What Mkango Wrong?
‘The Mkango Show’ recently exposed HERE takes another turn for the worse. Today we tell you exactly what Mkango Resources: (London: MKA) don’t seem to be telling UK Investors in any great detail. It’s also what they failed to tell our Canadian cousins/investors over on the TSX-V market, for 6 years.
A separation plant to process the REM/REO’s costs circa… Wait for it… wait for it… $800,000,000. Yes that’s the cost. Which has been confirmed to me by an industry expert. Of course the hoards of pumpers & dumpers currently assisting with the ramp seem not to be cognisant with the costings of even the Companies own PRE-feasibility study updated in November 2015. You’ll note the emphasis on ‘PRE’. The costings are grossly under budgeted. Mkango state that the capex required is $216,000,000 yes that’s correct Two Hundred and Sixteen Million Dollars. A hefty chunk of change by any standard and a sum of money the Company simply does not have and never will.
I’ve spoken to numerous sources over a considerable period of time and what they are saying is this; “The Pre-Feasibility Study assumes an additional cost of US$10.0 per kg REO to account for the cost or implied discount associated with toll separation or the sale of a mixed chemical concentrate. The problem with REs is always the processing. The mixed concentrate has pretty much no value at all these days. And there isn’t a developed market for people to supply concentrate to one of the established separators. China’s about the only place you could possibly find spare capacity. And I really, really, doubt that you’d get away with $10 per kg”.
It’s more likely that you’d get paid out on the major components (say, Nd, Pr, Dy) and nothing on the others.
In general terms what I’m hearing is that “a small scale concentrate producer will never really have a chance. The existence of Lynas means that the outside China market is reasonably supplied”.
The real truth on the supposed two Japanese companies that were involved with the licences in 1980 isn’t what the Company are trying to infer. JICA and MMAJ. JICA is the JAPAN INTERNATIONAL COOPERATION AGENCY JICA is a government agency mandated to implement technical cooperation. It also provides technical support to grant aid and bilateral loans through the conduct of technical feasibility studies for poor countries. It isn’t a mining company. MMJA is the METAL MINING AGENCY OF JAPAN. Again it isn’t a mining company. It’s an agency formed in 1963 to help and fund development overseas in poor countries. And the stone cold fact is that both of these organisations didn’t see any value in the MKA licences. They BOTH walked. So for MKA to infer that these ‘Mining Companies’ were all over Songwe Hill and such is basically a slam dunk lie.
Investors may want to start to ask some pertinent questions. One of which is this. After 6 years and $13, 000,000 of spending (Most of it on Director fees & expenses) why has no company come in on a farm-in or partnership deal? The answer to that question is thus. The REE market is at an all time low and no one can compete with the Chinese. In 2010 China controlled 97% of the REE market. Currently about 90% of China’s rare earth producers are operating at a loss as prices for the elements — used in high-tech sectors — continue to drop due to overcapacity and illegal mining. Investment confidence has been badly hit by the poor performances of the two major producers outside China — Molycorp (NYSE:MCP-A) who entered chapter 11 Bankruptcy and Lynas Corp (ASX:LYC). Canadian rare earth companies have also shed nearly all of their value in the last few years. Shares of Avalon Rare Metals (TSE:AVL) were down 96% from their 2011 high, while Quest Rare Minerals’ (TSE:QRM) stocks have dropped about the same, since March 2012. But not too worry none of this effects Mkango because it will never ever produce one ounce of any REM other than ‘Fantasmium’ an element so rare it only exists in the droppings of Unicorns….. I do believe that several ‘Unicorns’ were spotted on top of Songwe Hill, Malawi last week grazing on rare earth grasses while depositing their ‘Fantasmium’.
‘Dubious’ Dziubinski
It really is a case of Jackanory from the likes of the chief bullshitter and flipper of stock Adam Dziubinski, sole owner and trader of ‘Dubious’ Jub Capital heavily involved with the AIM IPO of MKA. Dziubinski’s Jub Capital are currently flipping MKA stock, in the exact same way they did with Sula Iron & (no) Gold. Another point worth looking at is who is behind the Mkango twitter feed, yes you’ve guessed it it’s ‘Dubious’ Dziubinski. Who has a shit-load of stock that’s held in various guises via different Jub Cap subsidiaries, which is why and how they get around the 3% disclosure rules.
Mkango are a lifestyle company. They were a lifestyle company on the Canadian market for 6yrs and they are a lifestyle company on the London AIM. Cash is fast being gobbled up. Their value is cash on hand approx.’ £500K and fast evaporating, with a shell listing value, (their licences are worthless) lets be generous and say another £500K. That’s circa 1 shiny new pence piece and as the months progress the cash decreases. So their real value goes sub 1p. Do not be suckered by the shite coming out of their twitter feed about enough money to run the company for 18 months. This is total ‘Fantasmium’. Only a halfwit would believe that they will not place for a year and a half. They need more cash and will dilute and place at every opportunity once their Nomad gives them the all clear i.e. Our fees are overdue. lol!
Think of this folks;
The Alternative Investment Market is awash with lifestyle companies such as Mkango. These company’s’ are re-formed basically from other failed company’s’ to ‘mine’ investors of their cash and keep the Directors in a lifestyle they’ve become accustomed too. i.e. Fat director fees, share options, warrants, consultancy fees, expenses etc. A lifestyle company can be formed in any sector.
What they need is a good story to promote to gullible retail investors.
Pick up piss poor uneconomic, failed assets/licences for peanuts, usually ones that have been kicking around for years most often in oil/gas/mining in countries where there’s very little chance of investor oversight, such as Somalia, Malawi, Sierra Leone etc. Always countries that have poor infrastructure and are difficult to not only travel too, but travel within. Then run promotes promising riches beyond dreams etc. Sound familiar? The one I’m currently writing about was basically bankrupt on the Canadian TSX Venture market after raising over c$15,000,000 over 6 years. They have now recently got a listing on the London AIM as they re-spin out what they said and did in Canada over 6/7 years.
Of course there’s never any real progress other than airborne gravity surveys, pre-feasibility studies or new fangled cost cutting ways of making sulphuric acid and by Jove selling the gypsum by-product no less to Malawi, how lucky is that? Wow! Even reading their guff the words ‘Assumes and Assumptions” are littered through-out their spin. It’s all done on paper. Basically what I call a ‘Paper Mine’ or a ‘Paper Company’. They get their share-price up by what is known as ‘Ramping’. Usually paid for articles, presentations and broker/analyst notes. They enlist retail investors on twitter and financial chat sites who are briefed ‘Off the record’ these people then in turn help to promote the company and when the share-price rises the company place stock into the rises and raise more capital to the detriment of their share holder base. Mkango are trying to get their sp to over 6p, so that warrant holders can convert. It’s worth 1p!
The end result is always the same; tens of millions of dollars later, nothing ever happens or progress’s and gullible investors are left with ‘confetti’ i.e. worthless stock. That is what is going on here at Mkango Resources and as sure as night follows day those running and involved at the corporate level such as ‘Dubious’ Dziubinski make the money.
Take heed. Do not get caught holding this POS. And remember the quality of the low life’s pumping and dumping it. As sure as night follows day there will be placings a plenty.
As they say in deepest darkest Africa; (Best African Voice) “What M-Kan-Go wrong? Ho! Ho! Ho!
Viva
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