The article is mostly positive but the Journo probably felt they needed to point out the risks to give it balance. Over 50 comments online so far, a mix of opinions, some very knowledgable, all showing the growing interest in Pensana and rare earths generally. I've topped up today.
“The UK and EU understand you cannot build a green economy on unsustainable raw materials. European companies do not want to depend on one source for 90 per cent of their supply,” he said, adding that he believed Pensana could capture 5-7 per cent of the market in wind turbines before moving into vehicles.
Pensana is UK listed and worth around £200m but Mr Atherley said raising the money through bonds should be straightforward.
Innovate UK, a government agency, awarded funding in November to Less Common Metals, a rare earth alloys producer, to conduct a feasibility study into establishing a fully integrated supply chain for rare earth permanent magnet production in the UK.
LCM, based in Ellesmere Port near Liverpool and the only rare earth magnet alloy producer in Europe, is also moving into metal production, plugging a gap in the magnet supply chain.
Hull is bidding for free port status, which would reduce taxes and import and export costs. But Mr Atherley said he believed the oxides would be able to enter the EU tariff free under the post-Brexit trade deal because of the processing involved.
The EU is setting up a European Raw Materials Alliance to establish a sustainable supply and processing capacity of rare earths. It is using €3bn of the EU post-Covid recovery fund for the initiative’s development.
Furthermore, UK Gov has made enormous pledges on ceasing sales of ICE vehicles and backing Dogger Bank windfarm. Neither of these are possible without NdPr magnets so why on earth would they block this application?
An open cast Uranium mine in Spain is quite different to a production facility in an industrial zone designated for exactly this purpose, add in the job creation and I think UK Gov will back this all the way.
£2 near term wouldn’t surprise me, one characteristic of this share is that when it rises it seems to jump quickly and hold the gain rather than bounce around. It floated up to £1.20 effortlessly but has since pulled back to 90s entirely due IMO to uncertainty from ASX shareholders, I expect that to pass in due course with the delisting. The big question for me is what price will the shares be in 3 years time.
mayorhumdinger, we are waiting on a major update from the company including results of the Longonjo BFS, promised by end of Jan. It could come any day now, that said the ASX delisting wasn't mentioned when that promise was made so it's possible it could be delayed by a couple of weeks. Either way it's very close and should include details on funding for the various parts of the project.
gilo, we covered this a bit on Friday, increasing demand from EVs and offshore wind are two of the main price drivers for NdPr, but not the only ones. Chinese, US and European leaders are squabbling over REE supplies, the share prices of future and current producers are rising (RBW and PRE have 3-bagged for me in under a year). Personally I think the sector still has a very long way to go, but, we all do our own research and it's quite understandable that we might draw different conclusions from the same information.
Q, What are the onsite assay facilities like please? Can ECR do their own core analysis on site?
A, Craig talked about this in an interview a few weeks ago, the answer is yes they can analyse the cores for their own guidance but would still need a lab to confirm the numbers before they can release them to market. He also mentioned that they’re able to cut the cores down and reduce transport costs to the lab which are significant. A CEO who’s not afraid to find creative solutions and do things his way is one of the key reasons I’m heavily invested here.
The interview is out there somewhere but there’s so many I don’t have to search it out for you!