This report is an updated version of the report published on 03 November 2025, 08:30 AM, GMT

Rainbow Rare Earths Ltd

Rainbow Rare Earths Ltd (LSE: RBW) is an LSE listed and Guernsey-based mining company. The Company’s principal activity is the development of a rare earth minerals project in South Africa and the opportunity to utilize the associated processing technology at other global rare earth opportunities, including but not limited to opportunities in Brazil. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock. 

Key Investment Rationale – Speculative Buy at GBX 21.05

• Loss narrowing with supportive funding structure: The Group’s total loss decreased to US$3.3m in FY25 from US$4.3m in FY24, aided by a US$1.2m gain on the Ecora royalty liability and the absence of the US$0.7m Gakara impairment recorded last year. Controlled operating expenses and staff costs (US$3.2m and US$2.0m) indicate disciplined financial management while advancing development priorities.

• Balance sheet underpinned by Phalaborwa and cash uplift: Capitalised investment in Phalaborwa rose to US$17.4m (vs US$15.7m) with the project maintaining an interim study valuation of US$611m NPV10. Year-end cash improved to US$3.9m from US$79k, supported by US$10m financing from Ecora, while liabilities remained moderate with a US$7.3m royalty balance and minor borrowings.

• Capital-light, low-cost rare earths model: Phalaborwa’s chemical processing setup avoids mining or hauling activities, extracting REE from surface phosphogypsum already in a chemically processed form. This unique model minimises operational complexity and cost, placing the project at the lower end of the global cost curve and enhancing its potential for attractive long-term margins.

• Strategic backing and visible growth pipeline: Rainbow secured key institutional support, including US$50m DFC equity via TechMet and an Ecora royalty for Phalaborwa. The DFS is scheduled for 2026 with construction targeted for 2027, while the Uberaba project in Brazil and ongoing discussions in Saudi Arabia, Morocco, and Canada highlight its global expansion and potential to build a diversified REE portfolio.

RBW Daily Chart

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given on Rainbow Rare Earths Ltd (LSE: RBW) at the Current Market Price of GBX 21.05, as of 03 November 2025, 08:30 AM, GMT.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 03 November 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.