THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

Pensana Plc

("Pensana" or the "Company")

 

UPDATE ON CONSTRUCTION ACTIVITIES AT LONGONJO

 

Pensana is pleased to provide the following update on activities at the Longonjo minesite ahead of main construction.

 

As previously announced the early-stage development activities are being funded by a US$15 million bridging loan provided by FSDEA (the Angolan Sovereign Wealth Fund) ahead of the main finance. 

 

The significant activities have been the civil works for the camp, the rehabilitation of the access road to the Longonjo railway station and the agricultural demonstration plots under the Livelihood Restoration Programme.

 

The 4.5 kilometre road linking the site to the Benguela railway line has been upgraded. The enhanced road features include an improved roadbed substructure, a redefined road profile and rapid drainage systems.

 

Serving as the primary route for inbound materials during construction and later for reagent import and the export of Mixed Rare Earth Carbonate in containers, the road connects the mine to the Longonjo station for rail access to the port of Lobito for shipping.

 

The Benguela railway line is part of the Lobito corridor undergoing a US$550 million investment from the US Government. The investment aims to secure critical minerals across central Africa to be exported via the port of Lobito and is anticipated to become one of Africa's most important rail transport systems.

 

 Several kilometres of overhead powerlines, together with an underground water supply and effluent disposal system have been installed ahead of the arrival of the 350-person modular camp, which has been assembled at Johannesburg and is being relocated to site. The camp will be the primary operations base for the construction team.

 

 Agricultural demonstration plots have been established by South African agriculture consultants, Vuna Agri, as part of the Livelihood Restoration Programme. The demonstration plots have an area of nine hectares and have now successfully completed their first full season.  The Livelihood Restoration Programme was established to provide replacement land for any displaced farmers and additionally to provide a training base for those persons affected by the project to develop their agricultural skill sets. 

 

 

The objective is to help local growers and farmers create healthy and sustainable agro-ecosystems, boosting household income in nearby communities, whilst enhancing overall food security. This ongoing programme is being conducted in collaboration with local universities with a view to continually improving farming practices.

 

Tim George CEO commented: "We now have over 50 engineering contractors and Longonjo staff working on site in preparation for the commencement of main construction. There has been a very positive reaction to the activities on site amongst the local community, in particular with the creation of well-paid jobs and the successful implementation of the first phase of the livelihood restoration programme.

 

We have a strong team supporting the main construction which is being manged by MCC a leading project management team with a track record of delivering projects across Africa, including Angola.  ADP, the main contractor is an African minerals specialist in the detailed design, construction and commissioning of modular mineral processing plants with extensive development experience in Angola."

 

About Longonjo

 

The electrification of motive power through EVs and Wind Turbines is the biggest energy transition in history and is forecast to generate a demand growth for magnet metal NdPr of 7.5% CAGR over the next decade.

 

Pensana owns one of the world's largest undeveloped rare earth mines, and one of only three with a JORC Reserve >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.

 

The upfront capital cost of US$200 million for the fully permitted mine and processing facilities is amongst the lowest amongst its peers making Pensana highly competitive.

 

Pensana also has a fully permitted US$250 million downstream separation facility at the Saltend Chemicals Park in the Humber Freeport.

 

Financing for each of the Longonjo and Saltend projects is currently underway.

 

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley, Chairman.

 

- ENDS -

 

 

For further information, please contact:

 

Shareholder/analyst enquiries:

Pensana Plc 

Paul Atherley, Chairman IR@pensana.co.uk 

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer

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Pensana Plc

Reports on Payments to Governments for FY 2023

Pensana Plc (LSE: PRE) (“Pensana” or “the Company”) publishes the Company’s Payments to Governments Report for the year ended 30 June 2023 (“the Year” or “FY2023”) (the “Report”).

 

Basis of preparation

This Report, which provides an overview of the payments to governments made by Pensana and its subsidiaries, is required under the United Kingdom’s (“UK”) Report on Payments to Governments Regulations 2014 and its amendment in December 2015 (“the Regulations”). This Report is also intended to satisfy the requirements of the Disclosure and Transparency Rules of the Financial Conduct Authority in the UK.

 

This report is also available on the Company’s website at: www.pensana.co.uk.

Activities

Payments made by Pensana to governments arising from activities involving the exploration, prospection, discovery, development and extraction of minerals (extractive activities) across its projects are to be disclosed in this report.

 

Summary of Payments (US$)1

 

 

 

 

 

 

 

Country

Corporate taxes

Mining & other licence fees

Royalties

Infrastructure improvements

Other

Total

Australia

-

-

-

-

-

-

Angola2

-

195,812

-

-

-

195,812

UK

-

-

-

-

-

-

 

1 Payments are shown in US$ equivalent amounts for the financial year ending 30 June 2023 using the average FX rate for the year

2 Payments shown relate to the Longonjo Project and Coola Exploration Project

 

 

Government definition

Government includes any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a government.

 

Payments

Payments to governments are required to be reported in the following categories:

 

Taxes

These are any taxes paid by Pensana on its income and profits in accordance with legislation enacted in the applicable jurisdiction. Payments are reported net of refunds. Value added tax, personal income taxes, social taxes, property taxes are excluded.

Royalties

Royalties are not yet applicable as the projects are still in exploration/development.

 

Fees

These are any fees and other sums paid as consideration for acquiring a licence for gaining access to an area where extractive activities are performed. Administrative government fees that are not specifically related to the extractive sector are excluded.

 

Infrastructure improvements

Payments in kind in the form of infrastructure expenditure other than in circumstances where the infrastructure is expected to be primarily dedicated to operational activities throughout its useful life. The Regulations do not require reporting social or community payments, such as payments to build a hospital or a school.

Other types of payments

 

Other types of payments that are required to be disclosed in accordance with the Regulations but are not relevant to Pensana’s operations are the following:

 

Production entitlements Dividends

including dividends paid to a government in lieu of production entitlements or royalties. Dividends paid to a government as an ordinary shareholder on the same terms as to other ordinary shareholders and not paid in lieu of production entitlements or royalties are excluded.

Signature, discovery and production bonuses

Payments are reported on a cash basis. No in-kind payments were made during year ended 30 June 2023. 

Materiality Level

Payments included in the Report are amounts paid, whether in money or in kind, for relevant activities. In line with the Regulations, where a payment or a series of related payments have not exceeded £86,000 they have not been disclosed.

Payments per government

Total payments to governments under the Regulations amounted to US$195,812 in FY 2023 (FY 2022: US$1,514).

 

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley, Chairman.

 

- ENDS –

 

For further information, please contact:

 

Shareholder/analyst enquiries:

Pensana Plc 

Paul Atherley, Chairman IR@pensana.co.uk 

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer

 

 

 

 

 

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Pensana Plc

 

Annual General Meeting - Chairman's Presentation

 

Pensana is pleased to advise that the presentation slides from the Chairman's presentation at the Company's Annual General Meeting, held earlier today, have been published on the Company's website: www.pensana.co.uk.

 

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley, Chairman.

 

- ENDS -

 

For further information, please contact:

 

Shareholder/analyst enquiries:

Pensana Plc 

Paul Atherley, Chairman IR@pensana.co.uk 

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer

 

 

 

 

 

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Pensana Plc

 

Results of Annual General Meeting - 1 December 2023

 

Pensana is pleased to report that at the Company's Annual General Meeting, held earlier today, all Ordinary and Special Resolutions proposed at the meeting, were passed by the requisite majority.

 

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley, Chairman.

 

- ENDS -

 

For further information, please contact:

 

Shareholder/analyst enquiries:

Pensana Plc 

Paul Atherley, Chairman IR@pensana.co.uk 

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer

 

 

 

 

 

20 November 2023

 

 

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                          Pensana Plc ("Pensana" or the "Company")

 

Letter of Intent with Yorkshire Energy Park for Magnet Metal Site

 

Pensana is pleased to announce that, at an on-site event on Friday, the 17th of November, Pensana and The Yorkshire Energy Park ("YEP") signed a letter of intent for the site of a future permanent magnet metal facility within the park. The YEP is located adjacent to the Saltend End Chemicals Park in the Humber Freeport UK.

 

By 2030 the UK is expected to have transitioned from being a major European producer of internal combustion engines to being a world leader in the manufacture of electric drive units. Without a secure magnet metal supply chain, this transition is under threat.

 

As part of its plans to establish an independent supply chain for magnet metals, Pensana is currently undertaking studies into the conversion of rare earth oxides into magnet metals using electric furnaces powered by offshore wind.

 

The letter of intent with YEP covers the proposed site as well as the supply of zero carbon electricity and a range of bespoke facilities for the processing of rare earths in magnet metals, R&D and supply chain activities.

  

The event was also attended by the Vice Chancellor of Lincoln University, which is working with Pensana and YEP to create a regional specialised centre of engineering excellence, training and higher education on YEP for the Humber region.

 

Paul Atherley, Pensana Chairman, commented:  

 

"The partnership between YEP and Pensana is part of a broader study being undertaken to demonstrate how the UK can draw on its chemical engineering heritage and by connecting to offshore wind to create resilient supply chains to support the UK's automotive sector in its transition from a major producer of internal combustion engines to be a world leader in the manufacture of electric drive units."

 

Chris Turner, YEP Chairman, commented: 

 

"We welcome the opportunity to deepen our collaboration with Pensana and the University of Lincoln on this nationally significant project. It represents another milestone for YEP and the Humber Freeport in delivering a zero carbon/advanced technology industrial cluster on the Humber." 

 

Professor Neal Juster, Vice Chancellor of University of Lincoln commented:

 

"This collaboration not only propels opportunities for the growth of research, development, and supply chain activities, but also sets a new standard for sustainable energy practices. Together with our esteemed partners, we are pleased to play a part in shaping a future in which the Yorkshire Energy Park stands as a beacon of excellence in engineering, training, and higher education for the entire Humber region, bringing economic benefit as well as supporting our Net-Zero goals."

 

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley, Chairman.

 

- ENDS -

 

For further information, please contact: Shareholder/analyst enquiries:

Pensana Plc

Paul Atherley, Chairman

IR@pensana.co.uk

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer

31 October 2023

 

 

Pensana Plc

("Pensana" or the "Company")

 

 Publication of Annual Report 2023 and Notice of Annual General Meeting

 

Pensana is pleased to advise that the Annual Report for the year ended 30 June 2023 has been published on the Company's website https://pensana.co.uk/Company-Reports/

 

The Notice of Annual General Meeting and Form of Proxy will be published on the Company's website and will be posted to shareholders on or about 8 November 2023.

 

A copy of the Annual Report will also shortly be available on the National Storage Mechanism under the following link - https://data.fca.org.uk/#/nsm/nationalstoragemechanism    

 

 

- ENDS -

 

 

For further information, please contact:

 

Shareholder/analyst enquiries:

Pensana Plc 

Paul Atherley, Chairman IR@pensana.co.uk

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer

 

 

 

31 October 2023

 

 

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Pensana Plc ("Pensana" or the "Company")

 

Update on Finance for the Longonjo and Saltend Projects

 

The Company is pleased to provide the following update on the financing of both the Longonjo and Saltend projects.

 

Highlights

 

The engineering team has successfully completed a modular redesign of the Longonjo mine and processing facility, with a total Capex of US$200 million. The technical and economic due diligence review of the redesign by South African mining consultants, The Mineral Corporation, on behalf of ABSA Bank, is scheduled for completion in November. ABSA which has been mandated as the lead arranger for a US$120 million loan facility has provided high level commercial debt terms which include South African export credit agency support. FSDEA and a pan-African Multilateral Development Financial Institution are working to provide the US$80 million equity investment required to support the debt facility. FSDEA has provided a $15 million bridging loan facility towards the US$80 million investment, which is available to meet operating cash flow requirements to facilitate early-stage development and the route to main finance. The Company is aiming to fully-fund the Longonjo project at the subsidiary level, Ozango Minerais (84% Pensana), which owns 100% of the Longonjo project and as a result the Company's holding in Ozango Minerais is expected to reduce from 84% to ~64% at a read-through valuation of 66 pence per share. An updated MIC is currently being worked on, which could potentially include various additional tax incentives as a result of amendments to the private investment legislation in Angola, including a reduction in the rate and deferral in the payment of Corporate Income Tax rate along with a reduction in the tax applicable to the distribution of profits and dividends. The Company is in advanced discussion with a number of parties for the offtake of the highly marketable, radionuclide-free mixed rare earth carbonate (MREC) and expects to be in a position to sign up to 100% of the production of the high value, clean MREC from the Longonjo Processing facility. The proposed funding arrangements for the Saltend rare earth separation facility remain largely as previously advised, with ABG Sundal Collier recently confirming that it will place a bond for circa US$150 million and are independent of the Longonjo financing. The Company is in early discussions with the UKIB and with other potential equity partners for the balance of the funding, namely circa US$100 million equity requirement at the subsidiary level and has received a UK Government grant of up to £4,000,000 towards the funding requirement.

 

Paul Atherley Chairman commented: "The completion of the engineering redesign together with the technical and economic sign off by The Mineral Corporation during November is a very important step towards the execution of the financing.

 

We are grateful for the ongoing support from FSDEA which is working closely with us and the team at ABSA to secure the funding to allow the commencement of construction at Longonjo in the first quarter of next year.

 

We have been pleased with the strong interest in the high value radionuclide-free MREC product from Longonjo and are advancing a number of offtake agreements as part of the financing.

 

We continue to progress the financing for the Saltend project which will be independent of the Longonjo financing and as previously advised will be a bond finance, however now with support from the UK Government."

 

Longonjo

 

The engineering team has successfully completed a modular redesign of the processing facility, with a total Capex of US$200 million.

 

The redesign has been led by Project Manager Kevin Botha working with a team of contractors including ADP, part of Lycopodium group and specialist in modular minerals processing unit installation, with extensive experience in Angola, ProProcess a hydrometallurgical specialist with extensive expertise in modular processing plants throughout Africa and mining consultant Practara which has completed the detailed mine redesign and scheduling.

 

South African mining consultants, The Mineral Corporation, is undertaking a technical and economic review of the redesign on behalf of ABSA, which is scheduled to be completed in November.

As previously announced ABSA Bank, the South African based multinational banking and financial services conglomerate has been mandated as the lead arranger for a US$120 million loan facility.

ABSA which has existing exposure to Angola's oil and gas sector and is looking to expand its interest in the country has identified the Longonjo project as an opportunity to gain exposure to the green energy sector.

High level commercial debt terms have been drafted which include South African export credit agency support. These terms are expected to be finalised once the sign off from independent consultants The Minerals Corporation has been received.

The Company continues to work closely with major shareholder, the Angola Sovereign Wealth Fund FSDEA. FSDEA is working with a pan-African Multilateral Development Financial Institution to provide the US$80 million equity investment required to support the debt facility.

 

FSDEA has provided a $15 million bridging loan facility towards the US$80 million investment, which is available to meet operating cash flow requirements to facilitate early-stage development and route to main finance.

 

The Company is aiming to fully-fund the Longonjo project at the subsidiary level Ozango Minerais (84% PRE) which owns 100% of the Longonjo project.

 

It is intended that the US$80 million equity will be invested at the Ozango Minerais level by FSDEA and an African multilateral agency and as a result Pensana's holding in Ozango Minerais will reduce from 84% to ~64% at a read-through valuation of 66 p per share at the Pensana level.

 

The valuation has been based on the independent third-party valuation prepared in March of this year at the time of the proposed US$220 million strategic equity investment by a multinational mining company.

 

Further tax incentives

 

The current Fiscal Terms currently in place under the Mining Investment Contract (MIC) include:

·         2% royalty on revenue;

·         20% Corporate Income Tax rate and a 5% municipal tax on taxable net profits following an initial six-year tax holiday;

·         Custom duties exemption on imported equipment;

·         Full 5-year capital repayment allowance;

·         Dividend tax exemption for 3 years.

 

An updated MIC is currently being worked on, which is potentially expected to include various additional tax incentives as a result of amendments to the private investment legislation in Angola most notably:

 

·         Reduction in the Corporate Income Tax rate, applicable for a period of up to fifteen years;

·         Deferral of the payment of taxes for a period of up to six years;

·         Investment Tax reduction applicable to the distribution of profits and dividends, for a period of fifteen years;

·         An Investment premium (uplift) corresponding to the cost recoverable and tax deductible in terms of the investment to be made for mining and product marketing.

 

Offtake

 

The global market for radionuclide-free mixed rare earth carbonate (MREC) is increasing. Demand from the rest of the world ex China is increasing due to the expansion plans of existing downstream facilities in Europe, India and Asia and the establishment of new separation capacity in the US and Australia.

 

To meet this increased demand the Company is in advanced discussion with a number of parties for the offtake of the highly marketable, radionuclide-free mixed rare earth carbonate (MREC) and has signed letters of intent for up to 100% of the Longonjo offtake.

 

Site based activities

 

Approximately 25% of the US$15 million FSDEA loan has been deployed over the past three months on the following site-based activities:

 

the continuation of onsite activities with earthworks contractors Grupo Nov and electrical contractor, Elektra in preparation of commencement of main construction;

 

finalization of the preferred vendor re-pricing for the revised equipment schedule;

 

finalization of redesign of the monthly mine schedule and Run-of-Mine blending strategy for years 1-5 to meet the redesign throughput rates;

 

finalization of the optimized Tailings Storage Facility re-design;

 

finalization of execution of the Livelihood Restoration Programme with the local community under the Relocation Action Plan.

 

Saltend Update

 

Whilst the immediate focus is on the financing of the Longonjo project, progress continues with the financing for the Saltend rare earth separation facility. Rather than financing both projects contemporaneously as previously proposed the Saltend financing will follow the Longonjo financing. The financings are independent of each other with no financier in common between the two projects.

 

The capital cost for the Saltend facility has been revised up to US$250 million from the previous estimate of US$195 million in May 2022. The increase in the estimate is primarily due to the impact of inflation and a number of design changes.

 

The engineering design has been completed, the site cleared, the preparatory infrastructure works completed and the early-works contractors identified. The project is ready to commence construction once the finance has been arranged.

 

The proposed funding arrangements remain largely as previously advised, with ABG Sundal Collier recently confirming that it will place a bond for circa US$150 million with its institutional investor clients for which the Company has received green bond accreditation by Shades of Green (formerly part of CICERO, now a part of S&P Global).

 

The Company is in early discussions with UKIB and with other potential equity partners for the balance of the funding, namely circa US$ 100 million equity requirement.

 

As with the Longonjo financing, it is intended to finance the Saltend project at the subsidiary level as a stand-alone business with its own feedstock and offtake arrangements rather than at the Pensana corporate level.

 

To this end and as previously announced Pensana has entered into an MOU with offtake partners for 30% of the Saltend NdPr oxide production. These arrangements recognize that Longonjo will initially be producing MREC and allow for the ability to convert MREC offtake to oxide offtake in the future. The Company is also in direct discussions with OEM's in the automotive and wind sectors including Siemens, JLR, Volvo, Mercedes, GE and tier 1 suppliers to the automotive sectors.

 

UK Government Support

 

By 2030 the UK is expected to transition from a being a major producer of internal combustion engines to a world leader in electric drive units (EDUs), producing three million EDUs annually, with a large proportion for export. Without a secure magnet metal supply chain this is under threat.

 

As recently announced Nusrat Ghani, Minister of State at the Department for Business and Trade and Cabinet Office, highlighted that the Saltend project would be an important step in supporting the UK automotive industry which employs 780,000 people and has offered the Company a Grant of up to £4,000,000 towards the funding required to build a rare earth oxide separation facility in the `Humber Freeport' at Saltend.

 

Pensana has been nominated by the UK Government as a partner under the Minerals Security Partnership (MSP) between the US and its international allies.

 

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley, Chairman.

 

- ENDS -

 

For further information, please contact: Shareholder/analyst enquiries:

Pensana Plc

Paul Atherley, Chairman

IR@pensana.co.uk

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer