Member Info for soda47

Maybe rename Global Rare Earths!! Europe, USA, Africa. Asia next? If USAR had made this acquisition what would it have done to its share price!?

Esduk, Heron Road. Past Hollywood Exchange. They have a possible site for the commercial plant (when financed!) close to the Porsche garage on the edge of the Titanic Quarter. Technology was developed at Queens.

I have started a small position in IXR recently given its mcap and potential upside. It has a proven demonstration plant just up the road from me. Funding is an issue though. There is a short 11 minute presentation from last week on You Tube from the Emerging Growth Conference. Don’t want to post the link on here as it’s an MKA chat. I like to diversify my holdings to spread risk a little bit. My main rare earth holding is in MKA/CTH due to Hypromag. Together they are a far larger holding (>20x tan IXR) because I like the Hypromag technology more and it has a clearer roadmap to success.

True. But it has a lot wider reach.

You can write replies to articles on Rare Earth Exchanges so I thought I would do that! Not sure how many will read it though made me feel better!

I think it would be difficult to agree a price for Hypromag. USAR would look at the current market caps of MKA and CTH and work up from there. MKA and CTH would look at the Hypromag NPVs and the SPAC valuations of other inferior rare earth companies and work down from there. It’s a big gap!

And Julian at CTH gives the impression he wants to be a multi billionaire. He isn’t going to sell cheap which is good! I could see him selling the CTH 50% Hypromag USA holding but keeping the 20.6% holding in Magnito (I think) to ride off the back of USAR. But his stance may depend upon how feedstock, project financing, government grant and offtake discussions are going in the US.

We shall see.

Https://www.zerohedge.com/markets/usa-rare-earth-actively-pursuing-acquisition-opportunities-around-world

Apologies if already posted.

Masters was absolutely brilliant!! Played Holywood Golf Club once (very badly!)

Hopefully a grant RNS tomorrow. Maybe the Easter week, guys are at it full throttle or something bigger brewing has delayed it a bit.

There are no doubt things to be frustrated about here with comms, raise price, missing deadlines but I try to look past that. The corporate graveyard is full of many clean tech ideas that work in the lab or pilot stage but fail when they try to be commercialised for different reasons. HPMS recycling appears now to be proven at commercial stage, the economics are good and is now going to be scaled up in 3 locations and likely others with a geopolitical tailwind. This is incredibly positive.

I don’t like hard deadlines with this type of business. Delays are very common for a host of reasons, a lot outside the control of the company (e.g. EU permitting, supplier issues, etc). No doubt missing deadlines is a frustrating but are normal. If you still believe in HPMS you have to suck them up and be patient. What’s the point in whinging?

The acquisition of a German magnet maker (assuming that is the case) would enable the production and sale of finished magnets to create value. This technology could in theory be used in the US and other locations and could also produce magnets from third party sourced material. That could create a lot more value than the cost of a 33p raise at this level of dilution.

In terms of the raise price, we would obviously have liked it to be at 50p. But I guess the reality is that the company has to give an investor an incentive to invest and reduce their risk. And without capital the company would not be able to continue to grow. Just a fact of business and being listed on AIM.

So best to look past this raise and to what looks like a bright future!

This is from AI (Claude):

“So which rare earth mining projects outside China and its allies are totally ready for the mine to actually be built today?

Arafura — Nolans, Northern Territory, Australia

Status: As close as any project gets, but FID still not taken.

Songwe Hill — Malawi (Mkango Resources)

Status: Best-in-class on permits/agreements; awaiting project financing.

MP Materials — Mountain Pass, California, USA

Status: Already producing

Lynas — Mt Weld, Western Australia

Status: Also already in production.”

That’s it! Assuming this is correct (caveat because it’s AI), all other global rare earth mining projects outside of China and its allies are at different stages of development and as such have to have some doubt attached to them. Surely the African projects the U.S. International Development Finance Corporation (DFC) recently approved for strategic investments (but couldn’t announce at the time due to confidentiality reasons) has to include Songwe Hill?

It’s just a case of being patient for a bit longer. Timelines should be flexible when scaling up an industrial process at commercial scale imo. Mkango’s short loop recycling technology is brilliant as it is so simple and cuts out all the expensive, time consuming and complex steps from building a mine and the bottlenecks of processing/separating mining concentrate into rare earth oxides, metallisation and alloy making.

According to AI the nominal (par) value of its ordinary shares is €0.00025 per share. That’s still a long way below the current sp so placings still possible I believe.

It does say the borrow is a “legally independent Delaware entity“”. Would they use an independent entity for the purposes of Project Vault?

I think the EXIM LOI is valid for 12 months when it would have to be renewed. So June 2026. And as it’s <$100m it doesn’t need a board meeting so approval could drop anytime. And perhaps EXIM are waiting for final plant design to be completed which I don’t think has happened yet. So surely still in play. Just patience needed.

Nice mention in this article! https://rareearthexchanges.com/news/resourceeu-healthcares-strategic-upgrade-and-the-market-winners/

My phone gives the option to translate to English. This is the main headline.

“Construction of a rare earth refinery at the Azoty Puławy site will take 18 months between 2027 and 2028, Grupa Azoty and Mkango announced on Tuesday. They added that Mkango intends to complete a full feasibility study at this stage.”

Also says it’s an 8 hectare site. That’s a big site. Coming from a farming background that’s a big field! 30 acres.

The current mv is probably not important because hopefully it is going to go up a lot in 2026 as the business evolves quickly. I wonder what the share price could be in 2030 with a £500m EBITDA and applying an appropriate PE ratio, a global, market leading recycling business and an operational mine with processing plant. But it will probably be taken out by then and whether I still own any shares in any case who knows!

@Skyman64 You clearly misunderstood me. I don't value the company at 75p and AI didn't value it at that either. I am looking for ££s per share. I was just trying to make the point that currently it appears very unlikely anyone would make a suitable offer based on the current share price being very undervalued. It's highly unlikely anyone is going to make an offer 5x the current share price.

There’s no doubt that Mkango could be a juicy takeover target but will anyone offer a sufficient premium to the share price for the required percentage of shareholders to accept a bid? AI tells me a typical premium to mcap on AIM acquisitions is around 50%. That would mean an offer of 75p per share based on current share price. Of course the share price will hopefully keep going up! Having said that I am not an expert on these things having worked in tax rather than corporate finance.

When it comes to this board I don’t post much as I’m a taker not a giver!!! My previous posts have been about graphene with very little interest. I am invested in Cap-xx and want it to do very well. Only have a few million (!) shares so not as many as lots here.

But just trying to get my head around Ionic Industries potentially going bust and what that would mean for the JV with Cap-XX. It looks like graphene is in smt (anode I assume?) based on the passage quoted earlier from the patent application and the following from a recent link posted here:

“….multiscale reduced graphene oxide (M-rGO), which is synthesized from natural graphite – an abundant Australian resource.

Using a rapid thermal annealing process, the researchers created a highly curved graphene structure with precise pathways for ions to move quickly and efficiently. The result is a material that offers both high energy density and high power density – a combination rarely achieved in a single device.”

My issue is with Ionic Industries potentially ceasing to trade, what does that mean for the JV? Does that mean m-rgo will no longer be available to Cap-XX? Does that mean Cap-XX really has to buy Ionic to be able to commercialise smt and, if so, what price should it pay?