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And super green!
I hadn't previously appreciated that Cotec is 70% owned by management and the bod. Julian alone has 40% which he's increasing to 50%! So it's basically their own money going in to the technologies. A good sign. CAD 30m mcap, assets currently worth 10x that, scalable to billions.
Https://www.youtube.com/watch?v=icwGr0A1KUc
Julian mentioning £££££££££'s - Super exciting!!
It's looking good.
Hypromag achieving commercial production this year, and the level of income streams that delivers is v important and much will turn on this imo.
I think Dawes and the bod have been very astute. Clearly they haven't quite been able to bring in a comprehensive funding package just yet, but it's coming....
25/3: "Discussions are ongoing with potential strategic investors, project finance providers, grant funding bodies and other sources to finance recycling scale-up opportunities and further technology roll-out"
The cost cutting and small raise to create the financial runway "to enable MKA to achieve key milestones for HyProMag" seemed very considered, well thought out, and achievable.
If the stars align, these milestones, the income stream, the ability to borrow against it, coupled with the strategic review helping MKA to do the right thing with the mine and refine sides of the business, should enable MKA to get a favourable comprehensive funding package for the long term. Then no more worries about raises and running out of money basically.
Multi bagger from here imo as the market wakes up to the opportunity.
We've just got to manage costs long enough to get to the promised land
In 2026 'HyProMag' will be worth $100m+
Depending on what exposure we have at that point will determine our rewards
Needle moving now.
Revenue generation has begun, low market cap cannot remain imho. Peers at multiples with no revenue
Price not moved yet but volume of stock available at 6.5p has dropped considerably.
All falling into place.
Buying not moving the needle at the moment but expect momentum to 10p over next few months.
Looking forward to next hypromag update. Less bothered about MDA now but that will be a bonus.
So as many suspected he was hired mainly for HyproMag purposes:
'Finally, the company has appointed Robert Harward, a retired Vice Admiral, US Navy, SEAL and a senior defence technology executive to the board of CoTec. Mr. Harward will be focused on supporting and guiding HyProMag USA in the application for US Government Grant support and long-term strategic supply of Rare Earth permanent magnets to US Government Prime contractors.'
Support and guidance basically meaning... I'll call me mates up and let them in on a good thing :)
Https://finance.yahoo.com/news/cotec-holdings-corp-provides-operational-110000047.html#:~:text=Senior%20representatives%20of%20the%20Company,including%20the%20Government%20of%20Qu%C3%A9bec.&text=Since%20its%20approval%20on%20January,ranging%20between%20%240.60%20and%20%240.69.
US involvement looking promising:
https://www.nyasatimes.com/chakwera-hosts-us-senators-hails-strong-and-enduring-us-malawi-partnership-during-talks/
Some concerns over budget re mining sector:
https://www.nyasatimes.com/dpp-mp-lipipa-reiterates-his-reservation-with-2024-25-budget-its-populist-but-unrealistic/
I just imagine a 100% recycled magnet economy in the EU and HyproMag potentially being the solution if they now can produce 100% recycled and effective magnets with no need for any raw material input...surely HyproMag is going to be getting a lot of attention from manufacturers that utilise RE magnets in their products now the CRMA is passed. They have legal obligations regarding recycling....
Still media silence from the guys but I reckon a huge amount is going on.... Whilst share wise I'll just nibble away like I have today :)
And:
'Recyclability of Permanent Magnets
One of the measures the Regulation provides for, in Article 27, is the recyclability of permanent magnets. Any company placing MRI devices, wind energy generators, industrial robots, motor vehicles, light means of transport, cooling generators, heat pumps, electric motors, on the market, even if they are integrated in washing machines, tumble dryers, microwaves, vacuum cleaners or dishwashers, will have to ensure that those products bear a label indicating what type of permanent magnets they incorporate, such as neodymium-iron-boron, samarium-cobalt, aluminium-nickel-cobalt or ferrite.
Most importantly, the Regulation says the following information regarding permanent magnets in products will have to be included in the digital product passport (exceptions may apply, for more information refer to Article 27, Paragraph 5):
Contact information of the producer.
Weight, location and chemical composition of all individual permanent magnets included in the product as well as the presence and type of magnet coatings, glues and additives used.
Information enabling access and removal of all permanent magnets incorporated in the product (incl. steps, tools, technologies needed).
Having easy access to these details will not only ensure the longevity of certain household products and promote refurbishment and repair practices but assist raw material extraction processes.
Magnets are vital components found in various household electronics (e.g. speakers, electric motors etc.) and are essential to tap into renewable energy sources. Speakers, for example, produce sound by the interaction of a permanent magnet and electromagnet. While wind turbines use magnets in their generators which play a crucial role in converting the mechanical energy from the spinning blades into electrical energy. In the case of heat pumps, magnets can be found in the electric motors that drive the pumps or fans. Being able to recycle these “common products” is a must to recover valuable materials such as neodymium.
Reinforcing this the importance and scarcity of critical raw materials, after 31 December 2030, a delegated act may lay down minimum recycled content for neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt in the permanent magnet incorporated in the products mentioned above'
https://ce-rise.eu/news/permanent-magnets-digital-product-passport/
'100% Recycled Magnets made with the HPMS Process
by Abeshaa Mahendran of Hypromag
Hypromag utilises the patented HPMS (Hydrogen Processing of Magnetic Scrap) process in order to liberate NdFeB magnet material from end of life components. Through the use of the HPMS process and recycling back to sintered magnets, there is a reduction of 98% in human toxicity and 85% of the energy used when compared to primary production. HyProMag’s current magnet manufacturing scheme uses a small addition of virgin material to ensure the retention of magnetic properties. The work presented herein explores the use of 100% secondary material for creation of magnets, for use in specific applications. Unlocking the potential for 100% recycled magnets has significant downstream benefits, while simultaneously unlocking additional opportunities in the marketplace.'
https://ukmagsoc.org/events/navigating-the-critical-materials-landscape-from-rare-earth-free-magnets-to-magnet-recycling/
Agree. Not least because talk of real Songwe value is simply for the birds right now.
Offer to sell it to China. Let it be known in the media that this is being considered.
Then perhaps 'our' team will show some backbone and ensure the win for our side. A victory for us geo-politically and as shareholders.
Or we can continue on this sunk cost fallacy. Pun intended.
Wonder how long it will be until people are bemoaning the fact that they could have bought shares in the 6s?
I'm sure many of us are in two minds about mining in Malawi particularly. On the cusp of something great or bogged down in African bureaucracy on a hiding to nothing. The strategic review is probably the right thing to do. It should at least bring the issues into focus and better enable some potentially tough decisions to be made. Imo.
Once again the board have demonstrated that they will avoid dilution of existing shareholders wherever possible.
It's been a consistent theme since day 1 and long may it continue.
Yep - everyone would love a decent return now but they're playing the long game - either suck it up or invest elsewhere.
I hope we keep Songwe and every other tenement but things change - if we can't get a deal that's beneficial then, regretfully, move on. The recycling is going to ne a monster in time
Indeed but worth pointing out that any firesale would likely be well in excess of the current mcap.
Nooooòoooo. 600million NPV for 20million?
There's no rush.
The review will be timings only. The plan will focus on recycle first.
A successful rollout means the mine could be financed internally.
Sell it for at least what it has put into it.
£20m+?
Stated :-
Mkango is launching a review of strategic options for its advanced stage Songwe Hill Rare Earth Project in Malawi.
Wonder what strategic means for them in the absence of an MDA anywhere?
Possibly missing my point. Even with MDA this is the worst time to privately finance a mine. Other governments e.g. China would finance the mine irrespective of the economics of a given moment.
Uk gov could back projects and with provision to release funds on a milestone basis. The money though needs to be ring fenced in the early stages.
Germany are doing it with hypromag, where magnito put in x and they grant match it.
Currently it's a load of balls that you must seek financing post milestones
PS: Make hay
The BOD told you that funding would be "unlocked" once the MDA lands - nobody is funding a mine project without an MDA ...
The UK always acts like this... we have amazing University techs that get piecemeal grants that take them so far but no further, and then someone swoops in and buys that UK IP. for a song... As in here, I will not be surprised to see US GOV or US DOD completely pay for all 3 US recycling plants taking the company right to the point of commercial viability so $50 million straight in no probs but from UK you are lucky to get near a million even though as you say this is a no brainer and needed for UK security and indendence