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Interesting post Dogberry

Whoever sold, I don't think read the RNS correctly and maybe though we had given up a stake in the entire group, it was certainly a bid smashing event that felt more like panic than logic or reason

For everyone who digested the RNS (I got it wrong at first, thought we had another £2m coming in at 27p) it is fantastic news

Highlights
£452,500 invested at 27p, yes 27p
The above investment in MKA can be converted into Maginito Shares, which would increase Cotects holding to 20.05% of Maginito
If so, Cotec will be allowed two people on the board (JT would be nice and likely himself - recently called HyProMag a potential billion dollar investment)

So in short, that would be ~£3.5m for a 20.05% stake in HyProMag with two new board members from Cotec and a reshuffle of the subsidiaries over on the recycling side to include Maginito right at the top with MKA RE UK under that
£3.5m for 20% so the recycling group alone now has a valuation of ~£17.5m

Which leaves Songwe all alone on the other side, under Lancaster Exploration, of which we own alongside Talaxis, being left at this market cap, a very undervalued £15-17m if you minus Thambani licenses et al

Cheap as chips!

Cotec and Mkango will also work on a strategic US collaboration agreement in the RE sector, interesting!

NT funding sorted, MDA next please!

Might be gone already
Todays volume is over 13m+
This will also give the nod to any interested buyers that they can start taking a position without the share price being smashed down further, as some already have (4% declared but I suspect many more will declare and position now)

News today or tomorrow, possibly another small advance or finally close out the transaction

Hi Flundra, hope you are well
if you are disappointed by that, imagine how I felt when I read an article in May 2022 saying the Minister expected three MDA's (one being MKA) by the end of June! :-)
The Minister also said that they must conclude MDA's by YE 2022 after that, with the final deadline now being the end of this month
There is an article somewhere saying once the EISHA was approved, the MDA would follow shortly after, I will try to find it and post here
Today's news for me is the biggest step forward in the last 9 months, and isn't just words but is finally some action that will lead to the MDA being granted IMHO In February, they want this in production by 2025 so they will not wait around much longer, with the London firm working on Malawi's behalf I think we can get a deal done in the coming weeks, the good news is in the background we have been having financing discussions with internationals, all while HyProMag continues to increase in value, we have the best BoD, partners and projects anyone could ask for in the sub £50m market cap space and this is a future powerhouse in the making

One this, one on hand you have large sellers, a business that is performing badly and losing £5m PA

On the other hand you have cash + stock above current market cap, and the market cap is only £3m!

You still have a business and a brand, and huge revenues which, if they do complete the 'strategic review' can hopefully be optimised to return them closer to profit, of course revenue is vanity and all that, but it still shows a strong brand

There are tons of companies in the micro cap space that have higher market caps than ITS and bigger losses, down this end of the barrel it's not uncommon so for everyone saying it's loss making, well its £3m market cap what do you expect? :-)

If it were profitable it would be £30m market cap!

So, for me, I think its worth a punt down here, what we really need is for an II or larger player to step in and take a large position post seller (hopefully out soon, 18% may seem like much when you are valued at £30m but at £3m its only ~£500K which retail fortunately can shift)

And thats the good news, at £3m market cap retail can also shift this once the sellers go, so I fully expect it to be trading over 10p once this is all said and done

disclaimer! this is not advice and these plays are always high risk as they could suspend, the strategic review may not be positive and it can all go south, but in terms of revs, cash, stock, brand at £3m I am happy to take a punt here

Agree both articles are very good, hard to tell which news comes before the other, arguably the 'three MDA will complete by Jan 31st' article is the most recent which does say the comments were made on the 12th, when the other article was written

Both read quite positive, I can understand Malawi's stance, if we are asking for changes to the law and also royalties in the region of 2%, but at the same time I can understand the companies stance as if we are asking for these terms then we must have financing in place otherwise we wouldn't have a leg to stand on so behind the scenes I would imagine we have a lot of firepower to be asking for this and that (outside of the importance of the mine and its minerals itself)

Superb post SC
That sums it up perfectly for me, we will never be able to confirm 100% the outcome of any investment but from those notes and my own understanding, they should be looking at a very attractive settlement and for shareholders, a further (large) rise in valuation, and who knows, possibly an even larger rise in valuation should both companies partner for the foreseeable

Dont know much about this company outside of todays research, added between 56-60p as I believe 1. a settlement will be reached (appears Samsung are always getting into trouble and 2. I do believe it will eclipse or near eclipse the current market cap in 'immediate value'

By immediate value I mean compensation and damages for 5+ years of using the technology, unless I have that wrong and the litigation is only for recent years? something someone here can hopefully clear up

Samsung QLED sales to date
'Samsung’s flagship Neo QLED TV sold 4.64 million units in the January-June period, a 16.3 percent jump from a year earlier. Since its debut in 2017, its accumulative sales exceeded 36.3 million units.' this doesnt account for H222

Source: https://www.koreaherald.com/view.php?ud=20220823000589

regardless if it is recent years, most of the sales have come in recent years (increasing YoY)

'Samsung sold 9.43 million QLED TVs last year alone, up from the 800,000 in 2017, 2.6 million in 2018, 5.32 million in 2019 and 7.79 million in 2020. Omdia data further said Samsung sold 42.1% of high-end TVs priced $2,500 or more last year. It accounted for 44.9% of supersize TVs with screens 80 inches or bigger. '

If we exclude 2019 and 2022, we still likely get ~20m units over the last two years

Even if we predict at the low end, a QLED TV sales for $500 (which is way off) and assume 20m units over the last 2 years, that is $10bn dollars in revenue, analysts are suggesting $500m so that suggests a 5% royalty on all sales, but even if the royalty is agreed at 2.5% thats still the entire market cap of the company + future sales + missing out on any sales from 2020 or prior

Source: https://www.techradar.com/news/samsung-tops-global-tv-market-its-for-the-16th-straight-year

Therefore, at todays market cap, a superb outcome would be a 2.5% compensation on every TV sold using the technology in the last two years, plus a 2.5% future royalty, the value of that alone would be about what the analysts are predicting, ~500m (with $250m up front)

Worst case scenario you look at 1% (and assuming the average sale price is $500 which is likely very wrong, I did say only looked today!) you still net $50m USD up front and $50m over the next couple of years, likely minimum, I dont see them settling this low and of course the average price is higher, but drawing a line in the sand as to where I think the worst case settlement is (again could be wrong!) and either way as long as there isn't a curveball here I dont see how Samsung can avoid paying between $150-$250m up front and the equivalent of that over the next couple of years in future royalties

Agree, focus is on NCYT at the minute but you can see some savvy investors positioning with the nice 50K blocks, volume should arrive near COP or tomorrow I suspect

We also have the smallest market cap of the three, sitting at a torrid £5.5m
Covid is completely priced out of our business, so any sales / contracts / orders would be a huge bonus and would certainly help us transition to a profitable company much quicker
The investment case with £4.3m in the bank vs £5.5m market cap and cash burn down much more than we all anticipated was strong before china started sending passenger planets full of covid infected patients around the world

Agree, we do still sell rapid antigen tests, and can manufacture for any partner within 3 months
Be nice if that £10m Taiwan order came through as well

Superb news

https://www.accesswire.com/732689/Cotec-Holdings-Corp-Announces-Non-Brokered-Private-Placement

CoTec Holdings Corp. (TSXV:CTH) (the "Corporation") is pleased to announce that it intends to complete a non-brokered private placement of up to 20,000,000 units (each, a "Unit") at a price of $0.50 per Unit for gross proceeds of up to $10,000,000

CoTec is an ESG-focused company investing in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities

The Corporation will use the gross proceeds of the Private Placement to fund pending investment commitments, to repay amounts owing to Kings Chapel (as defined below) and for working capital purposes.

I am unsure how long it takes for the cash to reach Cotecs bank account so there may be a delay with payment tomorrow, but its clear the money is on its way (raising $10m CAD) so no funding issues

All the best for Christmas and the new year!

Certainly looks good from here out HD2U

2023 they can get back on track from this extremely low market cap, they had a decent business pre covid that was worth more than £5m, so just a case of resetting, going back to old ways and steady consistent growth as before

HD2U agree but how is that possible?

Here is the statement in the November update
· Cash as at 30 June 2022: £2.4m (2021: £5.0m) and as at 31 October 2022 of £4.4m

Today they state £4.3m at Y/E

Did they include the £1.5m that was held up in the £4.4m at the end of October, I believe they did because that should have been released almost immediately after the RNS on the 10th? I may have missed a statement somewhere, would be good to have that confirmed because if the cash has truly only dropped by 100K by Y/E then that is truly something

Long time no post

Just thought id check in and say great update from Chris

This almost certainly feels like the bottom outside of a black swan event

Key positive is clearly on the cash burn

"We are also reassured by our cash levels of £4.4m as at 19 December 2022, in line with the cash position as at the end of October 2022 and expect to have circa £4.3m cash at the end of December"

Buying at cash give or take today, finally a pretty solid update from ABDX where the market valuation does finally seem to be discounted to the true value at the company, the last few updates have saw the SP tank but a real difference this morning

Can see some have posted today with little knowledge of the company or the current transactions being discussed

From the last update with Cotec

The parties are currently finalising documentation and, in order to accommodate delayed timelines, CoTec has agreed to advance a further £222,500 (US$250,000) to Mkango by way of a convertible advance note (the "Advance") and Mkango has agreed to extend the exclusivity period to 23rd December 2022

Cotec are finalising a 10% position in Maginito aka HyProMag which is due to be closed by 23rd December 2022, once completed MKA will receive £1.5m / $1.8m USD, which as per todays report, showing cash burn of $1m USD per three months, with existing cash would be sufficient until H2 2023 minimum

Cotec are also providing 'INTERIM FINANCING' to MKA, you can read about it at their latest press release, dated 31/10 where they state 'Mkango Resources Ltd. ("Mkango")

CoTec has entered into a non-binding term sheet for an investment in Mkango and provided interim financing to them. Mkango has two main assets - a rare earth development project in Malawi which, according to a feasibility study that Mkango published in August[1], has a post-tax NPV10% of US$559M and more interestingly to CoTec, an interest in a green process utilizing hydrogen to recycle rare earth magnets and extract the rare earth elements from them. During the quarter, a pilot plant was commissioned in the United Kingdom to scale up the technology. In connection with its investment in Mkango, CoTec and Mkango will enter into a co-operation agreement regarding future investment in rare earth processing technologies in the US. CoTec believes that the Mkango recycling technology will align well with the desire of the US to be strategically independent of China' Link below

https://finance.yahoo.com/news/cotec-holdings-corp-provides-business-214500663.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAANszg5XAenPJH7THH4YBCk7TZzuzJ4h6DVWW-GydqBbU-KKfJ6Ey7s0ZSCa70Yud3rHwytAExjLIDa214RBlPCFZG8nVx3VAkBB3W4bQWMzoB67_2SJaD1xmFqgyu9HNy_kxhfnIosNUwuHoOTmadggKSvTJXtTzNNc_L08yXaR0

If you are still worried about the cash position then sell up and move on, my concern at the moment is only the MDA and that is backed by the valuation of HyProMag

Risk if Cotec don't provide funding? I would state why are they currently financing us at 27p, they have given us £1.225m to date at 27p (CLN) yet cant finalise the one thing they wanted which is a £1.5m investment in HyProMag, you are talking about the ex CEO of Rio Tinto and Anglo Pacific

Worst case they dont fund us and we keep the 10% interest in Maginito / HyProMag, and keep the £1.225m at 27p already invested

Alternate scenario if they cant pay, they give us another £500K and extend exclusivity a bit further into 2023, but either way we get financing at previous favourable rates

Superb Update last night from Cotec, explains the volume and rise over the pond

Mkango Resources Ltd. ("Mkango")

CoTec has entered into a non-binding term sheet for an investment in Mkango and provided interim financing to them. Mkango has two main assets - a rare earth development project in Malawi which, according to a feasibility study that Mkango published in August[1], has a post-tax NPV10% of US$559M and more interestingly to CoTec, an interest in a green process utilizing hydrogen to recycle rare earth magnets and extract the rare earth elements from them. During the quarter, a pilot plant was commissioned in the United Kingdom to scale up the technology. In connection with its investment in Mkango, CoTec and Mkango will enter into a co-operation agreement regarding future investment in rare earth processing technologies in the US. CoTec believes that the Mkango recycling technology will align well with the desire of the US to be strategically independent of China.

in summary
- Cotec providing interim funding as we know, we still have £2.25m I believe to come
- Agreement to look at RE investments with Cotec in the US
- Cotec believes HyProMag will allow the US to reduce its dependence on China
(These guys are heavy hitters remember, not just some tin pot investment fund, check out who is on the board, Chairman of FXPO, ex Rio Tinto, Ex Ceo of Anglo, I mean these are some serious people in the mining space - https://cotec.ca/about-us/board-of-directors/)

I think we are looking truly great here, HyProMag gives us a real get out clause if anything goes wrong in Malawi (which I dont suspect it will but you never know how long these things take with the MDA) and with its true blue sky, strategic, scalable technology we can really sit back and relax that the value of HyProMag could very easily outweigh the entire current market cap of this company in relatively short order

certainly a lot of interest this morning
Lets see if it holds, was some really nice buys last week leading up to this flurry and a lot of good volume in the 19's now

Just taken a look
Great deal
Is current cash likely to still be around $1.4m (as they are profitable?)
So with this sale, cash maybe ~$3m USD and they have other interests on the books

Any idea what they are looking to do with the other investments since they have now sold off this one? Be interesting if they were looking to offload and then either distribute the cash as a special divi or RTO/acquire a new company, either way the value would be easily 100%+ from here (Arguably 200%+ since the recorded NAV is £6m+)

ABDX spent £9m on equipment in 2021
They have £6m in the bank
At £15m (50%+ premium to todays market cap) you are buying raw materials
Yes they are losing money but that was only due to massive DHSC expansion, cash burn will likely be very low now, they are not going to pay 80+ staff to sit there producing nothing at £500k costs per month