---
title: "Cavendish Starts Mkango Magnetic Materials With 110p Target as HyProMag Scales"
publisher: "Share Talk"
author: "sharetalk"
published: "2026-09-29T09:28:45+00:00"
modified: "2026-09-29T09:28:45+00:00"
date: 2026-09-29
canonical: "https://www.share-talk.com/cavendish-starts-mkango-magnetic-materials-with-110p-target-as-hypromag-scales/"
category: "Mining"
categories: ["Mining"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/04/MKA-with-title-4-1.webp?fit=1200%2C675&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Cavendish Starts Mkango Magnetic Materials With 110p Target as HyProMag Scales

**Published:** September 29, 2026
**Author:** sharetalk
**Categories:** Mining
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/04/MKA-with-title-4-1.webp?fit=1200%2C675&quality=80&ssl=1)

---

**Cavendish **has initiated coverage of **Mkango Magnetic Materials** (formerly known as **Mkango Resources Ltd** (AIM: MKA, TSX-V:MKA) with a ‘buy’ rating and a **110p target price**, implying around **166% upside** from the 41.4p share price used in the broker’s 29 September research note.

The broker’s central investment case centres on **HyProMag**, Mkango’s rare-earth magnet recycling business, which uses patented Hydrogen Processing of Magnet Scrap technology to recover reusable alloy powder from end-of-life neodymium-iron-boron magnets.

Cavendish expects Mkango’s **UK and German operations to progress toward commercial-scale production in 2027, while the company’s US joint venture targets** first magnet production in the first half of 2027 and integrated recycling operations from 2028.

The broker forecasts group revenue rising from **$15.5 million in 2027 to $70.5 million in 2028 and $98.3 million in 2029** as production ramps across the recycling platform.

Adjusted EBITDA is forecast to move from a **$2.8 million loss in 2027 to a $27.5 million profit in 2028 and $44.2 million in 2029**.

By 2031, Cavendish estimates the three HyProMag ventures could generate **more than $60 million of annualised EBITDA** at base-case production capacity, based on an assumed margin of around 50%.

The broker expects Mkango to become **free-cash-flow positive in 2028**, following the ramp-up of its European operations.

However, the forecasts assume Mkango secures a further **$20 million, or around £15 million, of funding by the end of 2026**. Cavendish said the capital would be required to support working capital during commercialisation and the proposed acquisition of University of Birmingham-owned equipment and infrastructure at the UK facility.

Cavendish assigns approximately **60p per share to Mkango’s recycling businesses** and a further 49p per share to its proposed interest in **MKAR**, the planned Nasdaq-listed vehicle containing the group’s Malawi and Poland assets.

The broker identified completion of the MKAR transaction, commercial ramp-up in Europe and funding for the US project as important potential catalysts.

For investors, the valuation case therefore depends heavily on **execution and financing**. Cavendish’s forecasts imply a rapid transition from development-stage losses to substantial cash generation, but that requires additional capital, successful commissioning and production growth across several jurisdictions. Rare-earth pricing and the commercial performance of the recycling facilities remain further material uncertainties.

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**Original URL:** https://www.share-talk.com/cavendish-starts-mkango-magnetic-materials-with-110p-target-as-hypromag-scales/
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