Pensana Share Discussion Threads

[mhssh] 24/11/2022 21:28

That all sounds very reasonable, let's see what comes out at the AGM next week.

[cyberbub] 24/11/2022 20:51

There's no "emergency" involved Mssh. If the main funding package is delayed they will "plan" to raise a few mill more to continue prep work. That's why companies list on the stock market - to raise money. Sometimes delays do or don't happen, you can take a glass-half-empty approach if you choose.BritishVolt is chalk and cheese, it needed to raise several billion for a massive factory and super specialised equipment, and was run unprofessionally by billionaire playboys. They hung their plans on £100M govt seed funding promised by Clown Johnson which he never provided (or possibly some of the more competent civil servants realised the company was a bad bet).Pensana only needs $250M for Saltend, not peanuts but it's far lower risk than BritishVolt and has a huge IRR. Plus as stated by Atherley they don't actually need any Govt money as the investment proposition is so strong.So there are only two scenarios here: Atherley is a conman who's happy to risk jail by making public statements which are substantially false, the company has made no progress, investors including the Angolan Sov Fund have been conned, and it's likely to go bust and be flogged off for a quid in the near future. Or - this is an excellent investment proposition in a hot area, and while financial close may or may not take place this side of Xmas, ultimately it will be soon.Place your bets :-)NAI

[cyberbub] 24/11/2022 20:50

Can you explain why you think, Mssh?

[mhssh] 24/11/2022 16:48

I have just looked up ALK, the shares have gone from 95p to 230p in just over a month. One has to wonder why.

[mhssh] 24/11/2022 16:10

If British Volt is anything to go by, getting emergency top-up funding is not easy. What I have read seems to indicate the BV will be put up for sale. Adios.

[mwj1959] 24/11/2022 15:19

Annual report (latest official financials) link here...
hxxps://pensana.co.uk/wp-content/uploads/2022/10/Pensana-Plc-2022-Annual-Report.pdf

[varies] 24/11/2022 14:26

mhssh and cyberbub
Thanks so much. I have still not succeeded in finding Pensana's latest balance sheet

[cyberbub] 24/11/2022 13:57

The company got $10m in funding from the Angolan Sov fund not long ago, but it will be spending plenty on its FEED works, extra drilling, permitting etc. So yes they will need money soon, whether the major funding package or some top-up funding if that is delayed.

[mhssh] 24/11/2022 13:40

I attended a meeting in September and someone at the meeting said to PA so funds run out in March. And, to my understanding, PA agreed that was correct. So if the financing is not done and dusted this side of Christmas, that deadline becomes uncomfortably close (it's already pretty close).

[varies] 24/11/2022 12:34

I have been lucky with my REE investments, principally Lynas and Arafura, both Australian, and am tempted to buy a few shares in Pensana.
What is the cash position ? I have tried in vain to download the annual report recently published.
There must presumably be a big share issue soon and it might be prudent to wait for this before investing.

[mwj1959] 24/11/2022 09:14

mhssh - PA has substantial interests in both companies. According to the PRE Annual Report he held 13.427m shares at the end of June, which is 5.4% of the share capital. if you go to the latest shareholder analysis in the website (hxxps://pensana.co.uk/shareholder-information/) its difficult to see where those are held. They're certainly not in his name. The Liberum initiation report shows his holding as the same as in the Annual Report. According to the Alkemy website he owns 3.078m shares of ALK, so just under 43% of the share capital (he did own 50%, but that was diluted in the recent share issue). ALK owns 100% of Tees Valley Lithium, which is its sole investment. PA is Non-Executive Chairman of both ALK and TVL and Chairman of PRE, but to all intent, in my opinion at least, he runs both companies. He's certainly the public face of both.
So he has substantial skin in the game and clearly would be a major beneficiary if either or both projects are (hopefully) delivered. Whether there is a conflict of interest, whether now or potentially in the future, is a much harder one to answer. He would say that while he has an executive role at PRE its non-executive at ALK / TVL, so there isn't one.

[mhssh] 24/11/2022 07:45

Sadly I am no expert, just a humble retail investor. I am always suspicious of tomorrow and tomorrow rather like a mirage. PA never, to my knowledge, injects a word of caution himself, its always everything on track and fine. I always wonder at the M&G investment, I guess those guys would not commit without pretty great assurance, there again I don't suppose PA could tell them anything which was not in the public forum, otherwise they would be privy to inside information. Not sure. I hope we are not being strung along with a ring in our nose.

[oapknob1] 24/11/2022 06:17

Didn't they ask for that at last years AGM and now plan to renew that resolution every year ?

[cyberbub] 23/11/2022 17:45

The ticker is ALK, just type it in!!Mssh, what do you see as key risks to this project getting funding?

[mhssh] 23/11/2022 17:36

mwj, I did not realise ALK was quoted (where do I find it). When I first came across it I said to PA in an e-mail was there not a conflict of interest, but was assured not. I was surprised Pensana did not insist on him choosing which horse he wanted to ride. This is no done deal by ten country miles, or more.

[cyberbub] 23/11/2022 17:10

Interestingly they are asking for substantial share issuance approvals at the AGM. I suppose that must be related to the equity component of the funding package, so in reality although the bond and equity components are probably 95% finalised right now, we probably won't see an announcement confirming the full funding package until after 1st Dec? On the positive side that's only a week away!

[cyberbub] 23/11/2022 17:01

Anyone on this board going to the AGM?

[mwj1959] 23/11/2022 16:54

I tend to agree, but have always been accused of being too pessimistic. It's interesting to see the weakness in PRE compared to PA's other company, ALK, where share price has doubled in just over a month. Both their fortunes are dependent on PA's ability to raise substantial finance. I'm crossing a lot of fingers! This is no done deal, unlike what some of the more bullish posters seem to think. A lot of questions to be answered at the AGM.

[mhssh] 23/11/2022 16:05

Well I think our (shareholders) patience has been sorely tested, not just recently but over the last eighteen months. It's been jam tomorrow for a long time, and while PA tries to put a positive spin on all his deliberations on the financing, it is wearing pretty thin. I attended a meeting in September and questioned why they were running up huge salary bills before the financing was in place, and got a rather garbled reply that it was necessary to have these people in place to get the financing (chicken and egg hmmmmm). Also sitting there was the newly appointed non-executive director who I included in that question. It came out at that meeting that the company would run out of cash in March. I am sure all Pensana shareholders have been following the British Volt saga, and one of the questions raised regarding their (BV) crisis was the number of employees bearing in mind that no finance was in place. The retort to that seemed to be that people had accepted cut/cancelled salaries. I did ask Pensana had they agreed cut/cancelled salaries, but got no reply. So it all seems like a bit of a wing and a prayer, but hopefully a lot of shareholders will attend the AGM on 1st December (unfortunately I am overseas otherwise for sure I would be there)and hold the feet of PA to the fire.

[cyberbub] 23/11/2022 16:01

Mhshh, I think you have a fair point about director salaries, and there's no harm in pressuring them on the issue!In terms of overall salary bill, remember that there is substantial preliminary engineering work ongoing in both Angola and Saltend, additional drilling in Angola, etc

[mhssh] 23/11/2022 15:56

Well I think our (shareholders) patience has been sorely tested, not just recently but over the last eighteen months. It's been jam tomorrow for a long time, and while PA tries to put a positive spin on all his deliberations on the financing, it is wearing pretty thin. I attended a meeting in September and questioned why they were running up huge salary bills before the financing was in place, and got a rather garbled reply that it was necessary to have these people in place to get the financing (chicken and egg hmmmmm). Also sitting there was the newly appointed non-executive director who I included in that question. It came out at that meeting that the company would run out of cash in March. I am sure all Pensana shareholders have been following the British Volt saga, and one of the questions raised regarding their (BV) crisis was the number of employees bearing in mind that no finance was in place. The retort to that seemed to be that people had accepted cut/cancelled salaries. I did ask Pensana had they agreed cut/cancelled salaries, but got no reply. So it all seems like a bit of a wing and a prayer, but hopefully a lot of shareholders will attend the AGM on 1st December (unfortunately I am overseas otherwise for sure I would be there)and hold the feet of PA to the fire.

[mwj1959] 23/11/2022 15:31

I suspect Liberum's positive initiation (they're brokers so their positivity was hardly a surprise!) was produced to try and oil some of those moving parts (non-bond / loan part).

[sirmark] 23/11/2022 14:12

Just a little patience, investing is more often about being patient the news is coming, and it will be soon in relative terms.... could be tomorrow next month or very early 2023 but it's transformational news and WILL mark a line in the sand and be a game changer. I for one have a nice holding and I'm happy to wait and will add on funding news also, but I expect there's a lot of moving parts in this so it's not as straight forward as some other funding projects with other companies.

Anyway, GL All

[cyberbub] 22/11/2022 21:11

Well unless PA was blatantly lying to camera when he said "the funding decision has already been taken and it's just the paperwork left", then it's just a matter of time. Who knows though, none of us have a crystal ball...

[mwj1959] 22/11/2022 16:18

Smooth presentation by PA only gets you so far!