The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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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."
This was posted a few months back and recently came across, head of ABSA coverage principle speaking about looking at mineral and metals financing " RARE EATHS" in Africa they are excited about.
ABSA bank of South Africa has been mandated as lead arranger for a US$120 million loan facility, which is expected to include export credit guarantees from ECIC and debt participation from a pan-African multilateral.
https://www.youtube.com/watch?v=O77voL6c4JI
Operative words "to conclude the main finance"
Angolan sovereign wealth fund Fundo Soberano de Angola (FSDEA) is “delighted to see the excellent progress” being made on site, as this is an important project for the entity, FSDEA chairperson Armando Manuel has said.
Pensana Rare Earths and its local subsidiary Ozango Minerais welcomed the full board of FSDEA to Longonjo for a site inspection on January 10. The six members of the board were accompanied by the head of investment and key analysts of the FSDEA.
“[The] FSDEA has financed the acceleration of construction activities to ensure [that] the project maintains momentum while we work with the lender consortium to conclude the main finance,” Manuel has explained.
https://www.miningweekly.com/article/longonjo-neodymiumpraseodymium-project-angola-update-2024-01-19
China/Theo - Please discuss your views on the appropriate board. This board is for Pensana.
Update on Longonjo Financing
The Angolan Sovereign Wealth Fund (FSDEA) is funding
construction activities on site via a US$15 million loan, ensuring
project momentum.
FSDEA and a pan-African multilateral Development organisation
have indicated that they will provide US$80 million in equity at
the Ozango subsidiary level.
ABSA bank of South Africa has been mandated as lead arranger
for a US$120 million loan facility, which is expected to include
export credit guarantees from ECIC and debt participation from
a pan-African multilateral.
High level commercial debt and equity terms at the Ozango level
have been provided with all parties now working towards
completion.
One of the only mine developers to offer a
high value, radionuclide-free product
available for export.
Executed letter of intent for the offtake of
100% of stage 1 production from Longonjo.
Sample qualification underway which will
lead to finalised agreements in Q1 2024.
Nusrat Ghani, Minister of State at the Department for
Business and Trade and Cabinet Office, highlighted that the
Saltend project would be an important step in supporting
the UK automotive industry which employs 780,000
people.
Strong interest in Saltend’s development across a wide range of stakeholders
Recent site visit by representatives of M&G, Automotive Transformation Fund, Cabinet Office
for Investment, Department for Business & Trade, PX Group, Future Humber, Yorkshire Energy
Park, East Riding Council and University of Lincoln.
UK Government also wishes to utilise Pensana’s
relationship with the world’s largest magnet
manufacturer with a view to bringing their next
investment to the UK.
Pensana is partnering with leading energy
provider, Equinor, to develop a low-energy
method for recycling end-of-life wind turbine
magnets using low-carbon Hydrogen produced
from Equinor’s Hydrogen to Humber (H2H) at
Pensana’s Saltend Rare Earth processing facility.
https://pensana.co.uk/wp-content/uploads/2024/01/Corporate-Presentation-January-2024.pdf
Theo, I think you need to answer some questions yourself: If as you now claim you are no longer associated with the Chabad warmongers and are free agent again; perhaps you could get your mate Thomas at REO to post an update as to what the status of Round Top is now ?
When you think of it Jack L is a far bigger failure than PA could ever be, all those years tarting up a project that never had a hope in hell of being profitable, something he would have known after the first round of drilling. And yet he managed to con Joe into pouring his stolen money into it. As they say there is no Honor amongst thieves.
So if you are the X-spurt you claim to be, demonstrate it by giving us your analysis of what happened at Round Top. Then if your explanation is plausible we might then give you some credibility.
Fair enough. Accepted.
Apologies Sundrum.
Theo - Temper, temper.
You wrote, ' I do not recall ever saying anything about administrators.'
I consequently pointed out the fact that you wrote about administrators on 6 separate occasions. As you're dishing out labels, what does that make you?
This....again....was spot on at the time of writing.
Angola bailed them out at high project dilution cost. I remember being berated for suggesting finance would happen below £1. Sp now 20p with project valued at 60p. Not seeing much return unless all goes swimmingly and we seem dividend. Long, long way off imho if at all.
Theo, you're better than that,
Theo - One would think your concerns should be were you have a financial investment , not venting were you do not , think moving forward i might take your own advise you posted on the HZM thread , to filter out the negative noises as you have done with the Publican , We are all big boys here that have done our DD and your venting towards Pensana has no influence contrary to your wishful thinking.