Highlights
- High-grade rare earth project in Angola
- Reserves: 21.5 Mt @ 3.04% TREO and 139,457 tonnes NdPr
- Targeting initial production of 20,000 tpa MREC by late 2026
- Feature: Modular plant design
- Access to hydropower
- Nature: High-risk, high-upside speculative investment
- Requirements: Further financing and offtake agreements confirmation
The status of this project is sponsored by Pensana Longonjo Rare Ear (opens in a new tab)th, an early-stage development located in Huambo Province, Angola. The focus? NdPr-rich rare earths for magnet metals (EVs, wind turbines).
So what looks solid in the press release?
- JORC-compliant ore reserve:
‣ 21.5 Mt @ 3.04% TREO, 139,457 tonnes NdPr‣ One of the highest-grade undeveloped NdPr deposits globally
- Modular plant design with hydropower and rail access via Lobito Corridor
- Initial production target: 20,000 tpa MREC by late 2026
- EPCM team in place (ADP, MCC, ProProcess); equipment procurement 70% complete
- Environmental planning and local hiring campaign underway
- Recognized ESG intent (CICERO Green Bond + EcoVadis Gold Medal)
What Needs Scrutiny
- No disclosed project financing (debt/equity structure unknown)
- No signed offtake agreements—only “expressions of interest”
- Claimed 5% global supply share lacks basis (global NdPr production ~65,000–80,000 tpa)
- Capex of $216M looks reasonable, but “lowest capital intensity” is unsubstantiated
- Construction timing vague: “mobilization underway” ≠ ground broken
- Carbon savings claim (4 Mt CO₂) is speculative and depends on indirect use cases
Bottom Line forInvestors
Pensana is presenting a compelling narrative around Longonjo, especially on grade, ESG positioning, and logistics. However, this remains a pre-production, pre-financing project with no clear revenue path or secured offtake.
Recommendation:
Treat as a high-risk, high-upside speculative investment. Watch for:
- Formal project financing announcement
- Binding offtake or strategic partner agreement
- Confirmed construction start with timeline updates
- Updated DFS with verified cost-per-tonne economics
“Pensana is presenting a compelling narrative around Longonjo”.
In comparison to whom…? ARR, ASM, Arafura, VHM, Peak, Lynas, MP, Iluka, etc.
For the REI nothing is compelling for a RE retail investor (not traders) looking to first preserve cash and second looking for green flags, unless, as you indicate, the first two below are positively answered:
“No disclosed project financing (debt/equity structure unknown)
No signed offtake agreements—only “expressions of interest”
Retail investors try applying these criteria to the RE wannabees listed above. If one can’t answer our advice, stay away from the RE sector, buy an ETF (if you can find a RE niche) or do some serious ongoing DD.
GLTA – REI
GLTA – REI
As always grateful for critical contribution from REI!