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Interesting to note (judging by her Twitter) that the UK High Commissioner has only been in post a few days, making this one of her first engagements. Potentially indicates some significance...?
Looking very official now. SURELY news this week on the MDA? Slated for completion in July so a photograph like this does seem to indicate some kind of “handshake”.
https://twitter.com/Share_Talk/status/1555872914242736128?s=20
Heres a well structured article for anybody new here who wants an overview.
https://www.mining-technology.com/projects/songwe-hill-rare-earths-project-malawi-east-africa/
Profit - agree the interest is surprisingly low but let me tell you what experience says - I have seen it many times before where the price gets suppressed so much before a buy out. They clear all the sellers and because they price stays so low for so long they offer a 50-100% premium above the 50dma or over the last 60 day traded price, then the board recommends it because it sounds good, they all get paid handsomely with options / warrants getting paid off also in the process. So experience is telling me this is about to get eaten up and if it rises then be patient as the gravy train will most definitely text the 39p highs for sure.
Personally a take out of around 80p would get accepted in my opinion with hypromag still involved in the deal with offtake. Just a thought.
Just got some to get us off of our duck for the day - cant believe the lack of interest in this!!
The two most required traits for successful investing.
Now is the most time where patience is required at is most, usually this kind of situation would relate to an oil company drilling a wild cat well with investors waiting for a casino type result ….experience will tell you we are lucky to be invested in a stock that’s on the cusp of transformational news that will set this company on the road to stardom ….it doesn’t happen overnight and I’ve learnt that the most hence the reduction in mood swings or expectation of desired so rise. We have the goods ….the world wants to buy our goods ….there is it practically no risk and we all are on the same boat as many big / important investors. Look at it this way …. We are just docked and getting the last checks before we offload the goods.
Hope your guys are all well and keeping steady !!! Roll on next week as each day passes we are closer to that major milestone !!!
Monday - last flush today to shake the weak holders :-)
How about out of the blue, today…
Would anybody here be brave enough to speculate on when the MDA will be finalised?
I’ve rewatched the minister of mining’s “joke” comment and it seems to me that what he was saying was actually very positive. I read it as he’d come personally because what he was hearing in board rooms was so promising it was almost hard to believe so he had come to see with his own eyes. Pretty casual phrasing but it’s confirmation that this is a huge deal for Malawi, and a highly valuable project for all sorts of reasons globally. Now let’s get that juicy little MDA squared away Mr Chakwera…
Quickly would like to add that Cotec would have 100% seen the terms that are being negotiated before committing the £500k along with other investors and Tr1 holders.
Jonas group are moving very silently but be rest assured they are pulling the strings FOR MKA with all their political contacts.
finally if there was any hint of unfair treatment or any possible sabotage then talaxis would be heading out of the door first as they would have first hand knowledge of the deal on the table.
i still feel that someone like Totalenergies who have divested parts of their oil and gas assets and are cash rich would make a punt for the asset or the entire share capital as they have a very strong foothold in the african continent and it would be a great fit for their green strategy hence the name change from TOTAL to Totalenergies.
#foodforthought
Resilience for the future: The UK’s critical minerals strategy
Published by HM Gov today, includes a mention on MKA's very own HyProMag
'Hypromag, a spin-out of this work, has developed an effective way of extracting rare earth magnets for recycling from end-of-life waste streams, such as hard disk drives, using patented Hydrogen Processing of Magnet Scrap technology, and is working to achieve this at an industrial scale.'
https://www.gov.uk/government/publications/uk-critical-mineral-strategy/resilience-for-the-future-the-uks-critical-minerals-strategy
Great post
Interesting one that as the GOVT already owns 15% of the mine and CT is 30%
Probably some of it lost in translation, but does appear that the govt are playing hardball (and potentially unfairly)
Hopefully our MDA is concluded this month, although no rush if they are after anything like those terms
first of all let me put somethings to bed here.
the up to 65% of the revenue is mine specific and its top do with the re-opening of the uranium mine which the government hold a stake also.
each mine will be subject to relevant tax and royalties and there is not a chance we will give 65% or anywhere near that since the us embassy is involved and political power that can sway Malawi government decisions.
This would put the mine up for grabs if mka thought the mda is not favorable and the fact the parliament speech mentioned THE ROAD IS COMPLETE to the mine site suggests that most of the main issues have been ironed out, remember malawi government are allowing for the uk, us, and the Eia to get involved from the off so there is no way they will suddenly do something drastic to go against them,.
finally the asset is huge, even though worst case we gave away 50% somehow or got stung the asset would represent many multiples of the sp once in production especially with our £37m current market cap.
The key for me is that the product need to be refined in a special way where only mka have the patented technology to do it so the ball is firmly in the mka court because no other company would assist if malawi decided to play ball.
stay positive folks, the penny is about to drop.
Thanks for posting the links Silentalker, very interesting.
The reference to "revenue" doesn't seem plausible to me. I wonder if he was misquoted or if that is very specific to that one mining licence due to its historic production.
If Malawi adopts a broad brush revenue-grab on mining developments, I don't foresee that as a positive step for the country - external investment would fall off a cliff and it would encourage companies to adopt aggressive transfer pricing strategies, eroding opportunities for in-country investment in upstream processing which will create further employment/taxation benefits.
Hopefully common sense will prevail and an agreement is struck which is good for all.
This
https://zodiakmalawi.com/nw/national-news/66-news-in-southern-region/4889-govt-to-sign-agreement-with-mkango-resources-ltd-july
was written 2 days after the site visit:
https://mobile.twitter.com/itmonlinetv/status/1540424420828790785
So hopefully this month.
I do wonder if one of the "few fiscal and non-fiscal issues" that are apparently stalling talks here:
https://times.mw/government-advances-on-mining-deals/
has anything to do with this quote
“Our negotiations are being guided by the new Act and based on the calculations by experts, Malawi is getting up to 65% of revenue from the mine."
from here:
https://miningtradenews.net/malawi-to-substantially-benefit-from-kayelekera-uranium-mine/?fbclid=IwAR3EzotR5d2D85gQbgQy010m2frgZbvhicyHnqYJD8Uvkmnn-OPaXeIPiKc
Different mine of course, but 65% sounds like a lot.
Good post MunchBox
I think if we do need more funds in future, we could probably sell another 10% to Cotec on the same terms
If you go on their website, they have a lot more capital than what was invested in HyProMag but I would assume we didn't want to give up too much, so 10% was enough for both parties to be happy for now
At 18p this is very cheap as evidenced by recent TR1's, investment from Talaxis and Cotec (24/27p) we have also improved since then with the release of the DFS, lots of coverage and backing in Malawi - but the market is interested elsewhere for now
I am 100% confident this does well over the short and medium term, I also think the ERMA will fund the Pulawy plant once that DFS is completed
Tufft. The way I know of is it works very differently to normal applications.
Where one might put forward a huge file for any particular government to look at is one thing but an MDA is a serious of agreements with the government on solutions / royalties etc etc and basically it’s like a number of meetings / discussions followed by any information or file that might have been missed out until they all actually agree. The MDA has been in conversation since that parliament speech because the DFS was completely different to what the minister was talking about at the time. My opinion is there’s been a bit of info mka we’re lacking and we are in the final straight. Yes these things do take months but mka have been at it for months and it’s not like they are starting from scratch now. Hope that helps understand the process.
Ps. Can’t believe markets are booming yet we closer lower by 5%. Absolutely baffles me. Hopefully we get it signed off by month end latest I reckon. Many tabloids / official media outlets have covered makango now so we are definitely at the forefront of the next set of decisions. They obviously only needed £500k which voted happily put up at 27p so one can definitely start to think that funding would be announced very soon as 500k won’t last Long and they would most certainly not raise at current prices albeit another institution coming in around 25-27p again.
Evening all. Does anyone have a bead on how long this mining development agreement will take to get finalised? I’m assuming it could be some months, but Chakwera does appear to have a bee in his Bonet about getting things moving in Malawi. Let’s hope he’s true to his word.
great find, actually it tells us more in then few lines then all the rns detail we got from mka themselves. theres been a few missed important bits of info that mka probably have submitted and for mka to be mentioned like this it feels very postive.
looking forward it seems as though the mms are having a lugh by dropping the stock 5% on peanut sells. im still very hopeful we can get moving north this week and beyond.
Via Slasher81 on Twitter...
https://times.mw/government-advances-on-mining-deals/?amp=1
MORE importantly is the article also covers sovereign metals who are our neighbors and have made another world class discovery or as the article puts it "jackpot" which shows massive potential so w t h are we waiting on with our results? whilst they are chirning discovery after discovery and off-takes rolling in ....we are about 500 years behind with issuing an update on rutile although a fair argument is these should happen once MDA comes in.
honestly it baffles me, yes the heat today has got to me but im still confused as to why so many nda's are in place yet the price is static, the market knows right ? that is the rule isn't it? well i hope it does not know something we dont.
Also there has been a few deaths in the Malawi government in the last few days due to COVID so one must bare in mind the reason for slow process must be the COVID restrictions etc etc are probably still in place somewhat but one cannot help but think of how many MDA miners must have submitted that carry importance like songwe.
we have bottomed at 17p roughly 4 times now, there is no way it will break lower but it does need to get the h in to the 20s and higher, expecting 26p resistance to be attacked soon.
keep the faith, patience needed now more than ever.
https://www.africaintelligence.com/southern-africa-and-islands/2022/07/18/chakwera-bets-on-rare-earth-boom-to-fix-country-s-financial-woes,109799903-art
Behind paywall if anyone has access?
one cannot help but feel excited about next week, the worst case is we do what we have been for the last xxxxxxxxx sessions but the best case or even a sniff of a [positive rns / mda or any funding deals and like fridays swift turnaround we will be off to the races.
kind of hoping friday was a little leak and that we get a nice monday morning rns of a a partnership for hypromag or a jv for thambani, im looking for the wheels to start gaining motion from tomorrow. come on mka.