DALLAS, TX -- October 15th, 2025 -- Pensana PLC (LSE: PRE): Stonegate Capital Partners initiates their coverage on Pensana PLC (LSE: PRE). Pensana is one of the few developers outside China pursuing a full mine-to-magnet model, capturing value across the rare earth supply chain. Rather than relying on a “dig-and-ship” approach, the Company is advancing a U.S.-facing downstream strategy that aligns with Western supply chain security goals. A memorandum of understanding with ReElement Technologies provides a direct pathway for Longonjo feedstock to be refined and separated in the United States, linking production to magnet manufacturing. Offtake agreements and MoUs already cover multiples of Stage 1 capacity, demonstrating strong demand for Pensana’s high-specification product. With robust financing support and engagement with the U.S. DoD, Pensana has pivoted decisively toward integration with U.S. and allied markets. This positions the Company as one of the only non-China projects capable of supplying both raw materials and refined feedstock into the Western magnet metals ecosystem.
Company Updates:
Fully Funded Operation - Few rare earth projects outside China have secured construction financing; Pensana is a notable exception. The Company has raised $268M from the Angolan Sovereign Wealth Fund (FSDEA), the African Finance Corporation, and Absa Bank, placing Longonjo among the very limited number of rare earth mines worldwide that are fully funded and in construction. With a modest $217M Stage 1 capex, Pensana benefits from low capital intensities, supported by Lobito Corridor rail and hydroelectric infrastructure. Lastly, recent equity placements further strengthens liquidity to fund operations.
Significance of Rare Earths – NdPr (neodymium-praseodymium) is indispensable for permanent magnets used in electric vehicles, offshore wind turbines, robotics, drones, and defense technologies. Demand growth is expected to remain strong, with EV sales projected to exceed 40M annually by 2030 and offshore wind capacity rising more than sevenfold by 2050. With rare earths underpinning over $3 trillion in industrial applications, and Western governments prioritizing secure supply chains.
Projects - The Longonjo project in Angola is among the highest-ranked undeveloped NdPr deposits globally. Stage 1 is expected to deliver ~5% of global NdPr supply. Construction is progressing on schedule with contractors mobilized on site, backed by a 20-year mine life. In addition, Pensana controls the Coola license and Sulima West prospect, where drilling has identified strong mineralization and metallurgical testing confirms potential as supplemental feedstock. Coola, a similar scale to Longonjo, provides optionality for mine-life extension, grade optimization, and future expansion, reinforcing Pensana’s ability to scale production and secure long-term relevance in the supply chain.
Outlook – Looking ahead, Pensana’s investment case rests on three pillars: (1) delivery of Longonjo as one of the lowest-capital-intensity NdPr projects globally, (2) expansion through Coola and Sulima West to extend mine life and resource scale, and (3) alignment with U.S. and allied downstream strategies that remove reliance on China’s near-total dominance in rare earth refining. With production scheduled ahead of the U.S. Department of Defense’s 2027 China-free supply chain target, Pensana is strategically positioned to emerge as a cornerstone Western supplier in the global magnet metals industry. In addition, the Board is evaluating a potential Nasdaq uplisting and has proposed a share consolidation to meet U.S. listing thresholds. A U.S. listing could broaden institutional access, improve trading liquidity, and support valuation over time.
Current Valuation - When valuing PRE we apply an EV/Reserves valuation method, applying a multiple range of 1.5x to 3.0x with a midpoint of 2.3x which results in a valuation of $3.34 to $6.68 with a mid-point of $5.01. We view this valuation as temporary, and expect the Company to have significant re-ratings in concert with the execution of Pensana’s mine-to-magnet strategy.
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