Junior explorer, Mkango Resources, started trading yesterday on the Alternative Investment Market (AIM) of the London Stock Exchange. Mkango Resources’ flagship development project is Songwe Hill Rare Earths Project in Phalombe, Malawi. The company is already listed on the Toronto Stock Exchange’s Venture Exchange. Mkango is the first company with only a Malawi focus to be listed on the AIM.
William Dawes, CEO of Mkango explained,
We are very pleased to announce the successful AIM listing and placing, which together with our listing on TSX-V, provides the company with a strong platform moving forward. Over the last five years, Mkango has advanced the Songwe Hill rare earth project in Malawi from an early stage exploration target to an updated pre-feasibility in November 2015 (NPV10 US$345 million), and is now one of the very few listed rare earth companies globally with an advanced stage rare earth project, and the only focused rare earth company listed on the London Stock Exchange.”
Proactive Investors today reported that Mkango’s share price was up 22% to 4.88p,
Joined Aim yesterday having raised £1mln, which is not bad for a rare earth junior still very much in the development stage.
Mkango announced results of an updated pre-feasbility study in November 2015 including an after-tax net present value of USD 345 million and an internal rate of return at 37%. The mine is expected to produce 2,841 tonnes of rare earths oxide over the course of 18 years.
Dawes added that
Based on extensive benchmarking and industry analysis, I am confident that Mkango has the potential to be a future low capex, lowest cost quartile, sustainable producer of rare earths, thereby providing a strong foundation for entering into partnerships, marketing and offtake arrangements.
Mkango is predicting an upturn in prices for rare earths and for the three most valuable minerals to be produced (neodymium (53%); dysprosium (12%); and praseodymium (14%)).
Approximately 50% of global rare earth demand is attributable to clean technologies so we are well positioned to benefit from global growth in this sector, for example hybrid and electric vehicles, wind power and catalytic convertors. Furthermore, in terms of other rare earth applications, we anticipate China, India and emerging economies to fuel a long-term surge in consumer technology demand growth.
Further information is available in Mkango’s Pre-Feasibility Study that can be downloaded from SEDAR.