Rainbow Rare Earths (LSE:RBW) — Phalaborwa Project, MoU Neo Performance Materials, PFS and DFS progress, US listing evaluation

0:00 Good afternoon, and welcome to the RAINBOW RARE EARTHS LIMITED investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time by the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to George Bennett, CEO. Good afternoon, sir. Good afternoon. And welcome to everybody on this call. This is RAINBOW RARE EARTHS investor feedback call. And I appreciate you taking the time to come and listen to the RAINBOW story if you haven't heard it before or an update if you can share with us at RAINBOW. Thank you.

0:48 New disclaimer. Just to reiterate to the market why we think RAINBOW is a unique opportunity in the road space. As I said, we've engineered the recovery of rears from phospho gypsum waste residue. And the beauty about this is that there's no geological risk. Geology does not play a part in this project or in our in our multiple projects, nor does mining... Conventional mining that we know can be risky in the typical sort of roof mining project. And we believe we are unlocking some global long term opportunities as will become apparent when I go through the presentation. We currently have two tier one projects.

1:33 We believe our our... Both are in the highest end of the margin curve for mining projects and certainly road projects in the world, and we're at the lowest end of the of the the cost spectrum as well. And it will be apparent once again as I say as I go through this presentation, reiterate those. But but the studies we've done on these projects to date echo those sentiments I've just mentioned. And so it's our intention to be a strategic supplier of lights and heavy rears to the western supply chain that is currently being developed at pace, being driven by The US. And we now see companies like Japan, Australia supporting this initiative and Europe starting to play catch up in this area.

2:21 Just to... For the audience who might not be aware, but where RAINBOW's resource was was was delivered or or or created is from hard rock phosphate mining. You mine hard rock phosphate rock for... Which is then concentrated through a flotation process into a phosphate slurry feed. This slurry is then fed into a phosphoric acid plant where you add sulfuric acid and heat to produce phosphoric acid for fertilizer. It's your key ingredient for fertilizer globally, and it's your essential ingredient, as I said, for fertilizer. The RARE EARTHS in the hard rock phosphate rock, but not economic to mine just for the RARE EARTHS, but due to the concentration of the phosphates slurry into high grade phosphate slurry feed into the phosphoric acid plant.

3:13 The rivers are also concentrated in this flotation process, and the rivers then don't... Fortunately, don't depart with the phosphoric acid into the fertilizer, but the rest deport with the waste residue, now called phosphory gypsum, and the waste residue sits on phosphory gypsum stacks globally. Now not all phosphate gypsum is the same. We've targeted hard rock carbonatide source of phosphate rock because there the roads are much higher than your sedimentary or marine sources of phosphate rock. So we specifically... Once we realized what we had at parabola, we decided to target other projects in the world. And the first other project that we targeted very successfully was the the Ubaraba project in Brazil that I'll talk about.

4:02 As I said, the byproduct phosphoryl gypsum has got the rest in it. And because you've added sulfuric acid and heat in the phosphoric acid production process, which is what you do to your risk mineral concentrate to crack risk before you can separate them further, the sulfuric acid and heat, which was applied in the phosphoric acid plant, means that we have chemical stockpile that's already cracked in the rear sense, and this also reduces CapEx and operating cost. And basically, this lends itself straight to free dig of the fossil gypsum. We'll slurry it, put it into a continuous countercurrent leach system. We will leach the rest and sulfuric acid and then generate a very high grade pregnant leach solution, which then goes into to another step before we feed it into a... Which they can talk about just from a high level sense of sense of of the word. We feed into continuous ion exchange circuit, which also once again upgrades the rest in any of its solution, drops out lots of the impurities, and then we feed a typical solvent extraction circuit for rear separation, which is commonly used in all roof projects around the world. Not all roof projects separate.

5:28 All roof projects stop at a mixed roof concentrate. Some projects stop at a mixed roof carbonate, and other projects are going further down the road into separation like RAINBOW is doing. And we're essentially what LIMITED, the biggest roof producer outside of China and the West have done for their whole production life. Whereas LIMITED produces separated neodymium oxide, which is which is at a grade that was... That you could feed directly to the midstream, which is the metallization, which would then be able to feed a permanent magnet manufacturer. So LIMITED has done that, their oil production life, and they produce an ECG plus, which is samarium, europanium, and ganglionium product with the heavy roofs all all concentrated in this mixture of carbonate.

6:19 And that carbonate they sold for two refineries for separation, be it in China and some in Japan. But it's only recently, late last year, where LIMITED commissioned their own heavy route of separation plant that they decided to separate the ECG plus themselves. But right up until the end of last year, LIMITED did not separate the heavies themselves and RAINBOW are not gonna separate these these heavy routes themselves. It's very, very complicated and very expensive process from CapEx and OpEx point of view. And we've taken the route to to mirror what LIMITED for their first twelve years of their production life. It's something we can look at much further down the life of RAINBOW, but at this stage, we think we made the right decision. We also capture about 95% of the value of our red basket by...

7:08 Into the stages that we're going. So we're not giving... It's not worth chasing the small amount of value you get in for your European or ganglion and so forth because those rears are much much harder to separate down the line and leads to a lot more CapEx, a lot more OpEx that we run the numbers. It's not really worth it. Just to reiterate that simply again, a typical roof project, you've got your mining, then you have to haul in stockpile. You know, if it's a hard rock project, you've got your crushing, milling, and grinding. Then you have a flotation process to produce a mixture of concentrate. That concentrate, you then have to crack chemically. As I said, you're adding sulfuric acid and heat in that process, and you then produce a mixture of carbonate. And only then when you got that mixture of carbonate in chemical form, can you go into a solvent extraction circuit downstream.

8:02 Solvent extraction is the de facto gold standard for separation of all rare earth projects around the world, and RAINBOW is using exactly the same solvent extraction and our back end circuit as well. The solvent extraction RP tends to sit in the hands of a few providers around the world that have this. You've got people like Insta in Australia, Technicas in Spain, you've got Caraston in France and so forth. And you'll see later in the presentation that we've decided to go with near performance materials and we've become apparent while we've done so. It's a rainbow far more streamlined. We just reclaim the gypsum with the with free deep front end loaders. We've... As I said, with SILARIAT, we're going to acid leaching, then we're going to multistate separation that they will highlight a bit later as well.

8:55 As I mentioned, two tier one projects And at the moment, we've... We were originally gonna release a DFS, but we've subsequent... Subsequently changed to releasing a prefeas now in this quarter and the DFS in the first half of next year and will become apparent why we've made we've made... We've changed slightly. The Ubarabra project, it's kicked off its pre feasibility study in Brazil. That's going nicely. And as I said, we... The core opportunities we got near... Very near term pre freeze, also quite near term. The DFS, Uberaba gives us a solid platform for growth. The key key about the two projects is the one project has got a sixteen year life because it's a finite source of gypsum.

9:42 Whereas the the Uborago project is an ongoing phosphoric acid production facility. It's been operating in Brazil, and it's gonna last for over thirty years. In fact, it's even longer than thirty years. So we know that that project is a very long life RARE EARTHS project and, you know, key in in all projects is a grade and scale. You know, the... In Pelobor, we've got 4,400 PPM of RARE EARTHS and gypsum. In Bora, we've got 5,100 PPM in the gypsum. And these grades are significantly multiples of iron and clay liquid grades and roof projects. And so not ironic liquid, ironic clay projects and that you see around the world. We're between four and eight times higher grade than these projects and then... And it's similar because those projects have a a much lower mining cost than a hard rock mining project, but ironic liquids do carry cost with some initial mining and our nickel projects, I should say. And as I said, when we compare ourselves against those, we've got very, very high grade in comparison. In fact, we've seen some hard rock projects with half percent grade, you know, there's 5,000 and we've got 5,100 in alone. So we believe very, very attractive from great point of view and and the life of the project. And and both of these projects have significant life and, you know, sixteen years is more than enough for an initial mining project and thirty years for for

11:13 for project in Brazil with Uberaba gives us that that long term. And there are there are further opportunities that we'll be looking at. Just to highlight for the audience who might not have seen this, the project in Palabor in South Africa is a brownfields project. It's within five kilometers of mining time that's been in existence for over sixty years. The two operating mines just north of our border, one's the the old route into copper mine called copper. The other one's the phosphoric... Sorry, the phosphate mine run by Foscor that's still mining phosphate rock, but that phosphate rock is now slurried and sent down to a phosphoric acid plant in regions in South Africa. It does not feed the phosphoric acid plant that you see in the top left hand side of this photograph anymore.

12:07 That's the old mothballed plant. Those two stacks here are the gypsum stacks, 35,000,000 tons. And the triangle to the right of that photograph, that's where we'll be lining a new a new stack site. So this is a big environmental cleanup. We're gonna be lining that area and stack b, which is the smallest stack you see, will be reclaimed first and then we'll deposit that gypsum onto stack c, which is the new line stack to RC standards, and then we'll start reclaiming the second stack, which we call stack a. And once once, as I said, stack c is at its maximum height, and while we while we're building stack c to its maximum height, we'll be lining the area where stack c is and the balance of stack a will go into the lined area of of stake of stake b and obviously, stack a. So from that point of view, we've got very good support from the South African government because there's a massive cleanup of the site, environmental cleanup.

13:07 And very importantly, there's already an environmental fund to clean up the site. So that's not RAINBOW's cost, but what we are doing is is effectively cleaning up the site and that's why we've got massive support. And very importantly, we'll be selling the phosphoryl gypsum into the South African market as well. We're looking at circa 400 to 500 odd thousand tons of gypsum per annum. We'll be selling into the South African gypsum market and the money we get for that gypsum is not enough feasibility study. It's a it's a sweet into the project and when we complete our DFS, we will be able to put numbers to those gypsum off takes that we're negotiating at the moment. But that's another bonus for this project. And basically, we've been able to simplify flow sheet from the initial preliminary economic assessment with in house we've done in our own lab over the last eighteen months, almost two years now, in a very low cost environment.

14:02 And And that's enabled us to move the project ahead even quicker than than we would have been able to do so had we been using outside laboratories. As I mentioned, we're gonna be producing separated neodymium, prasidinium and the ECG plus group at greater than 99.99% purity. I've been asked a question as to why we've spoken about 99.5% in our previous in our previous reports to the market. The reason being that in previous presentations, we are... We will get 99.5% purity for our separated EDPR. But when it's the August media and it's sort of the Asian Metals Index that we will be priced again, they only quote 99% purity and that's why we've gone 99% purity in our announcements. Just to clear that that up for for the audience.

15:03 Just to recap, it has very, very compelling economics. These economics were updated two years ago in December 24. You're gonna get a prefeas now. As I said, this year, which will have these numbers updated to current pricing to your pre FS level. I should must reiterate that even though it is... We are calling it a pre fees. As we've... As we send the RNS a couple of months ago, 75% of our flow sheets in the... In DFS engineering. So 75% of our costing and our CapEx and our OpEx is at DFS level of certainty. It's only the final separation circuit. This is a separation circuit that will be at a pre phase level of CapEx and OpEx and that's why we're calling it a pre phase overall.

15:53 But we are very confident that our final DFS number is gonna be very close to our prefeas number. The market can take some comfort in that fact that our our prefeas number is gonna be very close as I said. But this number that we updated two years ago was using spot rate of pricing of $110 a kg for EDPR. And as you can see, very robust economics. I must stress that that 75% of our project values in EDPR. So the fact that there's a bench... There was a full price negotiated with the US government last year, a $110 a kg for EDPR. Just so happened to be the spot pricing that we use in our our feasibility study. And we see this EDPR trading in China since then, anywhere between a $110 a kg and up to a $120,130 dollars a kg. So this seems to be an established price now going forward for neodymium and perseverium and we believe that trade will continue. But we haven't used forecast pricing. We've always used spot pricing in our numbers. And we also have the two heavy real estate are very sought after in the Western world at the moment and economic quantities in Pallabaugh as well as in Brazil.

17:09 And we also recently announced... Well, I'll say recently, a year ago, announced that we have a significant value of terbium in our in our part... In our ECG plus, circa 140 odd tons. And sorry, not to have been atrium. We've got we've got atrium in our in our in our paddle board project, 140 tons of atrium. And atrium is very sought after at the moment. We see the atrium pricing softening from where it is at the moment, but it will also be a bonus to the project that wasn't taken into account previously. You would have seen just ten days ago we announced MOU with near performance materials, which is an off take. I mean, all roof projects need to enter into off take arrangements to get financing.

18:00 It's a specialty mineral similar to uranium, you know, if you're running uranium project, you're going to offtake negotiation, roof projects are not dissimilar. And basically, we've announced an offtake MOU with with NEO Performance. Near performance have been around for thirty five years. They're the most established midstream and magnet manufacturer in the West that with the longest history in the West of making high performance permanent magnets and and also doing metallization and separation. They've been running numerous facilities around the world and they've also got operations in Europe. And basically, the off take from is designed to feed their facilities in Europe to be part of that recent supply chain that we've spoken about.

18:52 This was the final piece of the flow sheet that we were looking to to secure. We weren't sure which technology provided to go with. We had a number of technology providers we could have chosen from. But based on NEO's experience, the fact that they are running plants for thirty five years and they've got various facilities around the world and their technical team. We... The interaction with the RAINBOW technical team was very, strong. We decided to go with NEO. We are going into a definitive agreement with NEO very shortly. We've already started the process. This MOE was non binding, but the agreement between Neo and RAINBOW is to make this a binding agreement as soon as possible. And the legal work on the long form has already started, so it will be a near term announcement of the binding agreement.

19:40 The... And we'll also give some pricing metrics in that final announcement. But as I can say, the the the pricing for the off take is at market market pricing plus a premium, which we'll talk about when we announce those. And as I said, it will also be very favorable for the project economics as well. David, if you just want to add here on the slide about NEO. Yes. So we we were very careful in our selection of the technology partner here. We spent some... A fair amount of time assessing the the various options in front of us. Neo really has stood out as being an outstanding op... Option for us. And the...

20:26 What I really enjoyed about Neo is they were very open and willing to share knowledge with us even prior to the MOU being that full. We've received samples from us, have already proactively done tests on that before we actually have the MOU in place. On top of that, they've also evaluated our project to come and visit with us, have a look at our lab, look at the work we've done, satisfied themselves that that this is a solid project that's going to deliver into them, which is obviously quite important for them too. The... So we... We're thoroughly enjoying the relationship with Neo at the moment. The... We're moving very quickly through the test program and the evaluation of that technology in terms of actually what it will look like for us.

21:20 We've been able to make visits to their project so we can see their operations. And it's it's very comforting to be able to see somebody actually performing the separation technology, operating it, and with thirty five years of experience of doing so, and the further sort of downstream knowledge in terms of metallization, in terms of magnet production, etcetera. So so that it's a very integrated knowledge base that we're tying into here. So, yep, we're we're very happy with Neo and enjoying the relationship. Yeah. I think what's important that Neo, we're prepared to take 40% of our NDPR separated NDPR production for their permanent magnet facilities and they...

22:11 We negotiated 65% of the ACG. As I said, all offtake agreements companies have been struck around the world, you know, the off takers are are very very focused on the heavies, looking for the heavies. And we are... We're very confident that we'll also be able to still find... Well, we know that we'll find guys who want to take more in the PR from us. And as I said, by the time we come to financing with the debt finance... Financing banks, They will look to have more of this production, the NDPO production secured in offtake. But we are... We'll be making announcements on that in due course as well. But and like all these offtake agreements, the guys are a number of guys are dealing with facilities in in in France.

23:07 And likewise, those guys are supplying the Essex technology for off take. Well, I say for off take, they're paying for the off take, but they're also providing the six technology and it's no different from Neo. Neo wanted off take and we saw that the six technology is well established. It's... They have it in multiple plants around the world and thirty five years of of experience, we felt that the ASIC's technology would be the best the best guys to go with in the market. And of course, we need off take to be spoken for for any project to get financed. I think what the market also would be pleased about is that we will be negotiating a toll treatment for the balance of the ECG plus, 35% is not it's not signed with NEO.

24:01 And the beauty about that, I feel, is that that will enable us to then market ourselves directly as RAINBOW separated dysprosium, separated terbium, and separated the trim. And that will give us a lot lot... I think, be very beneficial to the project in terms of final pricing for for the balance of of those three separated routes. It's interesting to note that when I announced it, we had determined our... In our feed stream at at at at last year. Within two weeks, I got a phone call from from General Electric in The States saying, oh, George, we see you've got Itrium in your product. We'd like to negotiate with you, you know, an offtake with Itrium. We're prepared to give you a full price. When will you be in production?

24:51 And it's all very well for me to say, yes, we're gonna be in production in early twenty twenty nine. But at that stage, it it would have been in an ECG plus product and it would have been with somebody else who's separating it. The fact that I I would be able to say to GE now, yes, we're gonna have circa 40 or 45 tons of separated the trim and we could negotiate that separately in an offtake agreement with some kind of pricing mechanism, I think is very powerful, enables RAINBOW to negotiate very strongly the final pricing on those on the balance of that ECG production in terms of the dispersion in the turbine and the trip as I've mentioned. As I've covered, the pre fees will be in this quarter and with the DFS coming out next year. But... And once again, just want to reiterate the prefeas numbers we expect to be very, very, very, very strong in terms of very little surprises between that and the the FPS number coming out next year.

25:54 As we've mentioned, the project in Brazil is a significant project, and it's it's a... Almost a carbon copy of what you see at Balabur. You can see the gypsum stacks here. Looks very similar. Reachy about this project in the Barabur is that it's... Once again, it's a brownfield site. It's completely fenced. It sits within the sugarcane boat in in Brazil. So for as far as I can see all around you, you just see sugarcane and these guys sell 4,500,000 tons of fossil gypsum a year into the the agri industry in in Brazil. You've got sulfuric acid being produced on-site. You've got... You know, most of the permits that the site would require are already in place because it's a live operating site.

26:41 They've got a very skilled workforce. Obviously, part of that workforce would would would skill up and and support the guys that we employ for for the the roof and plant and then on the same site. They've allocated those ground within the fence boundary of that site there. And that is... We're fortunate that we're not cutting down Amazon rainforest or or or destroying bush to build this facility or move any villages in that. It's a brownfield site, very well established and operating for also probably thirty or forty years in Brazil and it's got another thirty plus years of life. Very high grade and we... The March economic assessment that we published this year once again showed very strong economics, very low CapEx for this type of project.

27:35 And that's basically because once again, you've done no mining involved. We're taking the feed stream of the fossil gypsum directly from the one phosphoric acid plant on-site, feeding it into our root process plant, and then giving them the feed stream back. So very, very efficient and very excited about this project. The the pre phase has kicked off in Brazil, and it'll be complete circuit this time next year in 2027. As I've mentioned, when we published the economic assessment in March this year, once again, very strong financials, post tax are of over 45%. Once again, in the... You know, this would produce EBITDA circa 210 odd million dollars a year.

28:23 EBITDA margin of over 70% post tax. That's a post tax EBITDA margin. And capital expending... Expenditures, circa $280,000,000. Very, very low CapEx and a very low operating operating cost of... Per kilogram of total red oxides. And once again, we've got desprosium and terbium, and we've got a fair quantity of in this project as well. It's gonna produce about 1,900 tons of neodymium per seidinium per annum as well, slightly more than palaborate, a slightly higher grade and slightly higher throughput. But, yeah, a very, very robust and very short life project to get into production. So we only... So negotiating with Mosaic in 2023.

29:11 We signed the non binding MOU. Earlier this year, we signed a more definitive agreement with Mosaic where we set out the shareholding. RAINBOW is 49% and Mosaic's 51%. And we're very pleased with the outcome of those negotiations. And as I said, this is a massive, massive project in terms of life, in terms of profitability, which adds significantly to RAINBOW in terms of NAV as well as EBITDA once it's in production. Just to go through the project timelines once again, updated timelines. As I said on Petal Bora, we are now publishing a pre feasibility study in this quarter that will enable us to begin the balance of the permitting required. We have done a lot of the groundwork for our permits, in other words, foreign and flora studies, the emission license, noise studies, the emission license to...

30:14 All the all the measurements, all the work, the noise done for for the noise study, all the work done for the noise studies and so forth, you know, heritage evaluations and that on... For the site. And basically, we were just waiting for the pre feasibility study to understand the the waste streams from the Essex plant to continue our permitting process. The permitting process in South Africa is very well established. It's very, very well known mining jurisdiction. As we all know, very well established and the permitting process fortunately is also very well established in South Africa. Once you launch your application, basically, it's between nine and twelve months you have your permit. It's not how long is a piece of string. It's a very very defined permitting process in terms of of... It's it's in the statute books in South Africa.

31:09 So you... They've got nine months to come back to you, and then there will be... There might be some questions about the permitting. And within three months, the final final permits are issued. So we have a very, very clear line of sight on the permitting process in South Africa. As I said, we will be publishing the DFS next year, finalizing project finance, and we intend to start early construction at the last quarter of twenty seven with an initial production in the early part of twenty twenty nine. Once again, the pre fees has not led to a delay in our overall timeline. This timeline hasn't moved for over a year now and it still enables us to meet the initial production target which we revised some time ago as early twenty twenty nine. And with the project in Brazil, we're expecting the earliest production we are targeting would be 2030.

32:06 Just to take note that with Brazil, as I said, we started, you know, in circa 2023, we realized there's a resource there, RARE EARTHS resource in Egyptian be in production in 2030 will be circa seven years and it's a similar timeline for for Pelleboa. So I think it'll be eight years for Pelleboa. But, you know, the fact that these projects have got the... In that timeline is is is because of the nature of them. Most mining projects are from... Take fifteen years at least to get into production. So we still feel that these are very fast track projects both in South Africa and Brazil. And we'll be delivering these timelines in terms of...

32:53 To be able to get them to be considered as I said as fast track projects, I believe. There are further opportunities. This is not the end of blue sky for RAINBOW. We have two tier one opportunities already secured in South Africa and Brazil. We have been approached by guys with a development project in North America, which, you know, we'll see where that goes, but it's an opportunity. We've had an approach in Europe as well for another phosphate production facility that is going to be built in the next ten years or so, and then eventually producing phospho gypsum. They've already approached RAINBOW to start talking to us. And, you know, we are evaluating a different type of phosphoryl gypsum that's out of marine deposits in Morocco and Saudi Arabia.

33:44 So the rainbow has got the potential to still add to its portfolio of very, very exciting growth opportunities out of phospho gypsum and leveraging our IP that we've developed to extract growth out of phospho gypsum. Nobody else has done it before. It's always been there in lab scale work and papers published by various universities who say you can extract GRES from phosphoryl gypsum, but we've been the first guys to develop an economic flow sheet under stress to extract GRES from phosphoryl gypsum and that's what makes RAINBOW such a compelling story I believe. In terms of The US listing, we did announce to the market that we're evaluating US listing.

34:30 One of the reasons we've decided to change slightly and publish a prefeas was because the prefeasibility study, a, allows us to to to make sure the permitting stays on track and b, it also allows us to further evaluate the timeline for US listing. We don't want to come out of the timeline that we don't meet and based on the the pre feasibility study, we believe that will then enable us to to do a final evaluation and decide whether we go ahead with this opportunity. We we think it's a great opportunity because of the ratings we see in The US market for growth projects and critical mineral projects generally, and the fact that there's a source of capital in The US that we believe we can access at a at a much higher rating than we currently stand in The UK market, and we believe it'll be a big benefit to all our shareholders to see us listed in The US. But once again, that needs to have a final evaluation done and our pre fees will allow that to come to that evaluation slightly quicker than if we'd waited for the DFS.

35:40 Also notable in our last capital raise in March earlier this year that we... 95% of that capital that we raised was all US based. We saw significant investment from Traxxas, a global trader of commodities using partnership with the US government to to be part of the 12,000,000,000 critical mineral raw stockpile that the US government's gonna be building called Project Vault. Traxx is part of that. They came in with a significant investment into RAINBOW and the rest of the money was also from from from high net worth family offices in in The US as well as one or two funds in The US.

36:26 So we are starting to see interest from The US and we believe that's another reason that bodes well for potential listing in The US. As I've mentioned, you... We've observed valuation in trading liquidity in companies listed in US markets, which also bodes well for all of RAINBOW shareholders. Should we go ahead and do this? So in summary, we believe we are gonna be a very key supplier of roofs outside of China for for the waste. We've got high margin opportunities with... And we've got growth opportunities as well. The fact that we are gonna be a low OpEx producer of these roof oxides means that we'll be resilient and and and pricing that's variable in the road market.

37:18 We believe our IP addresses or opens a larger addressable market as you've already seen our IP from better board enable us to secure the project in Brazil. And we've already seen the potential to secure other projects because of this IP that we've developed. And we've got a couple of near term catalysts which are important. As I mentioned, we'll be in the binding agreement with Neo and the publication of the pre fees which are both near term catalysts in this quarter. Just to say thank you to the audience, our share price performance. I just wanna finish off with the... Over the last two years. And I think we're going in the right direction, and we'll continue to do so. Thank you very much.

38:09 That's great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab situated on the top right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed by our investor dashboard. As you can see, we have received number of questions throughout today's presentation. And, George, could I please ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end. Yeah. Okay. If I'll just move on to some of the questions that have been submitted. One is that given the company's interest in US market listing, can you describe how this might affect the existing listing in London? There'll be no effect on the listing in London. The shares are fully fungible, trade between the two markets.

38:59 But naturally, over time, we'd expect to see the register from The UK market move across to The US market. And we would expect over time the majority of the RAINBOW shares to trade in our US listing role than The UK listing. Is there any like... Is there likely to be a capital raise? Well, all development companies have to raise capital when they're in construction for their projects. We've already had $50,000,000 committed by the DFC into our construction finance for the project. We know we're gonna be securing debt for the project circuit two thirds of debt. So actual capital required, the equity portion for our project in Brazil... Sorry, in South Africa when we go into production is relatively small.

39:46 And as I said, we expect that'll be... We'll only be looking to raise money much later next year sometime. We believe if things go well, they'll be in the back of a US listing, so we'll have a better rating, which is is very beneficial to shareholders because we... That will mean this dilution for shareholders. But yes, all projects need to raise money and we will do a raise when we do a US listing if we go ahead with it. I've answered the question on permitting, I think, during my presentation. There's also a question on our relationship with with Neo. This is a misunderstanding in terms of of the... I think, and I just wanna answer in this question.

40:37 Says, for all intents and purposes, it appears now that RAINBOW will simply be an MREC producer and not a refinery separated routes. Well, I'm not too sure why there's this misconception. It's very, clear that RAINBOW are building our own sovereign extraction separation circuit. That's why we secured the technology agreement with Neo. It will use the RP in the back end circuit to design our circuit in South Africa. We'll be doing separated in the PR in South Africa and producing the ECG plus in South Africa, which will then ship the ECG plus to Neo and part of our NDPL will be shipped to near and the balance of our NDPL will be shipped to whoever we have all take agreements with. So you... No. RAINBOW is definitely not just an NEMRI producer.

41:23 We are securing 100% of our value for the for the NDPR. We'll be securing 100% of the value for 35% of our heavies and the balance at 65% will be under the terms of the offtake agreement that we'll be getting with with near. And and basically, was... NEAR has not effectively changed now for offtake preferential treatment. There's no preferential treatment. As I've mentioned, all projects need to have an offtake with somebody and we by agreeing to to off take with me on very favorable commercial terms, they they also have offered the RP to RAINBOW and that we thought was very compelling. As I said, we were in negotiations with other potential off takers, and these off takers were also advocating to surpass with ASIC's technology, but the terms from Neo were far superior.

42:18 And that's how we went to Neo as well as we felt that Neo had better technical capability. I think I've given feedback on the project with Mosaic in Brazil. As I said, we are in. We've kicked off the pre feasibility study. We shipped material to Palobuwa. It's it's on its way from Brazil and that will be will be run through our pilot plants. Dave, do you wanna add anything on on Mosaic in Brazil? No. Just just to say that the project leverages very much of the technology we developed for Palapua. The flow sheet will look very similar.

43:05 Most of the differences are purely beneficial that we don't have to reclaim because we're taking directly from the the residue as it comes out of the the phosphoric acid plant. We don't have to build a new stack because we already have one that's operating, so we deliver back to that. And many of the facilities like sulfuric acid production, etcetera, etcetera, are all available on-site. So a lot a lot of positives for that project in the differences, I would say. I've got a question on the time frame for a used listing. I think I've addressed that. I said the pre fees will enable us to do a final evaluation of the time frame for a used listing, and then we'll be able to make an announcement to the market giving a definitive timetable.

43:58 We wanna give a timetable that can be met. And if we do go ahead with The US listing, it will be during 2027. I don't wanna commit exactly when until we we have a full evaluation and we make that final final... Yeah. We we decide to go ahead and find me with the with the dues listing and make that that decision. Thank you. I've been asked briefly about why RAINBOW RARE's projects are such a extended study phase prior to FID mind build.

44:46 Well, I'm afraid to answer the question for this investors that this is a very fast track project. Just to to give you some background, if you look at most of the projects out there, they're already 15 to 20 odd years old, and they still haven't been built yet. We secured the power board project in January 21. We started working on this when we realized there's a real resource in the fossil gypsum, and we will... We intend to start production or construction end of twenty seven and production in '29. That's circa seven or eight years. The... There are fewer projects in Australia just to footprint this.

45:32 They finished the EFS in 2019. Only started construction... Early construction this year. So these projects, both Uberaba and Perabo are very, very fast track in terms of getting to market. You know, most projects spend many, many, many years of drilling before they even start an economic assessment, preliminary economic assessments. And from that to DFS, it's typically three to four years. So we are, I promise you, we are not taking a long time to get you where we are. In fact, we're extremely, extremely quick. That's all I think I've answered that question. George, maybe I can just add to that and say that it it would be worth noting that we have developed the process for from scratch.

46:28 It's also a process that's never been developed before. It's that most other projects start with either providing a a billing quotation, etcetera, etcetera, process to get to an MREC. Cracking is a is a known technology. We... We've had to deal with a whole lot of issues that are that are unknown, we put it that way. I I believe we've done that very quickly in the context of still delivering the feasibility studies, getting towards the project implementation in quick time. Thank you, Dave. So does RAINBOW expect US funding?

47:16 When we... Are... If we go ahead with The US IPO, we will raise money then. We have to raise money for construction anyway for the project. So based on the fact that we think we'll have a better rating by the time we we pull the trigger on The US IPO, which means there's dilution for shareholders. Yes. We will be raising money then as all projects need to raise money, you know, for... When you're development... Junior development mining company. I think I've answered the viewpoint on The US listing and progress. Similar to funding arrangement with the CORAs, RAINBOW considering further such royalty deals. At this stage, we are not considering any royalty deals. We are financed through to our FID at this stage, and we've also financed for the pre fees at at Uberaba in Brazil.

48:15 And we're very pleased that we've been able to finance the Uberaba pre fees work out of the money we raised for... In March this year. So we've been very efficient with the with the capital we raised in March, making it stretched through to FID as well as covering the the the pre feasibility contribution for for the project with Mosaic. So do you mean that the used listing is contingent on the licensing and they say, no. It's definitely not contingent on that. The used listing, it says, it's contingent on just finalizing a timetable which is driven by the publication of our pre feasibility study and that will set out the timetable for us.

49:24 What are the major technical risks remaining and how are you managing them? As I said, the major technical risk was probably finalizing our solvent extraction partner and we've it now. But I'll let Dave answer that. Dave, any major technical risk remaining, and how are we managing it? I think, you know, the first thing is to say that we... We've been very thorough and comprehensive in our process development through multiple stages of bench scale test work, pilot fail fail test work. And we've been running for nearly a year now, pilot part of the Palabora or for Palabora at at our facility in Johannesburg.

50:11 We we have an enormous amount of data that we've developed that we can rely upon now to to go into the feasibility study. The the remaining part of the process was, in fact, to get that last step of separation, salt extraction technology, and and indeed the associated reagent recovery effort stream treatment site within that part bedded down. And that was a key part of our considering who to work with in terms of going forward with the technology partner. And as as I said earlier, Neo are doing this at the moment in Europe and have been doing so for thirty five years in various operations.

50:58 So I think we've pretty well done the technical derisking of this project now. I I think we have some opt... Optimization opportunities in front of us still, but nothing that represents a technical risk that concerns me. There's a question on how many shares will be issued when the US government's $50,000,000 flows into the paddle board project, the project code for equity. How many shares will be issued? Well, we can't answer that because it's based on the formula based on the the DFS. What I can tell you is the formula is preferential for RAINBOW. It's based on forecast rate pricing between a... All forecast for rate pricing is going up and will be based on the on the on the calculation of the the the n...

51:51 NAV of the project. Not on... It's not based on our share price. It's the... So as you know, all these real companies or most junior mining companies traded at a discount to NAV. Well, negotiations with US government will be based on a formula around the... This this metric in the in the financial model. And as I said, the big driver of the the NAV is the forecast with pricing, which is in RAINBOW's favor. So we are confident that when we do come up with the final number of shares, that will be issued for this $50,000,000, it is the best it's the best evaluation that we can have achieved for our shareholders in RAINBOW. Any appetite for acquisitions? No. RAINBOW got more than enough on their plate focusing on two very, very key projects which are more than enough to make RAINBOW a multi billion dollar business in itself.

52:50 Remember the time to look at acquisitions because they will just distract our technical team and we are focused on recovering Rare's from fossil gypsum opportunities around the world and and that's our focus. What is the scale of factor for Mintech pilot to commercial plant? I can say that the Mintech pilot plant is a large scale mineral processing pilot plant. A typical mineral pilot plant that you would run is three to five kilograms an hour. We have 25 to 30 kilograms an hour feed in our pilot plant in South Africa. So this is already a significantly larger pilot plant than you would normally get when you are running a pond for a mineral processing. Dave, you have extensive experience in this. Would you just want to add to that?

53:44 Yes. I think one of the things that's important to understand is that the the process itself is inherently simple. We we have a two stage leach, which means agitated slurry tanks with additional acid. The... How to scale up from... Even just directly from bed scale to full scale operation is is well understood in in multiple commodities worldwide. Our team has a great depth of experience in doing that. We've had vendors perform test work and equipment sizing for major piece of equipment like the horizontal belt filters, which are probably one of the key elements of the process other than the leach itself.

54:31 And, you know, so it's fairly straightforward for us to to come through. I I think also it's worth pointing out we've been running a a technical due diligence in parallel with our test work and design work. And indeed, we've had two very comprehensive technical due diligence exercises conducted independently in the last six months. So I I think we feel very comfortable that we're in a good space there. Another question was, are we in in negotiations with other off takers for the balance of our product? As I mentioned, you know, we've only contracted 40% of our NDPR and we will... We are in negotiations to contract more than NDPR ahead of of our debt financing. So debt financiers would typically look for you to have about 80% of your material in the North Off take agreement to give them confidence that they're prepared to give these debt to financial project.

55:38 So we will certainly be at that level by the time we finalize debt negotiations with with the banks and, you know, those negotiations are carrying on. But with Neo being almost like a cornerstone, you know, we obviously see no no risk of not being able to off take more material effect. We have inquiries almost every other day for people you wanna deal with, with RAINBOW. I think that concludes the... What's anticipated debt mix. I think I've covered this. We're expecting about two thirds debt and only one third equity, and our project financial metrics are very good and that's why we know that we'll be able to to have circuit two thirds date in this project quite comfortably.

56:26 Thanks very much and I hope this has been informative to the viewers and the listeners on this call I thank you for taking the time to listen to the RAINBOW team. Have a good day. That's great. Thank you for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This may take a few moments to complete, and I'm sure be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good afternoon to you all.