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LONDON (Alliance News) - Rainbow Rare Earths Ltd on Tuesday reported an increase in exports for its first quarter, but also warned it will not reach its output target as soon as hoped.
Rainbow, which owns the Gakara rare earth mine in Burundi, exported 350 tonnes of concentrate in the three months to September from Gakara, up from 275 tonnes in the fourth quarter of its previous year.
Concentrate sold, the firm said, was flat at 350 tonnes, while the grade of rare earth oxide per tonne of concentrate jumped to 59% from 55%.
Rare earth prices fell 3.6% over the period to USD2,147 per tonne, but Rainbow managed to reduce its transport costs due to efficiency work.
However, Rainbow did say its target of 400 tonnes of concentrate per month may not be attained as soon as it had hoped, partly due to uncertainty over concentrate yields at its soon-to-produce Murambi asset. It now expects to reach the target in 2019.
Chief Executive Martin Eales said: "A lot of positive progress has been made in the quarter, particularly with regard to an increase in exported tonnes and total ore mined from Gasagwe, the development of our next mining area at Murambi and the conclusion of the drilling programme at Kiyenzi which means we are still on track to deliver our maiden JORC resource before the end of 2018."
"The company's focus is on increasing production and sales to a level of 250 to 300 tonnes per month in the near term at which level the business will be earnings before interest, tax, depreciation, and amortisation positive."
Shares were 36% lower on Tuesday at a price of 6.18 pence each.