(Alliance News) - Rainbow Rare Earths Ltd on Monday noted continued disruptions to supply chains as it reported a widened loss in its financial year.
The South Africa and east Africa-focused rare earth oxide producer said pretax loss in the financial year to June 30 widened to USD12.9 million from USD4.0 million the prior year. The company does not yet generate revenue.
Rainbow Rare said: "We continued to see turbulence in the global geopolitical landscape, which had ramifications for economies worldwide, particularly with the ongoing disruption to supply chains and the rising cost of various inputs and commodities. This compounded the issue of slower global economic activity and growth that was already an issue further to the impacts of the Covid-19 pandemic.
"We have found that this has played out with investors taking a 'risk-off' approach, especially with regards to smaller companies in the resources sector."
Looking ahead, the company said: "We remain confident that the long-term outlook for rare earth demand and pricing is positive as there is a mandated shift to the electrification of our transport system, as well as the exponential roll-out of offshore wind capacity worldwide in order to meet global decarbonisation and net zero targets."
Rainbow Rare shares fell 9.7% to 13.55 pence each on Monday morning in London.
By Tom Budszus, Alliance News reporter
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Rainbow Rare Earths (RBW)