Investor Brief: Pensana Longonjo Rare Earth Project (April 2025 Update)

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