Pensana PLC · LSE:PRE
Pensana — Investor Presentation (February 2024)
21 slides from Pensana's investor presentation, February 2024
Slide 1: US$236 million Financing unlocks development of one of the world's largest rare earth mines
US$236 million Financing unlocks development of one of the world’s largest rare earth mines Corporate Presentation February 2024 LSE:PRE
Slide 2: Highly Supportive Major Shareholders have invested US$70 million to date
Highly Supportive Major Shareholders have invested US$70 million to date LSE standard list (LSE: PRE) 12 Month Share Price 285 million shares on issue 70 Market Capitalization ~£90 million 60 Angolan Sovereign Wealth Fund FSDEA (26%) 50 (Invested US$32 million Mar 2020 – Apr 2023 and 40 US$15 millio
Slide 3: Electric Vehicles to increase 10-fold by 2030 amid 'unstoppable' net zero shift
Rare earth elements (kt) Electric Vehicles to increase 10-fold by 2030 amid ‘unstoppable’ net zero shift The transition to clean energy is happening worldwide and it's unstoppable. Electric vehicles are now expected to have a global market share of 38% of new sales by 2030. Rapid uptake in EVs in re
Slide 4: Investment Opportunity for UK investors
Investment Opportunity for UK investors Rare opportunity to gain direct exposure to the biggest energy transition in history The electrification of motive power through EVs and Wind Turbines will generate a demand growth for magnet metal NdPr of 7.5% CAGR over the next decade. Pensana owns one of th
Slide 5: One of the Largest Undeveloped Rare Earth Deposits Globally
One of the Largest Undeveloped Rare Earth Deposits Globally Excellent rail, hydro and port infrastructure JORC RESERVE 30 million tonnes containing 166,000 tonnes NdPr oxide for initial 20-year mine-life. Shallow, deeply weathered orebody, with an Sulima Monte Verde average mine depth of less than 3
Slide 6: Exciting new discoveries at Coola and Sulima West - 75 km north of Longonjo
Exciting new discoveries at Coola and Sulima West - 75 km north of Longonjo Coola confirmed as a 900-metre diameter carbonatite ring dyke with similar scale and prospectivity to Longonjo. Sulima West has reported strong anomalies with high-grade mineralisation for drill testing. Metallurgical testwo
Slide 7: Angola - Attracting Global Mining Investment
Angola - Attracting Global Mining Investment Untapped critical minerals endowment, exceptional rail, hydro and port infrastructure and a highly supportive Government. Ivanhoe Founder Robert Friedland “We thank the government of Angola for welcoming Ivanhoe Mines and entrusting us to explore their va
Slide 8: State-of-the-art Mine and Processing Facility
State-of-the-art Mine and Processing Facility Upfront capital cost lowest amongst peers Upfront capital cost of US$217 million, with circa US$105 million deferred until year three. Low capex due to excellent rail, hydro and water infrastructure. US$1,200 m ARU US$1,000 m US$800 m US$600 m US$400 m R
Slide 9: Highly Experienced Project Delivery Team
Highly Experienced Project Delivery Team Proven design and delivery track record of modular process plants across Africa MCC is a leading project management team with a track record of delivering projects across Africa including Angola. ADP African minerals specialist in detailed design, constructio
Slide 10: Modular Manufacture On-site Assembly Extensively Pilot-Tested
Tails Thickener Flotation Scrubbing Concentrate Thickening & Milling Concentrate CCD Leaching Drying Nano Filtration Acid Bake Calciner MREC Precipitation Acid Plant MREC Product Bagging Reagent Storage Modular Manufacture On-site Assembly Extensively Pilot-Tested High Quality Vendors Hydro & Solar
Slide 11: Access road upgraded, 350-person camp being fabricated off-site, major earthworks well advanced
Access road upgraded, 350-person camp being fabricated off-site, major earthworks well advanced and long lead items ordered ahead of main construction May 2024
Slide 12: Construction and Commissioning Schedule – on track for first production in 2025
Construction and Commissioning Schedule – on track for first production in 2025
Slide 13: Strong demand for Longonjo's Highly-Marketable Mixed Rare Earth Carbonate (MREC)
Strong demand for Longonjo’s Highly-Marketable Mixed Rare Earth Carbonate (MREC) MINE TO MAGNET One of the only mine developers to offer a high TRANSPARENCY value, radionuclide-free product available for export. C02 targets as a key criterion and 50% diversified supply chain. Executed letter of inte
Slide 14: China controls 91% of Refining, 87% of Separation and 94% of Magnet Production
Looking to Establish an Independent Downstream Supply Chain Upstream Separation Metallisation Magnet Mine & Processing Saltend Chemicals Park Yorkshire Energy Park • 40,000 tpa MREC • 12,500 tpa TREO • 4,000 tpa NdPr alloy • UK/Europe location • Offtake underway • 4,400 tpa NdPrO • Low electricity c
Slide 15: Longonjo Financing
Longonjo Financing US$156 million Debt and US$80 million Equity Financing at the subsidiary level (PRE 65%). Major shareholder Angolan Sovereign Wealth Fund (FSDEA) is currently funding construction activities via a US$15 million loan, ensuring project momentum. The Longonjo lender consortium has pr
Slide 16: Longonjo - Compelling Economics
Longonjo - Compelling Economics Low upfront Capex with strong cashflow very highly leveraged to the NdPr price Adamas Intelligence Investment Bank Base Case 1 Forecast US$ / TONNE NDPR OXIDE NPV @ 8% US$ 1,116 million US$ 603 million 300,000 IRR 34% 29% 200,000 Payback 4 Years 4 Years Revenue Stage
Slide 17: Strong Independent Board and Experienced Executive Management Team
Strong Independent Board and Experienced Executive Management Team PAUL ATHERLEY RT HON BARONESS NORTHOVER ROBERT KAPLAN CHAIRMAN NON-EXEC DIRECTOR FINANCE DIRECTOR Mr. Atherley is an experienced mining Baroness Northover was the Prime Minister’s Mr Kaplan is a Chartered Accountant with executive an
Slide 18: Rare earth deposits are not rare. So why do so few get into production?
Rare earth deposits are not rare. So why do so few get into production? A: New projects need >100,000 tonnes NdPr Reserve, Low upfront Capex and Finance. *Bubble Size = Lynas Market Capitalisation Reserve/Resource MP in tonnes of NdPr Arafura Capex US$1,049 In Production 200,000 Finance and in Pensa
Slide 19: The Energy transition is driving a massive demand for rare earths
The Energy transition is driving a massive demand for rare earths. IEA: By 2030 there will be 350 million EVs which will drive rare earth demand 400%. CRU, Roskills, Adamas, Investment Banks all have RE price targets ~2-3X current levels. So how does a UK investor participate in this upside? Globall
Slide 20: Contact
CONTACT Pensana Plc Sign up for regular email updates or to Rex House, request a meeting with management 4th Floor, 4 - 12 Regent Street, info@pensana.co.uk London, SW1Y 4PE +44 203 356 2700 info@pensana.co.uk pensana.co.uk @PensanaRE in Pensana Plc
Slide 21: Cautionary Statement
CAUTIONARY STATEMENT This presentation and any additional documents presented (together the “Presentation Materials”) are being supplied to you solely Neither this document, nor any copy of it, may be taken or transmitted into any jurisdiction where it would be unlawful to do so. Any for information