Rainbow Rare Earths Ltd (LON:RBW) CEO Martin Eales talks to DirectorsTalk about its audited results for the 12 months ended 30th June 2018. Martin summarises some of the achievements that have been made during the period, updates us on sales, the new production from Murambi, how the exploration front is progressing and what shareholders should be looking out for over the coming months.
Rainbow Rare Earths Ltd’s focus is the Gakara Project in Burundi, one of the highest in situ vein 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 Materials Trading 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.