Firering Strategic Minerals: From explorer to producer. Watch the video here.
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I'm sure Mkango will be 'negotiating' the best MDA deal possible the Global one we can look at as a benchmark -it was always going to be the first over the line
Is 10% equity and 5% royalty really that "awful" GLR?
Seems to compare reasonably with other regimes in Africa and worldwide. And particularly given where Malawi are, what they've said to date and the historic problems with Paladin. There's some decent tax breaks and fx account provisions to satisfy lenders in there too.
The royalty isn't but the equity is
They have been getting bad deals for many years, so its about time Malawi got a good deal even if the terms are less favourable for the miners
Then again at what price is the option to acquire another 10%? I did not see that part
I doubt the government will pay 10% of the costs?
To be fair if 10% goes into the pension fund which I suspect that is exactly where it goes, then at least you are aligned with the country more in terms of creating SH value
I still think 10% with option to acquire a further 10% is a lot but the royalty is right where I expected it to be fair
Maybe I am coming round to this deal after all
The equity option is a full contributary interest so they'd be in there with the pack
Agree Lewis. And I'd rather be the second or third MDA under Malawi's new 2018 regime, than first. MKA can learn much from the GBE precedent and negotiate smarter now.
If those are the terms, then those are the terms. If anyone is familiar with the arrangement that Centamin has with the Egyptian government, perhaps this will seem more reasonable. Get it signed and get this done, BOD! Then sell the asset (presumably via auction, or something similar) and use that cash to focus on the main business and hopefully never need to do a fund raise again. IMO tight credit conditions are going to last for a fairly long period of time; certainly for the next 24 months at least. Unless the central banks blink too soon, in which case inflation will probably be so high for so long that everyone will be distracted with other stuff.
what are you guys talking about with the recycling being the main business???? That is completely wrong. Stop it. Mining the ree at songwe is the main business and they have other promising mining plays in malawi as well. This is a junior mining company that has spent the last 12 years developing these assets. They are a minority partner in a a startup looking to recycle permanent magnets. That is in no way their main business and never will be. Stop saying that, it is false and misleading
Fair enough - I misspoke. I see the recycling business as being the more attractive, more reliable, long-term revenue maker here. Just an opinion, which I trust I have now made clear. No need for quite such hostilities, silvermaple.
I guess i'm a bit on edge with all the delays here. it's just that there's been a number of posts lately proposing the sale of songwe for a very lowball price and after being invested here for so long that is hard to hear. to me all the value here comes from providing a non chinese source of neodymium for ev market. everything else flows from there
There's also still the mysterious rutile asset lurking in the background.
I can appreciate that sentiment. Been in the same boat with a few AIM stocks myself over the years. The only thing I would caution against is falling in love with the stock (any stock for that matter). Not saying that you are. Perhaps because I have only been a holder here for 10 seconds, I feel less attachment and I see serious global/macro issues that are growing, not receding. I certainly share your concerns about the delays and that is why I made my post a few days ago or so about not letting the clock run down, because in my firm opinion, the government can wait longer than we can, to be blunt. We all want a great deal, but for me, I do not want to hear management say that they are negotiating hard for shareholders in X months time with a deal still un-concluded and another raise required. We are a small cap, not a major, we lack the cashflow to potentially play hardball as the big boys can and sometimes do. If we are resisting the same terms as per the Global deal we have all had a look over now, then that IMO would be a mistake. But we have no idea if it is that. We are basically in the dark for now - and I think that is where many of us are going to become increasingly frustrated while that state remains. FWIW, I am still long here, but not 'come what may' long.
Did you not see the excitement on.possibillity of MDA this will rise fast on positive MDA news and now we know Malawi is finalising MDAs....but even bigger gains will come from recycling COTEC said profitability will come quicker here than from a mine...relax rare earths are neeeeeded