Rainbow Rare Earths (LSE:RBW) has reported progress across its rare earth development projects in South Africa and Brazil for the financial year ended 30 June 2026, alongside an £11.1 million capital raise and an increase in its cash balance to $12.9 million.
The company’s preliminary results outlined developments at its Phalaborwa project in South Africa and Uberaba project in Brazil, both of which are focused on recovering rare earth elements from phosphogypsum, a by-product of fertiliser production.
At Phalaborwa, Rainbow reported that approximately 75% of the project’s processing flowsheet has been finalised. The company also advanced solvent extraction development work in collaboration with Neo Performance Materials and agreed a long-term offtake framework.
These activities form part of the technical and commercial preparations for the next stages of project development.
Rainbow is targeting completion of a pre-feasibility study at Phalaborwa in late 2026, followed by a definitive feasibility study in 2027. The studies are intended to assess the project’s technical requirements, operating parameters and economic viability.
In Brazil, the company’s Uberaba project, being developed in partnership with The Mosaic Company, progressed to the pre-feasibility stage following completion of an economic assessment.
Rainbow said the assessment supported further development work at Uberaba, where the company is evaluating the recovery of rare earth elements from phosphogypsum materials.
The group’s development strategy centres on extracting rare earth elements from existing industrial by-products rather than conventional mined ore. Rainbow is assessing the potential cost and environmental characteristics of this processing approach as part of its project studies.
During the financial year, Rainbow raised £11.1 million to support its development activities and reported a cash balance of $12.9 million. The company also expanded its team as work progressed across its project portfolio.
Separately, Rainbow began evaluating a potential listing in the United States. No definitive decision or timetable for a US listing was provided in the preliminary results.
The company also highlighted changes in the international rare earth market, including tighter Chinese export controls and differences between domestic Chinese prices and prices available outside China for certain heavy rare earth elements.
According to Rainbow, governments in Western markets have responded to supply chain considerations through measures including strategic stockpiling, price support mechanisms and direct investment in rare earth projects.
The company views these developments as relevant to its plans to establish alternative sources of rare earth materials for industrial, energy transition and defence applications.
Rainbow’s principal projects are intended to supply rare earth elements used in manufacturing and technology applications, with the company pursuing processing and offtake arrangements to support future commercial operations.
Looking ahead, Rainbow’s priorities include completing the remaining technical work at Phalaborwa, progressing the planned feasibility studies and continuing pre-feasibility activities at Uberaba.
The group will also continue evaluating financing and market opportunities, including the potential US listing, as it advances both projects towards future development decisions.
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