Member Info for M.McNulty

Thank you for sharing this, Floyd.

This is an absolutely fascinating SPAC deal - not least because the chair and CEO of the SPAC in question, Dan Mamadou, was a co-founder of Talaxis - Mkango's largest shareholder - as well as being a director of both Lancaster and Maginito...

I believe he remains on very good terms with the Mkango team.

Is a future rollup into the new >$6bn NASDAQ-listed critical materials behemoth, an exit strategy for Mkango / Maginito / HyP USA, once Mkango has become a pure-play NdFeB recycler / manufacturer?

This would be entirely unsurprising, in my view.

$2bn all-share offer by end of next year?! Stranger things have happened on the US markets...!

Agree with your views here, Gallmat. I am hugely confident that the US DoD / Pentagon does pull the trigger and grant a major sum to (or actually invest in!) HyP USA. As you say, it is such an obvious strategic move.

I'm also getting increasingly excited about humanoid robotics, and posted this yesterday on the subject:

https://x.com/MylesMcNulty/status/1925572736107045362

Convinced that a supply/offtake deal with Tesla will be signed in the next 6 months. Wouldn't that be something!

"The business combination agreement is currently being finalised." Mgmt wrote this in RNS, 20 days ago now. This is just one of numerous huge news items that could land any day now.

It feels like the share price is gearing up for the next major leg up. Certainly a larger buyer building quietly seems to think so!

We've had approximately 4 weeks of consolidation between the 16p and 20p range, following a q6-100% ump in 3-4 weeks from 10p.

I am very confident that consolidation is coming to an end, and multiple significant news items shortly to land. Possible(but obviously not certain!) items:

- Business Combination Agreement for NASDAQ SPAC listing of Songwe Hill and Pulawy, including the enterprise value attributed to the projects ( I suspect we see a valuation of around $250m (dare I say even higher?), which would equate to a net asset value per Mkango share of around 58p).

- Selection of Songwe Hill as a Strategic Project by the European Commission under the Critical Raw Materials Act.

- US Govt grant funding for Songwe Hill, and possibly Pulawy.

- US Govt grant funding for HyProMag USA.

- Supply and offtakes agreements for all three of the current HyProMaf projects in the UK, Germany and the US.

- Subsidiary level investment in HyProMag USA, at a valuation that is multiples of Mkango's current mkt cap.

- Firm development plans for HyProMag plants in a fourth nation (Japan, South Korea, Canada, India?).

These are just some possible news items that could land any day now, and shouldn't come as a surprise to the researched.

N.B. that last word. The vast majority of UK market participants have NOT research Mkango (or indeed the wider rare earths market) in depth, and so will be pleasantly shocked when these big ticket news items start to land.

USAR continues to track above its IPO price, with a mkt cap of circa $900m. It owns a drastically inferior operation to HyProMag USA alone, let alone HyProMag's global business, and Mkango's proposed mine and separation plant.

It genuinely is not mad to state that Mkango could be valued at 10x higher than it is, and still be considered cheap in the eyes of US investors.

The catalysts that will attract the US hordes will be those news items that involve anything US related: a NASDAQ listing; US Govt grant funding (for whatever operation of Mkango's that may be!); supply / offtake agreements with US household names such as Tesla; announcements to construct plants on US soil; etc etc.

Fortunately for us holders, all of those announcements and more are fast approaching.

Good luck all.

Yes, and the company is already looking to raise that sort of sum at SUBSIDIARY level (as it has publicly stated) - which obviously will be at a pre-new money valuation of several or many multiples of BSFA's current mkt cap of £4m.

Too true, don't listen to me, the the guy who built an initial TR1 position in MKA at 4.0p; best listen to the guy who bought his initial stake in MKA at 38p, and was "getting a bit jittery" when it fell to 27p...

Always amuses me, reading the words of those people who get triggered by others who back Trump / Musk. I'd put money on thickofit having voted for Starmer last year! What a silly sausage.

FeedCo.

There are several items to address from your post.

1) Why are you asking me or indeed anyone these questions, with not first having read through Mkango's RNSs? Had you read through the RNSs, you would have noted the HyProMag USA feasibility study published on 25 November 2024, in which AISC figures were provided under two different pricing scenarios. In particular, look at Table 3 in said RNS.

2) Watch all interviews of / presentations from Cotec's and Mkango's mgmt. teams. One recent video (available online, if you bother to look) from the former will reveal that HyP USA has actively been in talks with Tesla, Microsoft and other tier 1 MNCs for both supply and offtake agreements. It stands to reason therefore that the input costs (under both pricing scenarios) presented in the 25 November RNS, were guided by the ongoing talks with those MNCs.

3) If you had completed 1) and 2) above, you would NOT be concerned that "the owners of the recyclable rare earth materials are going to want their pound of flesh as are the aggregators etc." The pound of flesh for those upstream players has already been built into the AISC forecasts by HyP.

4) "The economics are going to have to be shared and maybe not so much in MKA's favour as you seem to suggest." I am not suggesting anything. I am merely pointing out on Twitter and on Substack, what the companies (Mkango and Cotec) have stated publicly in RNS and interview. I don't have my own verified numbers. The companies do though. Again, I revert you to 1) above.

Read, read, and do some more reading, so that you're at least prepared before creating a new account on this site just to try and subtly talk down a stock. That is how it appears you're acting, anyway.

This is it.

I am expecting 100p this year, and some.

Yes, they recycle Nd, Pr, Dy, Tb. And only those four elements.

In short, they recycle NdFeB magnets, and use the recycled REE powders to make new magnets.

This means they don’t need any input material from mines. Completely circular.

Nor do they waste any cost whatsoever in having to recycle any lower value, non-magnet REEs.

This is why HyProMag will very shortly become the lowest cost producer of NdFeB magnets, worldwide.

I would be surprised if we didn’t get at the very least, half that valuation.

Canada obviously much safer / more favourable than Malawi; but on the other hand, Songwe Hill is years ahead, and pretty much construction-ready.

Plus our separation plant seems to be much further advanced that their magnet manufacturing plant (esp. with the recent EU backing).

43p per share would still give the UK investment community a mega shock!

Nice find Mark, thanks for sharing.

Just imagine if Songwe Hill / Pulawy achieved an enterprise value of $400m, and it were announced in the next few weeks in the BCA with Crown Proptech…

400 x 0.78 = 312 (USD to GBP)

312 / 327 =0.954 (NAV / outstanding TVR)

A 95p per share NASDAQ-listed holding on MKA’s balance sheet, which is actually the non- core, lower value of MKA’s two businesses!

Selling today is just nuts, especially when China has said this morning that it intends to not bow to the US, but fight.

Maybe a few traders exiting at what they think is the top / a period of consolidation.

I think this goes parabolic in the coming weeks.

If you could please provide some context - a link, interesting parts in said video and when exactly they are, etc. - that would be helpful.

Currently your post just comes across nonsensical and a tad rude.

HyProMag USA is now considering building out three production plants (currently the plan is one manufacturing plant and two pre-processing plants). Presumably they will be standalone plants - each with waste collection and pre-processing facilities, HPMS vessels (three at each plant?), and magnet manufacturing equipment.

If it does opt to follow new, expanded plan over the original hub and spoke model (I imagine we'll get two separate DFSs in June / July), it could be looking at NdFeB magnet (and associated products) annual output of 1,557 x3 = 4,671.

Now, consider that NdFeB products contain circa 30% neodymium.

So, HyP USA's output at nameplate capacity will be an effective NdPr output of 1,400 tpa.

Last year, MP Materials' Mountain Pass mine in California - the large REE mine outside of China - produced just short of 1,300 tonnes of NdPr oxide.

And of course, HyP does not have to contend with "the Balance Problem", which all miners such as MP face (which is the necessity to mine and process huge quantities of very low value REEs, in order to access the Magnet REEs (NdPr DyTb)).

Not having to deal with the Balance Problem results in HyP having a margin that will be multiples lower than MP's, when it comes to magnet making.

Moroever, HyP's "mine" will - unlike Mountain Pass - essentially hold an 'infinite' resource.

When serious US investors begin to hear of the HyP companies, Mkango and CoTec are going to really take off.

**Based on that timeline AND the fact that Mkango wants to complete the deal and listing before end 2025 (as is evidenced by the specific hurdle of the recently issued management options)…

August last year. As it was a private company, it missed out the non-binding MoU and went straight to the binding BCA.

Based on that timeline, one would expect the binding BCA for MKA / Crown to be announced in the near future. And the BCA will include the proposed valuation.

Context:

USARE and the NASDAQ SPAC company Inflection Point Acquisition Corp II announced that it had entered into a Business Combination Agreement on 22 August 2024. The BCA included the enterprise value of $870m for USARE, as well as details of the initial PIPE investment of $35m.

The deal closed on 13 March 2025, and listing occurred on 14 March.

The BCA between Mkango and Crown PropTech Acquisitions will include an enterprise value for Lancaster Explorations (Songwe / Pulawy); and my guess is that it'll also include something on PIPE funding. We should expect (or at least, I personally expect) that detail this month, possibly next month.

Re: trading today - there's not much on offer at 14p.

I think we're going to rally shortly, as the market wakes up to how significant this news is for ex-China rare earths players - and above all, those that are US-based such as HyP USA.

If Chains weaponises its dominance over REEs and NdFeB magnets... The move here could be truly speacial.

Think the sharp drop is just a reaction to the new Berenberg price target of 11p (up from 7p). Small flush courtesy of Berenberg's loyal followers to near the target... Now rallying again.

I added!

It's actually just been confirmed that all China imports will be subject to 54% tariff...!

34% on top of existing 20%.

This is astonishingly good news for HyP USA. American demand for HyP's magnets will be off the scale - as will HYP's operating margins.

But the overall escalation is phenomenally good for the ex-US HyP companies too - and for the soon-to-be NASDAQ-listed upstream assets, Songwe Hill and Pulawy.

REEs (esp. NdFeB magnets) will be the life blood of the future global economy. But - as of an hour ago - DEglobalization has just accelerated. Nations and regions will want secure - and ideally, domestic - sources of NdFeB magnets. Don't have a decent, high grade REE deposit? (i.e. the position of most nations on earth) Then build a HyP plant.

I think today's news is going to supercharge the share price rerating here. Good times ahead (for Mkango shareholders, at least!).

Morning esduk - it certainly looks like an institutional buyer to me.

That is something that I think will accelerate, once the SPAC deal has become binding at Mkango is transformed into a green tech / infrastructure play (with a passive, although MASSIVE(!), equity holding in a NASDAQ listed rare earths miner and processor, on its balance sheet).

Fund managers will want to own Mkango, once the business split becomes a formality.

I think the NAV/share for the NASDAQ listing of Songwe Hill / Pulawy could be around that mark (50p / $200m), which would still leave the core and much more valuable business - the HyProMag companies - in for free, at 50p.

So despite 50p being a 10x return from my re-entry level in the 5p placing last summer, I would likely turn down that offer, if it were made today.

I am thinking a target price of several pounds over the next 2-3 years.

USAR -despite its SP drop over the past week, is still valued at $650m. How to value MKA's 80% share of Maginito, which is in the process of becoming a true multi-national company with significant operations likely to be running in 5 countries in 3 years' time, with an EBITDA margin some 80% lower than USAR's?

I retain the view that HyProMag will eventually become the most valuable REE business (including both MP and LYC) in the world. Throw in Songwe Hill and Pulawy to the equation, and MKA's mkt cap of £47m at 14.25p is just insane.

At some point, international investment communities are going to notice - and then the parabolic run commences.