Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Thanks for posting - we all get upset about the lack of comms - but building blocks like these make you realise what is going on in the background. Not ramping - as I know we are invested and few people read this board but blimey this could/should be the monster of monsters. Gla
The full vid
https://www.cmialliance.com/post/cmia-hosts-u-s-under-secretary-jose-w-fernandez
Https://x.com/dinginvestments/status/1721574312644128848?s=46&t=6k4yselFuXGFcynpY-XSdA
There is no doubt that the trading in london is what drives the stock. trading volume is much lower in canada and liquidity can be an issue when selling. on the positive side shares buy and sell exactly at the posted bid and ask prices. on the aim you never know what price the transaction will go through at. the canadian market is a fine place to buy mkango
After a bit of advice if anyone can help me.
Really excited about the next couple of years with Mkango after doing my research and watching the latest investor presentations etc. About to pull the trigger.
However, I’m not based in the UK and the platform I have access to only has MKA shares listed on the Canadian exchange.
Does anyone see any major negatives with this approach?
Appreciate any comments or info if anyone has experience with this or any other similar situation.
Thanks, Richie
Mkango needs to release a vid like this!
https://twitter.com/60Mins/status/1717458428820705479
:)
meanwhile, Will will be @ Resourcing Tomorrow ... a big conference at the end of Nov
https://resourcingtomorrow.com/speakers/will-dawes
I agree unless you knew you would not know this company is also HyproMag....As far as the market is concerned this is a company waiting for an MDA for an non-financed potential REE mine in Malawi an unknown mining jurisdiction....and nothing else
Sadly the Board continue to fail to communicate what should be easy and exciting story. If you don’t follow the story, you would be oblivious to the fact that we start producing magnets in the next 7 weeks and even if you do follow the story, we have received no guidance whatsoever.
Imagine the contrast if CoTec was in charge, it would be super exciting and you wouldn’t be able to keep Julian quiet. Chalk and cheese sadly.
Anyways to add more substance....
'Developing permanent magnets value chain
Co-organised with SUSMAGPRO, ERMA, REIA,
Japan and the United States
16 November 2023
Le Plaza Hotel Brussels – Versailles room
Bld Adolphe Max 118-126, 1000 Brussels
'Japan and the United States' :))))
https://rawmaterialsweek2023.eu/images/system-files/16112023-Magnets-Events-web_v1.pdf
Sounds like could be an event of signficance
Https://www.investorschronicle.co.uk/news/2023/11/01/what-american-influence-means-for-uk-rare-earth-miners/
I'm surprised at no discussion here about this recent article seeing as it has where we are at relevance and possible likely financing outcomes but also the great disconnect of the MCAP here in comparison with both Pensana and Rainbow whom I know are both at different stages and all UK REE companies having different assets/ investment cases etc but come on which company with a measly £15 mill MCAP is about to be actually producing commercial REE's and their products ... oh that will be Mkango via HyproMag :)
Someone investing in this sector should understand the huge burden of mineral extraction to execute the "green transition" to "net zero". Perfect opportunity to make a few quid, but save the planet... not sure about that.
"It's about keeping the planet habitable"
It really isn't but must..have..inflation..
On a macro level the market has shifted totally away from risk. MKA carries risk, especially with being a non revenue generating (for now) resource company. People can get a guaranteed 4.5% on an easy access saver account with No risk. Wars or not, any company that's pitching itself on "jam tomorrow" is struggling. Not to mention the UK stockmarket taking an absolute battering. This is a market wide issue, not just mka.
Not sure "Africa" - that 11.73 million Square mile area with 54 countries would align in unison with "the east".
The United States Inflation Reduction Act is a big potential boom here. If hypromag goes for a US IPO after generating revenues in Europe then all bets are off.
I had certainly expected the MDA to be in place by now, but here we are.
Additionally The wind market is going through a melt down - a huge driver for Neodymium and other rare earth prices. Costs of building wind farms on contracts agreed at pre-covid levels are having to be abandoned HOWEVER, governments made a rod for their own backs with this green agenda madness So they are stepping in to make wind projects viable again. Once projects get up and running again and electric car demand ramps up higher, and old wind turbines start to be decommissioned for recycling then all of MKAs number will look fantastic. In the meantime, the market is risk off.
Personally, MKA is my biggest holding because the reward can be huge. But, it is certainly not without risk.
Just my two cents. Good luck all
I do wonder if this war(s) is now the determining factor in this investment. If Russia wins, and if Israel gets consumed by the Middle East, and if Africa look toward a new and possibly more powerful east for alignment, this will never fly. Will Africa wait to see who the best allies are? It feels like the whole market will s suffering, but with Mkango especially, are Malawi blatantly using the macro geo political environment to add pressure to the deal? To me it’s starting to feel like the outcome of these wars determines the outcome of my investment. I do hope I’m wrong.
'A company 80-per-cent owned by Mkango, HyProMag, was also named by the Minerals Security Partnership (MSP), a multi-nation group to channel capital into critical mining supply chains, as a key part of the energy transition for its magnet recycling technology. Mkango is also moving forward on a rare earths mine in Malawi and a processing plant in Poland.'
“It's not just about mining, it's about chemistry and processing [as well],” says Mkango Resources' (MKO) chief executive, Will Dawes. “Rare earth deposits are not as straightforward as developing a gold project or a copper project, that's why there are so few.”
China has had a stranglehold on the rare earths mining and processing sectors for some time, and the US and EU want their own supply. The US will require components of electric vehicles to have locally sourced parts to receive tax incentives, creating a two-track auto market. The government is rightly putting cash into the supply chain at the same time.'
https://www.investorschronicle.co.uk/news/2023/11/01/what-american-influence-means-for-uk-rare-earth-miners/
'Magnetic material conditions may also create issues for recycling, causing inconsistent properties in the end materials. The project consortium aims to tackle technology readiness level (TRL) 7-8 upscaling challenges, like impurities, high oxygen content and varied magnet compositions by project end. “End users will soon start realising recycled magnets can match or surpass originals,” notes Burkhardt.'
https://cordis.europa.eu/article/id/446792-a-more-sustainable-value-chain-for-the-sought-after-metal-neodymium-iron-boron
Someone asked about the quality of the recycled magnets the other day -
https://www.linkedin.com/posts/william-dawes-50881352_susmagpro-sustainable-recovery-reprocessing-activity-7125377719697072128-mYsI?utm_source=share&utm_medium=member_android
Quite vague but positive none the less
This is why getting Songwe over the line is so important, IMO.
The last raise was fundamentally about Songwe. We need to see a tangible return on that.
If we are to have another raise (which seems more likely than not I think), then we need the SP to be far higher than it is now, unless the BOD can secure a raise at a big premium (unlikely in this market).
If no further raise is required, irrespective of Songwe, then it largely becomes a moot point.
Although it would still be a credibility hit to the BOD in such a scenario, IMO.
Sort of agree. There's:
1) price of last transaction which is what Cotec currently use in the accounts and what you're referring to
2) what the market values it at. I.e. does the market agree with NAV or does the market apply a discount / premium because of a belief that management has overvalued / undervalued the asset
I would suggest 2 is the most important. Typically for asset managers (which effectively is what Cotec is) you'll see the market applying a discount to NAV. Interestingly the market values Cotec above it's NAV (currently +50% premium vs Jun'23 value of net assets). Clearly Maginito makes up part of that NAV. Don't know how much of the premium (if any) is attributable to Maginito though.
Either way at some stage you'd expect to see Cotec investors interested in MKA given the "cheaper" valuation. I can't see the share price staying at these levels when this all becomes more transparent.
For me one thing which might hold back a re-rate, and very much welcome anyone's view on this, is whether MKA is burning a lot of cash still and will need to raise money again soon. Difficult to know when cash flows from recycling will become positive and cover the corporate costs (and in the first instance if there is significant working capital requirement which will needed to be funded)
What American influence means for UK rare earth miners
The battle to control the energy transition is shifting into a geopolitical frontier, and picking up pace, as the US government muscles in on rare earth mining and processing – with plans to lure UK-listed miners to invest across the Atlantic.
Heads are turning with the promise of cash from The White House just as domestic stocks and their investors battle a handful of problems at home. Low valuations, the need for huge amounts of capital and the US's commitment to cut China out of the equation are all working against the traditional base of listed miners.
Meanwhile, UK-listed companies sputter along with low valuations and sometimes shaky balance sheets. To complicate matters, some are trying to build both mines and processing plants at the same time, requiring hundreds of millions of dollars of funding and work to be done across two or three countries.
https://www.investorschronicle.co.uk/news/2023/11/01/what-american-influence-means-for-uk-rare-earth-miners/
Hey.
Sorry - yes £15m / 6.17p plus whatever's in the bank and down the back of the sofa etc.
All the other stuff is just people talking mate - it's only when money changes hands (marking to market) that you can fix hard numbers against anything - all else is speculation :)
Bonker - when you say 8p is 1p above marked to market valuation how did you get to that?
The notes I have down is:
- The recent conversion of £2m loan into 10.6% Maginito equity values Maginito at £19m (but based on Feb'23 valuation principles)
- Which infers MKA 79.4% holding valued at £15m or at c.6p (but based on Feb'23 valuation principles, see below)
- This £19m Maginito valuation was agreed in Feb'23 and the "live" value must be higher (e.g. purchase of HyproMag Germany, US JV progress, MSP announcement etc)
- The latest Cotec accounts I can see (Q2 Jun'23 accounts) show Maginito valued at cost rather than marked to market
- The market values Cotec at around CAD40m which is is notably higher than it's latest reported NAV (Jun'23 NAV of around CAD26m which includes Maginito but doesn't include the US JV as a separate asset yet)
- On the September Cotec webinar which Julian Treger did, he mentioned that they think the Maginito US JV already has a value which dwarfs the market cap of Cotec (i.e. the CAD40m / around £25m market cap).
- On the October Cotec webinar Julian Treger spoke about the Maginito value on their books requiring revaluation given the developments since the latest valuation was agreed (but I'm not sure how this will be done; perhaps we'll find out in the Q3 Cotec report which last year was released 4 November)
Given Cotec have 5 or 6 assets it's hard to know how Cotec investors are thinking about or valuing Maginito & the US JV. But a good sign that the Cotec market cap is greater than latest reported NAV. Please correct me if I've got anything wrong!
Well we're currently valued precisely 1p above the already marked-to-market valuation of Maginito via Cotec so we're exactly valued at that plus cash-and-a-bit so downside is limited to say the least at 8p.
Dawes did say that the MDA would "unlock money" - you may be right about a sale - FYI and I'm still sticking to this - at the prior high for Neodymium that project is worth the better part of 40p here.
I have to second that, as much as I am frustrated with the MDA / Songwe at 8p we are currently undervalued simply on the HyProMag venture so, the as I said before the investment case is still strong
I think MGMT are putting the asset up for sale, hence why there is no rush or sacrifice to hurry up and get to 'production', and personally I think that is that is the best route as I don't believe constructing in Malawi would be a smooth process, both political and financial (inflation and debt issues)