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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.
Originally the company had a strong development model with talaksis( noble ) funding the mine build and mkango retaining a royalty on mining proceeds. when talaksis restructured that deal to an equity position in mkango the company never relaced it with a viable development plan. initially they were very successful at increasing the share price and advancing the songewe project but they failed to secure any strategic investment when the share price was building and went from a junior with a strong and clear path forward to one with no plan and no money. its been a while so I may have some of those details off some
They could have at least given us the right to buy the shares as per will reserving the right.
It's a sea change in MKA strategy but a hold/buy for me. Boo to 5p but it looks like a well thought through raise, limited and targeted. The equipment purchases and orders must have been essential to make now to unlock grants. Maybe those grants would only be possible with this cash raise (cash as opposed to borrowing).
The recycling side has lead the way recently so it's probably wise to refocus there.
Julian Treger was also bemoaning Cotec's bombed out sp last week. The market will get it soon imo. Be in when it does. Hold/buy imo.
Genuine question silvermaple, what mistakes do you think the company have made and what could they have done differently?
Hello All, Couldn’t resist missing this boat this morning, have been tempted the last few weeks but been waiting on news of the raise. Like many have indicated on here 5p was cheap but the great news is is the commitment from top management. I’m pleased there’s a focus towards Hypromag as I see this really taking off. Anything under 10p for me is a complete Bargain, I’m going to keep adding upto this price. Me thinks some big news to come soon re US funding , remember this post.
GLA
What a freaking mess. reading through todays posts it is very clear who the real retail investors are and who are here trying to present this horrible news release in a positive light on behalf of the company. idk, maybe they are family, friends, employees... who knows. But lets be clear, the last 2 raises have decimated the share price and investor confidence in this company. plain and simple. management have failed to execute and have diluted shareholder value at shameful levels. the reasons why do not matter at all. it is what it is.... and it's bloody awful
There's just no rush at all to move on from the mine or processing. Get the MDA and hold it until the market for REE corrects itself.
In the meantime focus upon recycling.
Please, if anyone hasn't looked at the USP of this technology then dig deeper. Recycling from all sources of REE components is viable. Its from mobile phones through to car batteries and then wind turbines.
It's just a no brainer that will reap benefits THIS year. A mine would be 3 years away even if REE prices were buoyant.
Hah but do we still check on her page..... again my thinking is that it is better to leave things to bigger hitters SVM and RIO to bend an MDA out of Malawi then legally it would surely mean they would have to offer the same to us... but its also possible we already have some buyer in the wings? dunno till they tell us but certainly does look like the whole mine refine recycle is now heading to just recycle which TBF for the size of this company and the global potential it holds is enough
No @Malawi or US Embassy in the announcement tweet which I think is telling ...
I'm speechless honestly, was throwing in the towel this am thankfully went for a long walk got back just before 9am
Many lessons learned today - am I happy we've raised at 5p (even with the CEO putting in £150K) absolutely not but do I understand the circumstances, of course. I still don't think it excuses a 5p placing but to raise £600K and put as much in as you could so the market only got say 30% of its expected allocation is a bold move and its currently paid off with the stock trading a whopping 40% above placing
Next steps and these need to come quick, because we cant be at the mercy of the market again in 9 months time
- revalue HyProMag, get a proper independent valuation and put that asset down on the books (cotec might do this)
- advance US funding (cotec)
- just DO SOMETHING with Songwe (tongue in cheek) there is ZERO value on the books for this asset, its probably better for SH and Malawi if we move this asset on to a bigger player, keep a royalty if possible
- Pulawy is promising but needs a lot of funding, its likely packaged with Songwe. The BoD know 100x more than I do so lets see what they achieve with Songwe/Pulawy
- Sell or do something with the Uranium asset
- The main prize, first commercial production in the UK and scale up worldwide, all of the above should be contributing t this goal in every possible way. Lets get multiple plants out there producing magnets and become one of the wests only recycled magnet producers.
And it’s only 10am !!!
Probably the first/last time I'll ever see >$50k worth bought up to 7s on a 5p placing day lol
I wonder what's coming around the corner ...
Looks like the market likes the funding and the focus on the magnet recycling side of the business. It seems a no brainer to focus on that side. That's where there's an opportunity to use grant funding to unlock a lot of revenue.
I'll buy that narrative :)
Certainly retaining HyproMag IP is key and Will is not willing to let that go for very good reason so now it is down to the market to work out is there any value here... and looks like they are seeing it!... Malawi at moment is costing nowt just pay to keep licences so that can now become another game as I said earlier I'd be more concerned to be a SVM holder with their great mcap let them now do MDA battle I mean negotiations and if they shift the Gov we can piggyback onto the same style MDA unless MKA has another plan there of course which they may... looking forwards from hearing from the guys
Worth noting also, that Hypromag valuation some time ago ALONE was 8p per share.
That was pre US clarity (full funded by cotec via 50:50 joint venture), pre estimate revenue figures. Also discounts to NOTHING, the MDA and Malawi asset along with Poland processing potential.
My view is this should be trading north of 12p today now that financing has been dealt with.
Haven't seen anything like this since the covid days, unbelievable post placing strength
I suspect
- Jan go to market (10p) no interest
- Market now aware so short
- Push us down to 5p
- CEO puts in £150K plus other sticky holders (only £600k) total £750K to 'shaft' the city somewhat, as city and people on the side-lines hoping for a £2m raise at 5p
- Those rejected start buying last week ahead of placing annoucement knowing full well 5p stock is gone and even 6p is cheap
- Announcement today catches us retail investors out, but not realising there is probably £500K on the side-lines waiting to take stock which was 10p in Jan now 6-7p, so they are mopping it up
Hindsight! CEO actually made a really bold move to only raise £750K, of which £600K from existing investors really reducing any damage and causing a rush to buy cheap stock on the open market.
Not giving a ton of credit we are still at a ridiculous SP, but have to admit did a reasonable job with a very bad hand. (and we keep all of HyProMag)
If this goes blue today it will be a massive signal.
Cotec and indeed Mkango have both indicated HyproMag will likely when fully commercial especially in US list on US main market.... the potential if it is tied as I suspect to US defence industry will be massive.... no need for any Chinese RE magnets ever again for F-35s etc... think on it and all done cheaply and as environmentally friendly as is possible... no other tech can compete on that
"Whoever bought those 400k blocks clearly didn't know about today" - possibly they may have.
"Im expecting a share price fall today as the market opens, probably by more than the discounted 25% fund raise" - not so sure
Knee here reactions on headlines. Always read the RNS multiple times and try and put yourself in the Companies shoes
I could foresee Cotec buying all of MKA in future. I'm sure William doesn't want that at the current valuation, hence his personal contribution. They need to see it through to MDA and commissioning of the recycling plants, then it will be in a more favourable position for negotiation
I think it was the 5p hit for what is a keep the lights on and get some vital gear aspect of the raise that hit the guts but then when you think on it compared to not being able to raise at all... and knowing who has put money in and what having these funds now means and no IP is diluted then ... as the market is now doing it means a certain amount of confidence returns
your dead right about PR though... still think we will now get something from the guys in that regard