RE: REE11 Nov 2025 16:00
Re-post from X
Myles:-
Mkango #MKA has clearly missed the memo that the bottom of the savage pullback in the rare earths trade has been and gone. Leading name in the subsector, MP Materials $MP, rebounded c.30% from its lows over the past two sessions.
The truce between the US and China and the temporary delay of certain export bans by China over various REEs and REE-related products such as magnets, hardly spells the end of the rare earths trade.
The damage has been done, the eyes of the US and other Western nations and blocs have been opened to the dangers of relying solely on China for rare earths and permanent magnets.
The rare earths-equivalent of Operation Warp Speed is now underway in the US, to free the nation from China's shackles.
Specifically with regards to Mkango's current valuation: a reminder that it is listing its upstream assets in the next 2-3 months on NASDAQ via a SPAC merger deal, at a valuation of circa $500m to $600m.
This new company will be named Mkango Rare Earths $MKAR, and MKA's 40 million shares in MKAR at the IPO price of $10 will be valued at $400m.
At its current price of 47p, MKA's mkt cap is ÂŁ163.2m ($213.8m). Assuming that the proposed listing of MKAR is a success (and the backdrop has improved dramatically since the deal and the valuation were announced earlier this year), the newly listed NASADAQ company would have to drop by 47%, just for MKA's shareholding in MKAR to be valued at MKA's current mkt cap. Even then, MKA's 80% controlling holding in HyProMag would still be valued at zero.
Or the other way: Mkango's share price could double from here, and - assuming a successful listing of MKAR and zero share price movement, up or down - Mkango's stake in HyProMag would still be valued at zero.
To be fair, I have been disappointed that HyProMag's expansion hasn't been more aggressive in recent months, given its highly enviable positioning in the prevailing geopolitical landscape.
That said, I am quite sure that multiple and very significant negotiations are going on between Mkango, CoTec and HyProMag on the one side, and some of the world's most powerful governments, blocs and companies on the other.
A NASDAQ listing of HyProMag, and concrete expansion plans into Japan and the other G7 nations that it is not already operating in.
I remain confident that we see new all-time highs here in the near future.
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