Slide 1: Independent and Sustainable Rare Earth Production
Independent and Sustainable Rare Earth Production Establishing the world’s first Rare Earth processing hub at Saltend Chemicals Park Humber Freeport UK Company Presentation | Indaba 2022
Slide 2: EV and Offshore Wind Will Drive Rare Earth Demand Seven-Fold by 2050
EV AND OFFSHORE WIND WILL DRIVE RARE EARTH DEMAND SEVEN-FOLD BY 2050 NdPr oxide is key to the manufacture of permanent magnets used in Electric Vehicles and Offshore Wind turbines. Adamas Intelligence has Adamas Intelligence warns that post 2030: doubled its NdPr oxide price forecast and “The rapid
Slide 3: China Supplies 95% of World's Rare Earth Magnets
CHINA SUPPLIES 95% OF WORLD’S RARE EARTH MAGNETS “China has no obligation to be the US$11 rare earth supplier to the world.” TRILLION Lin Boqiang, Director of the China Center for Energy Economics CARBON NEUTRAL War in Ukraine Update May 2022: New Export Control Law 2060 PLAN will give Beijing contr
Slide 4: Lynas Currently the Only Major Rare Earth Producer Outside China
LYNAS CORPORATION (LYC.ASX) CURRENTLY THE ONLY MAJOR RARE EARTH PRODUCER OUTSIDE CHINA PENSANA Plc / COMPANY PRESENTATION c 4
Slide 5: Peer comparison: market cap, NdPr production, capex
LYC:ASX MP:NYSE PRE:L MARKET CAP US$ US$6bn US$7bn <US$300m NdPr PRODUCTION 5,500 6,500 4,500 tonnes per year tonnes tonnes tonnes by 2024 by 2024 IN PRODUCTION IN DEVELOPMENT IN DEVELOPMENT SINCE 2013 CAPEX US$ c. US$1.5 billion >US$2 billion <US$500 million PENSANA Plc / COMPANY PRESENTATION 5
Slide 6: "Plug and Play" Saltend Chemicals Park
“PLUG AND PLAY” SALTEND CHEMICALS PARK The first major rare earth separation facility to be established in over a decade. First to be established in a Freeport - will create 450 jobs during construction and 125 high value full time jobs. Recruitment of Chemicals team well underway. Wood group EPCM c
Slide 7: Freeport Status to Establish Saltend as International Processing Hub
FREEPORT STATUS TO ESTABLISH SALTEND AS 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 • Na
Slide 8: Independent Rare Earth Processing Hub
SALTEND HUMBER UK INDEPENDENT RARE EARTH PROCESSING HUB Feedstock from Longonjo, South America and Europe Offtake initially East Asia, UK and US later Europe PENSANA Plc / COMPANY PRESENTATION 8
Slide 9: High Voltage DC Cable from 2.45GW Dogger Bank to 200MW Battery Storage
HIGH VOLTAGE DC CABLE DOGGER BANK 2.45GW WIND FARM FROM 2.45GW DOGGER BANK TO 200MW BATTERY STORAGE TEESSIDE Hitachi installing 320kV HVDC cable, facilitating efficient transmission from Dogger Bank, the HVDC 320kV world’s largest offshore wind farm, to Harmony Energy’s 200MW battery storage facilit
Slide 10: Downstream Metal Production, Magnet Links, Hydrogen Recycling
DOWNSTREAM METAL PRODUCTION, LINKS WITH MAGNET MANUFACTURERS, HYDROGEN RECYCLING OFFSHORE WIND TURBINE NACELLES Studies are underway into private wire link to offshore wind battery storage to power the conversion of NdPr oxides into metal. Production of metal alloy provides direct feedstock for magn
Slide 11: Low Capital Cost State-of-the-Art Mine
LOW CAPITAL COST LOW CAPEX (AND OPEX) DUE TO STATE-OF-THE-ART MINE EXCELLENT INFRASTRUCTURE Recently upgraded US$2bn Benguela rail line provides direct link to Atlantic port of Lobito. Longonjo is one of the world’s largest rare earth deposits with an initial 20 year mine life. Hydro Electricity @ U
Slide 12: First Ever UK Mining Trade Mission to Angola
UK DEPARTMENT OF INTERNATIONAL TRADE FIRST EVER UK MINING TRADE MISSION TO ANGOLA 40 delegates from Government of Angola, the Ambassador of the United Kingdom, Ambassador of Norway, UK DIT, corporates including Rio Tinto, Anglo American and De Beers. Her Majesty’s Ambassador to Angola Roger Stringer
Slide 13: Port of Lobito US$2 Billion Upgrade
PORT OF LOBITO US$2 BILLION UPGRADE 2014 PENSANA Plc / COMPANY PRESENTATION 13
Slide 14: Extremely Encouraging Initial Exploration Results from Coola Project
EXTREMELY ENCOURAGING INITIAL EXPLORATION RESULTS FROM 7,500 KM 2 COOLA PROJECT Exploration Manager Grant Hayward: “We are extremely encouraged by these exciting targets. Whilst early stage, these are very large structures reporting grades in some cases higher than those for Longonjo.” 22 samples fr
Slide 15: Supply Deficit and Adamas Price Forecasts
SUPPLY DEFICIT AND ADAMAS PRICE FORECASTS 2035 DEFICIT SUPPLY / DEMAND IMBALANCE FROM 2023 15 TIMES US$ / TONNE NDPR OXIDE (NdPr oxide tonnes) SALTEND 50,000 ANNUAL 300,000 PRODUCTION 0 200,000 (50,000) 100,000 0 (100,000) MAY 2021 SEP 2021 JUL 2021 NOV 2021 2022 2030 2024 2032 2026 2034 2028 MAR 20
Slide 16: VW ID.3 Range of EVs Will Consume Saltend's Entire Production
VW ID.3 RANGE OF EVs WILL CONSUME THE EQUIVALENT OF SALTEND’S ENTIRE PRODUCTION FOR THE NEXT DECADE Sources: ID.3 forecast based on management expectations and VW Financial Services forecast sales of 1.5 million units per annum expected to be sold by 2025. Estimated rare earth usage per vehicle priv
Slide 17: Kincardine Floating Offshore Windfarm
THE 50MW KINCARDINE FLOATING OFFSHORE WINDFARM, THE WORLD’S LARGEST TO DATE, BECAME FULLY OPERATIONAL IN OCTOBER 2021. LOCATED 15KM OFF COAST OF ABERDEENSHIRE IN WATER DEPTHS 60 TO 80 METRES, THE PROJECT CONSISTS OF SEVEN TURBINES ON SEMI-SUBMERSIBLE PLATFORMS. PENSANA Plc / COMPANY PRESENTATION 17
Slide 18: Industrial Robot Demand
INDUSTRIAL ROBOT DEMAND High-performance NdFeB magnets are the key component of industrial robot servo motors. With rising labour costs, policy support and a strong push for modernization, robots are becoming increasingly popular. Forecast CAGR of 22% from 2020 to 2025 2020 2021 2022E 2023E 2024E 20
Slide 19: Financial Summary: Adamas NdPr Oxide Forecast Base Case
FINANCIAL SUMMARY ADAMAS NdPr Oxide Forecast Base Case ANNUAL PRODUCTION 12,500 TREO / 4,500 NdPr oxide CAPEX SALTEND REFINERY US$ 195M LONGONJO MRES REFINERY US$ 127M LONGONJO CONCENTRATOR US$ 123M LONGONJO MINE AND INFRASTRUCTURE US$ 49M OPEX US$ 15 / kg total rare earth oxide REVENUE (Average ste
Slide 20: World Class Management Team
WORLD CLASS MANAGEMENT TEAM PAUL ATHERLEY TIM GEORGE ROCKY SMITH ROBERT KAPLAN JEREMY BEETON RT HON BARONESS STEVE SHARPE CHAIRMAN EXEC DIRECTOR/ COO FINANCE DIRECTOR NON-EXEC DIRECTOR NORTHOVER NON-EXEC DIRECTOR CEO NON-EXEC DIRECTOR Mr. Atherley has extensive A Minerals Engineer, Mr. Mr Smith is a
Slide 21: Market and Technical Advisers
MARKET AND TECHNICAL ADVISERS MARKET INTELLIGENCE SALTEND TECHNICAL LONGONJO TECHNICAL Adamas Intelligence Wood Group Wood Group - technical engineering and design Market forecasts Technical engineering and design Paradigm Project Management - Longonjo site infrastructure and Roskill Px Group bulk s
Slide 22: Cautionary Statement
CAUTIONARY STATEMENT This presentation and any additional documents presented (together the “Presentation Materials”) are being supplied to you solely Neither this document, nor any copy of it, may be taken or transmitted into any jurisdiction where it would be unlawful to do so. Any for information
Slide 23: Appendix
APPENDIX PENSANA Plc / COMPANY PRESENTATION 23
Slide 24: FEED Equipment and Service Packages
FEED EQUIPMENT AND SERVICE PACKAGES 100% of the T1, T2 and T3 packages complete. Overall 70% of equipment packages complete for +/-10% accuracy Category Concentrator MRES Refinery Total T1 Critical long lead items 3 6 2 11 T2 Required 9 11 12 32 T3 Vendor data 8 14 15 37 T4 Budgetary quotes 21 14 21
Slide 25: World Bank Group Angola Economic Update
WORLD BANK GROUP Angola Economic Update Angola’s economy is expected to exit a five year recession and grow in 2022 ✓ Handled the Covid pandemic extremely well ✓ Strong Fiscal Surplus (oil price rises) ✓ Debt to GDP ratio falling from 135% to 95% ✓ Moody’s has upgraded credit rating to B3 with stabl
Slide 26: Mining Journal World Risk Report 2021
MINING JOURNAL World Risk Report 2021 Angola stands tall versus the Aussie mining states of Western Australia, Queensland and New South Wales Source: Mining Journal World Risk Report 2021 PENSANA Plc / COMPANY PRESENTATION 26
Slide 27: Angola: Stable and Attractive Investment Environment
ANGOLA: “STABLE AND ATTRACTIVE INVESTMENT ENVIRONMENT” Anglo American signs five Mining agreements during 2020. "I was impressed with the strategic vision that the Angolan minister Diamantino Azevedo has for Angola in particular, and what he wants to do with the Mining Sector”. Mark Cutifani, former
Slide 28: Hydro-Power and Rail
HYDRO-POWER AND RAIL PENSANA Plc / COMPANY PRESENTATION 28
Slide 29: Lobito: A Major Container Port
LOBITO: A MAJOR CONTAINER PORT PENSANA Plc / COMPANY PRESENTATION 29
Slide 30: Lobito: A Major Container Port – Floating Offshore Wind
LOBITO: A MAJOR FLOATING CONTAINER OFFSHORE PORT OF WIND – THE FUTURE PENSANA Plc / COMPANY PRESENTATION 30 PENSANA Plc / COMPANY PRESENTATION 30