Songwe / Pullway valuations?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?