SP Angel . Morning View . Thursday 22 12 22
Copper prices supported by PBOC comments in support of the property sector
MiFID II exempt information – see disclaimer below
AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF)– lower quarterly production following plant expansion, though record tin production in Nov 2022
Beowulf Mining PLC (AIM:BEM)* – High-grade trenching results at Räpysjärvi graphite prospect
Deep Yellow Ltd (ASX:DYL) – Successful completion of Omahola drilling campaign and results
Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF)– Report of appointment of Christine Coignard as Independent non-executive director
Glencore PLC (LSE:GLEN) – Canada blocks proposed coal mine in British Columbia
GreenRoc Mining PLC (AIM:GROC) – LGL seam shows high grade graphite over large, mineable widths in Greenland
Ivanhoe Mines Ltd. (TSX:IVN, OTCQX:IVPAF) – Ivanhoe refutes Bloomberg inference over ‘copper corruption’ case in DRC
MetalsTech Ltd (ASX:MTC) – Chifeng Gold buys $3m of stock in Metalstech to support mineral resource update on Sturec Gold project in Slovakia
Arc Minerals Limited (AIM:ARCM)*
OZ Minerals Limited (ASX:OZL) – Oz Minerals unanimously recommends the A$9.6bn ($6.4bn) deal with BHP Group following a four-week exclusive due diligence period
BHP Group Ltd (LSE:BHP, ASX:BHP)
Gold holds US$1,816/oz as traders brace for US labour data and Dollar extends losses
- Gold is mostly unchanged around the $1,818/oz mark as traders await additional Fed clues from US labour reports.
- US jobless claim numbers are due today at 1:30 GMT and personal consumption expenditure, another indicator of inflation, due tomorrow.
- A stronger US economy has enabled the Fed to hike rates to over 4.5% this year, with stronger yields pushing gold prices down from their peaks around $2,000/oz.
- Gold rallied over $180 from lows in September as traders bet on peak inflation and the dollar started to slide.
- US Treasury yields eased following a leg up to 3.7% yesterday, capping gold’s upward move.
Copper holds US$8,365/t despite China Covid chaos as ICSG notes market surplus in October
- Copper prices have held just under $8,400/t despite concerns over rampant China infections weighing on factory productivity.
- The WHO has expressed major concerns over China’s ability to deal with soaring Covid infections.
- Covid pessimism in the copper market is being balanced by optimism over the PBOC’s recent efforts to stimulate the property sector, with analysts noting stimulus has begun to feed into the economy.
- The ICSG reports that the market was in a deficit of 307kt from Jan-Oct this year vs a 271kt deficit over the same period last year.
- Hovever, it reports October saw a market surplus of 46kt vs a deficit of 85kt in September.
- October global copper output stood at 2.2mt vs consumption of 2.16mt.
Dow Jones Industrials +1.60% at 33,377
Nikkei 225 +0.46% at 26,507
HK Hang Seng +1.36% at 19,688
Shanghai Composite -0.46% at 3,054
Economics
US auto sales expected to decline in December amid higher vehicle prices and borrowing costs
- Retail sales of new vehicles this month are expected at 1.04m units, down 2.8% YoY, according to industry consultants J.D. Power-LMC Automotive, released today.
- Globally, vehicle sales are projected to end at 80.7m units this year, down 1% on 2021.
- In the US, the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago.
- The consultants expect retail sales in the United States to increase next year with improving inventory levels, with the consultant commenting: "Even with the probability of an economic downturn, pent-up consumer demand from the past two years will keep inventory levels relatively low,"
- US Property sales dipped more than expected in November following declines in housing starts and permits released earlier reflecting higher mortgage rates.
- That marks a 10th consecutive monthly decline, the longest string of falls in data back to 1999.
- “The residential real estate market was frozen in November, resembling the sales activity seen during the Covid-19 economic lockdowns in 2020… The principal factor was the rapid increase in mortgage rates, which hurt housing affordability and reduced incentives for homeowners to list their homes,” the National Association of Realtors commented on the data.
- Separately, consumer confidence picked up in December amid slower pace of headline inflation, although, consumer expectations continued to hover around levels associated with a recession, Bloomberg writes.
- Existing Home Sales (%mom): -7.7% v -5.9% in October and -5.2% est.
- Conference Board Consumer Confidence: 108.3 v 101.4 (revised 100.2) in November and 101.0 est.
China – The PBOC reiterated its support for the property sector in a statement issued post a meeting charied by Governor YYi Gang yesterday.
- The central bank pledged to maintain adequate liquidity in the financial system and improve financial conditions of top tier property developers.
- Separately, the head of a top economic think tank in the country said that the government is considering a roll out of supportive measures for the property market.
- “It seems like the government is going to put forward more concrete measures… the government has to at least stop the decline of the housing market… there are encouraging signs of it,” dean of the National School of Development Peking University said in an interview.
- Chinese shipments overall fell 25% yoy to $41bn in November, marking four straight months of decline.
- Smartphone exports to the US fell to $2.3bn in November
- Exports to US from Xinjiang, China fell 64% as US trade legislation aimed at the use of forced labour combined with falling consumer confidence caused a massive 64% fall in exports from Xinjiang.
- But Xinjiang total exports rose 47% yoy in November to $3.1bn according to local customs data suggesting clothing and fabrics are simply being rerouted through other provinces.
- Exports of Toy, game and sporting goods exports to the US also fell 38% to US$1.95bn in November. Furniture and bedding also fell 30% per cent to US$2.6bn.
Japan – The government is planning to issue US$270bn in debt to fund another year of close to record budget.
- The spending plan that envisages JPY 114tn (~$865bn) comes at a critical time for PM Kishida as he is planning to increase defence spending amid falling approval ratings, Bloomberg writes.
- Adding to already massive amount of outstanding government debt (>260% of GDP, the highest among major economies) may prove to be difficult as the central bank paves the way for policy normalisation.
Germany – January consumer sentiment improved slightly but continued to struggle amid high energy costs, strong inflation and tightening monetary policy cycle.
- GfK Consumer Confidence: -37.8 v -40.1 December and -38.0 est.
UK – The economy dropped deeper into recession in the final quarter of the year as output in the private sector slowed sharply, CBI survey says.
- The activity is expected to have contracted at double the pace of three months through November driven by declines in services and manufacturing sectors.
- CBI expects the UK economy to contract 0.4% in 2023 before returning to growth in 2024.
- UK property transactions rise
- Property transactions rose 13% yoy and 1% mom to 107 in November.
- Anecdotal evidence suggests there is an excess of unsold property in West London, from to houses.
- European bankers who have migrated back to Europe following Brexit are thought to be typical of the profile of many sellers.
- Buy-to-let landlords have also selling as rising mortgage rates offer prospect of reduced yields on rentals with buy-to-let mortgages rising from 2.9% to 6.3% for 2-year fixed rates.
Sweden – Government advises Swedes to prepare for unprecedented power cuts
- Nuclear reactor outages combined with high gas prices and uncertain availability have prompted the Swedish government to warn of potential power cuts (Reuters)
- Minister have asked households to use less energy and to prepare for short and longer term outages.
- Households should have a battery driven radio, torches, bottled water and easy to prepare food as well as a designated room for families to preserve heat.
- Sweden has delayed the restart of a nuclear reactor till late February which combined with other outages has put the nations power supply at risk.
- The Swedish government hads asked the national grid and the energy regulator boost energy security in the short and long term.
Iran – Payment delays hold up ships outside Iranian ports
- Sanctions are thought to have disrupted Iran's financial system such that ships are unable to discharge cargoes (Reuters)
- Over 40 bulk carriers carrying > 2.2mt (worth ~$1bn) are unable to unload due to documentation and hard currency payment issues
- Iran is importing more food than normal as it heads into a second season of drought and expects to import some 5.5mt through to next July from 8mt last year
- Iran would normally be expected to import around 1.1mt in a more regular season.
Currencies
US$1.0628/eur vs 1.0626/eur yesterday. Yen 132.01/$ vs 131.75/$. SAr 17.127/$ vs 17.308/$. $1.211/gbp vs $1.215/gbp. 0.674/aud vs 0.668/aud. CNY 6.978/$ vs 6.9693/$.
Dollar Index: 103.85 vs 103.92 yesterday
Commodity News
Precious metals:
Gold US$1,816/oz vs US$1,816/oz yesterday
Gold ETFs 94.0moz vs US$94.0moz yesterday
Platinum US$1,003/oz vs US$1,002/oz yesterday
Palladium US$1,736/oz vs US$1,744/oz yesterday
Silver US$23.89/oz vs US$23.94/oz yesterday
Rhodium US$12,300/oz vs US$12,300/oz yesterday
Base metals:
Copper US$8,365/t vs US$8,372/t yesterday
Aluminium US$2,398/t vs US$2,391/t yesterday
Nickel US$ 29,750/t vs US$28,435/t yesterday
Zinc US$ 2,992/t vs US$3,051/t yesterday
Lead US$ 2,219/t vs US$2,159/t yesterday
Tin US$ 24,115/t vs US$23,910/t yesterday
Energy:
Oil US$82.55/bbl vs US$79.9/bbl yesterday
- Crude oil prices rallied higher after the EIA reported a 5.9mb US crude inventory draw last week, in addition to a 3.7mb SPR release, with a 2.5mb build in gasoline stocks and refinery utilisation down 1.3% to 90.9%.
- European energy prices continue to tumble with expectations for mild weather extending into next week.
Natural Gas US$5.417/mmbtu vs US$5.519/mmbtu yesterday
Uranium UXC US$48.10/lb vs US$48.10/lb last week
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$110.74/t vs US$109.4/t
Chinese steel rebar 25mm US$555.0/t vs US$581.0/t
Thermal coal (1st year forward cif ARA) US$225.0/t vs US$225.0/t
Thermal coal swap Australia FOB US$379.0/t vs US$379.0/t
Coking coal swap Australia FOB US$275.0/t vs US$275.0/t
Other:
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$105,001/t vs US$100,801/t
Lithium carbonate 99% (China) US$73,538/t vs US$73,538/t
China Spodumene Li2O 5%min CIF US$6,100/t vs US$6,010/t
Ferro-Manganese European Mn78% min US$1,312/t vs US$1,312/t
China Tungsten APT 88.5% FOB US$320/mtu vs US$320/mtu
China Graphite Flake -194 FOB US$830/t vs US$880/t
Europe Vanadium Pentoxide 98% 8.1/lb vs US$8.1/lb
Europe Ferro-Vanadium 80% 33.50/kg vs US$33.75/kg
China Ilmenite Concentrate TiO2 US$325/t vs US$325/t
Spot CO2 Emissions EUA Price US$90.5/t vs US$90.4/t
Brazil Potash CFR Granular Spot US$510.0/t vs US$510.0/t
Battery News
Nippon Steel eyes green steel supply chain whilst ramping up coking coal investments
- Nippon Steel is eyeing hydrogen-reduced iron to greenify its steelmaking supply chain.
- Reduced iron removes oxygen from iron ore to limit the melting procedure. Nippon is hoping hydrogen electrolysers will enable this.
- The Company’s President also stated that Nippon wants ‘to ensure a stable procurement of coking coal by increasing our interest’ in mines. The move comes as decarbonisation policy continues to see coal mine closures.
Company News
AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) 4.7p, Mkt Cap £69m – lower quarterly production following plant expansion, though record tin production in Nov 2022
- Afritin has released its Q3 (ending 30th Nov) production update for the Uis Mine in Namibia.
- Tin concentrate production fell 32% to 145 tonnes
- Tin contained in concentrate fell 35% QoQ to 87 tonnes
- Grade fell slightly to 0.14% Sn
- AISC increased 32% to $38,570/t
- Tin price achieved over the quarter was $22,625/t
- Production was impacted by a planned 5-week shutdown during the quarter which was required to complete the construction and commissioning of the expanded crushing and tin concentrating circuits.
- Excluding the shutdown period, an average of 90kt of ore was processed at a higher rate of 107tph.
- The targeted result of the plant expansion is an increase in production to 1,200tpa of tin concentrate vs current capacity at 780tpa.
- The production ramp-up period is estimated to last for 3 months, from November 2022 to January 2023.
- During the first month following the expansion, November 2022, the ramp up target was exceeded by 20% at 88t of tin concentrate – a new monthly production record for the company.
Beowulf Mining PLC (AIM:BEM)* 3.75p, Mkt Cap £31m – High-grade trenching results at Räpysjärvi graphite prospect
- Beowulf has released results of a trenching programme undertaken by the company’s wholly-owned subsidiary, Grafintec, who own the Räpysjärvi natural flake graphite prospect in Eastern Finland.
- Samples were taken from four trenches in different locations selected as a result of electromagnetic surveys, with all trenches within the main conductive Zone 1.
- Flake graphite mineralisation was discovered in all four trenches, with highlights:
- RAA-TR1-22: 10.6m at 4.33% TGC and 3.8m at 5.8% TGC
- RAA-TR2-22: 9.96% TGC in grab sample;
- RAA-TR3-22: 5.8m at 7.25% TGC and 7.1m at 7.4% TGC; and
- RAA-TR4-22: 1.0m at 26% TGC
- The wider Räpysjärvi EM conductive area covers 1.1km2 including 13 highly conductive zones, some of which will be tested in 2023.
- The project is just 8km from Grafintec’s Aitolampi project, where the company has a MRE of 26.7mt at 4.8% TGC for 1,275,000 tonnes of contained graphite.
- Kurt Bude, CEO commented: "To have a high-grade intersection with 26 per cent Total Graphitic Carbon is tremendous and overall these are very encouraging assay results.Grafintec announced, in October, that the EM conductive anomalies at Räpysjärvi are more extensive than seen at Aitolampi and therefore could indicate significant potential for a larger tonnage of graphite mineralisation in the area.”
- "With only one of thirteen identified EM conductive zones trenched and assayed at Räpysjärvi, we are excited about the potential and what continued geological mapping, sampling and possible drilling can deliver in 2023."
*SP Angel acts as nomad and broker to Beowulf
Deep Yellow Ltd (ASX:DYL) A$0.72, Mkt cap A$528m – Successful completion of Omahola drilling campaign and results
- Uranium explorer Deep Yellow provides an update on its Omahola drilling campaign in Namibia.
- The Company has now completed a two-stage RC drill program across 77 holes.
- Phase 1 drilling comprised of 40 holes over 5,252m.
- Phase 2 drilling saw 77 holes drilled for 4,529m.
- Multiple uranium intersections were reported at Inca South.
- The most recent campaign saw 35 holes drilled for 1,979m – this targeted a prospective continuation of the lithological-structural zone under cover.
- The drilling intersected up to 40m of thick tertiary cover, with leucogranites seeing radiometrically anomalous results. They only locally contain thin uranium mineralisation over 100ppm eU3O8.
- The campaign resulted in the identification of three new targets.
- Targets are seeing thick, uranium mineralised stacked alaskites. In addition, a magnetic anomaly extending south-west of Ongolo South is noting mineralised alaskite intrusions.
- The most advanced targets identified are thick and stacked mineralised alaskites set to be explored in the Q1-2023 campaign.
- Omahola hosts a Measured, Indicated and Inferred Resource of 125.2Mlb at 190ppm U3O8 using a 100ppm cut-off.
- RC drilling in 2023 will focus on mineralised alaskites west of MS7.
Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) £142, Mkt cap £367m – Report of appointment of Christine Coignard as Independent non-executive director
- Diversified royalty streaming company Ecora reports a change of directorate.
- Christine Coignard has been appointed independent non-executive director of the Company from 1st January 2023.
- Christine was Head of Investment, Strategy and Corporate Finance at Norilsk Nickel and has a 30 years’ experience across the mining and finance sectors.
Glencore PLC (LSE:GLEN) 564p, Mkt cap £72bn – Canada blocks proposed coal mine in British Columbia
- Glencore’s proposed Sukunka Coal Mine has been blocked, with the government citing environmental damage.
- The government commented: "After careful deliberation, the Government of Canada has determined the significant adverse environmental effects of the proposed Sukunka Coal Mine Project, an open-pit metallurgical coal mine located near Tumbler Ridge, British Columbia, could not be mitigated,"
- The project was expected to produce 3mtpa of coking coal over a 20 year life-of-mine for export to overseas steel manufacturers.
GreenRoc Mining PLC (AIM:GROC) 5.00p, Mkt Cap £5.9m – LGL seam shows high grade graphite over large, mineable widths in Greenland
- GreenRoc Mining PLC (AIM:GROC) reports the full set of drill core assay results from the 2022 Phase Two drilling programme at the Amitsoq Graphite Project in South Greenland.
- The results confirm consistently high-grade graphite within the Amitsoq deposit and the presence of mineable widths.
- The results will be used to update the mineral resource, due in January 2023
- Mineable widths of >2m of graphite were seen in 8 holes in the UGL seam with graphite grades of 13.52-20.92% C(g).
- Mineable widths also seen in all 19 holes into the LGL seam
- Some holes show mineralisation from both the LGL1 and LGL2 seams with graphite grades ranging from 17.80-24.52% C(g).
- The LGL thickens from 2.52-13.12m from drill pads H and I and from 12->20m from drill pads J and C2 towards the north
- Best results:
- 6.89m grading 24.52% C(g) in the LGL in AM_DD_018
- 20.77m grading 23.32% C(g) in the LGL in AM_DD_035
- 20.23m grading 20.92% C(g) in the LGL in AM_DD_037
- Analysis shows an overall variation for UGL of between 13.52% C(g) over 2.82m for hole AM_DD_027 to a maximum of 20.92% C(g) over 3.93m for hole AM_DD_018.
- Grades for the LGL vary between 17.80% C(g) over 6.45m for hole AM_DD_033 to a maximum of 24.52% C(g) over 6.89m for hole AM_DD_018.
Conclusion: These are very positive results highlighting good grades over large mineable widths. The analysis shows significantly higher grades in the LGL of around 20-23% C(g) with thicknesses sometimes four to five times that seen in the UGL seam.
Ivanhoe Mines Ltd. (TSX:IVN, OTCQX:IVPAF) C$11.12, Mkt Cap C$13.5bn – Ivanhoe refutes Bloomberg inference over ‘copper corruption’ case in DRC
- Ivanhoe Mines has responded to a headline published Bloomberg on Tuesday relating to links with Mr. Vidiye Tshimanga inferring to an ongoing ‘copper corruption’ case in the DRC.
- The company states this is not true, though the case appears to have had a negative impact on Ivanhoe’s share price which fell from C$11.25 to C$9.97 on Tuesday.
- Ivanhoe states the following:
- In April 2021, Ivanhoe Mines signed a term sheet with Congo Bantu Mining SARL (Cobamin), a company in which Mr. Tshimanga is a shareholder. The term sheet envisaged an earn-in for three exploration permits held by Cobamin. Ivanhoe Mines followed its internal anti-corruption processes and had due diligence carried out by a London-based consultant as well as a review by a major US law firm and a DRC legal adviser.
- For more than a year after the execution of the term sheet, Ivanhoe Mines tried to negotiate final agreements with Cobamin. These final agreements were never signed, considering that Cobamin kept on renegotiating the terms initially set out in the term sheet. No payment was made to Cobamin under this proposed agreement.
- On September 3, 2022, Ivanhoe Mines filed a request for arbitration, as well as an application for emergency measures against Cobamin with the International Chamber of Commerce (ICC). On September 15, 2022, while the arbitration process was underway, a video of Mr. Tshimanga was posted on social media as referenced in the Bloomberg article dated December 20, 2022.
- It is expected that the main arbitration will commence during the first quarter of 2023. Ivanhoe Mines will then have to take a position on whether it wishes to confirm its existing request for specific performance, whether it wishes to convert its request into a request for damages, or whether it wishes to drop the arbitration.
- Ivanhoe Mines is working with its legal counsel to determine the best path forward for its shareholders in terms of this arbitration proceeding. It should be noted that this matter does not relate whatsoever to Ivanhoe's existing projects in the DRC, including the Western Foreland Exploration Project licences.
- Ivanhoe Mines is not involved with the referenced DRC corruption case against Mr. Tshimanga, and the only "link" the company has to the individual is through the term sheet with Cobamin and the ongoing arbitration process.
Conclusion: It is difficult to be sure that the principals in every transaction are free and clear of potential corruption allegations particularly in certain emerging markets where corruption was commonplace for many years. We are reminded that corruption was still tax deductible in France till September 2000 and the UK till April 2002.
MetalsTech Ltd (ASX:MTC) A$0.47, Mkt cap A$79m – Chifeng Gold buys $3m of stock in Metalstech to support mineral resource update on Sturec Gold project in Slovakia
Arc Minerals Limited (AIM:ARCM)*
- Historic investors in Ortac, now reformed into Arc Minerals will remember Ortac’s work on the Sturec Gold project in Slovakia.
- The 1.5moz gold deposit lies close to the town of Kremnicia in Slovakia where tunnelling under the town is thought to connect directly into underground workings of the mine.
- Arc Minerals agreed the sale of the Sturec project to MetalsTech in November 2019 for a gross consideration of US$8m.
- Chifeng Jilong Gold Mining Co Ltd (SHA: 600988) has a market capitalisation of around US$4.4bn and is chaired by Mr Wang Jianhua, previously Chairman of Shandong Gold and President of Zijin Mining.
*SP Angel acts as Nomad and broker to Arc Minerals
OZ Minerals Limited (ASX:OZL) A$27.8, Mkt cap A$9.3bn - Oz Minerals unanimously recommends the A$9.6bn ($6.4bn) deal with BHP Group following a four-week exclusive due diligence period
BHP Group Ltd (LSE:BHP, ASX:BHP) 2579p, Mkt cap £130bn
- BHP and Oz signed a scheme of implementation deed this morning at the A$28.25/sh offer price announced mid-November after a failed approach at $25/sh in August.
- The final offer price represents a ~49% premium to the close price in early August before Oz revealed BHP’s approach.
- All cash deal, the largest in the mining space in Australia in 11 years, will be funded through existing BHP’s cash balances as well as the proceeds of a new loan facility.
- The deal increases BHP’s exposure to copper as well as adds development West Musgrave nickel/copper project to its portfolio.
No.1 in Copper: “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”
No1. In Gold: “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”
The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020
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
Rob Rees – Rob.Rees@spangel.co.uk - 0203 470 0535
Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471
SP Angel
Prince Frederick House
35-39 Maddox Street London
W1S 2PP
*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
DISCLAIMER
This note is a marketing communication and comprises non-independent research. This means it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.
This note is intended only for distribution to Professional Clients and Eligible Counterparties as defined under the rules of the Financial Conduct Authority and is not directed at Retail Clients.
This note is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose.
This note has been issued by SP Angel Corporate Finance LLP (‘SPA’) to promote its investment services. Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. The information contained herein is based on sources which we believe to be reliable, but we do not represent that it is wholly accurate or complete. All opinions and estimates included in this report are subject to change without notice. It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. SPA is not responsible for any errors or omissions or for the results obtained from the use of such information. Where the subject of the research is a client company of SPA we may have shown a draft of the research (or parts of it) to the company prior to publication to check factual accuracy, soundness of assumptions etc.
Distribution of this note does not imply distribution of future notes covering the same issuers, companies or subject matter.
Where the investment is traded on AIM it should be noted that liquidity may be lower and price movements more volatile.
SPA, its partners, officers and/or employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s).
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%