Strong NdPr prices push NPV up 14% to US$2.4 billion. Capex...

Strong NdPr prices push NPV up 14% to US$2.4 billion. Capex reduced and development timeline shortened

Operational update highlights:

• FEED for both Saltend and Longonjo completed with material improvement in project economics, including:
  • Estimated Capex reduced from US$525 million to US$494 million with further reductions anticipated
  • Post tax NPV increased by 14% to US$2.4 billion with an IRR of 61%
• Reduction in the project execution schedule with commissioning now targeted for late 2023
• Approaches received from major European and US electric vehicle and wind turbine OEMS to secure magnet metal supply chain
• Memorandum of Understanding executed with key Asian trading house for 50% of Saltend’s production

Pensana Chairman, Paul Atherley commented:
“Reducing our capital and operating costs is a significant achievement by CEO Tim George and the team, especially given the inflationary pressures and supply chain constraints affecting projects globally. The lower capital and strong operating margins will make the project attractive to our Financiers and are expected to lower the overall cost of finance.

We continue to have very positive discussions with some of the world’s major automotive and wind turbine manufacturers, who recognise the strength of Pensana’s model and the security of supply we can provide for these essential industries. With only one major magnet metal rare earth producer outside China, transparent and independent capacity is urgently required, particularly in Europe.

Pensana is excellently positioned to bring high value manufacturing back to the UK and be a first mover in meeting this burgeoning demand for critical magnet metals.”