Mkango agrees acquisition of Remloy for EUR 8m

(Sharecast News) - Mkango Resources said on Wednesday that it had agreed to acquire Heraeus Amloy Technologies' Remloy rare earth magnet recycling business for €8.0m in cash.

The AIM-traded rare earths company said €5.0m would be payable on closing, which is expected within the next three months, with a further €3.0m payable two years after completion.

The initial payment would be funded from Mkango's existing cash balance, following its £12.5m equity placing completed in April.

Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets through a melting process to produce neodymium-iron-boron alloy powders for the bonded and hot-deformed magnet markets.

Mkango said the process was complementary to HyProMag's short-loop recycling technology, which is focused on producing sintered magnets.

The Remloy plant is fully commissioned, with no further major development capital expenditure required, and has a total production capacity of 500 tonnes of NdFeB alloy per year.

Production test runs were under way for customer samples, with first commercial sales targeted by the end of 2026.

The assets were currently non-revenue generating, as the facility remained in its start-up phase, and no historic profits were attributable to them.

Mkango said Remloy had built a stockpile of more than 300 tonnes of rare earth magnets, alloys and other raw materials, underpinning future operations and creating potential trading opportunities.

The company said it saw several potential synergies across Mkango, Remloy and HyProMag, including the supply of end-of-life magnets from Remloy's stockpile for processing by HyProMag, the supply of HPMS-derived feedstock from HyProMag to Remloy, technical and grant funding collaboration, and co-marketing of an expanded product suite.

It also said there could be a future opportunity to supply primary rare earth feedstock from its Songwe Hill project to Remloy for blending with recycled feedstock.

Chief executive William Dawes said the acquisition would give Mkango two rare earth plants in Germany, following the official opening of HyProMag's Pforzheim production facility in April.

The transaction was expected to close in summer 2026, subject to customary conditions and required regulatory approvals.

At 1052 BST, shares in Mkango Resources were down 0.56% at 44.75p.

Reporting by Josh White for Sharecast.com.

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