Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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another month flies back. atherley says thank you for his $30,000, george appreciates his $50,000 and ****** his $40,000. btw this excludes share awards. $2.0m of annual remuneration for the board. maybe for another million bucks you might even get to find out what’s really going on with the non-binding term sheet.
Hi Theorist. Genuine question. Do you see any similarities here with HZM?
Why don't you send your concerns to the remuneration board?
MAA86 - Easy answer to that. Because neither Lewis nor Theorist are shareholders. They comment on here out of the goodness of their hearts.
Woa! Intense.
Will you find inner piece if finance is achieved?
Classic retort because none of us know. What do you expect us to do? You won't find the answers by cussing the company on here!
Lewis you know what the hold up reasons are likely to be.
1. Current depression on rare earth prices as China dumps on the global market.
2. Net Zero progress has slowed down because of inflationary impacts which hopefully are stabilising.
3. Interest rates have not declined yet.
4. Liquidity regarding banks on new projects that are not backed up with an on-going source of income despite off take agreements.
5. Poor political leadership as they are happy to have supply chains still reliant on China supply despite they are needed for their own National defence.
6. Geopolitical in that the mine is based in Africa and not within USA or the EU.
China would finance the mine build in full tomorrow if they received all the rare earths produced from the LJ mine and no supply was sold to Western countries.
What makes me feel ill is that the UK wasted more money trying to send a few people to Rwanda than the entire cost of the Pensana mine project and probably most of what was needed for Saltend. Tony
TT - I can only agree with you on HMG's utterly disastrous priorities management.
But, see here for an emerging view that NdPr price looks like it has bottomed and is now on upward trend, reflecting the real underlying economics of global supply and demand:
https://www.youtube.com/watch?v=0iaqPeD1GUM
I don't see any significant shift in technology to alleviate climate change - it's still overwhelmingly wind turbines, solar panels and EVs on a massive scale, especially within China itself.
It wouldn't take much of a Chinese screw-tighten on REs to make the West see just how much it will have to pay if it keeps waffling along on supply chains security.
Lewis
We both know a nickel mine is very different to a rare earth mine construction. HZM was not the only nickel mine closed in construction, several others got mothballed and you probably know why.
You've gone from mentioning a price of 15p a few weeks ago to 5p today. Sounds like your looking for a cheaper entry..
Lewis you have been know to raise some good reasons why shareholders should feel timely announcements have not been forthcoming, having said that, the company has detailed to the market a construction timeline, where earthworks are progressing into May and are funded by the $15m provided by the FSDEA / ASWF. The timeline details that civil works will commence in May, with an additional cost expenditure of $5m forecasted for May. Also, detailed is that the accommodation block is in modular form and will be dispatched from South Africa, so obviously, you should not be troubled by the fact that construction of buildings on site is not happening. Given the amount of preparatory work, headworks, etc which has been detailed and there being ample free cash on hand obviously, the Board is comfortable with the current state of affairs, knowing the ASWF has pledged support in the form of equity and is part of the debt funding syndicate. I would agree, that the share price is not reflective of the true value of the company notwithstanding that the Board has every confidence that the ASWF will fund the projects ongoing construction until the debt funding is finalized later this year, when needed, as per the construction timeline.
Given the amount of preparatory work, headworks, etc which has been detailed by the company and there being ample free cash on hand, obviously, the Board is comfortable with the current state of affairs, knowing the ASWF has pledged support in the form of a $15m loan, additional equity and is part of the debt funding syndicate.
I believe those who have spoken to PA have been told that the share price is not where management expects it to be.
Obviously, the Board has every confidence that the ASWF will fund the project's ongoing construction until the debt funding is finalised later this year, when needed, as per the construction timeline.
Those who have questioned management have been told that the debt funding will fall into place when needed and, importantly, it is anticipated that
offtake pricing will be with an ESG premium and done at a time when ndpr prices are trending higher, up 30% on recent lows, which will invariably
move the share price, with better economics to support the debt funding.
With all this war mongering and the need to replenish and build armaments apart from general industry, we all are aware, especially with the Uk Government’s recent upgrading of economic forecasts for the UK, the Government will be very keen to secure the vital ndpr refining at Saltend.
The company is in talks with both the UK & US Governments!
The future for Pensana is assured, in my opinion.
As to the share price, I am expecting the market makers to sell their recently acquire cheap shares into the announcement, so arm up, and buy on the opportunity while the shares are at a 5 year low IMO , knowing the market makers (MM) will be shaking the tree, frustrating the MM’s by buying, will send a clear message and they will likely change strategy and move to accelerate an upward trend when a higher share price will be surely be long overdue!
As far as the construction timeline requirements go, only $5m is said to be needed for May, the larger requirement for June’s construction payment would suggest that May / June for FSDEA equity piece to fall into place to keep abreast of the published timeframe, seems viable to me.
There appears to be no need to take the equity piece until the funds are needed and closer to when, I assume, the debt funding terms sheet becomes binding.
Thank You Greek Lizard.
Very informative.
Take issue with the statement regarding managements expection of the share price. What does he expect when everything is "last minute.xxx". I think it's deliberate. PA has previously hinted he wants to flush out retail investors. Let's hope somebody like the "Iron Lady" is hoovering up.
An excellent appraisal Lizard and the update regarding the FDSEA repayment is corroborative of your view that funding will coincide with the draw downs required to meet the construction timeline. Surely, no justifiable argument to the contrary !!!