Member Info for velcrofajita

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

Well let me think ............... no, not interested

Oh my, MKA prospects even better than i thought. China really fearing loss of their domination now

As for Peter, y feeling is that he is on a Chinese payroll trying to scare away investors and keep MKA market cap low. Be certain the Chinese fear an MKA with growing market cap and access to the financial capability to roll out thousands of tons of rear earth products

For me the more negative Peter gets, the more the MKA story looks like Gold

Today's new of the US minimum price guarantee is the game changer I have been waiting for.

China has built its dominance on exploiting poor workers, disregarding environment and pushing out products ate prices that are unsustainable for producers in countries where environment, workers well being and market forces are respected. The US is finally taking action with rear earths which is the way many countries must go on multiple products to break the Chinese stranglehold.

We should have no concerns, every ton of product produced by MKA will be swallowed up at prices that gives Mkango maximum incentive to continue expanding production capability.

This is one rags to riches story not to be missed. I am looking for market cap $ 1 billion + in a shorter time horizon that i had expected up until today

The EXIM loan may well place conditions on the servicing of the subordinated loan. I have first hand experience with such programs in Europe so I commonly see requirements that sub debt servicing has to follow a schedule which is 6-12 months later than the schedule on the senior loans. Also if the sub debt is an equity equivalent and treated as such there may be equity/total asset restrictions so that it is not paid down to quickly

Pete,

Its easy to make sweeping statements but without reasoned support of your position as to why, your posts can only be taken as a joke

May well be them

My thoughts on the expansion

1. Canada - will be another JV with Cotec, with Cotec responsible for funding. Same type of arrangements as USA, but smaller scale, probably at level of UK

2. Japan - A JV involving Envipro and other Japanese investors, similar to what is being done in USA. Environmental concerns have been the biggest obstacle to recycling developments in Japan, with HPMS the obvious solution. Mkango will not put up funds

3. South Korea not sure with who but again a JV where Mkanfo delivers know how and the partner financing

I share the view that any additional funding raised by Mkango is destined for completion/expansion in UK and Germany. I expect the expansion funding will come from selling down a part of the Nasdaq shares to generate liquidity

Esduk - Absolutely!

I have a massive holding in MKA, both AIM and in Canada. I have been holding since 2021 and significantly increased my holding last year on the belief that Trump would be the next US president and do what he is doing now

China's production costs will also increase as the country cannot permanently sustain the current environmental disaster that its low cost but dirty/polluting process drives.

Also major users (countries) of rear earth magnets have understood that there procurement decision cannot solely be based on where it is cheapest, especially since the production is being subsidized in various forms, including total disrespect for environmental disasters. The magnets are not a huge part of the production cost of an end product and users can pay a non subsidised price with is say xx% higher than today's prices in order to break the stranglehold which China now has and has been created by the total profit maximising policies of the past, which killed non Chinese alternatives. Trump for one understands this very well

Maybe he works for the Chinese who want this to fail. They wont like the incressing sp which gives MKA the option to raise funds and accelerate recycling roll out. Be sure China does not want to lose dominance over Magnet production, but with trump in the driving seat in the US, who will do everything to achieve just that. I will enjoy the ride as it unfolds

I am not a trader but long term holder, looking to realise the full potential of this business. What I see very encouraging is that after doubling of the sp we end up today with a retrace of 10% and a good recovery in price this afternoon.

The high volume can only mean allot of profits have been taken, with new money coming in and forming a new base for future gains on strong expected news-flow and developments of the business

Https://www.japantimes.co.jp/news/2025/07/03/japan/japan-deep-sea-mineral-extraction/

Mining the seabed is a sign of desperation. In an environmentally sensitive country I don't see commercial mining of the seabed ever taking off. Then there is the cost.

Hypromag Japan with its very low environmental footprint and high margins is a much better option for the country.

Https://www.ft.com/content/78d27637-5e9a-4a65-b704-ba078e52e215

The potential here just cannot be quantified at the moment

Mining and separation

There now has a $400 million valuation but there is more potential growth

- In Malawi, in addition to the main Songwe Hill resource there is also the Nkalonje Hill resource which is only 14km away. Mkango has only done geophysical surveys and surface sampling. Drilling program is needed at Nkalonje with the exploration upside being that this forms a satellite deposit that could feed highest grade material into Songwe and therefore extend the mine life and further improve project economics

- The US remains heavily dependent on China for separation and is strongly supporting the development of the critical mineral value chain. I see it a logical step that in addition to Pulawy separation plant, a US separation plant is also developed, processing rear earth mineral concentrate sourced from U rear earth mines.

Recycling

- The UK facilities are starting up and will ramp up, be extended up to 700tpa

- Germany start up will soon follow, with this being a larger magnet market than the UK. Further supply into Europe from Germany can significantly drive the scaling up of the Europe focused business

- US recycling will be moving ahead with subsidised financing and plenty of expansion potential

- I cannot see that Japan will not adopt the technology, with this being the 2nd largest market behind China. The scope is bigger that the USA

- There are multiple other key regions globally for expansion including India and South Korea

With the drive to get independence from China, the timing for Mkango business development is exceptional. I a targeting a long term hold with £2 first exit point

He also likes 2 weeks, ha ha ha

Ha ha yes agreed

I believe this will be part of how the USD 400 million valuation has been developed and there will likely be allot of information in the listing documents over the next months

The key milestones for the listing

1. EU strategic project status which we have

2. Fully updated bankable feasibility studies with revenues supported by off take arrangements in place

3. Subsidised financing expressions of interest for both Malawi (African development bank or similar) as well as Poland (possibly KUKE)

There is a fair amount of work still to be done in the period up to the listing, but the direction is clear and everyone wants independence from China

I expect end of Q4 and we are beginning Q3 so could be just less than 6 months. Anyhow it is for me all coming very soon but just don't want to fuel expectations that tomorrow MKA will have USD 400 million market value. There is still work to be done