Pensana Plc: Update on Financing and Mine Development
ANDRIEVSKII.CH | October 26, 2026
Pensana has provided a clearer financing timetable for its Longonjo rare earth project in Angola, giving investors concrete milestones after a period of uncertainty. The announcement sets out the proposed equity investment, the next steps towards debt financing and the schedule for bringing the mine into production.
According to the company’s 26 October announcement, discussions continue with major shareholders, Cascade and other investors over US$75–90 million of equity financing for its subsidiary, Ozango Minerais. Cascade expects to deploy a significant tranche within the next 14 days. It has already invested US$15 million against its overall US$165 million commitment.
That gives shareholders a near-term milestone to assess. The financing remains to be completed, but the expected timing is now more clearly defined.
Longonjo Moves Towards Its Next Milestones
Pensana reports that Longonjo is fully permitted and fully engineered, with the overall construction schedule approximately 30% complete and more than 60% of procurement committed. The current slowdown reflects the process of concluding equity financing.
The company is targeting commissioning in January 2028 and full production by September 2028, subject to the timely deployment of equity and the completion of binding offtake agreements and debt approvals by February 2027.
Discussions with potential Japanese buyers are intended to support proposed debt facilities with ABSA and EXIM. Pensana expects these offtake agreements to cover most, potentially all, of the initial annual production. Discussions with prospective US customers are also underway, with greater American interest currently directed towards the planned second-stage expansion.
A Strategic Source of Magnet Materials
Longonjo’s initial production target is 20,000 tonnes a year of mixed rare earth carbonate, containing approximately 2,400 tonnes of neodymium and praseodymium and 73 tonnes of dysprosium and terbium.
The planned expansion would double annual carbonate production to 40,000 tonnes in Year 4, increasing the project’s contribution to supplies of both light and heavy rare earths outside China.
Infrastructure is an important part of the investment case. The project has a signed agreement for hydropower from the Laúca Dam and access to the Lobito railway corridor and Atlantic export facilities.
Pensana estimates first-phase capital expenditure at US$250 million and reports a projected net present value of US$2.3 billion, an EBITDA margin of 80% and a payback period below two years at the prices used in its assessment. These are company projections, dependent on financing, construction, operating performance and market conditions.
Andrievskii Verdict: Clarity Has Arrived
The wait was relatively short, but it was enough to unsettle smaller speculative investors. My interpretation is that patient institutional capital remained committed, treating the weakness as an opportunity to accumulate a cheaper asset. The announcement confirms continuing engagement with major backers, although it does not establish wider institutional buying.
The investment story now has clearer dates against which progress can be judged. The next test is the arrival of the expected funding, followed by binding sales agreements and debt approvals.
At the time of writing, Pensana shares were up approximately 29%, according to the market update supplied for this article. That response suggests investors welcomed the greater visibility.
Clarity has arrived. Now we just need the money to follow the promises and find its way to the mine.
Disclaimer: This publication is provided for informational purposes only and does not constitute personalised investment advice or a recommendation to buy or sell securities. Investments in financial instruments involve risks, including the potential loss of capital.
Aleksei Andrievskii | Advisory Board Member, Bendura Bank AG | Liechtenstein