RE: UK government serious about REE's06 Apr 2021 10:18
I have been reflecting on the position MKA are now in. Quite rightly (given their investment), Talaxis hold the cards in terms of securing 75% ownership, and have first rights on all of the offtake from Songwe. They have signed an MoU with Chinalco (state controlled) - so agreement in principle, that China will fund the mine. Not a final contract/agreement, however. So, with Talaxis controlling the offtake, other nations will need to come over the top on the MoU with Talaxis if they want the materials. I can see a real war breaking out at the Talaxis end to secure the mine funding, and the offtake. What this means for us is, a pretty certain path to production for zero cost, we get a 25% free carry on the sales of a product with a rising demand and price point.
Agree . I would also like much more information on the sales price we are getting to gain these strategic partners . Having CropX / Bosch / Zero etc onboard is pointless if we are making losses or selling hardware at cost just to get in the door . I think that has been a problem for a while now . Frankly , if our products were that good , or indeed the market wasn’t overly competitive in this space , we would be doing much better or have been taken over .
Updated resource value comparison23 Mar 2021 08:41
I have updated my basket composition model, based on new REE values - interestingly, the price movement over the past 12 months has added just under £1 billion to the in situ value of the 51% we own. Amazing really, and bodes very well for the definitive BFS. I appreciate that HAS:ASX are ahead in their journey and have a different capital position, but the overall Songwe Hill asset is more than twice the size of Yangibana. Clearly there are different risks when mining in Aus, but i would imagine we will start to see some real M&A activity here in the coming months. They are valued at 5.2 x MKA, with only 1.4x the owned resources.
Hi Rocket - there have been a few of us here quietly sharing info for 4+ years now. There were a few bleak months with no posts at all... I was always planning to hold until the full value was released. Myles put a 75p target on mine commencement. When Talaxis came in, it instantly valued MKA at 26p in an open market transaction, and it was difficult watching it only hit 12p then slide back to the 5p area. The elections in Malawi came and went. As did license renewals. yadda yadda yadda. the herd seem to be taking notice and will be doing their usual overinvested buying after a 500% rise and then moaning when it doesn't bag from there overnight. popcorn at the ready.
Well, that's my 1/4 sell target reached. 5 long years and plenty of ups and downs from 4p. I can't bring myself to press sell. I recall having a conversation with a poster a few months back about the price of Neodymium and they were concerned about mine viability. At that time it was pretty clear that there was only one direction of travel. i guess we are starting to see the start of a squeeze. Brilliant stuff.
RE: STAR products being used in covid fight11 Jan 2021 09:06
Morning all LTH. i agree that this is the spark we have been lacking over the past few years. i was staggered that the TDL / Bosch tie up didn't get more PI interest. Fingers crossed a bit of hype and excitement will get us heading back towards 5p and then onwards to 10p.
It’s so refreshing to see a BoD and major shareholder actually aligned with all long term shareholders . I guess at 6.6p we could have had a cash injection if Talaxis exercised all of their warrants, but the company really doesn’t need it. They have protected their investment instead and provided stability. Very welcome .
Sold my final holding from the original 16p purchase back in March . With the new, cheap and easy to distribute vaccine now approved, Avacta really have missed the boat . Wish I had got fully out when Alistair dropped a chunk near the peak but made a very good 7/8 bag on this .