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And it’s only 10am !!!
Probably the first/last time I'll ever see >$50k worth bought up to 7s on a 5p placing day lol
I wonder what's coming around the corner ...
Looks like the market likes the funding and the focus on the magnet recycling side of the business. It seems a no brainer to focus on that side. That's where there's an opportunity to use grant funding to unlock a lot of revenue.
I'll buy that narrative :)
Certainly retaining HyproMag IP is key and Will is not willing to let that go for very good reason so now it is down to the market to work out is there any value here... and looks like they are seeing it!... Malawi at moment is costing nowt just pay to keep licences so that can now become another game as I said earlier I'd be more concerned to be a SVM holder with their great mcap let them now do MDA battle I mean negotiations and if they shift the Gov we can piggyback onto the same style MDA unless MKA has another plan there of course which they may... looking forwards from hearing from the guys
Worth noting also, that Hypromag valuation some time ago ALONE was 8p per share.
That was pre US clarity (full funded by cotec via 50:50 joint venture), pre estimate revenue figures. Also discounts to NOTHING, the MDA and Malawi asset along with Poland processing potential.
My view is this should be trading north of 12p today now that financing has been dealt with.
Haven't seen anything like this since the covid days, unbelievable post placing strength
I suspect
- Jan go to market (10p) no interest
- Market now aware so short
- Push us down to 5p
- CEO puts in £150K plus other sticky holders (only £600k) total £750K to 'shaft' the city somewhat, as city and people on the side-lines hoping for a £2m raise at 5p
- Those rejected start buying last week ahead of placing annoucement knowing full well 5p stock is gone and even 6p is cheap
- Announcement today catches us retail investors out, but not realising there is probably £500K on the side-lines waiting to take stock which was 10p in Jan now 6-7p, so they are mopping it up
Hindsight! CEO actually made a really bold move to only raise £750K, of which £600K from existing investors really reducing any damage and causing a rush to buy cheap stock on the open market.
Not giving a ton of credit we are still at a ridiculous SP, but have to admit did a reasonable job with a very bad hand. (and we keep all of HyProMag)
If this goes blue today it will be a massive signal.
Cotec and indeed Mkango have both indicated HyproMag will likely when fully commercial especially in US list on US main market.... the potential if it is tied as I suspect to US defence industry will be massive.... no need for any Chinese RE magnets ever again for F-35s etc... think on it and all done cheaply and as environmentally friendly as is possible... no other tech can compete on that
"Whoever bought those 400k blocks clearly didn't know about today" - possibly they may have.
"Im expecting a share price fall today as the market opens, probably by more than the discounted 25% fund raise" - not so sure
Knee here reactions on headlines. Always read the RNS multiple times and try and put yourself in the Companies shoes
I could foresee Cotec buying all of MKA in future. I'm sure William doesn't want that at the current valuation, hence his personal contribution. They need to see it through to MDA and commissioning of the recycling plants, then it will be in a more favourable position for negotiation
I think it was the 5p hit for what is a keep the lights on and get some vital gear aspect of the raise that hit the guts but then when you think on it compared to not being able to raise at all... and knowing who has put money in and what having these funds now means and no IP is diluted then ... as the market is now doing it means a certain amount of confidence returns
your dead right about PR though... still think we will now get something from the guys in that regard
So much for 5s then :/
Said I wouldn't post again until the share price recovered significantly
Nearly 7p ask on a 5p placing, thats a 40% rise... so posting again :P
Have to be straight, MKA need a serious lesson on PR - there is a truly superb story here, Cotec do superb job of showcasing it and its only a 1/4 of their holding, we need to do much better PR. Behind the scenes I think WD does a trememdous job as he seems to find lots of substantial partners, but if you are then relying on retail for funds you've got to play both sides of the coin.
In defence, he has now put in £250K over the last 12-13 months, that's absolutely significant so I know he is truly aligned (even if they do have lots of options etc.) thats a major commitment.
Onwards and upwards by the look of it, seems the entire market was waiting / on hold since january to take a position. It was 10p back then so even if you waited and missed the miniscule 5p placing, you're still getting a nice discount at 7p for your patience.
The market was only waiting for this raise... I'm still in profit ... maybe it will not fall to 5p after all so my dry powder will have to go in at a higher sp... oh well :)
I think we are going to get some MKA media they have posted nowt on X or LinkedIN yet... vid incoming? I reckon
"The Company has completed a significant cost cutting exercise in recent months, whilst streamlining operations to focus on recycling, which has enabled a significant reduction in the ongoing capital requirements for the business"
They have always ran a very tight ship. This indicates funding through 24 for me when revenue visibility will be clear.
Sit back, enjoy and get more each month on pay day imho
The interesting angle is US defence.... Cotec told us about this and remember the Chinese have blacklisted selling any RE products to a list of US defence companies I do believe including the one Cotecs new superman used to work for
It is possible to now make 100% recycled magnets with full as-new magnetic potency and even then recycle those ... HyproMags research never ends...
Looks like nobody is flipping those new shares although most will have already been forward sold at 6p+ no doubt.
It's derisked the cash position - we all knew they were likely running on fumes so that's fair enough.
The DFS arriving in H2 will give us the profit numbers and the all important NPV numbers with Neodymium price sensitivity analysis etc - that's when I'll be able to apply mcap-per-site valuations to the mcap here - I'm flying a bit blind on the recycling side until then but it was the c40p valuation of Songwe with Neodymium at its prior high that caught my attention initially of course :)
All nicely timed this I must say - H2 could be a bit special here ...
It has derisked the business significantly as it move towards revenue in H2.
MDA will land and I would guess processing plant deferred slightly as the market is in the doldrums anyway.
I would like to see info on the margins from the 50mill PER LOCATION with that based upon 100mt per annum. INITIALLY.
IMAGINE, top end (350mt) on the back of rising NDPR prices predicted at the backend of 24 into 25.
Then Germany comes online. Then the US with all of that lovely grant funding
Will is just having to average down like most have had to here :) but that is a serious amount to put on the line so I expect he knows where this is heading or he is heading for a divorce :) .... the price of 5p is rubbish we can all agree but at least they did not end up needing to dilute their % holding of HyproMag- otherwise known as the goose that lays golden eggs
I'll be buying the dip - don't worry about that :)
"As part of this process, the Company has decided to launch a review of strategic options for its Songwe Hill Rare Earths Project in Malawi as well as the Pulawy Rare Earths Separation Project in Poland. Mkango believes this strategic review will help maximise returns for its shareholders whilst it seeks to expand its recycling business."
I'll assume the above means they're going to JV/sell Songwe/Pulawy following the MDA arrival and go 100% recycled unless others think otherwise - could be a relatively quick deal if the US DoD are interested?
Someone is clearly buying up the drop, it's basically back a couple of weeks.
I've been hit by a few of these crap placings in the last few months. I guess you either believe in the end game or not. If you do its a good price(whilst you cover up the existing value of what you've bought) and if not you bail.
Small Caps at the minute are a s.h1.t show. Those with money to lend have all the cards and, stupidly, a lot of teh small caps are leaving it far too late to raise - especially pre-revs companies.
There is no point crying about it. It's done. Still far from impressed.
Morning,
Not sure what I make of these alleged buys by the CEO tbh but let's keep with the positive.
That's put the cash issue to bed for a good while and, yes, presumably the MDA will conveniently arrive in the new tax year - chartwise, as I've shown recently, I expect Neodymium to bottom in the weeks ahead and it's a loooong way back up (4x) to its prior peak from here.
Still all to play for then be it with a bit of the usual AIM whiff.
That’s a tough hit for 4% dilution
They will get the MDA and hold it for now. NDPR set to rise over the coming years. In the meantime. recycle and earn revenue.
Its just a no brainer.
It was bleating around finance for months and not that has been dealt with and sensibly in this current climate with additional cost cutting to boot.
Buy while you can imho, I am
The Malawi licenses are not without huge value but it has become clear there can be no commercially viable MDA with the current Gov there and Mkango is simply too small a company to do everything by themselves ... The progress with the recycling and US opportunities and others that Cotec have attracted is far better to fully focus on ... But I hope we hear from Will and Alex soon