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Instead of spinning your wheels Munch, recognise that Songwe alone is saleable tomorrow @ c60p following the July DFS.
Keep your eyes on the prize, the AIM mafia will keep the SP pinned as long as they can ...
Highlights
· US$559.0 million post-tax net present value ("NPV"), using a 10% nominal discount rate, with an internal rate of return ("IRR") of 31.5%, payback period of 2.5 years from full production (5 years from start of capital expenditure) and post-tax life-of-operations nominal cash flow of $2.1 billion.
· Songwe is now *****confirmed as one of the very few rare earths projects globally to have reached the DFS stage*****, with a full Environmental, Social, Health Impact Assessment ("ESHIA") completed in compliance with IFC Performance Standards and The Global Industry Standard for Tailings Management (2020) ("GISTM") adopted for design and management of the tailings storage facility.
· Long operating life of 18 years, with mining assumed to commence in February 2025, production ramping up from July 2025 and averaging 5,954 tonnes per year total rare earth oxides ("TREO") for the first five years of full production (September 2025 - August 2030), including 1,953 tonnes per year of neodymium and praseodymium oxides, and 56 tonnes per year of dysprosium and terbium oxides, in a mixed rare earth carbonate ("MREC") grading 55% TREO, generating nominal EBITDA of US$215 million per year.
· Neodymium, praseodymium, dysprosium and terbium are critical for the green transition, used in permanent magnets for electric vehicles, wind turbines and many electronic devices.
· Initial capital expenditure ("capex") of US$277 million (excluding a US$34 million contingency) for development of mine, mill, flotation and hydrometallurgy plants, tailings storage facility, and related project infrastructure in Malawi.
· The NPV excludes any value attributable to the proposed Pulawy Rare Earth Separation Project ("Pulawy") in Poland, which is expected to process MREC from Songwe, enabling Mkango to capture additional value via growing its integrated downstream business with a captive source of primary raw material feed from Songwe. The NPV also excludes any value attributable to Mkango's interests in rare earth magnet recycling.
· The results of the DFS for an integrated project, comprising both Songwe and Pulawy, are expected to be announced when both the Mine Development Agreement ("MDA") with the Malawi Government is completed for Songwe and the feasibility study is completed for Pulawy.
· In parallel, a major focus for the Company will be further optimisation of the Project with the objective of lowering capex and operating costs ("opex"), both of which have been negatively impacted by current market dislocations, creating the potential to reduce costs as markets stabilise.
Agreed, Cotec are only part of the story, 2million committed. Enough to keep MKA ticking until January as longer term financing is done.
How many others are at DFS with so many strings their bow.
Someone mentioned it in a post, mka are masters of simmering ahead of news/finance.
Really weird how they couldn’t do this deal before the last rns. ???
Also Talaxis shares unlock in 3 weeks and they will most certainly start to offload if there’s unrest behind the scenes.
Couple that with a likely market fall and many sellers bagging a quick profit after getting in on the 10s tell me we ain’t going anywhere soon.
Why could they do a placing ? Like seriously …what’s holding them back. They could have raised money at 17-18p through us investors. But actually thinking of it there’s just too much going on and the BOD can’t do anything about it !!!
5% is less than inflation !. no shares issued, it's not relevant whether the SP is 5, 10, or 20p. This is part of the earlier agreement announced in May and should be no surprise, disappointment or indeed excitement either--its just cash required to keep the dream progressing, when they run out of cash they will need more to keep going until such time as the project opens up, MDA and offtakes are agreed and the big digger starts scraping dirt. If we are all still alive by then then jolly good.
True colours, as if we didn't know already.
FUD
PS: Yes - wanting to be diluted at 14p instead of (maybe) 27p is an odd view ;)
You guys do make me laugh :)
There could be all sorts of deals shaping up in the background that the BOD are working on to send this bagging+ from here.
Cotex are happy to continue to play ball and, no, it's not a death spiral otherwise nobody would be piling in at sub-teens :)
Cotex are likely aware of possible outcomes here, hence the 27p payback in shares clause and the 5% coupon isn't too hefty as these things go so it's all good from my perspective.
Let's see if some wow news drops in the coming months.
Short term loan at a favourable coupon, no free shares associated with it, very good deal, cripes, inflation is worse that the %interest!!. . Expecting positive developments before the 2 year term otherwise more of the same until the project is cracked open and on steroids.
Not happy at all. Why couldn’t we raise £500k at 14p?
This shows to me they can’t because of huge internal and company issues. Cotec gambled £500k here to save their investment.
Something is not right at all. From going concern to convertible notes. Like wth.
My break even is 23p. Looking to exit at 17-18p
This is enough. If they didn’t get Cotec funding then what ? We hit 10p yesterday.
A much needed and comforting update, will be turning away from the chats today! A few that sold out might be a bit miffed.. expecting a lot of sulking
Robbie is a pensana holder and doesn't quite see there is room for more than one player.
I hold both and then some.
Robbie only knows how to be a rude and unpleasant character. His prediction of a placing fell flat on its face: “Dumbo, a placing is incoming as they are running out of cash.”
Robbie, it is nothing like a death spiral agreement.
It is a conventional loan for £2m, with a 2-year term, paying a 5% coupon.
The only addendum is that Cotec can simply choose to be paid back in shares, at a fixed price of 27p per share (which happens to be a 130% premium to the current mid-price of 11.75p), rather than be paid back in cash. That would equate to 7,407,407 shares, excluding any potential rolled-up interest.
Robbie, you do not understand what death spiral financing is. The Cotec deal is not a death spiral.
Lewis, it's a death spiral. No chance of them losing anything.
27p. The bigger picture is that this is a US ESG investment body. This in my view is precursor to larger funding package ahead of MDA or takeover. Note they are also committing a separate 1.5millip to the magnets project.
These guys don't throw away money on uncertainty
RNS: £500000 additional funding.
Have not read all of the RNS yet, couldn't find the conversion terms immediately. Could someone else clarify?
Another tranche of this from May:
"CoTec will invest £2 million (C$3.2 million) into Mkango by way of a two-year, unsecured convertible note ("Mkango Note") with 5% interest, convertible into Mkango shares at 27p each, providing Mkango with additional working capital as it advances financing discussions for the Songwe Hill rare earths project ("Songwe") in Malawi and the Pulawy separation plant project in Poland"
Continued investment at 27p. Wake up market. We are under 12p
That's about the strength of it ;)
Mr Market is at the door. He's got a buy 1 get 5 free offer for you. Seems like a good deal to me
Certainly seems so. 700k shares bought rapidly. I can’t even get excited. This better not be a trap. Something has to give here. Come on mka. Ffs
UP SHE GOES
:)
if I can find them I will buy more