Mkango Resources Corporate Update September 2024 – Webinar and live Q&A session.

About This Webinar

Join William Dawes, CEO and co-founder, and Alex Lemon, President and co-founder of Mkango Resources, for a corporate update. Following the presentation, there will be a live Q&A session.

Mkango’s corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.

Mkango is targeting near term production of recycled rare earth magnets in 2025 through its interest in HyProMag, with developments underway in UK, Germany and USA, the latter in partnership with CoTec. HyProMag is also evaluating other jurisdictions, and recently launched a collaboration with Envipro on rare earth magnet recycling in Japan.

Mkango also owns the advanced stage Songwe Hill rare earths project and an extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earths separation project in Poland.

Here’s a summary of the key points from the video:

1. Introduction and Recent Milestones:
   • The presentation highlights recent developments, including a signed Mine Development Agreement, a financing round raising $1.25 million, and funding from EIT Raw Materials to kick off optimization processes.
   • They also announced the participation of HyProMag GmbH (Germany) in the Green Project, focusing on innovative technologies for magnet production.
2. Focus on Rare Earths and Sustainability:
   • Mkango aims to become a leader in producing recycled rare earth magnets, alloys, and oxides to meet the increasing demand for electric vehicles, wind turbines, and clean energy technologies.
   • The company targets near-term production of recycled rare earth magnets by 2025, in collaboration with partners in the UK, Germany, USA, and Japan.
3. Project Updates:
   • Updates on the Songwe Hill rare earths project in Malawi, which has moved from exploration to advanced stages, including a feasibility study completed in July 2022.
   • Information on their projects in Poland (Pulawy Rare Earth Separation Project) and other exploration activities involving rare earths, uranium, tantalum, niobium, rutile, nickel, and cobalt.
4. Technology and Strategic Partnerships:
   • The introduction of a new technology called “near Leach” developed by HyProMag GmbH for magnet production.
   • An agreement with Insura for advancements in recycling technologies, aiming to access new scrap supply chains and enhance their competitive edge.

Key Highlights from the Q&A Session:

1. Foreign Currency Accounts for Project Delivery:
   • The company is permitted to open and maintain foreign currency accounts outside Malawi to meet obligations for project lenders, ensuring financial flexibility and stability.
2. Project Timeline and Cost Optimization:
   • Subject to financing, the front-end engineering and design (FEED) and optimization for the Songwe Hill project will commence. The optimization phase aims to reduce operating costs, particularly in reagent usage, driven by updated economic conditions since the feasibility study in July 2022.
3. Tax Breaks and Incentives:
   • Mkango will be exempt from several duties and taxes on imports, exports, and certain services. There is a 10-year stability period for these exemptions, supporting financial predictability and project viability.
4. Strategic Review and Shareholder Engagement:
   • Mkango is actively undergoing a strategic review to unlock further value for shareholders, considering that the current asset values are not fully reflected in the share price. This includes discussions with investors and government bodies across Europe and North America.
5. Future Developments and Market Positioning:
   • Hypermag GmbH in Germany and Hypermag in the USA are on track for magnet production, with infrastructure development and equipment commissioning underway.
   • Expansion into other countries is planned, with three more potential sites considered by 2028.
6. Long Loop Project Revenues:
   • Currently, Mkango is completing optimization and scoping studies for the long-loop recycling project, which will guide the strategy and timing for potential revenues. Collaboration with strategic investors is being considered for this initiative.
7. Listing on the Malawian Stock Exchange:
   • Lancaster Exploration, Mkango’s local entity, will be listed on the Malawian Stock Exchange, allowing local and regional institutions and individuals to invest. This is expected to bring significant benefits to the project by broadening the investor base.
8. Interest in Strategic Partnerships and Offtake Agreements:
   • Mkango has applied for Critical Raw Materials Act (CRMA) strategic project funding for Hypermag, Songwe Hill, and the Pulawy project. They are also engaging with multiple parties to secure offtake agreements to underpin the scale-up of operations.
9. Challenges in Magnet Coating and Supply Chain:
   • Mkango is working on resolving challenges related to finished magnet coatings, currently outsourcing these processes and developing local expertise at the University of Birmingham.
10. Impact of Chinese Rare Earth Regulations:
    • Anticipation of Chinese regulations on rare earths is seen as a positive development, potentially increasing rare earth prices and making Mkango’s recycled, low-carbon footprint products more attractive.

Conclusion:

The webinar provided a comprehensive update on Mkango Resources’ strategic positioning, project developments, and future plans, focusing on recycling, sustainable production, and strengthening investor relations. The company’s diversified strategy across mining, recycling, and manufacturing aims to capitalize on the growing demand for rare earth elements while maintaining a strong commitment to sustainable practices and local engagement.