Pensana Plc · LSE:PRE
Pensana — Shareholder Meeting (December 2022)
29 slides from Pensana's shareholder meeting presentation, Dec 1, 2022
Slide 1: Building an Independent and Sustainable Magnet Metal Supply Chain
Building an Independent and Sustainable Magnet Metal Supply Chain AGM Presentation December 2022 LSE: PRE
Slide 2: Introduction
Introduction Pensana is establishing in the UK a world-class, independent, and sustainable supply chain for rare earth magnet metals vital for the electric vehicle and wind turbine industries. Corporate Profile Pensana Plc’s historical share price (GBp) LSE standard listing (LSE: PRE) 250 248 millio
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: Broken ground on the world's first Rare Earth processing hub
Broken 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 indepe
Slide 5: Saltend Rare Earth Processing Hub
Saltend Rare Earth Processing Hub 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 full-time jobs. ▪ Providing a secure supply chain for European auto
Slide 6: Project Delivery Teams for Saltend and Longonjo onsite and early construction programmes commenced
Project Delivery Teams for Saltend and Longonjo onsite and early construction programmes commenced Saltend Longonjo 6 Source: Company images
Slide 7: Freeport status establishes Saltend as an international processing hub
Freeport status establishes 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 8: 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 9: 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 10: 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 11: Meeting Customer Demands
Meeting Customer Demands Competitive pricing, transparency and low embedded carbon MINE TO MAGNET C02 targets as a key criterion TRANSPARENCY and 50% diversified supply chain. ULTRA-LOW Pensana is committed to producing EMBEDDED traceable rare earths which have the CARBON industry’s lowest embedded
Slide 12: Pensana partners with Polestar
PENSANA PARTNERS WITH POLESTAR Pensana is partnering with Polestar (Nasdaq: PSNY) on its moon-shot goal of creating the first truly climate-neutral car by 2030. The scope of the Polestar 0 project is to identify and eliminate all greenhouse gas emissions from the extraction of raw materials to when
Slide 13: Offshore Wind Dominated by European OEMs - who are looking to establish local supply chains
Offshore Wind Dominated by European OEMs - who are looking to establish local supply chains ▪ 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 identifi
Slide 14: Automotive and Wind Turbine OEMs driving Magnet Demand and moving upstream quickly
Automotive and Wind Turbine OEMs driving Magnet Demand and moving upstream quickly MAGNET MANUFACTURE MOTOR MANUFACTURE TURBINE MANUFACTURE OEM FINAL ASSEMBLY Japan Europe PUMP MANUFACTURE Other PENSANA Plc / COMPANY PRESENTATION
Slide 15: Private Wire connection to Offshore Wind to power low cost, ultra-low carbon metal production
Private Wire connection to WORLD’S BIGGEST WIND FARM 2.45GW DOGGER BANK Offshore Wind to power 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 320k
Slide 16: Cooperation Agreement with Equinor to Recycle Offshore Wind Turbine Magnets
Cooperation Agreement with Equinor to Recycle Offshore Wind Turbine Magnets using Low Carbon Hydrogen Pensana is partnering with leading energy provider, Equinor, to develop a low-energy method for recycling end-of-life wind turbine magnets using low-carbon Hydrogen produced from Equinor’s Hydrogen
Slide 17: Low Capex Hydro-Electric powered state-of-the-art modern mine
Low Capex Hydro-Electric powered state-of-the-art LOW CAPEX (AND OPEX) modern mine DUE TO EXCELLENT INFRASTRUCTURE Recently upgraded US$2bn Longonjo is one of the world’s largest undeveloped Benguela rail line provides direct rare earth deposits with an initial 20-year mine life. link to Atlantic po
Slide 18: Growing Supply Deficit
Growing Supply Deficit Adamas Intelligence Price Forecasts NDPR OXIDE TONNES US$ / 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 19: Market Dynamics: Both EV and Offshore Wind demand continuing to grow
Market Dynamics: Both EV and Offshore Wind demand continuing to grow Pensana is securing the supply chain for rare earth metals vital for the electric vehicle and wind turbine industries Growth in EV sales to 2035 c. 50,000t 90million units annual demand of NdPrO 50million units 2035 2015 Growth in
Slide 20: A new demand shock – this time from industrial robots?
A new demand shock – this time from industrial robots? With rising labour costs, policy support and a strong push for modernisation robots usage is expanding rapidly. High-performance NdFeB magnets are the key component of industrial robot servo motors. Forecast CAGR 20% by 2025. 2020 2021 2022E 202
Slide 21: Financial Summary
Financial Summary Based on Adamas Intelligence Base Case Pricing 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 OPEX
Slide 22: Major achievements during 2022
Major achievements during 2022 • Longonjo and Saltend fully permitted, and FEED completed • Appointment of a highly experienced Project Delivery Team • Significant engagement with major automotive and offshore • Saltend groundbreaking, launch of the UK’s Critical wind OEMs who are seeking offtake ar
Slide 23: Financing outline
Financing outline Saltend Debt Saltend: ABGSC engaged. Norwegian green bond Strategic Offtake Bond/Debt ATF grant (CICERO green bond accredited) investor/s partners Longonjo: ABSA appointed as MLA. Lender consortium inclusive In principle of ECIC, UKEF, IFC and DFC Norwegian approval for bond grant
Slide 24: Lynas Corporation 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 25: Peer comparison: Lynas, MP Materials and Pensana
LYC:ASX MP:NYSE PRE:LSE MARKET CAP US$ US$5.1bn US$5.8bn <US$150m 5,900 6,500 4,500-5,000 NdPr PRODUCTION tonnes tonnes tonnes tonnes per year by 2024 by 2025 IN PRODUCTION IN DEVELOPMENT IN DEVELOPMENT SINCE 2013 CAPEX US$ c. US$1.5 billion >US$2 billion US$500 million PENSANA Plc | COMPANY PRESENT
Slide 26: The Lassonde Curve
The Lassonde Curve Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Exploration Engineering, Permitting, Financing Mining and Production 250 200 GBP 150 Speculators leave 100 Financing and institutions arrive 50 0 Discovery, PFS, FEED, Financing… Construction Production Exploration PENSANA Plc | COMPANY PRES
Slide 27: 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 28: 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 29: 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