Pensana Share Discussion Threads

[lewis winthorpe] 14/11/2022 10:06

He also said in a few weeks on that interview and that was many weeks ago.This RNS says to me that funding isn't as close as led to believe. If it was I would have held this RNS back until AGM time

[cyberbub] 14/11/2022 09:55

Yes. However it seems likely that finance (for Salted at least) will be agreed shortly...In that interview Atherley said that there was $75M needed for Saltend on top of the anticipated bond issue, $50M from a "strategic" and $25M from existing investors. I understood this to mean $75M of equity, but he wasn't being very clear and kept saying no dilution. What is everyone else's understanding? He said the same for Longonjo, a "strategic" investor but no dilution at TopCo level. Surely it makes no difference whether it's TopCo or project level? Pensana TopCo might maintain 250M shares, but if the project level company has given away 25% to a "strategic" then it's still dilution?

[mwj1959] 14/11/2022 09:49

Agreed Lewis...

[lewis winthorpe] 14/11/2022 08:53

Pointless as finance is only thing that matters at moment. Might as well be on Mars without ability to get it out of the ground.

[cyberbub] 14/11/2022 08:50

Mr Market seems underwhelmed, personally I don't know if those grades are good or not?

[oapknob1] 14/11/2022 07:37

The results from Sulima West are considered to be a significant discovery and will be the main focus of exploration activities in 2023.

Sulima West nepheline syenite and carbonatite complex

-- Significant rare earth elements (TREO), phosphate (P) and manganese (Mn) mineralization have been identified at Sulima West.

-- One of the five historic trenches at Sulima West, excavated in the 1970's by the colonial era Compania Minerais do Lobito prospecting for radiometric anomalies, was cleaned and sampled at 2-meter intervals across the iron/manganese ("Fe/Mn") enriched lateritised regolith. Analysis returned values of between 0.3 and 9.7% TREO, with an average grade of 3.4% TREO over 68 meters at surface.

-- A historic pit at Sulima West and adjacent to Trench 1, was cleaned and sampled at 1-meter intervals. Analytical results (ICP-MS)returned values of between 3.4% and 5.2% TREO, with an average grade of 4.3% TREO over 6 meters.

-- Five additional Fe/Mn laterite samples from the other trenches reported individual values which vary from 4.5% to 7.6% TREO.

-- Reported manganese grades in the laterite range from 1.5% to 18% MnO and average 12% MnO at surface. The manganese component is regarded to be economically significant.

[sirmark] 14/11/2022 07:23

Great news "Pensana is very pleased to report on the results from the recently completed exploration programme on the Coola Exploration Licence located 40 kilometres north of Longonjo."

[mikethebike4] 10/11/2022 15:53

Pensana Chairman Paul Atherley also commented:

“Following the launch of the Government's Critical Mineral Strategy at Pensana’s Saltend ground breaking ceremony in July, we believe that Pensana is uniquely positioned to support the Critical Minerals Strategy and to benefit from the transformational demand for permanent magnets necessary for the ongoing global energy transition. Pensana 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”.

Right on !

[mwj1959] 10/11/2022 11:26

Parliamentary Questions: What steps are the Government taking to improve resilience and diversify rare earth mineral supply chains away from China? (Andrew Rosindell, MP).

Minister of State at the Department for Business, Energy and Industrial Strategy, Ms Nusrat Ghani, responded to questions on what steps the government are taking to diversify rare earth mineral supply chains away from China.

“The Government published the Critical Minerals Strategy in July, which sets out plans to improve the resilience of critical minerals supply chains by boosting domestic capability, enhancing global markets, and playing a leading role in solving global challenges with our international partners.

The Government is committed to building domestic critical mineral supply chains, for example, by supporting UK-based rare earths developer Pensana’s new rare earth magnet materials refinery in Yorkshire. Earlier this year, the UK signed up to the Minerals Security Partnership alongside ten other like-minded partners to support the development of diverse supply chains”.

Pensana Chairman Paul Atherley also commented:

“Following the launch of the Government's Critical Mineral Strategy at Pensana’s Saltend ground breaking ceremony in July, we believe that Pensana is uniquely positioned to support the Critical Minerals Strategy and to benefit from the transformational demand for permanent magnets necessary for the ongoing global energy transition. Pensana 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”.

[oapknob1] 09/11/2022 16:20

Interesting that Haugesund Sparebank was also awarded Cicero Light Green status with governance score of Good on 18th October. Are PRE looking to Norway for some of the financing ?

[mikethebike4] 09/11/2022 14:10

SP seems pretty solid to me

[sirmark] 09/11/2022 08:33

It's also in the header for future reference.

[cyberbub] 09/11/2022 08:05

Thanks Mike that's useful

[mikethebike4] 08/11/2022 17:24

Cyberbub

https://www.youtube.com/watch?v=_7uAzRTvGRE

Watch the first 10 minutes for partial answers

[oapknob1] 08/11/2022 17:19

UK headquartered Pensana intends to create a sustainable magnet metal supply chain, with a rare-earth processing facility at Saltend Chemicals Park in Hull, UK, and mining in Angola. The Saltend facility is set to produce some 12,500 tonnes of rare earth oxides yearly, of which 4,500 will be neodymium and praseodymium oxides ("NdPr"), or an estimated 5% of global production in 2025. Operations are planned to start in 2024.The framework will exclusively finance project related capex and construction costs of the Saltend refinery, where the main product is a key element in permanent magnets needed in electric motors end generators. The issuer intends to sell NdPr to manufacturers supplying automotive industries in the EV segment and wind turbine producers, thereby enabling the transition to cleaner technology; excluding activities that have no role in a low carbon and climate resilient future. Some climate considerations, such as installing solar panels, have been taken in the design of the refinery and efforts are made to reduce emissions associated with chemicals and energy use. However, due to lack of data, it is not yet possible to conclude on the NdPr's carbon footprint compared to other producers, although it appears likely to be lower than the NdPr currently dominating the market.

[oapknob1] 08/11/2022 17:08

Cicero, a leading reviewer of Green Bonds has concluded that Pensana's plans are in line with Green Bond principles, with a Light Green rating and governance score of Good.

[cyberbub] 08/11/2022 16:39

I've seen reference to a bond or bonds being issued as part of the funding package, can anyone explain? Thanks for any info.

[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