Pensana (LSE:PRE) said construction of its $250 million Longonjo rare earth project in Angola has reached 22% completion, with development remaining on schedule and within budget ahead of first mixed rare earth carbonate production targeted for 2027.
The company expects the mine to initially produce 20,000 tonnes of mixed rare earth carbonate annually, with output planned to increase to 40,000 tonnes per year from approximately 2029. Longonjo is projected to operate for more than two decades. Major infrastructure and construction activities, including earthworks, piling, on-site concrete production facilities, and procurement of long-lead equipment such as the sulphuric acid plant and ball mill, are progressing as planned. The project also benefits from access to the Lobito Corridor rail network and connection to Angola’s hydropower-supported electricity grid, supporting lower operating costs and reduced carbon intensity.
Pensana is enhancing its heavy rare earth recovery circuit to increase annual production of dysprosium and terbium to more than 122 tonnes. The upgrade is expected to establish Longonjo as one of the largest Western sources of heavy rare earths while improving revenue prospects through higher-value product streams.
Alongside mine development, the company is advancing plans for a modular separation and metallisation facility as part of its broader mine-to-magnet strategy centred on the United States. The initiative is supported by substantial funding commitments. Pensana has also secured a multi-party offtake framework involving industrial and automotive partners from Japan, the U.S. and Europe, while evaluating a potential NASDAQ listing to broaden access to American capital markets.
Despite operational progress, Pensana continues to face financial challenges. The company remains pre-revenue, losses are widening, free cash flow is negative, and debt levels have increased. While technical indicators suggest improving momentum and trend support, valuation metrics remain constrained by ongoing losses and the lack of dividend payments.
More about Pensana Rare Earths PLC
Pensana Plc is a rare earths development company focused on creating an independent mine-to-magnet supply chain serving magnet manufacturers as well as automotive and industrial customers across the U.S., Europe and Asia. Its flagship asset is the Longonjo rare earth project in Angola, which is designed to produce both light and heavy rare earth elements. The company is supported by strategic investors and a network of offtake partners spanning the global magnet industry.
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