logo-loader
viewMkango Resources Ltd

Making It to the Final Five

+ Recovering Rare Earth prices provided a fertile environment for reconsidering the sector’s attractions
+ Talaxis/Noble entered into the share register with a small financing in October and has since escalated involvement with a substantial stake being taken at the project level in exchange for funding the BFS and arranging project funding for the build
+ The travails of Peak Resources now place Mkango as the most advanced African project of substance
+ Mkango has one of the strongest group of institutional/core shareholders that we have seen in a REE explorer
+ BFS in the works with “right-sizing” options under active consideration
+ Deal with Metalysis provides first sign of vertical integration (and the search for higher margins) while creating a potential offtake client
+ The potential is there for the REE space to achieve a significant rerating once the investor universe realizes that the sub-space is joined at the hip with the EV revolution

Executive summary

- The capex is targeted at slightly over $200mn which will require significant funding being arranged by Talaxis/Noble
- Noble been experiencing travails in the marketplace since 2015 as a legacy of the long commodity slump
- The Rare Earth space is not out of the woods yet and is only as fragile, or as strong, as the reactivation in the broader mining markets

Quick facts: Mkango Resources Ltd

Price: 7.6 GBX

LSE:MKA
Market: LSE
Market Cap: £10.11 m
Follow

What's in the report?

Financial results and forecasts
Growth drivers
Management
Market conditions
Milestones & inflection points

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Mkango Resources Ltd named herein, including the promotion by the Company of Mkango Resources Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

LEGAL NOTICE – IMPORTANT – PLEASE READ:

Proactive Research is a trading name of Proactive Investors Limited which is regulated and authorised by the Financial Conduct Authority (FCA) under firm registration...

FOR OUR FULL DISCLAIMER CLICK HERE

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

Watch

Mkango Resources signs definitive agreement to develop Songwe Hill licence

Will Dawes, chief executive of Mkango Resources Ltd (LON:MKA), tells Proactive Investors they've signed off their agreement with trading group Noble to develop the Songwe Hill licence in Malawi. Talaxis, a subsidiary of Noble, will acquire up to 75% of Lancaster Exploration, which holds...

on 05/18/2018

33 min read