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it's hard not to think that this has been a long slow prelude to us getting screwed. the constant delays, that ridiculous pp, and the dumping of millions of shares at 11 and 12p. getting a little worried here myself
Songwe has already received approval of its Environment, Social and Health Impact Assessment, and awaits approval of the mine development agreement, the last key step toward project financing and development.
https://twitter.com/Share_Talk/status/1640652862052003842?s=20
The most probable scenario in my view is that Songwe will be sold — likely for multiples of MKA’s entire current market cap — with the profits fed into MKA’s recycling and refining portfolio across the UK, Germany, Poland, and the US.
https://www.share-talk.com/the-aim-market-has-not-been-a-pleasant-place-in-2023-can-prem-pow-mka-angs-maru-change-things-for-the-better/
"Finalising the MDA in the coming weeks"
9 weeks on now... how far away can this be?? Will Dawes thought it was close and wouldnt have commited so much if it wasnt progressing. Maybe just a few tweaks after a read through of Globe's MDA?
very interested to read the details of Globe's MDA to see how good the terms are.
Tufftrader: I was thinking not much less than 20p a share, and that discounts all the other stuff we have in play as a company. But that is all subject to meeting the terms and conditions of the government of course. Right now, it is worth 0p. Unlike some posters here, I am not convinced that we are going to win a waiting game against them, if we are indeed holding out for certain terms that the government have blocked to date. It is not even like every single commercial outfit is pushing back against the government either, as we have seen with Globe. Anyway, still a waiting game for now. GLA.
Difficult to say, i would imagine you will see a major coming in for an equity stake - which would lead to a material restatement - if would hope this is trading around the 50p mark once that happens.
Globe Metals in trading halt on the ASX today, so likely to be ready to announced granting of MDA as reported in Malawi Press. Subject to the terms of the MDA, and assuming they've not rolled over and accepted unsatisfactory non-commercial terms to get the MDA over the line, it will be instructive to see whether their shares are re-rated as there could be some read-through for market reaction to MKA.
Has anyone got a view on a sale of Songwe post MDA, and what possible price per share could be achieved? Feels like the sharks are circling lots of small cap miners at the mo and swallowing them up, especially if the article I posted earlier is indicative of the wider picture. I wonder what we’d be worth with and MDA in the bag. Anyone got a view?
Some interesting context for what’s happening in the mining world right now. And could happen to us..
https://smallcaps.com.au/andrew-forrest-sparks-merger-acquisition-race-small-miners/
It'll be interesting to see what the market thinks when Globe gets its MDA. What will its SP do, what will Globe and the market experts and commentators say? Will MKA SP follow? Potentially very exciting times for MKA.
Assuming Globe does get its MDA in short order it will be informative for MKA shareholders to see the terms (and how reasonable they are) particularly as they relate to the crucial points of tax royalties and fx. I presume these will be announced on ASX. It's a very significant and positive development that the MDA seems to have been granted imo, assuming fair terms.
Lots of moving parts in these negotiations. Shareholders and lenders interests included. MKA must make sure they get fair terms. It's not our job alone to solve Malawi's foreign currency crisis for example.
It is not a matter of impatience, it is a matter of practicality and pragmatism. Especially when you do business in Africa.
Do we think that the government need to give us this licence more than we need it? Who can wait longest? Ultimately though, it absolutely is about appeasing shareholders. That is the deal when you list a company.
We would all like to make a quick buck and I will not deny that that would be my preference here, but I am under no time pressure. I just do not want to see the clock run down and another raise be required prior to MDA. Not least because the era of cheap credit is over.
I do not mean to come across as bearish and certainly not wanting to be accused of trying to spread FUD, as such accusations sometimes seem to get thrown about on these chat boards.
I am very excited about the prospects here, which is why I took a position recently, having followed the company for quite some time before finally taking the plunge. This is not my first small cap miner and I have some familiarity with the way business works in Africa too (although not Malawi). Anyway, let's hope it gets concluded soon, then everyone can be happy and enjoy the fruits of the journey :) GLA.
This is the problem... just ram an unfavourable MDA through regardless and its worthless, they arnt going to do this to appease impatient shareholders or those that want to make a quick buck.
What is the alternative to agreeing to the government conditions, though?
It's hard for us all to see what pressures are on the bods at this late stage....if they have finance in place but with conditions then this is between a rock and a hard place, on the other hand they will not let this
Deal fail, and should have a
plan B, one with less conditions but less favorable terms.
I am no expert so please ignore. But one thing is for sure IMO, todays interview release was a message to those who have are still in, and yet not capitulated in the negotiations .
The fact he mentioned, some of the the sticking points as not in the country's interest ....is a clear message IMO
Difficult to guess timeframes to MKA MDA completion. Hopefully not too long though particularly now there's a precedent with Global Metals presumably on fair terms. The same issues seemed to be holding that up.
This share still a strong buy imo. Just a bit more patience needed.
Having reread some previous RNSs. Especially the sited reasons why they raised £3.5m on 17th Feb. Im now thinking that one or more of the points mentioned in todays article, which remain to be negotiated and concluded, are stipulated as conditions dependent on future funding for the project. Maybe, these sticking points are proposed by future funders, whom have expressed interest but require certain conditions to be met first. .....if so, then maybe the negotiations will take longer, and possibly why fundraise required.
I think WD needs to update the market soon on this. Either to confirm that they have agreed to all of the terms and conditions as requested by the Malawi government and are now just waiting for them to conclude their process, or if the outstanding issues cited in that article are a red line for the company, to find an alternative solution quickly and update the market accordingly. As another posted said earlier, they are not likely to be issues that have come out of the blue.
From what I have seen and read about WD and the progress the company has made since long before I became a shareholder, I am backing him to deliver. Also impressed with his share purchases, even if I can understand why some holders were miffed at the most recent raise. I would have been too, had I been on board around that time. Anyway, a fairly relaxed holder at the time of print - but things must not be allowed to drift from here. IMO. GLA.
I guess it turns on relative bargaining strength of the parties. Both want the MDA but who wants it more and quickest...?
Morning.
It's a positive development however you look at it.
I'm no expert in mining shares but I'm surprised these types of negotiations are happening at this late stage.
If Mkango are the ones asking for "external bank accounts and a waver on taxes, among others."... I would have thought these critical discussions would have beeb discussed earlier and so ALL partys knew exactly what the deal would involve.
Imo Mkango are right to hang in there to get the very best deal they feel they can....and having a bank account external from country paying you is wise in case accounts get frozen etc......the waver on taxes
Surprised me as isn't that what the government want at the end of the day, plus jobs.
Hard negotiation now may dividends in the future.
https://mwnation.com/govt-guards-against-exploitation-in-mining/
This article from mid Jan explains the ongoing forex/tax sticking point issues well.
At that point the Globe MDA review was at 90% and MKA review at 70% with both companies understanding Malawi's position.
Lack of fx currency is a big issue in Malawi.
If Globe are now at 100% maybe MKA 's up to 80%?!
Looks like the market ain't read the article.
Yes. That is my take as well, Sigas. BOD either need to sign up to it, assuming it is not intolerable, or update the market with next steps if it is. Not sure there is an alternative but to agree to their terms. Anyone with a different opinion to this?
Looks like we could have our MDA tomorrow if we were to succumb to Malawi's demands.