Rainbow Rare Earths Ltd's (LSE:RBW, OTC:RBWRF) Interim Study for Phalaborwa used much higher confidence level parameters compared to the original preliminary study or PEA, notes broker SP Angel.
In particular, the study incorporates results from the large-scale pilot testwork to recover REE from phosphogypsum into a high-grade intermediate product.
The NPV10 (post-tax) was US$611 million ($627m PEA) using basket price assumptions from the PEA, but even at currently depressed prices, the project should still generate underlying profits of US$63 million annually, added the broker.
Work related to the separation of REOs (rare earth oxides) from the intermediate product is ongoing alongside the potential for separating out other LREEs including SEG oxide product, which currently is not included in the economics.
Shares rose 2% to 12.25p.