Pensana Share Discussion Threads

[chinasyndrome] 09/8/2022 02:14

A valid observation QuePassa; but 25% is a long way off being any where near a controlling share !

However what a fully contributed 25% does indicate, is that our Host Nation is well and truly behind Pensana and has no intention of taking the operation over ~ after all why would they pay for it when they could just as easily take/demand it ?

[quepassa] 08/8/2022 16:25

With 24.4%, all Angola need will need are few buddies around the table and they would effectively command more than 25% of the shareholder voting rights of Pensana.

hmmmm......


all imo. dyor.
qp

[mwj1959] 05/8/2022 11:30

Angolan SWF (AUM c.$3bn) buys $10m worth of stock at 67p. Takes shareholding to 24.4%.

The funds will be directed towards the Longonjo project’s early works programme which is now underway, including:
Establishment of the construction camp, site offices and associated infrastructure ahead of main plant construction activity in 2023
Completion of the detailed design for the concentrator and Mixed Rare Earth Sulphate plants
Mine HT/LT Substation detailed design and hydro-power transmission line link establishment works
Rail-side off-loading facilities for construction materials and
Agricultural Livelihood restoration activities
The investment follows FSDEA’s previous investments in Pensana over the past two years and will increase FSDEA’s equity holding in the Company to 24.42%, subject to the necessary regulatory approvals.

[payshunt] 05/8/2022 09:27

The turning point ? Let's see a few more of these.

[someuwin] 05/8/2022 08:03

Good news.

[sirmark] 04/8/2022 21:48

https://oilprice.com/Metals/Commodities/UK-Looks-To-Ramp-Up-Rare-Earths-Production.html

[mikethebike4] 02/8/2022 11:00

I don't think there is any problem with funding (one way or another) given the current political situation - 'new' government anxious to hit the ground running !

Previous Conservative gains from Labour up North a particularly sensitive area in the next couple of years

[dmitribollokov] 02/8/2022 08:52

You don’t have a team like that in place without some visibility on funding. You also don’t have the secretary of state for business, energy and industrial strategy at your groundbreaking, unless he is purposely trying to commit career suicide. The government will backstop this if private investors won’t, but would say pretty nailed on they will.

[sirmark] 02/8/2022 08:11

So the land is ready the team is ready, does anyone have an idea of when we could expect the funding news ?

[mikethebike4] 26/7/2022 15:32

Well, I think the world is generally in favour of Saltend and the Critical Mineral Strategy !

SP seems nice and firm and quietly upwards - good signs

[mwj1959] 26/7/2022 11:12

To be honest drawing a direct line between Saltend and the problems with the uranium project (Berkeley Energia - BKY) in Spain is hardly a valid one, other than the PA connection. I'm happy to be a (very modest) shareholder in PRE (and PA's other vehicle ALK), but fully recognise all the execution / delivery risks involved (in both) and as such very much treat it as option money, albeit an option that, for now at least, appears to be moving in the right direction.

[odsjp] 26/7/2022 10:26

PRE, RBW and MKA mentioned.



UK's first ever critical minerals strategy: Transformational for miners and explorers?

UK has drawn up first-ever critical minerals strategy
Sets out how it intends to secure stable supply
Critical minerals key to green economy
China currently has a stranglehold elements such as rare earth metals
Mkango Resources Ltd -
Critical metals, including rare earths found in industrial magnets, are integral to wind turbine technologies that help keep the light
Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy, has just published a policy paper for the UK’s first ever critical minerals strategy.

Kwarteng's paper sets out the government’s plans to secure critical mineral supply chains, by boosting domestic capability and foreign supplies in a way that generates new jobs, creates wealth and attracts investment.

This is a major development for suppliers and potential suppliers of these metals as the government plans to accelerate the growth of domestic capabilities but also collaborate with international partners to ensure robust and diverse supply chains.

The report points out that the minerals we rely on to ensure the continuation of our everyday lives are often produced thousands of miles away and particularly the raw materials required for the transition from a fossil fuel-based economy to one powered by greener sustainable energy sources.

So, for example, we need lithium, cobalt and graphite to make batteries for cars; silicon and tin for our electronics; and rare earth elements for electric vehicles and wind turbines.

A significant uptick in demand

The UK government points out that, “the world in 2040 is expected to need four-times as many critical minerals for clean energy technologies as it does today”.

However, the complexity and opaqueness of current supply chains mean that the market for these minerals is volatile and can be distorted.

Given the supply chain issues experienced during the Russian invasion of Ukraine, the government is clearly uncomfortable with China being the dominant global supplier.

So, to help secure the UK’s access to what’s required, it has set up a Critical Minerals Intelligence Centre (CMIC), the first of its kind.

The centre will be run by the British Geological Survey in Nottingham and will provide up-to-date data on materials such as rare earth elements.

The government also plans to establish a dedicated Critical Minerals Unit to act as its single point of contact with the sector, including business, academia and civil society.

A delivery plan for the commitments in this strategy will be published later in the year.

We would expect the UK’s critical minerals strategy to have positive implications for both domestic and foreign-based explorers and miners of critical minerals.

Funding options

For domestic explorers and miners, the government plans to explore how state funding mechanisms can support companies developing domestic critical mineral capabilities that would also reduce the risk for investors.

At the same time, it wants to develop an inbound foreign direct investment (FDI) proposition for UK critical minerals projects, as well as reducing barriers to domestic exploration and extraction of critical minerals.

Explorers and miners with projects that are based abroad will get help from development banks to direct Overseas Development Assistance (ODA) and support companies working to build responsible, diversified supply chains overseas.

In addition, the government expects to continue to make UK export finance products available to the critical minerals sector, including where this can support the security of supply, as well as help export UK mining and mineral expertise, goods and services.

Rainbow Rare Earths’ low-cost approach

Rainbow Rare Earths is one UK-registered company with international projects that could benefit from the UK’s first critical minerals strategy.

It is currently advancing the Phalaborwa Rare Earth Minerals Project, located in South Africa. Phalaborwa is a historic gypsum operation, where the two waste piles (stacks) are rich in rare earth minerals.

The deposit currently has a JORC 2012 compliant mineral resource estimate of 38.3mln tonnes at a grade of 0.43% total rare earth oxides, of which 29.1% represents higher-value neodymium and praseodymium (NdPr) with economic dysprosium and terbium credits.

Phalaborwa has a number of advantages over traditional rare earth minerals projects, notably that it doesn't require hard rock mining, crushing and milling, which reduces both capex and opex costs for the project relative to a standard mining project.

The rare earth elements contained at Phalaborwa are also in a chemical form within the gypsum, which removes the requirement for energy and reagent-intensive cracking processes, also reducing the costs.

As a result, Rainbow Rare Earths is confident that Phalaborwa can be one of the lowest-cost global producers of separated rare earth oxides.

Rainbow Rare Earths has recently completed the development of a process flowsheet and now plans to move forward with a technical feasibility study, the next step for the project.

A rarity: Mkango Resources at DFS stage

Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) is even further along the value chain and in deed has a definitive feasibility study for its Songwe Hill rare earth project in Malawi.

It ascribes a US$559mln post-tax net present value (NPV) and a 31.5% post-tax internal rate of return to Songwe, one of the very few rare earth projects globally to have reached the DFS stage.

The study envisages a payback period of 2.5 years from full production (five years from the start of capital expenditure) and a post-tax life-of-operations nominal cash flow of US$2.1bn.

Pensana breaks ground

Finally, Kwasi Kwarteng took a personal interest in Pensana PLC (LSE:PRE)’s groundbreaking ceremony to mark the start of work to create the world’s first rare processing facility Saltend on Humberside.

After attending the gathering, he told the audience: “Pensana breaking ground today has been made possible in part through government support and shows how our plans to secure an internationally competitive electric vehicle supply chain in the UK continue to gain momentum.

“This incredible facility will be the only of its kind in Europe and will help secure the resilience of Britain's supplies into the future.

“That’s why we’ve also launched the UK’s first Critical Mineral Strategy, setting out plans to develop robust supplies of minerals that are key to our economic success and national security.

"The strategy will bolster our resilience to market shocks and geopolitical events while supplying key industries such as automotive and defence.”

[odsjp] 26/7/2022 10:19

Nothing we don't really know but a good article nonetheless...



Pensana breaks ground at Saltend
Save to read list Published by Jessica Casey, Assistant Editor
Global Mining Review, Tuesday, 26 July 2022 09:30

Pensana has announced that it has broken ground at Saltend, and secured ATF funding.

Highlights
Ground breaking at Saltend rare earth processing hub, with attendance from Secretary of State for Business, Energy and Industrial Strategy, Rt Hon Kwasi Kwarteng MP.
An important next step in the world’s first independent and sustainable rare earth supply chain.
Production to commence in 2023, with plans to produce 5% of global magnet metals o US$195 million plant to play key role in ‘levelling up’, creating long term, high value jobs.
Funding from the UK government’s Automotive Transformation Fund (ATF), demonstrating strong support for Pensana’s important role in the UK’s magnet metals supply chain.
Significant interest from electric vehicle and wind turbine original equipment manufacturers (OEMs), looking to secure magnet metal rare earths with low embedded carbon.
Kwarteng also launched the UK Government’s Critical Minerals Strategy at the ceremony.
Ground breaking
Pensana has broken ground at its Saltend rare earth processing hub, a key development in the company’s plans to create the world’s first independent and sustainable rare earth supply chain. Located in the Humber Freeport in Hull, Saltend is set to become the world's first rare earth processing facility powered by offshore wind, producing the key components for electric vehicle and offshore wind original equipment manufacturers with low-embedded carbon.

Pensana’s project was endorsed by the Rt Hon Kwasi Kwarteng MP, Secretary of State at the Department of Business, Energy and Industrial Strategy, who was present at the ground-breaking ceremony, demonstrating strong government support for Saltend and the company.

Following a 12 month construction period, the US$195 million state-of-the-art plant is targeting production in late 2023, before ramping up to full capacity in 2024. The company aims to produce 12 500 t of separated rare earths, including 4500 t of the critically important magnet metal rare earths, which represent over 5% of world supply. Saltend will employ over 450 people during the 12 month construction phase and will create 125 long-term, high value jobs, demonstrating ‘levelling up’ in action.

Automotive Transformation Fund support
Pensana is also pleased to announce that it has secured funding under the UK Government’s £1 billion ATF to support development of the Saltend rare earths processing hub. The ATF is a funding programme that has been developed to promote the creation of a high-value end-to-end electrified automotive supply chain in the UK. It is an important mechanism to reach targets set out in the UK Government’s 10-point plan for a green industrial revolution and its recent Transport Decarbonisation Plan.

Critical Minerals Strategy
During the ground breaking ceremony, the Rt Hon Kwasi Kwarteng MP also announced the UK Government’s Critical Minerals Strategy, which details the government’s approach to securing technology-critical minerals and metals and is an important step towards securing a resilient, long-term supply chain to deliver a green industrial revolution for the UK.

Pensana Chairman, Paul Atherley, commented: “It is a great privilege to have broken ground on the world’s first independent and sustainable rare earths separation plant. This is a huge milestone for both Pensana, the Humber region and the UK, as part of our ambition to establish a critical magnet metals supply chain to secure the green energy transition.

“Securing ATF funding is a key development, demonstrating the UK Government’s support for this important project in line with the newly launched Critical Minerals Strategy. Pensana is set to play a vital role in transforming the UK’s electric vehicle and offshore wind industries, by producing lowembedded carbon magnet metals and creating high value local jobs.”

Kwarteng added: “Pensana breaking ground today has been made possible in part through government support and shows how our plans to secure an internationally competitive electric vehicle supply chain in the UK continues to gain momentum. This incredible facility will be the only of its kind in Europe and will help secure the resilience of Britain's supplies into the future.

“That’s why we’ve also launched the UK’s first Critical Mineral Strategy, setting out plans to develop robust supplies of minerals that are key to our economic success and national security. The strategy will bolster our resilience to market shocks and geopolitical events, while supplying key industries such as automotive and defence.”

[quepassa] 26/7/2022 07:10

Heard that one before!

The Salamanca uranium mine wasn't going to be allowed to fail either because it would create tens of thousands of local jobs...and Europe needed its own supply of uranium....and, and, and.....

....and ten years later still no final approval from the government.


Just because some here-today-gone-tomorrow politician goes on a Northern tour and shakes a few hands on their media rounds means diddly-squat.

i hope it goes ahead but don't swallow all the hype.

ALL IMO. DYOR.
QP

[mikethebike4] 25/7/2022 23:01

This why it will not be allowed to fail as a project

[mwj1959] 25/7/2022 19:04

I'm not sure that this will determine the fate of the government! They're already doing a pretty good job of committing political suicide.

[mikethebike4] 25/7/2022 17:27

Too many reputations will be relying on it for it to be allowed to go wrong

If the project starts to mess-up this flavour of Government will be out of office for a decade min.

[mwj1959] 25/7/2022 16:47

We all know the story...it's now about execution...which is where these sort of capital intensive "start-ups" often come unstuck.

[quepassa] 25/7/2022 16:07

That's all the same old story of what they said about the uranium mine in Spain.

Ten years later......

[mikethebike4] 25/7/2022 15:50

The Government has too much at stake now (in more ways than one) to let something like this slip through their fingers

Absolutely ideal in loads of ways - security of raw material supply, security of power, 'levelling up', one in the eye for China, green credentials, security of finance - you name it !

Anybody with cash should be taking advantage in negative share price days

[sirmark] 25/7/2022 11:45

I like it, on wards and upwards.. a few stale bulls clearing out but that's normal as some would have expected the share price to have been starting with a pound sign after planning and funding news..so moving on but for me this is when you start accumulating.

[quepassa] 25/7/2022 11:34

Pretty damning article in Weekend FT.

Reminds me of Berkeley Energia. After the massive hype and excitement, reality sets in.

Then again, they do share some things in common.

Wonder whether they'll go for a secondary listing in Angola!



Good Luck All but don't hold your breath.


ALL IMO. DYOR.
QP

[mwj1959] 23/7/2022 13:52

Time will tell who is right. Clearly, I'm with it being a success given I'm a shareholder. However, this is still very much option type money as far as I am concerned, albeit moving closer towards being in the money. Not convinced that PA comparing his salary with lawyers and brokers in the City was necessarily helpful though! However, he has plenty to lose if this doesn't work, given his near 6% shareholding.

[chinasyndrome] 23/7/2022 03:03

Chinese chancer ? Thomas / Ausheads / Theorist take your pick, they all sing from the same "Rare Earth Observer" hymn book.

[mwj1959] 22/7/2022 19:42

Which of the two quoted is the Chinese chancer? I agree it is all going in the right direction, but as always funding newsflow, development progress etc. will remain key over the coming months.