Member Info for velcrofajita

We need to understand that DT is first and foremost about US domestic production. This is where state funds will go and it is up to UK and EU if they want toi use public funds to support developments in their countries.

When it comes to US state funds, the best bet is that Hypromag USA gets the state funding/subsidies etc from the US.

Biffa, I'm sure they are not adjusting for each increase in prices. Very likely on price they are using current day or base price at a set date and then future forecast prices same way as CoTec do it for Hypromag USA.

If I had to guess where any delay is, that would be on the product mix coming out of Pulawy and how best to use the high price Terbium/Dysprosium where I just cannot get out of my mind that this needs to be used to upscale Hypromag recycled material so that a high performance magnet can be sold for defense/aerospace applications

Thinking further, USAR had a mine under development, magnet production facility in Oklahoma coming on stream later this year and of course the LCM acquisition. What it’s missing is recycling to have a fully integrated process across mine, refine, recycle. MKA and or Hypromag USA make allot of sense, but they will need to pay top dollar, I guess cash and shares although I would prefer all cash, bit at least in current market REE shares are hot again. Next days/weeks will be very interesting.

Rider, agree that Ukraine REE will be a non starter

I am personally involved in financing Wind, Solar and charging infrastructure in Ukraine so yes I do see some significant demand in Ukraine from renewables going forward

Drone and Arms manufacturing is already there and will grow

Clearly nobody will invest in Pulawy for supply to Ukraine but is is a target market for future supply and fairly close

Hypromag facility at their Oklahoma facility makes allot of economic sense. Same thinking as what I described about a Hypromag facility at Pulawy

The offer would have to be big enough to convince CoTec that it is better than a listing and sp post listing.

Sorry £2

USAR are out to aggressively grow by acquisition. May very well put an offer to buy Hypromag USA and all of MKA. Good and fairly near term way to scale up. I current market price irrelevant considering two upcoming Nasdaq listings. Anything below €2 would be a joke

Neodymium-Praseodymium (NdPr) magnets will be critical for the rebuilding of Ukraine after the war.

As Ukraine looks to rebuild, it is heavily focused on green infrastructure, energy independence, and advanced, efficient technology, all of which depend on NdPr magnets.

Here is how NdPr magnets will be used in Ukraine’s reconstruction:

Green Energy Rebuilding: Reconstructing the energy grid with modern technology will require significant investment in wind turbines for renewable energy. NdPr magnets are essential for creating the efficient generators used in these turbines.

Electric Vehicle (EV) Infrastructure: As part of a European-focused recovery, rebuilding infrastructure for modern transport will increase the demand for EV technology, where NdPr magnets are used in highly efficient, lightweight motors.

Industrial Robotics and Manufacturing: To rebuild and modernize Ukraine's industry, high-performance robots and automation equipment, which rely on NdPr-powered motion sensors and motors, will be needed.

Defense Capability and Security: The ongoing and post-war defense strategy requires high-tech, lightweight components, such as in drone motors, radar systems, and guided electronics, all of which heavily utilize neodymium magnets.

Strategic Context:

While Ukraine is currently facing a 9-fold increase in magnet imports due to the need for drone production, long-term, the focus is on rebuilding a sustainable, modern industrial base. Furthermore, Ukraine has significant, untapped, rare-earth mineral reserves, and there are active plans to develop these as part of a "mine-to-magnet" supply chain with Western partners to reduce reliance on external suppliers.

Pulawy only a few hundred miles from Lviv, Ukraine

Terbium/Dysprosium often used together with Dysprosium more used for the thermal magnetic resistance. With 50t+ per annum of these HREE I do see 100tpa of high performance magnets capable of production. That is very significant and profitable, a niche production facility

In order to produce 1000t of high performance ndpr magnets, about 5t of Terbium is needed. Clear to see what the most economical use of the Terbium is. Thinking needs to move past separating out the Terbium/Dysprosium oxides for onward sale.

Jibanzi, my thinking is that combining a Hypromag recycling facility with the separation plant in Pulawy could generate the maximum profitability from the mined and separated product, especially the HREE such as Terbium and Dysprosium.

We know that the Songwe MREC can produce 50t+ of Terbium, Dysprosium per annum. Rather than sell this on my thinking is having a facility at Pulawy where the Terbium/Dysprosium can be blended into the recycled material before sintering (using grain boundary diffusion) so that specialised high performance magnets can be produced. This for sure can be extended to blend together mined and recycled materials in order to minimise loss of magnetism and ensure a higher quality mostly recycled product.

This combines the benefits of the low cost Hypromag recycling with the higher margin high performance magnets that can come from the blending process. Seems to be the best use of the Songwe mined product, resulting in high added value dowstream products

Jibanzi, sorry not with you. When what changed?

Hello Miles

Yes I do absolutely see an expanded operation at Pulawy. My thoughts were more along the lines of a Hypromag facility at Pulawy that would take part of the separated out REE and through methodologies such as grain boundary diffusion blend into the recycled magnet Ndpr and also Terbium, Dysprosium in order to upscale the recycled product to the highest performance magnets. There seems to be huge cost synergies in having separation and recycling at one large scale facility.

Certainly also a larger alloy production facility is imaginable . Thanks allot for your thoughts on this

Absolutely right and anything in Greenland will have the same fate.

Hypromag fits very well within the European mindset, with excellent ECG credentials, critical materials supply and economics that work without subsidies and other state support. One modest plant in Germany is not going to get allot done for Europe and I expect there will be significant roll out of further production sites in Germany as well as Poland.

Pulawy is also an excellent location within the European mindset as already an industrial area in a country where there still is a manufacturing base and mentality

Any acquisition offer would need to be weighed up against Nasdaq listings of both MKAR and Hypromag USA. The current sp should be irrelevant to any logically thinking investor. With REE share prices on a tear again I would see absolute minimum value to MKA of the listings being USD 500 million each, therefore USD 1 billion in total, with UK, Germany and rest of world possibilities coming on top

USD 1 billion = £740 million. This is 4x current market cap so £2+ for MKAR and Hypromag USA share, UK/Germany/RoW does not go for zero so where it starts to get interesting for me is an all cash offer of minimum £2.50 per share right now. In another year and if a major Asian tie up emerges that will shoft significantly upwards

I see it very positive that REE stocks are moving significantly up again (MP, USAR, Lynas and others). Higher valuations for these companies bode very well for MKAR and later Hypromag USA Nasdaq listing price and post listing movements.

I see it a better timing to be going through with MKAR listing compared to the period immediately after Trump-Xi agreement on rare earth supply and the exit of money from the sector. Game on now and can only get better considering supply-demand and that US-China agreement was for 12 months only

Kowalksi, you wrote the answer - funding! When MKA announces key funding news on either MKAR or Hypromag, there will be fireworks.

Absolutely agreed that there will come a time that REE supply-demand will be balanced. This is the natural adjustment mechanism of economics, but for the next years and I would say it is well more than 5 years, the annual demand growth is going to outpace new supply. That is exactly what the super cycle is.

He he he, if he wants my shares, he needs to add a zero to that 52p