Investment Bank Liberum sees significant upside in London-listed Pensana as one of only three UK companies to meet the climate leaders gold standard.
The company has been picked by the bank as one of five stocks, and the only small cap, that it considers climate leaders in the UK and Europe ahead of COP26.
“COP26 is approaching, and with it, a focus on different countries’ ambitions to decarbonise their economies”, Liberum writes in a note titled ‘Strategy, Accounting and Sustainability: Our COP26 top stock picks’.
The note states that, when breaking down net-zero targets into industry-specific guidelines, the gold standard is the Science-Based Targets initiative.
Pensana is one of only three UK companies the bank selected as meeting the criteria for overall climate leaders in Europe.
“The Pensana site will be the world’s first processing hub for rare earth metals and the first one located in a Freeport,” Liberum writes of the Saltend project, in Humber, in the UK.
“What makes Pensana particularly interesting as an investment is not only its strategic position in the decarbonisation value chain and its location as Europe’s preferred supplier, but the cheap market valuation so far,” Liberum states.
‘As a long-term investment, we see significant upside for the stock going forward,” it adds.
In addition to its rare earth processing hub, in the UK, Pensana is also developing the Longonjo rare earth mining project, in Angola.