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...or is it selling pressure? Every trade's a sell too. I'm disappointed it hasn't moved more.
Sure that story was from 2022 more likely china will not allow export of rare earths.
Join the dots here...... today's RNS's confirms USA in discussion to partner MKA
U.S. SENATE BILL WOULD BLOCK DEFENSE CONTRACTORS FROM USING CHINA RARE EARTHS IN WEAPONS FOR PENTAGON
US senate to block using China Rare earth for the Pentagons
Weapons
seems this is a no brainer
Market missed this part!
Ongoing discussions with US Government, potential customers and recycling partners!!!
should start re rate
Belting volume - someone's clearly going to move her - mid/upper teens is a more viable new bottom for this IMO.
Huge buy pressure now
looks good for a hard bounce
Agree Earl, Market totally missed that. The increased holding in magnito and the COTEC deal in 🇺🇸 are great news and will lead to inveease in valuation. However, there is real potential for 'rerate' type new from those 🇺🇸 Government discussions
This is the best news I could have hoped for, in terms of this investment
I cannot believe we own 90-100% of HyProMag for ~£5m
What this does for the company
Cotec have agreed to fully fund projects in the USA on a 50/50 JV Basis
So Mkango have agreed to buy the entirety of HyProMag and list it under Maginito, which means Cotec current holding (lets say 20% as they will certainly opt for it) is now a 20% holding of 100% vs a 20% holding of 42%, so Cotec are very happy today as well
The board clearly see unbelievably value ahead for RE recycling (WD added £100K at 12.9p) and wanted to get this deal done before they accelerate the US rollout and begin producing the NdPrFe powder
The next steps
We will find out in the interview tomorrow but my guess would be the following
- Create a US subsidiary on a 50/50 JV Basis
- Fund part of three feasibility projects (like UK and Germany have done)
- Partner with automanufactuers and/or the US government
- Plan to produce and scale NdPrFe Production in late 2024/2025 from the US plants
Each plant at 100tpa would produce around $5-10m in revenue (the reason that is so broad as six months ago it was much higher than $10m but NDPR has come down considerably in that time)
All of my previous estimates were based on a 49% holding, the face we now will own all of the revenue and profit is just beyond anything I could have expected at this stage
Songwe is arguably worth the current cap, when the MDA lands all the pieces of the puzzle will be in place and there will be no stopping this stock
Once we prediction and revenue, we can then list on the NSDQ at X rev or X PE, which with five plants globally and a 100% interest, will be considerable (likely way north of $100m USD)
This is the investment of a lifetime, if I weren't 100% convinced yesterday, I am today
Market missed this part!
Ongoing discussions with US Government, potential customers and recycling partners!!!
should start re rate
Access to highly energy efficient, patented Hydrogen Processing of Magnet Scrap ("HPMS") technology
§ Ability to manufacture rare earth magnets with significantly reduced carbon footprint
§ Maginito and CoTec have launched the roll-out of HPMS into the US:
§ Evaluating the development of recycling, chemical processing, alloy and magnet manufacturing
§ Scoping studies and site selection underway ahead of feasibility studies
§ CoTec and Maginito to form 50/50 joint venture for US developments, with CoTec to fund feasibility study and project development costs
§ Ongoing discussions with US Government, potential customers and recycling partners
Wow! USA government to partner MKA!!
Morning.
Nice news - it's maybe going to become difficult to tell which is the icing or which is the cake here between the Songwe mining project and the recycling tech.
I still maintain Songwe is worth at least 40s here but maybe the recycling tech ends up being worth just as much over time.
Exciting times - the right asset(s) at the right time for sure here.
Fantastic deal, great strategic move by MKA. First UK production targeted this year!!
Good to Lotus still going along too. Lotus adopting the deeply unpopular Paladin contract albeit with variations is probably a much trickier deal than negotiating a brand new MDA/ML. Malawi are trying to recoup significant Paladin losses there. No such baggage for MKA. So hopefully MKA's MDA is ahead and imminent and everyone's learned lots from the Globe deal so we really do get a win-win.
Agree, was previpusly invested here purely for Songwe REE. Started to rebuild my position as valuation dropped and took last tranche this morning on Magnito news.
IMO this puts Mkango front and centre of the emerging REE magnet recycling sector. Progressing Magnito with Cotec should provide plenty news rich upside potential. I particularly like the "Ongoing discussions with US Government, potential customers and recycling partners" comment.
Songwe becomes something of a bonus and can be progressed in the background with the same level of dependency for Mkango.
Glencore clearly see the opportunity here in terms of EV recycling - focused on batteries but the same applies to REE. 9 May 2023 - plans to build the largest Li battery recycling plant in Europe. I can see them coming in for our REE recycling tech to plug into this operation.
Glencore’s chief executive Gary Nagle added that "the unit’s growth was expected to be “exponential” because tens of millions of electric vehicles worldwide would be due for recycling in anywhere between eight and 15 years’ time."
https://www.ft.com/content/ab593cac-5f7e-4b70-904d-94cc0251aaeb
This just got a whole lot more exciting!
Yes, I have been saying that for a while. Hard Rock will have its place in the business plan but a good can improvise, adapt and overcome market changes
Incredible deal .
Yes agree this looks good. Maybe the company can pivot away from mining and more heavily into the recycling side to leverage its tech - opportunity to be assigned a much higher valuation by the market.
This is more exciting than MDA progress too....."Ongoing discussions with US Government, potential customers and recycling partners"
You miss my point, someone asked how the repeal of the act affected progress. Simply saying it doesn't and talks ongoing.
Maybe, although reading the article over a few times it's difficult to infer that any serious progress has been made.
In January this year, Lotus and Malawi were reported to be a very long way apart in terms of their expectations from an MDA, and reading that latest article it doesn't sound like a lot has really changed since it was first highlighted in the the local Malawian press.
The extended delays, weak NdPr price and terrible performance of Globe Metals' share price since it was awarded its MDA is becoming quite concerning. Hopefully a positive update with substance will be issued soon.
Here's what was reported about Mkango and Lotus in January:
The AG said Mkango Resources Limited in particular wanted changes to the law while Globe Metals wanted government to calculate its proceeds using fixed prices, but government challenged that.
“Mkango and Globe Metals have been able to understand government’s position. For Globe Metals, the review process is at 90 while Mkango Resources is at 70 percent,” he said.
Nyirenda said they still have issues with Lotus Resources Ltd which wants to adopt an MDA between Malawi Government and Paladin, a tax holiday of 20 years and that when government is calculating taxes, it should put into account the $350 million loss Paladin made.
He said government cannot tolerate that as Malawi lost a lot in the Paladin deal.
Mkandawire, on the other hand, said the country needs to protect its resources and ensure that government benefits.
He said the companies also want government to revise downwards their rate of royalties that companies pay.
The royalties reduced from five percent to two percent but, according to the PS, Lotus wants the loyalties for the first three to be at one percent and the rest of the mine life at two percent.
Said Mkandawire: “Any investor should align himself or herself to what is prevailing in a sovereign country and Malawi is a sovereign country.
“We need our laws to protect the interest of Malawians and that is what we are doing. We will not change laws just to suit a particular entity.”
Parliamentary Committee on Natural Resources and Climate Change chairperson Welani Chilenga commended government for not giving in to the demands of the investors."
Https://miningtradenews.net/lotus-advances-kayelekera-mda-negotiations-with-malawi-government/
Safe to assume MKA progressing too against doubt that the mining ministry change would slow things.
Hopefully not much longer
*headline should read
"Huge news for the likes of MKA"