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Stated :-
Mkango is launching a review of strategic options for its advanced stage Songwe Hill Rare Earth Project in Malawi.
Wonder what strategic means for them in the absence of an MDA anywhere?
Possibly missing my point. Even with MDA this is the worst time to privately finance a mine. Other governments e.g. China would finance the mine irrespective of the economics of a given moment.
Uk gov could back projects and with provision to release funds on a milestone basis. The money though needs to be ring fenced in the early stages.
Germany are doing it with hypromag, where magnito put in x and they grant match it.
Currently it's a load of balls that you must seek financing post milestones
PS: Make hay
The BOD told you that funding would be "unlocked" once the MDA lands - nobody is funding a mine project without an MDA ...
The UK always acts like this... we have amazing University techs that get piecemeal grants that take them so far but no further, and then someone swoops in and buys that UK IP. for a song... As in here, I will not be surprised to see US GOV or US DOD completely pay for all 3 US recycling plants taking the company right to the point of commercial viability so $50 million straight in no probs but from UK you are lucky to get near a million even though as you say this is a no brainer and needed for UK security and indendence
Https://mwnation.com/mining-ict-to-anchor-gdp-growth-report/
Malawi government have shown immaturity over the last few years with x2 promises of timrlunes for MDA that have elelspaed.
I suspect this will now change due to high focus as heads will roll otherwise
Problem now, imho is that MKA hold leverage more than ever. With a strategic review ongoing and refocus upon recycling profitability and revenue streams, there is no rush.
Also, for me, it beggars belief that UK governments, knowing that REE are critical elements, are not ring fencing funding.
1billion investment could see the likes of MKA and PRE unleash full mine, refine and in addition for MKA recycle.
At the moment UK gov are on the sidelines with company's line this and PRE fighting over crappy grants such as the ATF for sub 5 mill.
Crazy.
Adding more here tomorrow when my salary lands. No brainer, financed to revenue.
Hopefully UK govt input will help MKA, particularly if the "technical assistance" to Malawi is to tell them to sign the effing MDA. It's been a long time and we as MKA shareholders have already stumped up big money on advice for Malawi from at least 2 independent law firms eg. They can't possibly need any more advice or assistance surely. Just get on with it.
She is probably just an intermediator for the UK Gov it was just the mining angle that caught my eye... I have few doubts behind the scenes Mkango and no doubts others such as Sovereign (who has more to lose ) will have been lobbying for some friendly political pressure to be applied...
Anyway, the Malawian Budget was just passed through so I suppose now the Malawians need to get down to business or go bust!
I just hope she is a tougher negotiator than she looks. Should never judge a book by its cover, of course, and I have met some outstanding business people, whose meek appearances often acted to their/their employers great advantage....but that was the private sector.
I am sure there are some people of such qualities in the public sector (albeit not many, lol). Hopefully she is one of them.
Well, I suppose there are two things there: a straightforward assist to a friend with little mining experience and a funding support carrot -we need to see this from you and you will get this from us...
I think we are all rightly very sceptical of this Malawi Gov being able to do anything...
'In her remarks, Wereke-Brobby said the British government alongside other development partners remain willing to support Malawi to achieve its development goals, including through technical assistance that could help Malawi secure beneficial deals with mining companies.
She also said the development partners have already lined up various forms of financial support to Malawi as long as the country remains on track with the International Monetary Fund.'
Yeah, I only want to see UK government involvement here if they do it the way China does.
Clue: it always ends up being a good deal for China, based on several examples that I have seen first hand in a few other African states.
Otherwise, no.
British Govt as honest broker would be good, but there's a potential downside and/or conflict to them sticking their oar in to "help Malawi secure a beneficial deal" with companies with UK stakeholders like, er, MKA. Don't rock the MDA boat now.
'British Deputy High Commissioner to Malawi Ms. Olympia Wereko-Brobby today met with National Planning Commission (NPC) Director General Dr. Thomas Munthali at NPC offices in Lilongwe where they discussed various issues, including how the British government and other development partners can support the accelerated implementation of the Malawi 2063 First 10-Year Implementation Plan.
The discussion specifically focused on the areas of mining, megafarms, carbon credits and macro-economic management.
In her remarks, Wereke-Brobby said the British government alongside other development partners remain willing to support Malawi to achieve its development goals, including through technical assistance that could help Malawi secure beneficial deals with mining companies.
She also said the development partners have already lined up various forms of financial support to Malawi as long as the country remains on track with the International Monetary Fund.
On his part, Munthali urged the British government and other development partners to support Malawi in improving its production sectors as that is the only way the country can boost the economy and generate resource required to reduce its debt and increase fiscal space.'
https://npc.mw/2024/03/british-envoy-meets-npc-boss/
Must..have..inflation..
'Two people and a company have been sanctioned over cyber-attacks.'
I suppose its a start
"The UK has just announced that it is imposing SANCTIONS on China"
Whoopsee
Not bad Will Dawes holding 4,000,000 shares is it… glad the moneys in the coffers and just move forward on the good news now!
Yes, I bought at 5.44p, others had the opportunity but not many did.
I think this will steadily rise to 10p from here until next news.
Also think the MDA will land in new Malawi tax year, early.
This is down here because of the lack of an MDA for Songwe and the quartered Neodymium price over the last couple of years so now it's priced at the recycling tech only valuation, simple as, nothing to do with the BOD.
GL getting your buy(s) at 5s.
Lack of funding for new mining projects could reduce the availability of rare earth metals and minerals by 20-50%, creating shortages that impacts the production of batteries, McKinsey warns. Rising interest rates and less available finance made mining companies cut investment, with sector spending falling to around $40 billion in 2022, despite soaring demand."
I agree the raise is frustrating but last Thursday I was happy with the share price as it had risen from the low 5s to high 6s. At the moment we are still in the high 6s (after dilution). The dilution fear has now gone, the prospects are still the same (or better) so to be honest I’m still feeling quite positive.
I think it was milling around 5.5 because people were scared dilution would be even lower. Now we know what it is and that has to mean something.
Saying that they dont go live until 10th April so... could happen then but youd think most would have forward sold / flipped already
Would have been a disaster if they gave us shares at 5p
Everyone would be flipping for 10% (so 5.5p)
Best to keep it to those who the BoD feel will absolutely not sell (only £600K) to allow the rest of us at least preserve some value to our holdings
As another poster stated, they were trading at 5.5p for a few days and nobody was interested so we had our chance
I agree it would have been nice to offer shares to the likes of us but I wonder how many would have taken up the offer. It’s not that long ago you could pick up as many as you wanted in the low 5s but no one seemed interested in doing so.