Member Info for GLR1990

Yes agree, moving on swiftly as we can close that debate once and for all.

But that the market now, the US will clearly buy NdPr at a price floor of $110KG

I agree at current pricing, then Songwe would need to come in at the very low end of costs $15KG and enable Pulawy to process the TREO to remain economic.

This is partially why I have only really mentioned the Songwe economics until now, because one of the key concerns / variables has been largely addressed, the price of NdPr.

They dont need $145/kg, it is economic at the price floor of $110KG, considerably economic even if no other RE oxides are subsidized.

Pulawy was not factored into the DFS calculations, it was simply estimated that refining processing the TREO in Poland should enhance the economics by 33%.

So I think Songwe is finally looking really good.

Who knows if the EU wants to be competitive they may need to offer a similar or higher price floor! Otherwise everyone will sell into the US. (remember when the US was paying more for Vanadium?)

Cant catch a break from the market

CEO buys at 0.35

BTC treasury with £10 incoming

Market cap £15m diluted which would be a tiny 1.5x MNAV!

Surely the Tao Subnet business is good for £5m...

Generating over 4 tao per day now, adding 1+ per day. In a couple weeks could look very good.

Agree CB in the next few days IMHO

Cotec just raised $5M CAD for HyProMag US

https://www.ainvest.com/news/cotec-holdings-strategic-financing-blueprint-sustainable-resource-extraction-efficiency-2507/

Thats a substantial raise, if you read the offering they budgeted $8.5m and $5m of it was going to HyProMag US to finish the design and engineering (IMHO, perhaps buy some equipment and really accelerate it)

If anyone think JT and Co. will sit on their hands here when they have the potential to create a $1bn+ company by acting fast... no chance!

In Short:

- no mine outside of china will EVER be profitable based on chinese pricing

- the US has introduced a price floor for NdPr

- With NdPr making up large percentage of the songwe 'basked value' at $110KG it is in my view Songwe becomes profitable again

- With Pulawy in the mix and part of the SPAC, costs can significantly be reduced

- the US can protect national security and the mine should be profitable.

I think that makes a compelling investment case and enough for the US to take over.

Seems like one of the final arguments is Songwe is not economic, I need to conduct a thorough investigation now with NdPr set at $110KG (which is absolutely incredible!)

So the initial DFS stated a post tax NPV of $559m (10% discount)

IRR was 31% for for the interests of national security, lets put that aside for now. (US invested over $260m in Lynas and clearly just invested in MP, and payback wasnt an issue compared to supply)

Production was estimated at 6000 tonnes per annum give or take, 55% TREO and about 31% of the basket was NDPR - THIS IS CRUCIAL.

Years 1-5 were estimated to be less whilst we ramp up, so lets just say 4000 tpa for years 1-5

Initial capex was around $300m with contingency payments.

Nd Pr Ty DB contribute basically 90% of the value of the basket, NOW AS POINTED OUT, when the DFS was done NDPR was trading at around $130-150KG

Costs were estimated at around $15-21KG, as many have mentioned here (even those with concerns)

At $110KG NDPR, the total basket case IF I HAVE WORKED IT OUT PROPERLY stands at around $29KG give or take.

The costs should remain controlled as it is open pit mining. And industry costs are coming down or stabilising.

So if we calculate the NDPR contribution which is 31% of the 55% TREO in MREC, then we end up with 0.17 x 110 = around $19KG give or take just for the NdPR

The DFS had us at around $32KG, so lets take off the $19KG for the floor NdPR pricing

Dy and TB are still pretty hot products, but to be even safer, we will drop the rest of the MREC pricing by 60%.

Even with the rest of the MREC discounted by 60%, we still get to around $23KG production.

With costs at $15-21KG, if they come in at the top end then margins will be tight, but profiable and enough for a similar proposal to MP (where when prices flip, the US and the company get upside)

So best profits $8KG, worst case around $2KG

However many are forgetting PULAWAY

This was presented to enhance the Songwe economics, by stated 33%.

So if we add Pulawy into the SPAC (which we have) we can seriously reduce those costs, giving the mine another outlet to be highly profitable.

This assumes no price floors for other materials (like Dy and TB)

UK is pretty much private seed funding

We have proven the technology in the UK and manufactured a good range of magnets (more to come)

Cotec took a 20% stake to drive expansion in the US

Now the UK have proven the investment case, Cotec (et al) will take the technology and turn it into a $1bn IPO on the NSDQ in the next 12-24 months

So buying MKA here is like taking part in a heavily discounted, private UK company.

UK govt has no chance, this is already in the hands of the US.

Seriously...

$110K NDPR makes the songwe basket worth an absolute fortune

$110K NDPR makes the HyProMag US DFS an absolute gold mine

Seriously, how do we lose? Feedstock? We can buy as much as want with those margins!

Dont want to say it but... how can we lose?

Half of Tiger Royalties subnet Tiger Alpha, is mined by Tao Strategies

Oliva Edwards is the founder of Tao Strategies, and of course CEO of CLAI.

Default is 256 miners, but if you are getting top rewards and generating the best performance you can increase your cap

Note, the miners all get a share of the reward

So the more miners = the more computing power, but also dilutes the daily reward.

Fine balance.

The subnet is the 'brain' to speak, its the AI platform, the idea, the concept.

The miners then use their resources to perform calculations, e.g. lets take the subnet that predicts sports scores

The miners perform the calculations based on the initial subnets code

By staking TAO, you become a validator, and you score the miners calculations aka validate them

the best AI generated outcomes get scored the highest, and poor performing ones (e.g. 1+1=3) get scored very low.

This results in the subnet having an overall score (accuracy, performance, use)

The better the AI, the more TAO the subnet receives. Each miner and validator works to perform and score, a way of decentralising AI and allowing the community to score its performance (vs a centralised business or organisation)

The max tao per day is capped at 7800, this is distributed to the subnets, then distributed to the miners and validators.

The best performing subnets receive the most tao per day

Miners and validators want to work with the best subnet (concept) because the best subnet gets most of the tao, so good AI attracts good AI. There are only 256 miner spots, so competition is fierce for the best performing subnets.

A bit like a decetralised AI market place, with fixed rewards for the best performing AI.

Its not necessarily having more miners that will increase the tao, its the miners choosing to be part of Cel Ai that will increase the tao.

Check out cotecs latest report filing on their website.

They raised / closed a $14m CAD offering last night.

Of which $4.9m CAD will be spent to further the detailed engineering and design study for HyProMag US

About $8m of the proceeds where accounted for.

1.2 tao per day! :-)

Any idea what its doing? (what its function is?)

The £10m investment will reset the market cap at todays SP (0.32) to around £16m, vs what will eventually be £10m Bitcoin

Or in BTC terms, an MNAV of 1.6x (total company value vs bitcoin on the books)

Before the mania, that was about right for a BTC treasury, however the rest (esp SWC) are trading at a significantly higher MNAV - this is because of something called days to cover (which I think should be based on amount raised not amount bought, but hey ho)

So if CLAI buy say £2m BTC per week, for 5 weeks, and we remain at £16m, then our days to cover will be ~8 weeks (e.g if we kept buying for 8 weeks, we could cover market cap)

This is a very attractive metric.

Nothing is guaranteed of course, but IMHO all of the other treasuries need to either A. Crash or B. Stay where they are and let CLAI rise to them.

So either everyone fails... or CLAI is a success (from here)

GLA and not advice.

Same!

Really is incredible though isn't it?

Tempted to buy some tao tokens myself and start staking.

Mr 50K will not be stopped.

Https://www.reuters.com/sustainability/climate-energy/rare-earth-magnet-users-jolted-into-paying-premium-prices-ex-china-supply-2025-07-01/

In short, T/O offers are superb for short term gains, but imagine you held Tesla when it was $5 a share and someone came and offered $15 a share BUT took it private, or swallowed it up as part of a larger cap. (e.g if MKA $400m became part of $6bn MP)

Yes you made a tidy 200%, but you were robbed of arguably the most valuable thing in investing, opportunity, you were robbed of a 100x. Now you have to go elsewhere, complete all that due dilligence again and find another 100x.

This is why LTH are always ranting about discounted valuations and concerned when the disconnect is so great, because instead of getting £1bn in 12 months, we end up with £200m in a week. Its nice, but it robbed us of £800m and we have to go find that elsewhere.

Yes correct

It would contain the offer valuation and how they intend to pay for the 'valuation' e.g.

Lynas have approached Mkango with an all cash offer of $150m USD for Lancaster Exploration

In this case, the SP would rise immediately to within around 5% of the all cash offer. As its cash + valuation reset.

If it was a cash / share offer, depending who offered would depend on how much strength the market gave, e.g. 50/50 cash share offer from a no name company, we would likely still trade at a discount to the offer price, but from a respected company (like MP for example) as the shares would be highly liquid, it would be like an all cash offer.

If management rejected, then the SP would likely trade close to the offer in anticipation of a second, much higher offer.

if management rejected the second offer, or the party pulled away, then the SP would retrace albeit not back to the starting point, as the market has signalled what it thinks it is worth.

So offers are superb for SP movement, but can be very bad long term when you look back and see how much the company ended up being worth.

For example, Shanta Gold was sold for around £100m GBP before the gold run (when gold was $2K) now they would be worth significantly more, the SP went up due to the offer, but investors hated it because it undervalued them long term... and they were proven to be correct.