Pensana Plc · LSE:PRE
Pensana — Investor Presentation (November 2022)
22 slides from Pensana's investor presentation, November 2022
Slide 1: Building an Independent and Sustainable Magnet Metal Supply Chain
Building an Independent and Sustainable Magnet Metal Supply Chain Investor Presentation November 2022 LSE: PRE
Slide 2: Introduction to Pensana
Introduction to Pensana Pensana is in the process of establishing a world-class, independent, and sustainable supply chain for rare earth metals vital for the electric vehicle and wind turbine industries Corporate Profile Pensana Plc’s historical share price (GBp) LSE standard listing (LSE: PRE) 250
Slide 3: The electrification of motive power is forecast to become the biggest energy transition in history
The electrification of motive power is forecast to become the biggest energy transition in history Two of its biggest components 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 ra
Slide 4: Independent Rare Earth Processing Hub
Independent Rare Earth Processing Hub In offtake discussions with major European wind turbine and automotive OEMs In offtake discussions with major US automotive OEMs Entered into a strategic relationship with a major magnet producer. Offtake for 25% of Feedstock from Longonjo, Saltend’s annual rare
Slide 5: Breaking ground on the world's first Rare Earth processing hub
Breaking ground on the world’s first Rare Earth processing hub Secretary of State for Business, Energy and Industrial Strategy Rt Hon Kwasi Kwarteng MP launched the UK’s Critical Minerals Strategy at the ceremony and commented: “It is a great privilege to have broken ground on the world’s first inde
Slide 6: Saltend Rare Earth Processing Hub
Saltend Rare Earth Processing Hub Producing the critical rare earths to drive the energy transition Ultra-modern facility Producing: ▪ 12,500 tpa of rare earth oxides ▪ including 4,500 tpa of NdPr oxides equivalent to ~5% of world demand. ▪ Creating 450 jobs during construction and 125 high- value f
Slide 7: Saltend's growing importance as an independent and sustainable supplier of European OEMs
Saltend’s growing importance as an independent and sustainable supplier of European OEMs Electric Drive Unit Production in Europe Most major OEMs produce or source EDUs in Europe By 2025 Europe will produce approximately 6.6million EDUs. Exporting around the world supporting the burgeoning demand fo
Slide 8: European automotive OEMs increasingly concerned about transparency and embedded carbon
European automotive OEMs increasingly concerned about transparency and embedded carbon ▪ VW’s ID.3 range of EVs will consume the equivalent of Saltend’s entire production for over a decade. ▪ Mercedes has committed to 50% of it’s production to be EVs by 2025 and has challenged its suppliers to have
Slide 9: Meeting Customer Demands
Meeting Customer Demands MINE TO MAGNET TRANSPARENCY C02 targets as a key criterion and 50% diversified supply chain. ULTRA-LOW EMBEDDED Pensana is committed to producing CARBON traceable rare earths which have the industry’s lowest embedded carbon MAGNET Net-Zero by 2030. Responsible and is aiming
Slide 10: Offshore Wind Production
Offshore Wind Production ▪ Europe is a major offshore wind supplier to the world. ▪ Wind OEMs are being pressured to reduce the installed cost to £37/MWh – on the back of increasing material costs. ▪ Strategic purchasing has identified rare earths as a significant focus to protect the business going
Slide 11: Automotive and Wind Turbine OEMs driving Magnet Demand
Automotive and Wind Turbine OEMs driving Magnet Demand MAGNET MANUFACTURE MOTOR MANUFACTURE TURBINE MANUFACTURE OEM FINAL ASSEMBLY Japan Europe PUMP MANUFACTURE Other PENSANA Plc / COMPANY PRESENTATION
Slide 12: Freeport status to establish Saltend as an international processing hub
Freeport status to establish Saltend as an international processing hub Pensana was part of the team behind the highly successful Treasury approved Humber Freeport bid led by Associated British Ports. The range of benefits is expected to include: • Business rates relief for five years of operation •
Slide 13: Private Wire connection to Offshore Wind to power low cost, ultra-low carbon metal production
Private Wire connection to DOGGER BANK Offshore Wind to power 2.45GW WIND FARM low cost, ultra-low carbon metal production TEESSIDE Hitachi installing 320kV HVDC cable, connecting Dogger Bank, the world’s largest offshore wind farm, to Harmony Energy’s 200MW battery storage HVDC 320kV facility. As O
Slide 14: Low Capex Hydro-Electric powered state-of-the-art modern mine
Low Capex Hydro-Electric LOW CAPEX (AND OPEX) powered state-of-the-art DUE TO EXCELLENT modern mine INFRASTRUCTURE Recently upgraded US$2bn Longonjo is one of the world’s largest undeveloped Benguela rail line provides direct rare earth deposits with an initial 20-year mine life. link to Atlantic po
Slide 15: Growing Supply Deficit
Growing Supply Deficit Adamas Intelligence Price Forecasts NDPR OXIDE TONNES US$ / TONNE NDPR OXIDE 2035 DEFICIT US$ / TONNE NDPR OXIDE (NdPr oxide tonnes) 15 TIMES SALTEND 300,000 ANNUAL PRODUCTION 50,000 200,000 0 100,000 (50,000) 0 SEP 2021 MAY 2021 2026 2022 2028 2032 MAR 2022 2024 2030 2034 JAN
Slide 16: A new demand shock – this time from industrial robots?
A new demand shock – this time from industrial robots? Robots are becoming increasingly popular with rising labour costs, policy support and a strong push for modernisation. High-performance NdFeB magnets are the key component of industrial robot servo motors. Forecast CAGR 20% by 2025. 2020 2021 20
Slide 17: Financial Summary
Financial Summary Adamas Intelligence NdPr Oxide Forecast Base Case ANNUAL PRODUCTION 11,600 – 12,900 tonnes of TREO, including 4,500 – 5,000 tonnes of NdPr oxide CAPEX SALTEND REFINERY US$ 195M LONGONJO MRES REFINERY US$ 127M LONGONJO CONCENTRATOR US$ 123M LONGONJO MINE AND INFRASTRUCTURE US$ 49M O
Slide 18: Lynas is currently the only major producer of separated rare earths outside China
Lynas Corporation (LYC.ASX) is currently the only major producer of separated rare earths outside China PENSANA Plc | COMPANY PRESENTATION
Slide 19: Peer comparison: Lynas, MP Materials and Pensana
LYC:ASX MP:NYSE PRE:LSE MARKET CAP US$ US$5.1bn US$5.8bn <US$200m 5,900 6,500 4,500-5,000 NdPr PRODUCTION tonnes tonnes tonnes tonnes per year by 2024 by 2025 IN PRODUCTION IN DEVELOPMENT IN DEVELOPMENT SINCE 2013 CAPEX US$ c. US$1.5 billion >US$2 billion US$500 million PENSANA Plc | COMPANY PRESENT
Slide 20: Strong Independent Board and Experienced Executive Management Team
Strong Independent Board and Experienced Executive Management Team RT HON BARONESS NORTHOVER ROBERT KAPLAN PAUL ATHERLEY NON-EXEC DIRECTOR FINANCE DIRECTOR CHAIRMAN Baroness Northover was the Prime Minister’s Mr Kaplan is a Chartered Accountant with Mr. Atherley is an experienced mining over 20 year
Slide 21: Highly Experienced Project Delivery Team
Highly Experienced Project Delivery Team MIKE HAMER MIGUEL DOS SANTOS HAMISH WESTWATER OPERATIONAL READINESS & LOGISTICS PROJECT DIRECTOR, SALTEND COMMERCIAL & COST MANAGEMENT, SALTEND MANAGER Hamish has over 30 years’ experience Miguel is a ECSA registered Chemical delivering complex projects in th
Slide 22: Market and Technical Advisers
Market and Technical Advisers MARKET INTELLIGENCE SALTEND TECHNICAL LONGONJO TECHNICAL Adamas Intelligence Wood Group - technical engineering and design Wood Group Market forecasts Technical engineering and design Paradigm Project Management - Longonjo site infrastructure and Roskill bulk services t