Mkango Releases 2025 Financials and Files Updated Feasibility Study for Songwe Hill Rare Earths Project

This is one of those RNS announcements that looks procedural at first glance, but there is quite a lot going on underneath. Mkango has done two main things: it has released its 2025 financial statements and management discussion, and it has formally filed the NI 43-101 technical report for the Songwe Hill rare earths project in Malawi.

That second point matters more than it might sound. NI 43-101 is the Canadian reporting standard for mineral projects, and filing the technical report means the detailed engineering and economics behind the previously announced Songwe Hill definitive feasibility study are now on the record. In plain English, the story has moved a step further from presentation slides to formal, reviewable documentation.

Mkango 2025 financials and Songwe Hill feasibility study – the key numbers investors should know

Metric	Figure
Cash at 31 December 2025	US$3.1 million
Post year-end fundraise	£11.7 million net proceeds
New shares issued	37,878,788 shares at 33 pence
HyProMag UK production to date	9.2 tonnes
HyProMag UK shipped to customers	7.4 tonnes
Songwe post-tax NPV	Approximately US$339 million
Songwe IRR	24%
Songwe payback	3.4 years from start of full production
Puławy post-tax NPV	Approximately US$779 million
Puławy IRR	40%
HyProMag USA post-tax NPV	US$409 million at current market prices
HyProMag USA post-tax NPV	US$780 million at forecast market prices

One important point: while Mkango says it has released its financial statements, this RNS extract does not set out revenue, loss, debt, or year-on-year profit figures. Those numbers are not disclosed in the announcement itself, so investors need to separate the formal filing from the highlights management has chosen to emphasise.

Mkango cash position and fundraising – better funded, but not exactly flush

The year-end cash balance was US$3.1 million. For a company with multiple projects across recycling, manufacturing and mining development, that is not a huge number. On its own, it would have looked tight.

The good news is that Mkango raised £11.7 million of net proceeds after the year end, equivalent to around US$15.5 million, by issuing 37,878,788 common shares at 33 pence each. That gives the group more breathing room and lowers the immediate funding pressure.

The catch is obvious: issuing nearly 37.9 million new shares means dilution for existing holders. The exact dilution percentage is not disclosed in this RNS, so we cannot calculate it here, but the trade-off is clear – stronger cash, bigger share count.

HyProMag UK and Germany progress – this is where the execution story gets more credible

The most encouraging part of the update, in my view, is that HyProMag is showing signs of real industrial progress rather than just ambition. In the UK, first production runs from the commercial-scale HPMS vessel at Tyseley Energy Park in Birmingham were announced in July 2025, with 9.2 tonnes produced so far and 7.4 tonnes shipped to customers.

That shipped figure matters. It shows product is moving out of the plant and into customer hands, which is a very different thing from saying a technology works in theory.

There is also a sensible growth pathway. Mkango says HyProMag UK is evaluating phased expansion from an initial 100 to 350 tonnes per annum of NdFeB alloys and magnets, and then up to 1,000 tonnes per annum later on.

In Germany, first commissioning runs at Pforzheim were announced in April 2026. The site is already fully permitted for production of up to 750 tonnes per annum of NdFeB magnets and alloys, with an initial capacity of about 100 tonnes per annum, rising to around 350 tonnes per annum with multiple shifts.

The Siemens collaboration also stands out. Siemens has incorporated recycled NdFeB magnets produced by HyProMag into a SIMOTICS servomotor rotor. That does not automatically mean huge sales are coming, but it is useful commercial validation from a serious industrial name.

HyProMag USA economics look punchy – but these are still modelled outcomes

The US project is where the headline valuation numbers get big. Mkango says an updated Class 2 AACE capital cost estimate confirmed materially improved economics, with a post-tax net present value, or NPV, of US$409 million and a 27.6% real internal rate of return, or IRR, based on current market prices.

NPV is the present value of future project cash flows after costs and tax. IRR is the annual return the project is expected to generate. Higher is better on both counts, but they are still forecasts, not cash sitting in the bank.

Using forecast market prices, HyProMag USA’s post-tax NPV rises to US$780 million and the real IRR to 38.7%. On top of that, concept studies for expansions in South Carolina and Nevada would take total magnet and alloy production from 1,552 metric tonnes of NdFeB to 4,656 metric tonnes per annum, with the expanded developments showing greater than US$2 billion post-tax NPV and a 38.7% real IRR based on forecast prices.

That is undeniably exciting on paper. The caution is that paper economics can move around a lot when pricing assumptions, capital costs, feedstock availability or execution timelines change. Mkango itself flags those risks in the forward-looking statements.

Songwe Hill DFS filing and Puławy rare earths plant numbers – why the upstream story still matters

Songwe Hill is still a major pillar of the Mkango investment case. The newly filed technical report supports the definitive feasibility study announced in March, which gave the project a post-tax NPV of about US$339 million, a 24% IRR, a 3.4-year payback period and post-tax life-of-operations nominal cash flow of US$1.55 billion.

Those are respectable numbers for a rare earths development project, particularly in a market where securing non-Chinese supply chains is becoming strategically important. Songwe has also secured US$4.6 million in reimbursable funding from the U.S. International Development Finance Corporation to support FEED, or Front-End Engineering and Design, and value engineering studies.

Puławy in Poland actually posts even stronger economics at the study level, with a post-tax NPV of around US$779 million, a 40% IRR, a 3.4-year payback and post-tax life-of-operations nominal cash flow of US$4.95 billion. If Adamas Intelligence upside price forecasts are applied, Songwe rises to about US$489 million NPV and Puławy to around US$892 million NPV in the expanded 100% NdPr separation case.

That said, neither Songwe nor Puławy is a finished operating asset today. They still need funding, execution and, in practical terms, a lot of work to turn feasibility into cash flow.

Mkango Rare Earths SPAC deal and implied valuation – interesting, but keep your feet on the ground

The company also says its subsidiary Mkango Rare Earths Limited has confidentially submitted a draft Form F-4 to the US Securities and Exchange Commission in connection with the proposed business combination with Crown PropTech Acquisitions. The implied pro forma valuation of Mkango’s shareholding in Mkango Rare Earths is US$400 million.

That sounds strong, but read the small print. The company explicitly says this excludes the effects of indebtedness, closing cash, transaction expenses, certain sponsor investments, any PIPE financing proceeds and amounts left in the SPAC trust account. In other words, it is an indicative framework, not a clean take-home valuation number.

What this Mkango RNS means for retail investors

Overall, I think this is a positive update. The biggest positive is that Mkango is starting to show substance across several fronts at once – formal technical reporting for Songwe, real production and customer shipments in the UK, commissioning progress in Germany, and large-scale economic potential in the US.

The negative side is simpler: this is still a capital-intensive, execution-heavy story. The company had only US$3.1 million of cash at year end, and while the £11.7 million fundraise helps, there is still a long road between project studies and durable profits.

For retail investors, the question is whether Mkango can keep converting milestones into operating momentum. If HyProMag continues shipping product, if Songwe advances through FEED and financing, and if the US expansion path remains credible, the investment case gets stronger. If not, the valuation will keep leaning on future promise rather than present earnings.

My read is that Mkango is making genuine progress, and this RNS adds useful credibility. But it is still a story stock in a specialist sector, not a finished cash machine. That makes it interesting – and risky in equal measure.