Member Info for velcrofajita

Peter, now lets break your argument apart;

1. They don't own the IP

- Yes they don't own but they have an exclusive license for commercial exploitation, which is very normal for intellectual property. As far as there is no public information at all about the duration of the exclusivity and expiry/renewal terms, so you are taking a guess.

- The UoB will have patent protection over a period of 20 years from registration so for that period they would have the right to protection over the commercial use of the HPMS technology. A party like Cotec would not take this technology into a JV with Hypromag and also provide loan funding, if the IP arrangements were not rock solid. EXIM would event be stricter on this as part of their due diligence.

2. They don't own any assets

- Yes they do as they have raised funds and invested in developing the German operations. There will also be clear commercial arrangements for the use of assets at TEP.

- yes they will, JV assets of Hypromag USA

- This is however a technology business so the value is in the income streams from the commercial roll out of the technology and not from the NBV of the production assets

You sound like the old arguments on how could a technology company be worth billions when its not making a profit. Well we all know how wrong that thinking has proved to be

Continue playing your shorting game, that's fine. Your arguments however are nonsense

Yes Peter, its to the moon that MKA is going. The recycling tech is worth billions as it gives a cheap and environmentally friendly way to reduce magnet reliance on China.

MKA should be valued as a technology company!

Peter you put that statement totally out of contect

Esduk mentions free carry in terms of no dilutive equity raise in order to finance HyproMag USA. Please don't take extracts from what people are saying and write the narrative to suit your agenda!

Fully agreed

Esduk,

HyproMag USA plant to be funded through EXIM financing , Cotec. If there is expansion to 3 production sites, there can be multiple other funding options including strategic deals such as with MP materials, off-take with large consumers and further subsidised financing.

Malawi/Pulawy will most likely have money from Nasdaq capital raise to fund the equity portion and debt packages from African Development Bank for Malawi and KUKE Export financing for the Pulawy plant.

Hypromag UK I would expect will get a working capital facility from a local UK lender and will finance expansion through cash flow

Germany, like you I am not so clear.

In summary, very little equity dilution for what Mkango is looking to achieve

Would make allot of sense if one of the recycling plants are at mountain pass so that mined resources from MP Materials could be blended into recycled materials from Hypromag so that the highest performance magnets could be produced.

Perhaps a JV between MP materials and HyproMag USA, with Apple as the off-taker.

Happy to see it stabilise at these levels. The institutions / family offices will be smart how they get in, not taking this to the moon chasing shares at any price. I want a slow steady rise, with some pull backs/consolidation and then the next leg up on news-flow

Global demand is growing and that is a strong support for the mining/separation business. This business however is a nice to have but is not the core driver of what MKA will become going forward.

The low cost, quick (hence short loop) and environmentally friendly HPMS recycling technology is a game changer for magnet recycling. There is more than enough feedstock with hundreds of millions of devices fitting this recycling method shipped around the globe annually.

The profitability is a multiple of the profitability from mining/processing. The recycling makes MKA more like a technology company than a mining company, with much higher earnings multiples for valuation purposes and a much longer life of operations, subject to key technological plant & machinery being subject to good maintenance plan and upgrading / modernisation when needed

The market has still to put any value on this magnet recycling technology business, but when it does, fireworks would be an understatement. If there is a take over offer, we should be looking for £1 billion +

The way this is going, many here will be able to start their own HNW family office!

Miles, excellent write up as always

On the mine in Malawi, I can see also exploration upside potential from the Nkalonje Hill deposit. This was all put on hold subject to the strategic review but once listed on Nasdaq and access to investors capital, the drill program may well push ahead. The benefits would be getting some higher grade material up front and also extending the mine life.

I got 2.75 million shares across UK and Canada. Not one of my shares is for sale

Https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TE1CC:0-japan-eu-to-explore-joint-rare-earths-procurement-nikkei-reports/

EU - Japan joint public private partnerships to reduce reliance on China. Could magnet recycling be one of those?

Https://www.chosun.com/english/industry-en/2025/07/15/EEPRZ3T3UVFCJBBK4EY77DCF2A/

Guess who's got Dysprosim

🍏 Apple’s $500M magnet deal sends rare earth stocks flying

The below came through from one of the global news subscriptions that I have;

Rare earths are back in the spotlight and not just because of the Pentagon’s recent push.

Apple made waves Tuesday with a new $500 million investment into U.S. magnet production, lighting a fire under rare earth stocks.

The move also gives the Trump administration's reshoring campaign a major vote of confidence from Silicon Valley’s biggest player.

🔩 What we know about the Apple–MP Materials deal

MP Materials (MP), which just scored a major U.S. Defense Department contract last week, popped again after Apple announced a new partnership focused on rare earth magnets.

The initial details were light, but here’s what’s on the table so far:

• Apple will pay $200 million for magnets produced at MP’s Fort Worth, Texas facility

• The magnets will be recycled in California and begin shipping in 2027

• It’s part of Apple’s broader $500 billion domestic manufacturing commitment

It’s still unclear which Apple products will use the magnets, but the move comes as the White House continues pressuring Big Tech to relocate supply chains out of Asia.

Bob O’Donnell, president of TECHnalysis Research, said the investment “makes complete sense” given Apple’s reliance on rare earths in everything from iPhones to AirPods.

“Plus, by focusing on a U.S.-based supplier, it does help position Apple more positively in Washington,” he added.

Apple CEO Tim Cook's announcement effectively sent the same message.

“Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States.”

📈 Analysts see upside and higher prices

With rare earths used across everything from EVs to defense to consumer electronics, analysts are widely bullish on the space, especially as government support grows.

Ryan Castilloux, managing director at Adamas Intelligence, said the Pentagon’s guaranteed pricing terms could reshape the global market.

“This benchmark is now a new center of gravity in the industry that will pull prices up.”

And Canaccord Genuity analyst George Gianarikas pointed to upside for U.S. producers beyond just MP.

In a recent report, he highlighted the potential for companies like USA Rare Earth, which he says are building the foundation for a domestic supply chain.

“The U.S. needs to build a magnetics supply chain outside of China,” Gianarikas wrote.

MP Materials closed up nearly 20% on the day. USA Rare Earth jumped more than 31%. Even Apple saw a modest lift, up nearly a quarter of a percent.

The main problem as I see is lack of liquidity on AIM which holds back the big corporate investors and family offices.

Many times for family offices shareholdings are linked to asset backed loan arrangements and AIM listed shares (including MKA) have a zero loan to value from any serious lender.

I am sure the board know this very well and have plans how step by step the huge value here can be unlocked. Nasdaq, UK main board listing etc

I doubt Vitol is looking for a quick exit and don’t see any acquisition without pre agreement with them

I doubt it, there are significant synergies in development of a joint mine, priocess, recycle collabiration

Department of Defence is not finished, they will work with other companies, so MP deal is not a one off

https://www.reuters.com/world/china/pentagon-keep-working-with-us-rare-earths-projects-us-defense-official-says-2025-07-15/

Space program as well

https://payloadspace.com/rep-stevens-bill-would-invest-in-us-rare-earths-supply-chain/

On big benefit is that mined materials can be blended in with the recycled product in order to achieve highest level of magnet performance. In this way mining, refining and recycled become fully complementary at the same site

Apple News following on from DoD on MP Materials. Investors will be looking to allocate more to REE stocks and Mkango is one of the great opportunities there.