Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
Edging up. Possibly market thinking Sanchez' efforts to give an amnesty to the seditionists are doomed so his coalition's doomed too meaning fresh elections and a more pro nuke govt. The Catalans have his balls in a vice.
BBC News - Spain congress votes against Catalan separatists amnesty bill
https://www.bbc.co.uk/news/world-europe-68147811
My understanding is that the "few" outstanding MDA points under negotiation are still fx, foreign accounts and royalties. Below are the main provisions re those points Globe got in March. We're rather caught in the middle and suffering as MKA shareholders, and Malawi are risking being seen as uninvestable by delaying. Definitely time for a breakthrough from everyone's p.o.v.
It'll be hard to depart radically from what Globe got despite talk of changing the law around fx, and there'll be devil in the detail. But they've surely had time enough to sort it all now.
The good news imo is that MKA's MDA is the last big piece in our jigsaw so things should move quickly when we get it. Globe's was an early piece in theirs, before much of the feasibility work, and project funding.
• Globe is required to comply with all applicable foreign currency laws but is permitted to maintain
one or more foreign currency accounts outside of Malawi to meet its foreign currency obligations to
the initial Project Lender for a period of 7 years after the establishment of the relevant account or
the date on which the Company has discharged all its obligations to the initial Project Lender. These
obligations include (but are not limited to) the payment of interest and principal to the Project
Lender, the payment of mandatory pre-payments to the Project Lender, and the establishment and
maintenance of reserves as required by the Project Lender.
• The Malawi Government is to receive, at no cost, a non-diluting 10% equity interest in the Project,
with an option to acquire up to a further 10% equity interest (Equity Option) upon completion of
the construction, commissioning, and start-up of operations at the Project as approved by the
Project Lender. The Equity Option is a fully contributory interest and is capable of being diluted if
the Government does not meet any call by Globe for additional equity funding.
• The Malawi Government will receive a statutory royalty of 5% of all revenue earned from the mining
and processing of ore at the Project. The Kanyika community will receive a royalty of 0.45% as
prescribed under the Act.
Ball is mainly in Malawi's court imo. I don't think MKA can do or say much more atm. Lotus give frequent updates but only ever to say they're still at it and the indicative timeframes have all proved unrealistic. I think we just have to keep pushing but must also wait whilst a developing nation gets its act together.
Principal MDA issues for MKA's MDA are royalties, fx and the extent to which proceeds have to go to foreign or domestic bank a/cs. MKA's hands are largely tied as funders requirements are paramount.
Re Globe, Malawi gets a 10% free equity stake and 5%/0.45% central/local royalty.
Lol.
I doubt Cotec would want Songwe so I reckon another smallish raise by MKA whilst the MDA is awaited, unless it arrives in the next couple of months before the cash runs out. In that scenario I'd hope for a comprehensive funding package for all MKA's needs.
At least MKA is a new project. No legacy issues like Lotus' with Paladin. We might even get our MDA first. We know Malawi want it too and have issued one already to Globe. MKA's will probably turn mainly on funders' requirements.
If Lotus are hoping for their MDA a month or so after receiving a draft or doc setting out Malawi's position....what's the best guess for when MKA will get theirs?
Could be anytime of course but perhaps after Lotus.
We'll be running on fumes by April so perhaps another raise around then. Should be no problem and no big discount given the value elsewhere in the business particularly the recycling side. Loans may also be possible I guess.
I'd been hoping for an earlier MDA triggering a comprehensive funding package for Songwe w/c and other requirements. Might be treading water for a bit now.
Hard to see why the drop unless there's something we don't know. Wouldn't be the first time on AIM.
Often it's money but that doesn't seem too bad and even if it comes to raising more in a few months for working capital it should be readily available on reasonable terms atm imo.
When Mkango Resources last reported its balance sheet in September 2023, it had zero debt and cash worth US$2.3m. In the last year, its cash burn was US$3.3m. That means it had a cash runway of around 8 months as of September 2023. Cash burn rate reducing though.
https://simplywall.st/stocks/ca/materials/tsxv-mka/mkango-resources-shares/news/were-keeping-an-eye-on-mkango-resources-cvemka-cash-burn-rat
Maybe it's just some investors losing faith in the light of the lack of progress/comms from Malawi.
Thinking of MKA while reading Irwin Stelzer today talking about China shaping climate policy: "Xi has it in his power to slow the growth of the American economy by denying our companies access to chips or the rare earths the output of which they dominate."
And the uk gets it too...
https://www.world-nuclear-news.org/Articles/UK-releases-roadmap%C2%A0to-quadruple-nuclear-energy-ca
Come on Spain
I'd still like to think getting the MDA over the line asap is best for all parties. I think MoM should update given its own deadline's expired. Hopefully the delay isn't driven by temporary fluctuating issues like fuel supply, inflation and location of FX accounts. They're relevant of course to how quickly/slowly to build and produce over the life of the mine. But right now let's see the MDA so at least we know we can actually develop Songwe when the time's right.
US get it. Spain are just watching the planet roast and buying Russian stuff 🤦 The Russians must be laughing all the way to the bank.
President Joe Biden's administration sees the new reactors and maintaining the current fleet of nuclear plants as critical for its climate change agenda.
https://www.reuters.com/world/us/us-seeks-jump-start-production-higher-energy-uranium-now-made-russia-2024-01-09/
I'm just saying were actual sales to match (or indeed get anywhere near) projected capacity we'd all be quids in and very happy very quickly! Sure unlikely but I'm looking forward to details of these new contracts and hopefully rapid scale up from here. I didn't suggest the £50m/£75m are sales projections, you've misread that.
Damay obviously it's capacity we all know that. It's encouraging to see this projected expansion particularly in view of the anticipated new contract awards. Looks to be going in the right direction and I'd hope for rapid scale up from here.
Plenty going on in the courts. Appeals against Miteco's refusal to permit and the annulment of the exceptional use and urbanism licences. Hopefully everything will be facing the right direction soon. There couldn't be a better time to get digging. A strategy update would indeed be welcome.
Https://masterinvestor.co.uk/equities/small-cap-catch-up-steel-myths-and-brakes/?mc_cid=54dfd4d609&mc_eid=340be254f4
And finally. Lightweight tip article.
Didn't MI also tip this recently at 23p ish just before the rns from hell?