Member Info for esduk

Monteacute, I’m not sure we can expect a TR-1 or that a TR-1 would/should give you the confidence that this is a sound investment vs a punt. What, imo, can potentially give you that confidence is rather the fact that we have in the past two weeks received backing from both EU and US government institutions. And more generally, the macro environment and stream of good news and strategy validation that has come from the company over the past six months in particular.

If any one of our many bow strings goes ahead (and I think they all will btw), this SP will be a distant memory. We are way past speculative bet phase (which your 37p entry was), and I say that having been here since just after the AIM listing in 2016.

I have stuck with this share for 9 years and now hold more shares than I have ever had, despite the SP being at 4x its recent lows. I look at this investment as one a few that I will have in my lifetime that is truly game changing, and with an average in the high 6’s it really has a chance to be for me. I understand your concerns, but after the past two weeks of fantastic news, I am watching the US Open and feeling incredibly relaxed and positive about my massive (for me) investment in Mkango. Oh and quite happy with my less massive investment in Cotec!

Seems like we should be back to waiting for after close delayed sell prints today then. If these are warrants, we are a fair way through them by now. This would be 25p by now imo if we hadn't had the big block seller. It presents an excellent opportunity to buy given the known disconnect between SP and value (i.e. following the recent news, our company is a definitely more valuable today than it was when we got to 20p a few weeks ago). I am taking advantage.

You referring to that nice 400k buy there Bonker?

Thanks Jimzi, last question I promise... Is T20 / 20 trading days the longest timeframe that can be used for something like this i.e. does this mean that if the big block selling started on Friday 30th, the transaction would need to be complete and warrants issued by Friday 27th June?

Good advice Myles, I'll make use of the green bin for the first time in over 12 years on LSE.

Thanks Jimzi. Well if that's the case, then I'd say that it's the most likely explanation. Does this require MM's to the borrow shares that they are selling to the market as these have not been issued yet?

Sorry what are you referring to? The ability of someone to forward sell shares related to warrants without converting them?

You seem to be another of Myle's trolls from AVCT, two posts on Mkango, both negative (assuming that this one is, given your tone).

But do the company not have to report that warrants have been converted, as per 27th March RNS? Can someone forward sell shares that relate to warrants that haven't yet been converted? Would this would mean that the MM's are selling shares that haven't yet been issued? Sorry, I'm not very clued up on how this kind of thing works.

Did you create your account just to talk about feedstock and name yourself as such? You are a little obsessed. JT said that he won't take FID until he has secured feedstock supply agreements. Only about 1% of Rare Earth magnets are currently recycled, where do you get this idea that they will have massive problems securing feedstock? Yes it is an important element that needs to be sorted before FID, but to treat it like some impossible problem is clearly just a deramping strategy. I trust Cotec and Mkango when they say that they will secure supply agreements, and have no reason to doubt them. Also, look at our collaborations with the likes of Inserma and Envipro, Cotec/Mkango know what they are doing.

Anyway, I'm done with you, you're clearly a wrong'un.

Nice post. On the cash front:

- Based on the quarterly results our cash burn was $1.1m per quarter, with $3m in the bank at quarter end

- The money from CrownProptech looks like it will cover any additional BCA and SPAC costs on our end and so not add to our cash burn

- We may have some remaining funding commitment for Hypromag Germany, not sure how much or how exactly this is structured (we have given them a convertible shareholder loan)

- The Directors are taking remuneration is in shares rather than cash

- We don't need to fund anything for Hypromag USA and any similar deal in Japan, South Korea or Canada so no cash requirement there (our contribution is the IP).

- We should start receiving revenue from month end

If this is warrants then I don't think we should ever need to raise again, and I mean ever, as Mkango itself has very little in the way of expenses to cover.

I emailed them a week ago to ask them if they could confirm whether Michael Geoghegan was still a shareholder and if they could not confirm that, whether they could confirm whether the shareholdings listed on their website were up to date. He is down as a 2.96% shareholder on the company's website Investor page, but is not listed on other publicly available sites that I can find. Unsurprisingly I didn't get a response, but thought it was worth a shot. Not suggesting there is a high chance that it was him btw.

I've got an open mind right now, but it is clear that the SP has been supressed in the face the fantastic news recently. Whether this is due to warrant related shares being forward sold (would have thought the company would to RNS warrant conversion), a major shareholder selling (it could only be one of about 3 or 4 who have enough shares, and we have had no TR-1's), or a more nefarious reason like you're referencing, I don't know. Whatever it is, we will get through it and the future is very bright.

I disagree Bonker, I need my hands to place more buy orders! : )

This was my original theory too Jimzi, but can you explain why we haven't had a warrant conversion RNS? Wouldn't this need to have posted by now, or am I missing something?

Yeh agree W.O.S, definitely doesn't have the feel of multiple sellers selling their stake to move across to Cotec. Feels like one party is calling the shots on the SP here, for whatever reason, nefarious or not.

My reply was to your previous post btwe. I've been polite to you so please don't call me dishonest. I have trust JT and Mkango when they say that they are progressing feedstock supply agreements and don't think this is anywhere near the insurmountable hurdle / massive issue that you are trying to make it out to be.

FeedCo, me old matey, a feedstock supply agreement and offtake agreement(s) are two of the things that Julian Treger has said he wants in place before FID. I think EXIM will have more relaxed requirements around this than would a commercial bank providing project finance. I reckon the requirement from them would probably be for a certain % of the plant's capacity to be covered by signed feedstock and offtake contracts for the first 3-5 years or so, but I would suggest they wouldn't need this to cover anywhere near the full plant capacity. Have a look at the Feasibility Study, the pay back period at current prices was 3.9 years. So I don't think anyone is going to be asking for 20 year contracts, nor do I think these would likely be feasible.

As stated in my previous post, I'm very confident that these agreements will be signed, particularly with what is happening with Chinese export restrictions.

Welcome back FeedCo, you were missed. A letter of intent in this case is worth a lot more. It is a letter telling us that the US government see Hypromag USA’s project as strategically important and are prepared to back it, with both subsidised interest rates and a high level of gearing (debt to equity mix). This is fantastic news and will greatly reduce the WACC / cost of finance that was assumed in the Feasibility Study and therefore materially improve the project economics, which were already great.

I have worked in project finance for 20 years, so I know what a letter of intent form an export credit agency means, and I know how significant it is in this case.

Yes Gallmat, they have recently referred to engagement on funding with municipal, state and federal government for Hypromag USA.

MM’s ups to their usual no good. I think this announcement now massively derisks the Hypromag USA project and Mkango in general. For just the recycling business I think fair value is at least 30p right now (and that is only going one way with all the other recycling developments). You can add 10-40p for Songwe and Pulawy depending on how bullish you are on the SPAC valuation, noting that 10p roughly relates to the hard floor valuation of $50m with 75-80% ownership.

So I’m going to sit back and relax and enjoy the ride up that will come (whether that be today, tomorrow or in the following weeks and months).

Yeh we did the calcs a few months ago, at 10% it would be $2.1m in tariffs