Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Theo, back to your old tricks I see. Promoting fear and uncertainty on unsubstantiated speculation. Your outline on project economics applies to every Western company in this space ~ We all know the reason why Finance is currently tight - Covid. We all know that the Chinese are holding down prices - to dissuade Investment. BUT we also know that Longonjo is still one of the best undeveloped Tier one Rare Earth deposits capable of breaking China's monopoly to provide the West with those Critical minerals so needed to support our manufacturing/transport/defense and power generation industries into the future. And if you were at all honest you would recognize that PA's Salamanca project was well and truly into construction before the Greenies blocked it.
Now answer me this ~ Why should anybody listen to your advice after your HZM fiasco, many of those that did were totally wiped out, may they RIP.
Why would a syndicate of banks put together a loan to make a margin of what, 3, 4, 5%, taking all the downside but with no upside? In reality an equity contribution by AWF makes little difference, if the project fails the banks will lose the lot. Plus the $200m capital cost is fanciful, plus the Chinese are controlling ndpr prices. Plus management have no proven record of delivering on a project of this scale. I remain convinced the company is doomed.
Started: TheGreekLizard, 19 Jun 2024 23:53
Last post: TheGreekLizard, 19 Jun 2024 23:53
“Angola and the United States are aligned on all the major points related to energy access, energy security, decarbonization, and critical minerals,” US Assistant Secretary of State for Energy Resources Geoffrey Pyatt said at an online media briefing Tuesday.
The southern African nation, one of the top crude producers on the continent, has become a focus for the US in its campaign to secure critical minerals such as copper as it competes against China. The US Export-Import Bank has earmarked billions of dollars in clean-energy projects to bolster capacity in the country that plans to sell excess electricity across the region.
Pyatt last week visited the capital, Luanda, and met with the nation’s oil and energy ministers. The officials discussed the construction of transmission and grid interconnection infrastructure needed for Angola to become “a larger energy exporter to the rest of sub-Saharan Africa,” he said, according to a transcript of the remarks.
Ex-Im closed a $900 million loan for solar farms in Angola built by US developer Sun Africa, “which is committed to using non-Chinese components,” according to Pyatt. The bank’s board referred to Congress for notification a $1.6 billion project with the same developer to construct mini-grids and clean water projects across the country.
Angola is also interested in developing downstream processing infrastructure for critical minerals, he said, adding that the US-backed Minerals Security Partnership Forum brings producers and customers to find potential financing opportunities from the US, European Union and others, to realize such projects.
https://www.bnnbloomberg.ca/us-backs-angola-plan-to-process-critical-minerals-export-power-1.2087054?fbclid=IwZXh0bgNhZW0CMTEAAR31fYhmMF9nwM7QBT4BVJUG2r1WnXZfdXxLhbbHhk1vcFZtwm-S_PRvFTU_aem_ZmFrZWR1bW15MTZieXRlcw
Started: TheGreekLizard, 19 Jun 2024 23:42
Last post: TheGreekLizard, 19 Jun 2024 23:42
The United States will support Angola, one of the largest oil producers in Africa, in its efforts to establish a critical minerals processing industry as a way to diversify from oil.
“We are fully aligned on these issues around decarbonization, energy transition, and climate, and we look forward to building on that partnership in the future,” US Assistant Secretary of State for Energy Resources Geoffrey Pyatt said during a press briefing about the U.S.-Angola Energy Security Dialogue.
Pyatt was on a visit to Angola as the U.S. and the West looked to counter the Chinese influence in many African countries rich in critical minerals.
“Angola is interested in moving up the processing value chain, a goal that fully aligns with the Biden administration’s vision and the work that my team has been leading under the Minerals Security Partnership.”
The U.S.-led Minerals Security Partnership (MSP) considers projects along the full clean energy value chain, from mining, extraction, and secondary recovery, to processing and refining, and ultimately to recycling. It is aimed at diversifying and stabilizing global supply chains and investing in those supply chains.
Angola is interested in exploring the opportunities under the MSP Forum, for Angola to be part of the dialogue between critical mineral producers and critical minerals offtakers, as well as seeking sources of funding for projects, Pyatt said.
https://oilprice.com/Latest-Energy-News/World-News/US-Supports-Angola-to-Process-Critical-Minerals.html
Started: DS22, 19 Jun 2024 05:52
Last post: DS22, 19 Jun 2024 16:55
Haha fair enough
I think everyone is holding their collective breath right now DS22 and no-one wants to jinx it by coming up with heroic projections.
Can see why the SP is where it is now -
On unconditional funding announcement?
Started: AS1971, 7 Jun 2024 09:04
Last post: AS1971, 18 Jun 2024 08:11
It's actually a pretty solid school Skunk, a lot of quality alumni!
Given your chosen career as a down ramping internet Troll AS1971 I'd say you weren't even fortunate enough to graduate from Footscray Tech. Tally Ho Boys home is more likely where you attended.
China it looks like your grandkids will be going to Footscray Tech!
Theo, as I said 100%+ over 5 years and they are still in front, without having to lodge any Tax documents.
China, you’ve lost me. A share that has lost 90% in two years is not an investment. It’s a disaster. If you bought Pensana shares to pay for your grandchildrens’ education you were totally irresponsible. Reckless even.
Last post: Fregatr, 15 Jun 2024 15:28
Could this help?
Highly experienced Luigi Bruni has been appointed Construction Manager for site team at Longonjo. Luigi brings a wealth of practical experience to the project having served as Construction Manager for 15 international mining and oil & gas projects over the past 20 years.
The containerised 350 person accommodation facilities arrived in Angola having been transported from South Africa via sea, rail and road. The multiple logistics routes for transporting containers to site have now successfully been confirmed ahead of transport of the modular processing plant.
Started: Tornadotony, 14 Jun 2024 16:26
Last post: Hogsnipe, 14 Jun 2024 21:10
Tony - re: Boeing titanium. I'd say that the fault lies more with Boeing's quality control and procurement standards, not with the off-spec titanium originally made in China. As regards fake RE from China - the elephant in the room isn't the quality or spec of the RE's - it's the hidden state subsidies, and the buried horrendous ESG costs. There is consensus that the NdPr market is rigged by China so that prices have become unrelated to normal supply/demand balance, specifically to prevent entry of new suppliers into the worldwide RE market.
IMHO, with US and EU current application of tariff sanctions to prevent large-scale dumping of EVs by China, and the above consensus, that further economic action to restore rational NdPr pricing and fair markets is imminent. One example is Australia's Treasury order to several China-linked investors to dispose of Northern Mineral (heavy REE metals) AUS shares, amounting to 10.4% of its issued share capital, on national interest grounds. Another is the work being done by US to develop a floor price-based mechanism for RE market prices, which enables China-idependent supply lines to be built.
China itself continues to be the largest consumer of NdPr for magnets, and benefits from it's own rigged market. See here for some food for thought:
https://news.metal.com/newscontent/102788751/SMM:-NdFeB-Production-to-Continue-Rising-in-2024-Outlook-for-Rare-Earth-Demand-in-Automobiles-Wind-Power-and-Home-Appliances
The figures are astonishing:
- air-conditioner manufacture - 5,483 tons of NdPr alloy, with an 11% increase in 2023 pushed by global warming and high temperatures in South China and no sign of future demand slowing.
- off-shore wind -20% increase over 2022 in installed capacity - 75GW added in 2023 alone, requiring 3,844 tons of NdPr alloy. In comparison- by 2023, the UK had approximately 28GW total installed wind capacity over 25 years, AND China will have built around 1,300GW of wind and solar capacity by the end of 2024, so beating its original plan target of 1,200 GW in 2030 by 6 years.
- EVs - China produced 36% more EVs than in 2022 - 9.587 m. For comparison the total Europe-wide sales of EVs in 2023 was about 3m. No figures are given for quantities of NdPr magnet alloy consumed by China's domestic EV production, but assuming the average of 3.7kg per vehicle, it works out at roughly 35.5kt
- elevators/escalators/lifts - produced 1.548 million units, up 5% YoY, bringing a total demand of 2,630 tons of Pr-Nd alloy.
All of these domestic production targets are set through China's 5-year plan programme of expansion, and forecasts are for a continued 20% year on year growth, except the latter which is subject to a housing recession expected to stifle demand in the next year or two.
Another example was published in zero hedge today where counterfeit titanium from China was supplied into Turkey and ended up in some Boeing dreamliner aircraft as it was identified with having corrosion. Documents from the Chinese supplier were all forged. If they are prepared to supply fake titanium to be fitted into cargo doors and heat shields near aircraft engines one has to consider the possibility how genuine Chinese rare earth products might be.
Started: Hogsnipe, 14 Jun 2024 19:54
Last post: Hogsnipe, 14 Jun 2024 19:54
Https://www.techspot.com/news/103374-europe-largest-deposit-rare-earth-metals-discovered-ancient.html
Norwegian mining company Rare Earths Norway (REN) announced that after three years of exploration, it has discovered Europe's largest proven deposit of rare earth elements southwest of Norway's capital city Oslo, near Lake Norsjø. The complex was the pipe of an active volcano around 580 million years ago. The upper part of the volcano has since eroded away, exposing the 1.2-mile-in-diameter magma-filled pipe. REN says the magma, which has solidified into carbonatite, holds rare earth elements such as neodymium and praseodymium of about 1.5M tonnes of magnet REE ores.
However, I see the deposits are at substantial depths, and the surface land is well-populated with agricultural development, so there will be much green resistance. Also, REN needs a cool ÂŁ0.75billion to launch the first phase of mining production by 2030, so development of this mine looks like it faces multiple major economic headwinds and other lead-time issues.
Started: Hogsnipe, 14 Jun 2024 19:42
Last post: Hogsnipe, 14 Jun 2024 19:42
Https://www.prnewswire.com/news-releases/energy-fuels-achieves-commercial-production-of-on-spec-separated-rare-earths-at-its-white-mesa-mill-in-utah-while-simultaneously-advancing-uranium-production-302168094.html
ENERGY FUELS (USA) Jun 10 24 shows the way for Pensana - becoming the first US refiner for decades to produce a full-spec separated magnet-quality NdPr stream from monazite feed. Phase 1 plant ready to produce 850 to 1000 tons of NdPr yearly, with commercial quantities shipping this month, using a similar process as Pensana/Longonjo.
This is on the back of Energy Fuels main business of US uranium extraction/refining operation and recent acquisitions in Bahia/Brazil and the Donald Project/Australia with supplies of REE monazite mineral sands deposits. ENERGY FUELS is now planning expansion of the Phase 1 NdPr processing plant to hit 4,000 to 6,000 tons annually after Phase 2 and 3 completion, aiming to be a "world-class" supplier of magnet-grade separated NdPr outside of China.
Like Pensana, ENERGY FUELS is depending on winning customer supply agreements, government backing, offtake agreements and direct financial support to secure Phase 2 & 3 completion.
Started: TheGreekLizard, 13 Jun 2024 12:30
Last post: SunDrum, 14 Jun 2024 08:40
AS1971 - A question you know the answer to and it has less to do with Pensana and more to do with your employer's activities. The good news is the 300,000 shares you dumped were swallowed up quickly by a buyer. A more interesting question is, who is the mystery buyer and why are they swallowing up big chunks of shares?
Simples. The market is waiting for confirmation of finance. Why don't you take your own advise and stop 'wasting your time"?
Why does the SP continue to fall with all this positivity?????
Highly experienced Luigi Bruni has been appointed Construction Manager for site team at Longonjo. Luigi brings a wealth of practical experience to the project having served as Construction Manager for 15 international mining and oil & gas projects over the past 20 years.
The containerised 350 person accommodation facilities arrived in Angola having been transported from South Africa via sea, rail and road. The multiple logistics routes for transporting containers to site have now successfully been confirmed ahead of transport of the modular processing plant.
Tim George Pensana CEO commented “Construction management and logistics are both key elements to the successful delivery of the Longonjo project. Luigi’s appointment and the successful testing of the transport logistics are important steps to pave the way for the main construction.”
The accommodation facilities have been supplied by South African company Bushtec, specialists in global turnkey deployable mining camps.
The facilities include accommodation,  dining and a communications hub - all designed to international standards providing a comfortable safe working environment for employees and contractors.
Progress continues at the site with the establishment of the contractor’s 4.3 hectare lay down area located to the south of the main construction area.
The team has also continued further enhancements to the site road network and service utilities. The primary access road has been complimented with the installation of concrete storm water drains essential to ensure continued operation during the rainy season.
Started: Tornadotony, 13 Jun 2024 16:03
Last post: Tornadotony, 13 Jun 2024 16:03
Manufacturers after Covid have been reviewing supply chains. Only a minority followed through with re-shoring as some areas have difficulty recruiting committed workers into particular factories, some jobs require lots of skills training, some have unfavourable tax policies putting up hiring costs and so forth.
A far more favourable strategy whether, materials, components or skilled manufacturing was to have a complete second supply line. Therefore if one sourcing route failed they had adequate capacity from another source. So if the main source for what they needed was China, they had supplies from Mexico and Malaysian. The advantage and relevance to Pensana is of course the offering of Angola as a source of rare earth concentrates of ores. What is key is for Pensana demonstrate where such contracts are in play and they fulfil a critical role in secondary supply chains.
Started: Tornadotony, 13 Jun 2024 14:21
Last post: Tornadotony, 13 Jun 2024 14:21
USA unemployment is starting to trend higher led by California. First rate cut looking likely for September at a point much closer to USA election. Back drop to financing gets a tail wind on that front. We await to see what happens with NdPr pricing per tonne. Once China has partly satisfied their home market they may want higher prices for export to get more foreign currency reserves.
Started: DS22, 12 Jun 2024 07:36
Last post: AS1971, 12 Jun 2024 09:23
It's never coming DS, if it was, it would have by now. SP under 20p and falling fast. The end is near unfortunately.
Buying dips now already for 2 years đź‘Ť
God knows. Just buy the dip.
Got some @ 19, now, at 22 average. Any more pressure to the downside?
Funding must be pretty close now ?
Surely to god ?
Started: TheGreekLizard, 12 Jun 2024 04:00
Last post: TheGreekLizard, 12 Jun 2024 04:00
On June 13 in Luanda, Assistant Secretary Pyatt will open the ESD with Minister of Mineral Resources, Oil and Gas, Angola Diamantino Pedro Azevedo and Minister for Energy and Water João Baptista Borges, the heads of the Angolan delegation. Their conversations will cover Angola’s energy security, energy transition, and decarbonization goals, including critical minerals, and supporting Angola’s ambitions for increased energy access and power generation.
This dialogue reflects the United States’ and Angola’s deep historical cooperation on energy issues, bolstered by $900 million in U.S. clean energy investment finalized at the U.S.-Africa Business Summit in Dallas, Texas, and builds on high-level travel to Angola by Secretary Antony Blinken, Secretary of Defense Lloyd Austin, USAID Administrator Samantha Power, Deputy Secretary of State Richard Verma, and EXIM Chair Reta Jo Lewis.
https://www.state.gov/assistant-secretary-geoffrey-r-pyatts-travel-to-germany-and-angola/
Started: Hogsnipe, 7 Jun 2024 15:30
Last post: LewisWinthorpe, 7 Jun 2024 16:53
If there was any serious risk with Pensana's immediate future, I think there should have been some defensive trading by the top 20 PRE Register holders by now. So far all I've found is a grumble in the M&G Recovery Fund 2023 performance report about their 34.6m PRE holding, to the effect that "Notable detractors included our holdings in miner Pensana".
Looking back over the last two weeks PRE trading, daily average buys = 390K shares, sells = 244K shares. Net movement is therefore + on the buy side by 146K shares (and yes, I do know someone's buy is someones else's sell, but market makers make markets). Todays PRE register shows 288.8M PRE shares issued. So the average net daily trading movement for the last two weeks amounts to one twentieth of one percent of the issued shaes - 0.05% of the action that is.
So by all means carry on with your sh**fest here and witter on about PRE doom and disaster if it helps you through the day - 99.95% of the rest of us just get on with life and wait in hope for the good news. Long-term investors - the clue is in the name.
Started: Theorist, 30 May 2024 09:32
Last post: MAA86, 7 Jun 2024 08:06
Looks like the panto has arrived in town..
Tony I’ve taken a closer look at the veg. I think it could be weed. Maybe the septuagenarian Athers has finally hit on a money making scheme!
At long last, a positive comment. Knew you would see the light.
I think the photos are great. I particularly like the one of the Community Engagement Meeting. Looks like the guy in the white hat has drifted off altogether!
Https://pensana.co.uk/longonjo-site-activities/
Lewis, look at all that foundation work. Probably more than the size of a double garage floor for the laundry. All nice and level. A local UK house builder with 4 staff would be impressed. Probably ÂŁ20,000 of concrete laid in those pictures. Great gardening picture as well with lots of veg/cereal growing. Tony
Started: TheGreekLizard, 29 May 2024 07:22
Last post: TheGreekLizard, 30 May 2024 06:21
Lewis - Your criticism is only based towards yourself in your own echo chamber , Maybe time to move on as a non holder , As you are repeating yourself daily , which is , quite Frankly nauseous to others.
We are all big boys here and understand the risk moving forward , and do not need your repetitive commentary from the sidelines , regurgitated on a daily basis , as having no financial interest with nothing constructive to offer to genuine long term holders.
Welcome and Thank You for your positivity mineral holder.
Very good
Lewis you still pour out the usual negative rubbish.
You are entitled to have an opinion, but why waste your life debating an investment you are not invested in unless you have something to gain from a fall in the SP.
One point I must take issue is your view that there is little upside in the share price.
An announcement that funding is signed off is likely to bring about a significant rise in the SP.
Any short traders are likely to get seriously burnt in the near future and hope you are one of them.
It's very obvious Lewis is a trader. He is literally on these chat boards all day, every day, commenting on a company that he isn't a shareholder of. It is the only logical explanation. (Cue an illogical explanation from Lewis, packaged up as a logical explanation).
Started: TheGreekLizard, 23 May 2024 06:58
Last post: Chinasyndrome, 24 May 2024 01:12
An interesting use of the word "We" there Theo. Does that refer to "We" as being you and your trading pals and the Chinese monopolists or "We" as the rest of humanity ? As to Lewis's previous comment, it would be much appreciated if you could inform us as to which "Board" you are referring to ? and thanks for the confirming my suspicion that somebody is indeed coordinating the selling.
If other companies follow the footsteps of Pensana we are all doomed!
The British government hopes that other companies will follow in the footsteps of the Pensana mining group, which is building Angola's first rare earth mine through one of its subsidiaries. [...]
https://www.africaintelligence.com/southern-africa-and-islands/2024/05/23/lobito-corridor-rare-earths-capture-london-s-interest%2C110229534-art?cxt=PUB&utm_source=AIA&utm_medium=email&utm_campaign=AUTO_EDIT_SOM_PROS&did=109735402
Started: Hogsnipe, 16 May 2024 16:07
Last post: LewisWinthorpe, 23 May 2024 12:30
What I want to know: who the clown is that keeps on lending you shares to short sell every month ? I seriously doubt that many long term Investors are still selling into your blatantly obvious dumps anymore. So with an average turnover of 5-6 million shares @ 2% margin each month the dumb traders must be loosing $100,000 ~ a sum that fits rather well with your Ringmaster's recent boast about making 250k per quarter.
I can have a 'buy' option without being privy to all the current information.
Anyhow, your partner in crime has appeared. Come on then lads. What are your price predictions this time? 2p, 3p?
I’ve just written the Coola update. Drilling results have been (once again) spectacular. We are now able to clearly define the ore body. Probable ndpr reserves are now twice original estimates and grade improvements are notable. We have also run a third road to site, accommodation blocks and extension leads are in place. No mention will be made of Saltend, that cunning but ultimately unsuccessful ploy to extract cash from the ATF. Finalisation of finance for Longonjo is expected shortly. So no need to wait for the next RNS, you just read it!!
Have you heard anything?
As a holder in ALK, Pensana has been on my watchlist a long time. Made an initial buy here the other day, looking forward to confirmation of export credit agency guarantee and equity finance đź‘Ť
Started: robbieishere, 18 May 2024 10:05
Last post: robbieishere, 18 May 2024 10:05
Started: Hogsnipe, 1 May 2024 23:33
Last post: Tornadotony, 16 May 2024 09:39
Https://www.mining.com/crma-rare-earth-elements-a-potential-blindspot-for-eu-policymakers-and-industry-report/#:~:text=%E2%80%9CThe%20outlook%20for%20rare%20earths
Courtesy of cadellin on rainbow rare board.
Hopefully LSE won't remove all upper-case this time - who knows?
Mumbles/Tony - re: US tariffs action on China. It's not just Ev's now subject to new tariffs - the latest US trade restrictions also includes new 25% import tariff on permanent magnets in 2026, and 25% on critical minerals (not including REs though) in 2025.
By continuing to avoid imposing tariffs on rare earth minerals, the US is obligingly signalling to China it's chronic weakness/exposure over RE supply chains.
China has previously raised its own import tariffs on US rare earth minerals for refining in China in retaliation to a wide range of US tariffs imposed by Trump.
I'd be amazed if China didn't do the same again now. It's in a very strong position to squeeze the US and EU by restricting NdPr magnet grade raw metal exports, hiking its own import tariffs for non-China mined rare earths which still have to be refined in China, preventing the export of RE refining and processing equipment/technology/IP to US and EU, and introducing punitive export embargoes on shipment of NdPr permanent magnets to the West. Only Japan, Germany, France and US have permanent magnet manufacturing and they all depend on China for the pure NdPr powders.
China can survive for many months/years even, just producing EVs and wind turbines for its internal market, but also has the non-US/EU world markets of Africa, Asia-Pacific, Middle-east, India etc. It has also stockpiled quite a lot of RE's/gold for a rainy day. It has an ongoing programme to develop factories in 3rd-party countries like Mexico which will be able to export to the US. It also is investing in many off-shored partnership/co-operative projects to build basically Chinese-sourced infrastructure projects in the tariff-imposing countries themselves - eg: the JLR battery mega-factory at Taunton.
I don't think it's going to be very long now until we'll see China mobilising its RE economic warfare a(rs)enal against the West.
300% rise in NdPr metals and magnets coming down the line??
(IMHO- DYOR- This is not investment advice, etc etc)
mumbles/tony - re: us tariffs action on china. it's not just evs now subject to new tariffs - the latest us trade restrictions also includes new 25% import tariff on permanent magnets in 2026, and 25% on critical minerals (not including res though) in 2025.
by continuing to avoid imposing tariffs on rare earth minerals, the us is obligingly signalling to china it's chronic weakness/exposure over re supply chains.
china has previously raised its own import tariffs on us rare earth minerals for refining in china in retaliation to a wide range of us tariffs imposed by trump.
i'd be amazed if china didn't do the same again now. it's in a very strong position to squeeze the us and eu by restricting ndpr magnet grade raw metal exports, hiking its own import tariffs for non-china mined rare earths which still have to be refined in china, preventing the export of re refining and processing equipment/technology/ip to us and eu, and introducing punitive export embargoes on shipment of ndpr permanent magnets to the west. only japan, germany, france and us have permanent magnet manufacturing and they all depend on china for the pure ndpr powders.
china can survive for many months/years even, just producing evs and wind turbines for its internal market, but also has the non-us/eu world markets of africa, asia-pacific, middle-east, india etc. it has also stockpiled quite a lot of re's/gold for a rainy day. it has an ongoing programme to develop factories in 3rd-party countries like mexico which will be able to export to the us. it also is investing in many off-shored partnership/co-operative projects to build basically chinese-sourced infrastructure projects in the tariff-imposing countries themselves - eg: the jlr battery mega-factory at taunton.
i don't think it's going to be very long now until we'll see china mobilising its re economic warfare ****nal against the west.
300% price rise in ndpr metals and magnets coming down the line??
(imho- dyor- this is not investment advice, etc etc)
Doesn't quite work that way Tony. Assuming an EV retails for 30K USD and the dealer is on a healthy 10% margin, then the landed cost included duty is 24.5 K, including 25% duty. Ie China landed cost is a shade under 20K, after new duty of 100%, plus a dealers reduced margin of say 5%, then retail cost is 40 K ish. China EVs apparently have margins in the region of 20%, which they will have to reduce. So they will make 10% . Realistically 100% increase in duty, translates to roughly 30% increase in the retail price. Assuming 1kg of NdPr per 100hp magnet , then the magnet cost for a basic EV won't exceed $200. Out of the total production cost.
400% tariff on Chinese EVs by USA. That is 400% on Chinese NdPr prices when you think about it.
Started: Theorist, 14 May 2024 21:48
Last post: LewisWinthorpe, 15 May 2024 08:58
Theo, you're bored and decided to throw some raw meat into fray to provoke a reaction.
So you have milked the MM's for 250k again; Look closer and you will see that it is a brand new road built alongside the old one and that extension cord connects to some of the cheapest green power available anywhere in the World.
On behalf of the Board I extend my thanks for another hard earned monthly payment of $250,000. It’s been a tough 4 weeks. We haven’t got any finance yet but an extension lead is now in place at Longonjo, we have resurfaced the access road again and drilling results at Coola have yet again been incredible. Hard life eh?!
Started: Tornadotony, 14 May 2024 07:17
Last post: LewisWinthorpe, 14 May 2024 08:02
The composite laterite sample graded 8.4% TREO (total rare earth oxide) with 80% comprising magnetic iron and manganese oxides and 10% REE (rare earth element) rich monazite.
· Magnetic and gravity separation test work has been commissioned with the target of producing a 50% TREO concentrate suitable for treatment at Longonjo.
"'These early results indicate the potential for low-cost physical beneficiation of the Sulima West ore at site, feeding the Longonjo processing plant with a high-grade rare earth concentrate."
Probably adds a penny.
Started: MAA86, 19 Apr 2024 07:14
Last post: MAA86, 19 Apr 2024 14:27
MyIPA - I actually agree with a lot of what you have said so thank you for your contribution.
Admit I have become fixated on today's RNS as I would have expected a confirmation of an extention rather than a discussion. But as you say, the timellines suggest otherwise.
Anyhow, let's hope we speak again soon with some positive news.
I assume FSDEA not financing the whole due to risk management. Why need to if you can get another bank to - then you can lend your money out to do other things. Are they not already financing some $89m powerline upgrade or something?
Agree nonbinding is toilet paper. Surely that's not what is coming. Problem is all these mining stocks is they need the financing. Until then. doesn't matter what news, it's undervalued these days compared to what it would be in the past.
Ah ok - which bit of vagueness in particular? timelines? I think today has helped with those. Agree this is not a main financing announcement, but an update on what would otherwise have been a loose end no doubt detractors would have whined about. It is good an update on the status of this was presented in a timely manner.
Qusetion: Why are you fixated on there needing to be a specific end date for an extension? 27th June 2023 stated it would be paid back as part of the main financing because the 15m is part of the whole capex - so on main financing I assume the FSDEA stumps up the remaining $65m and then ABSA stumps up the $120m (I assume both in tranches based on whatever agreed development timelines). So this main financing, as the timeline is uncertain for completion, means it couldn't have been set in stone anywhere. Initially 8 months. then 9 1/2 months, now what, 11 months end of May? ABSA Bank is not in Angola and is separate, so probably even more due dilligence required than if it was using a bank in Angola.
Anyway, spent enough time thinking about this and how it affects my investment. Will await finalisation of main financing.
The FSDEA, bluntly, is financing the $15m of works currently underway - which is an improvement in the infrastrcuture of Angola. It's a win/win. It's also hard to believe the FSDEA would let this project fail by not stepping in if needed.
I just find it hard to believe that the FSDEA (Angola Sovereign Wealth Fund) puts in $80m and that ABSA Bank (Amalgamated Banks of South Africa) would never finance the remaining (reduced) capex requirement of $120m.
Difficult for me to determine a percent as the company has been so vague. At the moment it is a high possibility as today's RNS does not confirm an extension or main finance.
MAA86 - what % chance are you attributing to that scenario? For me it is much less than 1%.
The financing is just the $120m, right, as $80m (inc $15m) already comes from the FSDEA:
"ABSA Bank has been mandated to arrange a US$120 million project debt facility which together with the US$80 million funding will fund the mine and processing facilities into production."
Appreciate it's been going on for 9 months, however this isn't a back of the envelope agreement it's a serious one with likely many layers of governance, legals, politics and so on.
Today's RNS, for me, solidifies the timeline of this financing to within 7-8 weeks (period from 28th Feb-19th April), likely much less than that because it is rare that a 2nd extension is longer than the first extension.
So that puts us what, between say next week and the end of May for the finalising (as stated in todays RNS).
Almost there.
Started: Theorist, 15 Apr 2024 20:12
Last post: PRGgc, 19 Apr 2024 08:10
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 !!!
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.
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.
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.
You've gone from mentioning a price of 15p a few weeks ago to 5p today. Sounds like your looking for a cheaper entry..