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Https://mwnation.com/govt-guards-against-exploitation-in-mining/
This article referred to the Bank a/c point GLR1990. Basically Malawi want exports proceeds in Malawi bank accounts. MKA don't. Malawi has a chronic fx shortage. One question I imagine the lawyers are fighting about is to what extent and how fair is it for Malawi to use the MKA/Songwe MDA to help cure its general fx shortage problem.
Bonks that's a really interesting thought about US requirements maybe driving MDA terms.
The US will have pumped the better part of $1/2b into Malawi via "aid" and building a proper embassy enclosure etc.
They don't do anything unless there's a profit at the end of the line and the new embassy clearly implies they expect to have vested/strategic interests in the country sometime soon and for a long time - 20 years per chance (2025+LoM)?
Presumably the US govt would be very closely linked to whichever "private" entity pulls this stuff out of the ground as it'll be being bought with public money so, yes, I can well imagine that "special" types of international bank accounts will be required for that and whoever that private entity ends up being - I bet Cotec know the who/where etc.
I doubt it will be Mkango and that's maybe why they went so large on the recycling angle yesterday cos they know the Songwe sale (at 40p+) is just a matter of time - likewise the CEOs recent £100k buy at 12.85p.
As PIs we're always adding 2+2 to come up with 76 but if all of this lines up as we hope then in hindsight it'll have looked pretty bloody obvious looking at 2023's smoke signals so far.
Agree B99
Actually, I read an article late last year (I cant find it now but likely was in the Nyasa Times) which stated that once the EISHA was announced the MDA would follow soon after, this is usually the process in Malawi
However, it also stated that the two parties had agreed on most topics, however the stumbling block was to do with 'International bank accounts'
Make of that what you will - I suspect either the EU or the US will make a move in the short term
Just last week we met up with the Malawi president to discuss Songwe, at the same time the US announced a $300m+ investment in Malawi
The plot thickens, I suspect all will be revealed before the 1st anniversary of our DFS which if I recall was around the end of June!
That article is indeed four years old but what of it - this is one day old and we're four years closer to production:
"§ Ongoing discussions with US Government, potential customers and recycling partners"
BTW - a point that occurs to me that I haven't seen anyone else make so I will:
The legal wranglings re the MDA may well be at the behest of the US govt because of their ongoing interest in MKA's Songe rare earths project.
Good morning all.
Ready for the next leg up?
BTW, this article (www.proactiveinvestors.co.uk/.../mkango-responds-to-us-government-s-quest-for-new-rare-earths-sources-221658.html) is nearly 4 years old (June 2019).
Tomorrow's webinar should give even more flesh to the bones I'll be watching:)
30% of the NPV is the rule-of-thumb sale price for Songwe GLR - trust me ...
Over the next 6 months I would expect a significant re-rate back to 25-30p
Pending newsflow
- MDA which unlocks enormous value at Songwe (NPV $559) would be worth the current cap alone (~15-20p in additional value)
- Creation of a US subsidiary for HyProMag/Maginito
- Realisation of value of Maginito (Cotec are currently getting the project/company valued as they are an investment company
- Feasibility studies / project start dates and funding for 3x NA plants (all funded by Cotec adding more value to the group)
- Partners and US government grants to help fully fund feasibility studies in the US (Cyclic metals got a $27m investment last week)
- First production in H2 2023 from the UK, MKA would then need to send this product to offtakers for analysis before ramping up production of 100tpa of NdFeB (which is currently valued at around $7-10m USD)
- Legislation like the EU critical minerals act being put into action which states that all member nations must source 15% of their critical minerals domestically from recycled sources / production (yes you read that right)
- The legislation above also states that within 3 years any products that contain critical minerals must be clearly labelled so they can be recycled with ease in due course
- Songwe MDA once approved will lead to either project financing (our cap is too small) or more likely yet an FSP (formal sales process) where we look to sell the asset, 10% of the NPV would be ~$59m USD much higher than the current market cap, would expect MKA to retain an interest or receive this and milestone payments (similar to the HyProMag deal today but with the shoe on the other foot)
- Pulawy separation plant and project financing, if this concludes, would add ~27% boost to the economics of songwe, not much to talk about on this one, we will see if it ever gets fully off the ground
So lots of value drivers to come in the coming months, why I fully expect with all the newsflow and increasing interest, we should be looking at 2x 3x from here in the next 6-12 months
Just bought 2 tranches ...total approx 3600.
MKA can move fast ..?
GLA
We haven't seen this volume for a while. Nice, though not spectacular increase in SP. I would expect TA experts to give a seriously positive interpretation of today's move. We'll see 12.50p (Will's price not long ago) very soon.
And that will only be the start of of a major, major move (40, 50ish?)
AIMHO off course.
Cheap as chips now, huge deal and makes this company so much more appealing. Real re-rate and derisking will come in a month or so when Cotec bottom out a 3 plant deal with US backing/funding/grants, there will be an open cheque book for this type of tech. Watch this space!
This is the first time Mkango Resources used the word 'Partner'
we should see another update very soon!!!
Ongoing discussions with US Government, potential customers and recycling partners"
(from todays rns)
"Ongoing discussions with US Government, potential customers and recycling partners"
add this.......
January 2023
US senate to block using China Rare earth for the Pentagons
Weapons
seems this is a no brainer
huge heads up from todays Rns for Pentagon to come on board!!!
should start re rate
I (from todays rns) 2020 "Ongoing discussions with US Government, potential customers and recycling partners"
add this.......
January 2023
US senate to block using China Rare earth for the Pentagons
Weapons
seems this is a no brainer
huge heads up from todays Rns for Pentagon to come on board!!!
should start re rate
Yes...was old news....?
...or is it selling pressure? Every trade's a sell too. I'm disappointed it hasn't moved more.
Sure that story was from 2022 more likely china will not allow export of rare earths.
Join the dots here...... today's RNS's confirms USA in discussion to partner MKA
U.S. SENATE BILL WOULD BLOCK DEFENSE CONTRACTORS FROM USING CHINA RARE EARTHS IN WEAPONS FOR PENTAGON
US senate to block using China Rare earth for the Pentagons
Weapons
seems this is a no brainer
Market missed this part!
Ongoing discussions with US Government, potential customers and recycling partners!!!
should start re rate
Belting volume - someone's clearly going to move her - mid/upper teens is a more viable new bottom for this IMO.
Huge buy pressure now
looks good for a hard bounce