Member Info for flundra

Good punchy RNS. US$1bn! Like it!! And about time they got the arbitration show on the road.

The new presentation's v good. It's still saying H1 2024 for commissioning of the long loop pilot plant. An RNS confirming this in the next few weeks should hopefully give the sp a welcome lift.

https://mkango.ca/investors/investor-centre/

If the review concludes MKA sell its Malawian interests, maybe Rio Tinto might step in (they're already in SVML). A major is better placed to manage the downside of the high geopolitical risk of Malawi until it eventually comes good.

We've got an awful lot of experience banging our heads against the brick wall of African bureaucracy. But zero experience of actual mining.

Https://www.peaknickel.co.uk/presentations

Rodburn looks v interesting to be fair. There's a May presentation now.

ORM's mcap equates to the mv of its TRU shareholding now, ie nothing for cash, la zarza receivables or the PN shareholding.

Steve Nicol is ORM's nominee on the PN bod now. I think he still is on TRU too.

I'm half tempted to buy, but sadly Nicol's the guy who spent 20 years and vast amounts of money "working up" Barruecopardo, only to drill into the 1980s spoil tip then throw in the towel. Not sure I'd trust him to run a bath.

I guess MKA's approach will be determined or guided by the "review of strategic options for...Songwe" announced in the 25 March RNS. I don't think we've been given any details, like reporting timeframes or whether it's an internal MKA review or a report commissioned from external consultants etc. It's a moving target too, and tricky. Hence the review...

CoTec Holdings Corp. Subsidiary Hypromag USA LLC. To Benefit From USA 25% Tariff On Permanent Magnets

Vancouver, British Columbia – May 16, 2024 – CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec” or the “Company”) noted the White House’s announcement that beginning 2026 the US Government will impose a 25% tariff on imports of Chinese permanent magnets.

CoTec holds a 60.3 percent equity interest (50% direct and 10.3% indirect) in HyProMag USA LLC. (“HyProMag USA”), a company that is targeting the deployment of the revolutionary HyProMag rare earth element (“REE”) recycling technology in the USA. The remaining 50% direct equity interest in HyProMag USA is held by Maginito Limited, a 79.4% subsidiary of Mkango Resources Ltd.

HyProMag has licensed the patented technology HPMS (Hydrogen Processing of Magnet Scrap) which is used to extract NdFeB magnets from electrical products such as hard disk drives and EV motors. The extracted NdFeB powder is in the form of an alloy which can be re-processed into different forms and sold back into the supply chain as rare earth permanent magnets.

HyProMag USA is currently completing a feasibility study for the roll-out of the HyProMag technology at three sites in the USA. The current focus is on Texas, Fort Worth for the first recycling spoke and magnet production facility (~500 tonnes of NdFeB finished permanent magnets and alloys per annum).

Julian Treger, CoTec CEO commented; “This announcement will provide further support to the business case of HyProMag USA. Subject to positive conclusion of the feasibility study, HyProMag USA is targeting first revenue by 2026, coinciding with the commencement of these tariffs.”

BBC News - Faisal Islam: Could the US economy be doing too well? - BBC News

https://www.bbc.co.uk/news/articles/cd131v26dneo

The speed and scale of the US push for eV and battery manufacture in the US is mind-boggling. I'm sure Cotec will be considering sites in the SE US Battery Belt.

Hopefully we'll hear shortly about the short loop plant commissioning (by end June). Good time for MKA to put out some marketing material.

March 25 RNS: Near term milestones for the recycling business include full commissioning of the recycling plant in the UK with initial commercial sales of NdFeB by HyProMag targeted for H2 2024, commissioning of the pilot scale (chemical route) recycling plant in UK to produce rare earth oxides and carbonates in H1 2024

Good article spot on. Malawi take note. Don't be greedy. Issue MDAs.

Https://www.nyasatimes.com/chakwera-leads-malawi-in-signing-16-trade-agreement-with-37-indian-investors-move-to-boost-exports/

Ties with India. Trade agreements signed. Some Indian interest in mining.

If India's allowed 16 agreements, MKA should get just the one MDA surely. Bit overdue.

The RNS might have spooked some into thinking there were fresh cash concerns. Clearly not the case as per the RNS and the existing stated plan, and it's been less than a month since the £750k was raised anyway. Mr 7p's taking full advantage. Sensible guy.

Presumably part of this : March 25 : "the Company has implemented a cost cutting exercise which will materially reduce the Company's monthly cash burn."

Ideally it would have been better to have announced today's news simultaneously with the March/April raise imo.

Time to focus market attention on the upcoming milestones, not cash again.

Maybe move on from the mine-refine-re-recycle model, which promised much but hasn't really worked out. Mine and refine are being hampered by high geopolitical risk eg Malawian bureaucracy. No MDA and talk at the forum of adding value to product and refining in country.

Perhaps better to divest Malawi interests and Pulawy now, or spin out Mkango Africa under A Lemon, to pursue wider exploration and work up the rutile and uranium eg. MKA to refocus resource and management time on recycling. Name change and/or merge with Cotec maybe in that scenario.

I wonder what this review will conclude and when we'll hear.

25 March:

William Dawes, Chief Executive of Mkango stated: "Mkango sounded out the market in January of this year with a view to considering a fund raising to pursue all of Mkango's existing business lines. Given the share price decline during this period, the Company has decided to minimise shareholder dilution at the current share price by raising a relatively small amount of money from existing shareholders and myself in order to enable the Company to achieve key milestones for HyProMag. In addition, to ensure enough financial runway to achieve these goals, the Company has implemented a cost cutting exercise which will materially reduce the Company's monthly cash burn.

As part of this process, the Company has decided to launch a review of strategic options for its Songwe Hill Rare Earths Project in Malawi as well as the Pulawy Rare Earths Separation Project in Poland. Mkango believes this strategic review will help maximise returns for its shareholders whilst it seeks to expand its recycling business."

Ok. HL only lets me deal USFP, thought I'd mention it as I assume they're both generally pretty liquid and fungible.

I'll be tendering all my shares, including the ones I bought last week on the back of the tender RNS.

The strategic review of Songwe will presumably consider that possibility along with all the other geopolitical risks.

There's no problems with what's in the ground in Malawi. It's getting the stuff out the ground. The problem's above ground eg with the MDA delays.

No probs buying on HL @ 37.57 (USFP).

I'd imagine at these levels most shares will be tendered with few therefore accepted over 7.33%. The low threshold might be putting buyers off.

Where's the terms?

24 April RNS: "The terms of the proposed tender offer will be set out in a circular to be issued in the next week, "

Yes indeed Lewis the potential in Malawi is of course huge and wide ranging, never in doubt. I'm just trying to read between the lines and am wondering where the review will take us. Accept the geopolitics and carry on, or sell and monetize now, for example. That latter scenario would be an orderly exit not a firesale rush no doubt.

For MKA not to attend Malawi's inaugural annual flagship mining sector event despite MKA's projects and profile in Malawi, suggests a difficult relationship to say the least.

I think the review's the right way to go. I don't have a strong view about staying or exiting Malawi. You seem strongly in favour of carrying on. Any other views anyone?

I'm adding too btw.