Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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“ The BBC last week visited manufacturer Ascend Elements in Western Kentucky, where it has begun construction on the first phase of a $1bn (£800m) facility to harvest key rare earth elements from old batteries. The US government has provided some $500m to support the project.
The important ingredients in an electric vehicle battery will now be produced in the US, having almost entirely been imported from China.”
Forgive my ignorance regarding the approach taken to rare earth recycling , but is MKA’s solution competing with already established players like Ascend Elements in the US? Or are well offering something different?
https://www.bbc.co.uk/news/business-65393337
These delays in the permit are more than frustrating. With the inflation rate in Malawi at nearly 25% and the predicted inflation rate for 2024 being around 18%, I am having serious doubts if the construction of the mine will ever get off the ground. I have now exited my position and will watch this with interest from the sidelines. Fingers crossed the permit will land any day now for you folks.
https://www.google.com/search?q=inflation+rate+malawi&rlz=1C1CHNY_enGB824GB825&oq=inflation+rate+mal&aqs=chrome.4.69i57j0i512l9.10001j0j7&sourceid=chrome&ie=UTF-8
Selling drying up maybe/hopefully? Low volume today.
Makes you wonder if in fact it is the 2 law firms finalising the MDA on Malawi's behalf (that MKango are footing the bill for) that are cracking open tins or worms all over the place. Not sure how many "finalising the MDA" raises you can get away with.
I'd hope so. But unfortunately he's not in control of Malawian parliament
As the CEO dropped £100k on shares at 12.85p recently then you'd imagine he has a pretty good idea that there won't be another raise at a lower price.
Ads a lot more uncertainty to the mix. I had felt that we were close to the MDA being finalized but now I can't help feeling timelines have shifted significantly. The minerals aren't going anywhere but I'd hate to see another raise being needed and at even lower levels. I'm ofcourse hoping to be pleasantly surprised.
I think I am more cynical than you are, Vascular. I would be surprised if it was not simply a means of extracting more cash from companies, under the veneer of improving governance. I would be even more surprised if it yielded more money for the wider local population, rather than the usual beneficiaries. But I would be delighted to be proved wrong, as in the fullness of time, perhaps I will be, on this occasion anyway.
I am unlikely to stick around that long though, unless we get the green light PDQ, because a sensible default position to take when doing business in Africa is one of high alert and deep suspicion. IMO naturally.
I an no expert either. There are a few on this BB who may be able to explain more.
All i take from this so far is that there is presently no mining act agreement in Malawi, they are between the old act and the consideration of a new one = a massive government led upheaval involving voting through a draft of a new mining act (23) , with the very real possibility of it being kicked out of parliament and put back to more consultation . If it gets through it will have to go through a number of regularly committees to ratify it etc ..before being made law.
My gut feeling is its about money, its about future royalty's that a sovereign state like Malawi will charge for the rights to mine, drill etc and most importantly to make it more transparent to the public and the Malawi government ( whom in the past where not allowed access to certain information on mining deals , supposedly due to the nature of confidentiality). This way of doing business was a front for, and encouraged a lot of bribery, corruption and stealing of state monies (revenues) by individuals and organisations.
If they are serious and wish to clean up their act then i cant see them nodding through any new large mining contracts before this is resolved. But what do I know! Just a hunch.
Thanks Vascular.
After a brief read it look like quite a few more legal hurdles have been created before MDA can be approved. However, I am not by any means an expert in the level of legal waffle that's used in these articles, so definitely open to hearing other opinions on this.
Finton, more here.
https://www.opengovpartnership.org/members/malawi/commitments/MW0010/
there are several other Government commitments listed at bottom of page
Finton. This is a recent account.
What is means for Mkango, anyone's guess.
https://allafrica.com/stories/202304120195.html
Washington, DC
CNN
—
The United States will safeguard its national security, even if it comes at an economic cost to its relationship with China, US Treasury Secretary Janet Yellen said on Thursday.
“Even though these policies may have economic impacts, they’re driven by straightforward national security considerations, and we will not compromise on these concerns even when they make those tradeoffs with our economic interests,” Yellen said.
https://edition.cnn.com/2023/04/20/economy/janet-yellen-us-china-comments/index.html
I'm curious if anyone knows what the state is with the malawi mining act at the moment? Is it in a position where they can OK the MDA? Or does the repealed act still need to be replaced by a new act? Just wondering if I'm expecting an MDA or sounds from the Gov saying they have enacted a new law etc.
https://www.nyasatimes.com/mkango-rescues-and-supports-cyclone-freddy-victims-in-phalombe/
Apologies if already posted. Mentions MDA in the coming weeks at the end.
"Squeaky clean" - No chance!
A share to follow the money imo. There'll be a lot of people involved from the Malawian state, MKA and the teams and advisors. I'm sure they're all squeaky clean, but just in case maybe watch for sneaky buying ahead of grant of MDA/ML... Imo
Absolutely, bonker99. In the meantime, we just have to sit and wait and trust in the management. Which I still am, for now. GLA.
And/or selling options ...
crumbs: I would absolutely expect funding options to be ready to go if/when we finally get approval. All but putting pen to paper should have long since been provisionally agreed IMO.
Straight from the horse's mouth today - that horse being top ECB convicted criminal Christine Lagarde:
"Today the United States is completely dependent on imports for at least 14 critical minerals. And Europe depends on China for 98% of its rare earth supply. Supply disruptions on these fronts could affect critical sectors in the economy, such as the automobile industry and its transition to electric vehicle production."
https://www.ecb.europa.eu/press/key/date/2023/html/ecb.sp230417~9f8d34fbd6.en.html
Fortuitous timing for HydroMag and COTEC to be together in the US this week maybe:) ..also although the MDA delay is an sp drag and frustrating that asset only gains in its attraction as time moves on and you'd like to think funding options or otherwise realising value in that asset is well along the road and awaiting only for that Malawian sign off
https://www.cnbc.com/2023/04/17/energy-uk-identifies-areas-to-scour-for-critical-raw-materials.html?__source=twitter%7Cmain
At least it shows some are getting serious about future supply