Read-across from Talaxis investment suggests Mkango Ltd is trading at a significant discount, says SP Angel: Mkango's rare earths projects have already attracted significant interest, and cash
According to the US Geological Survey, China accounts for around 79% of the world’s rare earth production. That’s as far as can be ascertained, because much of Chinese production is opaque and hard to quantify.
Either way, such an imbalance in global production at a time when trade war rhetoric against the Chinese is rapidly being converted into hard tariffs, is likely to favour significant rare earths operations in jurisdictions outside of China.
READ:�Mkango Resources receives more encouraging assays from drilling at Songwe Hill
Mkango Resources Ltd (LON:MKA) has one such project, the Songwe Hill operation in Malawi. This project is moving rapidly towards a production decision, helped along by a significant investment at the project level from major commodities trader Talaxis.
This Talaxis investment is interesting in several ways. First, there’s every likelihood that Talaxis will follow its money when a production decision is made, meaning that for Mkango, financing Songwe Hill could be pretty straightforward.
According to the US Geological Survey, China accounts for around 79% of the world’s rare earth production. That’s as far as can be ascertained, because much of Chinese production is opaque and hard to quantify.
Either way, such an imbalance in global production at a time when trade war rhetoric against the Chinese is rapidly being converted into hard tariffs, is likely to favour significant rare earths operations in jurisdictions outside of China.
READ:�Mkango Resources receives more encouraging assays from drilling at Songwe Hill
Mkango Resources Ltd (LON:MKA) has one such project, the Songwe Hill operation in Malawi. This project is moving rapidly towards a production decision, helped along by a significant investment at the project level from major commodities trader Talaxis.
This Talaxis investment is interesting in several ways. First, there’s every likelihood that Talaxis will follow its money when a production decision is made, meaning that for Mkango, financing Songwe Hill could be pretty straightforward.
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