Member Info for GLR1990

I would add more but the company needs to deliver some actual material value to shareholders

I do believe the value is increasing behind the scenes, but bad market or not we gave out £1.25m of shares at 5p with £1.25m in risk free lottery tickets at 7p so as much as I think we've done a great job technology wise, we still are and do sit on large paper losses.

Would I trade my entire holding now for lottery tickets at 7p, risk free? No but many will be happy too, especially those who are selling now into profit (albeit the latest profit is ~2%!)

How long will it take to clear? I suspect until we release some material positive news, then we will have to deal with the warrant flippers at 8p... however Ill be more than happy with that if it adds a cool £1.25m to the bank!

Steady as she goes, for now.

(Of course someone may come to their senses and just offer to buy us out, even £40m for HyProMag would be 2x our share price and put a cat amongst the pigeons... not that I would be happy with that price but I would certainly enjoy watching the share price rocket!)

Recent developments for HyProMag have been great, but lets be real we are at least 12 months behind the original schedule. The US DFS is next up and looks very promising, hopefully this can unlock some serious funding in the US.

Of course the market doesn't always reflect true value, short term suppression to the SP however hopefully like in the past when we issued warrants, long term gain.

I am still sticking to my prediction of 20p by Y/E

(although I am usually wrong)

Path:

- Chinese regulations hammer the market, pricing increases in the west

- RE investments increase (another one today closed over $100m USD)

- US DFS completed with viable economics - looks super attractive and fast tracks funding

- US funding comes quickly afterwards (Nov-Dec 24) for both Songwe and the US plants (MSP finance network set up last monday with Alex Lemon in attendance)

- MKA starts to re-rate on RE focus, funding in the US and a re-valuation of the technology, anticipation of production and our first offtake agreement (Nov-Dec 24) already happening (look at Pensana, Lynas and MP Materials)

BoD raised £2m at 5p and £1.25m warrants at 7p short term

People will be flipping the warrants for a free run at the investment at 7p+, cant blame them either even selling at 5.25p is netting you a profit

Not that I would be selling even if I did have warrants at 7p, will take a bit to clear then off to the races we will be.

Market is ripe.

Got to get rid of the asset

Until we do, will always be a huge gamble this investment.

If we actually finance it and operate, ill be gone. No way I am taking that much of a risk, here for the recycling and the recycling only.

In short I would say... relax!

1. RE prices are doing the job for us (trending upwards from lows just like our SP)

2. Weve got the MDA, ESG etc. Only a few projects worldwide have this, every single RE project has been badly impacted including many Chinese ones which posted whopping $200-300m losses, so prices need to rebound.

3. Cotec are doing a great job in the US, leave them to it. (DFS by YE)

4. Germany is moving ahead finally at pace

5.UK plant should be producing in Q1, we can start using revenue / profit multiples and scale up estimations etc. forward PE's.

6. EnviPro are cash rich, so can accelerate us in Japan

7. Legislation could not be better with the US inflation act / critical minerals list, and the EU CRMA, We are part of both and also part of the MSP so couldnt be more aligned with governments

8. HyProMag was valued in early 2023 at £3.5m for a 20% stake, meaning our holding is at LEAST worth £14.5m with major major progress since that valuation

9. MKA Poland just got valued at ~£3m

10. So 8/9 put the value of the parts way above the current market cap

11. We have raised £1.4m (inc. the Poland stake) which should take us right through to H2 2025 as we no longer have major costs for Songwe.

12. More jurisdictions may be on the horizon, Canada and Mexico.

13. We are building a full suite of products, short loop, long loop, shredding on site etc.

14. We have a good range of magnets that we can already produce, with more on the horizon.

15. we are future proofed, currently taking part in Wind turbine projects

16. we are ready now, being able to shred and process electronics and EV motors.

17. Cash rich heavy investment peers like MP and Lynas.

Honestly, for the the current cap you will struggle to find more potential.

Gallmat we all have to make up the estimations

Until the US DFS is completed, which will have up to date economics, and the joint DFS with Pulawy and Songwe is completed, its all outdated guesswork. The last time we had a solid estimate for Songwe was 2022 and it lasted about a month because as soon as we released the DFS, literally at the peak of RE pricing, they began to crash.

There is enough information on this board, and from previous interviews via Cotec etc. to make rough estimations, but until everything is operational they are all subject to change.

Why right now all you can really focus on is 1. are we making progress (yes but slower than I expected, albeit with some great developments like the HDD shredder and EnviPro) and 2. is the RE market getting more attractive (yes prices are up 20% from the lows) 3. is the market getting heathier (id say no but interest rates are coming down slowly so theres hope on the horizon) 4. political landscape (bearish due to election changes but very bullish due to RE policies and upcoming policy amendments / announcements) 5. does the company have enough cash to reach significant value driving milestones (yes, very much so)

Oh which we are far from it, the BoD are very shrewd and spot value before anyone else.

The recent tie up with the pre-processing units is super interesting, something I think we will acquire in due course.

Sorry Total Operating Costs US$/kg TREO 30.1

Dont forget Pulawy improves economics by 33%

US tariffs of 25%

I still think ND needs to get up a bit more (650K is my sweet spot) for it to be confirmed economical

Ah there we go!

Total Operating Costs US$/kg TREO 25.3

This before inflation (although thats coming down)

So if Nd can get to 650K Yuan ($91 USD) which would attribute ~$22.5KG to the basket case, the rest makes up another $7-8KG I think we are profitable or at least economical

Bring on 650K Yuan!

Hi Gallmat

Songwe is a complete bonus to me, but if it could get close to $30-40KG then it would IMHO be economical, especially as a strategic mineral + tariffs and tax breaks

However, the excitement is much more geared towards the recycling plants output

Each plant is estimated to produce 100t/pa of NdPr scaling up to perhaps 1000t/pa

So the difference in the output here is huge

100t/pa at 535K Yuan = $75KG x 1000 x 100 = $7.5m USD

Each small rise here adds enormous value, and again this is without tax breaks and tariffs.

And yes, although that was the price at the time

the DFS, using pricing at $211KG per tonne of Nd is now absolutely ludicrous, fully aware of that.

Hi Gall Mat

It is all here

The assumption was extremely high, $210 per KG for Nd

https://mkango.ca/news/mkango-announces-results-of-definitive-feasibility-study-for-the-songwe-hill-rare-earths-project-in-malawi-npv-of-us-559.0/

The DFS figures post RE price drop appear ludicrous, but when it was done it was 1500000 yuan per KG which was as stated, $211 USD (we did the DFS at the ultimate peak!)

Right now it is contributing about $75KG/4 so about $18USD to the basket price. It was 66% of the value but that may be less now due to price rises in.

So Mkango basket price as of right now is likely to be around 33% higher than Nd, so ~$24USD per KG if I am correct?

Hi Gallmat hope you are well

Page 54 onwards

https://minedocs.com/22/Songwe_Hill-TR-070121022.pdf

10p by the end of the month if NdPr Hits 600-650K

This isn’t a new placing, it’s the receipt and issue of shares for the initial placing in August which states that it would close 5th September

Feels like a bit of stockpiling pre-Chinese announcements

As per other elements, I wouldn’t expect a massive rise initially unless they do something drastic, but in 6-12 months 600K would be extremely healthy - just the break of a downtrend is usually enough and some stability

Quite a few catalysts actually

Oct 1st - Chinese Rare Earth Regulations (is this the reason for Ndpr ticking up?)

NDPR price rises (as we are extremely exposed)

Stakes in Maginito (EnviPro if they take approve and take a position, perhaps at a higher valuation that Cotec, this would attribute immediate value)

Further Partnerships with SUSMAGPRO partners

Offtakes with Blue Chips / Trials

So a lot of positive Newsflow now expected over the next 12 months

As per posts below, we really need a government to step in and accelerate this. My top bet is on the US DoD unless the EU decides to finally make a move. The US has already given Lynas $256m USD, we would need about $45m USD to create a US Spoke and Hub Model based primarily in Texas, we could then supply the US DoD with thousands of tonnes of NdPr / Finished Magnets PA.

I think MKA will go on a run now

Will be ups and downs (probably get ahead of ourselves Q1/Q2 then production / margins will be the topic of discussion like most early producers)

Lots of catalysts

- Big OEM household name offtake / partnership

- Production revenues / margins (PE ratios)

- Government Funding (US DoD)

- Songwe Funding

- Pulawy Funding

I think we are about 80% of the way

The final 20% will be creating the full suite of magnets, offtakes and partnerships

Lets say bosch come to town, they want to use our facilities to recycle their products and in turn take the magnets / powders as an offtake. So they dump all their electronics on our door... that doesnt help because we can seperate them efficiently (outside of birmingham where this initially existed) as of today now we can, anywhere in the world.

So it takes a huge third party liability out of the question, we can arrange for supply of raw electronics to our locations / plants, separate on site and produce the magnets / powders.

Not sure on capacity but if I am an OEM its a lot easier now to sign a deal with HyProMag because its a one stop shop (once we get the full suite of magnets)

SP rerate has begun, full expect multiple offtakes now from OEMS, some big names will be on those RNS which will attract the market. 20p by Christmas?

I can see us picking this one up for a good sum

One of those investments that initially dont add any value to the SP but in a years time add a tremendous amount, look at HyProMag when we first bought a 42% stake for £500K.

BoD will be planning on taking the lot, looks like its a single owner so I suspect a deal will be done for a win/win price. Maybe a shares/cash/salary deal, lottery jackpot for the owner to be partnered with a £18m cap listed company (which should be £50m+!)