Mkango Releases Q3 2025 Results

Executive Summary

• Mkango Resources Ltd released its financial statements and MD&A for the three months ended September 30, 2025, highlighting a US$2 million cash position and a successful £3 million equity raise in October 2025.
• The company announced significant operational milestones across its HyProMag recycling divisions, including first commercial sales of recycled NdFeB alloy powder in the UK, completion of first magnet block production, and progress toward commissioning in Germany and the USA.
• A major strategic update involves the Business Combination Agreement (BCA) with Crown PropTech Acquisitions (CPTK) to form Mkango Rare Earths Limited for a Nasdaq listing, valuing Mkango’s pro forma shareholding (excluding recycling businesses) at US$400 million. Additionally, the company secured US$4.6 million in reimbursable funding from the U.S. DFC for the Songwe Hill project.

Key Details

• Financial Position: Cash balance of US$2 million as of September 30, 2025; successful equity raise of £3 million (approx. US$4 million) completed in October 2025 post-quarter end.
• HyProMag UK (Tyseley Energy Park):
  • Achieved first production and commercial sales of recycled NdFeB alloy powder (3 tonnes produced to date).
  • First revenue from these sales to be reported in year-end results.
  • Completed first production runs of NdFeB magnet blocks post-quarter end following sintering furnace commissioning.
  • Targeting 2 tonnes per month production; evaluating phased expansion to 100-350 tpa initially, then 1,000 tpa.
• HyProMag Germany:
  • Commissioning of key equipment targeted by end of 2025; first production of NdFeB alloy powder expected in Q1 2026 (subject to permitting).
  • Equipment status: HPMS vessel, sieve, blender, and jet mill installed; transverse alignment press on site; sintering furnaces arriving December 2025.
  • Evaluating expansion to 750 tpa from the planned 100-350 tpa.
• HyProMag USA:
  • Detailed engineering >25% complete, on time and within budget.
  • Scope extended to include three HPMS vessels (up from two), increasing co-product production from 291 tpa to ~750 tpa.
  • Notice to Proceed (NTP) expected Q1 2026; commissioning targeted mid-2027.
  • Signed feedstock supply and pre-processing site share agreement with Intelligent Lifecycle Solutions (ILS); stockpiling of end-of-life electronic scrap commenced.
  • Purchased Inserma and PCB machines for Texas, South Carolina, and Nevada sites; delivery expected prior to year-end.
  • Received Letter of Interest (LOI) from U.S. EXIM Bank for potential financing of up to $92 million (10-year tenor).
  • Discussions with commercial banks for project finance are in due diligence phase.
• M&A / SPAC Transaction (Mkango Rare Earths Limited):
  • BCA signed with Crown PropTech Acquisitions (CPTK) on July 29, 2025, to form a pure-play global rare earth platform listing on Nasdaq.
  • Platform includes Songwe Hill (Malawi) and Pulawy (Poland) projects.
  • Pro forma shareholding value (excluding recycling businesses) estimated at US$400 million prior to expenses, PIPE, and trust account funds.
  • Finalizing revised NI 43-101 and US SK-1300 technical reports for Songwe Hill and prefeasibility study for Pulawy to support Form F-4 filing.
  • SEC effectiveness of Registration Statement anticipated in Q1 2026.
• Songwe Hill Financing:
  • Signed Project Development Funding Agreement with U.S. DFC on September 29, 2025, securing US$4.6 million in reimbursable funding.
  • DFC evaluating potential US$100 million direct loan for full project development financing.
• Corporate Governance:
  • Appointed Hannam & Partners as joint broker and corporate sponsored research provider effective December 1, 2025.
  • Annual fee of £50,000 for research services; initial 12-month term.
  • Joint brokers now include SP Angel Corporate Finance LLP, Alternative Resource Capital, and Hannam & Partners.

Notable Quotes

• No direct quotes from the CEO/President were included in the provided text.