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Https://markets.ft.com/data/bonds/tearsheet/charts?s=US2YT

TGL

The company has also been very clear about all the risks and that no funding source has made any commitments at the current time.

The only positive is that MG and AWF bought a greater share of the company and kept things going this quarter which was absolutely vital otherwise a death spiral to suspension was the alternative. At some point they will bear huge pressure on the Board and I suspect it is to sell the company as the timing to repeat what HZM achieved is probably not possible in the current market. The company is running on hope. At some point they will need to salvage what they can. I sense the Board have received numerous takeover offers, but the insiders wanted a better deal on their stake. The time is arriving to have a percentage of something rather than nothing at all. Any takeover would give a better outcome to AWF and MG than to PI holders is just my opinion.

TGL

The problem on the debt ceiling was what happens afterwards if they raise and agree by $1 trillion. The money to be spent by USA treasury comes out of bank reserve funding that companies like Pensana want to borrow from. Let us assume the Strategic has just kicked the can down the road for awhile. The company again stills runs out of money next month unless they turn spending taps off. Finally a light green bond rating won't help a company that does not earn any revenue. All the bonds outbound of late of which 1/3 are in the health sector are to companies that have incoming revenue on a guaranteed market demand supported by demographics.

TGL

USA is thinking along those lines. UK is probably relying on a deal with Australia. I am not seriously suggesting somebody orders 11,000 metric tonnes from a Chinese miner and finds most of it is fake ore.

I still see Pensana with a major problem of not having the strategic partner going ahead with a deal, the bond market for Pensana risk grade being shut and relying on a weak banking sector that is bleeding liquidity at this time. Other than moth balling activities and sitting it out, I am not sure what else Pensana can do. Once the debt ceiling is agreed a trillion or so dollars is coming out of bank reserves to hit lending harder. Pensana is not the only company affected by all this.

The situation Pensana is in, has similarities to UK landlords under Gove's new laws. There is no incentive to invest. On top of that Pensana could borrow $500M to buy Chinese NdPr say 11,000 tonnes and sell it back to Western users over 2 years at a profit that would repay the principle debt and say 12% interest without building anything and probably have $80M in the bank afterwards. I wonder if the strategic sees that being a better option. If the price recovered back to $140,000 a tonne for all of year 2 they would have enough money to pay for the entire development of the LJ mine.

Of course we are in the artificial intelligence space I forgot all about the agriculture applications of the technology!. Time to buy this baby big time.

With a name like Nanoco can some bright spark say how we fit in the artificial intelligence space. Just having a heading like above might help push the share price up 50p. Where are the BS artists when you need them!

Real tory thinking is that global temperatures will be so high in a few years time that all the roads will melt where above water. Most of southern England except the South downs and a few hilly areas will be water world and Hull would have been submerged into the North Sea. The above ground islands of former UK will be known as the tory archipelago with a return of serfdom.

AAZ has been in line with CEY all year. CEY currently leading the way down and AAZ to align with them. CEY divi less generous than AAZ this year. Expecting AAZ to shift to 100-105p sometime tomorrow.

Eventually, Western Governments will need to introduce tariffs on any item sourcing Chinese rare earths. China is taking prices so low it is equivalent of charging $20 a barrel for oil. China operates a red card system in that companies have all their losses and a fixed profit restored under a red card payment in January/February prior to New Year celebrations. It coincides on the day red card financial gifts are celebrated mainly grandparents to grandchildren. Companies obtain their red card for doing what the Chinese premier orders them to do. The list of red cards given to industry is published in their National newspaper and it is like an honorary award as the sacrificial losses are all part of fulfilling the will of the Chinese State. In some respects its a special form of QE with no worries of ever going bankrupt. The red card system was heavily abused on steel exports to harm Western steel producers. It is a wash rinse and repeat cycle. The West is now in a full blown economic war and it is now highly visible in the rare earth theatre. Of course Jeremy Hunt needs to re-evaluate his own reasoning on how UK industry can deal with this. Thus far he has been against any supportive action and is probably waiting for the inevitable high grading and depletion of resources to occur in China that may now have Vietnam resource support.

The concern about Treasuries is what happens after they agree the debt ceiling as they produce yet more Treasury bills for somebody else to buy.

Https://www.bbc.co.uk/news/business-63741041

Hopefully they go solar with diesel generator as an emergency back up.

USA rate hike in June instead of a pause being suggested. Gold edges down and CEY following. $1960 gold probably gives CEY at 103p. Gold options expiry date is 25th May and coincides with delays or whatever of USA debt ceiling talks.

SP

Greenwich reported a 13% drop in April. How much was the funding for the highest grading for debt (where there is no issues). If you take Meta, Amazon, Google and say gold mining companies, Glencore and the oil sector, how much is going on grade C and lower rating corporate bonds. The more risky stock are not accessing funds and quite a few mornings we have delisted AIM stocks not getting bonds. (Thanks for posting about the Greenwich site). Tony

Pattern continues, Gold miner ETFs and indexes fall, gold price eases and 2 year USA Treasuries continue to rise.

On Bloomberg they have reported from several interviews this week just how dead the commercial bond market is.

There must be crisis phone calls going on between AWF, MG, Pensana and the Angola government. The only way out for Pensana is to accept a takeover offer from another company that can take the project forward either in Europe or USA as the UK has a big white flag flying as all other resources are donated to help Ukraine and they quietly abandon everything else. I can see a deal with sweeteners, but not for PI holders. Lady Northover was probably not a good investment for PRE in the end as she appeared to be drowned in the treacle of political incompetence as depicted so well by HS2.

If I appear negative about Pensana, it has a lot to do with the utter incompetence of the UK Government on just about everything. London was a great financial centre years ago and this Government has managed to screw that up as well.

All fair comments made. On a 5 minute chart you can see the heavy trades going in for gold to fall a few dollars. This pull back was strongly hinted to happen in a lot of quarters. It will be interesting to see what happens next around the $1960 mark. This is so typical to happen in May.

First support line on futures hit at 1980. Next support line is at 1968 followed by 1946, 1926 ,1902, 1873 and finally 1824.

Kitco analyst suggesting a hold around 1926-1930 area and Gold eagle article expecting 1960's to hold short term and then breakdown lower. Centamin first support at 103p area.

Miner ETFs and gold now facing selling pressure.