Member Info for esduk

Nice to see the positivity and perspective LWHL, knowing from past experience that you are prepared to say it as you see it either way. I don't think the company can be blamed for the lack of reaction to the recent fantastic news (unless there is a placement being forward sold, which I somewhat doubt). They have been on the front foot over the past 9 months and imo are doing everything they need to do. I trust that they only issued warrants in last September's placing because it was the only way to get the placing away without a severe discount, and things were certainly looking less rosy at that point on the macro and company fronts. So I don't blame them for that.

The selling will pass (soon imo) and we will move up, particularly if imminent milestones (Tyseley operations and BCA signing) are met. I understand the frustration from people as with the progress being made on multiple fronts, now does seem to be the perfect moment for the SP to catch the macro wave and ride it all the way back to all time highs and beyond. But I think we will get there in the end, it might just take us a few months more than if the large seller hadn't showed up.

SuperRoty, Jimzi's view that it may be that the warrants are being forward sold, ahead of being converted. The company would not necessarily be aware / have anything to RNS if that were the case.

There was a delayed reported 100k sell at 16.27p straight off the bat which followed by those three 50k sells, prompted the MM's to drop the bid. They don't seem to need an excuse. Definitely looking forward to putting this annoying SP action behind us in the near future.

We've had nearly 2.1m in delayed reported trades at exactly 16.50p over the past four trading sessions. As others have said, feels like a worked sell at a specific price, either from warrants being forward sold, or a placing being forward sold. Personally, I think warrants is the more likely answer, but I know no more than anyone else on here.

I've totted up the big delayed sells since Friday 30th June, having decided to make a record of all the daily trades since that day once I started seeing the funny price action (sad I know...). I make it about 15m, with a margin for error of about 10% either way. If that is a placing at around 15/16p then they would be raising between £2.25-2.4m and I'm not sure why they would need that much. Our cash balance at 31 March was $3m and quarterly cash burn was $1.1m. If it's warrants then as mentioned earlier, this would be £1.05m. Either way, I think we find out in the next eight trading days.

And June 2016, bad maths on my part...

Sorry I should say 9 years ago this week!

The 25m warrants are from the raise at 5p in September last year, while the 8p raise in February this year had no warrants attached. So I highly doubt that warrants would be issued as part of any raise going forward.

Imo the company have done well over the years to avoid funding arrangements that screw over PI's, much better than most companies on AIM. For a junior mining (and subsequently refining/recycling) company in the development phase that listed at just over 3.3p on AIM 8 years ago this week, they have done seven placings. One of these being on listing, and another being a placing direct to Talaxis. Only two of the public placings, September last year and the listing placing in June 2017, have had warrants attached.

In that time they have managed to acquire Hypromag and fund the building of two plants (UK and Germany), get Songwe to DFS/MDA stage and get back substantial majority ownership of their subsidiaries (Talaxis were at one point major shareholders in the subsidiaries). For most of this time RE prices have been depressed. I think they have done a stellar job given what they have achieved and the circumstances in which they have achieved it.

If this is warrants, then based on the info Jimzi shared, the warrants are likely to be issued by the end of next week (20 business days from beginning of the block selling). If it is for say 15m warrants, at 7p conversion price, then we are talking £1.05m of cash for the company and no need for any more raises (imo). I'm actually very relaxed right now following all the good news. The value is being built, my investment is being de-risked, and the SP will start to reflect that given time, particularly with the all catalysts we have coming.

I don't think there is any for non-holders, think it is just offered to those with existing shareholdings. It appears that we get 100% of what we requested up to £2,500 and approximately 40% of anything we requested above £2,500.

Retail offer shares that is

HL shares have just come through as pending order. Looks like the earlier poster was right about not getting full allocation over £2,500. On my accounts where I asked for under £2,500 I got full allocation, for those with over £2,500, I got the first £2,500, plus a proportion of the remainder above £2,500.

I think patience is the order of the day right now. We've had a frustrating few weeks, tracking sideways despite a procession of great news due to the seller/warrant forward selling. I am confident our time will come, and the pieces of the puzzle are falling into place for a very substantial re-rate.

Unsurprisingly, critical minerals are a hot topic at the G7. I like the bit where the G7 say that minerals markets should reflect the real costs of responsible extraction, processing, and trade of critical minerals. They obviously realise that they need a proper pricing incentive/different pricing structure to the ones which are dominated and controlled by the Chinese.

KANANASKIS, Alberta (Reuters) -Group of Seven leaders on Monday provisionally agreed on a strategy to help protect the supply of critical minerals and bolster their economies, according to a draft statement seen by Reuters.

The draft, which a source said had not yet been approved by U.S. President Donald Trump, also said minerals markets should reflect the real costs of responsible extraction, processing, and trade of critical minerals.

"Non-market policies and practices in the critical minerals sector threaten our ability to acquire many critical minerals," the draft said.

"Recognizing this threat to our economies, as well as various other risks to the resilience of our critical minerals supply chains, we will work together and with partners beyond the G7 to swiftly protect our economic and national security."

This included anticipating critical minerals shortages, coordinating responses to deliberate market disruption, and diversifying mining, processing, manufacturing, and recycling, it said.

Long but very important RNS for me, which really shows a company that's on the front foot in my opinion. It feels like they have really optimised the newsflow over the past few weeks for both the recycling and mine/refine businesses in the run up to the imminent major milestones we have on both fronts. So much going on in the background in terms of developing the team and product, and we are very lucky to have the UoB pilot plant and general support, which put us in a great position heading into commercial operations in the next couple of weeks.

I initially had the same questions as others about whether this RNS signified a delay to Tyseley operations, as it seems strange to put out an RNS on Hypromag / HPMS process and not mention the imminent operational start, so I'm glad the company have quickly cleared this up.

For me the big positives of this RNS are the wider spectrum of magnets that we can now produce, N42SH in particular is an important grade for the automotive industry and some military applications, and that our magnets match the performance of those from virgin material. These developments widen our market, build confidence and de-risk the commercial roll outs to come. Great to see the company pushing the technical boundaries so proactively, just imagine where we'll be by the time Hypromag USA comes online.

As others have said, GKN's Automotive's feedback is really important: “As the key physical testing and simulation partner, we are pleased to confirm that the recycled magnets replicated expected performance exceptionally closely during testing. This means HyProMag’s short-cycled magnets can be reliably used in motor design simulation to deliver real world performance. The HPMS process enables a supply chain of sustainable, competitive, rare-earth magnets, decoupled from the problems of the virgin material supply chain.” Quite the endorsement, and again shows the value of all the programme's and collaborations that the company have been so successful in joining/establishing over the past few years.

Yeh warrant conversion is a much better story than a major shareholder deciding to sell down their stake and I’ve said before that we are unlikely to ever require another raise if this is warrant conversion. The cash burn at the Mkango corporate level once any remaining capex for Germany has been spent should be minimal. Perhaps the warrant holders expected lots of potential buying volume in June given there was a lot of news anticipated and so timed the forward selling and conversion to make use of this.

It’s going to be a very interesting 2-3 three weeks here, can’t wait.

Perhaps, but we tend to get told about those kind of conditions when the warrants are issued. I’m a little sceptical about the idea that the company has/would be able to instruct a warrant holder to convert without such conditions, though I guess it could be possible. But either way, having them out of the way before all the major company changing news that is coming is definitely a good thing in my view. It’s a lot easier to churn through 25m shares at 16p than it would be at 50p.

I’d put the figure in the region of 12-15m to date, at least by my calculations. Without wanting to speak on Jimzi’s behalf, the theory he explained to me the other day was that the warrant shares are being forward sold, most probably using a T20. I think a similar method is often used to forward sell placing shares, but I hadn’t seen it used before for warrant related shares, hence asking for the explanation from Jimzi the other day. If it is being done through a T20 then 20 trading days after the forward selling began the warrants would need to be called and issued by the company to settle the T20 trade. Please correct me if I’ve got any of that wrong Jimzi.

Whether it is all 25m warrant related shares being forward sold or just a portion we don’t know. It would seem strange to me that all 25m warrants were held by just one party though (surely we would have got a TR-1 for the related placing shares at the time if so). I think either way we will find out in the next couple of weeks as we either get up to 25m in big block sells or we get to the end of the T20 period. That’s all assuming this is warrants, which feels like the most likely explanation.

A lot of fun at Lord’s, no dog in the fight as an Irishman, but always good to see the Aussies on the back foot in cricket. Does it matter who is buying vs the fact that a big sell off is being strongly bought Monteacute? I certainly have seen what looks like non-PI buying over the past few weeks but there will always be an element of smoke and mirrors as Bonker says.

At Lord’s watching the cricket and just checking in. Loving the buzz on the BB, keep up the good work folks, long and strong!

Perhaps, though other than general market sentiment I don’t see the connection of those events to our SP i.e. we don’t use oil, are not in the region and if anything this means more drones, more defence spend and therefore more need for domestic rare earths. Anyway, let’s hope this doesn’t escalate into something much worse.