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Interesting and quite positive imo.
If the only real issues are tax on profits and sourcing chemicals they're probably almost there. Moreover the dramatic-sounding whirlwind tax (which i think equates to our gentler-sounding windfall tax) is "only" icing on the cake stuff applicable if commodity prices really take off so hopefully can be agreed soon. Should have been sorted by now with scaled formulas surely. Important mind where the fiscal regime is all agreed to in advance for several years although everyone will be a winner on the issue. MKA will doubtless be having the same negotiation over REs prices as Lotus are for uranium.
It's coming.
Https://mwnation.com/government-miner-upbeat-on-kayelekera-agreement/
Would expect MKA to be at this level of detail and more advanced re negotiation too. Again states MDA will be done but now they have common sense to not jump on a specific timescale.
I am sticking to Q2 done and dusted if not before.
Decent posts from after hours and at the weekend, thanks crumbs for the detective work and stebol for the decent synopsis of MKA BoD and their comms. Agree wholeheartedly.
With the Malawian budget now rubber stamped and internal and external pressures mounting over forex and mining as being a catalyst i am more confident that the mda will be done by end of Q2.
Malawi cannot afford the stagnation
Not too sure Malawians would be overjoyed though paladin was a bad experience for them...we'll play that part of his bio downđ
No way he was exec for Paladin!
Iâm sure they will get on very well, was not aware at all he was involved in Paladin⊠wonder if he would be interested in venturing back into Malawi
I'm not saying anything is coming from this but Mark Chambers who is going to be pouring our Wills drinks in Singapore :
'Mark Chalmers is President and CEO of Energy Fuels, bringing a wealth of experience in mining and mineral processing to his position. Prior to his promotion to CEO in 2018, he served as President and Chief Operating Officer (COO) of Energy Fuels.
Prior to Energy Fuels, Mr. Chalmers was the Executive General Manager of Production for Paladin Energy Ltd. where he successfully managed the Langer Heinrich (Namibia) and Kayelekera mines (Malawi) and achieved significant increases in production levels while reducing operating costs.
Mr. Chalmers is an expert in in situ recovery (ISR) uranium production, having managed both the Beverley Uranium Mine owned by General Atomics (Australia) and the Highland mine owned by Cameco Corporation (USA). Additionally, he has consulted several key industry leaders in the uranium supply sector, including BHP, Rio Tinto, and Marubeni.
Mr. Chalmers holds a Bachelor of Science in mining engineering from the University of Arizona, is a registered professional engineer and served as the Chair of the Australian Uranium Council for ten years. Holding dual citizenship in the U.S. and Australia, Mr. Chalmers resides in Lakewood, Colorado with his wife while his two adult daughters live in Australia.'
Worth noting.... Mkango has Utanium plays in Malawi too... not to mention the much downplayed for some unknown reason Rutile resource that could rival or exceed SVM's
That is a significant event. Well spotted
just tp make it easier :)
'session 2:
14:00hrs a presentation by mark chalmers, president & ceo, energy fuels inc, usa;
14:30hrs âmkango / hypromag â raw materials and recycling solutions for the ndfeb magnet marketâ, by will dawes, ceo, mkango resources, uk;
15:00hrs a presentation by peter sherrington, chief financial officer, arafura resources, australia;
15:30hrs â 15:30hrs panel discussion
17:00hrs â 19:00hrs ****tail reception for all attendees kindly sponsored by energy fuels inc., usa'
all attendees are kindly sponsored by energy fuels .... ****tails on them eh, and i wonder anything else?
There are possibilities here Lynas trying but failing to acquire MP and Energy Fuels hungrily after REE projects
'With supportive US government policies, and US and European companies increasingly focused on security of supply, Energy Fuels is rapidly creating a new significant REE supply chain that can reduce Americaâs reliance on REEs from China. As part of this strategy, the company is actively securing long-term sources of REEC through offtake (Chemours), joint venture (Astron), and direct ownership (the companyâs 100% owned Bahia Project in Brazil). Through these assets and potentially others, Energy Fuels is building a world significant REE oxide supply chain that the company believes will be attractive to EV manufacturers and their Tier 1 suppliers.
Mark S. Chalmers, President and CEO of Energy Fuels stated:
âEnergy Fuels is working to secure future large-scale in-situ rare earth element projects around the world, which we expect to become low-cost sources of feed to supply our US-centric REE supply chain in the coming years. Earlier in 2023, we acquired the Bahia Project in Brazil, and now we are working toward partnering with Astron on the Donald Project in Australia. Energy Fuelsâ goal is to source monazite from the US and around the world and become a reliable, globally diversified, multi-decade supplier of US-produced magnet REE oxides to EV manufactures and other end-users. Our announcement today should help people âconnect-the-dotsâ to better understand the magnitude of our burgeoning REE business strategy. We are earning into an essentially âde-riskedâ heavy mineral sand project that is in Australia, has many years of detailed resource and project evaluation, and has all the main regulatory approvals in place or well-advanced.'
And then look who is in Singapore in April with Energy Fuels inc
https://metalevents.com/asian-rare-earths-conference
Going bust ? nah not yet :)
Well said Stebol.
I've got a reminder too.
Mkango board have never, ever said anything unless there is something important to say.
They never have been, and there's nothing to suggest they are now, a 'lifestyle' company.
They have never raised to advance other projects on the books, preferring to preserve cash and focus on what's moving now - in this case Songwe and the European (and now US) magnet recycling technology.
They've farmed out, JV'd and accessed grants to progress.
I'm sure the easy option at times would been an equity raise but they've avoided that as far as possible.
This is without doubt a long journey. I first invested when Songwe was just a hill with no holes in it, thinking, like many I suspect, of multiples come the PFS. To be fair the SP rose about 5 fold to around 36p I think and with hindsight, blah blah, blah.
Bottom line is, I trust the management to deliver and all the other noise around MDA and cash position is just fluff.
Keep the faith
So wouldn't really be selected if the 14 governments are going to let it turn to dust with no financing. I suspect watch this space.
Forgot about this:
"âȘ HyProMag HPMS technology selected as an MSP project
âȘ MSP (est 2022) consists of 14 governments, including UK and USA
âȘ MSP aims to ensure adequate supplies of minerals such as rare earths to meet net zero carbon goals
âȘ MSP regards resilient supply chains to be critically important for an equitable and sustainable energy transition
âȘ MSP aims to catalyse public and private sector investment in responsible critical mineral supply chains globally."
GLA
Https://mkango.ca/site/assets/files/4952/mkango_corporation_presentation_oct_2023_-_website_-_20.pdf
What to expect and what is being worked on. Why people need to relax.
Nothing I've seen - other than the SP destruction - suggests a bucket shop placing is on the cards.
The EU act passes really soon IIRC and, yes, there's billions of funding for ESG companies knocking about so I would be genuinely surprised to see something else happen - I'd also be genuinely surprised to see this close a week below 6p.
If there was a way we could reverse the CLN (which I think is possible) we could raise 2.5m euro today
Mkango raised ÂŁ3.5m
Provided a 2.5m euro loan to HyProMag Germany via Maginito
As of Sep 2023, not a single penny of this had not been drawn down
The Euro grant was 3.7m euro, we had to pay the rest (hence the CLN) to fund the German Pilot Plant
IF, and its a big IF, that plant can secure funding from elsewhere (the MSP for example, I mean if you want critical RE's why are you making a small struggling company stump up 2.5m Euro!?) then we could reverse this CLN, get an extra ÂŁ2m in the bank (GBP) and at the same time, secure lucrative funding for the German plant
It may be a long shot, but the BoD are as shrewd as they come
Should this come to fruition, I suspect the SP would at minimum double overnight
This is a potential long shot, nothing has been confirmed AT ALL in this regard and is total speculation
Wouldn't be surprised is what I meant haha
I'm not sure why automatic assumption is a placing. Strategic investment and grants were mentioned by mka last time around.
As to why not at 12p or higher, what is the pitch to the investor? Working capital doesn't quite work in my view
MDA will open doors to investment at the right time, progress with hypromag in uk and Germany ahead of us first.
As I've said before, I would be so surprised if cotec bought mka completely.
What I am not getting is if we were going to be short of cash now, why was a placing not done when the share price was at 12p back in December ?
Second thing I do not get if this is now good value for money as the majority including myself think, why do not we see members of MKA adding more money like all of us to average down ?
I am not disputing that there are many headwinds, both macro and (to a degree) micro, but IMO it is the cash runway uncertainty which is the fundamental reason why the SP continues to print fresh multi-year lows.
Regardless of what other outfits do, or have done historically, there is nothing stopping our company from issuing a statement along the lines that I suggested - assuming that statement applies, of course.
As I said before, anyone familiar with AIM has seen what we have seen elsewhere very recently, over and over and over again through the years.
It is not illogical to consider this as a potential factor at play behind the scenes.
The fact is, if they are going to need to raise cash via a placing (rather than an alternative financing route), then it would have been far better to have done so when the SP was at least 10p, preferably higher, not now.
Anyway, it is all healthy speculation at the end of the day. We all want the same thing here and I certainly prefer to be able to make praise, when it is justified (see my comments on ITV this morning, if you have nothing better to do, lol).
Have a good weekend all.
Some Warren Buffett quotes to keep in mind atm.
Price is what you pay. Value is what you get.
A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.
Just buy something for less than itâs worth.
Whether weâre talking about socks or stocks, I like buying quality merchandise when it is marked down.
Agreed - primarily I thought that was to get the facility over the line plus the expansion into the recycling. You'd think they would have done it back in November after the interims, or even in early january if MDA not signed by end of 2023. So for me it isn't clear that it is currently necessary. I'd need to see recycling production (which should cover general outgoings of the whole company once commerical at 100t/year - but that is tricky as we don't quite know (i dont think) exactly what magents are being created (price depends on strength and type). Depends on incoming i should think.
https://www.metal.com/price/Rare-Earth/Rare-Earth-Magnets
looking at CNY120-380 divide 9 GBPCNY (about 9 CNY/GBP) is about 13.3-42GBP/kilo
at 20t/yr (1.67t/month) this is GBP22,000-GBP70,000 per month
at 100t/yr (8.33t/month) this is GBP111000-GBP350,000 per month
minus opex. maybe opex equal price scrap recyclers pay to get it recycled.
Short term goal is to get that facililty up and running and an interim update on that would be welcome in my view. Aim is to start at 20t/y vols then in a matter of weeks/couple of months ramp up to 100t/yr volumes. By Q2 2024 I expect the I expect 50k odd and by Q3 around 250k a month.