Mkango Resources (MKA) Q2 2024 earnings summary

Executive summary

• Advanced recycling interests in the UK and Germany toward commercial production in 2025 via HyProMag, with feasibility study for HyProMag USA ongoing and strategic options under review for Songwe Hill and Pulawy projects.

• Commissioned a pilot plant in the UK producing separated magnet rare earths through a long-loop recycling process.

• Signed a non-binding MoU with Envipro Holdings to collaborate on rare earth magnet recycling in Japan and the UK.

• Undertook significant cost-cutting, focusing on recycling, resulting in a 35% reduction in ongoing operating costs.

Financial highlights

• Loss after tax for Q2 2024 was US$659,320, down from US$1,085,092 in Q2 2023.

• Raised £750,000 (US$955,000) in April 2024, including a £150,000 (US$191,000) investment by the CEO.

Outlook and guidance

• HyProMag USA feasibility study completion targeted by end of 2024, with a production decision expected in H1 2025 and initial revenue in H2 2026.

• Full commissioning of the UK HPMS recycling plant and initial commercial sales of NdFeB targeted for Q1 2025.

• First commercial production in Germany targeted for 2025.