Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I thought the BFS was done? Is that not part of the DFS? Grim waiting here… BRICS making me nervous.
BFS = DFS = BFS - it was completed last Summer.
https://www.mining.com/mkangos-dfs-indicates-us559m-post-tax-npv-for-songwe-hill-rare-earth-project/
Cheers Bonker. That’s what I thought, but it says bfs in progress on the investor page.
Morning - Neodymium now an impressive +10.8% for the month - I wonder what/who is driving that ...
Oh, that'll be the Gov of Malawi :))
Neo rising nicely. Days seem like weeks with this company. "A watched pot never boils" as they say.
Hopefully September is the month.
Neodymium makes up 25% of the product from Songwe but c65% of the revenue with a DFS Neodymium price of around 3x the current price which is why we're at 10p of course but it also means that significant rises in the Neodymium price are very relevant here ...
More importantly NDPR makes up a huge amount of our recycling production, NdFeB magnets
100t/pa just got a lot more expensive
I know in a way it is part of the plan in as much as the recycled magnets can and probably will for some products use primarily sourced as in mined material as well as recycled but the real value as well as the reccycling would surely be Mine to Magnet... As in the idea of Mkango becoming a full-on magnet manufacturer using its own feed materials... It's easy to imagine such a factory right next to Pulawy ... if everything is pulled off of course which till that MDA drops and the financing comes in remains an if
Actually I take that back its not 'more important' than 2/3 of our entire songwe project, but in terms of NT revenue and expansion to US, very important.
We are significantly tied to NdPr pricing - although historically it traded around 400K Yuan or below, so you have to be happy with the current levels (offsets a huge amount of inflation)
Agree crumbs, and I think its very feasible we have a magnet production facility in Texas once we prove commercial NDPR in the UK and expand to the US
I see that as the real money maker ... and Hypromag already has the manufacturer know-how and indeed that bit of the plant recently arrived on site in Birmingham I wonder if will there be deals with magnet companies like Bunting who just happen to be gold sponsors of REPM 2023
https://www.bunting-berkhamsted.com/bunting-sponsors-repm-2023/
Neodymium hasn't traded @ the long-term price of 400k Yuan since 2020 - the massive rise to 1.5m Yuan 18 months ago is obviously the return-to target and a handy 2.5x of where the current price is - TA guys will get the significance of that and why the price appears to be bottoming/bouncing from 600k Yuan, likewise 10p here.
'Bunting is at the cutting edge of magnet material development and utilisation. As a member of the EU-funded SUSMAGPRO (Sustainable Recovery, Reprocessing and Reuse of Rare Earth Magnets in a European Circular Economy), Bunting is working with European companies to develop a recycling supply chain for rare earth magnets in Europe and to demonstrate the effective reuse of recycled rare earth materials within several industries.
Bunting joins eight other industry leading companies sponsoring the event in a bronze, silver and gold capacity.
Bunting’s Technical Products Manager and the UK Magnetics Society’s Chair, Matthew Swallow is attending the workshop. “The importance of the REPM conference cannot be understated,” explained Matthew. “The rising number of applications will stretch supply and availability, driving vital innovation in recycling and new materials. The presentations in the REPM conference cover such areas of concern, looking at maintaining availability and new magnet technology. As a leading European supplier of magnet materials, we are proud to support the event as a Gold sponsor.”
The recycling is exciting but I'm also keen to see amended (improved) PFS/DFS numbers from the Pulawy separation plant in Poland after the MDA drops.
Agree about the supply chain though - if you can disrupt the supply chain by cutting out multiple middle men to vastly boost profits over a 20-year period then you can imagine some of the "offtake" deals that could be coming our way from fresh REE dirt through to finished magnets for the likes of Unipart/Bentley et al.
BTW Mkango/Hypromag members are doing presentations at that big conference
I know MP metals in the US dream of doing the whole mine-to-magnet approach although there are big question marks over them and their capabilities but to me Mkango looks to have the very real possibility of pulling that off which outside of China will surely be a massive thing to do especially if we are talking heavy RE magnets ... the ones the Millitary NEED
The US military is obviously a big pull but tbh, it's the Unipart collaboration that really made my ears prick up, they're obviously huge but also growing really very nicely themselves, even within the aero industry (Airbus), so that would be an unbelievable partner going forward.