Rainbow Rare Earths Ltd ( LSE:RBW , OTC:RBWRF , FRA:RR1 ) describes 2026 as a 'defining period' which has seen a fundamental shift in Western attitudes towards critical minerals.
Chairman Adonis Pouroulis argues that securing rare earth supplies outside China has become a permanent priority for governments and industry.
In the company's annual results statement, chairman Adonis Pouroulis said China's tightening export controls had exposed the vulnerability of global supply chains, prompting Western governments to introduce price support mechanisms, strategic stockpiles and direct investment in alternative sources.
He pointed to a widening price divide between heavy rare earths sold inside China and material available to Western buyers as evidence of the changing market.
"Against this backdrop, the case for new, diversified, responsibly produced sources of REE outside China has never been stronger," Pouroulis said.
Rainbow believes its strategy of recovering rare earth elements from phosphogypsum, a waste product of fertiliser production, positions it to benefit from this shift without the costs associated with conventional hard-rock mining.
Reviewing progress during the financial year ended 30 June 2026, the company highlighted advances at its flagship Phalaborwa project in South Africa, where 75% of the processing flowsheet had reached a stage suitable for detailed engineering.
It also pointed to its selection of Neo Performance Materials as a technical and prospective offtake partner, subject to binding agreements, and progress at the Uberaba project in Brazil, where an economic assessment indicated a US$916 million post-tax net present value.
Rainbow finished the financial year with US$12.9 million in cash, compared with US$3.9 million a year earlier, following an £11.1 million equity placing in April. Its annual loss widened to US$7.5 million from US$3.2 million, largely reflecting a non-cash revaluation of its Ecora royalty liability.
The company currently targets publication of a Phalaborwa pre-feasibility study in the fourth quarter of 2026, followed by a definitive feasibility study in the first half of 2027.
It is expected to require additional funding in the third quarter of 2027, with the unsecured financing requirement identified as a material going-concern uncertainty.
