Member Info for Major-Tom

MKA have a very real opportunity to become a major Rare Earth miner, producer and recycler.

IMO Conservative valuations for each element should see MKA valued between 3 to 4 times current valuation today.

But, if the overall gameplan comes off MKA could realistically be 100 times todays valuation.

May sound ludicrous but what value if MKA endup with a significant share of a mining operation in Malawi, a processing operation in Poland and recycling operations in UK, Germany, USA, Canada etc. Etc.

MKA is a pretty boring investment at the moment but IMO will become a very exciting investment over the coming years.

I am happy to hold and build my position in preparation for that.

Removes short to medium term funding concerns, reminds the market that Songwe and Pullway are not yet priced into MKAs valuation and we welcome EIT to the party.

EITs investment directly into Pullway is telling. Thrh invest in "bold, forward-looking European B2B industry start-ups that build the manufacturing industry of tomorrow, and whose solutions are strategically important for European manufacturing."

Pullway is often overlooked but that's how EIT see it as a proposition. Bold, forward looking and strategically important for European manufacturing.

Whatever is in the MDA it had added significant value to Songwe. As of yet this has not been reflected in MKAs valuation. Surely the value of Songwe must be reflected in the MKA valuation at some point. This is crazy cheapest the moment.

Very Quiet here in terms of posts and trades. Surprised there isn't more interest now that Anglo have the drills turning. Hopefully interest starts to pick up over the coming weeks.

In the latest investor presentstiom they say "The recent signingof the Songwe MDA confirms the fiscal terms applicable to the project and enhances the options to create value for shareholders in the context of the ongoing strategic review and engagement with potential strategic investors, development and commercial banks, and offtakers"

I'm hoping for some further news on these items:

Strategic review? Potential asset sale JV to progress songwe and Pulway?

Strategic investor? Removing any ongoing TOPCO funding worries

Commercial banks? Funding for songwe to cover any MKA slice if Songwe Funding in JV situation?

Offtakers? Confirm terms for product valuation and provide some welcome upfront cashflow?

There Re a lot of if, buts and Maybes. Buy it seems these are the sort of conversations that are going on behind the scenes and IMO any of these will be sure to add to MKA valuation.

Any idea why it is taking so long to arrange the Q&A? I guess it is fairly straight forward to arrange an shouldn't really take this long. Is there maybe some more developments being worked in the background that they want to cover during the Q&A? Strategic review update, financing update..........

In my experience this is were things start to get interesting. Let's hope this is the start of the rerate.

Smart punter, where do you get the income at current prices as $20 /kg. As far as I can see the price of Mixed Rare Earth Carbonates has remained pretty steady and the Financial metrics of the DFS are still relevant.

Further if you consider Neodymium as an input to the process in Pulway or the final magnets produced by Magnito then a lower Neodymium price = higher profit margins for both and can actually be a positive devopmemt for Mkango.

HarChris, agree that Neodymium is the main element in the final Mixed Rare Earth Carbonate Concentrate but has there been any notable reduction in the market price of such concentrates?

From the DFS the:

"From 2022 through 2035, Adamas Intelligence envisions three distinct scenarios unfolding for REO prices: base case, upside and downside.

• Since January 2021, comparable mixed rare earth chemical concentrates sold in China were priced at a level equal to 61 % to 82 % of the value of the REOs contained in the concentrate, averaging 73 % through April 2022.

• Taking the above into account, along with Adamas Intelligence’s REO price forecasts for each year, Adamas Intelligence projects that the mixed rare earth carbonate concentrate produced by the Songwe Hill Project (55 wt% TREO) will have a value of US$23.70/kg to US$28.34/kg of concentrate in 2022 and will increase overall to US$36.51/kg to US$46.01/kg in 2035. "

I still think the values from the DFS are revenant.

I personally think the value of Songwe was wiped off the MKA valuation due to fears over thr Malawian Governments willingness to provide MDA. With this now in place the value of Songwe should now rind its way back into the overall MKA valuation..

Bonkers, you can't really use the Neodymium price. Thats not what will be produced at Songwe / Pullway. The price used for the Songwe mixed rare earth carbonate concentrate in the DFS was already heavily discounted against the Neodymium price. The value used was around $26 per Kg.

As far as I am aware there's no reason to assume that NPV valuation derived from the DFS is not still relevant.

An 80% discount to NPV is about right for a project at the stage Songwe is currently at. That IMO values Songwe at around £92m.

IMO this deris Songwe 100% and means Songwe can now be realisticly valued around 20% of NPV.

That's around £92m at todays exchange rates. And, around 34p per share considering the shares in issue.

This news is very significant and IMO this will rerate big time. Its not pie in the sky its simply the valuing a project at 20% of NPV. Which is very realistic for a project with DFS, ESHIA and MDA in place.

So for me 32p a share is a good starting point. Then need to add in the value of Hypromag etc.

Fantastic news.

Wonder how this plays into the strategic review of Songway. It is very difficult to value Songwe but the issue of the MDA for Songwe without doubt multiplies its valuation.

IMO this derisking event means Songwe can now be realisticly valued around 20% of NPV.

That's around £92m at todays exchange rates.

Considering MKAs current valuation around £12m you can see how significant an event this is.

Hopefully start to see this rerate towards fair value. Starting 8am Monday.

Hopefully this works. Posted 3hrs ago

https://youtu.be/38YMKFMW_ZE?si=XD3DkMBy8hCqLYdz

What is the general consensus on funds. How long do people belive MKA have before requiring additional funding?

Yes very encouraging. Study on track, production sooner than expecred amd it seems that the discussions around funding are ramping up and Cotec are lining us up for grant funding from US Government.

Regarding production and revenue. I belive that NdFeB is fetching around £48,000 per tonne but I am unsure of the cost of finished magents. Does anyone have any idea the expected price for finished NdFeB magnets?

Certainly could. If any deal can be agreed for Sale of JV with a cash component IMO this could go stratospheric..

Yes there is lots of expected news flow for H2 2024 amd H12025. Hopefully these should see the market revalue MKA.

At the same time we have the ongoing strategic review for Songwe and Pullway. If anything concrete develops there in the form of a sale, JV etc. I think we could pretty quickly see a significant re-rate.

Not sure if anyone posted the link to the recent Cotec investor presentation so thought I would pop it in here for anyone interested. JT gives a pretty update of the progress, status and expections he has for the US operations. Starting around 20 minutes in.

https://events.6ix.com/preview/cotec-provides-market-update

Yes another milestone met and everything regarding the role out / ramp up / commercialisation of the HPMS technology seems on track. The market will eventually twig exactly how big this could be and how big Magnito, Hypromag / Mkango could be in this developing space.