Rainbow Rare Earths (RBW) AI Stock Analysis

• Market Cap: £119.51M
• Dividend Yield: N/A
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: N/A
• EPS Growth: 28.30%
• Country: UK
• Employees: 40
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 644,271,500
• 10 Day Avg. Volume: 4,770,980
• 30 Day Avg. Volume: 2,256,224
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £34.00
• Price Target Upside: 82.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 16.50p ▼(-11.29% Downside)

The score is held down primarily by a weak financial profile (pre-revenue, ongoing losses, and cash burn) and soft technical momentum (below key moving averages with a negative MACD). Positive corporate developments around de-risking and improving project economics provide some offset, but valuation remains difficult to justify on earnings given continued losses.

Positive Factors

Strategic Phalaborwa Project

The Phalaborwa project offers high margins and low operating costs, providing a competitive advantage and enhancing long-term profitability.

U.S. Government Funding

The funding from the U.S. government underscores strategic importance, supporting project development and reducing financial risk.

Ethical Supply Chain

An ethical supply chain positions the company favorably amidst geopolitical tensions and aligns with global decarbonization efforts.

Negative Factors

Zero Revenue Generation

The lack of revenue generation over multiple years indicates challenges in monetizing operations, impacting long-term financial sustainability.

Negative Cash Flow

Persistent negative cash flow highlights inefficiencies and financial strain, limiting the company's ability to invest in growth and operations.

Ongoing Losses

Continuous losses suggest difficulties in achieving profitability, posing risks to long-term viability and investor confidence.

Rainbow Rare Earths Business Overview & Revenue Model

Company Description

Rainbow Rare Earths Limited engages in the mining and exploration of rare earth minerals. It explores for neodymium and praseodymium deposits. The company primarily holds a 90% interest in the Gakara project covering an area of approximately 135 square kilometers located in Western Burundi. It also holds Phalaborwa project located in South Africa. The company was founded in 2011 and is based in Saint Peter Port, the United Kingdom.

How the Company Makes Money

Rainbow Rare Earths generates revenue through the extraction and sale of rare earth elements. The company's primary revenue stream comes from mining operations at its Gakara Rare Earth Project, where it extracts and processes rare earth minerals for sale to global markets. These minerals are in high demand for use in the manufacture of magnets, batteries, and other critical components in various technology and industrial sectors. The company may also engage in partnerships with other mining firms or technology companies to enhance its mining operations or expand its market reach. Additionally, Rainbow Rare Earths could benefit from favorable government policies and market dynamics that drive demand for rare earth elements, contributing to its earnings.

Rainbow Rare Earths Financial Statement Overview

Summary

Rainbow Rare Earths is facing significant financial challenges with zero revenue generation and ongoing losses impacting its income statement. The balance sheet shows a strong equity position with low leverage, which is positive, but the lack of revenue and negative cash flows pose substantial risks to financial sustainability.

Income Statement

Rainbow Rare Earths has consistently reported zero revenue for the past three fiscal years, indicating a lack of sales activity or successful monetization of operations. The net income has remained negative, reflecting ongoing losses. The EBIT and EBITDA margins are significantly negative, highlighting the challenges in covering operating expenses and generating positive earnings. Despite a reduction in EBIT loss from 2023 to 2024, the overall profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio is low, suggesting conservative leverage relative to its equity base, which is generally positive. However, the equity ratio indicates that a significant portion of the company's assets is financed by equity rather than liabilities, which can limit financial flexibility. The stockholders' equity has grown over the years, which could be seen as a positive sign of financial stability, but the continuous negative net income remains a risk factor.

Cash Flow

Operating cash flow has been consistently negative, indicating ongoing cash burn from core operations. The free cash flow is also negative, and the free cash flow growth rate has worsened significantly from 2023 to 2024, reflecting increased capital expenditures and challenges in generating positive cash flows. The operating cash flow to net income ratio is poor, emphasizing inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	639.00K
Gross Profit	-78.66K	-107.44K	0.00	0.00	0.00	0.00
EBITDA	-2.01M	-2.01M	-3.56M	-3.16M	-3.23M	-2.44M
Net Income	-833.40K	-2.42M	-4.17M	-11.98M	-3.98M	-2.69M
Balance Sheet
Total Assets	16.35M	16.35M	16.27M	14.09M	17.13M	13.05M
Cash, Cash Equivalents and Short-Term Investments	2.87M	2.87M	79.00K	8.11M	4.13M	573.00K
Total Debt	501.33K	501.33K	529.00K	530.00K	866.00K	1.98M
Total Liabilities	6.73M	6.73M	2.43M	1.83M	1.84M	3.05M
Stockholders Equity	9.71M	9.71M	15.85M	14.17M	16.34M	10.94M
Cash Flow
Free Cash Flow	-1.18M	-2.71M	-13.28M	-5.31M	-3.73M	-4.58M
Operating Cash Flow	-1.12M	-2.32M	-2.64M	-2.77M	-2.85M	-1.87M
Investing Cash Flow	-497.06K	-2.03M	-10.64M	-2.54M	-879.00K	-2.71M
Financing Cash Flow	-58.68K	7.32M	5.25M	9.31M	7.63M	4.32M

Rainbow Rare Earths Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RBW, the sentiment is Positive. The current price of 18.6 is above the 20-day moving average (MA) of 17.51, above the 50-day MA of 18.51, and above the 200-day MA of 15.13, indicating a bullish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RBW.

Rainbow Rare Earths Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
POW	58 Neutral	£16.76M	―	―	―	―	―
ZNWD	54 Neutral	£33.90M	-12.45	-7.78%	―	―	-19.57%
CRTM	49 Neutral	£14.50M	-0.40	-481.01%	―	―	-0.59%
ALL	48 Neutral	£77.68M	-22.60	-17.14%	―	―	54.72%
RBW	46 Neutral	£119.51M	-48.95	-21.81%	―	―	28.30%

Rainbow Rare Earths Corporate Events

Rainbow Rare Earths Adopts Solvent Extraction for Phalaborwa Project

Rainbow Rare Earths has announced the adoption of solvent extraction (SX) as the optimal method for rare earth element separation at its Phalaborwa project in South Africa. This decision, confirmed by ANSTO’s pre-feasibility report, de-risks the project by ensuring the production of high-purity rare earth oxides and allows for the finalization of the project flowsheet. The implementation of SX is expected to maintain the project’s low-capital intensity and keep it on track for construction in 2027 and production in 2028. Additionally, the company corrected its annual production figures for its SEG+ product, revealing a potential revenue of approximately $160 million per annum.

The most recent analyst rating on (GB:RBW) stock is a Buy with a £33.00 price target. To see the full list of analyst forecasts on Rainbow Rare Earths stock, see the GB:RBW Stock Forecast page.

Yttrium Price Surge Boosts Rainbow Rare Earths’ Phalaborwa Project

Rainbow Rare Earths announced a significant surge in yttrium prices, which has materially enhanced the economics of its Phalaborwa project. The inclusion of yttrium in the project’s SEG+ mixed rare earth product could add approximately $30 million to its annual EBITDA. This price surge is attributed to Chinese export controls causing supply chain disruptions. The Phalaborwa project, with its low-capital intensity and strategic importance, stands out as a key player in the rare earth market, potentially offering high margins outside of China.

The most recent analyst rating on (GB:RBW) stock is a Buy with a £33.00 price target. To see the full list of analyst forecasts on Rainbow Rare Earths stock, see the GB:RBW Stock Forecast page.

Rainbow Rare Earths Passes All Resolutions at AGM, Strengthening Strategic Focus

Rainbow Rare Earths announced that all resolutions proposed at their recent Annual General Meeting were successfully passed. This development supports the company’s strategic focus on advancing its projects, particularly the Phalaborwa Project, which is positioned as a high-margin rare earth project outside of China due to its lower operating costs and strong economic potential.

The most recent analyst rating on (GB:RBW) stock is a Buy with a £33.00 price target. To see the full list of analyst forecasts on Rainbow Rare Earths stock, see the GB:RBW Stock Forecast page.

Rainbow Rare Earths Enhances Phalaborwa Project with Yttrium Inclusion

Rainbow Rare Earths has updated its Mineral Resource Estimate for the Phalaborwa project to include yttrium, a heavy rare earth element affected by recent Chinese export controls. This update positions Phalaborwa as a strategic source of medium and heavy rare earth elements, which are critical for industries like defense and high-tech manufacturing. The inclusion of yttrium and other rare earth elements in the project is expected to enhance Rainbow’s market positioning and address supply chain disruptions caused by export restrictions.

The most recent analyst rating on (GB:RBW) stock is a Buy with a £33.00 price target. To see the full list of analyst forecasts on Rainbow Rare Earths stock, see the GB:RBW Stock Forecast page.

Rainbow Rare Earths Publishes Annual Report and Announces AGM

Rainbow Rare Earths has announced the publication of its Annual Report and the scheduling of its Annual General Meeting for November 11, 2025. The company continues to emphasize digital communications in line with its environmental commitments, as printed copies of the report will not be available. This announcement reflects Rainbow’s ongoing commitment to transparency and its strategic focus on sustainable practices, potentially strengthening its position in the rare earth elements industry.

The most recent analyst rating on (GB:RBW) stock is a Buy with a £33.00 price target. To see the full list of analyst forecasts on Rainbow Rare Earths stock, see the GB:RBW Stock Forecast page.

Rainbow Rare Earths Reports Strategic Advancements Amid Global Supply Challenges

Rainbow Rare Earths announced its preliminary results for the fiscal year ending June 2025, highlighting its strategic positioning in the rare earth elements market amid global supply chain challenges. The company is advancing its Phalaborwa project in South Africa, which is supported by significant investment and recognized as a key source of rare earths essential for green energy and technology sectors. With strong backing from the United States International Development Finance Corporation and Ecora Resources, Rainbow is progressing towards finalizing its Definitive Feasibility Study and aims to start construction in 2027. The company is also exploring opportunities to replicate its success in Brazil and other global markets, emphasizing its commitment to responsible production and environmental, social, and governance standards.

The most recent analyst rating on (GB:RBW) stock is a Buy with a £33.00 price target. To see the full list of analyst forecasts on Rainbow Rare Earths stock, see the GB:RBW Stock Forecast page.