Pensana has been recommended again as a Buy by Tom Winnifrith on Hot Stock Rockets in the UK.

I don't normally post recommendations, however, as he is not well-known in Oz and there is so little coverage of Pensana here....

Pensana Rare Earths – progress with Coola and Longonjo projects, Buy…

PUBLISHED: 21 Dec 2020 @ 23:10 | Comments (0) | More info about Tom Winnifrith

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Pensana Rare Earths (LSE:PRE) has announced positive updates from its flagship Longonjo project in Angola and the Coola project 16 kilometres to the north…

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It updates on the latter first, reporting high grade rare earths in soils from the first sampling programmes – “a high tenor soil anomaly up to 4.69% REO extending over a 1.3 x 1.4 kilometre area”. It notes a rare earth mineralised carbonatite that is now sufficiently well-defined for drill testing and this from what is only the first of several exploration targets for critical technology metals identified within the project.

The update on Longonjo is that drilling successfully obtained over 170 tonnes of mineralisation from surface to 24 metres depth, including feed for the further optimisation and pilot plant programmes of the expanded processing operations in Angola and the UK.

Also noted is the appointment of accomplished economic geologist Grant Haywood as Exploration Manager, further assay results expected shortly and drill testing next year and that the company expects to report a Wood Group study re. Angola mine and processing plant and a UK rare earth refinery next month.

That prospective news flow is with we having noted that a preliminary feasibility study has already derived for the Longonjo project (Pensana: 84%), on an initial indicated resource period of nine years and even on a ‘Low’ case basis, payback of 17 months and EBITDA of $782 million. With there having since been meaningful further progress and a market cap, with the shares at 76.2p, of £154.8 million (currently approx. $209 million), targeting the shares returning to 90p+ as the news flow continues, at up to 77.5p: Buy.

P.S. His EBITDA figure is from the PFS Low Case, and with everything we know now it is a VERY low estimate!