Member Info for GLR1990

Agree crumbs

They've got SH to look after as well, although their SP has performed much better than ours over the last 12 months (2/4 of their investments have already multibagged, one by 25 fold)

I am sure they will do the same with ours

Shocked to see #MKA back under 10p, really should be at least double

Another fantastic opportunity for those who are not currently invested, or those who are and have spare cash

The US project is storming ahead, with three reactors already purchased by Cotec

As for the UK project, in ~6 months we could be looking at scaling to 100t/pa and in 12 months potentially on the road to 1000/tpa (with multiple offtakes)

For those who like a spike in share price, what would happen to the valuation here if we signed an offtake with say Apple for example?

https://www.apple.com/uk/newsroom/2023/04/apple-will-use-100-percent-recycled-cobalt-in-batteries-by-2025/#:~:text=By%202025%2C%20all%20Apple%2Ddesigned%20batteries%20will%20be%20made%20with,percent%20recycled%20rare%20earth%20elements.

Well we end the year at £26m CAP

-18% return on investment

Still no MDA and another missed deadline / promise by Malawi Ministers, but we all have come to expect that now hence no real drop in share price or rise in anticipation (now 18 months on from DFS)

With the negatives out the way, positive developments have been made!

- Bought 100% of HyProMag

- Set up a new US sub with COTEC

- Selected as part of the MSP

- Selected for a new wind turbine project

- COMMISIONED UK FIRST RE RECYCLING PLANT (first production)

- Completed funding for German Pilot Plant

- EU made legislative changes in regards to recycling and processing (no action yet but all on paper)

So 2024 is set up to be a really good year

- first revenues

- start of German pilot plant

- scale up or production to 100t/pa from UK plant

- hopefully an MDA but not counting on it (yes would not be shocked if it doesn't get signed in 2024)

- Roll out of tech in USA / funding for pilot plant x3

- hopefully some movement on the Pulawy plant

- Magnet production and offtake agreements

All of which could again, easily eclipse our current cap - a strong 2024 awaits!

Done deal this week perhaps?

Agree Bonker good to see you here

I bought this last year at 10p and sold for 20p soon after, before it hit 40p (gutted)

Back then I was super impressed with the rental business growth and high margins, I thought if they can focus on increasing the revenues in that sector, then gross margin will follow suit and it was a real diamond in the balance sheet

They've improved their GM slightly over the last 12 months, and one could argue for retail this has been the most difficult 12 months arguably since 2016 or even the GFC. GM for me is the number one figure to look for in the results.

So today I am very impressed, also shocked to see gross debt down by about half a million, that's truly incredible to be able to pay debt off in this high interest, low spending and just awfully turbulent environment.

15p is ~£16m cap, which is absurdly cheap when you compare it to peers and other companies in the same sector/market.

This really should be trading north of £40m and I suspect it will as the environment gets healthier, and they continue to increase margins and revenues.

I cant believe they said 1000t/pa

Will slowly rise to 30p+ now over the coming 6-12 months

Technology proven, commercial scale production incoming mid 2024

20tpa ~ $1.4m USD

100t/pa - $7m USD

1000/tpa - $70m USD

(no including tax breaks, or premiums for recycled magnets)

(using current Yuan pricing https://tradingeconomics.com/commodity/neodymium)

EU CRMA to pass this week: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_5733

Highlights

- 15-25% of all domestic production of RE's must come from Recycling

- All electronics must be labelled within 2 years to clearly show what critical minerals they include (feedstock)

Valued at £17.5m post Cotec investment (20%)

Post Period Highlights

- Added value of 3x US plants funded by Cotec holdings corp or external financiers ($30-50m USD)

- 1x fully funded pilot plant in Germany (ownership increased to 65%)

- Full Acquisition of HyProMag UK

- Wind Turbine Project (£1.4m)

- MSP selected Partner

- UK first NDFeB magnet production in 20 years commissioned

- Initial 20t/pa revenues to commence immediately

- OEM interest (Tesla? Apple?)

So its safe to say its worth more than the £17.5m valuation Cotec put on it last year, they recently 25 bagged one of their other 4 investments https://www.cotec.ca/_resources/presentations/corporate-presentation.pdf?v=0.909?v=0.294?v=0.923

Songwe MDA supposed to land this month, we will see (I cant be bothered worrying about that tbh, it will come when it does)

Mkango Current cap of £29m - upside is really astronomical vs the starting price. Id say theres a lot of hurdles to pass but weve already jumped them now, just sit back relax and let the investment community take notice as we start increasing revenues, sign major partnerships and scale globally. Simple.

So much to look forward to, however ofc the government and ministry comments about signing our MDA in the next 6 weeks has given us a nice boost

What value does the MDA bring?

- unlocks financing

- gives value to the project as it then becomes construction ready (can be sold also)

NPV before the price crash was $559m, even if we halve that and give 10% to MKA that's the current market cap (11p per share give or take) so then the recycling tech and Pulawy + other assets + cash behind the sofa becomes free

Huge value increase for Maginito potentially around the corner

MKA owns 80% of Hypromag, via cotects investment for 20.6% would imply group value of £17.7

That was before

- selected by MSP

- US JV DFS

- £1.4m wind turbine project

- German Plant Funding

Upcoming major milestone

- Commissioning of the plant and scale up

- 100t/pa of NdFeB magnets currently valued at around £7m PA give or take (hard to value as priced in Yuan and dominated by China so volatile)

Should commissioning take place and production start in the next few weeks, id expected our investment in HyProMag to at least double from the face value it was given by the Cotec investment - so should be looking at ~£26-£30m+ of value to MKA there maybe a lot more (Cotec will let us know I am sure)

So MDA lands and recycling plant gets commissioned, id expect our market cap to comfortable sit above £55-60m and then increase as financing for both the tech, the mine and revenues come in. Current market cap £28m, would be happy with around 22-24p per share by Y/E - then with scale and revenues, mine financing double/treble that in early 2024. Very possible and I've probably undercut us there as I like to remain very balanced.

Well, all the ducks are finally lined up for a big finish to the year. If we dont re-rate in the next 3 months, we probably never will.

Mining License Songwe Hill

https://www.businessmalawi.com/mining-minister-engages-miner-on-prospects-the-times-group/

CRMA act almost passed (huge for recycling, and I mean HUGE)

https://www.consilium.europa.eu/en/press/press-releases/2023/11/13/council-and-parliament-strike-provisional-deal-to-reinforce-the-supply-of-critical-raw-materials/

SUSMAGPRO project completes this month

https://cordis.europa.eu/article/id/442156-gearing-up-for-high-performance-magnet-recycling-in-europe

update: raw material week starts tomorrow

https://single-market-economy.ec.europa.eu/events/raw-materials-week-2023-2023-11-13_en

16 November 2023

Sustainable raw materials value chains in the EU CRM Act

Analysis In Support of Strategic Value Chains - Co-organised with DG JRC

Developing permanent magnets value chain - Co-organised with SUSMAGPRO project, ERMA and REIA

Cotec rolling out three plants in the US in 2024

https://www.cotec.ca/investors/presentation/

All yours for £22m CAP!

Its probably Sky

- Rebrand to Sky Guild + Naming Rights via Commercial Agreement

- Add Sky Bet to the CS2 squad (extremely valuable in itself)

- Sky Glass already onboarded

- Sky HQ already onboarded and primary sponsorship

- Takeover Bitstamp current £1.5m PA deal

- 25% stake official Sky E-sports organisation to go with their market leading e-sports betting via Sky Bet (where CS2 is the main plaform for e-sports betting)

I could be wrong it could be someone else but Sky makes a whole lot of sense

What Id like to see is whoever takes this 25% stake, they need to protect the future of their investment so it would be foolish to take 25% but also not back that with a long term commercial deal, win win scenario then, else why would you take 25% and a commercial agreement, you would simply just sign a sponsor agreement.. shows whoever it is wants to protect both the platform for their advertising, and their investment. Very solid!

I have to second that, as much as I am frustrated with the MDA / Songwe at 8p we are currently undervalued simply on the HyProMag venture so, the as I said before the investment case is still strong

I think MGMT are putting the asset up for sale, hence why there is no rush or sacrifice to hurry up and get to 'production', and personally I think that is that is the best route as I don't believe constructing in Malawi would be a smooth process, both political and financial (inflation and debt issues)

Lets hope we do, but that article suggests both sides are WAY off

They also said the MDA would be concluded by June 2022, Dec 2022, January 2023, MKA said in Feb 23 'in the coming weeks' IMHO nobody knows when this is going to be signed within the state, company or else.

That's the end of the MDA for me

Scratching it from the investment case

As long as the value and potential of the recycling technology continues to outweighs the current market cap, which it does, then this remains as it always has, a viable and solid investment.

As for the MDA if it is agreed on any form of favourable terms then I will be pleasantly surprised but moving forward I am now completely discounting it, and according to the share price at 8p, the market has already discounted it so no harm done to the current valuation, just a shame for future value creation.

At least we are not adhering to these terms, many a company would have met in the middle or given up too much like Lotus, 5% gate 10-15% interest and 30% tax.

Maybe the Govt would be better just making an offer for the entire project?

Pretty good RNS

200m shares at 0.5p per share, a slight premium albeit a discount to the previous raise of 0.6p from the Dutch fund who took 5%

Dilution is largely irrelevant at this market cap, with 600m shares in issue the enlarged capital only increases by 33% to 800m or thereabouts, so the market cap isn't impacted too much (which it would be if they raised £3-6m for example)

Only half of the raise allocated for now until a 'commercial agreement' is reached, so that should add some substantial value to the market cap, one could argue equal or greater value than the dilution incurred.

People forget this is a microcap, at this end of the market you are not going to get solid gold balance sheets and its rare you even get great management teams. I think they've done a pretty good job to date but it really is time now to start delivering that value. They've teed a few decent things up like the CS2 men's team which could attract a top sponsor, they've done some good deals with Sky, lets see if they can really push the company forward now leasing up to the major world cup next year etc.

Conference should be interesting

Shame they don't have a recycling panel, or a presentation from MKA but suspect we will be able to present on a smaller scale during meet-ups etc.

Some big hitters there (Lynas, GM, DoE)

https://metalevents.com/events/19th-international-rare-earths-conference

Familiar names also, Rainbow, LCM et al.

Probably the reason for the new presentation out today, I am sure it will be showcased over there

I think this is great exposure for our tech, it is truly at the breakthrough stage so where other companies presenting will be the 'same old same old' we do truly have a new ground breaking technology, with near term production to show off. Not to mention we have already established a US subsidiary and have proven tech in the UK to rollout in other territories pretty much 'ready to go'

Silver did you read the press release from malawi?

They dont trust us, they think we are middlemen and trying to offload it once mda signed

We are asking for 10 years exemption from corporation tax

Alex lemon said in the most recent call, this is the biggest investment into Malawi in over a decade

Maybe it will involve infrastructure too, US seem to be heavily involved now in Malawi.

As much as we would like this to conclude, it is a vital project for Malawi and the new government are playing hard ball because they cannot afford to get this wrong

Malawi is in trouble, their debt has risen to $1bn USD, they are frequently now bailed out by the IMF, in the last 3 years inflation has crushed their economy, rising and currently at 28%+, also they have no FX reserves, no access to fuel / constant shortages.

When you take into account all of the above, and the fact we are clearly playing hardball (and do we know if we are not middlemen, we dont know if we are planning on flogging the 'package') then you can see why this could take up to 2 years perhaps.

I hope it is concluded soon and a deal that benefits both Mkango and Malawi

Spent £1m on HyProMag in August (completion)

£350K was it for the wind turbine project?

2.5m euro of that cash position will be the loan to HyProMag Germany actually

So maybe £750K or thereabouts left?

Should find out end of this month

Think we had £4.5m at the end of June 2023

£1m has gone to HyProMag + £1m stock (1 year lockup)

May be other outstanding funding requirements, the windturbine project, that cost us a few hundred K?

Id love to see £2m in the bank perhaps more

Amazes me this seller, it has to be a Tr1 (some one with at least 5% I would say)

When there are say ~80K in buys, but could be over multiple trades, boom an 80K block sell goes out. Same 100K in small buys 20K 10K 5K 5K etc. etc. get to 100K in total buys, boom another 100K block sell goes out. Been like this for most part of the year. Soon as they are out we can lift off here as the news has been tremendously positive since the placing which was at 12.5p!

Sorry - read your second post again

'The JV is stated as 50:50 not 40:60, and whilst I see that it can be construed as 40:60 due to the 80:20 of the UK company'

Yes you are spot on, if/when we commence production, who knows who will end up with what. This is one of my concerns as I hope we manage to keep a large percentage of the US operation (I cannot see us obtaining more unless we structure a deal with Cotec to give them a larger percentage of the UK and EU) but the risk is should we need further funding due to the delays with the MDA (and any other costs before we become profitable, we may end up giving away more of the 'technology asset' - I hope not and costs do appear to be minimal at the moment.