Member Info for velcrofajita

Esd,

Where it makes no sense is that the lower margin, spin out prospective mining and processing business has a value triple that of the cutting edge, high margin technology business that which is being focused on.

There is no risk for them throwing the USD 400 million valuation around as they will just reference to Cohen. Valuing a new technology recycling business is a much harder task with no comparative or historic process numbers to rely on. This is exactly where the huge opportunity with MKA lies. people are unsure how to value the recycling business and will drive up the value as agreements are reached on sourcing of materials, financing, offtake, strategic tie ups. Problem is if you wait for that to happen, you have missed the majority of the value creation.

Easily, for me a free valuation report is really not worth anything. Biggest question, who pays then to produce and for what reason?

Judge the numbers yourself and consider the strategic position in the global environment. Much more valuable.

I have allot of experience in v as justification, hssucsky you get whatever you pay for and then use it further purpose to in want.

Esduk, I expect things will continue like this until we get the next news-flow. That will not be a very long wait and until then we are likely range bound

Headline from a Bloomberg new flash which i don't have a subscription for. The subject matter is clear and could be a huge development for investing in magnet recycling in Europe.

"Germany is preparing to launch a €100 billion ($116 billion) investment fund to help secure strategic sectors such as defense, energy and critical raw materials".

Https://michaelwest.com.au/news/rare-earths-miners-see-opportunity-in-us-trade-war/

Lynas given funds by DoD to construct rare earths processing facility in Texas

Australian Strategic Metals also in discussions with US administration

Announcement of Hypromag USA partnership with DoD / US authorities is a matter of when not if

Tortoise123

My thoughts are that we are in the middle of summer holidays, with key people managing family offices, investment companies as well as large personal portfolios not focused on the next investment decision.

Those who are smart will pick up what volume is available now, while focus is elsewhere

This from "The Australian". I don't have a subscription but the subject is very clear, the US price floor move will be repeated elsewhere. The day's of rare earth mining being uneconomical outside of China are coming to an end.

"Canberra flags rare earths price floor to counter China

Australia will set minimum prices for rare earth minerals and broker national supply deals to break China's grip on the critical defence material."

Recycling very likely will have an NPV of a multiple of the £229m mentioned, based solely on the roll out of significantly more plants in the US .

STN - Exactly!

Me to, avg just a little higher than yours. I have a large holding almost 1% of the company, but I do not intend to sell anything. Not at £1 for sure and possibly also not at £2 (this one depends on developments).

Below is the text of the article that I tried to share

"China restricts exports of rare earth metals for We"stern military industry

11:12, 04.08.2025

Region:World News

Theme: Politics

China has imposed severe restrictions on the export of key minerals needed by Western defense companies, forcing them to look for alternative sources outside the country, industry representatives say, The Wall Street Journal reports.

The reduction in deliveries of rare earth metals and magnets is causing delays in the production of weapons and equipment, from ammunition to drones and fighter jets. One American drone manufacturer was forced to delay orders for several weeks while it searched for alternatives to Chinese components.

Traders said prices for some essential materials have risen five or more times above pre-war levels because of Beijing’s restrictions. More than 80,000 parts used in US weapons contain minerals subject to Chinese export controls, and nearly all supply chains rely on Chinese suppliers, posing serious risks to US defense.

In addition, Chinese authorities are requiring Western companies to provide detailed information about the intended use of the minerals they purchase so they can prevent them from being used in the military sector. "

I see.

I will try something else to be able to share

In order for serious long term investors to come in, traders and those that have already bagged multiple gains need to sell out. This is what the stock market is about and I see this as very healthy.

The economics and political will are there. Serious investors also need liquidity

Https://news.am/

The West has no options, they must develop rare earth metal supply chains other than China. The defense side of demand is not driven by economics but by geopolitics and this is an area where over the last years we are seeing increasing conflicts, disputes and actions to gain superiority in georgraphical locations.

The price of rare earth metals will rise to where it is economical for the west to mine and process, while firm action will be taken to ensure effective recycling capability. Funding will be no issue.

Very understandable that after 6x gain some people want to exit.

For me the past price is irrelevant and the risk/reward from current price is very compelling, with US (and the world to follow) looking to diversify away from reliance on Chinese supply.

What I see is a technology, business concept that under this scenario is worth billions and not hundreds of millions. Just compare to a company like archer aerospace that has market cap of USD 6 billion with an unproven technology and commercial concept.

Not selling anything even for 5x current market price.

Https://discoveryalert.com.au/news/us-rare-earth-strategy-chinese-dependency-2025/

Notice the multiple references to recycling and banning export of end of life products suitable for recycling outside US borders.

I have no doubt that Hypromag USA is in detailed discussions with the US authorities about fast track roll out of HPMS recycling plants

With Trump leading the US Hypromag could not have better timing.

This is huge!

I do exactly the same for my employer when we build up strategic equity stakes in businesses that interest them. I am happy with this pattern as serious long term investors are coming in.

On Nasdaq there are companies with a few billion of market cap that have less going for them near term than MKA.

STN - Excellent.

The US will not be able to offer price floors to some entities and others not. All US producers will need to be provided with the same pricing incentives in order to avoid unfair competition.