Member Info for JohnBoy4501

Interesting read, looks like Burundi is over. Still think there is significant potential in Phal and shift to other jurisdictions especially with the mitigation with the US processing plant.

Geopolitics at play…

https://www.africanews.com/amp/2023/05/31/russian-foreign-minister-sergei-lavrov-visits-burundi/

Supply chain splitting.

https://on.ft.com/3Ddardt

Article, see below.

The Ministry of Hydraulics, Energy and Mines presented its proposed revision of the mining code to the government of President Evariste Nadyishimiye last year. The cabinet nevertheless asked the ministry, headed by Ibrahim Uwizeye, to come up with an amended version and this should be finalised soon.

The reform of Burundi's mining legislation got under way a year ago (AI, 27/04/21) with the aim of remedying deficiencies in the existing code. Introduced in 2013, the existing code makes no distinction between artisanal, semi-mechanised and industrial permits in terms of award and administrative procedures and fiscal provisions, even though the day-to-day realities of the three types of mining are very different. The Burundian mining sector has until now been largely made up of local artisanal miners, but the country's rare earth and nickel resources have raised interest among foreign investors.
The president and many sector experts also consider that the provision of the existing code is preventing the state from obtaining higher revenues from mining activity in the country. In 2021, Evariste Nadyishimiye decided to suspend activity at several mines owned by foreign operators to allow for their operating conventions to be renegotiated (AI, 09/11/21). The revised code might be prevented from applying to existing conventions by stability and non-retroactivity clauses. At the start of this year, he went on to revoke a number of permits.

Interesting to hear the impact of the suspension from a local journalist.

https://www.dandc.eu/en/article/burundi-wants-bigger-share-income-nations-mining-operations

Good reading about how crucial the mine to metal western supply chain is and how that Rainbows solution is not widely known. With the K-tech deal and more gypsum stacks in the world I see valuation multiple exceed many competitors. Continued interest and investment is inevitable for the Pham project/model.

https://qz.com/2098539/eu-japan-dont-want-us-tariffs-on-ndfeb-rare-earth-magnets/amp/

Despite divesting from PREM no one can argue the potential upside and the reallocation of capital to the primary sector of developed economies as China controls supply and have their own demand/environmental aspects to consider. Leading to gaining momentum and opportunities. Time to reinvest in PREM I think not but should GR take the opportunity with Zulu shareholders will be rewarded.

Lithium/iron ore: getting it spot wrong
https://on.ft.com/3zfBiSA

Further improvement in relations.

https://twitter.com/iburundi/status/1461429778096037890?s=20

SE Evariste Ndyishimiye has confirmed "On behalf of the Government and the People of #Burundi and on my own behalf, I welcome the Executive Order of H.E JOSEPH R. BIDEN JR., President of the United States of America #USA on the Termination of Emergency With Respect To the Situation in Burundi".Are the Burundi tides turning? Is this a sign of a deal that has been done? The big backing by Techmet and then closer Burundi/USA relations does some more than a coincidence...https://twitter.com/GeneralNeva/status/1461432685851820032?s=20

Now that we are in November and George will be going to Burundi I wonder how the market will react to.
1. Burundi extending suspension
2. Burundi stating that are not looking to cooperate with Rainbow as a company
3. Burundi operation restarts

From a shareholder perspective 2, 3 give us clarity to move forward with SA and try to recover the value of the ore in situ. Option 1 is long term uncertainty.

Given the unique and well developed business model of gypsum stacks to metal (with K-tech partnership) I feel resolving Burundi through mutually agreed sale (obviously this will be complicated with the current agreement with Rainbow) and exploring other gypsum stack assets will provide investors into this space a great opportunity when comparing to other pre fully operational miners. The location risk of Burundi doesn’t seem to be decreasing in the short-medium term. I am not sure if the politics and geopolitics allow us to have an easy route to a fully operational mine anyway.

Good luck all, here’s hoping for some good news.

I have been in this stock since EPO. Terrible trade by myself and did not do the due diligence on the management as I should have. Lesson Learned. It has been very entertaining reading everyone's opinion and genuinely hope Zulu DFS get's completed in good time.
Good luck all.

Agreed ChemW, this puts the doubts over the BOD to bed.

More local news regarding the suspension of all mining companies in Burundi to allow for renegotiation of all agreements signed by the previous President, no real news in the article but linked below for those interested (you can translate automatically on Google Chrome).

https://www.rfi.fr/fr/afrique/20210722-le-pouvoir-burundais-suspend-les-activit%C3%A9s-mini%C3%A8res-pour-ren%C3%A9gocier-tous-les-contrats?ref=tw

This gets me thinking, what does a win-win agreement in Burundi look like? I would be interested to hear people's thoughts. The article suggests 10% isn't enough, which is reasonable, what is enough?

IMO I am happy to double or triple the Burundi Government's stake just to stop this problem and start building a solid relationship where these problems are less likely to arise again (especially in light of Dr. Phams appointment).

The article speaks to rational negotiation and the need for Burundi to resolve this matter to remain a plausible location for investment. No new news in this article but a good emphasis on compromise.

GL all.

Is anyone able to summarise this in English?

I came across a 2019 FT article on Rainbow, any ideas on the current state of affairs with TechMet? Thanks in advance - JB

Ful- https://m.youtube.com/watch?v=RDrfE9I8_hs

Another article explaining the background of the relationship between Burundi and China...

https://www.seafoodsource.com/news/supply-trade/chinas-interest-in-rare-earth-minerals-leads-to-tilapia-aid-for-burundi

Hilarious video, but don't make me question too much why we're still here...

Good spin or the election is a red herring for Rare Earths?
https://www.kitco.com/news/2021-04-09/Greenland-Minerals-asserts-its-rare-earth-focused-not-uranium.html

Although my concern is not a short term SP movement. Nice to hear China having some issues...

https://www.globaltimes.cn/page/202104/1220587.shtml