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Today's Market View - Amur Minerals, Anglo Asian Mining, Resolute Mining and more...

Amur Minerals* (LON:AMC) – Director Change Anglo Asian Mining* (LON:AAZ) - BUY – TP under review – Q3 delivers 18.2koz GEO with FY20 guidance under review Anglo American (LON:AAL) – De Beers reports continuing signs of recovering diamond sales demand Resolute Mining (LON:RSG) – Underground resource update at Tabakoroni

Amur Minerals Corp. - Today's Market View - Amur Minerals, Anglo Asian Mining, Resolute Mining and more...

SP Angel . Morning View . Wednesday 14 10 20

IMF forecasts shallower recession amid $12tn in stimulus 
 

Amur Minerals* (LON:AMC) – Director Change

Anglo Asian Mining* (LON:AAZ) - BUY – TP under review – Q3 delivers 18.2koz GEO with FY20 guidance under review

Anglo American (LON:AAL) – De Beers reports continuing signs of recovering diamond sales demand

Resolute Mining (LON:RSG) – Underground resource update at Tabakoroni

Savannah Resources* (LON:SAV) – Appointment of advisor for Mutamba development

SolGold* (LON:SOLG) – First hole completed at Porvenir as exploration effort accelerates with additional rigs

Talga Resources (LON:TLG) – Silicone Anode interest drives 10 times increase in commercial production capacity

 

China – Substantial increase in Trade flows highlights Chinese recovery and need for China to buy in more food and other commodities

China is thought to be buying massive amounts of rice and other food products to replace crops lost in flooding along the 6.3km Yangtze river.

China’s grain imports rose 35% yoy in September, inbound meat shipments +40.5% and Soybean shipments +17.6% to US$3.7bn (SCMP).

Strong export growth was driven by sales in electrical and mechanical goods, shipments of which rose by 11.8% yoy.

This combined with the proposed new Dual-Circulation strategy designed to drive domestic growth for foreign and local products in certain regions may be serving to raise imports.

US and WTO has been urging China to stimulate domestic consumption for some years to ease trade imbalances and help manufacturers / producers around the rest of the world.

The WTO now forecast a contraction of 9.2% of global trade growth in 2020 down from 12.9- 32% projected in April

Imports (%yoy, US$): 13.2 v -2.1 in August and 0.4 est.

Exports (%yoy, US$): 9.9 v 9.5 in August and 10.0 est.

The export growth reflects the reopening of global markets and possibly better management of the Coronavirus pandemic

 

Metals industry prepares for virtual LME week starting Monday

The most eagerly anticipated event in the global metals industry begins next week, although for the first time in its history it will be conducted virtually.

It will be the first time since the Second World War that the exchange’s formal dinner will not take place, with virtual seminars instead replacing traditional black-tie events.

 

Australian dollar falls on rising Chinese tensions

The Australian Dollar fell on Tuesday as it was reported that China had decided to ban Australian coal imports, as the relationship between the two countries soured.

China is Australia’s largest trading partner, with the former being a huge commodity market for Australia- notably iron ore and coal.

AUD fell 0.5% at 0.7176 against the US dollar, whilst falling 0.4% against the New Zealand dollar and the Japanese Yen, according to Reuters.

The S&P/ASX 200 fell 0.3% on Wednesday morning, with banks and miners contributing most to the index’s decline.

 

ICL Boulby Mine Underground marathon - in support of Mental Health

A group of six runners from ICL’s Boulby potash mine in Yorkshire are preparing to run the world’s deepest underground race.

Sky News interview: Just giving page:  https://uk.virginmoneygiving.com/beneaththesurfacemarathon

 

Dow Jones Industrials -0.55% at 28,680

Nikkei 225 +0.11% at 23,627

HK Hang Seng -0.04% at 24,639

Shanghai Composite -0.57% at 3,341

 

Economics

IMF expects shallower recession this year but cuts its 2021 growth estimates suggesting a longer than first expected recovery.

Global GDP to see a 4.4% contraction in 2020, down on -5.2% expected in June projections; 2021 growth expected to come in at 5.2%, down from 5.4% estimated previously.

World economy is expected to recover pandemic related losses only by the end of 2021 with the economy expected to be 0.6% higher than at the end of 2019.

The US is no projected to contract 4.3% compared with a -8% estimate before, which in turn also does not include potential additional stimulus; 2021 growth was cut down to 3.1% from 4.5%.

The Eurozone is estimated to shrink 8.3% this year v -10.2% in previous projections, and expand 5.2% in 2021, down from 6%.

China remains the only major economy to post growth this year (1.9%); 2021 growth estimated at 8.2%.

The fund cautioned government not yet to withdraw support that helped to ease financial conditions in advanced economies and in most emerging markets.

The IMF estimates governments allocated $6tn in direct tax and spending measures to date.

The pandemic and the followed economic contraction is expected to see extreme poverty to rise for the first time in more than two decades.

 

US – Monthly inflation pulled back in September reflecting subdued demand amid elevated unemployment numbers in the economy hit by the pandemic.

CPI (%mom/yoy): 0.2/1.4 v 0.4/1.3 in August and 0.2/1.4 est.

Core CPI (%mom/yoy): 0.2/1.7 v 0.4/1.7 in August and 0.2/1.7

 

UK – The pound is pulling back against the US$ this morning amid a deadlock in Brexit negotiations.

Previously, PM said he will walk away from discussions if there is no progress by Thursday, when EU leaders hold a summit in Brussels.

 

South Korea – The central bank left rates unchanged at 0.5% and said it does not have plans to expand debt buying beyond the 5tn won plan (~$4.4bn) announced in September.

The decision comes amid a drop in daily infection rates seem to have consolidated around the 100 mark while export and inflation data were both better than expected in September.

 

Currencies

US$1.1737/eur vs 1.1788/eur yesterday.  Yen 105.50/$ vs 105.39/$.  SAr 16.528/$ vs 16.552/$.  $1.289/gbp vs $1.304/gbp.  0.716/aud vs 0.718/aud.  CNY 6.742/$ vs 6.744/$.

 

Commodity News

Precious metals:         

Gold US$1,896/oz vs US$1,916/oz yesterday - Gold dips below $1,900/oz on US dollar rebound

The price of gold fell for a second straight day on Tuesday, as the US dollar strengthened on fresh doubts over the ease of implementing fiscal stimulus in the US.

US house Speaker Nancy Pelosi said that the latest coronavirus stimulus package offered by Donald Trump fell short of what was required, and demanded the White House revamp its latest offer.

Gold fell as much as 1.7% yesterday, as the dollar index has so far firmed 0.63% this week on the back of market uncertainty and stalled stimulus negotiations (FX Street).

Spot gold fell 1.7% to $1,890/oz yesterday, whilst US gold futures settled down 1.8% at $1,895/oz- with stagnation in Washington over the next stimulus package continuing to pressure assets that rely on dollar weakness (Reuters).

Gold ETFs 111.2moz vs US$111.1moz yesterday

Platinum US$874/oz vs US$872/oz yesterday

Palladium US$2,354/oz vs US$2,413/oz yesterday

Silver US$24.14/oz vs US$24.87/oz yesterday

           

Base metals:  

Copper US$ 6,740/t vs US$6,697/t yesterday – China unwrought copper imports fell >5% mom to 722,000t in September vs 762,000t in August and 455,000t a year earlier

China September copper imports rose 41% to 4.99mt with copper concentrate imports rising to 2.14mt due to increasing copper smelting capacity and attractive treatment and refining charges.

Copper trader offloading copper into LME warehouses.

The market has been aware of off-market stocks of copper for some years. We suspect recent inflows of copper into LME warehouses are from stocks held in low-cost locations.

‘Last ditch’ wage negotiations to occur today at Escondida

Supervisors at Chile’s Escondida mine and BHP have extended Tuesday’s wage negotiations, in an attempt to stave of a strike at the Chilean mine.

Last week saw supervisors at the mine reject BHP’s final offer in contract negotiation, however the company agreed to meet again with the union on Tuesday (Reuters).

Potential strikes and the resulting supply disruptions have supported copper prices over the last few days, as several mines in top producer Chile see wage negotiations for workers.

Canadian miner Lundin is currently attempting to end strike action at its Candelaria copper mine, while Antofagasta narrowly avoided strikes in July.

Escondida produced 1.2mt of copper in 2019 making it the world’s largest copper mine by some distance, whilst Lundin’s 2020 guidance for Candelaria is 145,000- 155,000t Cu and 80,000- 90,000oz Au.

Aluminium US$ 1,850/t vs US$1,854/t yesterday - Chinese aluminium and aluminium product exports fell 18% ytd partly due to EU tariffs on aluminium extrusions from China which reach 48% on certain products

Nickel US$ 15,110/t vs US$15,150/t yesterday - Nickel production also fell 17.3%yoy and 13.2%mom to 12,384t due to maintenance at Jinchuan

Indonesia to build integrated EV industry

Indonesia is seeking to take advantage of its nickel resources by developing a domestic battery industry.

Projects which could see between $20-30bn invested in Indonesia’s fledgling battery industry have been announced.

Both CATL and LG Chem have signed separate heads of agreement with Aneka Tambang Tbk last month on plans to manufacture products from the state-owned miner’s nickel output.

LG Chem has reportedly agreed to explore JV options with Aneka Tambang and CATL is already in the process of building a nickel processing plant as part of a battery supply chain infrastructure in Sulawesi.

State owned firms MIND ID, Aneka Tambang,Perusahan Listirk Negara and Pertamina mining, utility and oil companies respectively have formed a JV called Indonesia Battery Holding to facilitate building out a vertically integrated industry covering everything from mining the raw materials to producing the batteries.

Zinc US$ 2,417/t vs US$2,427/t yesterday

Lead US$ 1,789/t vs US$1,834/t yesterday - Chinese refined lead production fell 0.6% to 412,000t as Green shield policies hit secondary smelting

Tin US$ 18,285/t vs US$18,280/t yesterday

 

Energy:           

Oil US$42.3/bbl vs US$41.9/bbl yesterday

Oil prices appear to be waiting for the presidential election before making any major moves, with prices falling due to rising Libyan oil production before climbing on positive news out of China

Libya’s warring factions reached a ceasefire, and some long-shuttered oil ports have been reopened, along with the fields that feed them

By the end of the month, the National Oil Corporation plans to boost the average daily output of the nation from less than 100,000bopd to 290,000bopd

Meanwhile, OPEC+ has relaxed its production cuts by 2MMboopd

The catalyst for the latest price drop is OPEC+’s September seaborne exports, which jumped to 22.84MMbopd million barrels per day from the 22.11MMbopd that the cartel exported by sea in August

For OPEC specifically, its exports rose from 17.53MMbopd in August to 18.2MMbopd in September

A Reuters survey shows that OPEC’s production for September was up 160,000bopd from the previous month

OPEC is still in compliance, however the culprits for this production increase are mostly Iran and Libya, both of whom are exempt from the production quotas

The market is interpreting this production increase as a viable threat to any oil market rebalancing

Further pressuring oil prices is the ever-present demand question—a metric that has been constantly pushed down by the pandemic

Bearish demand factors include another round of major airline layoffs affecting tens of thousands of employees, an impromptu lockdown of Madrid due to increasing coronavirus cases, and disappointing vaccine news

 

Natural Gas US$2.723/mmbtu vs US$2.831/mmbtu yesterday

The Natural Gas Supply Association's 2020-2021 winter outlook predicts that a combination of colder weather and decreased production will place upward pressure on natural gas prices, compared with last winter's low average price of US$2.08/mmbtu, despite a slower domestic economy and slightly lower demand

The trade group's outlook is based on five factors: economy, weather, overall demand, supply and storage

It draws on data from Energy Ventures Analysis and the US Energy Information Administration for demand and supply projections, and IHS Market for economic projections

According to the outlook, supply this winter is estimated to average just over 109Bcf/d, with production at 86Bcf/d, 9% lower than last winter because of declines in gas production associated with oil drilling

Overall demand is seen reaching 109.7Bcf/d, when export customers are included, down less than 1% from the prior winter levels

           

Bulk:   

Iron ore 62% Fe spot (cfr Tianjin) US$117.8/t vs US$119.5/t – China iron ore imports rose 8.2% in September

Iron ore imports rose to 108.55mt in September compared to a month prior- the second-highest month on record, according to preliminary customs data.

September 2020 imports were 9.2% higher than the same period last year, although lower than July’s record month of 112.65mt.

January-September iron ore imports increased 10.8% to 868.5mt from the same period in 2019 (Mysteel).

Brazilian iron ore exports rose to a two-year high in September on Asian demand, whilst iron ore shipments from Australia remained above average for the second half of September (Argus Media).

 

Chinese steel rebar 25mm US$561.6/t vs US$561.9/t

Thermal coal (1st year forward cif ARA) US$58.4/t vs US$58.8/t - More coal and emissions cuts needed in China

Think tanks in China are striving to cut carbon emissions and coal use over the next five years, according to talks and a report issues by China’s top experts on climate change and emissions released on Monday.

The report was published by the Institute of Climate Change and Sustainable Development at Tsinghua University and summarises the findings of 18 government think tanks studies.

He Jiankun, vice director of National Export Committee on Climate Change states that “China needs to strictly control coal consumption and the expansion of coal fired power capacity in the next five years, aiming to cap carbon emission from coal sectors by 2025 and even realise negative growth”.

It is expected that the growth of natural gas consumption in China between 2026-2030, therefore the growth of carbon emission from gas should be balanced by the reduction from coal sector.

China is responsible for about 29% of global carbon dioxide emissions and it is anticipated that it will aim to achieve climate related goals and maybe even lower economic growth targets for the Communist Part conclave.

 The report said that urgent cuts to total energy consumption were needed to keep temperature increases within 1.5 degrees Celsius by 2050. The report also requested that China cuts its carbon intensity by 65% from 2015 levels, and increase non-fossil fuel consumption to 24% by 2030.

These calls come as China’s overall energy needs are increasing. The report said that China’s total energy consumption could reach 5.5 billion tonnes of standard coal in 2025. This is a 13.2% increase from levels in 2019, assuming annual gross domestic product is more than 5% during the 14th-five year plan period from 2021-2025.

Coking coal futures Dalian Exchange US$138.0/t vs US$146.5/t

           

Other: 

Cobalt LME 3m US$33,780/t vs US$33,780/t

NdPr Rare Earth Oxide (China) US$47,762/t vs US$47,749/t

Lithium carbonate 99% (China) US$5,162/t vs US$5,116/t

Ferro Vanadium 80% FOB (China) US$29.5/kg vs US$29.8/kg

Antimony Trioxide 99.5% EU (China) US$5.2/kg vs US$5.2/kg

Tungsten APT European US$212-220/mtu vs US$220-225/mtu

Graphite flake 94% C, -100 mesh, fob China US$430/t vs US$430/t

Graphite spherical 99.95% C, 15 microns, fob China US$2,275/t vs US$2,275/t

 

Battery News

Lion Battery Technologies explores PGMs in li-ion batteries

Lion Battery Technologies a JV between Anglo Platinum and Platinum Group Metals is conducting research into the use of platinum and palladium in li-ion batteries.

The automotive industry constitutes around 80% of palladium demand and around 30% of platinum demand so the use of the technology in li-ion batteries could be used to offset any negative effects of the move away from ICE vehicles.

Research by a team at Florida University led by Bilal El-Zahab suggests PGMs catalytic properties could make them suitable for use in batteries, helping to improve cycling ability of both lithium-air and lithium sulphur batteries.

A patent for “Battery Cathodes for Improved Stability” was issued to FIU which in turn has a sponsored agreement with Lion Battery Technologies providing the Company with exclusive rights to the IP of the technology.   

Lithium air and lithium sulphur batteries have higher energy densities than Li-ion batteries but have short battery lives due to degradation during charge cycles.

Higher capacity facilitated by the PGMs means longer ranges and the lack of a metal cathode in the air batteries and the use of sulphur mean both have the potential to reduce costs. PGMs in the cathode could also enable significant power-weight advantage at a reduced cost per KWh.

The key according to the research team is the addition of palladium inside the carbon nanotubes at the cathode, enabling the chemical reaction to take place without destroying the electrolyte cell.

Commercial viability remains some way off, Lion is applying for further patents and is looking for a partner to take them to towards commercial viability. The Company is targeting 500 cycles and a 500Wh/kg to make such batteries commercially viable.

 

Chevy Bolt ignites new concerns about fire in EVs

The US National Highway Traffic Safety Administration is investigating incidents of Chevy Bolt vehicles igniting while parked. The investigation will cover 78,000 Chevy Bolts made by GM from 2017-2020.

3 separate reports of fires starting under the rear seats while parked. Fire damage appeared to be in the battery compartment spreading to the passenger area.

GM is cooperating with the probe and will conduct its own investigation.  

In a similar incident a Chevy Bolt caught fire last year in the Ukraine. This incident is more curious given at the time the Chevy Bolt was not sold locally in the Ukraine so a number of things relating to its transit and conversion to the local power grid could have caused the problems. (Torque News)

This news comes on the back of Hyundai recalling 25,564 Kona EVs in South Korea after a number of battery fires believed to have been a result of defective batteries supplied by LG Chem, which LG Chem denies. Hyundai has since expanded the recall to the US, Europe and China, recalling 51,000 vehicles across those markets.

 

Company News

Amur Minerals* (AMC LN) 2.5p, Mkt Cap £31.5m – Director Change

Brian Savage is stepping down as a Non-Executive Director on 16 October 2020.

Brian will focus on advancing other projects including Muzhievo and Beregovo gold/silver/lead/zinc deposit owed by Avellana Gold in Ukrina as well as other assets in the DRC.

Paul Gazzard, NED, will assume Brian’s responsibilities as a member of both Remuneration and Audit Committees.

*SP Angel act as Nomad and Broker to Amur Minerals

 

Anglo Asian Mining* (LON:AAZ) 110p, Mkt Cap £125m – Q3 delivers 18.2koz GEO with FY20 guidance under review

BUY – TP under review

Q3/20 production totalled 18.2koz GEO (Q3/19: 20.2koz) at actual prices.

Gold production amounted to 15.5koz (Q3/19: 17.8koz) reflecting weaker metallurgical recoveries at the agitation leaching plant.

Copper production came in at 0.7kt (Q3/19: 0.5kt) on the back of steady flotation plant operation and stronger contribution from the SART circuit.

Silver production was 31.0koz (Q3/19: 33.4koz).

9M/20 production totalled 50.7koz GEO (9M/19: 60.1koz) including 43.4koz gold, 1.9kt copper and 90koz silver (9M/19: 52.2koz, 1.5kt and 117.7koz, respectively).

Q3/20 gold bullion sales were 6.6koz at an average gold price of $1,947/oz (Q3/19: 14.9koz at $1,513/oz) as the team time sales to take advantage of stronger gold prices.

The balance of the quarterly gold bullion production (6.3koz) was sold in early October post quarter end at an average price of $1,910/oz.

Copper concentrate sales totalled 2.1kt for $3.4m, ex PSA (Q3/19: 2.3kt at $3.4m).

The start of underground mining below the Gedabek open pit is underway.

The Company had $21.4m in cash as of 30Sep/20 with some $12.1m of unsold gold inventory that cleared in early October as described above.

This is post $5.1m in final FY19 dividends and $3.0m in corporation tax paid in Q3/20.

FY20 guidance is under review amid operational inefficiencies resulting from the flare up of the Nagorno-Karabakh conflict with the conscription of a number of engineering staff as well as reported development delays due to underground rock faulting.

The team expects a 5-10% downward revision to the FY20 guidance of 75-80koz GEO.

Conclusion: Production picked up on the previous quarter reflecting better processed grades with gold prices picking up strongly during the quarter amid a drop in real rates. Operations continue despite an escalation in the Nagorno-Karabakh related conflict between Azerbaijan and Armenia at the end of September and still ongoing, although, the Company is currently reviewing FY20 guidance that is expected to be reduced by 5-10% from previously envisaged 75-80koz GEO. Nevertheless, FCF generation remains strong with the Company continuing to build cash balances while covering dividend payments and ongoing exploration programme aimed at growing the Gedabek life mine with updated mineral reserves/resources due shortly.

*SP Angel acts as nomad and broker to Anglo Asian Mining

 

Anglo American (LON:AAL) 1965.6p, Mkt Cap £26.5bn – De Beers reports continuing signs of recovering diamond sales demand

Anglo American has announced that the eighth De Beers sales cycle of 2020 realised US$467m (2019 – US$297m) and that the previously reported provisional sales for the seventh sales cycle of US$320m have now been confirmed at US$334m.

In March, the company announced that the third sales cycle of the year had been suspended in response to the global pandemic and De Beers’ response is the continuation of its flexible sales approach “with the sight event extended beyond its normal week-long duration. As a result, the provisional rough diamond sales figure quoted for Cycle 8 represents the expected sales value for the period 21 September to 9 October and remains subject to adjustment based on final completed sales”.

Chief Executive, Bruce Cleaver, confirmed however that “We continue to see a steady improvement in demand for rough diamonds in the eighth sales cycle of the year, with cutters and polishers increasing their purchases as retail orders come through ahead of the key holiday season. It's encouraging to see these demand trends, but these are still early days and there is a long way to go before we can be sure of a sustained recovery in trading conditions”.

Although we are uncertain of the sales levels during the period when the normal sales cycles were suspended, the provisional US$467m of the eighth cycle appears to be the highest since the first cycle sales of US$551m reported in January were confirmed providing support for early optimism of a recovery in demand.

 

Resolute Mining (LON:RSG) 54p, Mkt Cap £595m – Underground resource update at Tabakoroni

Resolute Mining has updated its mineral resource estimate for underground resources at Tabakoroni in Mali to 7.4mt at an average grade of 4.4g/t gold for a contained gold resource of 1.04moz.

The resources are reported at a cut-off grade of 1.5g/t and the measured and indicated portion of the resource amounts to 510,000oz (49%) at an average grade of 4.7g/t with the balance classified as inferred at an average grade of approximately 4g/t.

The company’s pre-feasibility study, completed in September 2020, envisages underground mining at Tabakaroni producing around 80,000oz of gold per year at an all-in-sustaining cost of US$974/0z over an initial 5.2 years production life  with treatment using the existing Syama processing capacity which is located approximately 35km to the north.

Life of mine capital is projected at US$118m, including US$32m of sustaining capital and US$20.4m “for conversion of the current Syama Oxide processing plant to also process sulphide material …  and US$12.6m for a new paste plant, power and underground infrastructure for the underground operation at the Tabakoroni site.” The Syama Oxide plant “retains the ability to process oxide material in the event of further exploration success”.

The company points out that they are currently excluding the impact of any further “exploration success along strike and at depth has not been included into the Study, nor has underground potential below the Splay pit been assessed. On completion of the current drill program the Resource Estimate will be reviewed and will form the basis of future mining studies seeking to expand mining along strike and at depth. The current Study infrastructure is suitable to allow further expansion with minimal further investment”.

 

Savannah Resources* (LON:SAV) 2.05p, Mkt Cap £29m – Appointment of advisor for Mutamba development

Savannah Resources reports the appointment of an advisor, Fairview Solutions, to assist and guide the development of the 4.4bn tonnes Mutamba mineral sands deposit in Mozambique.

Fairview Solutions is owned and led by an experienced mineral sands executive and former Vice President of Titanium for BHP Billiton, Bruce Griffin, described as “Commercial Director for Sheffield Resources Limited and a non-executive director of Titanium Corporation. He was formerly the Senior Vice President of Strategic Development of Lomon Billions Group, the world's third largest producer of high-quality titanium dioxide pigments. He has also held executive management positions in several resource companies, including Chief Executive Officer of TZMI, the leading independent consultant on the global mineral sands industry, a director of World Titanium Resources, a development stage titanium project in Africa”.

Savannah’s CEO, David Archer, said that “Bruce is one of the industry's most experienced executives and has a deep understanding of Mutamba from his time at TZ Minerals International Pty. Ltd. ('TZMI'), where he was the CEO, whilst it undertook the Scoping Study of the Project. Mutamba is one of the largest undeveloped mineral sands deposits in the world and Bruce will help Savannah define the best value adding development”.

*SP Angel acts as Nomad to Savannah Resources

 

SolGold* (LON:SOLG) 38p, Mkt Cap £808m – First hole completed at Porvenir as exploration effort accelerates with additional rigs

Solgold reports the completion of its first hole at Porvenir in southern Ecuador (Hole PDH 20-001) at a depth of 909.3m in what is described as “weak to moderate mineralisation”. The hole intersected a total of 893.4m of mineralisation from a depth of 15.9m.

The hole tested the eastern part of the Cacharposa porphyry system and Solgold’s geologists “interpret that the hole passed across the upper periphery of the core of a large, strongly mineralised porphyry copper-gold system”.

Cacharposa lies within a 1.7km long mineralised zone up to 1km wide which the company describes as “consistent with the surface exposure of a vertically extensive, well-preserved porphyry copper-gold system”.

The company cautions that although it finds the long intersection of visible mineralisation encouraging, “this press release is of a preliminary nature and the visual mineralization observed has not yet been assayed.”

A second hole, PDH-20-002, drilled from the same surface location at a steeper angle of 75⁰ is currently at a depth of 3m and is targeted “to more fully transect the interpreted core of the system”.

Another drill rig is being mobilised to site later this month and will be “sited approximately 230m west-northwest of PDH-20-001 with a view to test the central and western portions of the system … Planning and logistical work is underway to ramp up drilling by mobilising an additional five drill rigs to site as quickly as COVID19 restrictions allow”.

Solgold says that in the light of the encouraging results so far at Porvenir it “will plan a larger 50,000m drilling program, subject to ongoing positive results”. Initial indications were that this inaugural drilling programme would be for around 8,000m.

Conclusion: Encountering almost 900m of visual mineralisation in its first hole at Cacharposa Creek is encouraging a rapid build-up of the drilling programme with additional rigs and a planned 50,000m. We await the assay results from the first hole with interest and to provide initial indications of the overall tenor of this extensive intersection.

*SP Angel act as financial advisor and broker to SolGold

 

 

Talga Resources (LON:TLG) A$0.58, Mkt cap A$141m – Silicone Anode interest drives 10 times increase in commercial production capacity

Talga Resources report a significant increase in production capacity for samples of its Talnode-Si anode product.

Potential customers are keen to test Anodes made using lower cost metallurgical-grade silicon in a mass production environment.

The key driver for automotive and EV battery manufacturers is to drive down costs – it’s what they do best!

Talga has now shifted its silicon anode production from the lab to a more scaleable production process which should help the process move to mass production at a later stage.

Conclusion:  It is very interesting to see customer interest in silicon anodes. We note the move from bench-scale to a slightly larger scale process to produce samples for accreditation by customers.

The accreditation process may take one to two years and may or may not result in the adoption of silicon anodes in Li-ion batteries for mass-market / electric vehicle production.

More positively, the development highlights the range of anode products which Talga is able to offer, its close co-operation with its customers and its diversification into technologies which are not dependent on a single technology.

 

Analysts

John Meyer – [email protected] – 0203 470 0490

Simon Beardsmore – [email protected] – 0203 470 0484

Sergey Raevskiy –[email protected] - 0203 470 0474

Joe Rowbottom – [email protected] - 0203 470 0486

 

Sales

Richard Parlons –[email protected] - 0203 470 0472

Abigail Wayne – [email protected] - 0203 470 0534

Rob Rees – [email protected] - 0203 470 0535

 

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.

 

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LME

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ICE

Natural Gas, Uranium, Iron Ore

NYMEX

Thermal Coal

Bloomberg OTC Composite

Coking Coal

SSY

RRE

Steelhome

Lithium Carbonate, Ferro Vanadium, Antimony

Asian Metal

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