George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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As Martin Luther King said.
PAUL1DEANO
Pensana Plc - LSE: PRE is an Institutionally backed junior, with finance, in construction
and with a big valuation upside.
FSDEA, M&G and PCA have invested US$70 million to date. Ultra-low US$217 million upfront Capex
• PRE (65%) of EBITDA £137-163 million per annum v current market cap of £100 million.
• PRE (65%) Base Case valuation US$600-1,100 million = £1.09 – 2.01 per share versus
current 31p.
Pensana will definitely be a good one to monitor over 18 months, the EBITDA will surely be compelling for instructional investment, coupled with downstream processing at Saltend UK, a NPV of many multiples of $1b should see the share price being x 10 to 20 times based on peer group comparisons with only circa 300m shares on issue.
Monitoring for a further 18 months when in production and debt free, the dividends will be multiples of the current share price.
All the best with your monitoring!
More evidence that China is waging price wars to prevent the West from investing in critical metals supply chains:
https://finance.yahoo.com/news/china-crushed-west-race-power-050000870.html
Dominic Raab was right - we shouldn't dig deeper into the hole where China is trying to bury us.
HMG needs to recognise that the critical minerals marketplace no longer reflects reality, and we need to develop a 'rational' pricing basis for them. The simple fact they are critical implies we should incorporate a price premium for Western supply chains which is not payable for Chinese-dominated supply. The clue is in the name.
Followed by a slap with a wet fish from our China correspondent:
https://www.globaltimes.cn/page/202403/1308615.shtml
Basically says our supply chains are too long, we don't have any industrial base anyway, and we monopolists in China are no threat at all, honestly...
Here's an alternative link to the Telegraph article which allows you to read the thing without demanding money:
https://www.reddit.com/r/ukpolitics/comments/1bbvpyo/british_battery_plants_given_cheap_power_deals_in/?rdt=45672
The event comes on the heels of U.S. Secretary of State Anthony Blinken’s visit to Luanda in January 2024 where he discussed bilateral relations and partnerships in the areas of infrastructure, energy, economic engagement and trade. In October 2023, the U.S. also signed a seven-side MoU with the African Development Bank, the Africa Finance Corporation, the EU and the governments of the DRC, Zambia and Angola for the Lobito Corridor. The project links the Copperbelt in southern Africa to the Atlantic Coast for the purpose of driving mineral development and international trade.
https://energycapitalandpower.africa-newsroom.com/press/angola-represents-a-strategic-opportunity-for-united-states-us-investors?lang=en
See:
https://www.telegraph.co.uk/business/2024/03/10/british-battery-plants-cheap-power-china-dependence/
Lead article in Business Telegraph today - interesting comments by PA on intention of more HMG encouragement for critical minerals UK investments through lower energy costs.
I fancy the SP to go even lower and the need to raise more funds over the rest of the year, this could go a lot lower.
I'm going to monitor this one over the coming 18mths and decide.
I should also add that loans by South African banks also qualify under the ECIC mandate not just goods, as does finance from other AFRICAN countries. However, South African content requires a minimum of 50%; overall, African content is greater than 70%. https://www.ecic.co.za/products/export-credit-insurance/
Absolutely know I have figured it correctly Theo. And you have answered your own question within your post
Could well lift the SP this morning.
Mumbles. Are you sure you have figured this correctly. ECIC would be supporting the South African exporter of mining equipment by underwriting the political risk and possibly some of the commercial risk. I say possibly because the analysts at ECIC are not, imo, likely to take Project risk. Also the deal size looks to be a max $20m, taking this from the ECIC website. I cannot see how ECIC would be reducing the interest rate on Pensana’s debt, they are not giving a guarantee to the lenders or removing project or political risk for the lenders. They are just supporting the exporter so South Africa gets the benefit of South African jobs and foreign currency. Do you agree?
The Export Credit Agency is the South African company ECIC. If a project's value is 70% or more African content. And at least 50% of South African, political and/or commercial risks can be insured against. This can reduce interest rates considerably on project finance.
https://www.ecic.co.za.
Does anyone know who the Export Credit Agency involved in the funding is?
Is it Governmental and if so is it Angolan or UK, or is it private?
Also is the Agency involved providing funding, tax credits or some form of insurance/ guarantees to the loans?
It sounds like negotiations are at an advanced stage, so hopefully not too long to wait.
Source: RNS. Don't be lazy.
>>accuracy levels associated with the BFS.
Except it's not verified by an independent Competent Person.
>>The document does exist and the figure is $3943.40.
Source: Trust Me Bro..
P.s. The document does exist and the figure is $3943.40.
SmartPunter. Absolutely no need to provide this information as both the financiers and the market are clearly happy.
PRE up 45% YTD. RBW down 15%.
Maybe you should go back to pumping ramptastic Rainbow?
I'll take the bait SP.
The Mineral Corporation independently completed the technical due diligence report which included a review of the BFS on behalf of ABSA bank in January 2024. They also reviewed all of the operating cost centre data and they concurred that the operating cost estimates as provided met the accuracy levels associated with the BFS.
As a result, ABSA Bank are part of the Longonjo lender consortium which has signed the non-binding term sheet for the project finance debt facility.
https://pensana.co.uk/wp-content/uploads/2024/01/2024-24-01-Technical-due-diligence-report-on-Longonjo.pdf
https://pensana.co.uk/wp-content/uploads/2024/02/2024-02-25-Longonjo-Financing-Final.pdf
As I say I am very happy with Pensana's progress. I'm sorry that you don't share my enthusiasm but ABSA, FSDEA, M&G etc etc do, and that is all that matters.
>>Dumbo, We have told you numerous times ~ Do your own Research
Provide one source of the OPEX of the MREC plant.
You cannot, it doesn't exist.
There is literally nothing about the feasibility of the proposed plant.
The presentation today doesn't even mention the production costs or income based on todays NdPr prices.
The document is entirely based on BS.
Sundrum:. Gakara was written off. End of.
Https://www.rainbowrareearths.com/wp-content/uploads/2023/09/Corporate-Presentation-September-2023.pdf
Page 29. Presentation dated 19 September 2023.
https://www.rainbowrareearths.com/wp-content/uploads/2023/10/RRE-2023-Annual-Report_Final.pdf
Page 8. "This resulted in an impairment review being carried out for the Gakara assets in the year ended 30 June 2023 and led to the net assets being written down to nil as at 30 June 2023."
Why were they claiming they were negotiating with the Governement and looking to restart operations in September when they'd written the assets off in June?
Lol. I've never been happier with my investment in Pensana.
In all seriousness, aren't you just a little bit concerned that the BOD of RBW not only concealed the truth about the Gakara asset for 4 months, but 3 months after writing the assets to nil, they included it in a Corporate Presentation, claiming they were engaging "with the Government to renegotiate terms of the Mining Convention and to restart operations"?
You must be mad.
>> have willingly put out a presentation which includes a verifiable lie in it.
Show me a lie?
Shall I list the laughable claims in PRE's lates presentation, starting with the projections of future NdPr price several times todays price, even though prices have been falling for 18months.
How about the talk of funding as it was a done deal, when it is nothing of the sort?
How about the omission of the word "Bridge" from the mention of the $15m loan?
Maybe because bridge loans are secured on fixed assets .. such as the mine and have a FCA definition of 12months maximum before repayment or can result in asset seizure?
Oh, dear, the PRE employees are having a tantrum today aren't they?
How about giving us a verifiable OPEX value, even something from PRE themselves would be a good enough. I know a PFS, DFS or the cancelled BFS is out of the question, because its a ... secret.
Maybe you could look at the at the PRE company presentation and tell me what the OPEX is ?
is that too much to ask?
Maybe you could throw in the NdPr price required for break even ?
Or would that highlight the the unprofitability of the project.
SmartPunter - I tell you what isn't very smart. Investing in a company where the BOD have willingly put out a presentation which includes a verifiable lie in it. I'd be very careful if I was you and perhaps focus on your own investments instead of wasting time on a company you have no shares in. #gakara
Dumbo, We have told you numerous times ~ Do your own Research
But seeing as you are having a very bad day I will give you a hint, try the Snowden Report.
As a matter of interest, when did you become aware that RBW had written off the "Worlds Richest Rare Earth Mine" ie Gakara, in July (when it happened )or October (when GB informed the Shareholders) ?