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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 $639,000 the year before. Pretax loss widens to $4.0 million from $2.7 million. Finishes the year with $4.1 million in cash, compared to $573,000 a year before, and has $2.9 million as at September 30. Expects total cash outflow of $4.7 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 $9.2 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%
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