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My apologies, flundra. It was I who entirely misunderstood your comment.
Not enough sleep and not enough coffee, clearly :)
Although GLR makes a strong point: we have heard all this before, over and over again and like him, my take on that article differs from yours.
But I am sure we all hope that your more optimistic take proves to be the correct one. GLA.
The Important part comes from the Ministry'Chilima said: “On October 6, 2023, the Government held a meeting with Mkango which agreed that the decision to take the MDA to parliament was receded and that the Government and the company will provide appropriate alternative legal provisions in the MDA.”
“We also agreed that the Government will look at all the related issues requested by Mkango Resources and select those that the law provides for an option to exempt or reduce and that we will communicate on the final position.”
“We also agreed that all the legal matters will be assessed by the office of Solicitor General (SG) which will then provide guidance and recommendations; and once all the issues are agreed upon, the MDA will undergo final scrutiny.”
They are listening to Mkango do not expect Mkangos MDA to be the same as Lotus's both have diffrent needs etc..... Lindian now want to negotiate their arrangement and Soverign will be next and my god does Malawi love that Rutile project but they all will have to worn for the investors or they will have no mining industry ...
Lets hope we do, but that article suggests both sides are WAY off
They also said the MDA would be concluded by June 2022, Dec 2022, January 2023, MKA said in Feb 23 'in the coming weeks' IMHO nobody knows when this is going to be signed within the state, company or else.
The NRCC has no power over the MDA and he even moans about that their chairperson even moans about that but the important part is even he said this:
“However, let us wait for these mining companies because we have agreed with the Attorney General, Mining Ministry and Ministry of Finance that they will conclude these MDAs by end of this year.”
Nothing undiplomatic about the language whatsover. Unless you are referring to the lack of discretion concerning the negotiation process by said politicians?
But I guess it is possible that some people who do not have experience of doing business in Africa may draw the wrong conclusions on the basis of mistaken impressions.
I had to look up NRCC, so your own comment speaks volumes.
No matter. I will be delighted if you turn out to be right about this. But you are entirely wrong in what you allude to in the first part of your post.
Seems to be NRCC with the negative undiplomatic language again. Odd. I don't know how important they are in the process. Might be a good cop/bad cop thing. The impression I get is that it's happening though and pretty soon. Lotus first.
Yeah, politicians gonna be politicians. Although Africa tends to take it to another level.
It is a big continent, but as far as the way business goes, well, a lot of synergies, you could easily conclude.
I think in time some of these countries are going to regret some of their decisions when it comes to who they choose to partner with. Geopolitically speaking in particular.
Naturally, it will be the poor masses who pay the price for the decisions of their politicians. It was ever thus.
Anyway, it continues to remain a waiting game here for now. GLA.
Monica is on side and that's what matters.... everything is negotiable there... including the % of the mine the country takes or doesn't....if Mkango sign it off it's because it's doable and not a write off FFS 🙂
Hard negotiating is fine. Results are all that matters though.
Failure is failure, however you try to dress it up.
So the BOD need to make sure they do not fail.
I agree, and I also think that Malawi have invested nothing in MKA yet want their cake to eat.
MDA is good to get over line but short term money is not the mine. It is not a good time to raise finance for large cap ex projects.
The magnet/recycle is the play here.
FWIW that politician has been playing that card for a while, reminds me of some UK equivilents all of which prefer to stifle progress for personal agenda
Nobody knows the truth other than they - what they actually say of course may be a million miles from the reality.
Yeah, if one takes the words of the politician at face value, and the BOD here stick with that demand, then it is a black mark on the BOD and a hit to their credibility too, IMO.
If it was an attempt at bargaining, with a more viable strategy ready, in the likely event that these hard ball efforts would fail - with the ultimate result they do finally deliver by December - then it can be overlooked.
On a seperate note, it does not seem particularly professional (to put it mildly) that the politicians seem to be sharing all of these details of the negotiations so freely in the public domain. Hey ho.
There's hardball and then there's this:
"Mkango proposed the use of other laws not of Malawi and is seeking zero rated corporate income tax for 10 years"
What possible reasonable basis could they be insisting on no corporate tax for 10 years FFS - that's over half the LoM!
Oh well - love to see 7p here if possible chaps!
And yet the article, as kindly shared by crumbs, puts a bit more meat on the bone - and demonstrates that it is clearly not a fait accompli yet.
I stand by my earlier comments.
That's the end of the MDA for me
Scratching it from the investment case
As long as the value and potential of the recycling technology continues to outweighs the current market cap, which it does, then this remains as it always has, a viable and solid investment.
As for the MDA if it is agreed on any form of favourable terms then I will be pleasantly surprised but moving forward I am now completely discounting it, and according to the share price at 8p, the market has already discounted it so no harm done to the current valuation, just a shame for future value creation.
At least we are not adhering to these terms, many a company would have met in the middle or given up too much like Lotus, 5% gate 10-15% interest and 30% tax.
Maybe the Govt would be better just making an offer for the entire project?
The #Malawi Ministry of Mining says it is expected to sign Mining Development Agreements (MDAs) with #UK firm @MkangoResources to start mining #rareearths at Songwe Hill in Phalombe by December this year #MKA https://twitter.com/Share_Talk/status/1719336490717560844
I am sure they could find a company located in the East that are willing to do business in a manner that aligns with the way they do business in Africa. If it comes down to it and there is no other option, of course.
It would not be my preference, but a Songwe deal needs to be done, and something financially tangible needs to be the result. And soon.
Id think no MDA would mean no deal it is clear the MOM intends or expects to sign the MDA by December.. Mkango won't be signing an MDA they can't sell just to keep us happy they have to be able to sell it to partners/financers....these MDAs will also be a blueprint for the likes of Sovereign.... personally I'm just glad to hear it's getting to the end game...will be nibbling away all the way there 😉⛏️
Well, I will judge them on whether or not they get Songwe over the line. Simple as that.
A no deal scenario will not be acceptible, given the time and costs incurred.
The other stuff, while highly encouraging, is not what the money from the last fund raise was for.
Unless we are not going to need to raise funds again, even if Songwe does not happen?
Get a deal on Songwe done, BOD.
Sounds like Mkango have hard bargained to me...
Thanks for posting. no wonder we are at 8. lucky to be holding there. unbelievable. surely after all this time this cannot be the state of negotiations. we absolutely need some kind of statement from management. this is total incompetence.
Good to see Toplocks. Hopefully more PI's will take the leap based solely on Hypromag at this price. Songwe could well be a nice bonus for you if /when it lands. GL
Hi Bonker
Thanks for that, I’m more into recycled materials and recycling, don’t know a great deal about Malawi.
I’m expecting some good news re potential finance from the US re the set up over there. They are throwing money at innovative tech firms and this is in the top drawer.
GLA
Welcome - about time we had some fresh blood here - doesn't look possible for it to go below a £17m mcap/7p so it's just waiting now - I still anticipate a 10x here in time ...