Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
31st August 2021. ABGSC will be initiating their detailed due diligence review shortly and will look to be in a
position to target a bond issuance during Q4 2021 once FEED and site preparation is complete.
21st December 2022. Initial site works are underway at Saltend and Longonjo, and this additional investment will take us
through to main financing and the commencement of main construction at both projects during Q1 of
2023.
3rd April 2023. As reported the Company is at an advanced stage in its financing of both the Saltend rare earth separation
facility in the UK and the Longonjo mine in Angola.
31st October 2023. 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
3rd January 2024. Financing for each of the Longonjo and Saltend projects is currently underway.
25th February 2024.The Company, through its 84% owned subsidiary Ozango Minerais SA (Ozango), which owns
100% of the Longonjo project, has concluded a non-binding term sheet.The Facility is condiOonal on obtaining guarantees from the relevant export credit agency for which discussions are well advanced.
The company has never ever announced that it has run into a problem with financing so which if any of the above statements were to be believed? The latest update says they have a non binding term sheet but still do not have either the equity or the export agency guarantee. Hardly encouraging. Meanwhile the directors continue to trouser over $100,000 a month of shareholders' money. So why hurry?!
Right on cue, Karen and our Dim sim cook are back again ! both professing doom and gloom but ignoring the FACT that they both got it completely wrong; this same time last year when they were both claiming the imminent demise of PRE and are both now back again ignoring the fact that PRE's management are on the cusp of returning both of the Companies projects to pre 2022 projections.
It is now painfully obvious to anybody who analyses the bigger picture, that the fallout from the last two years of economic contraction is solely down to the Chinese and their mishandling of Covid; Claiming that PRE's and the World's woes are nothing other than a global trend, is a distraction designed to misdirect blame from the true culprit ~ Xi and his Wuhan Laboratory !
Now I can understand why the Theologist got it so wrong, his Messiah has a litany of failures behind him. As for the Opium smoker I suppose if you read enough discarded fortune cookies you are equally bound to get it wrong !
Theo: Answer my question ~ What's happened to Round Top ?
I fancy the SP to go even lower and the need to raise more funds over the rest of the year, this could go a lot lower.
I'm going to monitor this one over the coming 18mths and decide.
PAUL1DEANO
Pensana Plc - LSE: PRE is an Institutionally backed junior, with finance, in construction
and with a big valuation upside.
FSDEA, M&G and PCA have invested US$70 million to date. Ultra-low US$217 million upfront Capex
• PRE (65%) of EBITDA £137-163 million per annum v current market cap of £100 million.
• PRE (65%) Base Case valuation US$600-1,100 million = £1.09 – 2.01 per share versus
current 31p.
Pensana will definitely be a good one to monitor over 18 months, the EBITDA will surely be compelling for instructional investment, coupled with downstream processing at Saltend UK, a NPV of many multiples of $1b should see the share price being x 10 to 20 times based on peer group comparisons with only circa 300m shares on issue.
Monitoring for a further 18 months when in production and debt free, the dividends will be multiples of the current share price.
All the best with your monitoring!
As Martin Luther King said.
Well said Greek - got to be one of the best investments on the London market as it stands - great entry given all the recent updates and insights - imho
"We must accept finite disappointment, but never lose infinite hope"
Are you discussing your beloved Rainbow's relentless fall from 17 p to 10p over the past 6 months?
They have project funding, so it's irrelevant.
The funding is conditional on getting Export Credit Agency backing.
Can anyone confirm this is now in place?
The silence from the company tells you all you need to know. They tell you what they are trying to put to together but don’t tell you when the plan falls apart. ECIC project funding is very rare. It’s usually small ticket. ECIC state that one of their project funding requirements is that the borrower has a track record of delivering on similar projects. I think Pensana have got a bit carried away. As we approach the first anniversary of the company’s announcement that financing was at an advanced stage we might wonder what happened with the $220m equity investment that formed part of the 3rd April 2023 announcement. Obviously it was rejected by the investor’s committee. Fair enough, you win some you lose some, but why hasn’t the company informed the market? They seem to be serially incapable of being open and candid, but perhaps that’s all part of the plan? They have burned through what, $60 or $70m of investors money getting absolutely nowhere, directors are doing extremely nicely thank you, costs worldwide have soared, Longonjo cost has plummeted (apparently), it’s all a nonsense.
A little harsh even by your standards Theo!
Agree that financing is taking longer than hoped for and appreciate that you have an axe to grind however a quick browse of the RNS suggest that the project is in good shape..
https://pensana.co.uk/technical-due-diligence-report-on-longonjo/
60m loss in the accounts, plus about $20m on the bridge loan.
Oh so you thought the “no fatal flaws” report was encouraging??! Never seen that language in a professional report before.
Yes i did Theo.
The RNS is worth a read and it appears that TMC's report was well received by its intended audience ABSA et al.
You call the project 'nonsense'. By contrast TMC undertakes a comprehensive review and reports that:
TMC is of the opinion that the level of work undertaken for the project schedule and plan of execution is commensurate with the requirements of a BFS and the work undertaken is comprehensive and will be the basis for a potential successful project execution.
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://pensana.co.uk/wp-content/uploads/2024/01/2024-24-01-Technical-due-diligence-report-on-Longonjo.pdf
Because Lewis, like Smartpunter, you endless ramp RBW on its board and yet despite holding no shares in PRE you negatively post on this Board. Why you both feel the need to do so is beyond me. I f RBW is as good as you say it is then good luck to you both, I cant see why you feel the need to post here. As explained earlier if Smartpunter continues to post negatively about PRE on this board then i shall respond in kind on the RBW board.
Chinasyndrome is that you?
Or is insanity infectious?
Lewis my suggestion to you is that if you broke even on PRE well done. Let it go. Move on. Hopefully RBW will come good for you.
Indulging in churlish schadenfreude on this board will just provoke a reaction from others.