Mkango Resources Limited has published its Q3 2025 results, reporting a cash balance of US$2 million as of 30 September, supported by a £3 million equity raise completed in October.
The company marked a key operational milestone during the quarter with first production and commercial sales of recycled neodymium-iron-boron (NdFeB) alloy powder from its UK facility. A phased expansion is under way, with capacity expected to scale to 1,000 tonnes per annum.
Mkango also highlighted continued development across its broader magnet recycling and manufacturing portfolio. Commissioning of its German plant remains on track for late 2025, while its US facility is progressing toward a mid-2027 start-up.
In parallel, the company is advancing the Songwe Hill rare earths project in Malawi. Mkango has secured US$4.6 million in funding from the U.S. International Development Finance Corporation to support project development and resource expansion.
The group is also moving forward with its planned Nasdaq listing through a SPAC transaction valued at approximately US$400 million.
Mkango said the combination of commercial production, expanding recycling infrastructure, and strategic project financing positions it well to capitalise on growing Western demand for secure supplies of rare earth materials.
HyProMag UK
In partnership with the University of Birmingham’s Magnetic Materials Group (MMG), HyProMag UK is developing the first commercial-scale rare earth magnet recycling and manufacturing operation in the UK with commissioning of the plant at the MMG site nearing completion.
The Hydrogen Processing of Magnet Scrap (“HPMS”) vessel has been installed and commissioned. Powder processing systems, including purification, jet milling and blending equipment, are now operational. Installation of commercial sintering capability is complete, with the first NdFeB magnet blocks produced post quarter end and now undergoing characterisation.
Supply and offtake agreements have been signed and first NdFeB alloy powder has been sold for long-loop chemical processing, representing the first commercial sales from UK operations, with associated revenue to be reported in the year end results.
The Company is evaluating a phased expansion starting next year, initially to 100-350 tpa of NdFeB alloys and magnets and subsequently to 1,000 tpa.
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Figure 1: HPMS vessel – Tyseley Energy Park, Birmingham, UK |
Figure 2: Powder processing plant – Tyseley Energy Park, Birmingham, UK |
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Figure 3: 50kg and 400kg sintering furnaces at Tyseley Energy Park, Birmingham, UK |
Figure 4: First magnet blocks post sintering at Tyseley Energy Park, Birmingham, UK |
HyProMag Germany
HyProMag Germany is progressing toward establishing a European manufacturing hub for recycled rare earth magnets.
Installation of the HPMS vessel, sieve, blender and jet mill is complete and ready for commissioning. A transverse alignment press is on site, and sintering furnaces are due to arrive in December 2025. Completion and certification of the axial alignment press are in the final stages, with factory acceptance testing scheduled for December 2025. Orders for finishing equipment and expanded sintering capacity will be placed before year-end.
Commissioning of both the HPMS vessel and jet mill is targeted by the end of 2025, with first production expected in Q1 2026, subject to permitting.
HyProMag Germany is evaluating expansion options to 750 tonnes per year from the currently planned 100-350 tpa – an updated 3D fly through for the conceptual design can be accessed via the following link: https://youtu.be/HFAY3YImPg0
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Figure 5: HyProMag Germany premises – Pforzheim |
Figure 6: HyProMag Germany – layout |
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Figure 7: HyProMag Germany – installed jet mill |
Figure 8: HyProMag Germany – installed HPMS vessel |
HyProMag USA
During the third quarter, detailed engineering design continued and is now more than 25% complete, on time and within budget and the scope of the Texas hub has been extended to include three HPMS vessels in the recycling plant compared to two included in the feasibility study. The third HPMS vessel will increase production of associated NdFeB co-products from 291 tpa to approximately 750 tpa.
HyProMag USA is evaluating the further expansion of the project through the placement of two additional HPMS recycling and magnet manufacturing facilities in South Carolina and Nevada respectively to triple the capacity of the project. HyProMag USA has also commenced investigating the addition of a long loop chemical processing plant which will be complementary to the short loop process. The NTP for the project is expected in Q1 2026 with commissioning targeted for mid-2027.
HyProMag USA entered into a feedstock supply and pre-processing site share agreement with global electronics recycling company ILS. In terms of the agreement, the project’s pre-processing facilities will be based on the ILS sites in South Carolina and Nevada and ILS will provide feedstock to HyProMag USA. Stockpiling of end-of-life electronic scrap has commenced and to date, ILS has engaged with several suppliers to establish consistent feed of electronic scrap.
HyProMag USA has also purchased three Inserma and PCB machines for each of the Texas, South Carolina and Nevada sites for pre-processing of the end-of-life electronic scrap material. Delivery of these machines is expected prior to year-end and is subsequently expected to accelerate the stockpiling by ILS.
The Project has received a Make More in America (MMIA) domestic finance letter of interest (“LOI”) from the U.S. Export-Import (“EXIM”) Bank for its first integrated rare earth recycling and magnet-making facility in Dallas-Fort Worth, Texas. In terms of the letter, EXIM may be able to consider potential financing of up to $92 million of the project’s costs with a repayment tenor of 10 years.
In addition to the EXIM LOI, discussions with two commercial banks in relation to potential project finance for the project are progressing well and entering the due diligence phase, whilst discussions with several US federal and state government bodies to support funding and other incentive opportunities remain ongoing.
To view the Financial Statements, please click here http://www.rns-pdf.londonstockexchange.com/rns/6369J_1-2025-11-30.pdf
To view the Management Discussion and Analysis, please click here: http://www.rns-pdf.londonstockexchange.com/rns/6369J_2-2025-11-30.pdf
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
Canada: +1 403 444 5979
