NDPR: POWERING THE GREEN REVOLUTION - JANUARY 2021 RAINBOW RARE EARTHS
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RAINBOW RARE EARTHS NdPr: POWERING THE GREEN REVOLUTION January 2021
DISCLAIMER
These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment
decision or engaging in any investment activity and should not be construed as, an offer for sale or subscription of, or solicitation of any offer to buy
or subscribe for, any securities of Rainbow Rare Earths Limited (the “Company”). Whilst the information contained herein has been prepared in good
faith, neither the Company, its subsidiaries (together, the “Group”) nor any of the Group’s directors, officers, employees, agents or advisers makes any
representation or warranty in respect of the fairness, accuracy or completeness of the information or opinions contained in this presentation and no
responsibility or liability will be accepted in connection with the same. The information contained herein is provided as at the date of this presentation
and is subject to updating, completion, revision, verification and further amendment without notice.
These Presentation Materials contain forward-looking statements in relation to the Group. By its very nature, such forward-looking information
Disclaimer
requires the Company to make assumptions that may not materialise or that may not be accurate. Such forward-looking statements involve
known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance
or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such
forward-looking statements. Nothing in this presentation should be construed as a profit forecast. Past share performance cannot be relied
on as a guide to future performance.
2 Rainbow Rare Earths Limited Corporate Presentation – January 2021
MARKET OVERVIEW
RARE EARTHS:
THE CRITICAL
BUILDING BLOCKS
Market Overview
IN THE GREEN
REVOLUTION
3 Rainbow Rare Earths Limited Corporate Presentation – January 2021
NdPr CONSTITUTE 90%+
OF RARE EARTHS VALUE
NEODYMIUM AND PRASEODYMIUM (NdPr) ARE CRITICAL ELEMENTS IN PERMANENT MAGNETS USED FOR MOTORS AND TURBINES
Permanent magnet production accounted for 91% of the total value of TREO consumption in 2019
Market Overview
Source: Adamus Intelligence
4 Rainbow Rare Earths Limited Corporate Presentation – January 2021
GLOBAL TRENDS ACCELERATE
NdPr DEMAND…
KEY GLOBAL MEGATRENDS ARE DRIVING STRONG AND DIVERSIFIED
DEMAND FOR NdPr
ANTICIPATED GLOBAL REO MAGNET DEMAND GROWTH
160,000 • AUTOMATION: Accelerating technological progress
141Kt by 2030
140,000 • LOW CARBON TRANSITION: environmental protection and climate
change
Market Overview
120,000
• SUSTAINABLE RESOURCE SECURITY: Increasing scarcity of and global
100,000 competition for resources
80,000 • SUPPLY CHAIN SECURITY: Against backdrop of heightened national
61Kt protectionism
60,000
NdPr DEMAND ACCELERATED BY EVOLVING GLOBAL EMISSIONS
40,000 LEGISLATION
20,000 • Wind power will be a key contributor to meeting Paris Climate Goals
- • UK to ban new petrol and diesel car sales by 2030 and increase offshore
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 wind capacity to a level sufficient to power every home by this date
Electric Vehicles / mobility Wind Power • Germany targets offshore wind power expansion targets of 20GW by
Industrial Consumer 2030 and 40GW by 2040
Other
Source: Adamus Intelligence
• France aims to produce 1m EVs annually by 2025
5 Rainbow Rare Earths Limited Corporate Presentation – January 2021
…POWERED BY
THE GREEN REVOLUTION
PROJECTED ANNUAL GLOBAL EV SALES
NO EXISTING ACCEPTABLE SUBSTITUTES FOR NdPr IN PERMANENT
MAGNETS FOR EVS AND WIND TURBINES
WHILST BATTERY CHEMISTRY IS STILL EVOLVING, THE MOTOR
TECHNOLOGY REQUIRED ACROSS ALL EVS DRIVES NDPR DEMAND
REGARDLESS OF BATTERY CHEMISTRY
Market Overview
• Growth in EV production forecast to lead to increase in demand for NdPr
of 25-90% by 2030
• Each new EV requires between 1-3kg of NdPr
• Average annual NdPr demand from EVs forecast to increase by ~4,200 –
9,600tpa from 2020-20251
RANGES FOR CUMULATIVE NdPr DEMAND FOR GLOBAL
• Value of global magnet REO consumption to increase from US$2.98bn to WIND TURBINE PRODUCTION THROUGH 2050
US$15.65bn by 20302
PERMANENT MAGNET ELECTRICITY GENERATORS FOR WIND
TURBINES
• Wind turbines consume ~600-830kg of REO per Megawatt3
• Estimated wind-capacity growth of 5.7% year-on-year to 20504
• Growing to +1.9TW of total wind capacity by 20505
6 Rainbow Rare Earths Limited Corporate Presentation – January 2021 Sources: 1. SP Angel 2. Adamus Intelligence 3. Curtin University 4. Bloomberg NEF New Energy Outlook 2020 5. NDRC-ERI “Aggressive Scenario.
Graph 1: Bloomberg New Energy Finance, Katusa research, US Global Investors Graph 2: World Bank
SIGNIFICANT PROJECTED NdPr
SUPPLY CONSTRAINTS
SECURING AN ETHICAL AND SUSTAINABLE SUPPLY CHAIN FOR
STRATEGIC MATERIALS
NdPr OXIDE – FORECAST SUPPLY – DEMAND BALANCE
• China currently dominates global RE production (~80%) 160,000
• The EU’s Action Plan on Critical Raw Materials aims to strengthen 140,000
domestic sourcing of raw materials in the EU and diversifying supply
Market Overview
from both primary and secondary sources 120,000
• US has announced contracts with REE producers to strengthen its 100,000
domestic supply chain
80,000
SUPPLY DEFICIT LIKELY DUE TO CHALLENGES TO BRINGING NEW
RARE EARTH MINES INTO PRODUCTION INCLUDE: 60,000
• Many projects are low grade 40,000
• Estimated high levels of capital for complex processing, ranging from 20,000
US$200-500m for major listed rare earths projects
-
• Current rare earth prices unlikely to support significant development 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
(20,000)
RAINBOW’S GAKARA AND PHALABORWA PROJECTS DEMONSTRATE
COMPARATIVELY LOW CAPITAL INTENSITY VERSUS OTHER MAJOR (40,000)
RARE EARTHS PROJECTS Production Demand Balance
Source: Adamus Intelligence
7 Rainbow Rare Earths Limited Corporate Presentation – January 2021
RAINBOW PROJECTS:
SUPPORTED EVEN AT CURRENT NdPr PRICES
NDPR PRICES ARE FORECAST TO INCREASE SIGNIFICANTLY BY 2030…
...but the economic viability of Rainbow’s Gakara and Phalaborwa projects is supported even at current prices
NdPr PRICE FORECASTS
120
Market Overview
110
100
90
80
70
60
50
40
30
2015a 2016a 2017a 2018a 2019a 2020f 2021f 2022f 2023f 2024f 2025f 2026f 2027f 2028f 2029f 2030f
Nd Oxide - US$/kg Pr Oxide - US$/kg
Source: Adamus Intelligence
8 Rainbow Rare Earths Limited Corporate Presentation – January 2021
PROJECT OVERVIEW
GAKARA PROJECT
Project Overview: Gakara Project
9 Rainbow Rare Earths Limited Corporate Presentation – January 2021
PRODUCING HIGH-GRADE RARE EARTH CONCENTRATE
FROM THE ONLY AFRICAN RARE EARTHS MINE IN PRODUCTION
PRODUCING HIGH-GRADE RARE EARTH CONCENTRATE FROM THE
ONLY AFRICAN RARE EARTHS MINE IN PRODUCTION
Project Overview: Gakara Project
• Located just south of Bujumbura, Burundi (East Africa)
• Large mining permit – 39km2 with over 1,500 occurrences of Rare Earth
(RE) discovered in outcrop on surface demonstrating large scale
mineralised system
• Trial mining and processing since 2017 has demonstrated amenability
for simple, low-cost gravity separation from ore sourced from across the
licence area
• Produces a high value RE concentrate of 52-58%
• TREO with low levels of radioactivity currently exported to China for
further processing
• Weighted towards magnet REs: NdPr represent >80% of value (19.5% of
mass)
10 Rainbow Rare Earths Limited Corporate Presentation – January 2021GAKARA DEPOSIT
A MIX OF BRECCIA AND HIGH-GRADE VEINS
Project Overview: Gakara Project
Source: PhD thesis, University of Rennes, December 2019
11 Rainbow Rare Earths Limited Corporate Presentation – January 2021JORC EXPLORATION TARGET FROM ACROSS THE LICENCE
Gasagwe – Trial mined by Rainbow between 2017–2019 Murambi South – Currently being trial mined by Rainbow.
producing 1,200t high grade concentrate. Production data and vein mapping data delivered updated
Production data and vein mapping data delivered updated target tonnage: 27kt-39kt @ 7-12% TREO
target tonnage: 27kt-39kt @ 7-12%TREO
Gasenyi – Historic Belgian mine which produced c.500t of
high-grade concentrate.
Mapped veins, trenching of large veins and historical
Kiyenzi – Breccia style mineralization records delivered updated target tonnage:
Drilling data re-evaluated alongside trenching, vein 47kt-67kt @7-12% TREO
mapping and channel sampling delivered updated target
tonnage: 252kt-342kt @ 1-1.5% TREO
Rusutama – Historic Belgian mine which produced c. 500t
of high-grade concentrate.
Mapped veins and historical records delivered updated
target tonnage: 23kt-33kt @7-12% TREO
Gashirwe West & East – Breccia and vein style
mineralization in high priority TECT target corridor.
Trenching & mapping of large veins and channel sampling Bigugo – Historic Belgian mine with three large veins mined
data delivered updated target tonnage: briefly before Belgian operations ceased entirely.
45kt-64kt @ 7-12%TREO Mapped veins and historical records delivered updated
target tonnage: 8kt-11kt @7-12% TREO
Gomvyi Central – Breccia and vein style mineralization in
Gakara – Largest historic Belgian mine which produced
high priority TECT target corridor.
c.3,500t of high-grade concentrate between 1947 – 1978.
Trenching & mapping of large veins and channel sampling
Mapped veins and historical delivered updated target
data delivered updated target tonnage:
tonnage: 61kt-87kt @7-12% TREO
15kt-22kt @ 7-12%TREO
12 Rainbow Rare Earths Limited Corporate Presentation – January 2021GAKARA EXPLORATION TARGET
JORC (2012)
EXPLORATION TARGET ANNOUNCED OCTOBER 2020 DEFINED CLEAR STRATEGY FOR MODULAR DEVELOPMENT
Targeting 10,000-20,000tpa RE concentrate production
Lower estimate Upper estimate
Project Overview: Gakara Project
Tonnes TREO % Tonnes TREO %
Vein Hosted Mineralisation
Murambi South 36,000 7.0% 52,000 12.0%
Gasagwe 27,000 7.0% 39,000 12.0%
Rusutama 23,000 7.0% 33,000 12.0%
Gakara 61,000 7.0% 87,000 12.0%
Gomvyi Central 15,000 7.0% 22,000 12.0%
Gashirwe West and East 45,000 7.0% 64,000 12.0%
Bigugo 8,000 7.0% 11,000 12.0%
Gasenyi 47,000 7.0% 67,000 12.0%
Total Vein Hosted Exploration Target 262,000 7.0% 375,0000 12.0%
Breccia Hosted Mineralisation
Kiyenzi grade tonnage model 98,000 1.0% 132,000 1.5%
Kiyenzi depth extension 60,000 1.0% 82,000 1.5%
Kiyenzi lateral extension 94,000 1.0% 128,000 1.5%
Total Breccia Hosted Exploration Target 252,000 1.0% 342,000 1.5%
Note: The potential quantity and grade of the Exploration Target is conceptual in nature, there being insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration
will result in the estimation of a Mineral Resource. Numbers are rounded to appropriate levels commensurate with the level of accuracy of an Exploration Target. The Exploration Target was estimated
as a range as required by the JORC Code (2012) and is based on data of varying quantity and quality, although is based largely on actual exploration, mining and processing results
13 Rainbow Rare Earths Limited Corporate Presentation – January 2021ROAD MAP
DELIVERING OUR LONG-TERM PLAN AT GAKARA
EXPLORATION TARGET ANNOUNCED OCTOBER 2020 DEFINED CLEAR STRATEGY FOR MODULAR DEVELOPMENT
Targeting 10,000-20,000tpa RE concentrate production
Project Overview: Gakara Project
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
Current status 2021-22 2022 2023 2024+
• Trial mining proof of • Upgrade Gakara JORC • Grow JORC resource • Build commercial scale • Establish downstream
concept at Gakara Project exploration target to base: large mineralised process facility for an beneficiation to produce a
in Burundi inferred resources1 system expected to initial 5ktpa concentrate cerium depleted mixed RE
support up to 10ktpa - production expanding to carbonate
• Producing +/- 54% TREO • Define technical 20ktpa concentrate 10-20ktpa
concentrate via simple requirements for initial • Further downstream
open pit mining and commercial scale • Complete full technical • Capital cost not expected processing to separated
gravity separation from production study on modular to exceed US$20 million Nd and Pr oxides to supply
high-grade stockwork commercial production for up to 10ktpa permanent magnet
vein system • Expand trial mining to facility concentrate plant manufacturers
confirm detailed
• Planned break-even trial knowledge of resources
mining delivering 100+ and mineralogy
tpm concentrate from Q4
2020
1. Exploration drilling to upgrade existing JORC Exploration Target to inferred resources dependent on future financing
14 Rainbow Rare Earths Limited Corporate Presentation – January 2021GAKARA
SIMPLE DEVELOPMENT OPPORTUNITY
EXPLORATION TARGET ANNOUNCED OCTOBER 2020 DEFINED CLEAR STRATEGY FOR LOW CAPITAL INTENSITY MODULAR DEVELOPMENT
Targeting 10,000-20,000tpa RE concentrate production
Project Overview: Gakara Project
15 Rainbow Rare Earths Limited Corporate Presentation – January 2021PROJECT OVERVIEW
Project Overview: Phalaborwa Earn-In
PHALABORWA EARN-IN
16 Rainbow Rare Earths Limited Corporate Presentation – January 2021PHALABORWA
EXCITING OPPORTUNITY FROM GYPSUM DUMPS
• Existing Gypsum stacks resulting from mining and processing of
Project Overview: Phalaborwa Earn-In
phosphate rock over 50+ years in South Africa
• c.35Mt in stacks which initial grab sample assays indicate hold c.210,000
tonnes rare earth oxides at 0.6% TREO; NdPr constituting 30% of the
basket
• Historical processing, including initial flotation by Foskor followed by
processing in Sasol’s PhosAcid plant, has deposited REE in chemical
form in two gypsum stacks, removing 1st stage of usual complex
processing requirements to deliver higher value rare earth carbonate
• Assay results by Alfred Knight Laboratories indicate low levels of
radioactive elements in gypsum stacks
• Re-processing has significant environmental benefits: redepositing
clean, benign gypsum suitable for usage in building and fertiliser
industries
• Project is permitted and benefits from excellent local infrastructure
Image: Sasol’s RE carbonate pilot plant
17 Rainbow Rare Earths Limited Corporate Presentation – January 2021PHALABORWA
EARN-IN AGREEMENT
• Earn-in agreement signed with Bosveld Phosphates
Project Overview: Phalaborwa Earn-In
• US$750k consideration for earn-in payable in three tranches in cash and
shares over a period of 12 months
• US$250k payable in cash on completion of initial confirmatory due
diligence process, completed in December 2020
• Second US$250k tranche payable after 6 months in Rainbow shares at
the then prevailing share price
• Final tranche payable after 12 months in cash or shares (at the then
prevailing share price) at election of Bosveld
• Rainbow to fund pre-feasibility study to earn an initial 70% in the
unincorporated JV – mechanism to allow Rainbow’s JV ownership to
vary from 60% to 85% depending on IRR of PFS at spot rare earth prices
versus initial 25% benchmark
Image: Sasol’s RE carbonate pilot plant
18 Rainbow Rare Earths Limited Corporate Presentation – January 2021SUMMARY
RAINBOW:
A STRATEGIC
SOURCE OF
RARE EARTH
Summary
MINERALS
FOR A GROWING
MARKET
19 Rainbow Rare Earths Limited Corporate Presentation – January 2021RAINBOW
A STRATEGIC SOURCE OF RARE EARTH MINERALS FOR A GROWING MARKET
Rainbow Rare Earths is uniquely positioned to benefit from
the expected growth in the demand for Rare Earths to
power the Green Revolution
• Rainbow has both project and country risk diversification from two
potentially world-class, scalable projects in Burundi and South Africa
• Huge growth in demand expected for NdPr to power the green
Summary
revolution
• Growing supply/demand imbalance
• Mounting pressure from Governments and investors to secure
independent rare earth mineral supply
• Both Rainbow’s projects enjoy simple mining and processing with low
levels of radioactivity for expected low capital intensity development
opportunity
20 Rainbow Rare Earths Limited Corporate Presentation – January 2021OUR BOARD
ADONIS POUROULIS GEORGE BENNETT
NON-EXECUTIVE CHAIRMAN CEO
• Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration • 25 years in finance and management, including as partner in stockbroking/advisory
and development of natural resources across Africa including diamonds, firms in SA
precious/base metals, coal and oil and gas. • Former CEO of Shanta Gold Ltd, successfully listed on LSE in 2005
• Founder of Rainbow and Petra Diamonds (LSE:PDL); Founder and Director of Chariot • Financed and started MDM Engineering, responsible for building 22 process plant and
Oil & Gas (AIM:CHAR) and Founder of Pella Resources Limited completing over 100 feasibility studies – sold after 8 years to Foster Wheeler for
US$120m
• Seed-funded and raised initial capital for OneCorp Ltd
Summary
SHAWN MCCORMICK ROBERT SINCLAIR
NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR
• International affairs specialist • Chartered Accountant with over 38 years’ experience in finance & accountancy
• Over 25 years of political and extractive industries sector experience having served • Founder and former MD of Artemis Trustees Limited
in The White House as Director for African Affairs on the National Security Council • Fellow of the Institute of Chartered Accountants in England and Wales
(Washington)
• Previously Political Affairs Director of BP (London) and VP of TNK-BP (Moscow)
ALEXANDER LOWRIE ATUL BALI
NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR
• Investment banker with 13 years’ experience and previous director roles at Deutsche • Corporate CEO with extensive experience in tech, government contracting and
Bank and RBS regulated industries
• Co-founder of Telemark Capital LLP • Currently Non-Executive Director of Gaming Realms Plc and Chairman of Meridian
• Significant market experience: IPOs and primary and secondary equity offerings Gaming
• Previously held divisional CEO or President positions with IGT (NYSE), Aristocrat
(ASX), and Real Networks (NASDAQ), as well as a venture capital firm
21 Rainbow Rare Earths Limited Corporate Presentation – January 2021OUR EXECUTIVE MANAGEMENT
GEORGE BENNETT PROF. GILBERT MIDENDE
CEO CHARGE D’AFFAIRS - BURUNDI
• 25 years in finance and management, including as partner in stockbroking/advisory • Former Minister of Energy and Mines of Burundi, twice
firms in SA • Former Minister of Higher Education and Scientific Research of Burundi
• Former CEO of Shanta Gold Ltd, successfully listed on LSE in 2005 • Former Rector of the National Burundi University
• Financed and started MDM Engineering, responsible for building 22 process plant and • Former Director General of Geology and Mines of Burundi
completing over 100 feasibility studies – sold after 8 years to Foster Wheeler for • Six years as a World Bank consultant on mining issues in the sub-region and Burundi
US$120m
• Seed-funded and raised initial capital for OneCorp Ltd
Summary
PETER GARDNER CESARE MORELLI
CHIEF FINANCIAL OFFICER CHIEF EXPLORATION GEOLOGIST
• Qualified Chartered Accountant • Geologist with over 33 years’ experience
• 15 years’ experience in mining industry leading finance teams across Africa and • 18 years in diamond exploration with De Beers. 4 years with BHP Billiton as Minerals
developing nations Exploration Manager for Africa.
• Former CFO of Amara Mining plc (up to acquisition by Perseus Mining Ltd), Chaarat • Founded Benzu Minerals (Pty) Ltd. in 2009
Gold, Piran Resources and Alexander Mining • Involved in Rainbow REE, Desert Lion Energy, and a series of Au, Fe, Cu-Co, and REE
exploration ventures
DAVE DODD CHRISTOPHER ATWOOD
TECHNICAL DIRECTOR PROJECT MANAGER - BURUNDI
• 45 years of extractive metallurgy experience • 25 years’ experience in mining and extractive industries.
• Dave Dodd – Metallurgical Project Consultant • Track record of driving expansion and minimising costs
• BSc (Hons) Chemical Engineering (1974) • Associated with startup ventures in remote locations.
• Fellow of Southern Africa Institute of Mining & Metallurgy • Led Operations up to 35MTPA successfully
22 Rainbow Rare Earths Limited Corporate Presentation – January 2021KEY SHAREHOLDER INFORMATION
BOARD SHAREHOLDINGS
Shareholder Holding Ticker Market Market cap Share price Shares in Brokers
issue
Adonis Pouroulis* 16.4% RBW.L LSE £57m 12.3p 468m SP ANGEL
George Bennett* 7.4%
SHARE PRICE
Summary
Shawn McCormick* 2.0%
Alexander Lowrie 1.2%
Robert Sinclair 1.1%
Atul Bali 0.8%
Total 28.9%
* Held through a discretionary trust
23 Rainbow Rare Earths Limited Corporate Presentation – January 2021RAINBOW RARE EARTHS THANK YOU Contact us: GEORGE BENNETT PETE GARDNER CEO CFO SA Mobile: +27 82 652 UK Mobile: +44 771 779 4251 Office Number: + 27 11 996 3500 Skype: petegardner73 Skype: George.bennett72 Email: peteg@rainbowrareearths.com Email: georgeb@Rainbowrareearths.com
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