- Mkango Resources Ltd. (MKA) sees results of a definitive feasibility study for the Songwe Hill Rare Earths Project in Malawi
- The study indicated a US$559 million post-tax net present value with an internal rate of return of 31.5 per cent
- It expects a payback period of 2.5 years from full production and post-tax life-of-operations cash flow of $2.1 billion
- Numbers are based on Songwe as a stand-alone project selling mixed rare earth carbonate
- Songwe will be further improved to help lower capital expenditure and operating costs
- Mkango Resources Ltd. (MKA) is down 4.41 per cent trading at $0.32 per share as of 1:40 p.m. ET
Mkango Resources (MKA) has received the results of a definitive feasibility study for the Songwe Hill Rare Earths Project in Malawi.
The company stated the study indicated a US$559 million post-tax net present value with an internal rate of return of 31.5 per cent for a payback period of 2.5 years from full production and post-tax life-of-operations cash flow of $2.1 billion. This is based on Songwe as a stand-alone project selling mixed rare earth carbonate.
Mkango shared that Songwe has now been confirmed as one of few worldwide rare earths projects to have reached the feasibility stage.
According to Mkango, it will share the results of the feasibility study for an integrated project comprising both Songwe and Pulawy when a mine development agreement with the Malawi Government is completed for Songwe and a feasibility study is completed for Pulawy.
“This project is transformational for Malawi, and Mkango welcomes the very strong support it is receiving… Songwe will catalyse a new industrial revolution in Malawi, creating employment opportunities and producing high value-added exports, as well as further unlocking Malawi’s mineral potential and new infrastructure developments,” Alexander Lemon, President of Mkango, said.
Alongside these results, the company stated it will improve Songwe to help lower capital expenditures and operating costs, both of which have been allegedly negatively impacted by current market dislocations.
Mkango Resources Ltd. (MKA) is down 4.41 per cent trading at $0.32 per share as of 1:40 p.m. ET.