Rainbow Rare Earths Ltd (GB:RBW)
LSE:RBW
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Rainbow Rare Earths
(LSE:RBW)
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Rating:53Neutral
Price Target:
21.50 p
▲(2.38% Upside)
Action:ReiteratedDate:03/06/26
The score is held back primarily by weak financial performance (pre-revenue, ongoing losses, and persistent cash burn), despite improving loss trends and better 2025 free cash flow. Technicals provide the main support, with the price above key moving averages and positive MACD. Valuation remains unattractive/unclear due to negative earnings and no dividend yield data.
Positive Factors
Improving loss trajectory & free cash flow
Net losses have narrowed substantially and 2025 free cash flow improved materially versus 2024, indicating the business is reducing cash burn. That trajectory, if sustained, lowers funding frequency and risk, improving the chance of reaching production and longer-term viability.
Negative Factors
Pre-revenue status and ongoing operating losses
The company remains pre-revenue across multiple years and continues to incur operating losses, meaning it cannot self-fund growth. Dependence on external capital elevates execution and dilution risk and prolongs the path to margin sustainability until commercial production is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving loss trajectory & free cash flow
Net losses have narrowed substantially and 2025 free cash flow improved materially versus 2024, indicating the business is reducing cash burn. That trajectory, if sustained, lowers funding frequency and risk, improving the chance of reaching production and longer-term viability.
Read all positive factors
Rainbow Rare Earths (RBW) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£135.30M
Dividend YieldN/A
Average Volume (3M)2.26M
Price to Earnings (P/E)―
Beta (1Y)0.41
Revenue GrowthN/A
EPS Growth28.30%
CountryUK
Employees40
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)N/A
Shares Outstanding644,271,500
10 Day Avg. Volume4,770,980
30 Day Avg. Volume2,256,224
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)10.01
Price to Sales (P/S)0.00
P/FCF Ratio-35.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£39.50Price Target Upside88.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)N/A
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 s...
How the Company Makes Money
null...
Rainbow Rare Earths Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
28
Negative
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 639.00K |
| Gross Profit | -107.44K | 0.00 | 0.00 | 0.00 | 0.00 |
| EBITDA | -2.01M | -3.56M | -3.16M | -3.23M | -2.44M |
| Net Income | -2.42M | -4.17M | -11.98M | -3.98M | -2.69M |
Balance Sheet | |||||
| Total Assets | 16.35M | 16.27M | 14.09M | 17.13M | 13.05M |
| Cash, Cash Equivalents and Short-Term Investments | 2.87M | 79.00K | 8.11M | 4.13M | 573.00K |
| Total Debt | 501.33K | 529.00K | 530.00K | 866.00K | 1.98M |
| Total Liabilities | 6.73M | 2.43M | 1.83M | 1.84M | 3.05M |
| Stockholders Equity | 9.71M | 15.85M | 14.17M | 16.34M | 10.94M |
Cash Flow | |||||
| Free Cash Flow | -2.71M | -13.28M | -5.31M | -3.73M | -4.58M |
| Operating Cash Flow | -2.32M | -2.64M | -2.77M | -2.85M | -1.87M |
| Investing Cash Flow | -2.03M | -10.64M | -2.54M | -879.00K | -2.71M |
| Financing Cash Flow | 7.32M | 5.25M | 9.31M | 7.63M | 4.32M |
Rainbow Rare Earths Technical Analysis
Neutral
21.00
Price Trends
20.78
Positive
19.61
Positive
17.74
Positive
Market Momentum
0.02
Positive
44.19
Neutral
13.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RBW, the sentiment is Neutral. The current price of 21 is below the 20-day moving average (MA) of 23.55, above the 50-day MA of 20.78, and above the 200-day MA of 17.74, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 13.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:RBW.
Rainbow Rare Earths Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | £135.30M | -40.07 | -6.49% | ― | ― | 28.30% | |
52 Neutral | £32.27M | -9.13 | >-0.01% | ― | ― | -19.57% | |
46 Neutral | £110.60M | -19.26 | -17.14% | ― | ― | 54.72% | |
| ― | £15.53M | ― | ― | ― | ― | ― | |
48 Neutral | £305.57M | -19.87 | -28.19% | ― | ― | ― | |
42 Neutral | £73.05M | 13.30 | -76.15% | ― | ― | -0.59% |
* Basic Materials Sector Average
GB:RBW
Rainbow Rare Earths
21.00
11.50
121.05%
GB:ALL
Atlantic Lithium
14.25
6.02
73.15%
GB:POW
Power Metal Resources Plc
13.75
-0.25
-1.79%
GB:PRE
Pensana Rare Earths PLC
90.00
67.90
307.24%
GB:ZNWD
Zinnwald Lithium Plc
5.95
0.65
12.26%
GB:CRTM
Critical Metals Plc
9.50
-0.75
-7.32%
Rainbow Rare Earths Corporate Events
Business Operations and Strategy
Rainbow Rare Earths unveils new investor presentation ahead of Zurich mining conference
Positive
Mar 17, 2026
Rainbow Rare Earths, which seeks to build an ethical, non-mining-based supply chain for rare earths by extracting them from phosphogypsum waste at projects in South Africa and Brazil, is positioning itself as a supplier of critical materials to gr...
Business Operations and StrategyFinancial Disclosures
Rainbow Rare Earths seals Mosaic deal on high‑margin Brazilian rare earths project
Positive
Mar 11, 2026
Rainbow Rare Earths has unveiled a positive Economic Assessment for its Uberaba rare earths project in Brazil, showing potential for a 30‑year, high‑margin operation processing 2.7 million tonnes of phosphogypsum waste annually into hi...
Business Operations and Strategy
Rainbow Rare Earths Pilot Plant Delivers High-Grade Commercial REE Product
Positive
Feb 9, 2026
Rainbow Rare Earths has confirmed that its large-scale pilot plant in Johannesburg, designed for the Phalaborwa project, is operating as planned and has produced around 2 kg of high-grade mixed rare earth hydroxide. The material, grading about 55%...
Other
Rainbow Rare Earths CFO Restructures Shareholding in Minor Administrative Trade
Neutral
Jan 14, 2026
Rainbow Rare Earths has disclosed a routine share transaction by its chief financial officer Pete Gardner, who transferred existing holdings into tax-efficient SIPP and ISA accounts, resulting in a small net sale of 166 shares to cover associated ...
Business Operations and Strategy
Rainbow Rare Earths Starts Final Pilot Plant Phase at Phalaborwa as Rare Earth Prices Rebound
Positive
Jan 13, 2026
Rainbow Rare Earths has commissioned and started operations at a pilot plant in Johannesburg for the final phase of process test work on its Phalaborwa rare earths project in South Africa, which aims to become the first commercial operation to rec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.