Pensana PLC · LSE:PRE
Pensana — Pensana Metals — Investor Presentation (September 2020)
15 slides from Pensana's investor presentation, September 2020
Slide 1: The electrification of motive power is the biggest energy transformation in history
The electrification of motive power is the biggest energy transformation in history It’s on every government’s policy agenda and it’s driven by millennials. But it’s not just EVs. $300bn It‘s also wind turbines, all forms of transport, domestic appliances, military equipment and a growing EV boom un
Slide 2: Which metal is going to be the biggest beneficiary?
Co Li Which metal is going to be Ni Mn the biggest beneficiary? V Sn An EV is essentially two or four axial electric motors powered by a large Li-ion battery. Most of these electric motors need powerful rare earth magnets. CLUE: It’s not one of the battery metals
Slide 3: Neodymium is the magnet metal
Neodymium is the magnet metal NdPr magnets Their compact size and higher efficiency favour them for most automotive traction applications. The main benefits for the vehicle owner is fuel efficiency (for hybrid vehicles) and fuel efficiency and extended range (for electric vehicles). Electric motor C
Slide 4: But we have a problem
But we have a problem Russia 1% China 87% Chinese companies India Vietnam control 96% of the world’s Longonjo ?% 1% <1% magnet metal production. Thailand Brazil 1% Their view is that there are Malaysia 1% Australia 9% the 60-70 rare earth projects <1% around the world and that for one reason or anot
Slide 5: So we asked them what they wanted
So we asked them what they wanted They explained that rare earth processing is very complex and highly capital intensive …they were not interested in supporting a new project that was going to become a competitor. However they are under pressure from international EV customers to diversify their sup
Slide 6: Yes we can...
Yes we can... Longonjo is located adjacent to the Chinese-built US$1.8 billion Lobito RAIL LINE Atlantic Benguela rail line. Port International Airport This rail line links the project with the Atlantic deep-water port of Lobito and Huambo onto customers in China. 315 K M LONGONJO PROJECT Gove Hydro
Slide 7: The mineralisation is the deeply weathered surface of a 5km2 carbonatite
The mineralisation is the deeply weathered surface Carbonatite of a 5km2 carbonatite Metres REO NdPr Mineral resource estimate: Fenite 10 8.50% 1.50% (18% NdPr)* 11.6Mt at 0.86% NdPr (4.30% Open REO) 10 8.03% 1.98% from surface Open 30 7.72% 1.21% from surface 14 7.33% 1.86% 50 5.63% 1.00% from surf
Slide 8: Thick blanket of high-grade NdPr mineralisation extending over 1.5 kilometers
Thick blanket of high-grade NdPr mineralisation extending over 1.5 kilometers 523400 523600 523800 524000 524200 524400 524600 524800 18m at 1.04% NdPr 22m at 1.02% NdPr 16m at 0.65% NdPr (4.88% REO) (4.68% REO) 4m at 0.62% NdPr 7 (3.05% REO) 12m at 0.55% NdPr (2.93% REO) 00 1580m 2 00 16m at 1.06%
Slide 9: WOOD's 2017 Scoping study
WOOD’s 2017 Scoping study highlighted the benefits of the excellent infrastructure road, rail and hydro. We have asked WOOD to undertake a study on a 1.5 mtpa flotation operation Rail Loading producing 95,000 tonnes of NdPr concentrate for export to China. Open Pit Flotation Plant Based on the forth
Slide 10: What interests us is the indicative concentrate revenue
What interests us is the indicative concentrate revenue Revenue US$/tonne 2000 NdPr 1500 CIF China Dalian 1000 Cu Tianjin Li Pb 500 Zn 0 Metal/Li2O/ $2,500 $15,000 $2,000 $6,000 $45,000 NdPr US$/tonne Source: Various ASX announcements, Analysts reports and Conrad Partners Hong Kong
Slide 11: Strong news flow ahead
Strong news flow ahead The new Mineral Resource estimate by SRK is expected to be a very significant upgrade on the maiden Mineral Resource estimate of 11.6 million tonnes at 4.30% REO including 0.86% NdPr. Updates on process route, pre feasibility study by WOOD and preliminary offtake discussions w
Slide 12: Building a great team
Building a great team Pensana has been operating in the country since 2013 and has established mutually respectful working relationships with the Ministry of Mineral Resources and Petroleum and our state-owned partner Ferrangol. We are actively engaged with the local communities and administrations
Slide 13: Profile
Profile Paul Atherley David Hammond Mark Hohnen Neil MacLachlan Chairman Chief Operating Officer Non Executive Director Non Executive Director Mr Atherley London based Geologist with over 25 years Founding Executive Chairman of Internationally experienced Investment senior resources executive. inter
Slide 14: Investment Summary
Investment Summary Upgraded Mineral Resource estimate is The high margin NdPr expected to confirm a large high-grade concentrate export strategy blanket of mineralisation with the avoids the excessive capital cost potential for very low strip-ratio open of downstream processing. pit mining operation
Slide 15: Cautionary Statement
Cautionary Statement This presentation has been prepared by Pensana Metals Ltd (“Company”) as of January 2019. The Competent Person Statements presentation does not contain all the information that a prospective investor may require about the Company or its business. It is not a complete statement o
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