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Announced there MDA a week ago and they are now trading below their pre-MDA level after a brief spike.
The GBE MDA terms are informative for MKA and there's some read across. MKA's project is also unique of course so the shape of our MDA could be very different.
MKA is still a stonking buy imo. The broad mine refine recycle business, demand for REs without Chinese involvement, and our other assets etc etc.
The GBE MDA terms per se seem reasonable. A 5% (tiny .45% local) royalty (even gross) reflects the benefits of a stable political and tax regime (the latter written in to the MDA for 10 years). If the starting point is say 0 to 15% it's fair. 10% state golden share fits well too and the 10% fully contributary option is on balance positive for future funding.
Why the tanking SPs? Presumably the wider risk off approach of the market to growth stocks like these, credit crunch concerns for funding GBE/Songwe and geopolitical concerns with Malawi's difficult recent history etc etc.
Wtfdik and all IMHO of course but definitely a buy at these bucket shop levels and gla.
I wouldn't be sweating what happens elsewhere myself tbh but then I know with absolute certainty that the DFS for Songe alone lays out a value that's 4x the current mcap whilst completely disregarding the recycling stuff, or the Uranium or other commods in the offing down the line, so I'm super relaxed here.
If China pull the Rare Earths plug - again - then this is a very viable 10x from here, again, on Songwe alone.
Looking at PRE shows the risks involved in financing big projects. #MKA needs a buy out to concentrate on recycling.
They vastly over extended the investment requirements and made no effect to produce a creditiatable investment case.
Never even bothered to produce a DFS after cancelling the BFS. Nevermind their thorium problem.
Your response to me is asymmetrical.
Anyway, back to what matters - the China pulling the plug on Rare Earths exports vibe is building:
https://twitter.com/BurggrabenH/status/1644326884426104832?s=20
China won't pull the plug, it's counterproductive.
They've done it before ...
https://asia.nikkei.com/Spotlight/Supply-Chain/China-weighs-export-ban-for-rare-earth-magnet-tech
And it backfired
And to be clear last time they blocked the export of product this time its the block of manufacturing technology and ip.
Can they legally do this, yes.
If there anything we can do to mitigate it, not really, building a mine won't help.
Building recycling hubs that then manufacture rare earth magnets can though... oh hello! :)
The recycling route will bring profits far sooner than the mining route as COTEC said
Japan gave China much of that tech and manufacturing ip
Worth a read:
https://japannews.yomiuri.co.jp/politics/politics-government/20230406-101783/
Recycling is extremely difficult and its going to be many years before there is noticeable quantity of material available to recycle.
Then there is the point that they are withholding the technology to manufacture the magnets, which recycling offers no help at all.
You obviously need to view this
https://www.youtube.com/watch?v=gYwuw_z1Siw
@SmartPunter, "its going to be many years before there is noticeable quantity of material available to recycle."
I beg to differ mate, first gen Electric vehicles are already coming to an end as well as some Wind Turbine tech. The Hard drive era is all but finished and there are literally stockpiles of the stuff. As a single entity myself I have over 200 hard drives that are now obsolete, and that's not even counting the few hundred I've sent for recycling. New SSD tech's are making them obsolete.
Question is will the company make some headway into Lithium recycling as well as part of the larger "recycle" feature, as well as others in the REE spectrum of compounds & elements. I believe it's something they're holding back on but will reveal as time goes on. Currently they want the Songwe issue finalised before announcing more deets with regards to the recycle avenue.
Morning.
Not making a great deal of sense is he? :)
The future must be bright if this is the best the pro derampers have to bring - hoping for a quick smash n grab for half of my new ISA money ...
"its going to be many years before there is noticeable quantity of material available to recycle."
To be fair may be right there if many years is 2-3
EU proposed legislation states that all electronics / appliances that contain critical minerals must be labelled for recycling, to meet the 15% per member state quota
A huge amount of e-waste etc. will be made available in the coming years, since completion for magnet recycling is relatively low and we already have two plants in pilot stage, I suspect just as this legislation comes into age we will have proven our plants technology and commercial viability, which will then light a rocket under the valuation of the company
Todays price is just a dip in the wider market, give this 12-24 months and id expect many multiples, the legislation is all there (passed in the US) if the EU bill gets passed, then we are right on the money and who knows by the time it does get passed we may have proven the tech in the UK
Im happy to be on board with the cotec guys (self made billionaires putting in their own cash) a rarity on AIM, our BoD have always done well identifying HyProMag at a lowly price of £500K to where it is today, and doing a fantastic deal with Talaxis who own 33% of the group dont forget
Of course being on of a few RE recycling companies, partnered with top auto manufactures, to get to 100t/pa of ndfe3 I am not too concerned, we likely have the stockpiles as per Blades post
The key will be scaling this up to 200t/pa etc. in 2-3 years when all of the labelled e-waste comes into play, then we could be looking at astronomical figures