London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Last post: JoeCole, 18 Jun 2024 22:14
I think the location is significant from a US defence perspective. When I was doing my research I was sure I read that an ex Admiral of the US Navy was part of the Cotec board.
Is Lockheed based around there and others. I might be able to add a few more soon but want an Mka update re UK and Germany.
J.
Watch this video from youtube by Money of Mine from 12/06/24, entitled WHEN TO BUY MINING COMPANIES ( STEPHEN WOOD INTERVIEW ). From 21 minutes to 29 minutes. Tell you all you need to know. Would like to hear what other members here think where we are headed.
GLA
Texas, now how significant is this location???
MP Materials & Lynas are 2 big players in this space ( rare earths) and could merge one day.
It cannot be a coincidence, that MKA aka HyProMag USA LLC as selected this area. Was it somebody else ( recycling partners)??
News from last year:
Lynas has had its US government funding more than doubled as the Biden administration accelerates its mission to secure supplies of rare earths.
The Defence Department will now contribute $US258 million ($384 million) toward construction of Lynas’ heavy rare earths refinery in Texas, up from the initial pledge of $US120 million in June 2022.
Nice of Cotec to at least keep us updated!
Dear Investors,
I'm pleased to update you on the dynamic partnership between Mkango Resources Ltd., Maginito Limited, and CoTec Holdings Corp, as just one of CoTec's exciting investments. This collaboration is propelling forward the advancement of downstream green technology opportunities within the rare earths supply chain, with a particular focus on NdFeB magnet recycling and innovative rare earth alloy, magnet, and separation technologies.
Since the announcement of CoTec's £3.5 million investment into Maginito in 2023, our collaboration has been gaining momentum. This investment not only secured CoTec a 20.6% stake in Maginito, but also paved the way for strategic collaboration in commercializing downstream rare earth technologies, particularly in the United States.
A new US subsidiary, jointly owned by Maginito and CoTec, HyProMag USA LLC. is now established and as part of this initiative, bankable feasibility studies and site selections are now a third completed with the first plant location focused on Fort Worth, Texas. Concurrently, we are accelerating discussions with potential customers and recycling partners to support the roll out of the business and are excited by the early feedback we have received.
HyProMag's revolutionary Hydrogen Processing of Magnet Scrap (“HPMS”) technology is central to rare earth permanent magnet recycling. Developed through significant R&D expenditure at the University of Birmingham, HPMS offers major competitive advantages in the sector. This includes the ability to sustainably manufacture rare earth alloys and permanent magnets securely in the United States with a significantly reduced carbon footprint compared to conventional extractive mining-to-production processing.
In parallel and supporting the US Feasibility Study, HyProMag UK continues to operate its pilot plant at the University of Birmingham validating design assumptions and mass balances. HyProMag UK has produced over 3,000 recycled permanent magnets to date for various industry partners and potential clients. This continued piloting is supporting HyProMag's short loop recycling facilities in construction in the UK at Tyseley Energy Park (“Tyseley”) and in Germany.
To provide further optionality at our future facilities our partner Mkango UK is piloting a chemical process for recycled HPMS NdFeB powder and magnet swarf at Tyseley. These initiatives require an estimated 88% less energy compared to traditional mining-to-production processes. This initiative, funded in part by UK Research and Innovation, underscores our dedication to driving innovation and sustainability in rare earth processing.
We value one-on-one conversations and if you would like to learn more about this partnership and/or technology, please do not hesitate to reply to this email and our team will happily get back to you in a timely manner.
Best regards,
Julian Treger,
CEO
Hi all,
What is everyone expecting next from newsflow? All recycling or something out of Malawi? Reading last update sort of feels as if strategic review outcome is possibly due.
First commercial sales out of the UK would send a strong signal with possible institutional interest or a partner such as Envipro.
Joe
Started: Major-Tom, 16 Jun 2024 15:16
Last post: Major-Tom, 16 Jun 2024 15:16
I have increased my MKA position over the last couple of months following the fundraise and WDs further significant investment.
I decided to increase my exposure due to the expected positive newsflow relating to the recycling side of the buisness over the next 12 months. I am expecting a steady rise in valuation in the this period as the HPMS technology is commercialised and the company starts to see cash flow and hopefully steady revenue growth. However, given the ongoing strategic review of Songwe and pullway, I feel there is also potential for a significant rerate if any of the options being evaluated come to fruition, particularly if there is a significant cash component to any deal.
As far as I understand there has been around $25m invested into Songwe by MKA. I guess the value added through developemnt must see Songwe valued North of this. However, I cannot find any comparable assets sales / JV deals for a REE project like this. Whats the general consensus on the valuation of Songwe pre MDA / post MDA and Pullway?
Last post: bonker99, 12 Jun 2024 09:13
NERGY TRANSITION AND GLOBAL COMPETITION: The European Commission is due to notify Chinese electric-vehicle manufacturers of provisional tariff levels Wednesday and companies could face additional levies of around 25%, European officials said
Welcome. Be prepared to sit tight. This is a serious chess game share.
I've watched this one on my monitor list for 12 months or so waiting for a strong derisking event, whether than was in the form of an MDA or progress against the recycling program.
Yesterday's news was that event for me to which I added and will add more today.
More news to come now I am sure given the board have deferred incentives and Mr Dawes continued investment of his own funds.
Virgin poster, so be gentle.
Joe.
Started: shareminator, 11 Jun 2024 17:49
Last post: shareminator, 11 Jun 2024 17:49
Instead of going up and coming back down equally fast the day after the news.
Started: marts4321, 11 Jun 2024 09:47
Last post: Profit-or-roll, 11 Jun 2024 17:14
I am not saying this glibly - as this is a very sad and tragic event. But it turns out the plane was 35 years old!!! Makes you wonder why poor countries running on a shoestring dont grab eagerly at the chance of investment. Talking generally not just us.
Yeah and it is not like it has proven to be a reliable nation state to do business in for us anyway to date, so what is the worst that can happen? Do a Mali, perhaps? Or simply steal the asset in full and without compensation?
Given how much the IMF and a range of western charities gives them, I think that would be unlikely, but anything is possible in failed states. Also IMO less likely with an undeveloped asset.
All the more reason IMO not to put another penny into Songwe. I do not trust the politicians or the political landscape in Malawi at the time of print.
Anyway, the other avenues seem to be continuing to advance nicely. Fingers crossed and GLA.
Blimey, talk about the old one-two.
Kinda irrelevant really re MDA/mine but you know what to expect ...
I don't suppose this will speed up the MDA…
Political upheaval is never good.
https://www.upi.com/Top_News/World-News/2024/06/10/Malawi-Saulos-Chilima-Lazarus-Chakwera-missing-Chikangawa/5291718037759/
Last post: cadellin, 10 Jun 2024 15:06
Will mkang/hypomania get sold?
Great post KP
If they want to give us £5m for 10% I will happily accept a £50m valuation, which seems a lot fairer considering the progress we have made since Cotec took a stake (and will be adding 3 US plants + contacts and funding etc.)
The company really should be valued much higher, but such is the markets we are in.
Of course, the sheer idea of raising £5m for 10% of HyProMag could accelerate our SP to a level in which we could raise £5m at group level, keeping hold of our 80%... although I feel EnviPro will want a slice of the action and not just a 50/50 JV in Japan where they cover all of the costs etc.
Yes it would be valuable to them, but at some point we will need interim funding before we reach profitability, raising in the UK markets has seen us go from 24p to 5p... 12.5p to 5p in just over 12 months. If WD wants to show UK private equity what they are missing out on by being greedy (remember we only raised £750K because PE was being greedy at 5p) then he could do a lot worse than selling a 10% stake for £3-5m.
Whatever shape the funding takes, it just got a whole lot easier. Funders purse strings should be loosening nicely. Liking these recycling milestones...Long loop plant commissioning in next few weeks hopefully, then the short loop plant and US FS later this year. Will mentioned a tie up with Canada was being looked at too.
Don`t forget the exploration projects bonkers :)
https://mkango.ca/projects/exploration/mchinji/
GLR - I don't think £3m would set the company up for 2 years. I think a minimum of £5m is required. My understanding is the UK plant scale up [to 100-300 tonnes p.a.] requires around $10m further capex of which something like 50-60% would need to be funded by MKA (I believe c.50% would be expected to be covered by government grants). There will also be significant working capital requirements. Even the government grant portion aren't received immediately - in UK the grants are claimed back via "depreciation" over the life of an asset and so would need to be funded initially by MKA. Perhaps the company can obtain facilities to cover this cash timing issue.
I believe there will be similar costs for Germany scale-up albeit if this is phased after UK scale-up then at some stage the profit engine can start kicking in (although these plants will be loss making in y1, slightly profitable in y2 and then very profitable y3+). Germany capex grants are paid 1-2 months after costs are incurred so better in that sense vs UK.
My preference is to raise / obtain the cash for Germany too rather than delay scale-up by 2 years, so more than £5m required I think
Mega news 😃
Last post: LewisWinthorpe, 30 May 2024 13:42
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.
Lewis - how do you calculate burn rate of 166k/month?
They lost over $1m in the quarter Jan-Mar
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.
Started: Metalhead25, 30 May 2024 12:07
Last post: Metalhead25, 30 May 2024 12:07
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
Started: Profit-or-roll, 29 May 2024 11:19
Last post: flundra, 29 May 2024 14:20
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!
Started: teraferma, 23 May 2024 13:09
Last post: teraferma, 23 May 2024 13:09
Q&A from today's first CRMA board meeting
"The Act also contains provisions to establish circularity requirements for permanent magnets, which are technologies well-known for containing rare earths and for whom the EU is fully dependent on third countries. Today, less than 1% of rare earths consumed in the EU are recycled. Permanent magnets are found in a wide variety of products strategic for the energy and digital transitions (e.g. wind turbines and electric vehicles). Their recyclability is technically feasible but remains very limited. To ensure permanent magnets' recyclability, the Act facilitates the work of recycling facilities by setting information requirements on the type and composition of permanent magnets contained in a defined list of products and on the recycled content of certain critical raw materials in new magnets."
Circularity has to start earlier than when a product becomes waste. Therefore, the Commission also focuses on the recyclability of critical raw materials and their substitution in its work on product-specific ecodesign requirements. It will also mobilise up to €200 million to deploy ten additional Hubs for Circularity to substantially increase recovery and recycling of raw materials in the entire Union
Started: shareminator, 21 May 2024 21:39
Last post: bonker99, 22 May 2024 21:01
It was ever thus.
Bodes well.
You got me, I got a new identify, but dont tell my mom.
“Funny, there are always the same people over the same boards saying the same things and spreading the same lies about people asking questions and gathering infos.”
You can’t have asked many questions then, by your post count. Unless you’ve got a new identity?
Sure, that is why I asked before. The point in my presence here was gathering info about a possible entry, but that may be too much to undertstand for you as you have already made up your mind about me.
Funny, there are always the same people over the same boards saying the same things and spreading the same lies about people asking questions and gathering infos.
Between, I am a bottom fisher, I am only happy when buying cheap, on the bottom 😉
Started: mistyoptic, 18 May 2024 19:54
Last post: LewisWinthorpe, 21 May 2024 15:35
Time to learn Chewa?
Unfortunately not in English...
It's here.
https://youtu.be/2A55-SQSKgw?si=ybmDN_6P0JTFP1us
Haven't watched it yet
Anyone hear what she said? Was she still wearing that dandy frock!
Monica is being interviewed on Times TV in Malawi, 8.30pm today for premium viewers and repeated 4.30 pm tomorrow. Don’t know if we will be able to view it in UK
Started: biffa, 18 May 2024 10:51
Last post: bonker99, 20 May 2024 11:33
VANECK UCITS ETFS PLC RARE EARTH AND STRATEGIC METALS is ticking up nicely these past weeks - won't be long ...
Morning.
I don't disagree with the sentiment but given the saga re the MDA then you're not going to have buyers liking up until that MDA is agreed so they know what they're getting for their money.
The MDA is everything now re Songwe - nobody can value it as things stand - the market has shown you that at just 6p ...
I guess MKA's approach will be determined or guided by the "review of strategic options for...Songwe" announced in the 25 March RNS. I don't think we've been given any details, like reporting timeframes or whether it's an internal MKA review or a report commissioned from external consultants etc. It's a moving target too, and tricky. Hence the review...
Any reason we don't just flog the mining side to an Indian outfit and be done with it.
I think we are up to about £25M since the start of this saga. Get that back and move on?
Ties with India. Trade agreements signed. Some Indian interest in mining.
If India's allowed 16 agreements, MKA should get just the one MDA surely. Bit overdue.
Started: teraferma, 20 May 2024 09:30
Last post: teraferma, 20 May 2024 09:30
Big week for HyProMag.
Magnetic show in the US with Nick Mann presenting on Wednesday.
All the big magnetic manufacturers and OEMs are present.
https://www.magnetics-show.com/conference
Started: cadellin, 18 May 2024 16:01
Last post: cadellin, 18 May 2024 16:01
Things should get tasty soon:-
https://www.cotec.ca/news/cotec-holdings-corp-subsidiary-hypromag-usa-llc-to-benefit-from-usa-25-tariff-on-permanent-magnets
Keep adding
Last post: cadellin, 15 May 2024 17:12
Https://www.mining.com/crma-rare-earth-elements-a-potential-blindspot-for-eu-policymakers-and-industry-report/#:~:text=%E2%80%9CThe%20outlook%20for%20rare%20earths,industry%2C%E2%80%9D%20the%20firm%20notes.
Started: flundra, 14 May 2024 15:34
Last post: Gallmat, 14 May 2024 19:32
Maybe the uk gov could stop just talking.
Give these guys some funding and get on a plane.
Good article spot on. Malawi take note. Don't be greedy. Issue MDAs.
Local media not impressed
https://miningtradenews.net/promotion-of-mining-investment-should-go-beyond-holding-an-investment-forum/
Https://www.nyasatimes.com/chakwera-leads-malawi-in-signing-16-trade-agreement-with-37-indian-investors-move-to-boost-exports/
Ties with India. Trade agreements signed. Some Indian interest in mining.
If India's allowed 16 agreements, MKA should get just the one MDA surely. Bit overdue.
Started: shareminator, 14 May 2024 16:12
Last post: shareminator, 14 May 2024 16:12
Started: teraferma, 4 May 2024 13:54
Last post: Profit-or-roll, 13 May 2024 09:59
Another reason recycling is the future!!
https://uk.news.yahoo.com/more-70-key-resources-imperilled-134833358.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAJ2i1QyUxLAoZMvf4IqDld7TyPE3zcopZG1BoBNP7IlngMVVeGKTWdJ4GRFKqVktwxDyPutz6m15tnTfIpBddtoktEJh-Mxj_3CO-Bt9zKnIx_DV_EgVaru-IiPbTjR1GIjMs3F_g7jV3x10w_Mhq-KINkIYJEPh6nhU0q_Jk6pV
Nice read across for HyProMag, Ionic MD discussing supply, demand and government support for their RE recycling project.
Seems to me that HyProMag are ahead of Ionic in terms of commercial production in the UK
https://www.youtube.com/watch?v=2cUZ4jUYDPY
Started: BodRuncie, 10 May 2024 07:37
Last post: shareminator, 11 May 2024 14:13
Given the significant exchange of shares around the 7p mark there are a few smart investors that see a large potential here and are positioning accordingly
"USA set to impose 100% tariff on Chinese Electric Vehicles imports"
EU banging the same drum.
If you can't see this coming then ........
Topping up Monday.
Some whoppers going through now, not having much effect on the share price unfortunately.
The RNS might have spooked some into thinking there were fresh cash concerns. Clearly not the case as per the RNS and the existing stated plan, and it's been less than a month since the £750k was raised anyway. Mr 7p's taking full advantage. Sensible guy.
Someone with exceptionally deep pockets at 7p still ...
Last post: SuperRoty, 9 May 2024 16:23
I could never understand as to why they elected for MKA shares at 27p. They have watched their investment erode away. Thoughts anyone
Started: flundra, 8 May 2024 11:30
Last post: flundra, 8 May 2024 11:44
Maybe move on from the mine-refine-re-recycle model, which promised much but hasn't really worked out. Mine and refine are being hampered by high geopolitical risk eg Malawian bureaucracy. No MDA and talk at the forum of adding value to product and refining in country.
Perhaps better to divest Malawi interests and Pulawy now, or spin out Mkango Africa under A Lemon, to pursue wider exploration and work up the rutile and uranium eg. MKA to refocus resource and management time on recycling. Name change and/or merge with Cotec maybe in that scenario.
I wonder what this review will conclude and when we'll hear.
25 March:
William Dawes, Chief Executive of Mkango stated: "Mkango sounded out the market in January of this year with a view to considering a fund raising to pursue all of Mkango's existing business lines. Given the share price decline during this period, the Company has decided to minimise shareholder dilution at the current share price by raising a relatively small amount of money from existing shareholders and myself in order to enable the Company to achieve key milestones for HyProMag. In addition, to ensure enough financial runway to achieve these goals, the Company has implemented a cost cutting exercise which will materially reduce the Company's monthly cash burn.
As part of this process, the Company has decided to launch a review of strategic options for its Songwe Hill Rare Earths Project in Malawi as well as the Pulawy Rare Earths Separation Project in Poland. Mkango believes this strategic review will help maximise returns for its shareholders whilst it seeks to expand its recycling business."
MKA didn't bend over the Malawian barrel. Not enough money in Neodymium at the moment to make it financially viable on their terms, but that will change. Another 6/12 months and the recycling will make this fly.
MDA ? What ever happened to it
Started: goupplease, 25 Apr 2024 11:29
Last post: GLR1990, 2 May 2024 16:17
Yep looks like a buyer is taking out a seller, although why it is across multiple trades I am not sure... you would think they would just do it all as one large transaction. Perhaps the seller was/is trying to crash the price, so the buyer is sitting on the book taking up the stock. I doubt they are working in co-operation but could be wrong.
Another couple of/million turned up.
Who knows but it's extremely interesting - presumably they're stringing out a very large order in pieces so they don't have to declare until they're done - we're way North of 5% of the issue now in these huge trades.
I have never been invested in a stock in which millions of shares trade in single transactions on the open market. This has been going on for quite some time and adds up to ten's of millions of shares. all traded in huge blocks at one set price. this is not typical of a large stakeholder unwinding a large position. it does not make any sense to me. can anyone explain?
That's a helluva rollover or someone is hoovering these up.
If it hasn't been previously mentioned
Hypromag.com is worth a look.