Mkango and CoTec Appoint Lead Engineers for HyProMag USA Rare Earth Magnet Recycling Project
Why we think this is good
The RNS announcement outlines a significant milestone for the HyProMag USA rare earth magnet recycling project, with the appointment of lead engineers PegasusTSI and BBA to complete the EPCM services. The project has strong financial potential, with a NPV7% of US$262 million based on current market prices and US$503 million based on forecast prices. The partnership between CoTec, Mkango, and HyProMag to develop this project in the U.S. is also a positive strategic development. However, the timeline for the project is relatively long, with first revenue targeted in H1 2027, and the 'Very Good' rating constraint applies as the RNS does not contain any explicit profit upgrades or statements about trading significantly ahead of market expectations.
Key Points
- PegasusTSI and BBA appointed as lead engineers for EPCM services
- HyProMag USA project has strong financial potential with NPV7% of US$262 million based on current market prices and US$503 million based on forecast prices
- Project expected to supply 10% of U.S. domestic demand for NdFeB magnets within five years of commissioning
- HyProMag USA is owned 50:50 by CoTec and HyProMag Limited, which is 79.4% owned by Mkango and 20.6% owned by CoTec
Summary
Mkango Resources Ltd. and CoTec Holdings Corp. have appointed PegasusTSI and BBA as the lead engineers to complete the EPCM services for the HyProMag USA rare earth magnet recycling and manufacturing project in the United States. The project has a NPV7% of US$262 million based on current market prices and US$503 million based on forecast prices, and is expected to supply 10% of U.S. domestic demand for NdFeB magnets within five years of commissioning. HyProMag USA is owned 50:50 by CoTec and HyProMag Limited, which is 79.4% owned by Mkango and 20.6% owned by CoTec.