The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Pieces are all falling into place from the DD RNS 21st January.
Tim George CEO commented "We are very pleased to receive this important product quality approval for the Longonjo mixed rare earth carbonate which follows extensive pilot plant test work in Perth, Western Australia. Our understanding is that there is expected to be a shortage of high quality, clean product coming onto the market in the near future, and this puts us in a strong position when looking to secure offtake arrangements."
Pensana puts pieces in place for integrated financing
https://youtu.be/93-F1p-kYA4
Strategic value driving Pensana's downstream ambitions
https://youtu.be/4Ntfc5pIN_I
Longonjo economics feed off infrastructure edge
https://www.mining-journal.com/resourcestocks/resourcestocks/4169643/longonjo-economics-feed-infrastructure-edge
Skulker - What was the Proactive Investors interview he did last Friday, or the webinar the week before, or the ALK interview he gave this week? Scotch mist?
As usual no word from PA.
January 30, 2024
At this meeting, the EEMAC will explore the role of rare earth minerals in transitional energy and electrification, including the potential development of derivatives products to offer price discovery and hedging opportunities in these markets. Additionally, a presentation and discussion on the federal prudential financial regulators proposed rules implementing Basel III and the implications for and impact on the derivatives market. Finally, the two EEMAC subcommittees will offer an update on their continued work related to traditional energy infrastructure and metals markets.
https://www.cftc.gov/PressRoom/PressReleases/8855-24
Recognising that the market price for NdPr has long been jury-rigged by China, but especially since the outbreak of COVID in 2020, the US Defence department is moving towards overturning the whole critical metals pricing system. DARPA are going out to tender for an AI-based system of RE pricing to get round the supply chain barriers the US faces due to the current bent market, see:
https://www.mining.com/web/pentagon-plans-ai-based-program-to-estimate-prices-for-critical-minerals/
The DARPA program, known as Open Price Exploration for National Security (OPEN), is contracting the development of an independent AI-based pricing system which goes beyond the conventional economics of price-setting where prices are set by futures markets and pricing agencies reflecting what buyers are willing to pay, and sellers are willing to accept using supply, demand and other factors.
Its aim is nothing less than to “revolutionize the construction and dissemination of price, supply, and demand predictions and forecasts in critical materials markets.” It will do this by avoiding the problems of “opaque and flawed pricing data” that pose “substantial barriers to US commercial competition”, in order to “remove market opacity that can engender supply chain disruptions” by creating an AI-pricing model that would construct a metal’s “structural price” based on where and when it is produced, as well as labour, supply and other costs.
OPEN cited the LME’s 2022 nickel pricing fiasco as one of the “endogenous market dynamics and anti-competitive practices [that] can make futures markets a poor source of price information” as evidence of the need for a new pricing code.
Interestingly, several lithium, rare earths, and graphite miners have already begun charging premium prices for metals produced outside of China, suggesting that the current market price mechanisms for critical minerals are indeed no longer fit for purpose.
This will be introduced in three stages over the next 2 years, and could dramatically improve the investment case for Pensana, particularly regarding the Saltend plant.
Lol sorry wrong board:)
Lol. Recommend a read of DiscoDog's comment history.
And spread has widened too.
All the signs of the dump boys.
Last one from me.
I suspect FOMO, just hope it's not unfounded
Obviously we don't know... but it's getting a bit carried away now and I do wonder if something has got out. In a way, hopefully it has, because it must be good news! Fingers crossed they've finally got something sorted out.
ATB
Https://www.kallanish.com/en/news/power-materials/market-reports/article-details/pensana-welcomes-trafiguras-lobito-corridor-investment-0723/
UK-based rare earth developer Pensana expects its Angolan mining operation to benefit from the recently announced $555 million investment in the Lobito Rail Corridor, Kallanish reports.
A Trafigura-led consortium – Lobito Atlantic Railway – has been awarded a 30-year concession to operate the rail infrastructure corridor that runs around 1,300 kilometres. The line connects the Lobito port to Luau, in eastern Angola, close to the border of the Democratic Republic of the Congo (DRC). The Lobito railway extends across Angola and then continues for 400 km into the DRC to Kolwezi, the heart of the Copperbelt.
The consortium JV partners, which include Mota-Engil and Vecturis, plan to invest $455m in Angola and up to $100m in the DRC. There is also scope for future investment into an extension to Zambia. According to Trafigura, the railway will provide an alternative to east African ports where long delays and bottlenecks are “commonplace” and provide the “fastest export and import route from the region to Europe and the Americas.”
The rail infrastructure also offers the shortest and most direct route to port from the key mining district of Kolwezi, DRC, where exports of copper, cobalt and critical raw materials.
Commenting on the announcement, Pensana ceo Tim George said it was “perfect timing” for the investment in rail infrastructure. “It’s expected to have a very positive impact on the transport logistics during the Longonjo construction period and on the reagent and product transport during operations,” he says in a note.
The Longonjo mine in Angola is planned to produce 38,000 tonnes/year of mixed rare earth sulphate, containing 14,000 t of total rare earth oxides and 4,400 t of neodymium-praseodymium oxide. This production will be processed in the UK, targeting western permanent magnet demand from electric vehicle and wind turbine manufacturers.
Pensana expects to start main construction at Longonjo this year, with first production planned for 2025. The direct access to the Lobito Corridor rail and port infrastructure will enable the company to ship feedstock to Europe, unlocking the potential of one of the world’s largest undeveloped rare earth projects.
The Lobito Corridor project will allow the resource-rich DRC and Zambia to transport copper, cobalt and other critical minerals to the port of Lobito on the Angolan coast, strengthening the pipeline of materials needed for sustainable energy transition. Blinken was pleased to observe the “dramatic progress” made on the project during his trip, noting that the corridor would also spur investment in telecommunications, agriculture and other sectors.
https://macaonews.org/news/lusofonia/us-angola-relations-antony-blinken-visit/
We have lift off 🚀
It seems that things may be finally moving.
GLS
I agree Robbie. Paul was even more upbeat and confident than he usually is, and that is saying something!
Announcement on funding coming very soon.
PA looking very pleased with himself. GLA
Thank you Mumbles.
Valuation it is, the structure of the fiancing is
$60 million equity from FSDEA (15 million already forward as a loan, will be converted to equity as part of the 60 million, for $20% of the Ozango limited asset.)
$20 million equity/debt in the form of a Convertible note against Pensana
$120 million debt from Absa.
All in the previous company communications
It sounds as if the risk of not having a finance offer has diminished. The question now seems to be what will be the price for the deal.
The backdrop is encouraging. The Chinese have shown their hand with a recent massive restriction on exports of graphite. Clearly REs are in the frame for restrictions too, either because they need them for their own use or wish to make them a political bargaining chip. Whether that is important to ABSA is another matter.
It also looksasif the finance is going to be $120m debt, and the rest ($100m) mix of equity and royalty finance
I am pleased the due diligence report is out there for everyone to read.
Whilst this technical review has been underway, we have been working closely
with our financiers ABSA, FSDEA and others and we expect to be in a position to
announce the financing arrangements shortly."