Pensana Plc partners with Stonegate Capital Partners to boost U.S. investor visibility, advancing Longonjo mine amid rising rare earths market dynamics.
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Written by: Daniel
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Written by: Daniel
NEWS Pensana Targets U.S. Investors with Stonegate Appointment as NdPr Prices Climb
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The commentary raises some interesting questions:
Stonegate's presence is not critical; Phase 1 of the project is already fully financed and is being executed. The initial plan was to finance Phase 2 from revenues generated by Phase 1. Given the recent upturn in Rare Earth interest from the US Government (DoD, DFC, EXIM etc), Pensana is now exploring the possibilities to expediting Phase 2.
Capturing the pricing 'window' and 'length of term' are currently dependant on Chinese Policy. The simple fact that China is pursuing projects that will require massive amounts of NdPr magnets (Robots, Tibetan Dams and Mag-Lev trains), means that we are already seeing the SMM prices rising, escalated by a reduction of feed from Myanmar and Mountain Pass. What do you think is going to happen when the rest of the World develops their own Magnet industries, and starts to upgrade Europe's own High-speed train network? The main reason RE prices had been so cheap for so long, was not the supply/demand balance, but the stated fact that China sought to monopolise the RE Industries. That is no longer going to happen.
Why does Pensana need to 'compete' with MP and Lynas? Those two mines would have no hope in filling US & EU supply goals. One thing the Chinese should have taught us, is that security comes with diversified supply chain, ie not having all of your eggs in one basket. Your points 3 and 4 are somewhat contradictory, if demand were to soften, Lynas would have far more to lose than Pensana! Yet Lynas made their decision on the latest expansion project when Chinese policy and prices were at their softest!
- Will Pensana’s Longonjo project deliver on schedule and at scale to capture this pricing window?
- Can Stonegate’s outreach secure long-term U.S. institutional backing—or is this primarily a near-term visibility play?
- How sustainable is the U.S. $110,000/t price benchmark if Chinese policies shift or demand softens?
- Finally, can Pensana compete with established players like MP Materials and Lynas in meeting U.S. and European supply security goals?
Stonegate's presence is not critical; Phase 1 of the project is already fully financed and is being executed. The initial plan was to finance Phase 2 from revenues generated by Phase 1. Given the recent upturn in Rare Earth interest from the US Government (DoD, DFC, EXIM etc), Pensana is now exploring the possibilities to expediting Phase 2.
Capturing the pricing 'window' and 'length of term' are currently dependant on Chinese Policy. The simple fact that China is pursuing projects that will require massive amounts of NdPr magnets (Robots, Tibetan Dams and Mag-Lev trains), means that we are already seeing the SMM prices rising, escalated by a reduction of feed from Myanmar and Mountain Pass. What do you think is going to happen when the rest of the World develops their own Magnet industries, and starts to upgrade Europe's own High-speed train network? The main reason RE prices had been so cheap for so long, was not the supply/demand balance, but the stated fact that China sought to monopolise the RE Industries. That is no longer going to happen.
Why does Pensana need to 'compete' with MP and Lynas? Those two mines would have no hope in filling US & EU supply goals. One thing the Chinese should have taught us, is that security comes with diversified supply chain, ie not having all of your eggs in one basket. Your points 3 and 4 are somewhat contradictory, if demand were to soften, Lynas would have far more to lose than Pensana! Yet Lynas made their decision on the latest expansion project when Chinese policy and prices were at their softest!
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