Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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There's many other magnet materials in the running but RE magnets should dominate for the rest of this decade as I understand it so I don't think MKA have too many concerns there. There's many other uses for RE's too of course. And on the Malawian mining side MKA's emphasis could switch to the rutile and uranium etc should demand for RE's reduce. Which cheaper and stronger non-RE magnet tech are you referring to btw?
If Malawi govt. doesn't get a move on, they will be overtaken by development of non-rare earth magnets (which are cheaper and stronger) currently being developed in the US and due for launch later this year. I will give it a few more weeks and then I'm out. Very disappointing.
I guess there won't be an offtake until MDA delivered. Then our whole shebang depends on if there is an initial contribution from that which could help finances which is usual with off take agreements.
I suspect this massive delay in the MDA is the cause of this financing issue which is compounded - as if there has to be a raise SP has also dropped so not as good. To that end IF there is one it will be as late as humanly possible imo. Come on Malawi approve the MDA!
I recall some talk last year of offtakes being considered but don't think any have been announced.
Hi Flundra - Yes. I guess it's what we all don't know. What exactly is the cash position on a week by week basis and also what the burn actually is rather than estimated. Can't be much on Songwe until MDA. Mainly Birmingham. Germany has the credit facility. Poland? And US has COTEC so I guess whatever we are paying into that JV.
Then there is the potential off take agreement for Songwe dependent on MDA - do we have one? I assume we are negotiating one? prices should be spot prices (or some short term futures?). Anyone know how an off take agreement works?
I'd like to see full steam ahead asap on Songwe as I'm sure MKA would.
Macquarie, Cannacord and others are forecasting RE prices increasing significantly in the next 2 years. Add to that the geopolitically concerning background of China's dominance in RE mining/production and RE demand in the global energy transition. And add in lead in times to build the mine and get it into production. There's no better time to be getting on with it imo so production can coincide with high demand and prices.
PRE announced decent debt funding for their RE mine today.
Ps MyIPA interesting thoughts on recycling. Imo you posit the right questions and updates will come but I suspect it's way too early for any income (or securitisation/borrowing against future income streams) from recycling to benefit any nearer term cash requirements. And cash will be needed in the next few months imo.
It does make sense to be related to the rare metal prices and there will be an uplift eventually.
MDA progressing:
https://miningtradenews.net/malawi-to-put-to-tender-oil-exploration-blocks/
"The report also says the Government will proceed in negotiating and finalizing Mining Development Agreements with investors on key projects such as Kayerekera Uranium Mine (Lotus Resources), and Songwe Hill Rare Earths Project (Mkango Resources)."
Obviously still no timeline on this.
It is great to be progressing in RE metals recycling in the meantime.
Vas,
No one seems to mention the drop in REE over that time which is mirrored in the share price. However....
https://oilprice.com/Energy/Energy-General/This-Year-Could-See-a-Significant-Rebound-in-Rare-Earths-Metals-Prices.html
I also look at the broader picture. The MDA is needed to financing today for the mine will not be on great terms compared to say 12 months time and there will be extensive due diligence by financiers.
Mka should focus on recycling this year and finance to keep things ticking over until commercially advantageous.
I am avg much higher but the sp is irrelevant, but the company, progress and future prospects are very relevant and will take care of the sp over time.
LewisW - Yes I think it will at some point but I think 13th Dec RNS or at least news stated mid-2024 for commercial quantities (20 then up to 100 tonnes/year)? But since 12th Dec it will still be processing material at the Tyseley Energy Park in Birmingham - probably by the remaining equipment/infrastructure has been commissioned by now 'in coming weeks'?
I guess it depends on how fast it will be producing, what the income is from the finished magnets, and if, hopefully, they also get paid to take the scrap (do we know or if we pay for the scrap? I would have thought we get paid).
From RNS 12 Dec:
"Strong interest for recycled magnets from potential customers and for recycling solutions from original equipment manufacturers ("OEMs"), and automotive and recycling companies"
This sort of sounds like we also get paid for recycling "for recycling solutions from" usually you pay for these solutions. Which I assume we can stockpile and so accumulate cash already(?) Do we know profit margin on these magnets?
Looks like the funds (if July 23 interview is still correct 12m of funds so funds until July 24 (end H1 24) ) are there until the plant is running at commercial scales (initially 20 tonnes/year (1.7t/month) then increasing 100 tonnes/year (8.3t/month) in subsequent months - for me that means within 2024 we move to 8.3t/month volumes).
Guess need clarity on that - and for worldwide raw material prices to stop dropping on Chinese downturn (do we know how the Chinese quant easing is going to affect things?)
I think Lotus MDA, if not agreed already, is close seeing as they do not even mention it in their placing notes and seem only to need to sort out energy agreements in Malawi, an issue Mkango does not have... not much clarity came from the Finance Ministers speech this week with regards to mining beyond they have their own Malawian mining company now... wow....as far as anyone knows it has zero budget :) ... Malawi is showing complete naivety in its progression to becoming a mining powerhouse yes it has the minerals but it does not have the ministers....Everything is however negotiable which I think at least offers some hope as it seems to me as though laws are bendable in Malawi the Gov might say one thing to the nation but actually do something quite different in reality
Https://m.miningweekly.com/print-version/lotus-to-raise-30m-to-accelerate-kayelekera-restart-letlhakane-development-2024-02-23
$30m raise by Lotus to accelerate restart of Kayalekera i.a. MDA close?
Yes. AIM explorers/miners in particular.
Like others posting here, I think the chaos and delays in the Malawi mining side of MKA's business has acted as a major but disproportionate drag on the sp. Stock market conditions have affected most small cap mineral exploration companies severely, but imo this shouldn't have clobbered the MKA sp to the extent it has because of the progress on the recycling side in particular.
I agree that the SP is most likely effected by the thought of more funding required sometime soon. However, if you look at the five year graph, just a snap shot of sp in November each year you will see that its not just company performance that effects the share price.
Nov 21 a high 37p
Nov 22 a high of 16p
Nov 23 a high of 12 p
Today 6p
Today, Feb 24 a share price of just 6p with all the progress that has been made , but again with a likely funding required you could argue that this share has done nothing but loose value for the past three years, let alone past three months and at whatever price you chose to buy - even with all the good prospects and news .
Alternatively, the years before 2021 where the opposite and the SP went up approx. 700 % !
Just goes to show what a game AIM is, and IMO when the time comes when the small caps come back from the dead and into focus again, specific shares like MKA will be some of the first to be rewarded, but IMO todays prices have less to do with company's performances etc and more to do with the present day Zeitgeist in the small caps market . Its a case of that old saying..... buy and hold. I am more comfortable buying and holding down here at 6p than at any other time in past three years.
Assuming the loan agreement (Maginito to Hypromag Germany) for €2.5m still exists and is undrawn, cash of €2.5m presumably has to remain in Maginito, and can't be treated as cash in MKA. So MKA need cash shortly (within the next few months) as I interpret it.
The weak sp likely reflects market jitters about the cash runway being largely behind us now. But there'll be no problem for MKA to access funding on decent terms because of the value and strength of the business. Imo. Still a buy.
Last update and video on mka website (July 23) stated 12 months of funding and as you say no drawdown yet. Uk hupromag also generating cash now/soon?
Ah yes it's more what's the split and how much will COTEC put in for them and how much do we need and what other funds will be available. had a spreadsheet somewhere might need to update it.
good weekend all
I would assume at least some costs associated with starting up the Brum plant?
I mean end of the year even assuming outlays are the same as during the DFS and acquisition periods. Likely longer. Not an issue at this point imo.
anyway, back to observing
Waiit! sorry -1 quarter as from sep 30 so 4.9->3.8 (max 1.1m USD/quarter as lots of that was DFS and acquisition in 2023), halfway through a quarter as well so estimated cash about 3.25m USD so until end of 2024 then.
who was saying end of Q1?
So taking from from the Interims of 30th September (quarterly,, so this has 9 months of info for 2023 in it): (confusing as for the DFS they use US$, then they also use £, then € but they also just use $.
$2,279,766 cash position (at 30sep23)
9 month loss $3,913,435 (01jan23-30sep23)
of which last 3 quarters $1,548,355 mainly as a result of the HyProMag and HyProMag Germany costs being consolidated post the HyProMag Acquisition (one off).
DFS done so much reduced expenditure on Songwe.
Maginito had agreed to provide a €2.5 million German Convertible Loan to HyProMag
Germany which will, if converted, result in Maginito holding, a direct and indirect interest of 90% in HyProMag Germany. At 30 September 2023, this facility had not been drawn down.
So at the moment ok with the loan 2.5m EUR (2.5EUR/=2.7m USD) and cash 2.2m USD and losses about 1.1m/quarter and 4.9m USD about 4-5 quarters? so end of H1 2025?
Anyone else get this as well?
LWHL - ok, thanks for responding. will look into it a bit more (only a small holding). gla
Simply the lack of clarity on the cash runway situation, IMO. I guess the BOD will have to update the market at some point!
Just checking in - anyone know why we went from 8.5p to 6.5p? Mining Agreement delays?
COTEC and Maginito are looking good. Do we know progress of facilities in DE/UK/US?
Hey.
I got spanked by the Zs but will be back this evening.
Out of HUM - will monitor.
Hi Bonker, I haven't seen any post from you on Tweeter recently. Is your account still working?
I'm also curious to know if you still own HUM.