Rainbow Rare Earths (LSE:RBW) says a sharp rise in yttrium prices has meaningfully strengthened the value proposition of its Phalaborwa project, where yttrium is part of the SEG+ mixed rare-earth product. Based on current pricing, the company estimates the uplift could contribute roughly $30 million in annual EBITDA. The surge stems largely from Chinese export restrictions that have tightened global supply and disrupted downstream markets. With its relatively low capital requirements and strategically important output, Phalaborwa is increasingly positioned as a high-margin rare-earth supplier outside China.
Despite the project’s growing strategic appeal, Rainbow Rare Earths’ overall outlook is tempered by continued losses and the absence of revenue, which heighten financial risk. Even so, technical indicators point to solid upside momentum, suggesting investor optimism around the company’s key development assets. While the valuation remains difficult to gauge given negative earnings, progress on Phalaborwa and other future-facing projects provides a degree of forward-looking support.
More about Rainbow Rare Earths
Rainbow Rare Earths is working to build an independent, responsibly sourced supply chain for rare earth elements—materials essential to clean energy technologies. The company is advancing a novel approach that extracts rare earths from phosphogypsum, a by-product of phosphoric acid production, offering faster and lower-cost routes to output than conventional mining. Its primary developments include the Phalaborwa Project in South Africa and the Uberaba Project in Brazil, both targeting the production of rare earth oxides used in high-performance magnet applications across advanced industries.
Leave a Reply