Pensana Plc · LSE:PRE
Pensana — Investor Presentation (July 2019)
23 slides from Pensana's investor presentation, Jul 22, 2019
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 But it’s not just EVs. It‘s also wind turbines, all forms $300bn of transport, domestic appliances, military equipment and a growing universe of clean energy applications. EV boom underway Source: Reuters BNEF
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 87% 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...
North Angola Hydro Power Interconnection Yes we can... Lobito Atlantic Longonjo is located adjacent Port to the Chinese-built US$1.8 billion Benguela rail line. This rail line links the project with the Atlantic port of Lobito 315 K M and onto customers in China. Huambo International Airport RAIL LI
Slide 7: Longonjo ranks as one of the world's largest and highest grade NdPr deposits
Fenite Longonjo ranks as one of Carbonatite the world’s largest and highest grade NdPr Open deposits. Open Infill drilling area Open Highly respected international mining industry consultants Open SRK has reported an Inferred Mineral Resource estimate of: 240 million tonnes at 1.60% REO including 0.
Slide 8: Thick blanket of high-grade NdPr mineralisation extending over 1.5 kilometres
Thick blanket of high-grade NdPr mineralisation extending over 1.5 kilometres 523400 523600 523800 524000 524200 524400 524600 524800 18m at 1.04% NdPr 22m at 1.02% NdPr 16m at 0.65% NdPr (4.88% REO) (4.68% REO) 4m at 0.62% NdPr 7 (3.05% REO) 12m at 0.55% NdPr (2.93% REO) 00 1580m 2 16m at 1.06% NdP
Slide 9: Diamond drilling infill programme results
Open Open Diamond drilling infill programme has reported spectacular intersections and has opened up the fresh rock potential. LRC136 The surprise has been the high LRC127 grade mineralisation over a large area in the fresh rock immediately LRC112 LRC113 LJD018 500m below the weathered zone. “This f
Slide 10: WOOD's 2017 Scoping study
WOOD’s 2017 Scoping study highlighted the benefits of the excellent infrastructure road, rail and hydro. We have asked WOOD to execute a Pre- Feasibility Rail Loading Study study on a flotation operation producing NdPr Open Pit Flotation Plant concentrate for export to China. Taking advantage of the
Slide 11: What interests us is the indicative concentrate revenue
What interests us is the indicative concentrate revenue Revenue US$/tonne 2000 NdPr CIF China 1500 Dalian Tianjin 1000 Cu 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 12: Strong news flow
Strong news flow: Recent upgrade in Mineral Resource estimate makes Longonjo one of the world’s largest and highest grade NdPr deposits. Wood Group appointed to execute a pre feasibility study for September 2019. Looking at ultra low Capex early start opportunity. In discussion with Chinese customer
Slide 13: 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 14: 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 15: Roskill: NdPr market to double in size and prices to increase by over 50%
Roskill: NdPr market to double in size and prices to increase by over 50% in the next five years. Pure battery EVs and LSEVs use more permanent magnets per motor than HEVs (Toyota Prius: 1.5kg NdFeB) Other Consumer NdFeB 12% elec. 10% Aircon 5% Other 8% Wind Other Consumer turbines 3% NdFeB 20% elec
Slide 16: Investment Summary
Investment Summary Following upgraded Mineral Resource The NdPr concentrate export estimate Longonjo now ranks as one of strategy avoids the excessive the world’s largest and highest grade capital cost of downstream NdPr deposits. processing. Experienced board and management Scoping study by WOOD hi
Slide 17: Cautionary Statement
Cautionary Statement This presentation has been prepared by Pensana Metals Ltd (“Company”) as of July 2019. 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 statement of m
Slide 18: Appendix
APPENDIX
Slide 19: Consultant Metallurgist and COO arranging sample for concentrate analysis in China
Consultant Metallurgist Vic Mclaglen and COO Dave Hammond arranging sample for concentrate analysis in China.
Slide 20: Key infrastructure is the $1.8 billion Benguela rail line
Key infrastructure is the $1.8 billion Benguela rail line linking the project to the Port of Lobito
Slide 21: CEO briefing Angola media during Ministerial site visit
CEO Tim George briefing Angola media during Ministerial site visit.
Slide 22: Chairman receives strong support from the Angolan Minister
Chairman Paul Atherley receives strong support for the Longonjo project from the Angolan Minister of Mines and the Chinese Embassy in Luanda.
Slide 23: What does Wesfarmers' A$1.5bn bid for Lynas mean for rare earths miners?
What does Wesfarmers’ A$1.5bn bid for Lynas mean for the rest of the rare earths miners? 21:05 28 Mar 2019 Wesfarmers has put the cat amongst the rare earth pigeons Proactive Investors Bring on the bidding war Wesfarmers (WES) has launched a conditional takeover bid for Lynas (LYC) at A$2.25/sh (A$1