Pensana Plc · LSE:PRE
Pensana — Investor Presentation (April 2022)
22 slides from Pensana's investor presentation, April 2022
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 | Spring 2022
Slide 2: EV and Offshore Wind Will Drive Rare Earth Demand Five-Fold by 2030
EV AND OFFSHORE WIND WILL DRIVE RARE EARTH DEMAND FIVE-FOLD BY 2030 NdPr oxide is key to the manufacture of permanent magnets used in Electric Vehicles and Offshore Wind turbines. NdPr OXIDE PRICE Adamas Intelligence warns that post 2030: GROWTH TO 2030 “The rapid demand growth of the 2020s will 5.6
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$11 rare earth supplier to the world.” TRILLION Lin Boqiang, Director of the China Center for Energy Economics CARBON NEUTRAL 2060 PLAN Source: https://chinabigidea.substack.com/p/gep-innovation-in-china-2025-carbo
Slide 4: Lynas Currently the Only Major Rare Earth Producer Outside China
LYNAS CORPORATION (LYC.ASX) CURRENTLY THE ONLY MAJOR RARE EARTH PRODUCER OUTSIDE CHINA PENSANA Plc / COMPANY PRESENTATION c 4
Slide 5: Peer comparison: Lynas, MP Materials, Pensana
LYC:ASX MP:NYSE PRE:L MARKET CAP US$ US$7bn US$9.5bn <US$300m NdPr 5,500 6,500 4,500 PRODUCTION tonnes tonnes tonnes tonnes per year by 2024 by 2024 IN PRODUCTION IN DEVELOPMENT IN DEVELOPMENT SINCE 2013 CAPEX US$ c. US$1.5 >US$2 <US$500 billion billion 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. Facility will produce 12,500 tpa of TREO including 4,500 tpa o
Slide 7: 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 8: 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 9: Independent Rare Earth Processing Hub
SALTEND HUMBER UK INDEPENDENT RARE EARTH PROCESSING HUB Feedstock from Longonjo, South America and Europe Offtake initially South East Asia, UK and US later Europe PENSANA Plc / COMPANY PRESENTATION 9
Slide 10: Low Capital Cost State-of-the-Art Mine
LOW CAPITAL COST STATE-OF-THE-ART LOW CAPEX DUE TO MINE EXCELLENT INFRASTRUCTURE Hydroelectric power and recently upgraded US$2bn Benguela rail Longonjo is one of the world’s largest line provides direct link to Atlantic rare earth deposits with an initial 20 port of Lobito year mine life. Near surf
Slide 11: Metal Production, Magnet Manufacturer Links, Hydrogen Recycling
METAL PRODUCTION, LINKS WITH MAGNET MANUFACTURERS, HYDROGEN TO RECYCLE OFFSHORE WIND TURBINE NACELLES Studies are underway into private wire link to offshore wind to power conversion of NdPr oxides into metal. Production of metal alloy provides direct link to magnet manufacturers. Working with Equin
Slide 12: Extremely Encouraging Initial Results from Coola Exploration Programme
EXTREMELY ENCOURAGING INITIAL RESULTS FROM COOLA EXPLORATION PROGRAMME • 22 samples from 4.2 km diameter ring structure at Sulima West, all mineralised reporting up to 10.6% TREO, averaging 4.2% TREO (NdPr average = 0.86%) • Rock chip sampling of 0.9km diameter Coola carbonatite ring dyke reported u
Slide 13: Prices Already Above Roskill NdPr Oxide Forecast
PRICES ALREADY ABOVE ROSKILL NdPr OXIDE FORECAST OF $160,000 PER TONNE BY 2030 SUPPLY / DEMAND IMBALANCE FROM 2023 US$ / TONNE NDPR OXIDE 2030 DEFICIT FOUR TIMES SALTEND 200,000 ANNUAL 180,000 PRODUCTION 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 JAN 21 MAR 22 Source: NdPr oxide p
Slide 14: Financial Summary
FINANCIAL SUMMARY ANNUAL PRODUCTION 12,500 TREO / 4,500 NdPr oxide CAPEX SALTEND REFINERY US$ 195M MRES REFINERY US$ 127M LONGONJO MINE AND INFRASTRUCTURE US$ 49M LONGONJO CONCENTRATOR US$ 123M OPEX US$ 15/Kg TOTAL RARE EARTH OXIDE REVENUE (Average steady state) US$ 705 MILLION (Average per annum ba
Slide 15: 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 16: 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 Roskill Px Group infrastructure and bulk s
Slide 17: Cautionary Statement
CAUTIONARY STATEMENT This presentation and any additional documents presented (together the “Presentation Materials”) are being Neither this document, nor any copy of it, may be taken or transmitted into any jurisdiction where it would be supplied to you solely for information only. The Presentation
Slide 18: Appendix
APPENDIX PENSANA Plc / COMPANY PRESENTATION 18
Slide 19: 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 20: 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 20
Slide 21: Hydro-Power and Rail
HYDRO-POWER AND RAIL PENSANA Plc / COMPANY PRESENTATION 21
Slide 22: Port of Lobito
PORT OF LOBITO xx PENSANA Plc / COMPANY PRESENTATION 22