Member Info for velcrofajita

Have not has my eye operations yet, pre-op session will be in 24 April after which I will have a date for the first eye. I have been avoiding reading/posting on the boards (unless there is something significant) .

Good that you have taken significantly more shares in this. I'm in two minds as would have to sell out of Iluka which I got a good price and the completion of the their REE seperation plant in Australia is going well with big grant funding

Yes tax is a minefield. I would not expect significant tax in the first years although I am for sure not familiar with the Malawi tax loss and loan interest tax deduction rules.

Hey esduk, great news today on the Kasiya DFS. The icing on the cake is still to come, HREE cash stream at minimal additional cost. Including this we can expect a good uplift to both NPV and IRR. I wont be surprised if we get to 25%+ IRR post tax which is really great and very interesting for potential project financing.

I expect a strong recovery in the sp over the next few weeks. Price has been knocked down by delays, Iran war and then discounted placing.

The delays are frustrating but not unusual both in mining and industrial technology. We now have visibility in Germany start up, future scale up plans. The SPAC process is moving forward and we will likely have a Nasdaq listed subsidiary before the end of this quarter

Iran war is in ceasefire with the possibility of parting peace. Whatever comes, one thing is for sure, it is very clear to all that diversification away from fossil fuels needs to move on and this means EV, wind parks, charging infrastructure. This builds on demand for REE

The placing is fine, now we focus on how the funds will be used. Capacity scale up is excellent long term while a potential German acquisition brings an X factor.

Hello to all, have not been active here for a while. I am struggling with rapidly impaired and will over the course of the next weeks need to undergo cataract surgery as well as other treatments. Anyhow for now things working on dark mode on the laptop so I can communicate

Cap raise at 33p is very frustrating and with better planning could have been done when the price was trading between 50-55p and maybe we could have had a discounted raise price at 40p. I am however looking past the raise at this price where the compelling investment thesis is stll in place and we have had some visibility on both MKAR NPV as well as now on revenue-cost on recycling facilities in Uk and Germany, which give an excellent gross margin

Part of the proceeds of the cap raise are going towards capacity increases in both UK and more significantly Germany so not a waste of funds and value generating in the longer term. Yes would have been nice if this could have been funded from the SPAC process but this has been our assumption and nothing MKA alluded to. Now we also have on the table a possible acquisition in Germany. My thoughts go to the company GKN Powder Metallurgy) that stopped its magnet production facility in Germany on cost competition grounds, after spending Euro 20 million to date to establish a production facility which still needed to be commercially scaled. This could be an ideal second location in Germany where HPMS recycling is introduced

So yes a little annoyed with the dilution at 33p, but that is the way it is with small companies in development. There are allot of positive factors in motion and as these start to crystalise, investors and the sp will put the 33p raise behind them

Best regards to all

Esduk, exactly,US$ 2 billion combined NPV. Maybe at this stage realise 30% of that in market value so i'm thinking US$ 600 million for MKAR valuation post listing with allot of upside as the projects develop through construction, with possibly renewed exploration/drilling at Songwe and Nkalonje. Allot depends also on situation in the gulf.

Then there is Hypromag USA as well as RoW (currently UK and Germany). This is where the step by step next NPV growth will come and give a very compelling NPV/market cap for MKA

Sorry i meant to write in comparison Gold, Copper other commodity projects use 6%. Not sure how that was deleted oyt

I am very pleased with the NPV/IRR for the Songwe mine but particularly about the Pulawy separation plant. IRR above 20% is strong, with Pulawy exceptional. Pulawy fits excactly where the REE problem is, not with mining but with processing

Having said the above I am focusing my thoughts on the NPV values;

1. As has already been said here, any grants that MKAR gets for Pulawy will reduce the up front capex outflows and bolster both NPV and IRR. Songwe is unlikely to get EU grants but there may well be guarantees to the lender which will reduce finance costs

2. In addition to the matter of Pulawy grants, the combined NPV is derived from using a 10% discount rate. In comparison many gold, copper and other commodity projects. The 10% discount factor is typical for REE with the past cyclical risk and dominance by China, but has strong drivers for reduction including when funding is secured but more so also by new strategic focus of REE which should result in longer term offtake agreements at prices that give less risk to the REE projects. Pulawy is in the EU so for sure Malawi risk is not fully relevant even though a part of the MREC will be sourced from there. The average actual after tax WACC for financing I see will be lower than 10% and therefore gives further enterprise value upside as the projects progress

I am not following price movements at the moment as we have a risk off environment driven by the developments in Iran and the oil/gas supply crisis. in time this will abate and we can then again focus on the key fundamentals of MKA

Hi Esduk

I should have been clearer, in terms of resource the next big news for me in relation to resource is the Monazite. I agree that the DFS will be released without the Monazite and very likely we will get a type of optimised DFS later with the Monazite included.

On the 100 year mine life, total rutile resource, of course you are correct that production scale has to match the size and growth of the rutile market, I am thinking very long term here, with the new project at the Sierra leone mine probably giving 15-20 year life, but after this very likely 150tpa+ is out of te market. This is where Kasiya will start to use some of that much larger asset base. This will not do much to near term share price but this long mine life is key for any large interested buyer such as Rio or project partner

Today's news is absolutely exceptional and in reality such resource upgrades will be a continual factor as the mine is developed and during its production. The resource is huge, much larger than what the DFS will be based on. We can be sure that graphite resource is now also larger

Next key news for me is the Monazite resource estimate. We now the HREE / magneetic REE content is exceptional, but key is how much is there.

I consider myself lucky to have made a £30k top up yesterday afternoon

Kat the 87p was momentary and unsustainable. I see a base range 50-55p with some spikes above and falls below.

Drops of 50% or more in mining / resources junior space is very common so one has to time entry points. Long term I do see £2 and above but it will take time with key triggers. Along the way some large pull backs received in my investment thesis

Kat,

For me your views and trading strategy are ok. I see huge opportunity and upside on MKA but for sure Rome was not built in a day. This will trade up abd down until we get definitive listing date and Hypromag USA inv decision. At that point there should be a very strong push up

Kat, I’m waiting for an answer.

Kat, so where you got your buy limit set. Let me guess 45p and exit 50p ?

Very active today as is the case on down days

Investment view, nothing has changed today. I more to the pint Iran war just adds strength to REE being very strategic

Timelines missed yes but this is rather Normal in the mining space where I am most active.

IC, I would see the DFS numbers, including the Monazite will be significantly higher than the optimised PFS. how much the Monazite will add I do not know but with high HREE and magnetic material content things looking very positive. Also I would expect significant operational improvements driven by the cooperation with Rio Tinto

Would not be surprised that NPV as per DFS is more than 5x of current market cap.

Jimzi, to be honest I like this period of consolidation. The number of holders from the sub 10p days will have been reduced and a shareholder base built within the 50-60p range. The speculation/hot air is now out.

With key news coming in, (which although frustratingly delayed, will come in), the sp should again start a strong upward momentum

Esduk, feelings are mutual, great to have you here as well to debate views and possible outcomes. Fully agree that I don't see Kasiya product going to Richards Bay and it was rather the management angle that I was looking at. With a mining major such as Rio Tinto it is just as much about where management time is allocated as its is for capital.

Of course a new CEO will review everything before developing a strategy. Investing in Richards Bay and existing from Kasiya just does not make sense. As you refer to, yes it could be that they would be looking for a strategic partner to take a share in the project directly. We will know soon enouph

The situation with Iran again focuses the mind on a key fact. Modern warfare is about air superiority, precision missiles and drones. No rare earths means no fighter jets, no precision missiles and no drones. This is a huge tailwind for NdPr, terbium, Dysprosium and Ytrium.

Trump has asked for a meeting with US defence companies, likely to push for an increased manufacturing rate. Availability of REE is likely to be on the table

Https://energycapitalpower.com/rio-tinto-gives-the-green-light-to-rbms-r8-5bn-zulti-south-project/

Rio Tinto very relevant news in South Africa

Esduk, on quality of Titanium I am for sure referring to the market/retail investors not understanding the significance and did not price it in when announced. The sp only moved with the Monazite news.

I basically sold out of Nvidia, Microsoft, IBM and Alibaba in order to buy my 20% of portfolio stake in this. With the rise of about 25% since my purchase this is probably going to about 25% of portfolio

The big question on this one is if Rio Tinto will buy out or not. The key question for them is not the quality of SVML but if they want to allocate capital and more importantly time to Malawi. They do have titanium dioxide and rutile in South Africa at Richards Bay and have today announced a restart of mining there. SVML seems to fit into that and can be managed from a South Africa headquarter.