Member Info for M.McNulty

If there were even the slightest cause for concern about MKA and CTH being UK- / Canadian- and Canadian-listed respectively (and not US-listed), then JT would not have been invited to, and present at, the White House meeting a couple of weeks ago, that was essentially a summit for the key players in the US rare earths supply chain. [N.B. he was indeed present.]

Https://x.com/MylesMcNulty/status/1953548496868425943

Hope it's of some use!

Mkango is so absurdly undervalued at the moment. I think a HyProMag listing (likely, just HyP USA, but hopefully all of the group companies, consolidated!) will come sooner than JT implied last week (mid-next year, IIRC).

USAR presently has a significant stock offering ongoing. Once completed, it will increase the company's outstanding shares from the current 96.3m to 137.5m.

At its current stock price of $15, that would put the company at a mkt cap of almost $2.1bn.

The combined mkt caps of MKA and CTH is, as of right now, $220m.

If - as many of us suspect - the US DoD invests in HyProMag USA and/or announces a guaranteed floor price for its products, then the US investment community is going to go crazy for MKA / CTH, regardless of them not yet being listed on a US exchange.

All the signs (and public comps valuations!) are there. MKA is going to double, treble and very likely do a whole lot more, in the coming months.

Well said, esdk. This is exactly correct.

When I said that I was 100% confident in JT having attended the meeting, I meant that literally...!

38.25p is the intra-day all-time high, set back in November 2021 (and now just fleetingly matched)...

Break this and we are in proper blue sky territory.

I will say with 100% confidence that HyProMag USA representatives were present at the White House for this meeting last week.

This Reuters article is phenomenally positive.

Really shines a light on what JT was saying yesterday in the presentation about being in discussions with "Apple's competitors".

40p+ tomorrow, and then a straightforward march to >100p!

Oh wow, I was being particularly stupid there...!

5.9m shares, not 4.9m shares!

Even better, I guess...!

Hi SpotTheNutters, indeed, the global scalability of the HyProMag group companies is just ridiculous - and the patented HPMS tech is at the cornerstone of the investment proposition.

To note - the US and Germany plants (former now operating, latter under construction) are presently only designed to be 50% of the size of the US hubs, although it's easy to see how they too could be scaled up to near 1,600 tpa (or else modular plants are added elsewhere in the UK and Germany).

But agreed that the US hub will be the blue print for Japan, South Korea, Canada... And any other nations they aim for (hopefully India, possibly Latin America... And then there's Africa further down the line!!).

Also note that when in actual production, each one of those modular HPMS hubs will have NPVs materially higher than $600m (the most advanced US hub - in Texas - is still 18-21 months away from production, yet JT is suggesting that its NPV is now around the $650m mark).

So yes... with careful planning and judicious fundraising, I believe MKA could do many, many multiples from 33p.

Not to mention the dozens of 100k to 300k blocks over the past few weeks.

Why some retail shareholders are still selling at this level is beyond me! We sit at a mere £110m mkt cap, despite the market having just been told that HyProMag USA alone (in which MKA has a non-dilutable 40% stake) is now aiming to build out plants that will have a combined NPV of >$6 billion.

That's one country. Mkango is already rolling out, or looking to roll out, plants in at least FIVE other nations. And in those countries, MKA will have equity stakes of up to 80%.

Morning esduk, excellent point, many thanks.

If Julian can secure $30m in US govt grants, I suspect that CoTec will go it alone with stumping up the remaining US$10m or so. Getting that first hub into construction would drive a much greater valuation for HyP USA as a whole, which would facilitate larger fundraising exercises in the future for the subsequent nine hubs.

It's so glaringly obvious that the HyP group companies are going to become a major global player on the rare earths scene over the next decade. At some point in the not too distant future, it's going to click with the wider (notably, international) investment community.

And once through 38p, it's blue skies and then we'll be in proper price discovery mode.

I've also just re-watched the CoTec presentation. Superb stuff. Julian suggests that due to being 9 months closer to production since the publication of the DFS last year, the NPV for the first HyP USA hub will today be around $650m. Next hub likely to be announced later this year, and third one early next year (presumably, they'll be simple conversions / upgrades of the initially planned "spokes" in the original DFS). And then up to a further 7 more in the longer term!

Mkango has an effective 40% non-dilutable free carry on this business.

It's also worth noting that these NPVs being quoted by HyP USA do not include the $30/kg proposed tax credit for US-made magnets (that wholly use US-produced raw materials). This bill is presently winding its way through the US legislative system. If passed, this would act as a substantial boost to the NPVs of HyP USA's hubs.

The HyP USA DFS and detailed engineering phase (currently ongoing) will also provide a blueprint for MKA's 80%-owned Maginito to roll out HPMS plants across the world. Japan has a larger permanent magnet market than the US at present; as does the EU bloc.

The MKA and CoTec teams are thinking big. They have to be, to be ready for the impending global rollout of humanoid robots, which will require an increase to the current supply-side of permanent magnets of many tens of times.

Nice one esduk. Definitely the best course of action!

What a presentation that was. Julian is now openly implying the long term value for HyProMag USA could be >$6bn.

Also, the ban on metallic waste exports would be hugely positive for the company.

Surprised MKA's SP hasn't begun to move off the back of all that! That said, it does usually take a while for such presentations to go around and sink in with the wider investment community.

What epic times for MKA. The next few months should be fun!

...Because of people's insistence at responding to the resident troll. People will read less and post less here, and the board will become completely useless and irrelevant, soon enough.

Please everyone, just green box the troll. It feeds off responses. It ignores rational arguments. You cannot win against it.

......

Anyway, a better afternoon here and hopefully the next leg up is incoming for MKA's share price.

Only 4 months or so until the NASDAQ listing, at circa 90p per share equivalent. Given the mkt caps and performances of the US-listed peers this year, I suspect that the IPO will actually perform very strongly. +50% in the first week?

Meanwhile, I'd now really like to hear of HyP rollouts into additional territories. I think Japan and/or South Korea are the most likely next jurisdictions. India hasn't yet been mentioned by the company (publicly, at least!), but I'm quietly confident we hear of a tie up of some description with India, soon enough.

The biggie for HyProMag (bar a NASDAQ listing, of course) will be a tie up of some description with the US DoD. The dream scenario would be funding to accelerate the rollout of THREE recycling / manufacturing hubs in the US, immediately and simultaneously (which is presently only a much longer term aim of HyP USA).

So many pipelines from which substantially positive news could land any day. It's dangerous to try to trade this!

Good luck all fellow bulls.

A friendly reminder that MKA is listing its upstream assets on NASDAQ for circa 90p equivalent per MKA share, in the next 4-5 months.

For the (more valuable!) other half of its business, HyProMag, Mkango is rolling out its magnet recycling and manufacturing plants in at least six nations over the next 2-5 years.

There are infinite reasons why a holder might sell. Generally speaking, there is only one reason why someone buys. Just like those selling at 14.5-16p earlier this month have been doing this week, I am absolutely convinced that those selling this morning will be chugging down huge portions of regretti spaghetti over the next few weeks.

At the current price, Mkango is trading at just 1.2% of the value of MP Materials ($149m versus $12.2bn). Granted, it doesn't have the largest NdPr mine (and the only one actually producing) in North America. But it does have plans to build up to almost 5,000 tpa of NdFeB production, versus the 10,000 tpa targeted by MP. It also operates at about 25% of the cost (yes, that's correct, MP's magnet making operations will run at a cost at least 4 TIMES higher than HyProMag USA's). And its raw material input for its magnet making operations are essentially infinite, in contrast to MP's Mountain Pass mine.

Moreover, Mkango is expanding magnet recycling / operations into at least five other countries, besides the US. When Japan, the EU, the UK, all start coming out publicly in support of HyProMag, and possibly put in place financial support mechanisms for HyP and other REE companies like the US has just done with MP (and my gut feeling is they all will, in the coming months) - then where does MKA's mkt cap go?

As I have said repeatedly on X, I think MKA is on track to become one of the most important REE companies in the world. Massive leaps in improvements of AI and physical robotics, will completely transform recycling in general, in the coming decades. That will consequently unlock colossal feedstock supplies for HyProMag operations across the globe.

Huge, huge moves coming here (in my very humble opinion!).

Well dafad, we can only go on what's in front of us, what can be achieved if the company makes the right strategic decisions.

1) MKA's $400m share of MKAR at its listing price will equate to circa 90p per MKA share.

2) MKA's 40% share of HyProMag USA - using the only direct public comp available - NASDAQ-listed USAR, which is valued at $1.5bn - should be valued at $600m, as of today. I am being conservative. I think HyProMag USA should be valued at well over double USAR, as I have explained here and on X in recent months. $600m equates to circa 133p per MKA share. The HyP USA JV owners need simply to announce their intention list the business on NASDAQ, ASAP.

So MKAR and HyP USA alone already bring MKA's fair value (within 6 months) to ~233p.

That leaves MKA's 80% share in HyProMag (ex-USA). How to value that, which is operating or building plants in two countries (UK and Germany), with a further three under consideration? $2bn? $3bn?

The embarrassingly short-sighted AIM investment community has normalized horrendous undervaluation in this stock. But that does not mean it will always be this way.

Cyberbub, yes there are more 7p warrants to exercise, but they don't expire until September 2027.

I am one of the larger warrant holders. I am not tempted to exercise them for any financial gain at the moment, as I won't be content to make 3-5x my money on them - but rather 30-50x. In the meantime, I have an equally large equity position that acts as "live" exposure to the appreciating SP.

That said, I do feel duty bound to exercise at least some of my warrants in the near term, as I explained on here in recent weeks (see somewhere in my post history) - to bolster the company's balance sheet so that no equity raise is required at this comparatively tiny mkt cap, and it can be staved off until say Q4, when it can be done exclusively with institutions at a SP 2-3x higher than where it is now.

The company has an obligation to RNS any change in the total voting rights, even if it's a single warrant for 7 pence, adding 1 share to the TVR.

Hope that helps!

[To confirm - I think today's warrant exercises is super news. Cash is king until HyP UK and HyP Germany become FCF+ next year.]

USAR is absolutely not involved in any way whatsoever with the MP / Apple transaction... Yet it's just added almost $300m to its mkt cap in the first hour of trading.

It is the immense implications for the ex-China REE industry as a whole. Developments at MP the past week will prove transformational for everyone.

Recall this interview from CoTec CEO late last year. Watch from 46.10.

HyProMag in talks with Apple already.

https://6ix.com/event/deep-dive-on-future-facing-tech

Or maybe someone has gotten wind of MP's plans to build a HyProMag plant next to its mine in California!

I jest, of course. But only partially. Stranger things have happened...!

Regardless, the major developments of the past week for MP are hugely positive for HyProMag USA (and in fact for all ex-China REE companies, up and down the supply chain).

Oh wow... MP (with Apple's $500m investment) could be set to build out an NdFeB recycling facility at tis Mountain Pass mine.

Dare we believe....?

https://x.com/MylesMcNulty/status/1945068324531896434