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Rainbow Rare Earths announces preliminary results for FY21

Published by
Global Mining Review,


Rainbow Rare Earths Ltd has announced its preliminary results for the year ended 30 June 2021 (FY21).

Highlights

  • As pressure continues to accelerate around the globe to reach the net-zero goals of the Paris Agreement, the company believes it is well positioned to develop a responsible, independent, rare earths supply chain.
  • Strong and diversified demand for the rare earth elements required for use in permanent magnets, namely neodymium and praseodymium (NdPr), together with dysprosium (Dy) and terbium (Tb), underpinned by key global macroeconomic trends.
  • Rainbow's rare earths basket prices for the Gakara project have risen 64% during FY21, significantly outstripping forecast price rises. The Phalaborwa basket is more highly geared to high value NdPr, with additional economic Dy and Tb credits, and has seen a 67% increase over FY21.
  • JORC (2012) compliant inferred mineral resource estimate at the Phalaborwa Project in South Africa of 38.3 million t at 0.43% total rare earth oxide (TREO).
  • Exclusive rare earths separation technology agreement signed with K-Technologies, Inc.
  • Scope of preliminary economic assessment (PEA) at Phalaborwa widened to include additional downstream processing step, aiming to deliver separated rare earth oxides directly from the proposed on-site Phalaborwa processing facility.
  • Exploration and trial mining operations at Gakara in Burundi placed on care and maintenance by the Government of Burundi in June 2021 following an initial export ban put in place in March 2021. Rainbow has focused on a steadfast approach to resolving issues in Burundi to recommence the positive contributions we make to the benefit of all the company’s stakeholders through exploration and trial mining operations at Gakara.
  • Rainbow's Board has been further strengthened by the appointment of Ambassador J. Peter Pham as a Non-executive Director.
  • Strong shareholder support for the business, evidenced by two recent oversubscribed placings – the first in November 2020 to raise £2.56 million and the second completed post year end in October 2021 to raise £6.435 million. As substantial investment was made by TechMet, which counts the US government as a major investor, in the second placement, alongside existing and new global institutional investors.
  • Continued strong safety performance: 0 lost time injuries (LTIs) in FY21 (FY20: 0), with 1.1 million LTI-free hours worked since February 2019.

Read the article online at: https://www.globalminingreview.com/finance-business/28102021/rainbow-rare-earths-announces-preliminary-results-for-fy21/

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