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Finton I think you are spot on
10% seems to be the going rate now, which is a lot more than I expected earlier in the year (5%)
I also feel the govt is torn, half want it over the line and generating revenue, and the other are playing hard ball due to signing terrible deals in the past and an issue with corruption, IMHO they need to get over the past and realise that just because you signed poor deals, you cannot make up for this now, ever deal is still a negotiation and a partnership, you cannot take 'extra' from new projects and businesses because you got burnt by old projects and parties. We will find a middle ground, but I am happy we haven't offloaded the asset for buttons as I suspect many other BoD's would have buckled by now. So credit to the team if this is the case and we are standing firm.
Added a few more to round out the holding - and at his price, why not? The potential here is too great
Agree on both webinar and director buys
WD picked up £100K at 13p so he is OK but the rest need to add some volume
If you can't get directors to buy when the valuation, according to myself and everyone at the company (including those at Cotec) is absurdly cheap, then they will never buy. We also release results every 3 months due to TSX rules so the window should be open at the end of this month for director dealings
Webinar needed for what to expect in Q4
Lindian already have rights to mine I believe as they bought a Malawian mining operation. Hence the easy focus by the minister.
Perhaps that's what mka need to do.
I seem to recall a rumour/indication that the sticking point is the Malawian government wanting a 10% royalty rate on the mine in the deal as opposed to, I think, Mkango's 3% offer. That would fit with talk of the 'last few points' of the MDA negotiations and almost being completed etc
It's borderline deception for Alex Lemon to continue to push the "MDA right around the corner" if he's conscious it may take a lot longer. My view is that it actually WAS imminent (based on the articles appearing early in the year) and then for some reason the mining laws in malawi went through a change and the path to the MDA is less clear now. (Maybe they are delaying while they form a state mining company to take a larger stake in the projects).
The lady minister for mining seems to be courting Lindian Resources quite a bit now though and seems to have forgotten the projects already far progressed in Malawi.
Clearly that's just me hypothesising though.
Another webinar update is due in my opinion. If no news is forthcoming imminently I would like to director purchaes in the open market.
I continue to buy, so should they
Its sat there for over a year now, post DFS
Really is borderline criminal to have such a valuable and strategic asset, just sat there
As much as I would be tempted to just sell the asset and move on, thankfully we are now far from a one trick pony
So I am happy to stay the course (with Songwe) and let it play out, whether that takes another year or even more - the asset is strategically important to the UK, US and EU, you would think regardless of how long Malawi takes, the asset should carry a value north of our current cap 'at some point' in the future
It now appears the costs of controlling the asset are quite low, so I think we are good to keep it on the books for at least another 12 months
I suspect the market is overly focused on the Songwe MDA where the perception is we're still some months away. Similarly the refining and recycling side remains under-appreciated despite strong progress imo.
8p could well be recycled the question then is would it become a buyer magnet 🧲...id take some more
We*
Will be see 8 again?
I think that webinar was a missed opportunity the 6ix guy clearly was clueless about HyproMag and had done zero research he thought they used magnets to extract rare earths pft.....
Julian is good at answering questions but he is not good at giving unless you ask the questions! Seems only GLR asked a worthy question ...I would have liked to have known potential international rollout plans... Julian is off to Rhiad next month for example ...
Positives for Mkango are Cotec is well into and on this and is getting the message out and getting the investment interest too Mkango won't be owing Cotec anything until there is already significant value in the joint venture and the chances of grant funding are strong with US Gov and US DoD wanting and needing and funding such projects/plants and the magnet producers stateside are also already interested.....
Pretty much comes down to nailing the feedstock supply that is where Mkangos relationship with the likes of EMR is massive....
And yeah the Tyelsely commercial plant does look to be waiting on some more equipment before it is up and running but the Piolt plant has proven up the commercial viability which is of course why EMR has chosen HyproMag to recycle the wind turbine magnets that they will already be getting from Scotland, EMR has been working with HyPtpMag since at least 2020 so obviously have great confidence in the tech.
At least 5 supers! 'super green' is my fave :)
Here it is!
https://www.youtube.com/watch?v=335635FjLmY&list=PLtaY2C7EDECt8DOL2W_IelRenAhQhkKcl&index=18
The forecast price for early 24 is around 125 dollars so a touch down but you must look at the landscape change with demand down at present yet longer term forecasts are relatively unchanged.
Again though, there will be recycling revenue ahead of any mine decisions. The MDA when it lands will make the mine an asset with options.
Aha thanks, GLR ... I too presumed the 'commercial' plant needed to be fully functioning first to prove up to potential investors/partners but can see how the pilot can do that already...Those pics of the products etc
Super Excited! :) .... just need that bit to translate into the SP
Is someone able to advise (@GLR perhaps you know?) on the below:
- The DFS RNS on 5 July 2022 has a table showing pricing assumptions for first 5 years. From this am I right in thinking the DFS assumes an Nd oxide price of $210/kg ? The text before the table references pricing of $156.8/kg in 2022 increasing to $215.5/kg in 2025 and $266.0/kg in 2035.
- Does this compare to current pricing of $88/kg per Trading Economics and $75/kg per Metal.com?
- Hopefully I've got the above wrong, but if not does this not make Songwe uneconomical in current pricing?
It was interesting hearing JT (in today's Cotec talk) say he thought the JV already has a value which dwarfs the market cap of Cotec (c.£26m?) and he expects to make 100s of millions of dollars (albeit not sure if he was also referring to future JVs they are planning in iron ore & copper space).
He mentioned key part of Cotec role was managing [third party] funding which will involve continued marketing. Also mentioned seeing increased interest from investors. Eventually you'd have thought this will lead to increased interest in Mkango & share price going up
Yep so we currently have two planes in the UK
A small scale ‘pilot’ plant which works 100% as expected
A currently being built larger plant that will produce a minimum of 100t/pa est. for Q423
I thought the pilot plant was the larger plant, but not the case, that is being built now and should hopefully be commissioned
Everything works so I don’t see much risk here with the tech, that must be hugely valuable, JT said any investor who wants to equity fund the US JV can go to the UK and see for themselves
And yes, he was super excited :-)
Thanks, GLR... I missed it:( was having fun working in the rain so will have to wait for the video to be posted...Can you explain this though:
' the 'crucial' component of having a commissioned plant in the UK doesn't appear to be as critical now, as JT said that he personally visited the plant and any US investor can visit the plant, and see it working in all its glory, so the tech is now completely proven, which is fantastic news.'
Does this mean the Tyseley plant is up and running and operational already?
Another good call
One caveat I will get out of the way early, as to come across balanced, is that the lead times on the equipment needed to build and scale the plants, could cause a delay (Julian hinted this was an issue, albeit the only issue) so Q4 2023 IMHO is now a slight risk without clarification
With that out of the way, it's clear this technology is truly advanced, with over £100m USD already spent on it, the investor interest across the pond is enormous, with governments, OEMS and even magnet manufacturing companies very interested and eager to get a slice of the pie
I think by Y/E we might actually see some equity investment, from third parties (hinted) grants from the US govt et. al, looks like progress will now accelerate that the JV has been formed, the 'crucial' component of having a commissioned plant in the UK doesn't appear to be as critical now, as JT said that he personally visited the plant and any US investor can visit the plant, and see it working in all its glory, so the tech is now completely proven, which is fantastic news.
So we really are now at the the funding and scale up stage, what equity we will be left with once the JV is fully funded, we will see, but to start with an overall indirect 40% interest via Maginito is very valuable, especially should the US JV reach highs of $100m+ that would be almost 2 bags on our current cap just from the JV holdings (excluding our UK and GER plants, and any other ventures in the future such as Canada or Japan)
JT also said that there is competition but we are leading the recycling space, with the attractiveness being that our refining / production is extremely green
So ultimately, at £24m cap, we may be cheaper than ever, but the market will be the judge of that over the coming years.
Julians "Super Excited" sweepstake - I will go for 3.
Seems like only MDA news will unclog this stock. Come on Malawi, pull your finger out!
That the Cotec US HyproMag webinar is timed for Toronto stock exchange opening... possible news included? Dunno but we should get a clearer picture
Well my MKA shares are definitely an investment. The current investment objective is growth. In time this will move more towards income with progress of the various exploration mining refining and recycling projects.
This is an investment play once the business is generating cash and has no further need of raising capital.
This is AIM, where the mention of a casino is a good simile.
The MDA and then hopefully sale of Songwe at an attractive price will then make this an investment, as far as I am concerned.
I am clearly still long here, and I know how AIM shares rocket and plummet, sometimes on thin air. So I have no issue with that aspect. Anyway, it remains a waiting game for now. GLA.