CEO Q&A with Martin Eales at Rainbow Rare Earths Ltd (LON:RBW)

Rainbow Rare Earths Ltd (LON:RBW) Chief Executive Officer Martin Eales caught up with DirectorsTalk for an exclusive interview to discuss their interim results, the plan for 2019, strong customer demand and rare earth prices.

 

Q1: Martin, interim results out today, what are the key points that we should take away from those?

A1: Well, I think we had previously announced the main production statistics in our quarterly update that came out a few weeks ago, at the end of January so there’s not a lot of new news in here.

Obviously, the full interim financials statements are contained in the announcement, but I think it’s a reiteration from us of the expansion plans we have over the course of 2019 to get multiple pits into operation, don’t forget we opened the second pit, Murambi, only in December and we’d like to open another two during the course of 2019. Really, it’s that movement to increase scale and benefit from those economies of scale that will lead us, we expect to breakeven in profitability in the second half of calendar 2019.

 

Q2: So, what is the plan for 2019 now?

A2: I was just building on top of that, we want to ramp up pit number two, Murambi, to full operational capacity and we’re working on opening both the Kiyenzi kit and the Gomvyi pit, those new pits, as we’ve learned from Murambi, takes about 6-9 months to get each new site ready.

That’s a process of developing the model for the veins that exist before mining in each pit, getting the necessary environmental compliance approved, development work which is often the infrastructure i.e. cutting access roads and preparing waste dumps and importantly, making sure local land owners are compensated when we move onto the land.

So, it’s a process we’re now relatively experienced in as we’ve done it twice and we expect to get more efficient as we move forward with the new pits.

 

Q3: You talk about customer demand being strong, can you expand on this a little for us?

A3: Yes, I think obviously with some of our slower than earlier anticipated ramp up, it’s easy to lose sight of the fact that when we started this, many many people didn’t think we could produce a product that would sell and I’m pleased to say that not only is our product selling well, the customers are strongly demanding more.

Our relationship with thyssenkrupp is working very well, the feedback from the customers is very positive and that’s really behind our decision to increase the rate of mining as quickly as we are because we know we’ve got a ready and captive market there for the product.

 

Q4: I suppose the other important thing is the rare earth prices, what’s the outlook like for that?

A4: Well, it’s funny, we often say that with virtually every other commodity, you have by definition people who are slightly more positive and slightly more negative, and the commodity price is somewhere in the middle.

It seems with rare earth that with every forecast you see out there is predicting strong price rises for rare earth, simply because people can see increased demand coming and relatively scarcity of new supply.

So, we’re firmly bullish based on our understanding of the market and those forecasts so in recent months, as we noted today, our price has remained fairly flat, over the 6 months it fell slightly but we’re still 10-15% up from the point we IPO’d a couple of years.

So, it’s positive in the long-term perspective but we believe, and most of the forecasters believe, that there’s a lot of strength still to come in rare earth prices.

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    Rainbow Rare Earths Plc

    More articles like this

    Rainbow Rare Earths Plc

    Rare-earth elements spark resource war

    Rare-earth elements (REE) — also known as rare-earth minerals or rare-earth metals — are a group of 17 chemical elements of the periodic table. Although most of them are not terribly rare, they are highly strategic

    Rainbow Rare Earths Plc

    Uses of rare earth elements

    As rare earth elements are a group of 17 elements with many irreplaceable properties, rare earth metals can be widely used in many areas including magnets, catalysts, metal alloys, electronics, glass, ceramics, new materials and some other high-technology fields. As essential and functional materials,

    Rainbow Rare Earths Plc

    Rare Earths outlook to 2029

    The rare earth industry continues to be an important part of not only the development and manufacture of high-end technologies, but also as a geopolitical tool in an increasingly unstable and unpredictable global market. Disruptions to

    Rainbow Rare Earths Plc

    Rare Earths – What are They?

    Rare earths are a set of 17 chemical elements in the periodic table, specifically 57 through 71.  Scandium and Yttrium are also considered rare earth elements because they tend to occur in the same ore deposits

    Rainbow Rare Earths Plc

    Burundi: Quick economic recovery expected

    On 25 May, Burundi’s electoral commission announced that the ruling party candidate, retired general Evariste Ndayishimiye, had won last week’s presidential election with 69 percent of votes cast and an 88 percent turnout. The initial results

    Rainbow Rare Earths Plc

    US falters in bid to replace Chinese rare earths

    Rising tensions with China and the race to repatriate supply chains in the wake of the COVID-19 pandemic have given fresh impetus to U.S. efforts to launch a renaissance in rare earths, the critical minerals at

    Rainbow Rare Earths Plc

    Rainbow Rare Earths further defines Gakara orebody

    London-listed miner Rainbow Rare Earths reports that, resulting from a recent structural and lithological review of its Burundi-based Gakara project, three large carbonatite bodies have been identified, representing the regional source of rare earth elements. The structural

    Rainbow Rare Earths Plc

    Rare Earths — What are They and How are They Used?

    Rare earths are a set of 17 chemical elements in the periodic table, specifically 57 through 71.  Scandium and Yttrium are also considered rare earth elements because they tend to occur in the same ore deposits

    Rainbow Rare Earths Plc

    The collapse of American rare earth mining

    Out in the Mojave Desert in California lies the Mountain Pass mine, once the world’s foremost supplier of valuable rare earth minerals — 17 elements deemed critical to modern society. In an age where China controls 80 percent

    Rainbow Rare Earths Plc

    RE magnets for Electric Vehicles

    Types of Magnets There are four main types of magnets: ceramic (ferrite), AlNiCo, Samarium Cobalt (SmCo), and Neodymium (NdFeB). The latter is one of the most commonly used in motors for hybrids vehicles and EVs. Neodymium

    Rainbow Rare Earths Plc

    Do we have enough Rare Earth Metals for EVs?

    It’s important to distinguish between: ‘rare-‘, ‘precious-‘, and ‘critical-‘ earth elements. The terms are not interchangeable, but unfortunately often are in popular media.  It’s also important to distinguish between ‘reserves’ and ‘resources’. Reserves denote the amount that can be

    Rainbow Rare Earths Plc

    What are the rare earth elements (REES)?

    REEs refer to a group of 17 unique chemical elements: the lanthanides which are comprised of 15 elements, plus scandium and yttrium which are grouped alongside the lanthanides on account of their similar physical and chemical