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LONDON (Alliance News) - Rainbow Rare Earths Ltd on Wednesday reported a widened annual loss as the miner's administration expenses increased.
In the 12 months ended June, the rare earth miner posted a widened pretax loss of USD2.5 million from USD1.4 million the year before.
Rainbow Rare Earths generated USD992,000 of revenue in the year, up from none the year before, but increased its admin expenses by 75% to USD2.8 million from USD1.6 million.
The miner, who is focused on extracting high grade rare earth oxides at its Gakara project in Burundi, said the increase in costs reflects the "gearing up" of activities at all levels of the company.
In the period, Rainbow sold 475 tonnes of concentrate, at an average realised sales price of USD2,263 per tonne. Transportation, shipping & handling costs averaged at USD381 per tonne.
Rainbow's first shipment of concentrate took place in December with the ramp-up of production continuing until the end of the year. In July, the Gakara project was considered to have reached commercial production
Looking ahead, Rainbow said it expects to increase its production on a monthly basis and is targeting a concentrate production run rate of 400 tonnes per month by the end of 2018.
The company expects the prices for rare earths will be driven "significantly upwards".
Shares in Rainbow Rare Earths were down 0.9% Wednesday at 11.35 pence each.