FAQ: Stonegate Capital Partners Coverage of Pensana PLC - Rare Earth Supply Chain Strategy

What is Pensana PLC and why is Stonegate Capital Partners covering them?

Pensana PLC (LSE: PRE) is a rare earth developer pursuing a full mine-to-magnet model outside China, and Stonegate Capital Partners has initiated coverage on the company due to its strategic position in the Western rare earth supply chain.

Why is Pensana’s approach to rare earths significant compared to traditional methods?

Unlike traditional ‘dig-and-ship’ approaches, Pensana is advancing a U.S.-facing downstream strategy that captures value across the entire rare earth supply chain and aligns with Western supply chain security goals.

How is Pensana’s Longonjo project funded and what is its construction status?

The project is fully funded with $268M raised from the Angolan Sovereign Wealth Fund (FSDEA), African Finance Corporation, and Absa Bank, and construction is progressing on schedule with contractors mobilized on site.

What makes rare earth elements like NdPr so important for modern technology?

NdPr (neodymium-praseodymium) is indispensable for permanent magnets used in electric vehicles, offshore wind turbines, robotics, drones, and defense technologies, underpinning over $3 trillion in industrial applications.

Where are Pensana’s main projects located and what is their production capacity?

The primary Longonjo project is in Angola, with Stage 1 expected to deliver ~5% of global NdPr supply, plus the Coola license and Sulima West prospect in Angola for future expansion and mine-life extension.

How does Pensana connect its mining operations to downstream manufacturing?

Through a memorandum of understanding with ReElement Technologies, Pensana has a direct pathway for Longonjo feedstock to be refined and separated in the United States, linking production to magnet manufacturing.

What is Pensana’s strategic timeline relative to U.S. supply chain goals?

Pensana’s production is scheduled ahead of the U.S. Department of Defense’s 2027 China-free supply chain target, positioning the company to emerge as a cornerstone Western supplier.

What future corporate developments is Pensana considering?

The Board is evaluating a potential Nasdaq uplisting and has proposed a share consolidation to meet U.S. listing thresholds, which could broaden institutional access and improve trading liquidity.

How does demand growth for rare earths support Pensana’s investment case?

Demand growth remains strong with EV sales projected to exceed 40M annually by 2030 and offshore wind capacity rising more than sevenfold by 2050, creating sustained need for NdPr supply.

What are the three pillars of Pensana’s investment case according to the coverage?

The three pillars are: delivery of Longonjo as a low-capital-intensity project, expansion through Coola and Sulima West, and alignment with U.S. downstream strategies to remove reliance on China’s rare earth refining dominance.