Member Info for velcrofajita

Esduk, I don't see that filtering him out is the best option. he is spreading untrue and negative information which could be damaging for small investor that loses their nerve because of his narrative.

I will therefore continue to counter and pick apart his arguments

You can be sure, I have a very large holding and I am not going anywhere. The mining side is getting interesting but the recycling side has exceptional global prospects.

Allot changed actually

1. Significant price increases in HREE (TB and DY)

2. Neodymium price up 30% since last year same time

3. Both projects now on critical materials lists of EU

4. US/EU and others understood that on REE they need to move away from China reliance even if it means cannot get the rock bottom prices avaialble through China subsidisation to get dominance

5. Cohen valuation - they are not an AIM muppet show, very serious business of bringing new listings to the US markets and they will not damage that reputation to facilitate pie in the sky from anyone

6. DFS for Hypromag USA and the LOI for EXIM financing

7. Materials industry in general starting to slowly come out of a multi year recession following the party of covid lock down period

I personally am not annoyed if people see an opportunity in shorting, that is all part of the market. Your arguments against the company are however very one sided and nobody with any intellect can consider then as anything but a joke or tactic to achieve something else

$400m likely to be conservative, with significant post listing upside now strongly supported by the developments at MP

Also there is Nkalonje Hill which gives exploration upside and potentially can be a feeder resource into Songwe to increase higher grade resource upfront and extend mind life

Https://www.reuters.com/sustainability/climate-energy/us-rare-earth-pricing-system-is-poised-challenge-chinas-dominance-2025-07-14/

Thx for this excellent analysis. I agree 100%

My thoughts on why they don’t list entire Hypromag Group on Nasdaq - they want a separate sustainable “green” business totally separate from a mining and processing operations.

Https://renewablesnow.com/news/germany-passes-law-to-speed-up-renewable-energy-procedures-1278434/

More magnet demand creation from renewable energy policy in Germany

Your thoughts on Economics of Songwe and Pulawy have been dealt with.

Your thoughts on governments only caring to support Defence and aerospace have been dealt with

Now about patent protection, these are rather standard in the West, so standard max 20 years with renewal payment every 5 years. Don't see the issue

Wrong again Peter, on multiple fronts

1. The recycled materials can be blended with mined materials to get the highest performance magnets. Even Terbium can be blended in under the right conditions.

2. Defense is not the only matter of national interest. Governments have vested interests in the tax and trade revenues generated from the car industry electronics, smart phones and so on. EU has a big interest in sustainability and the circular economy and all governments have an interest to not have their economies dominated by China. Just look at who is lobbying the Indian government to do what it can to support independence from China - that car manufacturers!

3. Trump has changed everything, he is showing the way forward on re-shoring vital materials & manufacturing, uisng tariffs, subsidies and so on. The western world has woken up and its about time.

I don't see Songwe / Pulawy will be loss making, even at current prices (mix);

1. Songwe actually has a significantly higher proportion of heavy rear earths in its mix, especially true for high value Terbium and Dysbrosium. This boosts the profitability potential significantly.

2. Mining costs in Malawi, especially Labour are much lower than the US. Mountain pass also has expensive thorium waste handling.

3. Separation plant costs in Poland significantly lower than California, cancelling out the shipping costs which for a rather non bulky, high value concentrate are not that high. We are not talking about bulk commodity shipping here.

Ha ha ha, no they are superior intellect, they will leave him right where he is

Maybe you are right, the resource is so universally critical, an alien race of higher intellect has been searching the universe to find REE resource and will be beaming up the entire Songwe Hill and the Pulawy separation plant onto their mother ship. That now explains why not even 1 kg will be produced, now i'm with you!

And the show must go on............... ha ha ha ha

I am not concerned if sp does not go up right now. A rising Neodymium price is excellent news and is now 30% higher than this time last year. We are slowly coming out of a very weak 3 years for most materials, the trajectory is upwards and at some stage over the next few years we will hit again a cyclical peak. I see it as a great time to invest in critical resources that the world needs, being driven by EV's, renewable energy, AI / Data centers, robotics and also defense. Rear Earths and Copper are at the top of that list if critical resources

Https://energynews.oedigital.com/mineral-resources/2025/06/12/german-engineering-group-urges-eu-to-exert-pressure-on-china-regarding-rare-earths

Example of lobbying in Germany for EU to do what is possible/needed to boost supply of REE

There are alternatives to China - one of them is Mkango with its mine, refine and recycle capabilities

Big discussions going on behind the scenes, we can be sure of that

Https://www.chemistryworld.com/news/military-demand-strains-metal-supply-chains/4021695.article

Interesting article on what the West needs to do, covering multiple strategic metals. The US giant has woken up, now lets see the European rellative wake up as well (it is just a matter of time)

EU will need allot of REE for their Defence spending. The Russian invasion of Ukraine has totally changed the mind set there with very significant budget increases to develop EU wide Defence capabilities, especially in Germany. The EU needs the Pulawy separation plant and as we know they will be fast tracking permitting, which is usually the Achilles heel of such projects in environmentally sensitive Europe. I fully expect that we get some level of EU incentives, subsidised financing, tax breaks (SEZ related) covering both Pulawy and also befitting Malawi mine development.

Even more strategic and valuable is the recycling of REE;

1. Hypromag USA - I see strong possibility for support from DoD to significantly scale up production capacity all the way through to final magnet production. The info on expanding to 3 full production sites by Cotec is in my view based on discussions with US administration

2. Hypromag Germany - With their new focus on Defence as well as removal of budgetary limitations on spending, I can see a much larger recycling footprint across the country, with strong EU support

3. Japan - I am looking forward to major announcements, with recycling facilities in Japan. Similar to Germany they are also focusing more on Defence than in the past, but also are already today the second largest consumer of REE magnets globally.

4. UK which although a small market I definitely see expansion of activities, new facilities with higher capacity

5. Then there are the opportunities in South Korea, Canada and elsewhere

The recycling business is now moving from one of demonstrating the technology works and can recycle good quality and economically viable magnets, to one of scaling up, investing in assets and bringing thousands of tons of REE products to market, in the most environmentally friendly way possible.

Look at any European recycling business (waste, wood products recycling and so on....), they have market cap in the billions and all started out small. The potential for Mkango in REE space is astronimical

AI needs to be used as another information source, but is not a replacement for critical thinking, corroborating information and making own analysis.

AI can give data to help in an analysis but should never be used to give a balances, well reasoned answer to any specific scenario. AI should never be asked to give an investment recommendation.

AI is just a tool pulling together various sources of information but is not able to draw correct conclusions and many times is totlly out of date on matters i ask of it, such as telling me that by 25 November 2024 so and so is expected, when we are already in July 2025

And to add, who will work in the Polish plant - the very skilled , highly educated and motivated to work for a better future people from Ukraine

I happen to work in manufacturing in Poland (senior management / board positions)

The price hikes you mention are comparisons from ChatGBT between 2021 (period pre Russian invasion of Ukraine) and 2025, but they ate generalisations and do not take into account specific factors;

1. Raw material, fuel and energy prices are all coming down from peaks. major solar projects are being put on hold as enegy prices have come down significantly significantly reducing the IRR and NPV on the projects

2. Supply chains are being re-established with sourcing of key chemicals from US (Gulf of America he he), Trinidad, middle east and so on. The shocks caused by Russia are being overcome. Szczecin port in Poland is being expanded by its owners to specifically facilitate storage and distribution of chemicals into North Europe

3. You mentioned high shipping / freight costs. I am responsible for a break bulk shipping business both short sea and trans Atlantic. We have very small margins owing to the depressed freight rates

4. There are also significant incentives available in Polish SEZ (special economic zones)

Mkango also identified the potential for significant cost efficiencies at the time of the 2021 DFS

For me therefore it is a matter of price and not mining/production costs. The price factor has been fixed by the US (to be followed by others), de-linking for the Chinese pricing which as i explained is based on disrespect for things we value in the west

Not to even start with the reccling side, MKA is Gold in this geopolitical environment and a proper business person at the head of the US