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Https://mwnation.com/mining-contracts-under-microscope/
"He also said the government has identified “Quick Win” projects whose MDAs negotiations are at different stages, and some are near conclusion.
Among the key projects are the Kanyika Niobium, Kasiya Rutile, Malingunde Graphite, Kangankunde monazite project (rare earths), Makanjira heavy minerals sands and the Songwe Hill Rare Earth Project, which he said are progressing steadily."
Good post soda. I also think the burn rate will be a third less as per accounts at around 110k mark going forward.
This is all about getting to the revenue goal in H2. Going concerns always spook RIs.
I have some shares here and read the board in case I might learn something. But I do not like these boards at all so very rarely post (although this board is better than most). Posting on these boards daily in relation to a long term investment and over analysing every scrap of information creates insecurity, fickle behaviour and impatience which leads to bad investment choices imo. To me the position seems to be that MKA can create a source of rare earth magnets in the west through its proven recycling technology and is on the brink of generating an income stream. The west is crying out for its own source and it seems to me that the company is well placed to take advantage of that in the UK, EU, US (with CoTec) and hopefully further afield. I have had a cursory look at the accounts released today and there is a £1m loss that is true. But quite a lot of the loss arises from non-cash items. The cash spend (per the cash flow statement on page 4) is £512k which does equate to about £166k per month of cash spend. In fact, only £280k of cash was spent from operating activities, with another £227k spent on equipment.
I think the financial position looks ok. There is so much positive news expected in the next few months, I’m sure there will be opportunities for a small raise if necessary. And it may not be necessary
Lewis - how do you calculate burn rate of 166k/month?
They lost over $1m in the quarter Jan-Mar
I think you need to read the accounts again.
500k cash at end of march doesn't include the raise that concluded in April so add 720k to that. Also cost cutting and deferral of incentives.
Imho looking at 1.2million cash at April 11th. Burn rate will be less than 166k per month in jan-march.
My view 9-12 months to which revenue will be being generated from uk and potentially early revenue from Germany.
Relax, sit on hands if you must but I will be buying more tomorrow when my salary lands
With the glass half-full, MKA will unlock grand funding, the Recycling revenue streams will come online as predicted in 2024, and get strategic investment at a premium to the current share price with minimal dilution.
But when is AIM ever that straightforward?
Yet Will Dawes invested £150k of his own cash in the recent raise, so you would think he has some confidence of other funding streams coming on board.
I'll sit tight as well, even though my better judgement says I should probably cash out, on the basis of how other small caps have performed in the current market
To raise insufficient funds during a raise, and then only a few months later, flag up that the cash runway only extends to Q4, is poor management.
The TU states they can unlock grant funding, and they are exploring alternative means of raising money, but they should do it ahead of time, rather than flag it up, crash the share price again, then raise at a further discount.
This is a very frustrating investment. The recycling has so much going for it, and so much interest in the USA, but mgmt are determined to disappoint.
Not sure either. Going to sit on my hands for now and see what happens, I think.
Gut feeling is to take the loss, but equally being so underweight here, I (rightly or wrongly) feel more relaxed than I might otherwise.
In this credit environment, it is just so difficult to avoid being roasted alive as a shareholder in tiddlers.
Surprised at how few holders have voiced their opinions so far today.
25 March RNS potential funding sources:
Discussions are ongoing with potential strategic investors, project finance providers, grant funding bodies and other sources to finance recycling scale-up opportunities and further technology roll-out
They don't look great, it makes me wonder why they only raised £750k in the raise last month, as that would only appear to keep them going for 3-6 months, even with the cost cutting. I know revenue streams are expected in H2 24 from Tylesley but it looks tight to me. I can only presume they have some grants lined up because otherwise they will have to raise further. I doubt Songwe sale will be completed in such a short timeframe, particularly with rare earth prices so depressed
As at the recent Mining Forum, the MoM Sec talks of focusing on processing and adding value to minerals in Malawi. On the face of it, that doesn't sit well with the "refine" part of MKA's strategy (Pulawy separation plant intended to be fed by mixed RE carbonate from Songwe). Unless Malawi have already agreed it. I don't think MKA have ever said it's an issue but we don't want curbs on exports of product to Pulawy. The review is no doubt addressing the risks here.
Https://news.mijmw.com/govt-stakeholders-unite-to-stimulate-growth-of-the-mining-sector/
Wonder if we will be going!
Ever the total BS master - he's such a fraud.
Great update presentation.
Interesting however ftom musk.....BBC News - Musk opposes US tariffs on Chinese electric cars
https://www.bbc.com/news/articles/cq55zd2xjreo
The new presentation's v good. It's still saying H1 2024 for commissioning of the long loop pilot plant. An RNS confirming this in the next few weeks should hopefully give the sp a welcome lift.
https://mkango.ca/investors/investor-centre/
Yep. We do business differently in the West. Some might argue it is often to our detriment, but there we go.
Quite frankly, I am not convinced that the current crop of western politicians are that much more....shall we say selfless, or driven by a greater sense of national/patriotic/civic duty, than their counterparts in many of the third world countries. But this seems to be a time for weak men, who have naturally created these bad times.
Hopefully not too long until we get some strong men to fix it and create good times again. Wont be via the uni-party though, lol.
Who knows, at that time, we might actually get the Songwe MDA issues resolved. We can but hope. Good weekend all.
Bit sad the uk government could not just throw 5 to 10m gbp at this.
We have a great technology but again we make innovative companies struggle.
If we were in china they would probably fund a project to get it going or give a gov backed loan.
Are we able to sit on it indefinitely, without incurring any further costs? It has been so long now since I looked into the details of Songwe that I cannot remember.
But sure, if we can, then no rush at all, as far as I am concerned. Certainly better that scenario, than agreeing to something that destroys current shareholders, as we have seen in other outfits.
I just do not want to see any further cash deployed to it prior to the MDA getting over the line. I am sure most LTH's feel similarly now.
So if it is a choice between sinking more cash into Songwe to keep alive the hope of the MDA at some point, or just selling it and moving on, I would choose the latter - if a no cost stalemate/brinkmanship option is not possible.
To be clear, this reflects poorly on Malawi, not us, but that is neither here nor there really. GLA.
Songwe has been in maintenance since the DFS and environment certification. Really not sure of the rush to sell LWHL?
As per the recycling side project (as it was 2 years ago) times change and an asset emerges as a no brainer under the right market conditions. Songwe will rise again in the next 5 years.
Likewise Poland. The EU will need processing outlets, it would be best to feed from your own source but the supply chains will be there from non Chinese suppliers over the next 10 years. It will be mandated.
The key at present is progress on a commercial scale in UK, Germany and most excitingly US. Once we start getting the numbers alongside modest rises in ndpr this year and next, the excitement for this market will return and we will all look back and enjoy the ride.
All good here at the moment from my view. Perfect timing and setup.
Good luck peeps
Malawi is what I feared it would be, from a commercial point of view. It is beyond reasonable doubt now.
BOD need to set a clear deadline (even if only informally) and then dump it in a sale to China...sorry, I mean, a company with a Chinese corporate registration, and then focus on the other avenues.
Naturally give first refusal to a western outfit, by all means, but get it concluded, one way or the other.
This is not a serious country for global business, from what I have now seen. Certainly not doing business the way the west deems non-negotiable these days anyway.
Yes, it sucks for LTH's and all the cash invested into this venture, but how much longer are shareholders going to be willing to throw more good money after bad in this? Not a penny more into Songwe, unless we get the MDA, IMO.
Very true, they were going to take 75% to build out the asset
I do wonder who would take the asset now... Nobles decision to take equity has always been a very strange one for me (no point speculating but makes strategic sense for other reasons...)
If the mining assets dont cost much going forward, which we have been told they shouldn't then agree perhaps they will sit idle until more favourable terms or landscape exists
I am just not 100% certain management would turn down what we would deem a low ball offer at this stage, to offload the asset.
It has always been the plan to partner with a larger player to build out the mine. originally it was noble, but since that changed we have not been informed of the specifics of their plan once the mda is granted. i believe the framework for such a plan exists, we just don't know about it. the government delay is of course causing them to focus on the recycling now but I don't believe the mining assets will be sold off. there will be a partnership or joint venture to build the songwe mine. MKA will be involved
Silver maybe you should take a look at the new presentation, released on the website today
They certainly don't seem to be focussing on Songwe, with 4-5 slides at the very end of the presentation
Or are you on about the part where I said MKA does not have time for Malawi? Did you read the strategic review RNS? Now the presentation barely focusses on the asset?
Name one small mining company that has been a major success in Malawi in the last five years?
12 years is the past, they had $15m USD from Talaxis, all exploration and DFS. Now its time for actual talks, aka how much royalties the govt will get, what percentage they will own, how much will go to X and Y... No MDA 2 years this June.