1st Sep 2025 12:12
(Alliance News) - Mkango Resources Ltd on Monday reported a wider pretax loss for the first half of the year as expenses increased amid restrictions on rare earth exports.
The Malawi-focused producer of recycled rare earth magnets, alloys, and oxides said the pretax loss for the six months that ended June 30 widened to USD3.7 million from USD1.8 million the year before.
Total expenses increased 53% to USD2.6 million from USD1.7 million.
In the second quarter, the pretax loss widened to USD1.2 million from USD694,934 the year before, driven largely by a USD701,438 fair value adjustment relating to investor warrants.
Second-quarter expenses doubled to USD1.3 million from USD662,035 a year earlier.
Mkango Resources continues to report no revenue.
"The reporting period was dominated by the news of restrictions on the export of rare earths from China, and their subsequent consequences. While framed as a national-security measure, the restrictions were widely perceived as retaliation in response to higher tariffs imposed by the USA on China," said Mkango.
"There was immediate fallout as a result of the restrictions. The scrutiny of Chinese customs officials slowed shipments, with magnet exports in April 2025 reported to be approximately 50% lower than the previous month. Later in the reporting period, China began granting licences and signalled selective easing for some companies in the supply chain, leading to a partial rebound in June magnet exports. Volumes, however, remained below 2024 levels."
Shares in Mkango Resources were down 9.2% at 37.21 pence in London at midday on Monday.
By Michael Hennessey, Alliance News reporter
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