in our capacity to become a globally significant producer of rare earth metals and to take advantage of the favourable market outlook."

Read the article online at: https://www.globalminingreview.com/finance-business/24032021/rainbow-rare-earths-reports-interim-results/

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