Today's Market View - Atlantic Lithium, Empire Metals, Phoenix Copper, and more...

SP Angel . Morning View . Thursday 12 01 23

Copper prices power through to $9,084/t as economists look for renewed China growth

MiFID II exempt information – see disclaimer below

Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11)* – Final assay results received ahead of expected MRE upgrade

Arkle Resources PLC (AIM:ARK)* – Identification of Lithium-bearing pegmatites in Mine River Block, Ireland

BeMetals Corp (TSX-V:BMET)* – Latest drilling results from the Kato gold project, Japan continue to extend the mineralised footprint

Beowulf Mining PLC (AIM:BEM)* – £250k investment in Vadar Minerals

Empire Metals Ltd (AIM:EEE)* – Exploration underway at Pitfield and Eclipse-Gindalbie Project

First Quantum Minerals (TSX:FQM) – Management see Cobre Panama issues with government as largely resolved

Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF)* – Additional results from metallurgical drilling programme at the Empire mine, Idaho

Tertiary Minerals PLC (AIM:TYM)* – Presentation on Tertiary’s Konkola West interest in Zambia, neighbouring the Mingomba Copper Deposit

Copper power through $9,000/t as enthusiasm mounts over China’s future growth

• Copper prices enjoyed their strongest five-day gain since early 2021 on continued bets of increased Chinese demand.
• Chinese Cu demand has been weighed down by a combination of zero-covid lockdowns and a property sector suffering a forced deleveraging.
• Beijing has recently lifted both policies, with a rapid reopening of the economy and an easing of Xi Jinping’s three red lines, intended to cool mammoth debt burdens accrued by developers following over a decade of unsustainable growth.
• Speculative traders have been placing substantial bullish bets on Copper in recent days, with copper calls at their highest level on Comex since May 2021.
• Traders are betting on copper to hit $12,000-10,000/t by September.
• China’s Securities Times reports over 70% of Chinese fund managers are bullish for the Country’s economy this year.
• China’s state Grid is planning to invest over $77bn into the nation’s power infrastructure this year, in a further boost to copper demand.

Gold prices hold as traders await today’s CPI data print for Fed guidance

• Gold prices continue to hover around $1,880/oz, with the metal waiting for direction before the US consumer price inflation data is released at 1:30pm today.
• ETFs continue to sell gold, with 57.5koz sold from funds today, marking a third straight day of declines as investors take profits following a 15% rally.
• The market consensus is currently for a lower inflation print, following several months of declining inflation.
• Were prices for December to come in hotter-than-expected, expect a sell-off in gold amid further encouragement for the Fed to keep interest rates high, limiting non-yielding bullion’s appeal.

Saudi Arabia –

• The Saudi Arabian sovereign wealth fund and local parastatal Saudi Arabian Mining Company, known as Ma’aden, have agreed to form a new mining investment vehicle with US$3.2bn.
• Maaden to buy 9.9% stake in Ivanhoe Electric for $126m
• Maaden’s shares rose 2.1% by 11:48 a.m. in Riyadh to 74.8 riyals, extending its jump this year to 16% and giving it a market value of $49 billion.
• Saudi Arabia is looking to raise US$170bn of Mining Investment by 2030 as part of its plan to diversify the economy away from its dependence on oil and gas.
• The $620bn Public Investment Fund holds a 67% stake in Maaden.
• Maaden is also looking to form a number of other joint ventures with western miners for exploration accross Saudi Arabia.
• Ivanhoe Electric: Ma'aden have also agreed to establish a 50/50 Joint Venture to Explore for Copper, Gold, Silver and Electric Metals in Saudi.
• The JV will explore over a huge lang package – 48,500km2
• The joint venture will provide Ma’aden with access to proprietary technology for conducting geophysical surveys to detect the presence of sulphide minerals containing copper, nickel, gold and silver
• Ma’aden will also invest US$126m in Ivanhoe Electric, becoming a 9.9% shareholder $60m of which will be used to advance the company’s US-based projects.
• Barrick: A jv has been agreed for two prospective exploration projects – the Jabal Sayid South and Umm Ad Damar license areas.
• Jabal Sayid South is adjacent to an existing 50 / 50 JV copper operation Barrick and Ma'aden that has been producing concentrate since July 2016 and currently at ~70,000tpa
• Moxico: Saudi Arabia recently awarded a joint venture between Moxico and ‘Ajlan & Bros Mining’ the Khnaighuiyah zinc and copper deposit for US$68m.
• Moxico Resources*, a private UK mining company recently reported first Copper cathode production starting at 10,000tpa from the Mimbula mine in Zambia with production planned to rise to 40,000tpa
• The Moxico team, led by Alan Davies, ex Rio Tinto, have extensive expertise in zinc and copper mining, hence their involvement in the Khnaighuiyah zinc and copper project.

*The analyst holds shares in Moxico Resources

Nickel - Tsingshan Holding reported to be planning to raise refined nickel production through the repurposing of copper refineries.

Aluminium – Dunkirk aluminium smelter to restart its 25% idled capacity as European gas prices fall

Dow Jones Industrials +0.80% at 33,973

Nikkei 225 +0.01% at 26,450

HK Hang Seng +0.16% at 21,471

Shanghai Composite +0.05% at 3,163

Economics

US – Fed member leans towards 25bp hike at February meeting to take Fed funds to 4.75%

• We are looking for the Fed to go to 5% this year and for the Fed to potentially hold at that level.
• If US inflation is shown to have continued to slow in December from the 7.1% in November with further slowing in January due to lower oil and gas prices then the Fed will have less of a reason to raise rates.
• Though, sometimes it feels as if the Fed has another agenda, eg to continue strengthen the US dollar and draw more industry back from China.

China – GDP forecast to recover to 4.9% this year according to Reuters poll

• GDP grew just 2.8% in 2022 according to the median forecasts of 49 economists polled by Reuters marking a slowdown in expectations from the 3.2% rise polled in October.
• Q4 GDP likely grew 1.8% yoy slowing from 3.9% yoy in Q3.
• Chinese families getting together early this year for an extended ‘Covid’ break
• There are no restrictions preventing young Chinese migrants from taking covid back to their families, often in rural villages.
• While the mass infection might be good for China inc. we feel sorry for the hundreds of millions of people who will have their time off blighted by the virus.
• Many returning workers will carry the virus back home to their ageing parents who often look after the children of migrant workers.
• As the old folks get sick, their capacity for ‘childcare’ support will be reduced.
• China is expecting some 2.1bn travel trips this holiday with some 6.1m rail trips on Sunday on 8,449 trains.

South Korea - Unemployment held at 3.3% for December

Ghana – Inflation hits record 54.1% YoY in December

• Ghana’s inflation rose to 54.1% from 50.3% the previous month.
• Prices rose the most in the category of housing, water, electricity, gas and other fuels, up 82%.
• The government has reached an agreement with the IMF for a $3bn, three-year support package in December, conditional on debt restructuring.

Currencies

US$1.0753/eur vs 1.0741/eur yesterday. Yen 131.76/$ vs 132.43/$. SAr 16.912/$ vs 17.038/$. $1.214/gbp vs $1.216/gbp. 0.689/aud vs 0.690/aud. CNY 6.755/$ vs 6.772/$.

Dollar Index 103.19 vs 103.29 yesterday.

Commodity News

Precious metals:

Gold US$1,882/oz vs US$1,882/oz yesterday

Gold ETFs 94.0moz vs US$94.1moz yesterday

Platinum US$1,070/oz vs US$1,092/oz yesterday

Palladium US$1,787/oz vs US$1,788/oz yesterday

Silver US$23.67/oz vs US$23.91/oz yesterday

Rhodium US$12,200/oz vs US$12,300/oz yesterday

Base metals:

Copper US$ 9,085/t vs US$8,995/t yesterday

Aluminium US$ 2,479/t vs US$2,471/t yesterday

Nickel US$ 26,150/t vs US$27,825/t yesterday

Zinc US$ 3,178/t vs US$3,188/t yesterday

Lead US$ 2,146/t vs US$2,187/t yesterday

Tin US$ 27,200/t vs US$26,890/t yesterday

Energy:

Oil US$82.6/bbl vs US$79.7/bbl yesterday

• Crude oil prices moved higher on positive Chinese demand growth sentiment, despite the EIA reporting a massive 19mb build in US crude oil stocks as refinery utilisation was severely impacted by the recent freeze.
• European energy prices continue to trade sideways due to unseasonably warm weather and ample supplies.

Natural Gas US$3.753/mmbtu vs US$3.676/mmbtu yesterday

Uranium UXC US$50.30/lb vs US$50.20/lb yesterday

Bulk:

Iron ore 62% Fe spot (cfr Tianjin) US$121.4/t vs US$118.5

Chinese steel rebar 25mm US$620.4/t vs US$616.9/t

Thermal coal (1st year forward cif ARA) US$171.0/t vs US$171.0/t

Thermal coal swap Australia FOB US$334.0/t vs US$362.0/t

Coking coal swap Australia FOB US$298.0/t vs US$308.0/t

Other:

Cobalt LME 3m US$49,000/t vs US$49,000/t

NdPr Rare Earth Oxide (China) US$106,953/t vs US$106,462/t

Lithium carbonate 99% (China) US$66,540/t vs US$66,372/t

China Spodumene Li2O 5%min CIF US$5,970/t vs US$5,970/t

Ferro-Manganese European Mn78% min US$1,328/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$343/t vs US$342/t

Spot CO2 Emissions EUA Price US$82.4/t vs US$84.2/t

Brazil Potash CFR Granular Spot US$505.0/t vs US$505.0/t

Company News

Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11)* 36p, Mkt Cap £214m – Final assay results received ahead of expected MRE upgrade

• Atlantic Lithium has received the final assay results for its 47,000m drill programme at the Ewoyaa Lithium Project in Ghana.
• The latest assays are for a further 10,052m of exploration and infill drilling in order to increase confidence and size of the MRE.
• Highlights from the latest round of assay results include:
• GRC0825: 36m at 1.23% Li2O from 42m
• GDD0102A: 22.2m at 1.62% Li2O from 73m
• GRC0837: 20m at 1.6% Li2O from 44m
• GDD0103: 15.1m at 1.24% Li2O from 55m
• GRC0842: 12m at 1.55% Li2O from 93m
• Highlights from the PFS at Ewoyaa, based on a 2.0mtpa include:
• Capex $125m
• C1 and AISC costs are estimated at $278/t and $460/t SC6 after by-products.
• Post-tax NPV8% of US$1,328m
• Post-tax IRR of 224%
• LOM average EBITDA of $248m
• Payback 4.9 months $278/t
• Average long-term SC6 costs US$1,359/t
• Atlantic notes that it is working on an updated MRE expected this quarter, ahead of a feasibility study targeted for completion mid-2023.

*SP Angel acts as nomad to Atlantic Lithium. An SP Angel mining analyst recently visited the Ewoyaa Lithium Project in Ghana

Arkle Resources PLC (AIM:ARK)* 0.67p, Mkt Cap £2.3m – Identification of Lithium-bearing pegmatites in Mine River Block, Ireland

• Arkle resources announces the identification of lithium bearing pegmatites at its Mine River Block licence package on the Wexford/Wicklow border.
• Over 34 rock chip samples, six returned lithium grades over 0.02% Li2O..
• Highlights included:
• 420 ppm Li, or 0.090% Li2O, 273ppm, 35ppm Cs, 1ppm Ta
• 150ppm Li or 0.032% Li2O, 379ppm Rb, 47ppm Cs, 1ppm Ta
• 100ppm Li or 0.022% Li2O, 239ppm Rb, 15ppm Cs, 13ppm Ta
• Sampling was conducted across pegmatite rock boulders mapped around granite bodies.
• The Company also notes identifying pathfinder elements for lithium, specifically Caesium, Rubidium and Tantalum over elevated lithium pegmatites.
• Arkle has identified fault NW SE trending fault structures and recently identified mafic and ultramafic bodies to the south-east of the Mine River Block for further analysis.
• Arkle’s Chair, John Teeling, notes that Arkle has ‘now found the rock type needed, pegmatites, and in the pegmatites found lithium and other indicator minerals.’
• The team hopes to resume further ground-level exploration work in the near future, with follow-up soil surveys looking to offer targets for trenching and subsequent drilling.

Conclusion: Arkle’s decision to shift its primary focus from gold to lithium opportunities presents an exciting next stage in the Company’s development and early-stage exploration efforts offer encouragement going forward. We await updates from further ground-level exploration work on the Wexford/Wicklow border. Arkle’s Mine River Block lies in the vicinity of the lithium-bearing Leinster Granite, where a JV between the International Lithium Corp (TSX-V:ILC) and Ganfeng is currently in development.

*SP Angel are Nomad and broker to Arkle Resources

BeMetals Corp (TSX-V:BMET)* – C$0.12, Mkt cap C$21m – Latest drilling results from the Kato gold project, Japan continue to extend the mineralised footprint

• In an announcement to the Canadian market yesterday, BeMetals reported the latest assay results from its continuing diamond drilling programme at its Kato Gold Project in Hokkaido and a progress report on its other exploration activities in Japan.
• Reporting results for holes KT22-13 to KT22-15, BeMetals says that the “latest drilling results at the Kato Project successfully extended the Seta Vein Zone some 400 metres along strike from the Company’s first intersection in drill hole KT22-11”.
• BeMetals also says that “hole KT22-15 has also extended the recently identified Kamitake Vein Zone approximately 350 metres along strike from its first intersection in hole KT22-12”.
• Among the results highlighted in the announcement are intersections of:
• The Seta Vein over a 30m interval averaging 0.47g/t gold from a depth of 213m in hole KT22-13 and including 5.25m (from 213m depth) averaging 1.25g/t gold; and
• Another intersection of the Seta Vein, averaging 0.29g/t gold over a 17.5m interval from a depth of 199.25m in hole KT22-15 which the company explains extends the Seta Vein by 400m towards the SE from the intersection of 11.50m averaging 6.42g/t gold from a depth of 236.80m in hole KT22-11.
• At a shallower depth, Hole KT-15 also intersected the “recently identified Kamitake Vein Zone approximately 350 metres along strike from its first intersection in hole KT22-12 [16.75m averaging 0.58g/t from 172.25m depth]” over 3.67m at an average grade of 0.86g/t gold from 50.83m depth.
• We comment that, at the time results of hole KT22-12 were released in September last year, it extended the Seta Vein Zone by ~100m along strike from hole KT22-11 and also identified the Kamitake vein.
• The company says that hole KT-14 “Remained in footwall of Seta Vein and did not intersect vein mineralization”.
• BeMetals explains that “While the grade of the Seta Vein in these two drill holes … [holes KT22-13 and KT22-15] … was 0.47 g/t Au over 30.00 metres, including 1.25 g/t Au over 5.25 metres, and 0.29 g/t Au over 17.50 metres is relatively low. It is interpreted that these holes intersected the upper reaches of the vein where such grades could be expected”.
• The company says that “quartz vein textures support these intersections being at a relatively high level in the system. Planned drilling in 2023 will test below these latest intersections where improved grade continuity could be expected”.
• A map included in the announcement shows both the Seta and Kamitake Veins open in a SSE direction towards an area described as having “Gold in Outcrop Rock Chip Samples”.
• Welcoming the results, John Wilton, CEO and President explained that “Drilling has been paused for a short winter break and will resume next month to test both depth and grade zonation of the Kato mineralization. This phase of drilling will also test exploration targets to the southeast, along strike from our 2022 drilling program”.
• Describing progress on other projects in BeMetals’ Japanese exploration portfolio, the announcement says that drill targets have been identified for testing during 2023 at the Todoroki Project; that it expects to start an airborne drone magnetic survey at the Tashiro Project in January 2023 and that it has completed reconnaissance mapping at the Hokasatsu Project.

Conclusion: The latest drilling continues to extend the known lateral extent of the mineralisation at the Kato Project in Japan. We look forward to further results when drilling resumes in February following a brief winter-time break.

*SP Angel act as broker to BE Metals

Beowulf Mining PLC (AIM:BEM)* 3.75p, Mkt Cap £31m – £250k investment in Vadar Minerals

• Beowulf reports that it has invested a further £250k in Vadar Minerals, increasing the company’s ownership from 59.5% to 61.1%.
• Vadar will use funds to advance exploration at its exploration assets in Kosovo, primarily drill testing the Red Lead, Madjan Peak and Madjan Peak South targets in Spring 2023.
• Beowulf believes the Red Lead target could share similarities with the neighbouring Stan Terg deposit, such as the same host rocks, trachyte heat source, hydrothermal breccias and hydrothermal alteration patterns.
• Stan Terg has a resource of 63mt @ 3.5% Pb, 2,3% Zn & 80 g/t Ag.
• Mapping at Red Lead has defined a 2km East-Northeast trending lead-zinc-copper-gold soil sample anomaly supported by IP anomalies and outcrops at surface indicative of alteration.
• Vadar note that several outcrops of marble in the basement host rocks could provide an ideal trap-site for metal-rich hydrothermal fluids.
• Drilling completed towards the end the end of 2022 at Madjan Peak and Madjan Peak South indicated the presence of a polymetallic epithermal system, with holes intersecting sulphides hosting intense alteration, and multiple generations of veining.
• Kurt Budge, CEO of Beowulf commented: "The next phase of work will build on last year's results and this investment is funding preparations for drilling, with holes designed to test the best portions of each of the exploration targets, and cost-effective mapping and sampling programmes which will continue across our new licences, which have already identified several base metal anomalies.

*SP Angel acts as nomad and broker to Beowulf

Empire Metals Ltd (AIM:EEE)* 1.9p, Mkt Cap £8m – Exploration underway at Pitfield and Eclipse-Gindalbie Project

• Empire provides an update on its exploration activities at the Pitfield Copper Project and the Eclipse-Gindalbie Project, both located in Western Australia.
• Pitfield: Empire began fieldwork at Pitfield in November 2022, with working following up on historical geochemical and aeromagnetic data, that suggested a reginal anomaly over 40km on the license.
• Historic sampling in the vicinity of the magnetic anomaly yielded results up to 2.3% Cu and 20.8g/t Ag from surface rock chip sampling.
• In December, Empire flew and IP survey over part of the site to assess soil chargeability and apparent resistivity, the results of which are currently being evaluated.
• The empire team are also currently undertaking a geochemical mapping programme ahead of an initial drilling campaign at Pitfield.
• Eclipse-Gindalbie: Last week, Empire completed a small RC drill programme targeting a new area around the historical South Gippsland #3 mine, which to date has been under-explored.
• This follows successful drilling campaigns in February 2022 and June 2022, targeting historical gold workings within the Gindalbie licence area.

*SP Angel acts as nomad and broker to Empire Metals

First Quantum Minerals (TSX:FQM) C$31, Mkt cap C$21.5bn – Management see Cobre Panama issues with government as largely resolved

• The First Quantum CEO sounded confident for a positive outcome in negotiations to restart the giant Cobre Panama copper mine in Panama.
• The company fell out recently with the government over negotiations on tax and royalty payments with the government placing the mine on care and maintenance
• Panama’s ministry of Industry have highlighted the Supreme Court in 2017 annulled FQM’s contract to run the mine though FQM claims they were assured by the government the permit remained valid.
• The Panama president has been asking for >375m pa in corporate taxes and royalties at 12-16%. First Quantum paid some $61m in taxes in 2021.
• The company was looking for some guarantees over reduce payments when copper prices are low, eg they don’t want to be stuffed with losses having paid hefty taxes.
• We suspect there will be a new enthusiasm by both parties to restart the mine now that copper prices are at $9,085/t.
• In the meantime, copper miners in Zambia, where FQM operates Sentinel and is expanding the Kanshansi copper mines are suffering from a severe lack of hydropower due to low water levels in Lake Kariba.
• Cobre Panama’s official capacity is 300,000tpa with the mine producing some 331,000t last year through the processing of 81mt of ore grading 0.45% copper. The mine cost US$6.5bn.

Conclusion: It is the interest of both parties to restart the Cobre Panama to take advantage of higher copper prices. While both parties are also known to be robust in their negotiating styles we are hopeful that an element of diplomacy might serve to find an acceptable compromise.

*The analyst has previously visited a number of First Quantum copper mines and has significant contacts in Panama.

Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF)* 31p, Mkt Cap £37.4m – Additional results from metallurgical drilling programme at the Empire mine, Idaho

(Phoenix holds 80% of the Empire mining property in Idaho)

• Phoenix Copper has released results from the sixth and the upper 21.64m (71ft) of the seventh hole of its 1,500m metallurgical core-drilling programme at the Empire open-pit copper project in Idaho following the release of data from the initial three holes in November and a further 2 holes earlier this month.
• The company confirms that during 2022 it completed 1,077m of the programme which started in early June with the main purpose of retrieving samples for “further metallurgical testing, geotechnical studies, and geological modelling”.
• CEO, Ryan McDermott said that hole KXDD22-07 “was terminated early, at a depth of 71 feet, after encountering historical underground workings. Hole 7 was redrilled as KXD22-07B to a depth of 432.5 feet (132 m). Assays for KXD22-07B are pending”.
• Among the results highlighted in today’s announcement are:
• An intersection of 56.70m averaging 0.54% copper, 19.90g/t silver and 0.78%zinc from the surface in hole KXDD22-06 including an upper part of the intersection from surface to 17.10m depth which averaged 1.11% copper, and 22.90g/t silver.
• An additional higher-grade section within the lower part of the mineralised intercept in hole KXDD22-06 averaged 0.47% copper, 27.80g/t silver and 1.52% zinc over a width of 15.00m from 24.20m depth
• Hole KXDD22-07 intersected 1.50m at an average grade of 0.93% copper, 33.90g/t silver and 490ppm tungsten (0.049%) from 9.80m depth and 2.80m averaging 2.15% copper, and 125.30g/t silver in a second mineralised interval from 17.10m depth.
• Mr. McDermott commented that “Consistent with the copper, gold, and silver values previously reported for holes KXD22-01 through KXD22-05, hole KXD22-06 and the upper portion of KXD22-07 continues to show robust metal values including 56.70 m grading 0.54% copper, 19.90 g/t silver, and 0.73% zinc from the surface in KXD22-06, and 2.80 m of 2.15% copper and 125.30 g/t silver in KXD22-07. “
• He also emphasised that “the intercepts in the drilling program thus far are consistent with the team's expectations and meet the ore type-grade-interval length necessary for the metallurgical test work currently being undertaken”.
• Confirming that the “metallurgical testing program is progressing as planned” Mr. McDermott reiterated previous statements that “assay results are taking longer than originally anticipated due to laboratory backlog”.

Conclusion: The most recent results from Phoenix Copper’s metallurgical drilling at the Empire open-pit copper project provide additional sample material for the continuing test programme which is investigating the use of a relatively benign reagent, ammonium thiosulphate as an alternative to cyanidation to recover precious metals. The drilling results are consistent with previous results from the programme and we await further results of the drilling and of the metallurgical work, including the drilling information from Hole KXDD22-07B which replaces the original hole KXDD22-07 which encountered historic underground mine workings before reaching its target depth.

*SP Angel acts as nomad to Phoenix Copper

Tertiary Minerals PLC (AIM:TYM)* 0.18p, Mkt cap £2.8m – Presentation on Tertiary’s Konkola West interest in Zambia, neighbouring the Mingomba Copper Deposit

• Tertiary Minerals publishes a ‘Project Focus’ Presentation on its Konkola West asset in Zambia: https://www.tertiaryminerals.com/filemanager/presentations/Konkola_West_Project_Focus_January_2023.pdf
• Konkola West is one of five licences in which Tertiary has a financial interest in Zambia.
• The licence package lies 2km southwest of the Mingomba Copper Deposit, currently holding 250mt Cu at 3.8%.
• Mingomba recently received a $150m investment from the Gates and Bezons-backed KoBold Metals, alongside BHP, which looks to utilise Artificial Intelligence to enhance geological data collection and optimise exploration efforts.
• Tertiary is looking to explore potential for a down-dip projection of ore shale from the Musoshi-Lubambe-Mingomba-Konkola copper deposits lying to the northeast of Konkola West.
• The Company notes that its Konkola West interest borders over 15km worth of continuous copper mineralisation endowing 775mt of Cu at 2-3%.
• Tertiary hopes to explore options for detailed mapping, basin modelling and seismics at Konkola West to evaluate potential deep mineralisation.
• Tertiary also holds interests in the Jacks Copper Project, which is more advanced than Konkola West with soil sampling and drilling completed in 2022, alongside Mukai and Mushima North where Tertiary and First Quantum are working together to analyse historical data and generate exploration targets for this year’s field season.

*SP Angel act as Nomad and Broker to Tertiary Minerals

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The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020

Analysts

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Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484

Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk - 0203 470 0474

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Sales

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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.

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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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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%