AIM-listed Rainbow Rare Earths said it aimed to become cashflow breakeven in its 2019 financial year provided it was able to bring four mining areas into production at its Gakara project in Burundi.
This would result in 250 tonnes of rare earths concentrate per month by the second half of the financial year. Thereafter, it would focus on understanding and exploiting the production potential across the licence area, the company said. The company had initially worked on 400 tonnes per month by end-December.
Rainbow Rare Earths, the only African-based producer of rare earths outside of China, was commenting in its interim results announcement in which it recorded a $3.2m loss. Commercial production was declared from July.
The company said it was excited about the future for rare earths which are used in the manufacture of magnets and have an end use in electric vehicles. Whilst the six months under review were “challenging” in terms of production, the company said it had begun to address “teething issues”.
It was targeting near-term positive earnings before interest, tax, depreciation and amortisation and “… becoming a key strategic supplier to the market”.