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Indeed, once the relevant milestones have been achieved, can see CTL being incredibly attractive to various consumers of lithium due to its green credentials. RockTechs MOU with Mercedes is exactly the kind of thing CTL will be able to achieve. Be great to get such an MOU in place early doors before full commercial terms are nailed down, will do wonders for company credibility and investor confidence alike.
Great news this morning, clearly things are moving quickly here. To see true SP value, its now key that the marketing of the company is ratcheted up in the right circles. Once Cannacord have produced/released a research note, we should expect them to then begin the push around the investor community. CTL still clearly flying very much below the radar at the moment.
Hi Nigel, why do you think the RNS was overly complex? You do understand the requirements of the OGA when applied to small on shore operators don't you?
The problem is Vince can't monetise anything! Just a constant flow of additional drilling and resource growth, without a sniff of any JV/financing action to actually get any of it out of the ground. Numerous capital raises with basically nothing to show for it. IRR are far enough down the track to be able to start monetising.....lets see it happen and maybe the SP will reflect.
Hi Mumbles, completely understand your concerns, have seen similar situations across numerous projects, and not just in Africa, where through numerous actions, funding was the point at which it crumbled. In fact I am invested in one or two where this is the case as we speak. PRE is an interesting proposition and somewhat differentiated from other projects to some degree by the significant involvement of both of its home nations. The Angolan Sov Wealth fund being a major shareholder, and the UK govt suggesting that due to the location of its chosen processing plant, further incentives could be available. The RE space is only to going to become further politicised as time progresses, not least due to expected actions by China around its own production and exports. Although I have no specific knowledge, I would not be surprised one bit if there is news on funding in the coming weeks and it includes a participation pf some kind from UK plc, be that grant monies, underwritten loans or even an equity stake. The UK and Angola have been very clear that they intend to expand their existing relationship, particularly with respect to trade and so we see PRE sitting in the right position to be a beneficiary of both political policy and economic demand for its product. PA has suggested in recent RNS releases that financing 'approaches' have been made from a variety of suitors. Now that the BP is out there, I am sure that these suitors will be working through the numbers to see if any participation on their part works economically for THEM! That is the key to the financing arrangements and that is where projects so often fall down. Personally, I think we will see outline funding announcements in the coming weeks that will put a framework around the company's economics.
D
Hi Robbie, you are correct, not a NOMAD by name, but even though PRE are standard list, their RNS’s still have to be signed off by legal and compliance. Now that can be internal in standard list companies, but same rigour applies. In terms of placing there are many options available. Prospectus only required if placing new ordinary shares over certain % of issued stocks. But there are many other ways to effectively issue equity without one. CLNs bring the most common.
Hi Bwana, I agree. In fact my suspicion is that dilution will be restricted to just the one subscriber...the Angolan fund. The metrics in the BP are compelling, there is no doubt about it. The problem with any of these small cap non revenue generating entities is that they are prone to traders/investors with short term time horizons and the 'sell on news' theme is therefore disappointingly common. But, conversely, a market must be made for any progress in SP to be allowed. Its interesting how they have actually referred to their competitor output levels and even market cap within their RNS. The NOMAD must be very comfortable with that as it allows investors to draw comparative value conclusions using info endorsed by the company. This tells us that there is confidence within Pensana that what they have is indeed comparable and could be valued accordingly. Otherwise, the NOMAD would not have agreed to the RNS wording.
Well that is impressive! IRR of 51%, NPV8 of $2.3bn (before any growth from additional feedstock) and a cash based return period of just 2 years! These are impressive metrics by any standards. Funding appears in train. Sounds like minimal dilution, with the Angolan sovereign fund upping its stake....great news, large holdings in long term investors hands. I would not be surprised to see some of the required capex coming from UK gov in form of grants/support. Congrats all at Pensana.
I believe that the local authority set its internal decision target date for some time next week? Lets hope that they are on track and that piece of the jigsaw slots nicely into place. We should then see some movement with regard to the issue of the business plan and as such the project finance that it will incorporate. That's when we start to be able to visualise how this asset is planned to be monetised. Certainly no let up in rare earth demand of late....
Duder
Hi Mike, agreed. SP has shown good stability over recent weeks. Very much hoping for some news before the end of the month, particularly around the Saltend planning app. Be great to then hear from Paul subsequent to that news.
D
Its great to see the positive momentum back with the SP. We are about to hit a news rich period, which will help to underpin the project and create visibility around value. Its great to see UK companies such as Pensana at the forefront of what should be a global green revolution. There was also a section on Radio 4 this morning where the desire for Scotland to also increase its standing in the green environment was discussed. Its clear that the transition to green energy has to happen, its no longer a 'nice to have' and that wave of conviction is also building momentum. There will be a surge of technological advances as economies move forward with their transition, all of which PRE's product will complement. Who was it who said something about necessity and invention.....?
Combination of new tax year and the tide of demand around rare earth materials increasing almost by the day! There seems to be at least an article per day at the moment and all from trusted sources/news services. Its rare to be in a company which is so perfectly positioned both commercially and sentimentally at such an early stage in its development. I never talk about SP, but economically the asset potential with Pensana is enormous. And the timescale for crystalising value is comparatively short and will, in my opinion, be accelerated further by increased UK gov participation in one form or another.
Duder
Hi Freedom.....and thats the million dollar question! Its the economics that will be incorporated within the business plan that will provide the answer. Initial studies have indicated that it is indeed cost effective and there have been a number of significant developments since, not least the size of the resource, the increase in both rare earth demand and subsequent prices, plus the potential addition of a UK based processing plant to move Pensana further through the supply chain, enjoying all of the synergies along the way! Combine this with potential backing from UK plc and I believe the economics will be compelling. Newsflow over coming months set to be strong, with Saltend processing plant decision, business plan incorporating BFS and further resource updates all due.
D
There does seem to be an element of profit taking. Not unexpected given performance of late, plus the tax planning aspects of using CGT allowances before the 5th April. A new tax year bounce next week perhaps?
Still significant newsflow awaited.....
Hi Skew, I believe that the business plan will be released incorporating both of the other points. The feasibility study has been underway for some time and I would expect to see the results in the business plan as they will underpin the economics. The Saltend application is the piece that came from left field and the business plan (or BFS as it was formerly termed when it was only to include project economics) has been delayed in order to factor that into the mix. If the Saltend option hadnt arisen, I believe the BFS/BP would already be out there. There is nothing sinister at play here in my view, simply an unexpected opportunity that deserves investigation/incorporation into the project economics.
D
Robbie, this is indeed positive news. Another obstacle removed.
This project is going to go ahead, no doubt. There is now too much governmental rhetoric around it and the UK's place in the Green revolution for it not to. The one remaining piece of the puzzle before true value can be ascertained is the business plan and project economics. Once they are released, true potential value can be assigned and a risk based valuation calculated. For me, at this stage, everything else is just noise....