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Share Name Share Symbol Market Type Share ISIN Share Description
Mkango Resources Ltd LSE:MKA London Ordinary Share CA60686A4090 CMN SHS NPV (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 15.00 14.50 15.50 15.00 15.00 15.00 104,408 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 3.0 1.2 10.6 32

Mkango Resources Share Discussion Threads

Showing 951 to 974 of 2200 messages
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DateSubjectAuthorDiscuss
17/1/2019
13:29
No probs.

"brutally undervalued"

cf456
17/1/2019
13:28
Thanks for posting!

Summary:

Mkango has been developing the Songwe Hill project since it listed on the TSE Venture Exchange in 2011 via a reverse takeover transaction. Following a 6,852m drill programme, the Company completed a pre-feasibility study (‘PFS’) in late 2014, and an update PFS in late 2015. The base case operation in the PFS assumed an 18 year mine-life that would extract a total of 8.5 Mt of ore at an average grade of 1.62%, which equated to an average of 2,841 tonnes of concentrate pa. The project economics were highly compelling: total initial capex amounted to $216m, a modest amount relative to the project NPV of $345m. The IRR was calculated at 37%. Importantly, only ~27% of the deposit’s total indicated and inferred resource of 31.8 Mt was utilised in the mine plan.

Having examined the drill data in detail, we are confident that the impending resource upgrade will be significant. This in turn will enable the BFS to include a larger portion of the total resource, and consequently generate a larger mine plan with a longer life. This would ultimately translate into a greater project NPV than the $345m calculated by the 2015 updated PFS.

A crucial element of the agreement between Mkango and Talaxis is the option clause. This stipulates that upon completion of the BFS, Talaxis has the option of increasing its stake in Songwe Hill from 49% to 75% by securing all project finance (estimated at $216m in the PFS – or £168m at current exchange rates). Were Talaxis to fund this capex entirely in the form of equity, that would take its total investment in Songwe Hill to £180m. Based on this transaction, that would value Songwe Hill at £240m – and Mkango’s 25% remaining equity stake at £60m, or 53.1p per share using the current issued share capital of 112.9m.

Besides the lofty valuation that it entails, the option agreement offers a further substantial benefit to Mkango and its shareholders. It provides a visible path right through to production, and crucially dispels the necessity for further equity dilution at the PLC level between now and then. This is in our view an enviable position for junior resource investors to be in.

Mkango would have a completely free 25% carry on a REE mine that (using figures from the existing PFS) will be generating – on average across its 18-year mine life – EBITDA of $103m pa on revenues of $162m pa. How would one value a vehicle (namely Mkango) that could enjoy £20m EBITDA pa for almost two decades, commencing at the beginning of 2022? Critically that valuation should be based on Mkango’s existing capital structure, save for outstanding options and warrants that are presently ‘in the money’.

At its current share price of 9.95p, Mkango is valued at only £11.2m. We consider this to be brutally undervalued, in light of the size, quality and strategic importance (both from a commercial and a political sense) of Songwe Hill, and of the valuation attributed to it by the Talaxis deal.

thelung
17/1/2019
12:46
hTTps://gallery.mailchimp.com/d266f47cec87da1170bcd0f35/files/5bf0e4f5-88e8-428a-841e-63d25ffd8bf2/Top_10_Micro_Cap_Picks_Part_I.01.pdf
cf456
14/1/2019
23:30
https://uk.advfn.com/cmn/fbb/thread.php3?id=43717113&from=321
thelung
11/1/2019
12:26
50k at 9.25 bodes well - still think we have another 6 weeks to go before news and a move into double figures, so may get the chance to buy at 8-8.5 within that time
thelung
12/12/2018
14:51
Bought back in after been out for a week or so. Didn't want to miss the chance of mega bucks. GLA
tutthetrader
04/12/2018
14:46
Massively undervalued.
ayesha4
04/12/2018
13:10
hTTps://www.share-talk.com/mkango-resources-ltd-aim-tsxv-mka-q-and-a-session/

Warrant holders now flipping for 15%

thelung
03/12/2018
08:08
It's all there on a plate, fill ya boots if you can..
tutthetrader
29/11/2018
09:00
Ticking bomb...
babajanas
28/11/2018
12:41
All of a sudden this will explode the fundermentals are all there.
tutthetrader
26/11/2018
11:48
Last trade was a buy. My wife just bought them. There will be news out this week. Imo..
tutthetrader
22/11/2018
22:02
I smell a breakout....unless senor seller persists. Got to be warrants.
thelung
14/11/2018
12:31
9.6 paid for 50,000
thelung
07/11/2018
08:57
In the lift marra! Going up....
marbill73
07/11/2018
07:11
Excellent another set of great results.Onwards and upwards... GLA...
tutthetrader
28/10/2018
23:40
hTTps://investingnews.com/daily/resource-investing/critical-metals-investing/rare-earth-investing/geomega-kiril-mugerman-invest-rare-earths/
thelung
15/10/2018
09:04
There making us wait for this next batch of results. Let's hope they company transfomational. GLA
tutthetrader
07/10/2018
18:54
20/9

The next batch of results from a further eight drill holes will be announced in coming weeks.

thelung
06/10/2018
08:22
Have noticed a ratchet up in Rare Earth concerns in US media.
p1nkfish
21/9/2018
10:45
Expecting some larger trades to go through at end of day
thelung
20/9/2018
06:30
Great consistent results. It's a bit leaky though as it's being repeatedly marked down in the afternoon pre RNS, only for it to regain those losses the next day when the RNS are released. Is this some form of strategy to facilitate the ongoing II accumulation?
thelung
14/9/2018
13:39
Actually if you converted the price from Canadian $ to GBP they are more or less the same. None event anyway as we are taking off, always helps when someone that runs a $15B Emerging market fund buys in of course.
scotty666
14/9/2018
13:39
Up we go...
tutthetrader
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