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Buy action starting to heat up again. News inbound. What a moment for this company. Come on Chakwera let’s dust off that quill and ignite Malawi’s role in the green energy revolution. News within two weeks I feel. GLA
Stewart Newton bought most of his holding above 20p early last year and still holds over 5%.
Michael Geoghegan was paying 30p when he went above 4%.
A top fund manager and an ex HSBC boss. You couldn't ask for better connected HNW individuals if you tried.
Already involved with US govt to fast track this when signed off.
Current SP is a gift.
I fully agree, financing is not an issue for long term investors.
The key is the ML followed by info on the Pulawy FS (and importantly the NPV). If all good then financing will come, the West is desperate for near tern Rear Earths. Yes there will be equity need and dilution but that is the case in any new mining development, with the big gains to come longer term.
The investment in Hypromag gives another near term exposure to Rear Earths and recycling is being commented on everywhere as the next huge thing.
Therefore for me, ML is the critical thing. Then after that I don't care what share price will be next 12-24 months, after that we are looking at a significant multiple on todays price.
Much to look forward to but I guess the reluctance of buyers is around funding (ain't it always).
Initial capex is US$277M excluding US$34M contingency.
Last June Mkango hosted site visits for a number of major commercial and development banks. They have also been in discussions with a number of off-takers.
Personally, I don't see finance as being a problem but maybe that's just me.
The demand for rare earths is certainly there and I like the fact that we're not a rampy pumpy lifestyle company. When they release news it tends to be significant.
Once MDA finally lands for Songwe, we've still got the feasability study for Pulawy to come (capex estimate US$120M) and the DFS for the integrated project.
There's an 18 year operating life forecast for Songwe. assumed from Feb 25 but then we also have Nkalonge Hill as a potential source of additional feedstock.
Oh, mustn't forget the recycling business nor the Rutile.
For me, this is a long term hold (been in pre Songwe pfs) and I'm not too bothered if the kids get the benefit as I really can't be ****d to trade it.
Should be an interesting few weeks ahead. Good luck to all
...
Yes bonkers SP. Under the radar or out of favour for whatever reason. Has to be a buy now though with a clear steer from the minister that we'll see the win-win MDA within 10 days. And realistically funding can't be far behind. Songwe alone can contribute 2% of Malawi's GDP. It's mind blowing.
You’re certainly expect so. I’m bracing for anything up to three weeks for news. And I don’t expect fireworks anymore. If the MDA lands and the terms are good I expect a very modest climb back to 30p. Still, exciting times here. GLA.
I dont mind if this stays under the radar for another few months to be honest. I have some free cash coming up and it is going here.
The valuation is total b__locks. Should be x4 now.
Has to be odds on for a run upwards next week as the end of the month approaches.
The billion $ mine is valued at zero at this price.
https://www.nyasatimes.com/govt-to-complete-3-mining-agreements-by-jan-31/
Ahh scrap that I get it now :)
'Mkango UK’s role in the Project is to establish a pilot plant in the UK to chemically process recycled HPMS NdFeB powder and magnet swarf (i.e. the powder produced from grinding and finishing magnets) from a range of scrap sources including electronic waste, electric motors and wind turbines, complementing the short loop magnet recycling routes being developed in parallel
HyProMag will work with UoB to develop a new semi continuous version of the HPMS process and to produce short loop recycled sintered magnets at multiple grades to match the requirements for a range of applications'
I get why Hypromag is a part of the SCREAM team I less get why Mkango? interesting and positive all the same
Perceived concern BECAUSE two more law firms are now looking at the MDA?
Plenty of money looking to buy the dip ...
Tweet from MKA:
Securing Critical #RareEarth magnets for the UK supply chain “SCREAM” website live with #MKA
https://twitter.com/MkangoResources/status/1616013675495661570?s=20&t=b0F-YUvE5DqL91lj-hxxFA
https://scream-uk.com/
I'd expected a bit more action with what was revealed earlier in the week! News could drop any day now and it's looking very positive IMO
DAVOS- VON DER LEYEN SAYS EU WILL TEMPORARILY ADAPT ITS STATE AID RULES TO SPEED-UP AND SIMPLIFY HELP TO "GREEN" INDUSTRY WITH TARGETED AID FOR PRODUCTION FACILITIES TO COUNTER RELOCATION RISKS FROM FOREIGN SUBSIDIES
A battle between EU and USA awaits!! Who will be the highest bidder!!
Janet Yellen to visit African countries as US steps up overtures to continent
Washington is seeking to entice nations away from financial and resource ties to China
https://www.ft.com/content/23d66a41-e9ed-44d0-967f-279fee36dba7
I agree with various posters that, reading between the lines, the Gov and the companies have decided to stop mucking about and get these MDAs over the line in the near future. With that attitude, I’m sure there will be no problem and we’ll get definitive news in the next few weeks.
Surprised the SP didn’t react more today - the closing SP is still near long term lows, and lower even than at some points in the past couple of weeks. Should be well primed for a bounce in my view
Sounds that way.....looks like they have a common ground and are just fine tuning. The other article intimated that laws would need to be changed, that is not the case as per below,
"However, there are provisions that the investors pointed out which, we agree, can be amended to remove ambiguities,”
He said once all issues are ironed out, the MDAs will be signed.
“These companies have made a lot of concessions. We cannot change the laws just to suit one company. We cannot be forced to amend laws. However, there are provisions that the investors pointed out which, we agree, can be amended to remove ambiguities,” Nyirenda said.
It might be that all issues are now resolved and the MDA is in agreed form. The royalties and foreign/domestic bank a/cs and forex issues being the last to fall into place late last week, with no requirement for legislative changes. And that it's only now awaiting sign off by independent international lawyers acting for Malawi. Full a.r.se covering job by Malawi. Completion within 2 weeks. Fingers crossed. I agree at the very least it's positive whatever, and generally we should be happy to wait for a deal that sticks, rather than go for one now that falls apart before the ink's dry.
Morning.
It's a 4x for sure from here to my eye but I can wait - it'll come.
Reading that article, there is a lot of subjectivity. It implies that MKA and Globe are close (dotting i's and crossing T's) yet there are some others trying there luck.
I can see both sides, the off shore escrow protect MKA from geographic turmoil along with political, equally Malawi want to reap the benefits immediately.
The article clearly states they MKA are on the same page. The last thing you want is the Burundi scenario. MKA get into revenue generation and the government want to redo the agreement.
These negotiations started in Jan 2022, with expected deadline (set by Malawi) of end Dec 2022 (article). The AG never got involved until Q4. I see this being done and dusted in Q1 easily.
The MCAP is so low its crying out for a takeover approach. I personally want this to come full term as it will be worth so much more.
GLA
Agree both articles are very good, hard to tell which news comes before the other, arguably the 'three MDA will complete by Jan 31st' article is the most recent which does say the comments were made on the 12th, when the other article was written
Both read quite positive, I can understand Malawi's stance, if we are asking for changes to the law and also royalties in the region of 2%, but at the same time I can understand the companies stance as if we are asking for these terms then we must have financing in place otherwise we wouldn't have a leg to stand on so behind the scenes I would imagine we have a lot of firepower to be asking for this and that (outside of the importance of the mine and its minerals itself)
Any changes to the law could be a major sticking point and cause a lengthy and costly delay. Third parties will be reluctant to invest until the position is clarified so the Board must issue a RNS this week to explain what is going on.
I interpret the Nyasa Times article as saying the MDA is agreed and will complete this month. I guess MKA have paid the fees of law firms DWF and Trinity to give independent legal advice to Malawi that the content is fair and reasonable.
Looks like full steam ahead to me.