Mkango And CoTec Provide Update on Roll-Out of Hypromag's Rare Earth Magnet Recycling Technology into the United States

About this update from Cotec Holdings Corp

[{"type":"text","content":"Mkango And CoTec Provide Update on Roll-Out of Hypromag’s Rare Earth Magnet Recycling Technology into the United StatesLONDON, UK and VANCOUVER, BC / ACCESSWIRE / October 10, 2023 / Mkango Resources Ltd. (AIM:MKA)(TSX-V:MKA) (\"Mkango\") and CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) (\"CoTec\") are pleased to provide an update on the roll-out of HyProMag's rare earth magnet recycling technology into the United States. HyProMag Ltd (\"HyProMag\") is a wholly owned subsidiary of Maginito Ltd (\"Maginito\"), which is 79.4% owned by Mkango and 20.6% owned by CoTec.Based on positive scoping studies to date, Maginito and CoTec have commenced planning for the feasibility study for the United States operation (\"Feasibility Study\"), targeted for completion by mid-2024.The proposed operating configuration for the United States operations is a modular, hub and spoke model, with the initial deployment of three Hydrogen Processing of Magnet Scrap (HPMS) recycling vessels at the spokes and a central hub comprising of rare earth (NdFeB) alloy and magnet manufacturing, subject to the outcome of the Feasibility Study.Operating scenarios tested through the scoping studies highlighted:A range of production scenarios and product suites are potentially viable, including finished magnets, sintered blocks and alloy products, and incorporating up to 100% recycled NdFeB feed;Potential for US$50 million per year of revenue generation, based on assumed production of 500 tonnes per year of NdFeB magnets and a blended product price of US$100/kg, which is within the range of current pricing for the different products evaluated during the scoping studies;A target EBITDA margin of 35% to 40% would potentially be achievable under a range of scenarios, with a minimum estimated capital expenditure of US$30 million; andMarket conditions and rare earth prices are currently subdued, indicating potential upside versus the current pricing scenario as market conditions recover, in parallel with further optimization of the development scope.The actual results of the United States operations could vary materially depending on future pricing of rare earth elements, final product mix, agreed sales pricing for each product, capacity at which the HPMS vessels and magnet manufacturing will be operated, quality and cost of scrap feed material, primary product ratio...

More updates from Cotec Holdings Corp