Pensana PLC · LSE:PRE
Pensana — Pensana Rare Earths — Investor Presentation (September 2020)
21 slides from Pensana's investor presentation, Sep 8, 2020
Slide 1: Riding the US$16 trillion Green Energy Wave
Riding the US$16 trillion Green Energy Wave Massive post-COVID stimulus programmes are transforming the renewable energy sector creating unprecedented demand for critical metals Source: Goldman Sachs - Business Insider Australia, 18 Ju
Slide 2: Germany's €130 billion EV supercharge
Germany’s €130 billion EV supercharge Angela Merkel has just announced the biggest ever financial support for the German auto industry with the UK, France and other EU countries quickly following suit. €130 billion allocated to 70,000 chargin stations and doubling the vehicle subsid to €6,000 target
Slide 3: Growing at 30% per year, on track to become trillion dollar industry
Growing at 30% per year and on track to become a trillion dollar industry by 2040 Offshore Wind will be the major beneficiary of the European Green Deal with €25 billion invested over the next two years Source: WindEurope 27.05.20 , European Union 14.01.20
Slide 4: The €20 billion North Sea Wind Power Hub
The €20 billion North Sea Wind Power Hub will be six times more powerful than China’s Three Gorges Dam Located 140 km off the North Yorkshire coast the 1,000 km2 array of 260-metre-high turbines will harness the North Sea's gale force winds and generate sustainable low-cost electricity for Germany,
Slide 5: Offshore Wind and EVs will create shortages of critical magnet metals
Overwhelming demand from Offshore Wind and EVs will create shortages of critical magnet metals Industry specialist Adamas Intelligence has warned that EVs will drive a 350% increase in magnet metal demand over the next five years leading to shortages in NdPr oxide supply. The demand from offshore wi
Slide 6: Chinese companies control 87% of world's magnet metal production
Chinese companies control 87% of the world’s magnet metal production Source: ASX Lynas Corporation, Roskills
Slide 7: World class infrastructure means lower capital cost and faster development
World class infrastructure means lower capital cost and faster development The US$2 billion Benguela rail line links the mine to the recently upgraded Port of Lobito Sustainable power comes from ultra- low-cost hydroelectricity
Slide 8: US$1.8 billion rail line links Longonjo with the Port of Lobito
Recently commissioned US$1.8 billion rail line links Longonjo with the Port of Lobito Source: Macauhub 04.10.19
Slide 9: Port of Lobito recently refurbished at a cost of US$2 billion
Port of Lobito recently refurbished at a cost of US$2 billion Source: Macauhub 04.10.19
Slide 10: One of the world's largest Rare Earth deposits, JORC Mineral Resource
One of the world’sNdPr Thick surface blanket of high-grade mineralization over 1.5 kilometres largest Rare Earth JORC Mineral Resource estimate 226 million tonnes deposits 1.47% REO incl. 0.33% NdPr containing 3,320,000 tonnes REO incl. 735,000 tonnes NdPr 18m at 1.04% NdPr 22m at 1.02% NdPr 16m at
Slide 11: Low capital cost, simple flowsheet and attractive product
Low capital cost, simple flowsheet and attractive product To avoid the complexity of downstream processing the high grade, near surface ore body will be processed into a mixed rare earth carbonate. Longonjo is targeting to produce around 16,000 tonnes per year of high-grade NdPr carbonate for sale t
Slide 12: Presidential approval, Angolan Sovereign Wealth Fund backing and Chinese EPC
Presidential approval, Angolan Sovereign Wealth Fund backing and Chinese EPCF • President Lourenco granted approval for the Mining Licence in May this year. • The Angolan Sovereign Wealth Fund has provided US$6 million in equity funding and is now a major shareholder with 18%. • Recently announced H
Slide 13: Highly geared to rising Neodymium prices
*Highly geared to rising Neodymium prices HIGH NPV US$ xxxm IRR xx% HIGH MEDIUM NPV US$ xxxm IRR xx% MEDIUM LOW LOW NPV US$xxxm IRR xx% *BFS due October to provide Source: Roskill Report
Slide 14: Offshore Wind to increase 18 times; at least 5 new Rare Earth mines needed
Offshore Wind to increase 18 times under the European Green Deal Adamas Intelligence warns we will need at least 5 new Rare Earth mines over the next decade Production Mkt Cap tonnes NdPrO US$ million The last major rare earth mine to come on-line was Lynas's Mt Weld in Australia 12 years ago. The m
Slide 15: If VW is going to achieve world leadership it needs its own Rare Earth mine
If VW is going to achieve world leadership with its ID3 range of EVs it’s going to need its own Rare Earth mine. 1940 – 80 1970 – 2020 2020 – 2050 VW’s new range of EVs each uses around 1kg of Neodymium oxide in powerful permanent magnets in its axial motors and electrical systems. VW are forecast t
Slide 16: All Funds now want very high ESG standards
All Funds now want very high ESG standards A particular focus is on the training Designed to Equator Principles of young women for technical and Scope 1, 2 and 3 emissions under and engineering roles. the Green House Gas protocol. Access to low carbon power from the Luaca hydro-electric dam enabling
Slide 17: Strong Board and Management team
Strong Board and Management team Management team has extensive African experience and a strong project delivery track record Tim George Rob Kaplan Dave Hammond CEO ex Anglo American CFO ex Petra Diamonds COO ex Peak Resources Board has strong track record in mine financing and delivering exceptional
Slide 18: Long term shareholders increasing ownership
Long term shareholders increasing ownership. 188 million shares on issue. Market cap £78 million. Angolan Sovereign Wealth Fund, High Net Worth, Institutional investors and Management all continue to increase their holdings in the company. 50 holders now own over 78% of the register ASWF 18% HNW 20%
Slide 19: Recently awarded 7,500 km2 Coola Project hosts two NdPr-rich carbonatites
Recently awarded 7,500 km 2 Coola Project hosts two 7500 Km Coola Project hosts two NdPr-rich 2 NdPr-rich carbonatites carbonatites and 10 and 10 walk-up walk-up exploration exploration targets targets Ø The Coola and Monte Verde NdPr-rich carbonatites are the priority drill targets. 7500 km2 Ø Ther
Slide 20: The US$16 trillion Green Energy Wave will supercharge demand for critical magnet metals
The US$16 trillion Green Energy Wave will supercharge the demand for critical magnet metals With no new mines in construction, NdPr prices are forecast to at least double or treble over the next five years. With Presidential approval, financial backing from the Angola Sovereign Wealth Fund Pensana i
Slide 21: Cautionary Statement
Cautionary Statement This presentation has been prepared by Pensana Rare Earths Plc (“Company”) as of 8 September 2020.The Competent Persons Statement presentation does not contain all the information that a prospective investor may require about the Company or its business. It is not a complete sta
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