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Pensana  (PRE – Std List)


Funding for a Sustainable  Rare Earth Supply Chain


Pensana PLC | Magnet Metal | Rare Earths | NdPr


Pensana (PRE) is the mine to magnets to machinery company for the electrification of motive power. Pensana own Longonjo in Angola which is one of the world’s largest undeveloped rare earth mines. It is one of the few mines outside of China,  with a JORC Reserve of more than 100,000 tonnes of  neodymium and praseodymium oxide (NdPr), which is used in making ultra strong magnets. At full production Longonjo will produce around 5% of world production of NdPr in the form of an exported mixed rare earth carbonate. These REE (Rare Earth Elements) are an essential  for the energy transition to make permanent magnets for electric vehicle motors and wind turbines.


Longonjo Debt Finance

The  company and project are substantially de-risked, after announcing the indicative terms of its financing package. The proposed project finance debt facility is for up to $156m split between  the lender participants into a subsidiary. The investment is being made at the asset level and not directly in  PRE  which will own approximately 65% of the funded project. The  funding will  progress the low-cost mine to production and beyond, with a flotation circuit and refinery over the next five to seven years.  PRE is also in advanced discussions with the existing  shareholders,  led by the  Angola Sovereign Wealth Fund (FSDEA), to finalise a non-dilutive $80m equity component of the financing package into the subsidiary.


There have been significant civil works  in preparation for mining  already with the access road to the Longonjo railway station for rail access to the port of Lobito.  Shipping  will be the primary route for inbound materials during construction and later for reagent import and the export of Mixed Rare Earth Carbonate in containers. Additionally, progress is being made on the infrastructure for the 350-person modular camp for the miners with an underground water supply and effluent disposal system installed. These development activities are being funded by a further $15m bridging loan from the Angolan Sovereign Wealth Fund.


Key Points

  • Production Funding package in place at asset level  de-risks PRE  shareholders .
  • Pensana will own approximately 65%of one of the world’s largest undeveloped rare earth mines, and one of only three with a JORC Reserve greater than 100,000 tonnes of NdPr.
  • At full production Longonjo will produce 5% of world production of NdPr in the form of an exported mixed rare earth carbonate.
  • PRE is in advanced discussions with several parties for the offtake of the highly marketable, radionuclide-free mixed rare earth carbonate (MREC) and has recently received product approval from one of its potential customers and expects to sign up to 100% of the production.


Saltend Separation Facility

Subject to financing Pensana will  build   a  plug-and-play rare-earth separation facility at Saltend Chemicals Park, where there is a  cluster of chemicals and renewable energy businesses in the Humber Freeport. The facility will create over 500 jobs during construction and over 125 direct jobs once in production. The rare-earth separation facility  is being designed to produce cir. 12,500 tonnes per annum of rare earth products, of which 4,500 tonnes NdPr. The engineering design has been completed, the site cleared, the preparatory infrastructure works finalized, and the early-works contractors identified. The Minister of State at the Department for Business and Trade acknowledge the  Saltend project will be  important in supporting the UK automotive industry which employs 780,000 people and has offered a Grant of up to £4m towards the funding required.

The project is ready to commence construction once the finance has been arranged. The financings are independent from Longonjo with no financier in common between the two projects. Its seeking  $250m to build the facility and negotiations are underway .

Rare Earth Elements  Market  

Rare earth element, or REE, prices are forecast to be  strong over the coming years, as demand is set increase faster than the supply. In 2021, the rare earth metals market was worth around $7,000m, which is projected to touch $15,500m by 2030, growing at a 9.1% CAGR from 2021 to 2030. In the coming years, Europe is predicted to become the second-fastest-growing market after APAC. China currently dominates mine production and processing of REES and has a significant global pricing influence  of this strategically import mineral.



  • REE Price set for strong growth as the electrification of motive power through EVs and Wind Turbines is the biggest energy transition in history and is forecast to generate demand of 9.1% CAGR to 2030.
  • Pensana is fully permitted  to build a  downstream separation facility at Saltend, one of the few in Europe, which adds considerable value.
  • The facility is designed to  produce   12,500 tonnes per annum of rare earth products, of which 4,500 tonnes is NdPr
  • The engineering design is complete, the site cleared, and the preparatory infrastructure works finalised. The Project is ready to commence production once financed.
  • The Department for Business and Trade are supporting development with a $4m grant.
  • Funding negotiations are underway for up to $250m debt/ equity package following a similar startegy as the mine, by investing at asset/ subsidiary level.



The indicative debt  funding for the mine is set to  trigger a sequence of value adding events as it moves nearer to becoming  significant and strategically important mining  and  separation operation. PRE is a  de-risked project developer and helped by the  rising demand and prices for REE  and likely to be strongly re-rated.




Data Bank

List Std   Comment
Price 35p (34p- 36p)  
Mkt Cap £98.2m  
Share in Issue 285.18  
Warrants 3.86m  
Net Cash (Debt) Cir. $5m  
Next Results Interims to Dec RNS March
Last Results Finals to June  
Last Funding 27.5p – $15m – April 2023 M&G &G Investment Management and the Angolan Sovereign Wealth Fund
Highest Salary £315,000  
IPO July 2020 LSE Admission
Shareholders    See Below  


Chaiman  Interview


Interview: Paul Atherley, Chairman Pensana Rare Earths – Zaks Traders Cafe




Key Executive Directors

Paul Atherley, Chairman is a highly experienced senior resources executive with wide ranging international and capital markets experience and based in London. He graduated as mining engineer from Imperial College London and has held a few senior executive and board positions.


Tim Goerge, CEO,   holds an honours degree in Minerals Engineering from Leeds University and leverages over 35 years of broad experience across the mining, engineering construction and infrastructure sectors, largely in Africa.



Author Jon lev