Pensana Share Discussion Threads

[cyberbub] 08/11/2022 15:57

What's the expectation for the proportion of the funding package to be equity, and the approximate issue price? I'm thinking somewhere in the 50s is realistic.

[youngbaz] 08/11/2022 12:41

Wiseacre -Thanks for posting that. Today's modest but positive market reaction may be a delayed reaction to their buy recommendation.However the key sentence is: "which we believe will lead to a re-rating in its valuation on successful financing."So ... as was always the case, the sparks should start to fly as/when finance is confirmed. In the meanwhile... enjoying the minor lift.

[upwego] 08/11/2022 11:59

funding news any day now :)

Bring it on!

[sirmark] 08/11/2022 11:37

Good volume today, should see a decent move up

[wiseacre] 07/11/2022 22:15

Liberum BUY note out today

Pensana Plc* - Initiation
Loosening China's grip on rare earths (39 pgs)
BUY
Target price 201p | Published price 60p | *Corporate Broking Client of Liberum

Pensana is uniquely positioned to benefit from the transformational demand for permanent magnets necessary for the ongoing global energy transition. The company aims to become an alternative source for European automotive and wind turbine original equipment manufacturers (OEMs), and ultimately disrupt the current Chinese monopoly on rare earth supply. Pensana benefits from significant policy-backed tailwinds in Europe, underpinned by potentially world-class feedstock from Africa, which we believe will lead to a re-rating in its valuation on successful financing. We initiate coverage with a BUY rating and 201p/share TP.

Key points

Saltend will be a globally recognised independent and sustainable supplier of key rare earth magnet metal oxides
Value drivers

Total magnet rare earth demand is forecast to grow by a CAGR of 8.3% to c.250kt by 2035
What market misses

Supply of c.12.5kt pa., of which 4.5 – 5.0kt will be NdPrO
Europe overtook China as the world’s largest EV market for the first time in 2022
Is there value?

Our SOTP valuation infers c.230% upside from the current share price
Based on a 12.2% WACC and 40% Chance of Commerciality
SOTP Waterfall Chart

[sirmark] 07/11/2022 15:08

Just topped 13k shares

I see this as a great time to top up at this price.

[bigpecs] 02/11/2022 11:55

Looking good hope we keep going nice and slowly up up and away GLA

[sirmark] 02/11/2022 09:48

Going well this morning, could finance be close :)

[sirmark] 01/11/2022 10:21

Now in the header Mike

So within the next two months... 41 trading sessions !!! not long folks and I personally expect that to coming a lot quicker than the final day of the year.

Last bit of patience required as the final piece of the puzzle is put into place.

[mikethebike4] 31/10/2022 13:57

A year of considerable progress: Corporate and Operational Highlights for FY22.

“It is with great pleasure that I am able to report to shareholders on a year of considerable progress for the company in its development of the world’s first independent and sustainable magnet metal rare earth processing hub at Saltend Chemicals Park in the UK.” – Paul Atherley, Chairman, Pensana.

The electrification of motive power is forecast to become the biggest energy transition in history. Two of the biggest components of this transition are the phasing out of internal combustion engines in favour of electric vehicles and the rapid growth of offshore wind, both of which are heavily dependent on powerful rare earth permanent magnets.

Currently, China supplies over 90% of these magnets and has made it clear that it is going to need all its production for its US$11 trillion 2060 carbon-neutral plan and that it feels under no obligation to supply the rest of the world.

An additional concern for European and US OEMs is that the current supply from China may not meet their environmental, social and governance (ESG) standards. Global Witness recently reported that over 16,000 Chinese miners have crossed the border into neighbouring Myanmar and are using highly toxic methods to extract rare earths, devastating ecosystems, endangering livelihoods and restricting access to safe drinking water.

Pensana is at the forefront of tackling these challenges. By establishing an independent and sustainable supply chain to the highest international standards, we will be able to provide our customers with the assurances they need in terms of supply chain resilience and transparency in terms of ESG.

An example of this was the recent announcement that Pensana has been selected by Polestar to join its collaboration to produce the world’s first climate-neutral car. The Polestar 0 Project is aiming to develop a climate-neutral supply chain for all its raw materials.

During the year, we received green bond accreditation from CICERO, Norway’s foremost institute for climate research, recognised as a leading provider of independent reviews of green bond and sustainability financing frameworks. CICERO rated the planned operations as light green with a governance score of good.

We recently launched our blueprint for sustainable rare earths, which outlines our aim to produce the lowest embedded carbon products in the rare earth industry, as well as a deep and meaningful carbon reduction with the company’s goal of achieving net zero across the value chain by no later than 2040. The blueprint is an important document as it clearly sets out our commitment to all stakeholders and importantly to our customers that we put the highest ESG standards at the heart of our operations. Sustainability is always going to be a work in progress, however, the blueprint provides a clear pathway to embedding ESG into every decision, at every stage, using independent experts to monitor our progress.

We are seeing increased levels of interest from automotive and offshore wind OEMs and are in advanced discussions with a number of parties seeking offtake arrangements. We are also in early discussions with new and existing major magnet manufacturers about becoming part of a realignment of international magnet metal supply chains and have recently signed a memorandum of understanding with a large non- Chinese magnet manufacturer for an offtake of 25% of Pensana’s rare earth oxide production post year-end.

At the time of writing, we are in the final stages of financing and, despite the current turbulence in the world’s financial markets, we are receiving strong interest and aiming to complete the main financing by the end of Q4 calendar year 2022.

We very much look forward to reporting to you on the progress of our company over the forthcoming 12 months.

[mwj1959] 31/10/2022 10:15

Probably the most important part of the Chairman's report in the just published Annual Report...

At the time of writing, we are in the final stages of financing and, despite the current turbulence in the world’s financial markets, we are receiving strong interest and aiming to complete the main financing by the end of Q4 calendar year 2022.

[sirmark] 26/10/2022 13:21

Agreed but that's why we're still sub £1 with funding RNS expect 2/3 even £4 sp

[mikethebike4] 26/10/2022 10:16

Best announced separately for more impact

The politicians will be pushing this project in a big way for obvious reasons

This project rings all the bells for England TECH !

[oapknob1] 26/10/2022 07:15

Yes but funding update ?

[sirmark] 26/10/2022 07:10

Nice update, everything on track !

[chinasyndrome] 23/10/2022 23:40

Political Risk seems to have Peaked and should now start to settle down again. Bond Markets re-opening on rising Sentiment should be good, so long as the Yanks don't have another anxiety attack

[oapknob1] 21/10/2022 15:53

News Monday or financing confirmation awaiting new PM news ?

[sirmark] 20/10/2022 17:01

ALK had a good day... hopefully our time tomorrow... two weeks since the video so we should be close with the bond...

[quepassa] 20/10/2022 13:50

mikethebike,

Your post 1773 of 1st September:-


"I think you will be surprised what a 'firm' female can and will achieve

- a la Thatcher

- I think Liz will surprise us

all is not necessarily lost !"



-Care to comment??

ALL IMO. DYOR.
QP

[sirmark] 19/10/2022 15:54

We get it plenty of hurdles MWJ as you KEEP saying with nearly every post... we all get it mate.

We all realistic here, and so is the SP, if there wasn't hurdles, we would have a market cap of over 1/2bln and be funded but were not hence the low share price and the great opportunity that serves. risk reward.

[oapknob1] 19/10/2022 15:49

L2 70.1 - 70.9True sell 69.8 ?

[mwj1959] 19/10/2022 10:06

I am a holder, having started buying around 80p and then all the way down to the 40s. I'm trying to be realistic about this stock as there are still plenty of hurdles to get over before it gets anywhere near generating cashflow. As such a degree of scepticism is warranted for now at least. Hopefully that will dissipate as the project evolves.

[sirmark] 19/10/2022 08:54

It's In hand, and we'll know soon enough !

[oapknob1] 19/10/2022 08:44

Still no funding RNS.