Pensana Share Discussion Threads

[diversification] 16/10/2020 15:49

CHIEF OPERATING OFFICER DAVE HAMMOND COMMENTED:
“Our main focus is on completing the current programme at Longonjo and reporting an upgraded Mineral Resource estimate for the DFS, which is expected to significantly extend the mine life.

Having received the Mining Licence for Longonjo our plan is to capture and test the high potential brownfield opportunities within trucking distance of the proposed treatment plant which have the potential to increase overall production.

The Coola and Monte Verde carbonatite complexes are of similar size to Longonjo and have been identified as being rich in NdPr mineralisation.

We are very much looking forward to getting on the ground with the first round of exploration on these exciting new targets.”

The key being, potential to increase overall production as the Coola and Monte Verde prospects are said to be as big as the Longonjo prospect.

Just think about that for the minute.

[diversification] 16/10/2020 15:28

I think from the most recent interview it is clear to see that the Chinese are happy to diversify their production facilities outside of China. For me it doesn’t matter if the production facility comes from foreign investment (Chinese or American) or the U.K. for both U.K. based and European NdPr demand. However this mineral has become strategic in nature.





Currently considered as the best kept secret to being able to fulfill a green revolution, the coverage of this material at some point will be on a scale not seen before. In turn we know their are very few well funded near term production plays that will be able to facilitate this demand.

Imo it is possible that they can serve the demand of multiple markets so as not to put all their eggs in one basket. We have seen the pentagon making various strategic investments, including to help fund a new process facility in the US with MP materials. What’s to say they won’t make an investment in Pensana given that they will become one of 3 independent miners outside of China that can facilitate its demand. We are seeing countries and large companies such as Tesla making these strategic investments, something is brewing.

Not only that, but the market is drastically underestimating it’s current upside potential in terms of the deeper NdPr rock below the weathered surface, and the Coola Exploration block, with each and everyone of the 10 prospects sharing the same infrastructure benefits of its main prospect. I think it has the potential to make Pensana one of Africa’s leading miners. Is it possible that the US provides the funds for them to pursue one of the 2/3 rare earth deposits on the Coola block, time will tell.

[cyberbub] 16/10/2020 12:42

Etf be very careful if your first investments do well, over-confidence is a killer in the stock markets... I can assure you that I discovered this the very hard way, and wouldn't want anyone else to do the same...

[chinasyndrome] 16/10/2020 10:04

For those waiting to see that INDABA teares her is a direct link:

hxxp://connect.itegroup.com/rs/344-AEZ-891/images/Pensana%20Rare%20Earth.pdf

[etf2] 16/10/2020 09:48

Thanks. I bought in at 57p and 80p so I’m as happy as a sand boy.(For now!) Learning loads from reading this thread, it’s great. I’m really excited about the up coming report.
Next investment I’m looking into is Uranium, yes I found Rick Rule :-)

[robbiekeane] 16/10/2020 08:57

Good luck with your first investment etf2 - I think you've picked a good one to start off with.

[cyberbub] 16/10/2020 08:25

Welcome etf2. There's every chance that you could 3-5x your money from here, as long as you're patient and willing to wait a couple of years. If you're new to investing you've probably got a lot to learn, like I learnt (the very hard way) all those years ago. Best of luck.

[etf2] 16/10/2020 05:06

I’m on board with my first ever foray into stocks and shares. I just like what they are trying to do.

[rvsy2] 15/10/2020 08:30

cyberbub

According to the list of expected news items in the last Pensana presentation, the
next announcement may be a progress report on the Coola exploration programme.

The Coola mineralisation is just 16 km from and therefore within an easy truckable distance from the site of the main project facilities.

As stated by the company we should also have news on the BFS before month end so not long to wait !

[cyberbub] 14/10/2020 23:42

Yes we should have news on the BFS shortly according to the company....

[chinasyndrome] 14/10/2020 22:53

Well said Millwall, in fact you can take your reasoning another step forward:

Everybody knows that there is more good news on the way, so the current price drop is certainly not a product of inside knowledge. Which leaves either a Tree Shake, quite possible as the Oz Brokers have been having a field day buying PM8 converting them to PRE and making a healthy 10% in short order. Or it could be that a few of the early Oz Investors have now reached their 10 bagger milestone and are now cashing in part of their holding to Free carry the balance. In which case the UK is just playing follow the leader !

We have been playing "Ratchet progression" for months now ie Up 20% down 10% up 20% etc, as the Day Traders follow their maxim 'buy the dip sell the news', no doubt they will be piling back on board by Friday to take advantage of the next (Monday's ?) Announcement

[millwallfan] 14/10/2020 17:10

As China says mc is simply a product of two figures, shares in issue and current share value. It therefore changes daily) IMHO it has very little relevance other than perhaps when it hits certain ‘milestones217; to bring it onto the radar of certain investment entities (especially iis) with other factors such as dividend, dividend cover etc.
I am more interested in why such a large drop today on no news. Is it a tree shake ?? Does someone know something we don’t? I am by no means an expert investor having lost quite considerable sums both historically (Marconi) and recent ( Brexit and Covid). Had I sold all my portfolio at the highs pre both of those I would be sitting pretty now lol. However, over the years I have learnt to focus more on research into company fundamentals and direction of travel as best investment info.

[cyberbub] 13/10/2020 10:14

Chinasyndrome yes I am well aware of how market cap is calculated. I never refer to share prices in comparative terms, only with ref to the market cap.

[millwallfan] 13/10/2020 09:29

CS. Let's hope you are even half right lol

[chinasyndrome] 12/10/2020 23:32

Cyberbub: Market Cap is derived from share price x No of Shares issued.

Pensana only has 200M shares while Lynas has 900M Divide 1.2B by 200M and you get around 6GBP/Share.

However you then have to take in several other factors into consideration:

Like Pensana, Lynas is building a new processing plant in Kalgoorlie so they time frames will be similar ~ their plant in Malaysia is due to be abandoned.

There is NO Industry left in Oz so Lynas will have to export their final product to Japan or the USA for sintering.

Mt Weld has a strip ratio of 4:1 Longonjo is only 0.1:1
Mt Weld has to truck its Pre-con to Kal 380km, Longonjo has an existing train line directly to a deep-water Port
Mt Weld runs on Diesel, Longonjo will be powered by Hydro.

IMO the Lynas comparison is if anything slightly undervalue for Pensana.

[aaronratchford] 12/10/2020 20:58

Obviously huge potential here, hence why I invested. Also appreciate it's difficult to compare the two even if they have a similar market cap, as it's possible Pensana will have lower costs and better margins (and further opportunity for growth). Just wondered if anyone knew much about Lynas for comparison (looks like once upon a the share price hit $25)

[cyberbub] 12/10/2020 20:32

Obviously Millwall, but they wouldn't take on the capex/debt for the factory if there wasn't expected to be a substantial benefit for shareholders in the medium/long term!

[millwallfan] 12/10/2020 19:18

Don’t forget the capital and financing costs that would be incurred !!!!!

[cyberbub] 12/10/2020 18:22

Don't forget that Pensana could derive very significant extra value/revenues if this latest factory proposal gets off the ground...

[aaronratchford] 12/10/2020 16:49

Atherley suggests that Pensana could eventually be close to Lynus in terms of scale. Lynus has a market cap of £1.3bn and a current share price of $2.70... Any views on the disparity between share price and market cap between the two?

[diversification] 12/10/2020 16:02

October

- Coola Exploration update
- BFS

November/December

- Coola Drilling campaign
- Financing for mine construction

January

- Break ground on mine site
- Update of UK process facility

March

- Mine construction begins in full swing after Chinese New Year.

Off-take agreements and exploration drilling results in-between. The next 6 months are going to be very very busy imo.

[cyberbub] 12/10/2020 15:51

Very positive interview indeed, and an astounding timescale for breaking ground on the mine...

[robbiekeane] 12/10/2020 15:40

Paul Atherley interview with China Mining Club about UK offshore.



Good to hear that the BFS is still on course for end-October.

[cyberbub] 12/10/2020 10:44

Paying 90p now...

[the chairman elect] 12/10/2020 10:10

Answer to POST 299 [Ditau in Botswana] is LSE:KAV now in a 50/50 J.V. with AIM listed POW looking for amongst various REEs