Member Info for Bolgas

Q - Once the results are drawn up, is there anything else needed to produce that carries risk for the funding?

According to our agreement with Talaxis, on publication of a 43-101 report in relation to the resource update, Talaxis will invest the next £7m tranche of investment.

Q - Under the terms of an agreement with Talaxis (the “Talaxis Agreement”) Talaxis have the option to acquire a further 26% interest by arranging funding for project development, including funding the equity component thereof. How do you see 2018/19 developing and will Mkango be due a market re-rate?

We believe the company is undervalued, and as we finalise the updated resource, receive the next £7m tranche of investment from Talaxis and progress the feasibility study, we anticipate significant re-rating to reflect the strong financial position of the  company, fundamental value of project and the fact we have a pathway to production via the Talaxis transaction- on exercise of the option by Talaxis, Mkango would retain a 25% free carried interest in the operation

Whole interview below, well worth a read.

https://www.share-talk.com/mkango-resources-ltd-aim-tsxv-mka-q-and-a-session/?utm_source=twitter&utm_medium=social&utm_campaign=SocialWarfare

Rare earths deja vu: Chinese crackdown = higher prices

In a scene awfully familiar to those who follow the rare earths market, China is once again threatening to hatchet production of the valuable minerals used in high-tech, renewable energy and military applications.

Last week it was reported that the Chinese government published new guidelines designed to eliminate illegal mining and encourage more high-end processing. Those sterile words are code for “less polluting”.

Shutting down illegal rare earth mines is nothing new to the Chinese, who have found that the process of extracting rare earth oxides from ore and refining them into useable products has come at a high price to the environment.

http://www.mining.com/rare-earths-deja-vu-chinese-crackdown-higher-prices/#disqus_thread

My Sunday ramp done haha, see you at 20p

Look at what happened with Vanadium price, supply demand drive it from $6lbto what $35lb in around 12 months, again it’s starting its climb back up as it’s controlled by China.

Same will happen with rare earth minerals.

Additionally this is open pit, as cheap as it gets with a huge resource expected anytime now. Talaxis invest another 7 million plus the addional 1 million this is valued at around cash value.

There’s some good articles about how rare earth minerals are expected to take a leap up north, additionally the recent presentation said an additional $100 million to NPV excluding step out drilling, PFS are almost always highly conservative.

Good luck though with your holding.

Overall Average:

100% BUY

Overall Average Signal calculated from all 13 indicators. Signal Strength is a long-term measurement of the historical strength of the Signal, while Signal Direction is a short-term (3-Day) measurement of the movement of the Signal.

STRENGTH: MAXIMUM
DIRECTION: STRONGEST

https://www.barchart.com/stocks/quotes/MKA.LN/opinion

At its current share price of 9.95p, Mkango is valued at only £11.2m. We consider this to be brutally undervalued, in light of the size, quality and strategic importance (both from a commercial and a political sense) of Songwe Hill, and of the valuation attributed to it by the Talaxis deal.

A crucial element of the agreement between Mkango and Talaxis is the option clause. This stipulates that upon completion of the BFS, Talaxis has the option of increasing its stake in Songwe Hill from 49% to 75% by securing all project finance (estimated at $216m in the PFS – or £168m at current exchange rates). Were Talaxis to fund this capex entirely in the form of equity, that would take its total investment in Songwe Hill to £180m. Based on this transaction, that would value Songwe Hill at £240m – and Mkango’s 25% remaining equity stake at £60m, or 53.1p per share using the current issued share capital of 112.9m.

Having examined the drill data in detail, we are confident that the impending resource upgrade will be significant. This in turn will enable the BFS to include a larger portion of the total resource, and consequently generate a larger mine plan with a longer life. This would ultimately translate into a greater project NPV than the $345m calculated by the 2015 updated PFS

I don’t play games, well last one played was Sega Rally, but I’m looking forward to a go on dirt rally 2, looks amazing and pretty realistic in term of handling if those previews are right.

Surprised this isn’t touching 10p, suits me though as I’m looking to increase holdings later this quarter.

Must point out that’s what is in the agreement that Mkango will receive that money to get project to production, all funding is pretty much I place as this project has exceeded expectations imho.

It’s much higher then that, the final payment Is to get mine into production, that’s estimated at a cost of $216 million. That’s a pretty hefty cost for 25% of Project.

What I like about this is there is no need for funding, this is a fully funded project to production with an IRR of 37%, that’s beofre cost savings and a widely expected huge increase in project value.

30/40p considering what we know today sits about right for me, this is a uniquely funded project, no dilution a premium surely for that alone. Further look at the drilling step out and corresponding grades, I’d expect at least double resource if not higher and there’s still plenty of scope for further drilling/upgrades.

Add in REE’s are about to become highly fashionable with rapid rise of EV’s this stock should be in for a very good year indeed.

Hi Knuttie

Had no idea of your personal problems, putting personalities to one side, all I can say is make sure she keeps moving, walking around as much and as soon as possible. If there’s chemo to be done, from personal experience and all cases are individual as to levels of treatment but keep moving whilst taking it. More they do when taking treatment the easier the recovery.

It’s so easy to do nothing, that does though make the recovery harder when treatment stops. Peeps I know have all made a full recovery with life returning to norm after 6 months following treatment.

Someone I know was on Capecitabine, 150mg and 500mg tabs, if similar treatment make sure you ask all questions as the treatment compounds as you go along, read heavily into it and understand all the side effects. Hands, legs, feet the lot, all can be part of those side efffevts.

As I said no idea of your wife’s personal problem or if it’s cancer, I just read this message and thought I’d share what I know, previous comments I made was in poor jest, more as Faramog has done and continues to do regarding my family.

No malice intended, all the best and good luck.

Think that guess from one of those posters (you know who you are!) was number of statins used daily, pmsl.

I’d say 34p if Vanadium prices crash as expected over the next couple months, there’s some big projects out there that are yet to be announced to a market for several VRB company’s so I believe, quite what redT have lined up is anyone’s guess.

“It is so clear that they are reviewing the timing and costs to bring the whole phase 3 expansion forward! ”

Nick

It took them all of 2018 to implement $3 million of upgrades, how fast are you expecting $15 million plus?

Remember, it’s in those RNS reports, production has fallen since, not risen.

I’m not giving up on you nick, there’s hope.

Nick

That makes as much sense as your comments on machinery, or in terms of those who know, complete rubbish.

They clearly have issues getting production up, it’s mining that’s what happens. I’m not saying this is a rubbish stock but I am saying it’s run well ahead of itself and the BoD need get grips with what they have, expansion takes years not months, that is clearly the realisation of the BoD but not investors.

RNS is crystal clear, they are reviewing phase 3, getting it right is better then rushing in to appease investors, in the meantime expect share price to fall back as those spiked will fall away. Long term if they achieve what they hope this will get back to 50p, but a billion or two billion is just fanciful dream land imo.

VRB is restricted to Africa and they can’t get one machine running as yet, they’ll lose that contract sure as houses. They need real experts who know what they are doing, not mates from the country club who do a few hours after a good nigh out.

TIA nick, remember that.

Read it Alpha:

“As part of the operational improvement initiative, designed to enhance Vametco's productivity, the Company is reviewing the timing and required investment to expand production capacity to 5,000 mtV.”

That’s the approved content of RNS, that’s commenced.

Twist it how you like, the RNS doesn’t lie.

No, it’s clever spin, nothing more:-

“As part of the operational improvement initiative, designed to enhance Vametco's productivity, the Company is reviewing the timing and required investment to expand production capacity to 5,000 mtV.”

That’s what’s commenced, as per RNS.

“Bolgas, the plant was considered to be in such good condition that the auditors accepted a revaluation to over £30m for it! ”

You can’t depreciate something twice Nick, plain and simple unless you’d like to pay the tax back of course. That figure was taken from purchase.

It’s not made up Nick, it’s facts written in those RNS’s, unlike what you write. Little like your comments on equipment at £32 million, that’s preposterous and you know it.

Good luck folks and remember DYOR never rely on a BB for any information unless you verify it yourself. It’s your money and only you are responsible for it.

As I said, I can see this been a good long term punt IF things work out, there are a lot of IFS and BUTS in the meantime, today’s price ImO has run ahead of itself by quite a margin.

Why say it’s under review together with costs? That implies to me the costs are increasing as the previous plan isn’t going to be sufficient to get to that figure, last upgrades confirm the plan isn’t working. Besides why not state bringing forward that date to say Q3? They don’t as they don’t know, pretty simple to me.

Further why bury it down below waffle earlier in the RNS that implies all going to plan on expansion, but they cleverly don’t say expansion, that’s spin Nick. I don’t like spin, it’s for a very good reason.

Nick

It’s in black and white in November update that it’s on hold, I’ve quoted it many times for you. Maybe someone else can help you understand:-

“Multi-phased expansion project

· In 2017, Vametco commenced a three-phased expansion project with the aim of increasing annualised production capacity to more than 5,000 mtV. As part of the operational improvement initiative, designed to enhance Vametco's productivity, the Company is reviewing the timing and required investment to expand production capacity to 5,000 mtV.”

From presentation back in June:-

“Phase III: to increase capacity to 5,000 mtV by the end of CY19, through a self funded capex of ~US$15m”

That’s quite a lot of money and infrastructure to purchase and implement, if they had intended bringing it forward with confidence surely that would have been stated, not on hold. Besides they have revised production forecasts down not up since last upgrades.

Maybe they will buck the trend over under delivering and over-deliver, I know which way I’m betting thou.