Pensana PLC · LSE:PRE
Pensana — Non-Deal Roadshow (November 2019)
19 slides from Pensana's roadshow presentation, November 2019
Slide 1: Electrification is the greatest energy transition in history
The replacement of fossil fuels by electrification is the greatest energy transition in history But it’s not just EVs $400bn It‘s also offshore wind turbines, all forms of transport, domestic appliances, military EV boom underway equipment and a growing universe of clean energy applications. Source:
Slide 2: Which metal is going to be the biggest beneficiary?
Co Li Ni Mn Which metal is going to be the V Sn biggest beneficiary? CLUE: It’s not one of the battery metals
Slide 3: Neodymium is the critical Energy Transition metal
Neodymium is the critical Energy Transition metal Powerful NdPr Permanent Magnets are the key to modern electric motors Electric motor Controller Battery Charger Source: Dr. Bruno Lequesne, E-Motors Consulting, LLC
Slide 4: EVs will drive a 350% increase in demand for neodymium oxide by 2025
EVs will drive a 350% increase in demand “Demand for neodymium oxide for neodymium oxide by 2025 will substantially exceed global annual production leading to shortages of these critical magnet metals.” Ryan Castilloux Adamas Intelligence Q2 2019 Source: Adamas Intelligence Q2 2019
Slide 5: Offshore Wind set to overwhelm demand from EVs
Offshore Wind set to overwhelm demand from EVs growing at 1500% over the next 20 years An EV uses 2 kilograms of Permanent Magnets A 5MW Offshore Wind turbine uses 3 tonnes China and EU plan to install 350GW equivalent to 60,000 turbines $1trillion Offshore wind is set to become the largest source o
Slide 6: Chinese companies control 87% of the world's magnet metal production
Chinese companies control 87% of the world’s magnet metal production Russia 1% China 87% India Vietnam Longonjo ?% 1% <1% Thailand Brazil 1% Australia 7% 1% Malaysia <1% (ASX:LYC) Lynas Corporation’s Mt Weld is the world’s only independent major Rare Earth mine Source: ASX Lynas Corporation, Roskill
Slide 7: Longonjo project located adjacent to the Benguela rail line
North Angola Hydro Power Interconnection The world class Longonjo project is located adjacent to the US$1.8 billion Benguela rail line linking it to the Port of Lobito. Lobito RAIL LINE Atlantic Port International Airport Huambo LONGONJO PROJECT Gove Hydro Dam Source: Port of Lobito E P
Slide 8: Thick blanket of NdPr mineralisation extending over 1.5 kilometres
With a thick blanket of NdPr mineralisation extending over 1.5 kilometres Longonjo is one of the largest and highest-grade Rare Earth deposits in the world 523400 523600 523800 524000 524200 524400 524600 524800 18m at 1.04% NdPr 22m at 1.02% NdPr 16m at 0.65% NdPr (4.88% REO) (4.68% REO) 4m at 0.62
Slide 9: Fresh rock mineralisation has reported some very good grades
“The fresh rock mineralisation underlying the weathered zone has reported some very good grades. Preliminary met testwork suggests the potential is real and adds a whole new dimension to the project.” COO Dave Hammond
Slide 10: Benguela rail line links the project to the Port of Lobito
The recently commissioned $1.8 billion Benguela rail line links the project to the Port of Lobito
Slide 11: The Port of Lobito has been refurbished with excess capacity
The Port of Lobito has recently been refurbished and has excess capacity for the Longonjo concentrates
Slide 12: Since 2008 China has invested over US$20 billion into Angola
Since 2008 China has invested over US$20 billion into Angola “The rail, power and port infrastructure are some of the best I have seen.” Tim George CEO ex Anglo American
Slide 13: Wood Group Study: very low Capital and Operating costs
Wood Group Study: Access to world class infrastructure means very low Capital and Operating costs Rail Loading Capital Cost of US$131 million Open Pit Flotation Plant including 15% contingency Operating costs US$1,323 per tonne of concentrate Mining2 mtpa of near surface weathered material and produ
Slide 14: No need for capital intensive chemical processing
No need for capital Ultra low capex and World’s #2 Rare Earth intensive chemical fast track to miner processing production The access to major rail, port and The mine and flotation plant can be When in production Longonjo will power infrastructure means that constructed for US$131 million and become
Slide 15: Value of investment set to grow as Rare Earth prices rise
Value of investment set to grow as Rare Earth prices rise with increased demand from EVs and Wind turbines The project economics have been evaluated over the first 9 years of operations based on an upfront capital cost of US$131 million and using Roskill’s NdPr US$/tonne price forecasts Source: ASX
Slide 16: Strong Board and Management team, Tight Shareholder ownership
Strong Board and Management team Tight Shareholder ownership Management team has extensive African experience and ASX:PM8/PM8-AU a strong project delivery track record Market Cap US$19 million 153 million shares on issue • Tim George CEO ex Anglo American 164 million fully diluted • Dave Hammond COO
Slide 17: Designed to the highest ESG standards
Designed to the highest ESG standards The investment has been designed to meet the Equator Principles and Scope 1, 2 and 3 emissions under the Green House Gas protocol. Access to low carbon power from the Luaca hydro-electric dam and local PV and storage facilities will enable a very low carbon foot
Slide 18: Cautionary Statement
Cautionary Statement This presentation has been prepared by Pensana Metals Ltd (“Company”) as of November 2019. The presentation does not Competent Persons Statement contain all the information that a prospective investor may require about the Company or its business. It is not a complete statement
Slide 19: Chairman receives strong support for the Longonjo project
Chairman Paul Atherley receives strong support for the investment in the Longonjo project from the Angolan Minister of Mineral Resources and Petroleum and the Chinese Embassy in Luanda