Rainbow Rare Earths Ltd (LON:RBW) CEO Martin Eales talks to DirectorsTalk about its Gakara production and operations update for the three months to 31 March 2018. Martin talks us through the key points investors should note, how the rare earths market is currently performing, the recent drilling campaign and what we should be looking out for in terms of news flow over the coming months.
Rainbow Rare Earths Ltd focus is on the Gakara Project in Burundi, one of the highest-grade (47%-67% Total Rare Earth Oxide) rare earths projects globally and the only African producer.
The Company began production of rare earth concentrates in Q4 2017 and is currently ramping up to a targeted run rate of 5,000tpa by the end of 2018 and 6,000tpa by the end of 2019. Rainbow has a ten-year distribution and offtake agreement with multinational thyssenkrupp Raw Materials secured for the sale of at least 5,000tpa of concentrate produced.
The Gakara basket is weighted heavily towards the magnet rare earths, including neodymium and praseodymium, which are driving demand and account for 70% of annual global REE sales due to their use in vital components in motors, generators, wind turbines, and electric vehicles.