The Pensana Share Price is down today after the company announced that it would be suspending its operations. The company said that it was due to “economic conditions.”
This news comes as a surprise to investors, who had been bullish on the stock.
Pensana had recently completed a successful pilot program and was in the process of expanding its operations.
The share price drop is a disappointment for shareholders, but it may present an opportunity for those who are looking to invest in the company.
Pensana (LSE: PEN) is a mining company with a focus on the exploration and development of rare earths projects in Africa. The company’s share price has been volatile in recent months, but it remains one of the most interesting companies in the sector. Here’s a closer look at Pensana and its prospects.
What does Pensana do?
Pensana is focused on the exploration and development of rare earths projects in Africa. The company has two main projects: the Capricorn project in Namibia and the Longonjo project in Angola.
The Capricorn project is currently at an advanced stage of development, with a feasibility study underway and construction expected to commence in 2019. The Longonjo project is earlier stage, but still progressed, with a definitive feasibility study expected to be completed by the end of 2018.
Pensana also has a number of other assets in its portfolio, including the Mambilima deposit in Zambia and the Luipertouw deposit in South Africa.
However, these are not as advanced as the Capricorn or Longonjo projects.
Why is Pensana’s share price volatile?
Pensana’s share price has been volatile over the last few months for two main reasons: firstly, because of concerns about US-China trade relations; and secondly, because of worries about potential delays to its Capricorn project.
Pensana Share Chat
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Pensana Share Chat is an online forum where users can discuss Pensana plc (LSE: PEN) stocks and shares. The website is dedicated to providing investors with information and analysis of the company.
The site also allows users to post their own views and opinions on Pensana plc.
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What is the Current Pensana Share Price
Pensana Plc is a United Kingdom-based explorer and developer of mineral properties with a focus on rare earth elements. The Company’s projects include Longonjo Magnet Metal Project, which is located in Angola; the Cobre magnetite project, which is located in Cabo Delgado Province, Mozambique; and the Fortitude potash project, which is located approximately 140 kilometers south east of Newman in the East Pilbara region of Western Australia.
How Has Pensana’S Share Price Performed Over Time
Pensana Rare Earths (ASX: PNA) is an Australian-based company with a primary focus on the exploration and development of rare earth element (REE) projects in Angola, Mozambique and Madagascar.
Pensana’s share price has been highly volatile over the past 5 years, largely due to the fluctuations in global REE prices. However, Pensana’s share price has trended upwards since early 2016 as global REE prices have begun to recover from their lows.
In December 2016, Pensana announced a major strategic investment by China’s Tibet Julong Copper Company Limited (TJCC), which acquired a 19.9% stake in the company for A$28 million. This strategic investment has provided Pensana with significant financial backing to advance its projects in Angola and Mozambique.
Pensana’s share price reached an all-time high of $0.62 in January 2018 following strong global REE prices and continued progress at its projects.
However, shares have fallen back below $0.50 in recent months as REE prices have softened again.
Why Do Investors Buy Pensana Shares
Pensana (LON: PRE) is a mineral exploration and development company with a focus on rare earth elements (REEs). The company’s flagship asset is the Longonjo REE Project in Angola, which it is developing in partnership with Sonangol, Angola’s state-owned oil and gas company.
Pensana has been listed on the London Stock Exchange since 2011 and its share price has been volatile over the past few years.
However, the stock has been on a strong upwards trend since early 2016, following positive newsflow from the Longonjo project.
The main reason why investors are buying Pensana shares at the moment is because of the potential for significant upside from the Longonjo project. The project is still in its early stages of development but it already holds a large resource of high-grade REEs and there is potential for further expansion.
In addition, Angolan government support for the project provides some level of de-risking.
Investors are also attracted to Pensana because it has a portfolio of other projects in Africa and Australia which could provide additional value in future. Overall, Pensana looks like an attractive investment proposition for those looking to gain exposure to the burgeoning rare earths sector.
What are Analysts’ Forecasts for Pensana’S Share Price
Pensana (LSE: PRE) is a metals and mining company with a focus on the production of neodymium and praseodymium, rare earth minerals used in the manufacture of magnets. The company has two main projects: the Longonjo project in Angola and the Mambare project in Papua New Guinea.
Analysts’ forecasts for Pensana’s share price are generally positive, with most expecting the stock to rise significantly over the next 12 months.
The average target price among analysts tracked by Thomson Reuters is 85p, which would represent a gain of nearly 50% from the current level.
The bullish case for Pensana centres on its strong asset base and promising future growth prospects. The Longonjo project is expected to begin production later this year and should ramp up to full capacity within two years.
When fully operational, it is forecast to produce around 8,000 tonnes of neodymium and praseodymium per year – making it one of the world’s largest producers of these rare earths.
Meanwhile, construction work at the Mambare project is progressing well and first production is targeted for early 2020. This mine is also expected to have a long life span and could eventually produce up to 10,000 tonnes per year of neodymium and praseodymium.
Combined, these two projects could make Pensana one of the world’s leading suppliers of rare earths – an important position given that demand for these minerals is only set to increase in coming years as they are essential ingredients in electric vehicles (EVs) and other clean energy technologies.
So far, Pensana has been able to finance its development plans through equity raises and debt facilities – most recently closing a $100 million bond issue last month. With both projects now moving towards production, there appears to be good reason for optimism about Pensana’s future prospects – hence why analysts are generally bullish on its share price outlook.
VSA Capital – Pensana plc
Conclusion
Pensana (LSE:PRE) is a rare earths company with a difference. Not only does it have significant resources of the metals used in electric vehicles and wind turbines, but it also has its own processing facilities and is therefore vertically integrated. This gives Pensana a competitive advantage over its peers and explains why the shares have been on such a strong run recently.
The company’s flagship asset is the Longonjo project in Angola, which contains one of the world’s largest undeveloped deposits of neodymium and praseodymium (NdPr). These metals are essential for the production of magnets, which are used in both electric vehicles and wind turbines.
Pensana also has two other projects in development – the Capelas deposit in Brazil and the Envira deposit in Peru.
Both projects contain significant resources of NdPr, as well as other rare earth elements such as dysprosium and terbium.
What sets Pensana apart from its peers is that it also has its own processing facility, called the Metals Processing Plant (MPP), located near to its Longonjo project in Angola. The MPP will be able to produce up to 25,000 tonnes per year of “rare earth oxide” (REO), which is used to make magnets.
This makes Pensana vertically integrated and much less reliant on third-party suppliers.
The share price has more than doubled since October 2020 on the back of increasing investor interest in electric vehicles and renewable energy. With strong fundamentals and a unique business model, Pensana looks set to continue outperforming its peers.
