**Summary**
Rainbow Rare Earths Limited (LSERBW) has announced a significant agreement with Mosaic Company (NYSE: MOS) and a positive Economic Assessment (EA) for its Uberaba Project in Brazil. The Uberaba Project is expected to become a major, long-life, high-margin producer of both light and heavy rare earth elements (REEs), leveraging Rainbows proprietary technology to process phosphogypsum, a byproduct of phosphoric acid production.
**Key Highlights**
1. **Economic Assessment (EA) Results**
Post-tax NPV10**US$916 million** (using a 10% discount rate and March 2026 rare earth pricing by Argus Media).
Post-tax IRR**45%**.
Average EBITDA**US$217 million per annum** over a 30-year mine life.
Payback period**1.7 years**.
Capital expenditure**US$279 million**.
2. **Joint Project Development Agreement with Mosaic:**
Rainbow and Mosaic will conduct a Pre-Feasibility Study (PFS) for Uberaba.
Upon a positive PFS, they will proceed to a Definitive Feasibility Study (DFS).
A joint venture (JV) is planned, with Mosaic holding **51%** and Rainbow **49%**, subject to final negotiations.
3. **Project Details**
Located in Minas Gerais, Brazil, the project will process phosphogypsum from Mosaics existing operations.
Annual throughput**2.7 Mtpa**.
ProductsSeparated neodymium and praseodymium (NdPr) oxide and a samarium, europium, and gadolinium (SEG+) product, both at **+99.5% purity**.
4. **Strategic Significance**
Uberaba is positioned as a second major opportunity for Rainbow, similar to its flagship Phalaborwa Project in South Africa.
Brazil is emerging as a rare earth hub in the Americas, supported by strategic interest from the USA.
The project eliminates many costs and risks associated with traditional REE mining by utilizing secondary sources.
5. **Rare Earth Price Sensitivity**
A 10% increase in rare earth prices could boost NPV10 to **US$1,075 million**, while a 10% decrease could reduce it to **US$757 million**.
6. **Next Steps**
Target initial production by **2030**, subject to studies, regulatory approvals, financing, and project execution.
Negotiation of Heads of Terms for the JV agreement before the DFS phase.
**CEO Comment**
George Bennett, CEO of Rainbow Rare Earths, emphasized the projects potential to replicate the success of Phalaborwa, leveraging learnings from its development to accelerate Uberabas timeline. He also highlighted the strategic partnership with Mosaic and Brazils favorable jurisdiction for rare earth development.
**Forward-Looking Statements**
The announcement includes forward-looking statements regarding project development, economics, and timelines, which are subject to risks and uncertainties such as market conditions, regulatory approvals, and technological performance.
**Contact Information**
Rainbow Rare Earths provided contact details for further inquiries, including IR and PR representatives.
**About Rainbow Rare Earths**
Rainbow Rare Earths is focused on establishing an ethical and independent supply chain of REEs critical for the green energy transition, with projects in South Africa and Brazil that utilize innovative processing of phosphogypsum to produce high-purity REEs at lower costs and risks compared to traditional mining.