DJ Rainbow Rare Earths Shares Dive After Production Target Pushed Back
Shares of Rainbow Rare Earths Ltd. (RBW.LN) fell in early trade after the company said it has pushed back the date of a key production target due to a challenging geological environment.
The London-listed miner of rare earths now believes that it will hit the targeted run rate of 400 metric tons of output a month next year instead of by the end of 2018, depending on the opening of further mining areas.
The company said it expects to generate positive earnings before interest, taxes, depreciation and amortization when concentrate production and sales reach 250 tons to 300 tons a month.
For the first quarter of fiscal 2019, Rainbow said the amount of concentrate sold from its Gakara mine in Burundi stayed flat from the previous quarter at 350 tons. Concentrate exported for the three months ended Sept. 30 increased 27% over the prior quarter, the miner said.
Shares at 0823 GMT were down 30% at 6.75 pence, recording their worst one-day percentage drop ever.
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(END) Dow Jones Newswires
October 30, 2018 04:36 ET (08:36 GMT)