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Quite the sell off YTD, could be one of three things
- Placing (forward sold)
- Large seller had enough, taking us down a few pence before buyers get attracted
- Both
The buying today between 7-8p suggests to me if there is a placing, it wont be much lower than where we are currently positioned. As MKA is pre revenue, it's clear we will need to raise funds before we start making revs/profits from the recycling plants, as much as 20tp/a could bring in even at todays supressed NdPr pricing (although healthy relative to 2019) around $60K a tonne (So about $1.2m at current production) it wont be enough as of yet to get us through to Q3/Q4 2024, and that's if we just want to plod along, id rather we keep raising as long as its for projects that can add significant future value
If we do raise, it would be the method of the raise and the participants that would be key. I know its tough right now for anyone, and WD did add £100K at 12.9p so I suspect he may struggle this time around to add another 6 figure amount (I am not aware of his finances and don't care) DL added £700K at one stage, a huge endorsement for the company (24-27p) so we do have directors who can fund the day to day operations (Upon checking the Malawi delays, it doesn't appear to be that costly outside of obvious delayed future revenues, by my calcs it was around £250K per Q give or take when you strip out General Expenses / Admin)
So if we are to raise, bring it on. I trust the BoD to find and create more value. In the last year alone, they have bought 100% of the prized asset HyProMag, they've raised funds to deploy our technology in Germany, allowed us to take part and fund partially a crucial wind turbine project and more importantly, successfully begun commercial production in Birmingham (Proven the Tech) - they've also established a solid relationship with Cotec who you can be sure will hit the ground running with this in the US (they've already paid for equipment out of their own pockets)
The market has been extremely difficult, our basket price for Songwe has reduced considerably and the territory is dire (used to be good but not anymore) with inflation raging at 30% and international banks debating whether or not they should have any exposure there. hence raising money for both the company and our asset in this market is difficult.
Of course, post revenue a company may still want to raise with share capital, lets say we do scale up to 100t/pa by H1/Q3 2024, then that $1.2m becomes $6m per annum - large institutions may want a slice of the action and put double digit investments into MKA (Or more likely, its subsidiary Maginito) skyrocketing the valuation of the company and its technology
In summary, did Mkango have a good year outside of its share price? Mkango had an absolutely fantastic year in 2023 and there's no reason to believe it wont continue that progress in 2024. Bargain!
Nice summation thanks GLR - it's like we are in a parallel universe - when you look at the golden irons in the fire compared to SP. I am, crazily, taking comfort from the board's silence - why panic react/comment to short term price movement (although f severe) when they know they are holding the aces which long term will come through and dwarf the current fluctuations.
Looks like someone is being let back in here - I'm not surprised at sub £20m mcap ...
Certainly seems that way. The same thing happened when it was marked down to 8p in q3 last year.
The reversal was rapid
Oversold on the daily - 4x from this position are relatively common.
Mad to buy in now....raise set to be under 6p.
Be patience and wait for your entry.
Well now I'm very interested ...
Raise is coming as most know and expect.
Do you reackon it will be at this present price?
Plenty of surprises lately in this markets.
Lol, speculate as much as you want on a raise if it makes you feel better. we'll see...
Marc74, like most on here I’ve no idea what price they might or might not raise at. It just seemed strange a newcomer seemingly stating facts?
:)
Well I've added - again - so come get me.
Leave some cash to buy lower.
Can't say no-one gave you the heads.
Good luck all :)
Cash should last till at least April so no imminent concerns. If MKA are raising now, it shouldn't be at a discount at all from current levels.
It's probably at 12p again.
Hence the sockpuppet show.
I will remind you of this post :)
Just hope folks are wise and know how this stuff works and dont fall for your nonsence posts of higher raise.
Everyone has to make their own decisions - if others want to wait then that's fine by me.
Thanks for the tip Marc74, but without any hard evidence it just seems like a 50/50 chance to me.
Quite - 7s hardly feels like a gamble, even if it was going to go to 5s as I'll be holding for years anyway.
Already held since 2016.... seen 5p bounce off 12p, then back to 7s, then bounce off high 20s, and then back down here again. We are sat on a multi billion dollar asset, enough is enough with the radio silence from MKA. Get that MDA over the line, get it funded and start extracting. FFS.
Agree CB 19 months delay now... which is beyond ridiculous
Malawi for me take a lot of the blame, if we were the only MDA outstanding I would think the blame lied more on our BoD but since there are four MDA's outstanding and the only one that did get signed was on terrible terms (10% royalty and a huge tax) I can see why the countries mining sector is almost non-existent
Hopefully we get some good news regarding the recycling plants and can focus on something else
Ball is mainly in Malawi's court imo. I don't think MKA can do or say much more atm. Lotus give frequent updates but only ever to say they're still at it and the indicative timeframes have all proved unrealistic. I think we just have to keep pushing but must also wait whilst a developing nation gets its act together.
Principal MDA issues for MKA's MDA are royalties, fx and the extent to which proceeds have to go to foreign or domestic bank a/cs. MKA's hands are largely tied as funders requirements are paramount.
Re Globe, Malawi gets a 10% free equity stake and 5%/0.45% central/local royalty.
More lambs to the slaughter ;)
Sudden bit of interest - but still a pitiful price. Gutting newbies are getting in at this level when I imagine we are all averaging a lot higher thn this!
All noobs are welcome - great timing for them - I stopped sweating my average on genuine investments a long time ago, 7p, 10p, who cares, if you're in within 30% of the bottom then you're likely to do very well for yourself.