The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Https://m.miningweekly.com/print-version/lotus-to-raise-30m-to-accelerate-kayelekera-restart-letlhakane-development-2024-02-23
$30m raise by Lotus to accelerate restart of Kayalekera i.a. MDA close?
Yes. AIM explorers/miners in particular.
Like others posting here, I think the chaos and delays in the Malawi mining side of MKA's business has acted as a major but disproportionate drag on the sp. Stock market conditions have affected most small cap mineral exploration companies severely, but imo this shouldn't have clobbered the MKA sp to the extent it has because of the progress on the recycling side in particular.
I agree that the SP is most likely effected by the thought of more funding required sometime soon. However, if you look at the five year graph, just a snap shot of sp in November each year you will see that its not just company performance that effects the share price.
Nov 21 a high 37p
Nov 22 a high of 16p
Nov 23 a high of 12 p
Today 6p
Today, Feb 24 a share price of just 6p with all the progress that has been made , but again with a likely funding required you could argue that this share has done nothing but loose value for the past three years, let alone past three months and at whatever price you chose to buy - even with all the good prospects and news .
Alternatively, the years before 2021 where the opposite and the SP went up approx. 700 % !
Just goes to show what a game AIM is, and IMO when the time comes when the small caps come back from the dead and into focus again, specific shares like MKA will be some of the first to be rewarded, but IMO todays prices have less to do with company's performances etc and more to do with the present day Zeitgeist in the small caps market . Its a case of that old saying..... buy and hold. I am more comfortable buying and holding down here at 6p than at any other time in past three years.
Assuming the loan agreement (Maginito to Hypromag Germany) for €2.5m still exists and is undrawn, cash of €2.5m presumably has to remain in Maginito, and can't be treated as cash in MKA. So MKA need cash shortly (within the next few months) as I interpret it.
The weak sp likely reflects market jitters about the cash runway being largely behind us now. But there'll be no problem for MKA to access funding on decent terms because of the value and strength of the business. Imo. Still a buy.
Last update and video on mka website (July 23) stated 12 months of funding and as you say no drawdown yet. Uk hupromag also generating cash now/soon?
Ah yes it's more what's the split and how much will COTEC put in for them and how much do we need and what other funds will be available. had a spreadsheet somewhere might need to update it.
good weekend all
I would assume at least some costs associated with starting up the Brum plant?
I mean end of the year even assuming outlays are the same as during the DFS and acquisition periods. Likely longer. Not an issue at this point imo.
anyway, back to observing
Waiit! sorry -1 quarter as from sep 30 so 4.9->3.8 (max 1.1m USD/quarter as lots of that was DFS and acquisition in 2023), halfway through a quarter as well so estimated cash about 3.25m USD so until end of 2024 then.
who was saying end of Q1?
So taking from from the Interims of 30th September (quarterly,, so this has 9 months of info for 2023 in it): (confusing as for the DFS they use US$, then they also use £, then € but they also just use $.
$2,279,766 cash position (at 30sep23)
9 month loss $3,913,435 (01jan23-30sep23)
of which last 3 quarters $1,548,355 mainly as a result of the HyProMag and HyProMag Germany costs being consolidated post the HyProMag Acquisition (one off).
DFS done so much reduced expenditure on Songwe.
Maginito had agreed to provide a €2.5 million German Convertible Loan to HyProMag
Germany which will, if converted, result in Maginito holding, a direct and indirect interest of 90% in HyProMag Germany. At 30 September 2023, this facility had not been drawn down.
So at the moment ok with the loan 2.5m EUR (2.5EUR/=2.7m USD) and cash 2.2m USD and losses about 1.1m/quarter and 4.9m USD about 4-5 quarters? so end of H1 2025?
Anyone else get this as well?
LWHL - ok, thanks for responding. will look into it a bit more (only a small holding). gla
Simply the lack of clarity on the cash runway situation, IMO. I guess the BOD will have to update the market at some point!
Just checking in - anyone know why we went from 8.5p to 6.5p? Mining Agreement delays?
COTEC and Maginito are looking good. Do we know progress of facilities in DE/UK/US?
Hey.
I got spanked by the Zs but will be back this evening.
Out of HUM - will monitor.
Hi Bonker, I haven't seen any post from you on Tweeter recently. Is your account still working?
I'm also curious to know if you still own HUM.
Wrong one 🤣
https://email.6ix.com/view?msgid=VXZFEYmfMx1RhuhDpSgc_A2
I don't ??????
Thanks bonker99, I get what you mean now 😉. Not long to go then ✔️
6-8 weeks.
"8 weeks? Can you give us a bit more please."
9 weeks?
8 weeks? Can you give us a bit more please.
8 weeks.
It's entirely right to be thinking about all these issues, in particular funding/solvency atm. But there's more than enough value in MKA to support the current sp. Another 10k shares for me today. Laughing by Christmas hopefully.
Silvermaple,
I’ve no idea either but one thing I do know is he/she/they have done a damn good job of decimating the share price and knocking the confidence of many LTHs. I can’t believe that I am not buying loads more at this low price but it’s because I have been stung on many occasions in the past with what I believed at the time to be sound investments.