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I've got a reminder too.
Mkango board have never, ever said anything unless there is something important to say.
They never have been, and there's nothing to suggest they are now, a 'lifestyle' company.
They have never raised to advance other projects on the books, preferring to preserve cash and focus on what's moving now - in this case Songwe and the European (and now US) magnet recycling technology.
They've farmed out, JV'd and accessed grants to progress.
I'm sure the easy option at times would been an equity raise but they've avoided that as far as possible.
This is without doubt a long journey. I first invested when Songwe was just a hill with no holes in it, thinking, like many I suspect, of multiples come the PFS. To be fair the SP rose about 5 fold to around 36p I think and with hindsight, blah blah, blah.
Bottom line is, I trust the management to deliver and all the other noise around MDA and cash position is just fluff.
Keep the faith
So wouldn't really be selected if the 14 governments are going to let it turn to dust with no financing. I suspect watch this space.
Forgot about this:
"▪ HyProMag HPMS technology selected as an MSP project
▪ MSP (est 2022) consists of 14 governments, including UK and USA
▪ MSP aims to ensure adequate supplies of minerals such as rare earths to meet net zero carbon goals
▪ MSP regards resilient supply chains to be critically important for an equitable and sustainable energy transition
▪ MSP aims to catalyse public and private sector investment in responsible critical mineral supply chains globally."
GLA
Https://mkango.ca/site/assets/files/4952/mkango_corporation_presentation_oct_2023_-_website_-_20.pdf
What to expect and what is being worked on. Why people need to relax.
Nothing I've seen - other than the SP destruction - suggests a bucket shop placing is on the cards.
The EU act passes really soon IIRC and, yes, there's billions of funding for ESG companies knocking about so I would be genuinely surprised to see something else happen - I'd also be genuinely surprised to see this close a week below 6p.
If there was a way we could reverse the CLN (which I think is possible) we could raise 2.5m euro today
Mkango raised £3.5m
Provided a 2.5m euro loan to HyProMag Germany via Maginito
As of Sep 2023, not a single penny of this had not been drawn down
The Euro grant was 3.7m euro, we had to pay the rest (hence the CLN) to fund the German Pilot Plant
IF, and its a big IF, that plant can secure funding from elsewhere (the MSP for example, I mean if you want critical RE's why are you making a small struggling company stump up 2.5m Euro!?) then we could reverse this CLN, get an extra £2m in the bank (GBP) and at the same time, secure lucrative funding for the German plant
It may be a long shot, but the BoD are as shrewd as they come
Should this come to fruition, I suspect the SP would at minimum double overnight
This is a potential long shot, nothing has been confirmed AT ALL in this regard and is total speculation
Wouldn't be surprised is what I meant haha
I'm not sure why automatic assumption is a placing. Strategic investment and grants were mentioned by mka last time around.
As to why not at 12p or higher, what is the pitch to the investor? Working capital doesn't quite work in my view
MDA will open doors to investment at the right time, progress with hypromag in uk and Germany ahead of us first.
As I've said before, I would be so surprised if cotec bought mka completely.
What I am not getting is if we were going to be short of cash now, why was a placing not done when the share price was at 12p back in December ?
Second thing I do not get if this is now good value for money as the majority including myself think, why do not we see members of MKA adding more money like all of us to average down ?
I am not disputing that there are many headwinds, both macro and (to a degree) micro, but IMO it is the cash runway uncertainty which is the fundamental reason why the SP continues to print fresh multi-year lows.
Regardless of what other outfits do, or have done historically, there is nothing stopping our company from issuing a statement along the lines that I suggested - assuming that statement applies, of course.
As I said before, anyone familiar with AIM has seen what we have seen elsewhere very recently, over and over and over again through the years.
It is not illogical to consider this as a potential factor at play behind the scenes.
The fact is, if they are going to need to raise cash via a placing (rather than an alternative financing route), then it would have been far better to have done so when the SP was at least 10p, preferably higher, not now.
Anyway, it is all healthy speculation at the end of the day. We all want the same thing here and I certainly prefer to be able to make praise, when it is justified (see my comments on ITV this morning, if you have nothing better to do, lol).
Have a good weekend all.
Some Warren Buffett quotes to keep in mind atm.
Price is what you pay. Value is what you get.
A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.
Just buy something for less than it’s worth.
Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.
Agreed - primarily I thought that was to get the facility over the line plus the expansion into the recycling. You'd think they would have done it back in November after the interims, or even in early january if MDA not signed by end of 2023. So for me it isn't clear that it is currently necessary. I'd need to see recycling production (which should cover general outgoings of the whole company once commerical at 100t/year - but that is tricky as we don't quite know (i dont think) exactly what magents are being created (price depends on strength and type). Depends on incoming i should think.
https://www.metal.com/price/Rare-Earth/Rare-Earth-Magnets
looking at CNY120-380 divide 9 GBPCNY (about 9 CNY/GBP) is about 13.3-42GBP/kilo
at 20t/yr (1.67t/month) this is GBP22,000-GBP70,000 per month
at 100t/yr (8.33t/month) this is GBP111000-GBP350,000 per month
minus opex. maybe opex equal price scrap recyclers pay to get it recycled.
Short term goal is to get that facililty up and running and an interim update on that would be welcome in my view. Aim is to start at 20t/y vols then in a matter of weeks/couple of months ramp up to 100t/yr volumes. By Q2 2024 I expect the I expect 50k odd and by Q3 around 250k a month.
MyIPA
yes I understand the formation of the comapny and Cotec, but I think, and more importantly, the market believes, that funding is an issue and imminent. End H1 is very optimistic imv. It may be that other avenues for funding are explored which would be great but eveything comes at a cost- be it a reduced percentage etc. The last raise was around this time last year £3.5 m at £0.125p. I will add when clarity is provided.
Traady
Right. soo.... we knew all of this back in November. It isn't a surprise. Should be enough until end H1 assuming no sales from birmingham and no cash injection from JV partner. Dont forget on all of this we were expecting the MDA by the end of the year at the latest. But this company isn't just Songwe it is the recycling tech of which we have a serious JV with COTEC for (which wasn't known about at the time of the 30 sep interims).
GLA
There is not a lot the Bod can say about the MDA. However, I do think the Bod should be communicating, given decline in the SP and continued speculation over funding. I have had no reply to emails to Tavistock or Bod. Yes the BoD have done good deals previously but the market is a different place now. Even a 100% uplift on a good MDA/news would only just put us in double figures.
People will speculate as to funds and this is due to the last update quarter last year:
The Company’s consolidated cash balance at 30 September 2023 was $2,279,766 and working capital was
$1,095,734. The Company is reviewing future funding alternatives to provide investment for ongoing and new
projects and to provide working capital sufficient to fund Mkango’s operations in the 12 months from the date of
signing the financial statements.
Https://mwnation.com/us-urges-investment-in-mining-tourism-to-spur-growth/
Focus on implementation and not just chatter
FWIW - I expect Neodymium to bottom out with about another 10% drop - very timely.
Why would they comment upon market forces, a quarterly update is due and provides a management summary of the current position. Retail investment panic, if used as a barometer for RNS on aim would result in a flood of RNS every other day in these market conditions.
52% from December, it rose 50% on MDA speculation, with the minister saying by Dec 31st. No one shout for an RNS at that point. It then dropped back.
Lets look at this month, it has been purely cash position assumption again by RI, not seeing the volumes of II leaving the building only RI. Team with this market conditions outside of anything tech and the new lows in recent time of REE then you can see why the market isnt excited.
It will change. Do you really think this is worth 12million pounds as a business? Good god! Hypromag alone will be worth x3 this is 3 years time.
I personally dont want them to try an finance a mine yet, unless as they again say in the last update talks with bankers and off takers are continuing and are advanced.
LWHL - no company does what you are proposing, absolutely no company. UNLESS it happens in a single day which it hasn't. Mining, RE metal prices (and raw) are highly affected by chinese production and the general global trend. Being able to recycle this material is a key step and I think why MKA will prove to be a success.
If you want to know why the likely reason of recent declines then you can look at these:
https://strategicmetalsinvest.com/terbium-prices/
https://strategicmetalsinvest.com/neodymium-prices/
https://strategicmetalsinvest.com/dysprosium-prices/
https://strategicmetalsinvest.com/praseodymium-prices/
which are not yet related to the company but we are in the 'Rare Earth' bucket for investors and so get affected by macro/sector effects.
GLA
LewisW - I guess in mining "regular" can be at seldom as every 6 months! With Hypromag and building a facility then I would think every few months increasing until fully at production then noise for that facility will reduce because it'll then just be a nice profit line in the P&L. More facilities more news.
Looking at the last year or two we've had decent news at least every couple of months. So I think at this stage I would expect to hear something every couple of months. March 3rd would be 2 months since last news.
This . Exactly this.
Well, how about a statement today noting the 52% decline in share price since December, 28% in just the last month, and that the BOD know of no reason for this movement? Furthermore noting some speculation about the cash position of the company, and so giving an update and outline to this end? Something along those lines would do.
How often is regular? Weekly? Saying the same thing over and over isnt a great strategy.
Sorry, last post cut off.
Its all panic, low volume, noise! See through it and look at the assets and potential. SP is irrelevant unless you dont follow the golden rule of not investing anything you cannot afford to lose. Putting a timescale on this type of operation is ridiculous, especially the mine. Most take 20 years from explore to produce.
The market is in pain, the commodity is in pain. It doesn't mean this wont change, and for the better.
For the investor from 2016, what is your timeline? I personally would have taken some off the top to make this a free investment given it went from sub 2p to 30p+ in that timeline. You are surely 100% up now or have you added more? what is your avg.
Mine is just now below Will Dawes last investment point.