SP Angel . Morning View .Monday 12 12 22
Base metals ease on Covid concerns. Lithium holds on Jin river pollution investigation
MiFID II exempt information – see disclaimer below
Capital Metals PLC (AIM:CMET) – Shares collapse as Sri Lanka suspends ilmenite licenses
Hamak Gold Limited (LSE:HAMA) – Encouraging results from initial drilling at the Nimba licence, Liberia
Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF)– UK-based subsidiary continues to develop REE recycling technology
Oriole Resources PLC (AIM:ORR)* – Successful Delivery of Maiden JORC Resource at Bibemi, Cameroon
Rockfire Resources PLC (LSE:ROCK) – Initial drilling at the Molaoi zinc project intersects mineralisation at the expected depth
SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF)* – Completion of US$36m share issue
Tungsten West PLC (AIM:TUN) – Interim report signals resumption of operations at Hemerdon in H2 2023
Tertiary Minerals PLC (AIM:TYM)* – Full year results to September 30 2022
Gold steady as traders brace for multiple Central Bank hike decisions this week
- Gold prices have eased from last week’s $1,800/oz level but remain relatively strong around the $1,790/oz mark.
- The dollar sell-off has stabilised, with the index holding flat for the past week but 8% lower than peaks hit in September.
- US Treasury yields sunk dramatically last week, supporting gold prices, but have since ticked higher to 3.54% on the 10 Year.
- Traders are weighing up a more hawkish Powell at the hike decision meeting on Wednesday given stronger US economic data.
- All eyes will turn to tomorrow’s CPI reading for the US, with hotter than expected inflation data set to hit gold prices. Alternatively, if inflation continues to cool, gold may see additional support.
Base metals ease as focus turns to China covid infections following widespread reopening
- Copper prices fell 2.4% over the weekend to $8,400/t before regaining some ground to settle around the $8,460/t mark.
- Aluminium and iron ore both cooled slightly over the weekend.
- China is recording major rises in infections, with 8,561 new cases reported on Sunday.
- The real estate sector continues to lag, with new house demand down for the 14th consecutive month.
- Blast furnace rates in Tangshan are starting to improve on China’s reopening, however, with iron ore stockpile data also starting to see declines as steelmakers ramp up production.
- Global copper inventories have continued to decline, down 12% over the past month and nearing 2008 lows.
Lithium production halted in Yichun on Jin River pollution investigation in Jiangxi province
- Yongxing Special Materials Technology Co., Ltd (002756.SZ) collapsed last week on the suspension of operations and investigation of pollution from factories into the Jin River.
- Anshan Heavy Duty Mining Machinery and KangLongDa Special Protection Technology also suspended lithium carbonate production in Yichun as the authorities check pollution levels.
- Yongxing shares fell from CNY145 to CNY104 last week.
- The processing of Spodumene concentrates into Lithium Carbonate is thought to be causing heavy metal contamination of the local Jin River.
- Shanghai Metals Markets reckons the suspension could affect some 3,000-4,000 LCE equivalent
- Yichun hosts the world’s largest lepidolite mine with reserves >1.1mt LiO2 represents 31% of China’s recoverable lithium oxide and 12% of global production.
- Battery manufacturers, Contemporary Amperex Technology Limited (CATL), the world’s largest EV battery maker, and BYD, the world’s largest EV maker also have facilities in the Yichuan area (SCMP).
- The ministry of ecology and environment released an emissions standard for pollutants for the battery industry in 2013 setting discharge limits for water and air pollutants in the battery supply chain and stipulated requirements for monitoring of battery manufacturing enterprises. We suspect someone has only just started looking seriously into this.
Dow Jones Industrials +0.55% at 33,781
Nikkei 225 +1.18% at 27,901
HK Hang Seng +2.32% at 19,901
Shanghai Composite +0.30% at 3,207
Economics
Inflation - Central banks expected to slow interest rate hikes
- Markedly lower oil prices at $76.1/bbl for Brent crude will lead inflation lower into next year as demand falls for oil an its products
- The US Fed, ECB and BoE are all expected to hold back on larger rate hikes.
- Four out of the top five drivers of inflation have been energy prices over the past year.
- Second hand vehicles were the other major driver partly due to semiconductor shortages delaying delivery of new cars.
- Consumers are also delaying buying new vehicles pending the arrival of a multitude of new EV models.
- We believe the second hand vehicle market is now cooling with the CarGurus Index falling 3.87% yoy.
- We see the US as leading global growth among the world’s major economies with China slowing markedly over the next few months as Covid works its way through the population.
- Covid, may still present further risks and surprises and will mutate into further variations in China and elsewhere.
China - Vehicle sales fell -7.9% in November vs a rise of +6.9% in October with used vehicle sales growth also stalled
- While Chinese sales growth may be impacted by many factors we suspect an element of consumer caution combined with factory closures and job losses are partly to blame.
US - Preliminary Uni of Michigan consumer sentiment index 59.1 for December vs 56.8 in November
- Congress has until midnight 16December EST to agree a raising of the debt ceiling – or see closure of the Federal Administration
- Expect a last minute agreement with some horse trading along the way.
- Fusion: US government scientists report a new breakthrough in fusion technology
- Inertial confinement fusion has been shown to produce a net energy gain, though it will take many years to scale up the technology.
UK – GDP growth recovered to 0.5% in October vs a 0.6% fall in September which was down to the Queen’s funeral and extra bank holiday
- UK GDP contracted 0.3% for the three months to end October
- Economists expect UK GDP to fall for November and December with the BoE forecasting recession till end 2023
- Manufacturing expected to lead the downturn as a lack of confidence in the business and consumer outlook hit demand.
UK power - National Grid restarting coal fired power stations as low wind speeds combined with high demand for electrical power for heating draws the grid closer to crisis
- Drax has two coal-fired generators warmed up and ready to step in today – thank you coal
- Ironically, the rail worker strike could be a saving grace for the National Grid as fewer trains = less demand for electrical power
- Network Rail signed a Traction Electricity contract with EDF Energy and runs till September 2024
- Total Traction Electricity was ~3,400,000,000 kWh (3,400GWh) 2016-17 at a cost of ~£300m.
- Network Rail also have a Non-Traction Electricity contract for ~440,000,000kWh (440 GWh) which runs till 31 March 2023
- The railways also have a Natural Gas contract for ~60,000,000 kWh (60 GWh).
Conclusion: Thank you to the rail unions for helping the nation out on saving so much power for the National Grid
Brazil - CPI rose 5.9% yoy in November vs 6.6% yoy in October and
EU – European parliament corruption uncovered as Belgian police seize €600,000 in cash and detained two MEPs
- The move is reported to be part of an international investigation into claims that World Cup host Qatar sought to buy influence.
- We wonder what other corruption the investigators might uncover while they are at it?
- The European Space Agency are launching a bunch of new weather satellites tomorrow, weather permitting.
- The Third Generation, Meteosat should increase accuracy for storm warnings. Maybe it can also warn that when it gets really cold, the wind tends not to turn our windmills
Ukraine – Ukraine appears to be winning the war against Russia, albeit with some subtle NATO support
- Russia’s reputation as a military power is severely damaged though it does not yet have ‘rogue’ state status.
- Putin’s position is looking increasingly precarious though what follows is not easy to forecast.
- Putin’s determination to win is increasingly consuming precious resources and creating discontent within the regions with potential for regional rebellion.
- ‘The Killer in the Kremlin’ by John Sweeney, is well worth a ready for its catalogue of crimes against the Russian people
Peruvian miners threaten to strike in opposition to new president
- Peruvian demonstrators at Glencore’s Antapaccay and MMG’s Las Bambas mine are threatening to strike in protest of the Country’s new President. (La Republica)
- A 24-hour national strike is planned for Thursday, according to the paper, led by unions in Arequipa as violent demonstrations continue.
Currencies
US$1.0569/eur vs 1.0569/eur last week. Yen 136.39/$ vs 136.39/$. SAr 17.147/$ vs 17.147/$. $1.224/gbp vs $1.224/gbp. 0.675/aud vs 0.675/aud. CNY 6.948/$ vs 6.948/$.
Dollar Index: 104.71 vs 105.18 last week.
Commodity News
Precious metals:
Gold US$1,790/oz vs US$1,791/oz last week
Gold ETFs 93.7moz vs US$93.8moz last week
Platinum US$1,024/oz vs US$1,006/oz last week
Palladium US$1,946/oz vs US$1,922/oz last week
Silver US$23.42/oz vs US$23.04/oz last week
Rhodium US$12,600/oz vs US$12,900/oz last week
Base metals:
Copper US$ 8,449/t vs US$8,562/t last week
Aluminium US$ 2,456/t vs US$2,500/t last week
Nickel US$ 29,020/t vs US$30,285/t last week
Zinc US$ 3,238/t vs US$3,235/t last week
Lead US$ 2,175/t vs US$2,216/t last week
Tin US$ 23,750/t vs US$24,825/t last week
Energy:
Oil US$76.1/bbl vs US$76.5/bbl last week
- Crude oil prices edged lower despite the continued closure of the 622kb/d Keystone crude pipeline in the US and threats from Putin to reduce Russia’s output in response to the new price cap on its exports.
- European energy prices fell after a weekend of unseasonably cold and still air caused a surge in demand, with the UK regulator authorising two additional coal units into standby mode.
- The US Baker Hughes rig count fell by four to 780 rigs last week, with oil rigs down 2 to 625 rigs and gas rigs down 2 to 153 rigs.
- The IEA today released a report on what the EU needs to do to avoid the risk of a natural gas shortage in 2023.
- The EU is nearing a tentative deal to put a carbon price on imported goods coming from third countries, which would allow a tool to aid the levelling up of domestic industries that must abide by new carbon-zero rules.
Natural Gas US$6.907/mmbtu vs US$5.969/mmbtu last week
Uranium UXC US$48.70/lb vs US$48.50/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$111.6/t vs US$109.3/t
Chinese steel rebar 25mm US$572.6/t vs US$565.4/t
Thermal coal (1st year forward cif ARA) US$250.0/t vs US$250.0/t
Thermal coal swap Australia FOB US$384.5/t vs US$379.0/t
Coking coal swap Australia FOB US$275.0/t vs US$279.0/t
Other:
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$97,754/t vs US$98,233/t
Lithium carbonate 99% (China) US$76,755/t vs US$77,363/t
China Spodumene Li2O 5%min CIF US$6,110/t vs US$6,110/t
Ferro-Manganese European Mn78% min US$1,301/t vs US$1,305/t
China Tungsten APT 88.5% FOB US$317/mtu vs US$317/mtu
China Graphite Flake -194 FOB US$880/t vs US$880/t
Europe Vanadium Pentoxide 98% 7.9/lb vs US$7.9/lb
Europe Ferro-Vanadium 80% 33.25/kg vs US$33.25/kg
China Ilmenite Concentrate TiO2 US$323/t vs US$325/t
Spot CO2 Emissions EUA Price US$93.1/t vs US$93.9/t
Brazil Potash CFR Granular Spot US$530.0/t vs US$515.0/t
Battery News
Stellantis idles Illinois plant, citing rising EV costs
- Automaker Stellantis has said it will indefinitely halt operations at an assembly plant in Illinois in February, citing the rising costs of electric vehicle production.
- The price of lithium-ion batteries rose for the first time in more than a decade this year, with surging raw material costs expected to be a key obstacle in turning EVs unto a mass market product.
- According to company documents, production is being moved to the company's Toluca, Mexico, plant.
- We wonder if the move may also reflect difficulties in obtaining raw materials for battery packs and other critical components?
Company News
Capital Metals PLC (AIM:CMET) 2.6p, Mkt Cap £4.9m – Shares collapse as Sri Lanka suspends ilmenite licenses
- Capital Metal’s Sri Lankan subsidiary has received notice from the Geological Survey and Mines Bureau (GSMB) that it considers the company needs approval for the shareholding structure from the Board of Investment of Sri Lanka (BOI).
- The comments that ;There appears to be some uncertainty within the GSMB (and perhaps the BOI) around the application of the Foreign Exchange Act of Sri Lanka that governs investment in shares in companies incorporated in Sri Lanka by non-residents. Damsila, is a subsidiary company of a Sri Lanka resident company, Redgate Lanka (Pvt) Limited. The ultimate parent of Redgate is Capital Metals’
- Management’s in country legal counsel reckons ‘the current shareholding structure of Damsila is in conformity with the Regulations published under the Foreign Exchange Act and that BOI approval is not required by Damsila for the issuance of shares to Redgate which is a company incorporated in Sri Lanka even though its ultimate parent is Capital Metals’.
- A recent EIA was approved in November 2021 with a permit to mine issued after satisfying all the conditions put forward by the Department of Coast Conservation and Coastal Resource Management
- IHC Mining estimated total capex of just US$80m in a recent Development Study and PEA
- The chairman of the Geological Survey and Mines Bureau (GSMB) was removed on 8 December with the Director General also sent on compulsory leave.
Conclusion: The situation leads to many questions. Have the licenses been properly issued? Why have the Chairman of the GSMB and the Director General been suddenly removed? Why has Sri Lanka decided to require Board of Investment approval for the company structure? Whatever the situation, shareholders are looking at delays to the project and significant uncertainty as to its approval.
Hamak Gold Limited (LSE:HAMA) 8p, Mkt Cap £3m – Encouraging results from initial drilling at the Nimba licence, Liberia
- Hamak Gold reports results from its initial three diamond drillholes at its wholly owned Nimba licence in Liberia.
- The drilling results highlighted in today’s announcement are:
- An intersection of 29m (~16m true width) at an average grade of 6.98g/t gold from a depth of 29m in hole NZ22-001 which included a higher grade section of 5m (~4m true width) from 35m depth which averaged 21.73g/t gold and a second, deeper, intersection of 2m (~0.8m true width) averaging 1.19g/t gold from 85m depth; and
- An intersection of a single metre (both downhole and true width) averaging 0.38g/t gold from 31m depth in hole NZ22-002 which, based on a cross section shown in today’s announcement intersects the same structure as hole 001 but from the opposite direction; and
- An intersection of 4m (~3.5m true width) averaging 1.05g/t gold from a depth of 134m in hole NZ22-003.
- We note that the results are still at an early stage and that, based on the cross-section noted above, hole 002 appears to have a second, deeper intersection of 2m averaging 1.19g/t gold although we do not see the depth of that intersection.
- The drilling follows up positive channel sampling results, including a 14m section averaging 1.98g/t gold “returned from the sidewalls of an extensive artisanal mining excavation” which lies within “a 2,500m long gold in soil geochemical anomaly adjacent to artisanal mine workings”.
- The company says that their Nimba licence has “geological similarities to the nearby deposits currently being mined at Endeavour Mining’s Ity Mine in neighbouring Cote d’Ivoire, only c.25 kilometres to the north-east of Ziatoyah”
- Hamak Gold confirms that it “will continue to evaluate the geological model of what is clearly a promising first discovery in the Nimba Licence. The objective will be to establish a focussed exploration and expanded drilling programme to target the lateral and depth extent of this high-grade geological unit”.
Conclusion: Early-stage drilling data from the Nimba licence is being evaluated to identify an appropriate programme of follow up exploration.
Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) A$.037p, Mkt Cap £142m – UK-based subsidiary continues to develop REE recycling technology
- Ionic Rare Earths reports that its UK-based subsidiary in Belfast has continued to develop rare earth element separation and refining technology and expects to commission a demonstration plant in Q1 2023.
- In September, the Company was awarded £1.7m from the UK Government’s Innovate UK Automotive Transformation Fund Scale-up Readiness Validation (SuRV) program to develop a demonstration scale magnet recycling plant.
- A recently completed pilot programme has demonstrated that Ionic’s process demonstrates hydrometallurgical extraction from Neodymium-Iron-Boron (NdFeB) swarf.
- The swarf is supplied by a UK-based alloy manufacturer and is rich in both Neodymium and Praseodymium, both of which are contained in a number of intermediary REE products prior to the separation and production of 5kg of separated high purity rare earth oxides.
- Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF)*, through its subsidiary Maginito, are currently pursuing downstream green technology opportunities in the rare earth supply chain, mainly through its stake in HyProMag.
- Hypromag’s current focus is on developing its patented HPMS (Hydrogen Processing of Magnet Scrap) technology, developed by the Magnetic Materials Group (MMG) at the University of Birmingham.
- The company has successfully proven their process by taking end-of-life products subjected to the HPMS process to create a powder feedstock that was chemically characterised, purified, and re-sintered into a new magnet with minor additions of new rare-earth hybrid material. The re-sintered magnets have comparable magnetic properties to the initial magnet.
- Hypromag are now working on developing a new semi-continuous version of the HPMS process on a production line at the Tyseley Energy Park, while also producing magnets at multiple grades to match the requirements for a range of applications.
*SP Angel acts as nomad and broker to Mkango Resources
Oriole Resources PLC (AIM:ORR)* 0.135p, Mkt cap £3.7m – Successful Delivery of Maiden JORC Resource at Bibemi, Cameroon
- Oriole Resources reports a maiden Inferred JORC-compliant Mineral Resource Estimate at Bakassi Zone 1, one of four prospects at its 177km2 Bibemi licence package in Cameroon.
- The pit-constrained Resource stands at an estimated 4.3mt at 2.19g/t Au for 305koz of inferred gold, using an $1,800/oz gold price. The resource remains open both at strike and at depth.
- The Resource has been modelled over a strike of 1,220m to a depth of 260m and a cut-off of 0.3g/t Au and a top-cut of 20g/t Au.
- The Company has also upgraded the residual JORC exploration target announced in October, excluding the Resource, to 1.5-2.2mt at between 1.1-2.1g/t of 53-148koz Au.
- Oriole is now looking to undertake an infill geophysics programme in the first half of 2023 to develop accurate drill targets at the other three prospects across the Bibemi licence.
Conclusion: The Oriole team has moved quickly to upgrade their JORC exploration target to a MRE over the past three months and we congratulate them. The resource represents the first of its kind for Cameroon, which remains a heavily underexplored jurisdiction with favourable prospects for junior gold explorers. Given Bakassi Zone 1 represents one of four prospects at Bibemi, there remains substantial opportunity for further resource expansion activities, and we look forward to results from the 2022/2023 field season.
*SP Angel cts as nomad and broker to Oriole Resources
Rockfire Resources PLC (LSE:ROCK) 0.18p, Mkt Cap £2.5m – Initial drilling at the Molaoi zinc project intersects mineralisation at the expected depth
- Rockfire Resources reports that its first drillhole at the Molaoi zinc project in Greece intersected both massive and semi-massive sulphide mineralisation at the expected depth and in the expected position based on interpretation of historical information.
- Drilling is continuing “but is slow due to strongly brecciated, highly veined, broken and extremely altered rock; which are all excellent indications for favourable mineralisation”.
- The company’s initial drilling in hole MO GTK-001 is located between historical drill sites of 173 holes drilled between 1979 and 1988 and Rockfire Resources says that its initial results verify “the historical drilling and validates the countless hours of mineralisation modelling completed by the Rockfire team”.
- Although assays are not yet available, Rockfire Resources says that “Massive sulphides occur between 130m and 134m, with semi-massive and disseminated sulphides continuing for a further 11m, down to 145m. More disseminated sulphides have also been encountered at 160m depth, which may represent a parallel lode beneath the main lode”.
- Commenting on the initial findings from Hole MO GTK-001, which is being deepened to “test for this second lode”, CEO, David Price, said that “The visible mineralisation appears to adhere well to the expected behaviour recorded in historical drilling. The massive sulphide zone tends to be around 3.0m average width and usually carries very high-grade zinc, lead, silver (+/- germanium) in historical core. This is accompanied by a broader zone of semi-massive sulphides beneath the massive sulphides, with slightly lower grades for at least another 10m downhole”.
Conclusion: Initial drilling has intersected mineralisation at the expected depth and position interpreted from historic geological information. Drilling is continuing and we await assay results with interest.
SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF)* 17.64p, Mkt Cap £422m – Completion of US$36m share issue
- Solgold reports the completion of its previously announced US$36m share issue raising gross proceeds of US$36m through the placing of 180m shares at a price of US$0.20/share.
- The new shares represent around 7.3% of the enlarged capital of Solgold.
- 155m of the new shares have been acquired by Jiangxi Copper leaving it with “approximately 6.3% of the issued ordinary share capital of the Company”.
- Interim CEO, Scott Caldwell, welcomed the participation of Jiangxi which he described as “one of the largest global producers of refined copper” and said that it “is another strategic endorsement for SolGold, the world class Cascabel project and Ecuador as an emerging mining jurisdiction and will be of great benefit to Ecuadorians and SolGold shareholders”.
- Mr. Caldwell welcomed the strengthening of Solgold’s balance sheet which he said “provides the Company with greater optionality while we maintain a disciplined approach to capital allocation to advance strategic project initiatives and exploration opportunities that hold the most significant potential to maximise shareholder value”.
- The reference to Solgold’s exploration potential is a reminder that, in addition to the flagship Alpala project at Cascabel, Solgold holds a large portfolio of promising exploration projects throughout Ecuador including the Porvenir project in southern Ecuador where a Preliminary Economic Assessment (PEA) is underway as well as other, less advanced projects including those at the Helipuerto prospect in the south east, Chical in the northwest and Rio Amarillo southeast of Alpala.
Conclusion: The conclusion of its US$36m latest financing brings support from Jiangxi Copper which now holds 6.3% of Solgold.
*SP Angel acts as Financial Advisor to SolGold
Tungsten West PLC (AIM:TUN) – 14.75p, Mkt cap £27.5m – Interim report signals resumption of operations at Hemerdon in H2 2023
- Tungsten West reports an after-tax loss of £5.1m for the six months to 30th September as it progresses its plant refurbishment and plans to reopen the Hemerdon tungsten mine in Devon.
- The company estimates that that work to rebuild and improve the processing plant is approximately 70% complete and that it expects to complete and release summary results of its feasibility studies for resumption of operations “before the end of the year”.
- “Mining operations … [are] … scheduled to recommence in H2 2023”.
- During the six months to September, Tungsten West invested £6.4m on “equipment purchase and down payments, mineral processing facility upgrades and enhancements, as well as design and engineering costs for the crushing and ore sorting circuits”.
- Additional expenditure of £2.3m was incurred for “stage payment deposits for plant and equipment, and £0.3 million deposit for contractor services”.
- Commenting on the international tungsten market, the company says that they “remain quiet” with the “near-term outlook for prices will likely be driven by the Chinese domestic market. Most recent official figures show Chinese growth is slowing compared to the levels of growth seen for decades. As China begins to find fewer customers for its products both on the domestic and international stage, demand for raw materials such as tungsten will drag”.
- Offsetting the relatively subdued outlook for China, however, Tungsten West says that “in the USA, we have seen continued growth and an increase in demand for US domestic oil and gas, meaning the demand for tungsten outside of China remains strong which might be augmented with an increase in global defence spending fuelled by the Ukraine and Russia conflict”.
- We have previously pointed out that although Hemerdon is a relatively low-grade tungsten deposit, it is one of the world’s larger resources of a metal considered as ‘strategic’ or ‘critical’ by the US, EU and UK amongst others and with its UK location, a resumption of production will, no doubt, be welcomed by end-users outside China. Among the plant enhancements is the installation of ore-sorting technology which should help to offset the impact of lower in-situ grades of the Hemerdon orebody and upgrade the feed to the downstream sections of the plant.
Conclusion: We await the outcome of the updated feasibility study for the reopening of the Hemerdon tungsten mine with interest as Tungsten West works towards a resumption of production in the second half of next year.
Tertiary Minerals PLC (AIM:TYM)* 0.16p, Mkt cap £2.5m - Full year results to September 30 2022
- Tertiary Minerals reports its audited full year results for the year to 30th September 2022.
- The Company has made strong progress in Zambia, signing a data sharing and technical cooperation agreement with First Quantum and earning a 90% interest at its Jacks Copper Project with local partner Mwashia.
- Tertiary completed a drill programme of four diamond holes, intersecting copper mineralisation across all holes, over a strike length of 350m, remaining open along strike and at depth.
- 2,000 soil samples were collected across four grids at Jacks, with favourable soil anomalies identified in relation to operating ore zones on the Copperbelt.
- Tertiary is currently planning its 2023 exploration and drill programmes in Zambia.
- At the Company’s Nevada assets, the year saw the completion of trenching, sampling, Geochem analysis and follow up field work.
- Trenching across 1.2km of mercury-arsenic soil anomalies saw intersections of hydrothermally altered rock with gold indicator elements.
- The Company is now planning to use drilling to target copper skarn and epithermal precious metals at its Brunton Pass Copper Project.
- The Group’s cash position at year-end stood at £59,414.
*SP Angel act as Nomad and Broker to Tertiary Minerals
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Analysts
John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490
Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484
Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk - 0203 470 0474
Joe Rowbottom – Joe.Rowbottom@spangel.co.uk - 0203 470 0486
Sales
Richard Parlons –Richard.Parlons@spangel.co.uk - 0203 470 0472
Abigail Wayne – Abigail.Wayne@spangel.co.uk - 0203 470 0534
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Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471
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*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)
+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.
Sources of commodity prices
Gold, Platinum, Palladium, Silver - BGNL (Bloomberg Generic Composite rate, London)
Gold ETFs, Steel - Bloomberg
Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt - LME
Oil Brent - ICE
Natural Gas, Uranium, Iron Ore - NYMEX
Thermal Coal - Bloomberg OTC Composite
Coking Coal - SSY
RRE - Steelhome
Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite - Asian Metal
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SPA is registered in England and Wales with company number OC317049. The registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP. SPA is authorised and regulated by the UK Financial Conduct Authority and is a Member of the London Stock Exchange plc.
MiFID II - Based on our analysis we have concluded that this note may be received free of charge by any person subject to the new MiFID II rules on research unbundling pursuant to the exemptions within Article 12(3) of the MiFID II Delegated Directive and FCA COBS Rule 2.3A.19.
A full analysis is available on our website here http://www.spangel.co.uk/legal-and-regulatory-notices.html. If you have any queries, feel free to contact our Compliance Officer, Tim Jenkins (tim.jenkins@spangel.co.uk).
SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return of less than 15%