Member Info for Tornadotony

Dumbpunter

There is some thorium and uranium in the Angola mining asset that needs processing. I suspect Pensana MREC process has a methodology to deal with thorium and uranium separation before anything goes to Saltend. I believe one Canadian miner found a similar process to separate those two radioactive elements and so Pensana is not alone in coming up with innovations to deal with the issue. Some other markets may also want the material as fuel for their nuclear reactors, but that may need more of a work up after everything gets built. Another factor is the Angola resource is so large that they can mine plan around where radioactivity is the highest and not disturb it and still have decades supply of feed to Saltend.

The Pensana sulphate MREC did give a cost figure in the business plan and it was lower by around 10% from other rare earth miners (excluding gypsum stacks of rainbow rare earths), however its best to assume they end up the same as the other rare earth miners in a similar position to themselves. Pensana MREC also has a process, so they claim, to take it up 33% ratio apparently so there is is one additional step they need to do, however most of the profit is made at the Saltend facility which Rainbow does not have in its plans. I dare say Saltend may be able to take some of Rainbow's feedstock if the two companies want to work together especially if the South Africa source saves Pensana monies and Rainbow got more monies than if they sold it to Chinese processors. Tony

The comments were in Troajan's video link with SP Angel.

I contacted SP Angel the rainbow brokers and i am glad they have commented on Burundi in saying George is sorting things out and as we have said already here SA is where the vast proportion of value is for this company.

Astro,

The Chinese decided to hammer the other commodities except gold, when they said they were curbing future contract buying as the prices were to high (Bloomberg this morning) and hence Poly and Fres that sell a fair amount of non-gold mining product got more of a spanking. Tony

Mrtibbles

I take great pleasure in knowing that I did not vote for the current idiots in power. Sadly the choice available back in 2019 was rather poor. I also was not amongst those in need of healthcare in 2016 and actively using the NHS to go out and vote for Brexit that has resulted in a massive shortage of NHS and nursing home staff. Sadly stupid people do harm to themselves and everyone else around them. Intelligent people help others where it has benefit to themselves as well and they are neither helpless or acting as bandits in what they do.

It looks as if CEY has held 110p today. June has only 10 trading days left and a bottom goes in at some point. I should also comment whatever gets written on here on share performance is only opinion and everybody should do their own research. It does help sharing opinions if the aim is trying to be intelligent.

All the best (I am in an NHS hospital on Friday but hope to be in action again by Monday) Tony

https://www.miningweekly.com/article/pensana-welcomes-roskills-acknowledgment-2021-06-14

The close last night was on the top rail of future projected prices before P3 results in October. Top resistance rail now reduced to 172p. Support line rail increases to 116p. Completion date now favours the projected 1 October with target range of 140p-146p. I have not bought or sold into the recent news myself.

Mr tibbles and other readers,

Centamin and gold are doing what they have done quite frequently in the month of June. In fact if we put in a low this month the probability from fundamentals and charts is for a mid-summer rally. So any chart perspective on the down turn is all within 4 weeks or so and makes no difference to LTH plays.

As for the delay on opening up it may deliver the following; a lower sterling rate which helps lift CEY, greater immunity apparently in the population for the winter so a third vaccine jab might not be needed, acceleration of Covid-19 therapies entering the market from October that work against all Covid-19 variants and keep people out of hospital. There is a lot to be hopeful for in the coming months. In the meantime some of us who sold stock at 119-122p will be buying Centamin in the coming weeks and are part of the comeback story when Centamin moves back up again. Finally optimists have a much higher life expectancy than pessimists. So I for one look at the positives and hope for a healthy innings.

Chart is not looking good for Centamin at this time.

Meant to say Dumbpunter

To Dumbpartner

As in an earlier RNS from the company, it costs $1279 per tonne to build up Burundi stock. They were producing with a new process from 1 April to 30 June somewhere around 2,500 tonnes. If they achieved what they were planning to do that is $3.2M expenditure which is above the November 2020 placing price. However lets assume it was just a 1,000 tonnes and scale up was still in progress that would still be $1.28M expended from the previous November placing and considering other exploratory costs and South Africa costs stack testing costs and usual RBW staff costs, I still feel they can not continue Burundi operations as the short term cash flow won't be there to carry on doing it. So like it or not somebody has to make up their mind on what they now need to do. Tony

I have 100% positive trading record on HZM and have never made a losing trade here. May the force of my luck continue on HZM.

Thanks wasa. In effect it is imminent which is any day now until around 23rd of July to tidy up the final pieces. If they want to give CHEAP shares I will back up the truck for them to fill it up. Go on market maker make my day. However its more likely to rally back up soon.

The company can not really continue Burundi operations into July without earning monies from exporting. They are either allowed to export to cover costs or stop activity in Burundi. Whatever the problem, they have to agree to do something fairly soon.

We have 12 trading days to the deadline. The company in the past year or so has alerted the market within 15 tradings days of a deadline not being met. So either two events are likely to happen, especially with no update RNS in the next 2 days. Option 1 is the finance coming together as planned and construction happens in H2. Option 2 the delay is trivial into early July although an RNS to say imminent would be helpful. I thinks the bankers will want to earn money and get this project started. Nothing else to be gained by more delay.

Nearing the end of H1. Second allocation bought.

SSGA based in USA has bought 61,777 shares in Pensana on 3 June. Hopefully a few others may soon follow. Source FT update on Pensana.

If that is the play it goes up on a breakout tomorrow.

Charles,
(Typo corrected)
The market is so large for just windmill power generation that some fields may well have the ferrite magnets. There is something to be said for having both types. The future price projections of rare elements were considered to be 5-9% per annum by an independent report submitted to Pensana. However lets assume these ferrite magnets are just as easy to maintain and their market share prevents zero increase in rare earth markets from 2025. This does not affect the Pensana pay back on loans in their summary business plans. Pensana market penetration was 5% target and the market for rare earth markets was still likely to be near 40% of the total at least and the Pensana magnets would be recyclable. It would be useful to know and we ask the company if they looked into all of this. The concept of ferrite magnets has been in press since 2013 so it not new design or knowledge. In 2019 prototypes were built so Pensana should indeed know all about it.
Always interesting to see the alternatives and where they are at and what the advantages and disadvantages are. I wonder what the difference in noise would be. Tony

Dumbpunter

Read what GB said in the earlier RNS not to consider the stacks as a reserve or resource as it awaits further analysis. For investment purposes a company is only valued at a third of the inferred unconfirmed resource at best. This is the usual practice for miners on inferred to reserve reclassification. From resource to reserves the valuation moves from 1/3 to say 50%. This is why the share is not valued at 60p or whatever at present. With Burundi going full whack the broker had a target of 30p. George is also probably quoting profits before tax. The company is likely to pay debts over two years at $40M each after financing costs so it does have a future journey to build up value. What we agree on is that 14p is under valued and that in the ground/stack price alone should be 19p. So it is a buy at this level imop taking into account where the company is at this time. A conversion of inferred to resource puts the stock price up 9p on SA alone. Tony