Pensana Rare Earths PLC (PRE) AI Stock Analysis

• Market Cap: £393.85M
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 51
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 339,522,670
• 10 Day Avg. Volume: 1,623,377
• 30 Day Avg. Volume: 1,211,701
• PEG Ratio: -0.54
• Price to Book (P/B): 4.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: 115.00p ▲(10.05% Upside)
• Action: N/A Date: 01/24/26
• Date: Action: N/A 01/24/26

The score is held back primarily by weak financial fundamentals (no revenue, widening losses, and negative free cash flow) alongside a rising debt load. Technicals are moderately supportive with improving trend/momentum, but valuation signals remain weak due to continued losses and the absence of dividend support.

Positive Factors

Strategic industry exposure

Pensana targets NdPr and other magnet metals used in electrification and clean-energy applications — a long-term secular market driven by EVs, wind turbines and industrial electrification. That structural demand can support durable product pricing and long-term revenue potential once production scales.

Integrated upstream-downstream strategy

The company’s plan to combine Longonjo concentrate production with downstream UK processing positions it to capture more of the value chain. Vertical integration can improve margin capture, secure supply to European customers, and create a differentiated competitive position versus pure-play miners.

Equity-backed balance sheet

A sizable equity base relative to assets provides a tangible funding cushion for a development-stage miner, lowering immediate solvency risk. It strengthens negotiating position with lenders and investors and gives the company runway to advance permits, construction and initial production before commercial cash flows.

Negative Factors

Pre-revenue profile

Being pre-revenue means the business lacks operating income and must rely entirely on financing and capital markets until commercialization. That elevates execution risk, makes project timelines and capital needs critical, and leaves no margin buffer to absorb cost or commodity price shocks.

Persistent negative cash flow

Negative operating and free cash flow signal the business is not self-funding and remains capital intensive. Although FCF improved versus prior year, continued cash burn increases dependence on external financing, heightening dilution or refinancing risk and constraining investment flexibility.

Rising leverage & weak returns

Debt growth raises leverage and fixed obligations for a pre-revenue project, increasing financing risk ahead of production. Coupled with deeply negative returns on equity, this indicates capital deployed is not yet generating value, making future financing more costly and shareholder returns uncertain until operations scale.

Pensana Rare Earths PLC Business Overview & Revenue Model

Company Description

Pensana Plc engages in the exploration and development of mineral properties in Angola. The company primarily explores for neodymium and praseodymium (NdPr) deposits. Its flagship assets are the Saltend rare earth refinery project located in the United Kingdom and the Longonjo NdPr project located in Angola. The company was formerly known as Pensana Rare Earths Plc and changed its name to Pensana Plc in February 2021. Pensana Plc was incorporated in 2006 and is based in London, the United Kingdom.

How the Company Makes Money

Pensana Rare Earths PLC Financial Statement Overview

Summary

Development-stage profile with no revenue, widening net losses (2025 vs. 2024), and persistent cash burn. Balance sheet has a meaningful equity base, but debt has risen materially and returns on equity are strongly negative, increasing financing risk until commercialization.

Income Statement

The company remains pre-revenue (revenue is 0 across all reported years), so reported margins are not meaningful and losses dominate the earnings profile. Net loss widened materially in 2025 (annual net income of about -12.2m vs. -8.7m in 2024), and operating losses remain consistently high, indicating continued cash burn to fund development rather than an operating business. A modest positive is that losses have not trended in a straight line (e.g., smaller loss in 2023), but overall profitability and visibility into an earnings inflection remain weak.

Balance Sheet

The balance sheet is supported by a sizable equity base (stockholders’ equity ~50.6m in 2025) relative to total assets (~82.0m), which provides some cushion for an early-stage, loss-making profile. Leverage is moderate but rising: total debt increased to ~17.2m in 2025 from ~10.8m in 2024 (and 0 in 2023), pushing debt relative to equity higher (about 0.34 in 2025). Returns on equity are meaningfully negative (about -24% in 2025), reflecting ongoing losses and highlighting that the capital base is not currently generating returns.

Cash Flow

Cash generation is weak with consistently negative operating cash flow (about -2.8m in 2025, improving from -5.6m in 2024), indicating the core business is not self-funding. Free cash flow is also deeply negative (about -9.0m in 2025), though it improved substantially versus 2024 (about -20.2m), suggesting some reduction in spending intensity. A key risk is volatility in free cash flow growth (extreme swings year to year) alongside persistent cash burn, which typically increases dependence on external financing.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2021	Jun 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-38.71K	0.00	-58.16K	-24.51K	-22.71K
EBITDA	-12.11M	-9.56M	-4.24M	-13.66M	-7.08M
Net Income	-12.19M	-8.72M	-4.30M	-11.71M	-9.37M
Balance Sheet
Total Assets	81.98M	74.57M	71.63M	42.03M	40.80M
Cash, Cash Equivalents and Short-Term Investments	811.68K	1.52M	9.70M	2.93M	16.79M
Total Debt	17.17M	10.79M	0.00	0.00	0.00
Total Liabilities	31.41M	23.62M	14.87M	3.65M	4.63M
Stockholders Equity	50.57M	50.96M	56.76M	38.38M	36.17M
Cash Flow
Free Cash Flow	-9.00M	-20.20M	-19.74M	-28.79M	-13.58M
Operating Cash Flow	-2.80M	-5.56M	-5.75M	-7.95M	-6.87M
Investing Cash Flow	-5.41M	-13.05M	-11.58M	-20.85M	-6.71M
Financing Cash Flow	7.46M	10.43M	23.90M	16.37M	26.19M

Pensana Rare Earths PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZNWD	52 Neutral	£37.42M	-12.55	-7.78%	―	―	-19.57%
ALL	51 Neutral	£132.34M	-36.82	-17.14%	―	―	54.72%
CTL	50 Neutral	£22.83M	-1.63	-35.54%	―	―	―
PRE	48 Neutral	£393.85M	-38.03	-10.18%	―	―	―
RBW	46 Neutral	£134.01M	-54.74	-21.81%	―	―	28.30%
HREE	25 Underperform	£21.19M	-10.69	―	―	―	―

Pensana Rare Earths PLC Corporate Events

Pensana Sets March Vote on US$160 Million Strategic Equity Investment

Pensana Plc has confirmed that documentation for a proposed US$160 million strategic equity investment will be sent to shareholders around 17 February 2026, with a General Meeting scheduled for 9 March 2026 to seek investor approval. The move signals a significant capital-raising step that could strengthen Pensana’s balance sheet, support its rare earths development plans, and potentially enhance its positioning within critical minerals supply chains, subject to shareholder consent.

The company has also made the Notice of General Meeting available on its website and will lodge it on the National Storage Mechanism, ensuring broad access for investors and regulators. Formalising this process under market abuse regulations underscores the transaction’s materiality for Pensana and highlights the importance of transparent disclosure for stakeholders evaluating the strategic equity investment.

The most recent analyst rating on (GB:PRE) stock is a Sell with a £111.00 price target. To see the full list of analyst forecasts on Pensana Rare Earths PLC stock, see the GB:PRE Stock Forecast page.

Pensana Issues New Shares to Quark Financial, Updates Voting Rights

Pensana Plc has agreed to issue 275,000 new ordinary shares of £0.001 each to Quark Financial Limited under a previously concluded subscription agreement, increasing its issued share capital to 339,522,689 ordinary shares. The new shares are expected to be admitted to the Official List and begin trading on the London Stock Exchange’s Main Market on or about 28 January 2026, slightly diluting existing holdings and updating the company’s total voting rights, a key reference point for investors monitoring disclosure thresholds under UK transparency rules.

Pensana Advances Longonjo Drilling to Bolster Resource and Mine Planning

Pensana Plc has begun preparations for a 7,000-metre infill drilling programme at its Longonjo rare earth project in Angola, aimed at providing detailed geological and grade control data ahead of planned mining and stockpiling activities from early 2027 and complementing an ongoing resource expansion campaign. The company will mobilise two reverse circulation rigs for drilling through the 2026 dry season on a tight 10 x 10 metre grid over initial pit areas, collect deeper samples to better define the vertical extent of mineralisation, and assess the potential to increase inferred resources from the current 313 million tonnes at 1.43% TREO towards one billion tonnes, which would place Longonjo among the world’s largest rare earth deposits in development. A containerised on-site laboratory with sample preparation and automated XRF analysis is being procured to accelerate and reduce the cost of multi-element assays, supporting continuous grade control drilling and refining mine and blending plans developed with Practara, thereby strengthening Pensana’s operational readiness and its strategic positioning in the global magnet metals supply chain.

Pensana Finance Director Sells 37,500 Shares in Routine Market Transaction

Pensana Plc, listed on the London Stock Exchange, is involved in the trading of ordinary shares of £0.001 each under the identification code GB00BKM0ZJ18. The company’s securities are actively traded in the UK equity market, where it complies with regulatory disclosure requirements for dealings by senior management. In a recent transaction disclosure, Pensana reported that its Finance Director, Robert Kaplan, sold 37,500 ordinary shares at a price of £0.9225 per share on 12 January 2026, for a total value of £34,593.75. The sale, conducted on the London Stock Exchange, forms part of routine regulatory reporting of dealings by persons discharging managerial responsibilities, providing transparency to investors regarding insider share transactions.

Pensana Updates Details on New Share Admission and Enlarged Share Capital

Pensana Plc has updated details of its latest equity issuance, confirming that 1,133,106 new ordinary shares are expected to be admitted to trading on the London Stock Exchange on or about 6 January 2026, ranking pari passu with existing shares. Following this issue, the company’s total issued share capital will rise to 339,247,689 ordinary shares with no treasury shares held, setting the new baseline for voting rights and regulatory disclosure thresholds for shareholders under the UK’s transparency rules.

Pensana Issues Over 1.1 Million New Shares to Quark and Riverfort

Pensana Plc has issued a total of 1,113,106 new ordinary shares, allocating 658,750 shares to Quark Financial Limited under a recent subscription agreement and 474,356 shares to Riverfort Global Opportunities PCC Ltd through the exercise of warrants linked to an earlier secured investment deal. The new shares, expected to be admitted to trading on the London Stock Exchange’s Main Market on 24 December 2025, increase Pensana’s issued share capital to 339,247,689 ordinary shares with an equivalent number of voting rights, providing fresh equity funding and slightly diluting existing shareholders while updating the base for regulatory disclosure of significant shareholdings.

Pensana Increases Share Capital with Issue of 23.1 Million New Shares

Pensana Plc has issued 23,148,148 new ordinary shares, which are expected to be admitted to the Official List and begin trading on the Main Market of the London Stock Exchange on or about 22 December 2025, ranking pari passu with its existing ordinary shares. Following this issuance, the company’s total issued share capital will rise to 338,114,583 ordinary shares, establishing the same figure as the total number of voting rights, a key reference point for investors assessing disclosure obligations under UK transparency rules and signalling further equity-funded support for Pensana’s broader strategic plans.

Pensana Expands Equity with New Share Issuance

Pensana Rare Earths PLC operates in the rare earth elements industry, focusing on the production and supply of essential materials for various high-tech and green energy applications. The company is listed on the London Stock Exchange and aims to strengthen its market position through strategic investments and partnerships. Pensana has announced the issuance of 1,425,000 new ordinary shares following a US$3 million placement to institutional investors. This move increases the company’s total issued share capital to 308,716,435 ordinary shares, enhancing its financial flexibility and potentially impacting shareholder voting rights. The new shares are expected to begin trading on the LSE on December 18, 2025.

Pensana Publishes AGM Chairman’s Presentation Slides

Pensana Rare Earths PLC, a company involved in the rare earths industry, announced that the presentation slides from their Chairman’s Presentation at the Annual General Meeting have been published on their website. This announcement is considered inside information under the Market Abuse Regulations, and its release marks the information as public domain, potentially impacting the company’s transparency and stakeholder relations.