Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Me too - it's at 1/4 of what the Songwe project alone is worth and around the same 1/4 of the ATH so I guess the spivs know what they doing ...
I've taken the opportunity to add today. Nothing has fundamentally changed and so i still view this as a good long-term investment.
Some good bullish points to offset some of the bearish sentiment. Still holding, but not tempted to add at these prices either. If we see 8's, I will have a decision to make. Either will add or sell at that point. GLA.
Been invested since late 2016 :-) - i have plenty of patience. also plenty of frustration.
Its just AIM. Rainbow chaser move from stock to stock scalping 5pc (allegedly) - Not convinced that many of them make money. See it everywhere.
As with everything in AIM, it just requires patience....Plenty of stocks are out of kilter with what their actual worth is. It just needs the herd to turn up as...as they inevitably do.
Well again it comes down to temperament I guess - we're told the CEO has just thrown in £100k @ 12.85p but then we have an apparent delay on the MDA so the AIM spivs are inevitable going to try and shake as many out below the CEO's buy price - it is what it is.
One day perhaps, being able to buy a decent chunk with a 25% discount to what the CEO just paid for his will be seen as quite the opp ;)
Sadly have been here a few times before, and each time I have to admit it doesn't get any easier and every concern starts to manifest as if it were a reality
My approach it to simply remain focussed, we have done our research on this stock and the current valuation for me is highly attractive
We know the following
- we have a valuable asset in Songwe, albeit no MDA means we cannot realise the true value of the asset, but that doesn't make it worthless, it has had £14m+ spent on it
- We have a 33% partner in Talaxis (aka global commodity trader noble group) they paid 24p
- The CEO paid 12.75p only recently (£100K)
- We are fully cashed up so no funding concerns, placing done 30% higher at 12.5p
- We have two/three fully funded plants, both cost ~£6m each
- We have three or more plants in the pipeline with our US partners Cotec 'who will be funding the operations for two years' they are currently up about 20% since announcement
- We have sold 20% of Maginito for around £3.5m giving our remaining holding a ~£15m valuation (before German plant ownership increase) so arguably £17-18m+
We have blue sky tech and an asset currently being valued at around £2-3m (minus cash and HyProMag)
Dont let the market fool you into thinking we have no value here
Songwe could easily be worth double our current market cap if not treble, once the MDA lands which it will eventually, this isn't going to drag on forever even if it feels like it, we have seen the reports in Malawi, they have had a tough year with the typhoon and secondly the minister changes, plus a crack down on corruption, but I suspect it gets done
Songwe £25/£50m+
HyProMag £20m+
May possibly be an update tomorrow (Y/E MD and A)
Just my two cents, yes there are negatives (delayed MDA, NDPR pricing dropping) but it doesn't warrant this extremely supressed valuation
Personally holding strong and adding more, but this isn't a ST trade (been here since 2017) its a long term hold until we sell the assets (HyProMag and Songwe) which I still truly believe will be for £100m+ in due course, and we have a feasible plan in place for that and more importantly the right partners on board
As long as there is no company-specific reason for this significant sell off, of course. Hence an RNS to that effect would calm this ship. This is AIM, so IMO BOD's do need to speak up in situations like this, because too often it is the result of a leak for example. Not the fault of good outfits to be tarred with the same brush as the dodgy AIM ones, but it is what it is, so I for one would like to hear something very soon.
It's not a natural decline of course so it'll inevitably boing higher than it first fell from as per.
9p looks fab to me - if seen.
Actually, given the SP action recently, I do think the BOD need to say something soon. 'We know of no reason' RNS type thing. Or another chunky inside purchase would do the trick too I suspect.
Indeed but if they have no news what can they say? Relentless larges sells been occurring daily for some considerable time.
The radio silence is starting to bite.
@silvermaple - some of us have different temperaments :)
I'm not sure what you want the CEO to do - we're told he's just thrown in £100k of his own money at upper 12s recently but there's a delay, possibly only a very short one, so you can expect the AIM spivs to do the usual and start dumping the SP as best they can for the bigger buy-in at a lower price, c'est la AIM.
Fingers crossed we get a sniff of 9s.
COTEC going off the last vid was hopeful of gaining US GOV and other potential sources of funding too... which in the current climate I'd say stands a good chance ...
I think the UK commercial plant will be a game changer when it comes online this year.... potential investors/partners like to see such things operational and doing business ...That it will manufacture recycled saleable RE magnets will be a clincher especially if all those US tax credits for RE magnet manufacturers are coming in
what in the blazes are you guys talking about? stagflation?? who cares??? ask is now at 10.5p!!!!! we are in dangerous waters here. hundreds of thousands of shares being dumped every day. is it too much to expect the ceo to step up and update shareholders here. jeesh
I wouldn't worry about funding too much but more dilution of the second prized asset, Maginito
Cotec updated the market earlier this week (we will be updating I believe on Friday) and they had this to say:
The feasibility work for the roll-out of the Hypromag Technology and other REE technologies owned by
Maginito into the US in collaboration with CoTec will commence in the first half of 2023. The roll-out will
be in the form of a 50:50 joint venture between Maginito and CoTec in which, broadly, CoTec will provide
the funding for the first two years, whilst Maginito will provide the technology.
https://www.cotec.ca/investors/financial-reports/ (Management Discussion)
So if we need further funding, for working capital or US based operations then it clearly states it will come from Cotec - and they are happy to fund us, the issue would be diluting Maginito (or the US subsidiary) so we hold less than 50% of that newly created asset, which although no dilution takes place at group level, would still be 'giving away' the valuable technology due to issues in Malawi etc.
So as frustrating as it may be, there is a plan in place to 10x this stock in the next 18-24 months
I agree. Indeed the reason why commodities are by far the biggest percentage of my p/f is because I believe in the stagflation thesis. I just hope not hyperinflation - but you can only control what you can control etc, so no point worrying about such things really.
All part of the game - everyone wants more/cheaper shares ;)
Re inflation - the point made is folly of course.
I made this point in HUM some time back:
If you have a goods cost base affected by global inflation then it's a reasonable assumption that the selling price of your goods will increase by the same percentage.
I.E. cost was $1,000, selling price was $1,500 - profit = $500
Add 20% inflation:
cost is now $1,200, selling price is now $1,800 - profit = $600
If you're in the commodities business, and we are, and you're also in an inflationary era then there's no better place to be because your profit actually increases - if it didn't then there wouldn't be any inflation, yes?
As with HUM, directors made some chunky low buys then a couple of months later it 2.5x bagged - I expect nothing less here from the CEOs recent 12.85p buys.
https://www.wsj.com/articles/the-u-s-wants-a-rare-earths-supply-chain-heres-why-it-wont-come-easily-dfc3b632?st=2veofdnzpfmyys8&reflink=share_mobilewebshare
We know who can help produce recycled RE magnets there too :)
LOL. Bit naughty that, SuperRoty. Not cricket to do that :)
You are right not to base your own investment decisions on BB comments .....It is strange that SuperRoty has sold out again as he had already sold out months ago :)
https://mobile.twitter.com/super_roty/status/1637885429377556480
As long as the begging bowl does not come out again unless/until some significant new developments take place - and at a price considerably north of the last raise price too - then I share similar thoughts to you, flundra.
I hope SuperRoty is mistaken in his decision to sell up. While I do not base my own investment decisions on the comments made by anyone on a chat board, when a long term holder, with a good investment track record that he appears to have (based on a history of comments made here and elsewhere that I have seen), then I do take notice.
The softening sp is a bit depressing. The Minister overpromised and the GBE deal has underwhelmed the market. Changes to the legal and regulatory framework may also be causing uncertainty, but it seems to me the fundamentals across the MKA business remain solid. There's also been no specific indication that the Songwe MDA and licence will be delayed because of any changes (and there's been no RNS). So I'm holding firm.
Ps I don't agree with the comment here that DWF/Trinity might be causing unnecessary problems. And MKA will not have written a blank cheque for their fees either.
Interesting
Ascend elements are primarily a lithium carbonate recycler, I wasn't aware they were also recycling rare earths outside of the heavy RE Manganese (which the article is likely referring to)
MKA/Maginito technology recycles NdFeB (or better yet Neodymium Iron Boron (NdFeB) magnets) so a similar market under the rare earth umbrella and electric vehicle / ev / green umbrella, but a different part of the electric motor(s)
Thanks for posting. Yes, interesting question.
Meanwhile, CoTec (CTH.V) racing ahead: Yesterday 10%, more than a week ago C$0.40, now C$0.55. Ok, still tiny afa mkt cap, and volume also thin, but nevertheless.