24th Oct 2022 11:34
Rainbow Rare Earths Ltd - Guernsey-based mining company focused on South Africa and Burundi - In the financial year that ended June 30, records no revenue, compared to USD639,000 the year before. Pretax loss widens to USD4.0 million from USD2.7 million. Finishes the year with USD4.1 million in cash, compared to USD573,000 a year before, and has USD2.9 million as at September 30. Expects total cash outflow of USD4.7 million in the period to December 31, 2023. This will necessitate fundraising, Rainbow explains.
"Management's reasonably plausible downside scenario, which includes the discretionary costs to progress a feasibility study at the Phalaborwa project and an allowance for other business development opportunities, suggests that a total of USD9.2 million will need to be raised," it says.
Notes increasing demand for magnet rare earths, "underpinned by rising electric vehicle sales forecasts and mounting capacity acceleration in the offshore wind market".
Current stock price: 11.45 pence, down 2.6% on Monday in London
12-month change: down 24%
By Elizabeth Winter; [email protected]
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