Member Info for GLR1990

Are WSG involved with the above aiport?

Told you guys to relax, not many companies sub £20m in the small cap space that are actually profitable in blue sky markets / tech markets.

If there are please let me know always happy to diversify.

If the profits are 60% then you don't even need to do calculations just enjoy the profits

If the margins are less then the investment case is still absolutely strong at 20%, you have to recall the company was already strengthening its balance sheet and looking investible before this contract landed. In reality the contract has probably only added maybe 1.5p to the SP (~£4m cap) which is absolutely absurd.

I am eager to view the call next week (if there is one) and see what PF says about finding funding (which will likely be super easy to find since they're in with the UK GOVT now and trade ministers) and second what the margins are expected to be for this contract.

DRC might want to offer the funding themselves for this in return for WSG to hold the revenue in a DRC bank account, having $10m+ USD in the DRC bank accounts is very good for FX control and to support their own currency so win win for both parties. If not I suspect the UK will finance any shortfall to get it up and running. Or a bit of both.

Just relax if all that has been said is true, and margins are over 50% then you dont have long to find out. The contract begins in July, so financing will be sorted before then and who knows they might be able to use their new credentials to land even more deals. At £10m cap there's not much else out there in this space that could be making a genuine £m+ profit per annum bottom line, so just stage your buys if you are buying, if selling then move on elsewhere.

Being profitable makes all the difference, whether its $1m PA or $5m PA (depending on margins and eventual bottom line) put you on the radar of institutions, the contracts are all long term deals so less risk vs a one off contract or hoping to repeat YoY, and dare I say they may be on the radar of some larger players like allied who may want to swoop in and buy them out (only if profitable of course)

Hi Mike, interesting ive just been informed of this by other investors that the margins could be 60%

Would be good for the company to expand, perhaps via investor call (next week is it?)

As 50% margin is significantly better than 20% margin and really is the difference between potentially 5-6p and 12p+

It's up from 1.4p so many will exit with a very handsome profit, and well done for taking the risk.

Those buying between 3-4p are paying what £11-13m market cap?

With this contract even at 20% margin, that's a $20m NPV over the next 10 years for a tech company, the valuation should now realistically be between 6-7p and that's only on a PE of 10, but this is the UK market.

Lets see where it goes id probably sell out at 5-6p and let someone else take over for the long ride.

If the margins are higher then of course adjust the SP target accordingly.

Wow he actually landed it, and no joke this time you could see the videos and also the articles showing they were out there are a key part of the delegation

No waiting around either $10m PA from July, that is a serious contract well done PF and the team, what a job.

Funding out of the current bank balance then debt arrangements likely with UK finance, couldn't really ask for more they have absolutely smashed it.

Terrible Idea

The SP Is 7p at he bottom of a bear cycle, 8 years ago it was a hole in the ground that looked like it might have some decent rare earth elements at the bottom of it and trading at 2-3p

Since then they've

- raised $14m from Talaxis to fully fund the Songwe DFS

- bought an initial stake in HyProMag, before anyone knew what it was, 42% for £500K

- Sold 20% of that Initial stage in HyProMag for £3.5m GBP, valuing the entire 'HyProMag' company at £17.5m face value, vs the £500K (42%) they paid for it, which give or take works out turning a £1.2m investment into a £17.5m+ investment and likely considerably rising. What percentage of small cap LSE/AIM CEO's have done that?

- Found an unbelievable partner in Cotec who have verbally promised to raise $30-50m USD for three US projects

- Found multiple TR1's albeit they have gone quiet, a good percentage of the company is privately held

- Raised over £10m GBP of funding from various governments to kickstart two projects one in the UK and one in Germany

- Found a suitable location for a EU processing plant and established a subsidiary with Polish heavyweight Grupa Azoty.

- Extensive RE market knowledge, being selected by the MSP and being part of multiple RE groups / connections including US DoD.

Firing the CEO would be total suicide, 90% of the problems here are out of his control, the MDA has been delayed for nearly 2 years by a government which has yet to do anything in its mining sector, not just MKA related.

Just because the SP is where it is, doesn't mean the company isn't incredibly strong. Tons of progress has been made here, the value will out in the next 6-12 months.

Nothing is ‘priced in’ because if Sky backed out this would go to zero, so at least you can still sell which obv isn’t great price but the Dutch fund put in a good amount at 0.6p (5%) think it was like £300K so although it may feel like selling here is pointless they’d still rather have £100K in the bank (66% loss) than nothing

The main points to note is this is a loss making company, like many on AIM/LSE at this end, the market cap is what it is because of this and loss making companies eventually go insolvent if they cannot find funding.

GILD IMO currently has a hole of about £2-3m per annum (last year losses were over £4m but I suspect they’ve cut more costs) Bitstamp is gone and has not yet been replaced, sponsors can eat into this hole and they’ve raised £750K but they still need probably another £1.5-£2m to be safe for the 24/25 FY. Whether that comes from a high margin sponsor or an equity raise… or some form of JV who knows but without that occurring then the outcome is likely zero so it’s probably one of the funds dropping X amount because as above they would rather have £100K in the bank than zero.

GILD need to sign some big deals and provide a solid update on progress, until then the sentiment here will be that insolvency is the most likely outcome, which is a massive shame as I am a fan of GILD and it’s a super tough market for marketing, let’s hope the WC helps them out big time to get some major deals. They’ve had an advanced pipeline for about 2 years.

Hopefully they will get it signed before Malawi 2063 concludes

What was the last investment they got? Rio took a 15% stake in Sovereign but they haven't put any money into Malawi as of yet as far as I am aware?

Timing and price suggests it was a buy not a sell?

Where is the stock over 6.8p to pay for £23K? (350K)

So someone sells 100K at 6.5p and on barely any volume an hour later someone gets 350K out at a much higher price?

Does make me laugh when he says the technologies are currently worth hundreds of millions of dollars, and in a few years should be worth many billions of dollars

Even if JT falls short by 90% we should all do very well! Plus, who are we to argue with his forecasts... the man has tremendous credentials and unlikely anything we see over this side of the pond, has put a small fortune into the company.

Doesn't look good, they've just raised £250K but likely need £2m a year to keep going (had about £500K at Y/E IMO)

No real new major sponsors have landed in the last 12 months, the Bitstamp partnership has now completely finished and have not yet been replaced

Only being able to raise £250K and no sign of 00Nation taking a further £500K / Commercial agreement

Could all change on a partnership / sponsor , but at this market cap Becks is taking the entire company in commission (£1.75m last year)

Content fees and Marketing + Ambassador fees were £3.2m last year

The balance sheet vs market and operations are completely unsustainable, 12 months ago you had the hope that they might land more sponsors and they had 12 months to replace the Bitstamp deal, then there was promise of CS2 sponsors and ME sponsors , not to mention a great partnership with Sky.

This really is make or break, by my estimates they dont have enough cash to continue past Sep 30th 2024 so will need to raise at minimum an extra £1m (equity or partnership) before Sep 30th. They need to likely find another £2-3m in sponsors on top of what they have to make this a viable business. I wonder if at minimum they will close down operations and simply become a content creation business "Guild Studios" or will 00Nation come in and take over? Who knows but at this stage it truly is a casino esc gamble, nothing is certain do you own research and a whiff of good news this can fly but just be very careful, make sure you have fully read the balance sheet and know the story here. GLA to anyone still invested may good fortune come your way.

We've just got to manage costs long enough to get to the promised land

In 2026 'HyProMag' will be worth $100m+

Depending on what exposure we have at that point will determine our rewards

Saying that they dont go live until 10th April so... could happen then but youd think most would have forward sold / flipped already

Would have been a disaster if they gave us shares at 5p

Everyone would be flipping for 10% (so 5.5p)

Best to keep it to those who the BoD feel will absolutely not sell (only £600K) to allow the rest of us at least preserve some value to our holdings

As another poster stated, they were trading at 5.5p for a few days and nobody was interested so we had our chance

I'm speechless honestly, was throwing in the towel this am thankfully went for a long walk got back just before 9am

Many lessons learned today - am I happy we've raised at 5p (even with the CEO putting in £150K) absolutely not but do I understand the circumstances, of course. I still don't think it excuses a 5p placing but to raise £600K and put as much in as you could so the market only got say 30% of its expected allocation is a bold move and its currently paid off with the stock trading a whopping 40% above placing

Next steps and these need to come quick, because we cant be at the mercy of the market again in 9 months time

- revalue HyProMag, get a proper independent valuation and put that asset down on the books (cotec might do this)

- advance US funding (cotec)

- just DO SOMETHING with Songwe (tongue in cheek) there is ZERO value on the books for this asset, its probably better for SH and Malawi if we move this asset on to a bigger player, keep a royalty if possible

- Pulawy is promising but needs a lot of funding, its likely packaged with Songwe. The BoD know 100x more than I do so lets see what they achieve with Songwe/Pulawy

- Sell or do something with the Uranium asset

- The main prize, first commercial production in the UK and scale up worldwide, all of the above should be contributing t this goal in every possible way. Lets get multiple plants out there producing magnets and become one of the wests only recycled magnet producers.

Haven't seen anything like this since the covid days, unbelievable post placing strength

I suspect

- Jan go to market (10p) no interest

- Market now aware so short

- Push us down to 5p

- CEO puts in £150K plus other sticky holders (only £600k) total £750K to 'shaft' the city somewhat, as city and people on the side-lines hoping for a £2m raise at 5p

- Those rejected start buying last week ahead of placing annoucement knowing full well 5p stock is gone and even 6p is cheap

- Announcement today catches us retail investors out, but not realising there is probably £500K on the side-lines waiting to take stock which was 10p in Jan now 6-7p, so they are mopping it up

Hindsight! CEO actually made a really bold move to only raise £750K, of which £600K from existing investors really reducing any damage and causing a rush to buy cheap stock on the open market.

Not giving a ton of credit we are still at a ridiculous SP, but have to admit did a reasonable job with a very bad hand. (and we keep all of HyProMag)

Said I wouldn't post again until the share price recovered significantly

Nearly 7p ask on a 5p placing, thats a 40% rise... so posting again :P

Have to be straight, MKA need a serious lesson on PR - there is a truly superb story here, Cotec do superb job of showcasing it and its only a 1/4 of their holding, we need to do much better PR. Behind the scenes I think WD does a trememdous job as he seems to find lots of substantial partners, but if you are then relying on retail for funds you've got to play both sides of the coin.

In defence, he has now put in £250K over the last 12-13 months, that's absolutely significant so I know he is truly aligned (even if they do have lots of options etc.) thats a major commitment.

Onwards and upwards by the look of it, seems the entire market was waiting / on hold since january to take a position. It was 10p back then so even if you waited and missed the miniscule 5p placing, you're still getting a nice discount at 7p for your patience.

Feel a bit sick this morning, didn’t expect such an awful price for such a low amount, even if it is to minimise dilution the CEO has taken £150K at 5p

I may refrain from posting on this stock again, until either I move on (sell out) or the stock recovers considerably. Good luck to all.