Member Info for GLR1990

The recycling business is worth more, simply based on face value selling 20% to Cotec, more than the current cap (40% more actually)

Cotec paid £3.5m for 20%

Entity valued therefore at £17.5 (in 2022!)

MKA holding 80% = £14m

And thats with no developments in the last 18 months

It is an absolutely absurd price

At the end of the day we all have our own investment strategies, I dont mind being aware of the negatives if I feel they are relevant, but that should not outweigh or cloud your positives. One thing we can all agree on, lets hope this is a major success in the near term and long term. We have a chance with all our JV's to create something truly special.

It's clear we are not going to agree on everything, and that is what makes a market. No need to resort to conspiracy theories, I can confirm we are not the same poster! However to summarise it is ultimately irrelevant. If we do raise short term, as long as its not a great amount, it wont hinder the future too much (even £1m is only 10% dilution) and if we raise via selling some Maginito, then I would expect the SP to double. Not ideal, but such is the market / geo landscape.

I would like to see another BoD member introduced (we never replaced Talaxis) that may be a bit more savvy with UK market. Just another member who can assist like Cotec appointing various ex DOD members etc to help in the US, feels like we need a bit more clout this side of the pond.

IPA is it irrelevant if we are the same person posting, are the facts we are posting not relevant?

If you want balance, as I certainly dont want my investments BB to be completely negative, then here is a major positive that could become a reality.

EnviPro are approving our magnets, they have a very healthy cash position (£3-4m+ generated in the last Q alone) they could easily take a 5-10% stake in HyProMag like Cotec have done and create a Japanese JV, we would sell 10% of our 80% holding and take all the proceeds. The deal would likely be done at a much greater premium than what Cotec paid This would likely double or treble the SP from here.

If/when envipro approve the magnets, then we may achieve very favourable funding. this could be the plan, and it is the plan I had hoped for. That is the risk one must take now buying open market, we need funding before Y/E that is almost an absolute certainty. If it comes from a placing it will make investing in the BoD impossible (and the market will know that) if it comes from an alternate source, the BoD have pulled off a masterclass and remain in the high regard I still hold them in. Because I do have a lot of respect for our BoD, they have done some significantly great things in the past 5 years and a lot has been out of their control.

You are investing on hopes and prayers, no offense!

Do you really think labour will invest in our projects in the first couple of weeks of government?

Lets look at the facts

- we raised £750K which was not the full allocation we wanted, we have openly said this in the RNS

- we raised at a whopping discount, but it was OK because it was short term, and appeared we had a plan to raise funds via better means (else why turn down the market)

- In Q1 2024 the price action suggested placing, anyone with any market experience could see this, the same price action is occurring now and chunks are going out below 5p - why?

- The company clearly needs funding as we turned down funding! If you go the bank for a £5000 loan and only come away with £2K because you dont like the interest rates, you still need another £3K from somewhere! In this market if you go back to the same bank / broker they are going to take you to the cleaners!

- At the end of the day I hoped we had a plan to fill the funding gap WE TURNED DOWN in the subsequent months, I dont believe we need funds ASAP but the market is clearly aware we will eventually need funds before production and if we dont get this via selling perhaps a bit of Maginto, or a government loan (which you say and I agree Labour will be much more helpful, but its very very early days) and this company would be insolvent if we just relied on government funds, that is an absolute fact so theres no guarantee they will fund us here, it will likely be private equity or a JV / stake in Maginito.

EnviPro have cash and hopefully want a slice of the action, I am still leaning towards this theory and it would accelerate the SP (probably double it from here) but to ignore all the red flags is not investing it is simply gambling.

IPA I respect all that but we've had the support of the UK and the EU for years, in that time the SP has gone from a high of 38p to a low today of 4.5p

The EU helped us with half of the German plant, yet we still needed to raise at a then discounted price of 12.5p (when the SP was 18p 6 months prior) to fund the CLN

The UK has helped greatly with HyProMag, and various projects like SUSMAGPRO and the Wind Turbine Project, but we still needed to give away 20% of Maginito to survive, and recently raise at a disgraceful 5p to keep the operations going. If it were down to governments alone, this company would have gone insolvent WAY before commissioning. They may step in and assist, but relying on that based on prior evidence is very dangerous.

Going to market at 5p was the first red flag

Going to market even lower with your tail between your legs because you thought you could do better elsewhere in the subsequent months is game over.

if we raise below 5p I will be selling on the post placing bounce, and moving all funds to cotec holdings corp (which in better news, you can now buy on HL)

My hope is we find a buyer for perhaps 5-10% of Maginito, said this all along. EnviPro perhaps? That would really flip the market and would be a BoD masterclass.

Well it has BMN DNA 🧬 for those who know their history

BMN failed primarily because it couldn’t control costs, the AISC was always very high and when prices were not elevated, the company struggled to turn a profit. Once production goes sub AISC it’s not long before the cash runs out and companies have to use alternate measures to fund the business

With costs at $28K for the last Q, and guidance between $25-30K, tin prices need to remain highly elevated for this company turn a profit (this Q)

Tin price was down ~3% today hovering just over $30K

So it is wise to be cautious, but it’s also not wise to completely write this business off just yet, the tin price is still very high so if they can control costs, it will be a strong return to previous highs at these tin prices.

If they cannot and the tin price continues to drop, then the cash will run out and that’s when the SP destruction begins.

Could be a pre-placing pump and dump

raised 3.5m euro in Sep 23 plus a further 2.6m euro from a strategic investor, final tranche of that was due may 24 but operating loss for 23 was 4.5m euro, the margins are absolutely tiny (2.3m rev vs 2.1m admin) so even if revenues treble they will still be loss making

Going concern says OK so contradicts need to raise

Very odd buying and on the face of it makes no sense, but who knows in this game.

Will post on Twitter as easier to show with screenshots, search the hashtag #MFAI

OK figured it out, not obvious if you are not invested how much exposure / what company and product is integrated etc., good luck to those here looks like a superb development and a huge value driver for the PF.

What's the tie up with CHATGPT / OpenAI? Is this significant?

Bit of volume and interest from the lows

cashed up in a gold bull market perhaps?

Nice clear update from US partner

Need ST funding otherwise SP wont move (hopefully a grant or a business loan perhaps?)

US production H2 2026

UK Production hopefully H1 2025 or sooner

Like I said huge fan of the business, technology, BoD

Just not a huge fan of the balance sheet, for now!

I still hope we sign a major partner, who takes a 10% stake in Maginito (our holding of 80%) and we get a good price for it (At least $3m USD)

That would see us through to at least H2 2025, we can all sit back, relax and let production scale up.

The Chinese are already stirring the RE pot, I can only see prices going higher. They know the west is putting plans in place to accelerate their own domestic production, the time to strike is unfortunately now, the longer they wait the less control / impact it will have.

Plus, they have already banned exports of magnet technology.

You wouldn't believe how perfectly MKA fit into all this looking at the share price... its down to macros and cash, simple as that sadly. One we cannot control, the other... we have some control over, but I am aware it is difficult to find a buyer on favourable terms. Good luck to the BoD

The EnviPro JV was a superb coup, if they approve our tech / magnets, they are flush with cash so could look to take an initial 5% position, and add another 5% perhaps on commission of a Japanese plant? Id be happy with those terms.

The market cap will increase when the new shares are admitted to trading

' the Company's issued ordinary share capital will consist of 2,295,930,633 Ordinary Shares'

So at 0.10p ~£2.3m GBP

Current offer price of 0.13 is a 30% premium, so around £3m GBP Market cap (at current spot) vs £1.8m cash minus fees and commissions (likely end up with around £1.6m)

The Company intends to use the net proceeds of the Placing for: i) paying general and administrative expenses; ii) working capital purposes; iii) undertaking research and development; and iv) marketing expenditure.

It's basically an IPO at £2.3m market cap, best way to look at these type of raises - a new business venture and a fresh start for anyone involved in the placing and new investors buying close to placing price.

Was my large post from this morning removed?

Very odd if so?

Massive increase in PBT

https://www.bloomberg.com/news/articles/2024-06-12/starling-bank-earnings-boosted-by-higher-interest-rates?srnd=all

Great post KP

If they want to give us £5m for 10% I will happily accept a £50m valuation, which seems a lot fairer considering the progress we have made since Cotec took a stake (and will be adding 3 US plants + contacts and funding etc.)

The company really should be valued much higher, but such is the markets we are in.

Of course, the sheer idea of raising £5m for 10% of HyProMag could accelerate our SP to a level in which we could raise £5m at group level, keeping hold of our 80%... although I feel EnviPro will want a slice of the action and not just a 50/50 JV in Japan where they cover all of the costs etc.

Yes it would be valuable to them, but at some point we will need interim funding before we reach profitability, raising in the UK markets has seen us go from 24p to 5p... 12.5p to 5p in just over 12 months. If WD wants to show UK private equity what they are missing out on by being greedy (remember we only raised £750K because PE was being greedy at 5p) then he could do a lot worse than selling a 10% stake for £3-5m.

Current MCAP is £21m at 8p

If we go to UK equity markets its 5-6p as per last raise (maybe 6p now as todays news sinks in and any further developments)

If we sell 10% of our 80% holding to EnviPro for £3m then our entire cap is covered by our 70% holding in Maginito vs £3m cash, putting us at 9-10p+

Will depend on a lot of factors, for example EnviPro may want a stake before they commit to spending X and Y amount in Japan (as will need funding)

My guess is 50/50 JV in Japan, again like Cotec to build 3 plants

They will provide the cash / funding

Likely want a 10% stake in parent company (Maginito)

Personally id rather IF/WHEN we need cash we just raise at MKA level, keeping 80% of the entire group but it doesn't always work like that and £3m cash sets the company up for 2 years, which literally gets us to the promised land so theres a lot to digest here.

B99 what do you think of this should we require it?

Sell 10% of our 79% stake in Maginito to EnviPro (they have ~£30m cash in the bank and made £5m cash in the first 9 months alone of 2023/24)

We own ~70% of a huge global operation, the Maginito valuation rises and we establish a solid cash footing for the next 3 years to allow us to get to full production / profit.

Also protects the tech somewhat as you have more major players holding X and Y, in friendly territories. Dilutes Talaxis a bit more as well if that is a requirement.

Cotec and EnviPro are not desperate, so they wouldn't be looking to flip for 100% etc. so buyer would really have to offer something huge as both companies can add considerable value.