SP Angel . Morning View . Wednesday 11 01 23
Copper hits $9,033/t as US$ trades close to a seven-month low
MiFID II exempt information – see disclaimer below
AfriTin Mining (LON: ATM) – Name change to Andrada Mining Limited from today
Azure Minerals Ltd (ASX:AZS) – SQM to invest A$20m for 20% stake in Azure
Blencowe Resources PLC (LSE:BRES)– Bulk samples exported for final stage metallurgical testing
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* – Valuation 48p/s – Drilling from Carn Brea identifies new mineralised zone south of South Crofty
European Lithium Ltd (ASX:EUR, OTCQB:EULIF) – Retraction of the announcement on updated DFS results
Ferrexpo PLC (LSE:FXPO) – Q4 Pellet production drops 85% on loss of electrical power supply and logistical constraints in Ukraine
Filo Mining Corp (OTCQX:FLMMF, TSX-V:FIL) – Assay results from the Filo del Sol Project, Argentina
Lake Resources NL (ASX:LKE, OTCQB:LLKKF) – Kachi M&I category doubled to 2.2mt LCE and Lilac DLE demonstration plant critical milestones hit
Talga Group* (ASX: TLG) – LoI signed with EV battery manufacturer Verkor
Copper climbs past $9,000/t as traders’ optimism over China improves and stocks remain low
- Copper rallied again, climbing to c.$9,100/t for the first time since June, before giving back some gains.
- The move came as base metals across the board rallied on sustained optimism over the triple combination of:
- China’s reopening from Covid, fresh rounds of stimulus measures from Beijing and bets on cooler rate hikes from Jerome Powell’s Federal Reserve.
- Global copper inventories remain near 15-year lows, although these have climbed slightly higher in recent weeks.
- Copper’s major move higher comes despite futures remaining in contango and the Yanghsan copper cathode premium has fallen over 70% in the past 3 months, highlighting relative supply buoyancy in domestic China.
- Low inventory combined with power cuts to Zambian copper miners and some potential index reweighting are serving to lift prices with short sellers being lifted out of the market.
- Lower US inflation rates also the market view of a slowdown in US interest rate rises avoiding a hard landing for the US economy, supporting growth and stimulating global copper demand.
- Zambia rations power to miners as water levels fall at Kariba hydropower dam.
- The Kariba Dam jointly owned by Zambia and Zimbabwe with hydropower contributing around 68% of Zimbabwe power supply and ~85% of Zambian power.
- Zesco, the Zambian power utility says it is being forced to ration power to miners in Zambia as water levels in Lake Kariba fall to 1.66% of usable storage.
- President Hichilema in Zambia recently stated “Many factors have contributed to our current state of low electricity generation but most importantly systems and information sharing, including optimal use of this shared resource are being largely ignored. We will engage all stakeholders about this,”
- Mnangagwa and Hichilema were meant to have met on Sunday/Monday – aiming to ‘foster a fluid working relationship’ with Zambia calling for higher penalty fares on Zimbabwe for overdrawing of water from Kariba.
- Both the Kariba North Bank Power Station in Zambia and the Kariba South Bank Power Station on the Zimbabwean side are affected according to the Zambezi River Authority.
- The two hydropower plants have roughly equal power capacity accounting to 2.13GW with the Zimbabwe plant capacity now at 1,050MW and Zambian side at 1,080MW.
- Zambia has accused Zimbabwe of drawing more than its fair share of power from the hydropower dam on the south side of Lake Kariba
- A lack of rainfall upstream of Lake Kariba led to a record low level of 0.77% at end December though water levels have started to rise due to local rainfall on and around the lake bringing water levels back up to 1.66% on 9th January.
Key copper stocks:
Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)* – Pivoting towards more copper production from the current gold and copper mining operations in Azerbaijan.
- AAZ also hold 20% of Libero Copper and Gold in Colombia and Canada.
Arc Minerals Limited (AIM:ARCM)* – waiting for Anglo American to complete due diligence on the exploration licenses in Zambia for up to $100m of investment into Arc’s copper projects.
BE Metals* (CVE: BMET) – World-class exploration team with licenses towards south east of Zambia.
Empire Mining (TSX-V:EPC)* – Pitfield ‘Giant’ Copper prospect – the board are particularly excited on this discovery.
Empire Mining (TSX-V:EPC)* – More than copper than tin drilling in certain structures at United Downes
Filo Mining Corp (OTCQX:FLMMF, TSX-V:FIL) – Assays at Filo del Sol Project in Argentina show 1,056m at 0.86% CuEq from 282m, including 670m at 0.97% CuEq from 370m.
Tertiary Minerals PLC (AIM:TYM)* – copper exploration licenses in Zambia .
Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF)* – Permitting the Empire open pit copper project at the site of the historic underground Empire mine
Rambler Metals and Mining PLC (AIM:RMM, TSX-V:RAB)* – currently suspended pending completion on the renegotiation of their debt facility.
SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF)* – Working through the BFS on the humongous Alpala copper mine project in Ecuador.
- We suspect one of the other significant exploration discoveries might produce SolGold’s first copper mine given the sheer scale of the Cascabel mining project.
*SP Angel act as Nomad or financial advisor and broker to these companies
Gold steadies higher in run-up to US inflation data
- Gold prices have held their ground around the $1,885/oz mark following a 15% rally since the end of October.
- Gold has been propelled by the combination of a weaker dollar and falling US Treasury yields, with the dollar down 9.8% over the past three months and US 10 year yields shedding close to 70bp over the same period.
- Bullion’s momentum started alongside signs of peaking US headline inflation, with a steady decline in CPI data supporting bets on the Federal Reserve easing rate hikes.
- Focus turns to tomorrow, with US CPI data and jobless claims are due. Gold’s recent strength points to expectations of a further step down in inflationary pressures.
- Gold has seemingly usurped the dollar as a primary safe haven asset in recent months, with concerns over slowing growth encouraging inflows into the metal.
Saudi Arabia raises $3.2bn firm to target strategic metals opportunities
- Saudi’s sovereign wealth fund and state miner Maaden eyes battery metal targets with new sovereign wealth fund.
- The non-operating partner will take minority equity positions for iron ore, copper, nickel, and lithium projects.
- Maaden recently announced plans for a $126m equity investment in Ivanhoe Electric.
Dow Jones Industrials +0.56% at 33,704
Nikkei 225 +1.03% at 26,446
HK Hang Seng +0.41% at 21,420
Shanghai Composite -0.24% at 3,162
Economics
World Bank downgrades global growth forecast sharply to 1.7% in 2023
- World Bank lowers GDP forecast to 1.7% from 3.0% six months ago in Global Economic Prospects
- “Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia’s invasion of Ukraine.”
- 2023 GDP growth:
- World: 1.7%, downgraded by -1.3%.
- US: 0.5%, downgraded by -1.9%.
- Eurozone: 0.0%, downgraded by -1.9%.
- Japan: 1.0%, downgraded by -0.3%.
- China: 4.3%, downgraded by -0.9%.
- 2024 GDP growth:
- World: 2.7%, downgraded by -0.3%.
- US: 1.6%, downgraded by -0.4%.
- Eurozone: 1.6%, downgraded by -0.4%.
- Japan: 0.7%, upgraded by 0.1%.
- China: 5.0%, downgraded by -0.1%.
US - NFIB Small Business Optimism Index falls 2.1pts to 89.8 in December vs.
- Negative sentiment persists within the small business community as firms struggle to rebuild balance sheets following Covid disruption.
- Industrial output fell 1.1% in November vs 2.8% in October and -1.3% yoy in November vs 3.2% in October
Asian borrowers face $314bn worth of bond debt due this year
- Bloomberg data suggests Dollar-denominated debt for heavy-borrowing Asian nations maturing this year stands close at over $300bn.
- Approximately 22% of that debt is either junk grade or lower than BBB- equivalent.
- Major firms including India’s Vedanta Resources and China’s Evergrande face a major debt reckoning this year.
- Moody’s suggests that speculative-grade corporate defaults could quadruple this year in its worst-case scenario, with rate hikes across the board placing immense pressure on company balance sheets.
China - Total social financing was CNY1,310tn in December vs CNY 1,990tn in November
Eurozone – ECB Board member highlights persistent underlying inflation and says inflation will not subside by itself.
“Overall, the economic environment remains challenging. The latest increases should not be misinterpreted as a general turnaround. The risks of recession remain.”
- Goldman Sachs (NYSE:GS) has upgraded its economic forecast for Europe and is no longer forecasting recession in the Eurozone.
- This is despite energy prices pulling back
- Sentix Investor Confidence improved to -17.5 in January from -21
- Sentix Current Situation Index rose to -19.3, a four month high from -20.0
- Sentix Expectations rose to -15.8, highest since last February from -22.0
- The sentiment surveys indicate substantial improvement over the past month as the threat of energy paralysis subsides
Mexico - CPI rose 0.4% in December vs 0.6% in November and 8.35% yoy in December vs 8.5% in November
Brazil - CPI 0.6% in December vs 0.4% in November and 5.8% in December vs 5.9% in November
Turkey - Unemployment held steady at 10.2% in November
participation rate 54.1% (53.6%)
South Africa – ESKOM CEO Andre de Ruyter survives assassination the day after his resignation from Eskom
- When they say, it’s a tough job, they are not kidding at Eskom.
- The assassins are alleged to have poisoned de Ruyter on 13th December with cyanide.
Japan – Uniqlo owner will hike employee wages by as much as 40% amid growing inflation pressures, FT writes.
- Fast Retailing, Asia’s largest clothing retailer and owner of the Uniqlo fashion brand, said the pay rise is aimed at making the group’s remuneration system more globally competitive.
- The news follows up on the announcement that Japan’s core inflation hit its highest in nearly 41 years.
- The news also raises that the central bank may need to start reconsidering its expansionary monetary policy at a time when global growth outlook is weakening.
Ukraine – Russian forces said to have shelled their own troops and then marched over the bodies of Russian soldiers at Bakhmut
- While Russian forces appear to have taken Bakhmut and Soledar, Ukraine is reported to still control supply routes in the area.
Currencies
US$1.0741/eur vs 1.0741/eur yesterday. Yen 132.43/$ vs 131.95/$. SAr 17.038/$ vs 16.979/$. $1.216/gbp vs $1.217/gbp. 0.690/aud vs 0.691/aud. CNY 6.772/$ vs 6.780/$.
Dollar Index 103.29 vs 103.17 yesterday.
Commodity News
Precious metals:
Gold US$1,882/oz vs US$1,874/oz yesterday
Gold ETFs 94.1moz vs US$94.1moz yesterday
Platinum US$1,092/oz vs US$1,080/oz yesterday
Palladium US$1,788/oz vs US$1,788/oz yesterday
Silver US$23.91/oz vs US$23.51/oz yesterday
Rhodium US$12,300/oz vs US$12,400/oz yesterday
Base metals:
Copper US$ 9,033/t vs US$8,801/t yesterday
Aluminium US$ 2,471/t vs US$2,420/t yesterday - Alumina - Western Australian alumina refinery, Alumina Limited (ASX:AWC) cut guidance by 30% due to gas shortage.
Nickel US$ 27,825/t vs US$27,575/t yesterday
Zinc US$ 3,188/t vs US$3,164/t yesterday
Lead US$ 2,187/t vs US$2,218/t yesterday
Tin US$ 26,890/t vs US$25,600/t yesterday
Energy:
Oil US$79.7/bbl vs US$79.1/bbl yesterday
- Crude oil prices were broadly unchanged after the US American Petroleum Institute reported an unexpected 14.9mb crude oil build and 1.1mb build in distillate inventories for the week ending January 6.
- European energy prices fell on warmer weather with Russian gas flows relatively unchanged over the past few days and months at 35.5mcm/d day via the Sudzha gas pumping station.
Natural Gas US$3.676/mmbtu vs US$3.728/mmbtu yesterday
Uranium UXC US$50.20/lb vs US$49.80/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$118.5/t vs US$116.6/t
Chinese steel rebar 25mm US$616.9/t vs US$616.2/t
Thermal coal (1st year forward cif ARA) US$171.0/t vs US$225.0/t
Thermal coal swap Australia FOB US$362.0/t vs US$365.5/t
Coking coal swap Australia FOB US$308.0/t vs US$314.0/t
Other:
Cobalt LME 3m US$49,000/t vs US$49,000/t
NdPr Rare Earth Oxide (China) US$106,462/t vs US$106,369/t
Lithium carbonate 99% (China) US$66,372/t vs US$66,757/t
China Spodumene Li2O 5%min CIF US$5,970/t vs US$5,970/t
Ferro-Manganese European Mn78% min US$1,327/t vs US$1,327/t
China Tungsten APT 88.5% FOB US$322/mtu vs US$322/mtu
China Graphite Flake -194 FOB US$885/t vs US$885/t
Europe Vanadium Pentoxide 98% 8.9/lb vs US$8.9/lb
Europe Ferro-Vanadium 80% 36.75/kg vs US$36.75/kg
China Ilmenite Concentrate TiO2 US$342/t vs US$342/t
Spot CO2 Emissions EUA Price US$84.2/t vs US$80.7/t
Brazil Potash CFR Granular Spot US$505.0/t vs US$505.0/t
Battery News
Tesla posts job openings for proposed lithium refinery in Texas
- Various news outlets are reporting that Tesla is starting to hire for its new lithium refinery in Corpus Christi, Texas.
- Tesla submitted the proposal for the project in November 2022, with the purpose of “developing a battery-grade lithium hydroxide refining facility, the first of its kind in North America, as well as facilities to support other types of battery materials processing, refining, and manufacturing and ancillary manufacturing operations in support of Tesla’s sustainable product line.”
Company News
AfriTin Mining (LON: ATM) 5.6p, Mkt cap £85m – Name change to Andrada Mining Limited from today
- We are not sure what was wrong with the original AfriTin name but we are impressed the company has given us an interesting reason for the new name.
- AfriTin is based in Africa and is mining tin, so it does what it says on the tin, so to speak, but maybe not so!
- Management tell us “the name Andrada reflects the Company's expanding lithium and tantalum resources alongside its existing tin production.
- The new name originates from José Bonifácio de Andrada e Silva, the Brazilian mineralogist and professor who first discovered petalite and spodumene, which are major lithium bearing minerals and a precursor to the identification of lithium. Management believes that the Uis licence could host a globally significant lithium resource.”
- AfriTin are drilling the pegmatite dykes on the ML133 license for lithium with recent drill intersections showing:
- 76 m at 1.56% Li2O from 136 m to 212 m for drill hole V1V2062;
- 26 m at 1.00% Li2O from 180 m to 206 m for drill hole V1V2039; and
- 25 m at 1.65% Li2O from 193 m to 218 m for drill hole V1V2065..
- The same drill holes also show some grade of tin and tantalum at:
- 90 m grading 0.164% Sn, 73 ppm Ta, and 1.40% Li2O from 134 m to 224 m
- and 12 m at 0.159% Sn, 182 ppm Ta, 0.59% Li2O from 115 m to 127 m for drill hole V1V2062;
- 96 m at 0.150% Sn, 68 ppm Ta and 0.72% Li2O from 142 m to 238 m for hole V1V2039;
- 71 m at 0.166% Sn, 81 ppm Ta, and 1.05% Li2O from 157 m to 228 m;
- and 10 m at 0.091% Sn, 323 ppm Ta and 0.41% Li2O from 139 m to 149 m for drill hole V1V2065;
- Chip samples: there were also some tantalising chip samples taken from surface outcrop showing:
- 13 metres (m) at 1.93% Li2O
- 24m at 1.65% Li2O
- 0.97 % Li2O
- The weighted average of the 20 highest lithium grade sample lines combined provided 200m at 1.25% lithium oxide according to AfriTin.
- The ML133 license is just 35km from AfriTin’s Uis tine mine in Namibia which should help from a infrastructure and logistics perspective.
Conclusion: we were encouraged by the Li2O grades in the surface chip samples and by the 90m intersection in drill hole V1V2062 grading 1.40% Li2O but are concerned at the depth of the higher-grade mineralisation in the drilling with the higher >1% Li2O grades reporting from 134m down the drill hole.
The results indicate more work will need to be done to establish a near-surface lithium resource capable of producing a spodumene concentrate grade of >5% Li2O, in our view.
Personally, we like the old AfriTin name and at least they are keeping the wonderful ticker ‘ATM’. Only question is whether this ATM is ready to dispense cash to shareholders or will it require refilling before it starts paying returns?
Azure Minerals Ltd (ASX:AZS) A$0.30, Mkt Cap A$91m – SQM to invest A$20m for 20% stake in Azure
- Azure reports that one of the world’s largest lithium producers, SQM, has made an initial A$4.2m investment into Azure and intends to invest a further A$15.8m to hold a 19.99% interest in Azure.
- SQM will invest at a price of $0.2564 per share, a 13.9% premium on the last traded price of $0.225 per share on 6 January 2023.
- Funds will be used to progress the company’s Andover project in Western Australia, held in a 60/40 JV with Mark Creasy the minority shareholder.
- Azure has already discovered two Ni-Cu-Co deposits at Andover and released a maiden MRE for the Andover Deposit of 4.6Mt @ 1.11% Ni, 0.47% Cu and 0.05% Co
- The company expects to release a MRE for the Ridgeline deposit in Q1 2023, which is adjacent to the Andover project.
- Azure has commissioned Strategic Metallurgy to complete a testing programme on nickel-copper-cobalt mineralisation at both deposits, with data used to design a process flowsheet that will produce separate nickel and copper sulphide concentrates at the Project.
- Recently, Azure identified outcropping lithium bearing pegmatites over a 8 km x 4km corridor at Andover, with surface sample results as high as 3.32% Li2O.
- Azure’s Managing Director Mr Tony Rovira commented: “The new relationship will allow Azure to draw upon SQM’s technical expertise in pegmatite-hosted lithium exploration, project development, production and marketing, providing Azure with strong support as we look to develop the Andover lithium assets.”
Blencowe Resources PLC (LSE:BRES) 4.7p, Mkt Cap £9.2m – Bulk samples exported for final stage metallurgical testing
- The Ugandan Government has approved the export of materials from its Orom-Cross Graphite Project to Chinese testing facilities to enable final bulk metallurgical test work.
- The Ugandan Government does not usually allow the export of unprocessed materials, though it is necessary in this instance for ultimately achieve binding offtake contracts for production from the Project.
- The export permits for 100t of bulk raw ore materials and 400 litres of local groundwater will enable the Company to export a representative bulk sample from the initial 5 years of production.
- Bulk testing follows bench scale metallurgical testing with SGS in Canada (30kgs) and small-scale pilot plant work (130kg) in Perth, Australia.
- Initial production at Orom-Cross is expected to be 55,000tpa with average annual production of 101,000tpa over an initial 14-year life of mine (PFS July 2022)
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* – 17.25p, Mkt cap £85m – Drilling from Carn Brea identifies new mineralised zone south of South Crofty
Valuation 48p/s
- Cornish Metals has released results from eight drill holes in the Carn Brea South exploration area located on the southern edge of its South Crofty licence area and ESE of the mine.
- The company confirms that all the holes. Which “tested the up-dip, near-surface, extensions of the historic Great Flat Lode” and also the potential for tin mineralisation in a new target called the “Wide Formation”, inferred to lie parallel to, north of, and beneath the Great Flat Lode” intersected mineralisation.
- Among the results highlighted in the announcement are:
- A “New discovery of high-grade tin mineralisation in the Wide Formation” where hole CB21-002 intersected 2.77m at an average grade of 0.99% tin from a depth of 649.93m within a “12.14m wide zone of strong alteration and disseminated tin mineralisation”; and
- “Multiple high-grade tin intersects from the Great Flat Lode” including
- A 2.00m wide intersection averaging 1.44% tin from a depth of 160.6m in hole CB21-003; and
- A 2.90m wide intersection of a splay lode related to the Great Flat Lode averaging 1.66% tin from a depth of 112.98m in hole CB21-004 as well as 5.00m of the Great Flat Lode averaging 0.97% tin from 201.97m depth; and
- A 3.04m wide intersection of an “unknown” structure averaging 1.08% tin from a depth of 64.90mm in hole CB21-005 as well as 3.38m of the Great Flat Lode averaging 0.88% tin from 229.25m depth
- Hole CB21-005 also intersected 2.24m at an average grade of 3.93% tin from 241.38m in a splay off the Great Flat Lode and another splay which averaged 1.64% tin over 3.80m from 245.54m depth
- The company confirms that the “geology in the Carn Brea South exploration area is identical to that at South Crofty, comprising metasediments (locally termed “killas”) which overlie an intrusive granite body”.
- Cornish Metals says that “The Great Flat Lode was extensively mined for tin in the 1800s in several mines over a 5km strike length and from depths ranging from surface to 680 metres below surface”.
- The Wide Formation is “inferred to lie parallel to, north of, and beneath the Great Flat Lode … [and the company explains that] … No mining has ever been carried out on the Wide Formation”.
- CEO, Richard Williams, explained that “The Wide Formation has been interpreted to exist from exploration drilling conducted in the 1960s but has never been followed up until now” which he said “demonstrates the exploration potential of the region”.
- Mr. Williams said that “we believe we have a very compelling target to explore within and immediately adjacent to the South Crofty Underground Permission area” where the company has already defined an indicated resource of 2.08mt at an average grade of 1.59% tin within the granite-hosted Lower Mine area as well as an additional 1.94mt of inferred resources at an average grade of 1.67% tin.
- The killas-hosted Upper Mine area hosts an indicated resource of 277kt at an average grade of 1.01% on a tin equivalent basis with an additional 493kt of inferred resources averaging 0.93% tin equivalent.
- Commenting further on the exploration results Mr. Williams said that “We look forward to the next phase of drilling to determine the extent of this discovery”.
Conclusion: The Carn Brea drilling has identified additional mineralisation south of the South Crofty mine providing an opportunity for further resource expansion as exploration progresses. The identification of previously unmined mineralisation in the ‘Wide Formation’ underlines the continuing exploration potential in an area with an extensive mining history.
*SP Angel acts as Nomad and Broker to Cornish Metals.
European Lithium Ltd (ASX:EUR, OTCQB:EULIF) A$0.08, Mkt Cap A$115m – Retraction of the announcement on updated DFS results
- The Company retracted the announcement released today entitle “Updated DFS Shows Robust NPV of $1.5b”.
- The team said work to finalise the DFS is ongoing and is anticipated to be completed by the end of Q1/23.
- The DFS announcement included highlights of the 100% Wolfsber Lithium Project including an updated NPV calculation received from DRA Global who is manging the DFS.
- Results were based on the interim production target and PFS financial model that was completed by DRA in 2018.
- The project is estimated to cost US$866m for production of 8.8ktpa LiOH at $15,510/t opex generating $1.5bn in pre-tax NPV6%.
- On the LiOH price used in the study, the announcement says that NPV was “based on Fastmarkets spot prices for LiOH with a discount applied” without providing further details.
- The life of mine is targeted at ~15y supporting an underground operation at 780ktpa.
- The mine schedule used 100% of the Measured and Indicated category.
- The Wolfsberg MRE stands at 9.7mt at 1.03% Li2O in the Measured and Indicated category and 3.1mt at 0.90% Li2O in the Inferred resource.
Ferrexpo PLC (LSE:FXPO) 169, Mkt cap £999m – Q4 Pellet production drops 85% on loss of electrical power supply and logistical constraints in Ukraine
- Ferrexpo reports that Q4 pellet production fell by 85% compared to Q4 2021 to 457,000t.
- The Q4 reduction brings annual 2022 output to 6.2mt (down 46% compared to 2021) and is “primarily due to the loss of electrical power for the majority of the quarter, which was partially restored in late December, in addition to existing constraints … [including the loss of access to Black Sea ports and disruption of the Ukrainian rail network] … relating to Russia's invasion”.
- The company reports a 31st December 2022 net cash position of US$105m (end December 2021 balance of US$117m).
- Ferrexpo explains that its operations “continue to focus on the production of high grade forms of iron ore, with 100% of output grading 65% Fe or above in 4Q 2022”.
- The company says that “Given recent operational disruptions, the Group elected to reduce output of higher grade Direct Reduction ("DR") Pellets (67% Fe) during the period. DR pellets represented 6% of total pellet production in 2022 (2021: 4%), and the Group expects to continue to increase its focus on this particular product in the coming year”.
- Commenting on what he described as “an exceptionally difficult year for anyone connected to Ukraine” CEO, Jim North, said that “our operating and marketing teams have remained resilient throughout the war, and we remain committed to supporting the people of Ukraine through our continued operations and investments”.
- He said that “We hope that the coming year will bring peace, and we look forward to being a part of the process to deliver a new future for our people, their families and communities across Ukraine”.
Filo Mining Corp (OTCQX:FLMMF, TSX-V:FIL) C$26.9, Mkt Cap C$3.3bn – Assay results from the Filo del Sol Project, Argentina
- Filo Mining, in which the Lundin Family holds a 32% interest, reports recent assay results from two holes at its Filo del Sol Project in San Juan, Argentina.
- Both holes were drilled at the Aurora Zone, collared c,410m apart, targeting porphyry-style zones previously identified.
- Hole FSDH070A:
- 1,056m at 0.86% CuEq from 282m, including 670m at 0.97% CuEq from 370m.
- The hole sits outside of the resource pit shell below a depth of 150m.
- Hole FSDH071:
- 1,028m at 1.16% CuEq from 292m, including 172m at 2.15% CuEq from 408m and 237m at 1.49% CuEq from 776m.
- The entire hole was drilled outside of the resource pit shell.
- Both holes ended at depth due to rig capacity.
- The company is currently drilling eight holes at the Aurora Zone alongside drilling to the south at the Flamenco area.
- Step-out drilling will be targeted to both the north and south, alongside resource definition drilling.
- The project’s Indicated Resource currently stands at 4.4moz Au, 147moz Ag, 1.4mt Cu.
Lake Resources NL (ASX:LKE, OTCQB:LLKKF) A$0.84, Mkt Cap A$1,169m – Kachi M&I category doubled to 2.2mt LCE and Lilac DLE demonstration plant critical milestones hit
- The Company released an updated MRE on the Kachi lithium brine project in Argentina (Catamarca Province) following a completed drilling programme.
- New MRE includes:
- 2.2mt LCE at 202mg/l in the Measured and Indicated category;
- 3.1mt LCE at 198mg/l in the Inferred category.
- This implies more than doubling on the previous Measured & Indicated category estimate, albeit, at a lower grade (1.0mt at 289mg/l).
- Previous total resource stood at 4.4mt at 211mh/l including 3.4mt at 209mg/l in the Inferred category.
- Separately, the team announced yesterday the Kachi demonstration plant using the Lilac DLE technology has accomplished another key milestone running for over 1,000h before YE22.
- The plant produced 40,000l of lithium chloride eluate that will be shipped to the lithium carbonate conversion facility for production of lithium carbonate samples and further testing by potential offtakers.
Talga Group* (ASX: TLG) A$1.65, Mkt Cap A$550m – LoI signed with EV battery manufacturer Verkor
- Talga has entered into a non-binding Letter of Intent with French EV battery manufacturer Verkor to supply Talga’s graphite anode product, Talnode®-C, from the Vittangi project in Sweden.
- The brief announcement says the LoI “formalises commercial discussions underway between the parties and sets out non-binding terms for Talga to supply Verkor with Talnode®-C for electric vehicle applications over a 4- to 8-year period.”
- Verkor is looking to build a 16 GWh factory in Dunkirk that should start production in 2025 and will supply high-performance batteries for Renault EVs.
- Verkor raised €250m in November 2022 to progress its EV battery factory.
*SP Angel has previously acted as UK broker to Talga Resources.
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%