Rainbow Rare Earths Limited (LSE: RBW) is a UK listed company whose principal activity is mining for rare earth elements at its Gakara project located in Burundi, Central Africa.
Rainbow Rare Earths was admitted to trading on the London Stock Exchange in January 2017, following a placing of c. 65 million ordinary shares at a share price of 10 pence each.
Following admission, the number of ordinary shares in issue was c. 152 million which implied a market capitalisation of £15.2 million
In August 2023, the company had c. 599 million shares in issue and the RBW share price was 13.5 pence, giving a market cap of c. £80 million.
Overview of the company assets
Rainbow Rare Earths flagship asset is the Gakara project. It is believed to produce one of world’s highest-grade concentrates rare earth elements of around 57% TREO (Total Rare Earth Oxide).
The rare earth magnets produced are mainly used in electric vehicles and wind turbines and represent a vital element in the manufacture of motors and generators.
A maiden JORC-compliant Mineral Resource Estimate released in December 2018 indicated a significant ore deposit of 1,200 tonnes.
RBW has signed a ten-year distribution and off-take agreement with thyssenkrupp Raw Materials for the sale of 5,000 tonnes per annum of concentrate produced.
Investing in rare earth metals
To learn more about investing in rare earth metals or what rare earth metals are used for, please follow the links.
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