Pensana Plc · LSE:PRE
Pensana — BMO 32nd Global Metals, Mining & Critical Minerals Conference February 2023
22 slides from Pensana's conference presentation, February 2023
Slide 1: Building an Independent and Sustainable supply of rare earths
Building an Independent and Sustainable supply of rare earths BMO 32nd Global Metals, Mining & Critical Minerals Conference February 2023 LSE: PRE
Slide 2: 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 3: The electrification of motive power will be the biggest energy transition in history
The electrification of motive power will be the biggest energy transition in history ➢ Two of its biggest components are Electric Vehicles and Offshore Wind… both of which are heavily dependent on powerful rare earth permanent magnets. ➢ China currently supplies circa 90% of the world’s rare earth p
Slide 4: NdPr oxide is key to the manufacture of permanent magnets used in Electric Vehicles
NdPr oxide is key to the manufacture of permanent magnets used in Electric Vehicles and Offshore Wind turbines. ➢ The burgeoning demand from Electric vehicles and Offshore Wind will drive NdPr oxide demand seven fold by 2050. Adamas Intelligence has doubled its NdPr oxide ➢ Adamas Intelligence warns
Slide 5: Lynas is currently the only major producer of NdPr Oxide outside China
Lynas Corporation (LYC.ASX) is currently the only major producer of NdPr Oxide outside China PENSANA Plc | COMPANY PRESENTATION
Slide 6: NdPr Oxide Supply outside China
NdPr Oxide Supply outside China LYC:ASX MP:NYSE PRE:LSE MARKET US$5.1bn US$5.6bn <US$200m CAP US$ NdPr oxide 6,500 4,500-5,000 PRODUCTION 5,900 tonnes tonnes tonnes tonnes per year by 2024 by 2025 IN PRODUCTION IN CONSTRUCTION IN DEVELOPMENT SINCE 2013 (Exporting Concentrate) CAPEX US$ c. US$1.5 bil
Slide 7: Saltend UK Rare Earth Processing Hub
Saltend UK Rare Earth Processing Hub Providing a secure supply for European Electric Vehicle and Offshore Wind OEMs. ➢ 12,500 tpa of rare earth (TREO) oxides ➢ Including 4,500 tpa of NdPr oxides equivalent to ~5% of world demand. ➢ Expansion plans for heavy rare earth separation and metal conversion
Slide 8: 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 9: 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 10: The Longonjo Mine
The Longonjo Mine ➢ Longonjo is one of the world’s largest undeveloped rare earth deposits with an initial 20-year mine life. ➢ Ultra-low CAPEX of US$300million due to ~US$5billion of Rail, Hydro and Port infrastructure. ➢ Will export 40,000 tpa of high value mixed rare earth sulphate (MRES) to Salt
Slide 11: Growing Supply Deficit in NdPr Oxides
Growing Supply Deficit in NdPr Oxides Adamas Intelligence Price Forecasts NDPR OXIDE TONNES US$ / 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 2024 2034 MAR 2021 MAY 2021 SEP 2021 2022 2026 202
Slide 12: A new demand shock – this time from industrial robots?
A new demand shock – this time from industrial robots? ➢ Robots are increasingly popular due to rising labour costs, policy support and a major push for modernisation. ➢ High-performance NdFeB magnets are the key component of industrial robot servo motors. ➢ Forecast CAGR 20% by 2025. PENSANA Plc |
Slide 13: Financial Summary: Adamas Intelligence NdPr Oxide Forecast Base Case
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 14: 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 15: 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 16: Saltend's growing importance as an independent and sustainable supplier to European OEMs
Saltend’s growing importance as an independent and sustainable supplier to European OEMs ➢ By 2025 Europe will produce approximately 6.6 million EDUs. ➢ Exporting globally to support the burgeoning demand for electric vehicles. ➢ Europe expected to follow the recent US Inflation Reduction Act mandat
Slide 17: Meeting Customer Demands
Meeting Customer Demands MINE TO MAGNET TRANSPARENCY C02 targets as a key criterion and 50% diversified supply chain. Pensana is committed to producing competitively priced ULTRA-LOW EMBEDDED rare earths which are: CARBON ➢ traceable MAGNET Net-Zero by 2030. Responsible ➢ the industry’s lowest DEMAN
Slide 18: Pensana is partnering with Polestar on its climate-neutral car goal
➢ 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 the car is delivered to the
Slide 19: Pensana has embedded ESG at the heart of everything we do
Pensana has embedded ESG at the heart of everything we do and has already delivered substantial ESG interventions. PARTNERSHIPS FOR CLIMATE MITIGATION AND INNOVATION GLOBAL NET ZERO Pensana will produce rare earth Pensana has developed strategic products, which are essential to partnerships with oth
Slide 20: Private Wire connection to the world's biggest Offshore Wind farm
Private Wire connection DOGGER BANK 2.45GW WIND FARM to the world’s biggest Offshore Wind farm TEESSIDE Hitachi installing 320kV HVDC cable, connecting Dogger Bank, the world’s largest offshore wind farm, to 200MW HVDC 320kV battery storage facility. As Offshore Wind expands, negative Electricity pr
Slide 21: Cooperation Agreement between Pensana and Equinor to Recycle Offshore Wind Turbine Magnets
Cooperation Agreement between Pensana and Equinor to Recycle Offshore Wind Turbine Magnets at Saltend using Low Carbon Hydrogen
Slide 22: Building an Independent and Sustainable supply of rare earths
Building an Independent and Sustainable supply of rare earths ➢ Pensana LSE.PRE market capitalisation US$168 million ➢ Major shareholders FSDEA 24%, M&G 7%, Directors and Management 5% ➢ Independent Board and highly experienced Management team ➢ Saltend Processing facility and Longonjo mine both ful
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