Member Info for Major-Tom

Yes me too. MKA have transitioned from a pure resource exploration / mine development prospect into a diversified company, with commercial scale magnet production and revenue imminent.

From todays RNS it looks like everything is still on track with the HPMS recycling. Commercial production in UK H2 this year. Germany next year and the USA the following year.

Add in the recent Japanese tie up with Envipro and the potential for further developments in other Minerals Security Partnership countries and it easy to see how this HPMS recycling could lead to Magnito / Hypromag / Mkango becoming a market leader in rare earth magnet recycling.

With a MCAP around £16.5m I think IMO it is fair to say that there is currently zero of the HMPS recycling growth or the value of Songwe or the Pullway projects priced in to this valuation

Agree Owlman, H2 2024 and H1 2025 should see some positive news flow including commercial production and revenues from HPMS recycling. This should see MKAs valuation gradually increase current valuation ~£16m

Thrn there is the potential for a substantial rerating in valuation that could come from the strategic review of Songwe and Pullway. If these are divested either as a sale or JV farm in that includes a substantial cash component then IMO MKAs valuation could rerate substantially and quickly.

Fulmar, I find it hard to belive that you still defend Nick, Remy etc.

IMO, to continue to dismiss any negative news or alternative opinions as untrue, malicious and now a storm in a tra cup shows a great deal of naivety in your part. I honestly think you need to start considering alternative opinions as you seem to have become blinkered regarding ARCM.

I have increased my MKA position over the last couple of months following the fundraise and WDs further significant investment.

I decided to increase my exposure due to the expected positive newsflow relating to the recycling side of the buisness over the next 12 months. I am expecting a steady rise in valuation in the this period as the HPMS technology is commercialised and the company starts to see cash flow and hopefully steady revenue growth. However, given the ongoing strategic review of Songwe and pullway, I feel there is also potential for a significant rerate if any of the options being evaluated come to fruition, particularly if there is a significant cash component to any deal.

As far as I understand there has been around $25m invested into Songwe by MKA. I guess the value added through developemnt must see Songwe valued North of this. However, I cannot find any comparable assets sales / JV deals for a REE project like this. Whats the general consensus on the valuation of Songwe pre MDA / post MDA and Pullway?

The placing was obvious and was required. No issues there. However, for me the big issue with this placing and probably the reason for the further drop today is the lack of credibility of the management.

Let's not forget. They locked in the profit from their previous warrants to "minimize dillitiom" now they are buying more shares with the profits from their last sale at a vastly reduced price, increasing their holding and issuing themselves reams of warrants again. What a shower. They will never get their credibility back. Looking out for themselves.

The placing was blatantly obvious. I was baning on about it for 2 weeks before hand. Not to deramp and buy in lower as some on here said but to make sure people were taking a placing into consideration with their investment decisions. As I have always said ramping cause more people to loose money than de-ramping. I hope not many bought into the ramping BS and can now buy on lower to maximise their returns.

Jarv, I never put all my eggs in one basket. I will be all in here at some point, When the time is right. However, All In means All in for my exposure to Arc. This will never go above 10% of my overall portfolio. IMO discipline is key when investing in small Cap mining stocks. I find that so long as I gaurd against losses the gains look after themselves.

Be careful people. This is screaming that a a placing is being worked. I have invested 25% of the total funds I have allocated to Arc. I will get to 100% eventually but IMO now is not the time.e to be adding. Each to their own, make your own decisions but be careful and think long and hard about committing any further cash to this until the funding requirements/ placing is confirmed.

Tomrya, that's the position I have been in and conveying here for some time.

IMO they are not aligned with shareholders and only have their own self interests at heart.

Been travelling a last couple of day. Just opponent my ISA account and sad to see this drop below my 2p placing theory.

Am I the only on here who sees the need for funds. Noticed that SP Angels have been replaced by WHI. What is the chances that SPA couldn't raise the required funds above 2p and WHI are now try to het a placing away at the best price possible?

If Arc were trying to raise let's say £2m at or below 2p they would need to issue atleast 100m new shares. Add thisbto the Swedes divesting their holding that is a lot of shares to work though the market.

I really hope I am barking up the wrong tree here. Although I would load up at any discount placing price my current holding is already taking a hefty hit.

Surely the mamagemnt won't ruin the company valuation and credibility to just raise funds for Botswana or G&A. Surely they would just put Botswnan on hold, sacrifice salaries and ridenthisbout until the value of the Anglo exploration campaign is reflected properly in the company valuation.

Hi, I have been of the opinion for some time that the Ghanaian listing and the MIIF project level buy in will be the key drivers to share price appreciation.

I would be very surprised, given the importance of the project and the visibility of it Ghana, if there are not some Ghanaian big hitters waiting to buy in. I guessed that they will hold off as long as possible but will no doubt want to maximise their future upside potential returns. For this reason I always suspected we would see the Ghanaian listing, Ghanaian buying arounf the low 20s, then the ratification, then the MIIF project level investment, then depending how appealing the ALL valuation is after these milestones potential further offers for ALL.

I wonder if the quite substantial trading on Friday and the unusual, for the moment rise in valuation, if some of these guys have gotten wind that ratification may be soon.

Hopefully this is the case.

Agree diamondgeezer. Best thing to do is spin out the non Zambian buisness, reduce costs and incubate our exposure thebthebzambian exploration. IMO Arc would soar if such a plan was put in place.

Unfortunately, it is not in the interest of the management to do this so I doubt it will ever happen. IMO Botswana in nothing more than an excuse for them to continue raising funds so that they can continue drawing their exorbitant salaries.

Am I the only one think that Arc may be trying to raise to raise funds at the moment? And, that the Swedes selling down may be impacting this.

I have genuinely felt for a while now and mentioned on here that a 2p raise could be on the cards. If that is the case we can't be far off now. If that is the case we should see a rise post raise as Anglo ramps up exploration later this year.

Hopefully we get clarity soon as I cannot justify investing further at the moment when I genuinely believe I will be able to buy lower in the coming days and weeks.

Yeah good to see some positive momentum in the lithium / spod price. Hopefully it continues and can lead to a sustained increase in ALLs valuation. If the lithium narrative changes there will ba a lot more than Assore looking enviously at ALL

Very good post valuseeker. Echos a lot of my own frustrations with this investment and management.

Seis, in my experience people who cannot take on other opinions, honest intents or not, often end up blinkered. The worst injustices and biggest losses I have seen PIs suffer have come when there is no or a stifled alternative, balancing opinion. I sincerely hope you never suffer this fate. I hope for all investors make a return on their investments. Investing does not need to be an advisarial pursuit.

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Looking forward:

I feel that a placing is likely in the near future. How much is this required is not easy to accertian as there is no real clarity on the current cash position. If as some expect the first tranche of AA funds was consumed on outstanding / over due costs then the coffers must be almost empty. Considering the lack of clarity on current liquidity my guess is arc will require somewhere between £1.7m and £3.6m through until the end of of 2024. £1.7m if none of the initial AA payment was consumed by legacy costs and £3.6m if 100% of the initial AA payment was consumed by legacy costs. This would require new shares issued equating to 6% and 13% at current valuation or 7% and 15% if placing was to be priced around 2p. The current valuation looks fair however this lack of clarity on funding position and requirments for 2024 puts me off adding another tranche at the moment.

Looking beyond 2024 funding I fully expect that once AA ramp up exploration activities in Zambia we should see a decent sustained rise in Arcs valuation. How much of rise we see in the SP will IMO depned on how much future dilution we see over the term of the JV. Dilution of between 6% and 15% in 2024 may not be an issue. However the prospect of continued dilution in 2025, 26, 27, 28, 29 etc. etc. may result in the inevitable increase in the companies valuation not being reflected in the share price.

This is why I belive that the best course of action for Arc shareholders would be to spin out the non Zambian businesses and reduce Arc costs to a minimum to minimize future dilution and the potential drag this may have on dare price.

Unfortunately however I do not believe that this is in the best interest of Arc management and cannot see this being put I to action. In the meantime I hold, be cautious and add when the time is right.

HarChris, here is my take on Arc.

For clarity, before I am cast as a self serving deramper my current investment position in Arc is this:

I have invested in Arc numerous times over the last few years. So far I have broken even in all my Arc investments excluding my current holding qhich is still a wprk in progress. At the moment I am holding my initial 25% tranche of my latest investment foray into Arc. I will add further tranches as and when I feel the time is right to maximise my upside exposure and to reduce my break even price incase I decide to bail once again.

Now that is out the way. This is my view on Arc's current situation:

I believe that Arc's Zambian licences are exceptional. Probably the most prospective copper licenses in Africa. I belive that with the current political situation in Zambia it is fast becoming one of the most attractive countries in Africa for Mining investment. I am not so keen on the Botswana KCB licences. Will they find something? Who knows. I personally think that it is an unwelcome distraction from the main event and adds potential ongoing costs that we do not need at this stage of the Zambian / Arc story.

On the management I initially had faith in them. However, this began to fade when I started to see whay IMO was a disconnect between what the company were saying in investor presentations and shareholder events compared to what was being announced via RNS. I finally lost all faith when the directors completed IMO one of the most scandalous series of events that I have seen in over 20 years of investing. Heres the series of events thatvtook place to explain why my feelings. In February 2021 they held an investor presentation during which the categorically stated that the company was in its strongest cash position for many years and was fully funded for all activities, including drilling, through until the end of 2022 when they expected the company to be cashflow positive from the Cheyeza East Plant. 1 month later, as the share price peaked at all time highs the management cashed in their options and locked in their upside of this all time highs. 8 days later they announced a placing at 6.5p and the share price has drifted on a downwards trajectory ever since.

So my current position is a very strange one and not one I am entirely comfortable with. I am investing in a company where I have zero faith in the mamagemnt purely because I belive so much in the upside of the Zambian licences. Considering this I am very, cautious on position sizing, exposure and timing of buys. I am also very critical of the managment which leads to me to be called a deramper. I would label myself as a cautious investor trying to maximise my upside potential and reduce my downside risk.

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Continued.......

Nice to see a strong blue day. Hopefully people starting to take positions ahead of the expected newsflow

Morning Fulmer, you coming round to my way of thinking? This summary is almost exactly my point of view on Arc at the moment and exactly what I have been chastised by yourself, Seis and Jarv for voicing here over the last few days.

Zambian assets = Top class

KCB licences = Speculative

Cash in hand = Minimal

£1.9m received Nov = Most likely largely consumed straight away on back dated, deffered expenses

Current Funds = Not enough for current ongoing admin expenses never mind KCB exploration.

All this equals = Funding required for ongoing admin expenses and drilling KCB

IMO only = We are being lined up for a 2p raise

Future funds = £0.5m due April / Novemebr 2024

Average annual run rate of expenses = ~£4m

All this equals = Ongoing future fund raises to cover ongoing admin expenses and KCB exploration.

IMO only = This ongoing dilution for overly expensive admin costs and KCB drilling will dampen the upside potential of the Zambian licences. Best to spin out the non Zambian licenses, reduce Arc admin to bare minimum, incubate Zambian investments, JV income will cover Zambian costs, Arc valuation will fly directly in line with JV success. Maximising shareholder value

Can you not see thay we have exactly the same aim here. Maximise shareholder, our, value and progit. BY the looks of it, with your endorsement of this report we also do not have all that disimalr views on the current status of Arc.