COTEC HOLDINGS CORP Stock Price, News & Analysis

CoTec and Mkango announce positive results from a Feasibility Study for HyProMag USA, a rare earth magnet recycling and manufacturing operation in the United States. The project, based on HPMS technology, shows a post-tax NPV of US$262 million and 23% IRR at current market prices, with potential to reach US$503 million NPV at forecast prices.

The facility will be located in Dallas Fort Worth, Texas, with two pre-processing spokes in eastern and western US. It will produce 750 metric tons annually of recycled sintered NdFeB magnets and 291 metric tons of co-products, with first revenue targeted for Q1 2027. The project requires US$125 million in upfront capital and has a low all-in sustaining cost of US$19.6 per kg of NdFeB product.

CoTec Holdings announces that Ceibo has partnered with Glencore's Lomas Bayas Mining Company to implement Ceibo's proprietary leaching technologies for enhanced copper extraction from low-grade sulphides in Chile. After two years of testing, Lomas Bayas is scaling up testing through Lomas Lab to evaluate the technology's potential for extending mining operations. Ceibo's technology offers a revolutionary process for leaching low-grade primary copper sulphides using inorganic leaching technology, promising higher recovery rates and shorter operational cycles. The company raised over US$30 million in Series B financing led by Energy Impact Partners, with participation from BHP Ventures, Orion Industrial Ventures, and other investors.

CoTec Holdings Corp. (TSXV:CTH) has announced arrangements to address mailing delays due to the Canada Post strike affecting the delivery of financial statements and meeting materials for their December 13, 2024 special and annual general meeting. The company has made electronic copies of financial disclosure and meeting materials available on SEDAR+. Shareholders can request email copies at no charge through Braam Jonker or Computershare's Shareholder Services. Physical copies will be mailed within ten days after postal service resumes. The company may seek exemption from BC Securities Commission regarding mailing requirements during the strike.

CoTec Holdings Corp (CTHCF) reported Q3 2024 financial results with a comprehensive loss of $2.19 million for the quarter and $0.78 million for the nine months ended September 30, 2024. The loss was mainly due to adverse exchange rate impacts on investments ($381k) and equity incentive unit vesting ($822k). Key developments include filing a Preliminary Economic Assessment for Lac Jeannine Iron Tailings Project, showing pre-tax NPV7% of US$93.6M and IRR of 38%, progress on HyProMag USA's feasibility study, and raising $2.75 million through private placement. The company expects to begin project build-out in H2 2025 with first revenue anticipated by end of H2 2026.

Maginito (79.4% owned by Mkango, 20.6% by CoTec) has secured an exclusive agreement with Inserma Anoia S.L to commercialize automated pre-processing technologies for HyProMag in the UK, Germany, US, and other regions. The collaboration focuses on optimizing and rolling out technologies for hard disc drives (HDDs), loudspeakers, and electric motors.

Key points:

• Inserma's mobile unit can rapidly remove voice call motors containing rare earth magnets from HDDs in <3 seconds
• The technology provides a steady neodymium magnet scrap feed for HyProMag's HPMS process
• Initial purchase of three units for HDD pre-processing in UK, Germany, and US
• Collaboration aims to deploy hundreds of pre-processing units across multiple jurisdictions
• Agreement includes exclusive rights and intellectual property sharing

CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) has filed an independent National Instrument 43-101 technical report for its Lac Jeannine Iron Tailings Project in Québec, Canada. The report, dated August 5, 2024, with an effective date of March 19, 2024, includes a Mineral Resource Estimate and Preliminary Economic Assessment (PEA). The PEA results, previously announced on June 27, 2024, remain unchanged, with no material differences between the filed report and the earlier release. The company confirms that no new information materially affects the previously disclosed PEA results. The full technical report is now available on SEDAR+ and CoTec's website for public access.

CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) has filed its Q2 2024 financial results, reporting comprehensive income of $1.45 million for the quarter and $1.42 million for the six months ended June 30, 2024. Key highlights include:

1. Completion of the Lac Jeannine Iron Tailings Project PEA, showing an Initial Inferred Mineral Resource of 73 million tonnes at 6.7% total Fe and a pre-tax NPV7% of US$93.6 million.

2. Progress on the HyProMag USA Feasibility Study, on track for release by the end of fiscal 2024.

3. MagIron's signing of long-term mineral leases to support Plant 4 restart.

4. Appointment of Linda Lourie to HyProMag USA 's Board.

5. Raised $2.6 million through a non-brokered private placement.

The company aims to generate first revenue from HyProMag USA in 2026, demonstrating its strategy to bring production and revenues to market quickly with reduced environmental impact and capital intensity.

CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) has engaged San Diego Torrey Hills Capital, Inc. to provide market awareness and investor relations services, subject to TSX Venture Exchange acceptance. Torrey Hills, led by Cliff Mastricola, specializes in small and microcap companies. The firm will increase awareness about CoTec through its established relationships with investment professionals.

The engagement terms include:

• US$5,000 monthly rate for an initial six-month term
• Automatic extension with a 30-day termination notice
• One-time grant of 150,000 incentive stock options at C$0.50 per share for three years

Torrey Hills currently holds no direct or indirect interest in CoTec's securities, except for the potential exercise of the granted options.

Mkango Resources has provided an update on the commissioning of its short-loop rare earth magnet recycling and manufacturing plant at Tyseley Energy Park in Birmingham, UK. The plant, operated by HyProMag, is expected to start commercial operations in Q1 2025. Key milestones include:

- Magnet manufacturing presses commissioned in December 2023
- Powder processing plant delivered in July 2024
- HPMS vessel expected in September 2024
- Infrastructure development to commence in September 2024

Initial production is targeted at 25-30 tonnes per year of recycled NdFeB, with potential to scale up to 100-330 tonnes annually. The project aims to establish a domestic source of recycled rare earths in the UK, important for clean energy technologies and electronic devices.