RE: Just filter as your playground insults say more about you...3 Jun 2026 12:17
A good summing up of the risks. You only have to read the Q1 to see the complexity & the plate-spinning that's happening. Hannam & Cohen are no mugs, and I can't imagine that the discussion hasn't been had with Dawes & Lemon about their lack of manufacturing expertise & its non-existence on the board; Neither has any background in industrial manufacturing & engineering, which is where the future of the business clearly lies. To date they've leaned heavily on Brum Uni team...now they need to start properly investing in high quality engineering and industrial process management. Siemens are not going to commit serious money to any supplier until they can absolutely be sure/ proven that they can deliver at scale, on time & to the appropriate quality. Lemon & Dawes have been dangerously silent on this fundamental pillar of the business case & it got no airtime in the fund-raise document.
As we saw, there was general annoyance when the output restrictions at Tylesley suddenly came to light. They're already a year behind schedule, so this is looking like a mid-2027 story at the earliest for the recycling business case. Yes, they've struck a good deal buying Remloy in Germany, which was non-core to Heraus - to compliment Hypromag there. I assume that the Remploy team has strong engineering DNA & skills also useful for Hypromag generally. However, if Dawes & Lemon are serious about building this into a global recycling business, they need to signal it better, and be far more open and transparent.
Having raised the £12m others are saying they have breathing space, but a large chunk of that has already gone, so Lemon & Dawes are putting all their dosh on Red, in the form of a successful SPAC outcome, to crystallise some immediate value while the Rare Earth market remains so hot, and hopefully give them access to additional capital. It will certainly help the optics in terms of derisking the Group. If NASDAQ listing is successful, it will still mean that there is a huge funding requirement to get the mine & Pulawy up and running, and that is a multi-year endeavour, and a nbusiness that will command a mining type PE rather than the industrial -tech type PE that Hypromag will command. Lemon & Dawes are both closer to 60 than 50, so will be looking for the Big Pay day sooner than later.....but in order to get there, they need to bring in better qualified management
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