Member Info for Jdbanzi

If pensana couldn’t get the numbers to work with a 250 million pound grant why would they want to then move the business and start all over again with a load of unknowns.

The DBT has been promising a new new critical mineral strategy/paper for the last year after they understood their last paper quickly expired with the environment but with nothing released as of yet.

Still at least we’re no pedant on any of these factors and the numbers stack up no matter what the market looks like.

Aftermarket trades total £175k I think there might be an RNS tomorrow @0700

£6

Repost;-

Was planning to stay offline to make the most of our last few days in Puglia, but this surge in interest in the ex-China rare earths space today really is phenomenal.

The implications for core holding Mkango Resources #MKA are wonderful.

There are now 11 pure-play rare earths businesses listed on ex-China public exchanges that are valued at in excess of $500m. All but the top two in the list below are pre-revenue companies (at least, in any material sense).

MP Materials $MP - $17.0bn

Lynas Rare Earths $LYC - $13.3bn

USA Rare Earth $USAR - $4.6bn

Critical Metals Corp $CRML - $2.3bn

Dateline Resources $DTR - $1.2bn

Rare Element Resources $REEMF - $771m

Idaho Strategic Resources $IDR - $724m

Pensana Rare Earths #PRE - $674m

Arafura Rare Earths $ARU - $663m

Ucore Rare Metals $UCU - $591m

Aclara Resources $ARA - $534m

Even despite its 13x share price uplift over the past 12 months, Mkango #MKA, closing at 65p today, has a mkt cap of $299m.

Of the 9 pre-producers in the list above, only PRE and ARU are (arguably) further ahead in the race to bring their respective mines online.

Mkango's Songwe Hill is backed by the US government ($4.6m grant, a further $100m loan for mine build under consideration). It is also backed by the EU - it's been designated a "Strategic Project by the European Commission under the Critical Raw Materials Act." In reality, this means that it's reasonably likely to expect Songwe Hill to receive similar financial support to that which the US Gvt is considering.

Mkango's proposed rare earths separation plant, Pulawy (to be built in Poland), has also been designated a Strategic Project by the EC.

Personally, I think the FEED will demonstrate an average annual EBITDA of the combined projects of somewhere around the $200m-$300m mark - and Songwe Hill's initial mine life is two decades. But let's see.

Anyhow - given the backing of the EU and US, and its advanced stage of development, I think it's fair - given the peer group valuations above - for those two assets to be valued at >$700m, as of today.

Fortunately for us Mkango investors, Songwe Hill and Pulawy are being spun out onto NASDAQ in the next 2-4 moths via a SPAC listing - the company is to be called Mkango Rare Earths $MKAR).

The proposed value of MKA's holding is $400m (being 40m shares at the listing price of $10). The likely mkt cap will be around $500m at listing price, with MKA retaining a circa 80% shareholding in MKAR.

......

So - the upside for MKA from its current mkt cap is blindingly obvious, given that it is ex-UK investment communities driving lofty valuations in the REE space this year, and that MKA is resultantly listing its assets on NASDAQ in the near term.

BUT - that's just accounting for Mkango's upstream assets. The much more valuable side of the company is its 80% equity interest in NdFeB magnet recycling and production business, HyProMag.

There is very limited rare earths IP outside of Chi

Apart from the tweet on X about the misunderstanding between china and the USA do you have a link to the press release magic-orb, I only ask as I was watching Stephen hawken in a cage fight over the weekend only to be informed this didn’t happen either.

I see there’s been a lot of discussion around the projected SP, so to help me understand what has been stated so far.

Mkango will hold the licensing for the recycle only, with 1 hub in the UK being expanded and the current plant being run with some output ( 2t? With nothing sold so far), Germany plant is being progressed/built, USA is currently building 1 plant ( in the cycle of), each plant has a projected NPV of 600m, so 1.8b in total which hopefully translates into the Mcap.

MKAR will hold both mines which mka will hold 80% of, with a projected listing of 400m, so we should be looking at 2.1b if all is plane sailing.

Future unknowns;- additional 5 recycling plants in the US and possible ventures into Japan and maybe another country or 2, so the unknowns could add a 3 or more billion.

So blue sky thinking should be £6 a share and day time dreaming far more??.

China has always used REE as an economic weapon from 2006 onwards when they first started restricting exports, this was probably viewed as a bartering chip back then, but now the world is in a very different place as the latest round of restriction will be viewed as a threat, is there any further update on the proposed Japan hub?.

Bought too much on the last 35p dip ( planning to day trade) and used what I’m willing to day trade ( for this ). Bought at 41,37 and 35 so it’s all core now and unwilling to trade it as the lure of a big rns is to much, don’t think that’ll be this month though.

The only real issue with this, is that it makes it a pig to day trade, I’ve stopped as it’s proofing really difficult to understand when the big RNS will drop.

Flat buys atm, if anything changes Nancy Pelosi will be all over this with indicative UT buys

Struggling to get a buy quote?

Esduk, is that the intension from Julys PR release and the phrase split? On the 13 paragraph.

Sticksandstocks, yes that’s my understanding ( never had a company split across different listings) we would have a MKAR share as well as a MKA share, we currently hold both mining and recycle through MKA and now with the intension of listing the mining only on the Nasdaq, but if the mining business is listed as a higher value asset than the current recycling how would the shares be split.

With regards to the voting rights I think this is where the special resolution aspect would come into play.

Yes, MKA currently own the mines and recycling process but with the Nasdaq listing the intension is to split the assets up to ensure each part is accurately valued:-

https://youtu.be/Y0SmssqtlRE?si=8CSovNSUrqMS8oQ9

This means the Nasdaq listing will hold the mines and MKA will hold the recycling process on the AIM. My understanding is that the share you hold will be split accordingly ( not sure who is responsible for this) and you’ll end up with MKA and the spac Nasdaq listed shares.

Part of this, is to ensure the correct category when listing so investors can invest easily.

Morning, has anyone dealt with this before, as I understand the intention but haven’t been parts of an asset that has been split out and share accordingly.

Is there a time frame for this?.

The price floors will help but if the recycling technique can deliver the promised $20 per Kg, price floor or not the tech can stand on its own anything after this will be a bonus, let’s hope the MKA team having been pushing along the NASDAQ listing and further plant expansion in to Japan on their travels.

HFD, I take the 20-30p is using the 500MTU and not the further speculation MTU prices?.

*meeting

I thought there was a MKA today which might explain the buys

Repost, although date on article.

https://single-market-economy.ec.europa.eu/sectors/raw-materials/areas-specific-interest/critical-raw-materials/critical-raw-materials-act_en