Today's Market View - Anglo Asian Mining, Chaarat Gold, Sunstone Metals and more...

Anglo Asian Mining* (LON:AAZ) – STRONG BUY – Update on Restored Contract Areas Chaarat Gold* (LON:CGH) – Kapan production beats guidance and delivers $19m EBITDA Sunstone Metals (ASX:STM) – Drilling results from the Espiritu gold-silver prospect in Ecuador Tertiary Minerals* (LON:TYM) – Sale of data on Finnish project

Anglo Asian Mining PLC -

SP Angel . Morning View . Thursday 21 01 21

Tin prices hit seven-year high on economic recovery and EV battery demand


Anglo Asian Mining* (LON:AAZ) – STRONG BUY – Update on Restored Contract Areas

Chaarat Gold* (LON:CGH) – Kapan production beats guidance and delivers $19m EBITDA

Sunstone Metals (ASX:STM) – Drilling results from the Espiritu gold-silver prospect in Ecuador

Tertiary Minerals* (LON:TYM) – Sale of data on Finnish project

Versarien* (LON:VRS) – Interim results

W Resources (LON:WRES) – La Parilla Q4 production


Tin prices hit 7-year high as demand optimism continues to grow

LME tin inventories continued to fall on Thursday, sliding 225 tonnes to 1,030t.

Three-month nickel prices on the LME rose as much as 3.5% this morning, with prices up 9.6% year-to-date as demand for electronics continues to grow globally.

Sales of semiconductors were up nearly 13% in November, the eleventh straight month of double-digit growth as consumers continue to spend while in lockdown due to the Covid-19 pandemic.


Nordgold targets London IPO in $5bn listing

Russian miner Nordgold is looking to list in London as early as this summer, the Wall Street Journal reports.

The company expect the IPI to value the company at more than $5bn, and expect to float over 25% of the company.

Nordgold’s London float would be its only listing and among the largest mining IPOs since South32 listed in Australia in 2015.

The miner posted a record output in 2020, producing 1.046Moz compared to 1.041Moz in 2019.  


Recent Interviews:

IGTV:   Is 2021 the start of the new COVID-Supercycle or will Lockdowns delay the recovery? https://youtu.be/7LO0tDc-pNc

As traders continue to bid up Tesla, is the EV sector approaching a bubble? https://youtu.be/LaDWBpTZ7SQ

Copper price rise: https://youtu.be/mdPXTup15VY

VOX Markets: 13/01/20 https://audioboom.com/posts/7770987-john-meyer-on-lithium-ironridge-res-savannah-res-kodal-mins-cornish-metals-bluerock-diamonds

iiTV:     The mining stock to own in 2021: https://www.youtube.com/watch?v=4x7SuSLQwCI&t=11s

Small Cap Mining Share tips for 2021 - https://www.youtube.com/watch?v=G_6RKAp91k4

Miners for a green industrial revolution - https://www.youtube.com/watch?v=rXlNS6JIDvg&t=3s

A Mining megatrend and three solid dividend stocks - https://www.youtube.com/watch?v=sH5r-QbTRwg

*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts.

We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, one and all, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate.


Dow Jones Industrials +0.83% at 31,188

Nikkei 225 +0.82% at 28,757

HK Hang Seng -0.12% at 29,928

Shanghai Composite +1.07% at 3,621



Japan – December exports rose 2% YoY as BoJ raises growth forecast for 2022

Japan’s exports rose for the first time in two years in December, driven by shipments to China.

Car exports fell 4.2% in December, with shipments to the EU falling 32.2%.

Japan raised its growth forecast for the next fiscal year from 3.6% to 3.9%.


US/China – Beijing imposes sanctions on 28 officials from former Trump Administration as Chinese foreign policy becomes more agressive

Beijing has targeted 28 former US officials including ex-US secretary of state Mike Pompeo, accusing them of having “seriously violated” China’s sovereignty.

China announced the decision a day after Trump declared that China’s detention of Uighurs amounted to genocide.

Chinese foreign direct investment rose 6.2% ytd in December vs Nov 6.3% yoy


Germany - PPI rose 0.8% in December vs 0.2% in November, yoy 0.2% (-0.5%).


EU - CPI rose 0.3% in December vs -0.3% in November, yoy steady at -0.3%.


UK - CPI rose 0.3% in December vs -0.1% in November. CPI rose 0.6% yoy in December vs 0.3% in November

PPI input 0.8 rose 0.4% in December and 0.2% yoy

PPI output remained unchanged at 0.3% in December vs -0.4% yoy


US - NAHB housing market index 83 in January vs 86 in December.


Currencies US$1.2117/eur vs 1.2138eur yesterday.  Yen 103.55/$ vs 103.78/$.  SAr 14.850/$ vs 14.908/$.  $1.371/gbp vs $1.366/gbp.  0.776/aud vs 0.773/aud.  CNY 6.465/$ vs 6.467/$.

Sterling hits 8-month high against Euro as UK continues to pull ahead in the vaccine race

Sterling may continue to strengthen on Joe Biden’s message of unity and optimism. Biden’s first call as President of the USA is to the UK consolidating the Special Relationship shared between the two nations.

The pound is also rally against the euro, with the UK’s faster rollout of Covid-19 jabs leading to hopes that the UK will recover at a faster pace once immunity is established.

The UK is fourth highest in the world in terms of proportion of population vaccinated, while the EU plays the blame game as countries begin to see delivery shortages of the Pfizer vaccine.

The pound rose 0.3% against the euro on Wednesday, crossing the €1.13 mark for the first time since May 2020.


Commodity News

Rabobank to close commodity finance desks in London, Shanghai and Sydney

Rabobank will close the three desks, citing the Covid-19 and international trade tensions as key reasons.

Commodity finance operations are to be centralized to Hong Kong and Utrecht (Fastmarkets MB).


Precious metals:  

Gold US$1,870/oz vs US$1,856/oz yesterday - Gold price hit two-week high on US stimulus hopes

Gold prices rose on Thursday as the dollar slid on renewed US stimulus hopes under President Biden’s administration.

Biden’s $1.9tr stimulus plan renewed gold’s appeal on inflation woes, with previous rounds of stimulus implemented under Trump causing gold prices to move higher.

Bullion gained 1.7% on Wednesday and continued to rise on Thursday morning to over $1,870/oz (Reuters).

Gold ETFs 107.2moz vs US$107.2moz yesterday

Platinum US$1,116/oz vs US$1,099/oz yesterday

Palladium US$2,388/oz vs US$2,380/oz yesterday

Silver US$25.86/oz vs US$25.52/oz yesterday


Base metals:  

Copper US$ 8,058/t vs US$8,059/t yesterday - China refined copper production rose 7.4% yoy last year to 10.03mt, National Bureau of Statistics

Aluminium US$ 1,996/t vs US$1,981/t yesterday

Nickel US$ 18,420/t vs US$18,220/t yesterday - Global nickel market surplus rose to 2,000t in November from a 400t surplus in October (INSG)

The surplus in nickel rose to 109,600t in the first 11 months of the year vs a 37,600t deficit a year earlier.

Nickel prices continue to rise despite the news driven by strong demand for nickel for Stainless Steel in China, due to Stimulus and new housing projects

Mine production fell to 2,158t for the January-November period from 2,330t yoy

Refined production rose to 2,227t from 2,172t a year earlier as refineries used stocks

Demand for nickel is rising for Li-ion NMC battery production driven by Electric Vehicle demand. Wile this still represents under 10% of total market demand


Zinc US$ 2,744/t vs US$2,714/t yesterday - China refined zinc production rose 2.7% yoy last year to 6.43mt, National Bureau of Statistics

Lead US$ 2,044/t vs US$2,024/t yesterday - China refined lead production rose 9.4% yoy last year to 6.44mt, National Bureau of Statistics

Tin US$ 22,100/t vs US$21,165/t yesterday



Oil US$55.7/bbl vs US$56.5/bbl yesterday

Natural Gas US$2.498/mmbtu vs US$2.498/mmbtu yesterday



Iron ore 62% Fe spot (cfr Tianjin) US$165.1/t vs US$166.5/t

Chinese steel rebar 25mm US$663.6/t vs US$664.0/t

Thermal coal (1st year forward cif ARA) US$69.3/t vs US$68.7/t

Coking coal swap Australia FOB US$144.0/t vs US$140.0/t



Cobalt LME 3m US$37,520/t vs US$37,520/t

NdPr Rare Earth Oxide (China) US$70,226/t vs US$69,735/t

Lithium carbonate 99% (China) US$9,513/t vs US$9,509/t - Pilbara Lithium purchases Altura Lithium for A$201m

Pilbara Lithium has purchased 100% of the Altura Lithium project which is adjacent to Pilbara’s existing spodumene operation in Western Australia (Australian Mining).

The acquisition has created the largest independent hardrock lithium mining and processing operation in the world, though the operation will remain[on care and maintenance while Pilbara determines a suitable operating strategy.

Pilbara’s production capacity is 330,000tpa of 6% spodumene concentrate, with a stage 2 expansion planned to increase production to around 825,000tpa. Altura has a capacity of 220,000tpa.

Ferro Vanadium 80% FOB (China) US$30.2/kg vs US$30.2/kg

Ferro-Manganese high carbon 78% Mn US$1,430/t vs US$1,380/t

Tungsten APT European US$235-240/mtu vs US$235-240/mtu

Graphite flake 94% C, -100 mesh, fob China US$530/t vs US$520/t                

Graphite spherical 99.95% C, 15 microns, fob China US$2,475/t vs US$2,475/t

Spodumene 6% Li2O min, cif (China) US$395/t vs US$380/t


Battery News

European turbine orders hit record 15MW 

Wind turbine orders across Europe grew to 15GW in 2020, up by 74% year on year.  

8.2GW of onshore wind turbines were ordered – a 13% increase compared to 2019. Offshore orders grew six-fold compared to the previous year to 6.4GW.  

The UK ordered the most wind turbine capacity with 4.4GW, followed by the Netherlands with 2.4GW and Sweden came third with 1.4GW.  

Sweden ordered the most onshore wind turbines and the UK ordered the most offshore. 


U.S. return to Paris climate accord 

Joe Biden has returned the US to the Paris climate accord. 

Climate diplomats want to see the US commitment to cut emissions this decade and a diplomatic push to convince others, such as China, to follow suit.  

Biden wants to put the US on track to net zero emissions by 2050. The EU will propose a carbon levy on imports of certain polluting goods to protect European industry from cheaper competitors in countries with weak climate policies. Biden has pledged to do the same. 

Policy analysts say a joint US-EU carbon border measure could drive faster decarbonisation in countries with high emitting export-oriented sectors.  


Recovering precious metals from industrial waste 

An inexpensive, non-toxic method has been developed to recover silver and palladium from industrial waste.  

Researchers in Japan have developed a method that uses adsorption to capture the silver and palladium. They used cellulose absorbent – dithiocarbonate – modifies cellulose (DMC) to recover the metals. 

They used the DMC to absorb the metal ions. It also partially adsorbed copper and lead base metals, but these could be removed by washing the DMC with nitric acid, leaving only the precious metal ions. The DMC was then incinerated at 500oC and 850oC for silver and palladium respectively to produce elemental metal powder. 

The powder could then be converted into metal pellets by further heating to 950oC and 1,600oC for silver and palladium respectively. The yield for recovery of both metals as pellets is around 99%, showing that the DMC has a high selectivity for silver and palladium. 


Company News

Anglo Asian Mining* (LON:AAZ) 138p, Mkt Cap £158m – Gold mines restored to Anglo Asian Mining


The Company released an update on its restored contract areas in formerly Occupied Territories and Nagorno-Karabakh including:

Soutely in the Kalbajar district of the formerly Occupied Territories;

Kyzlbulag in Nagorno Karabakh;

Vejnaly in the Zangilan district of the formerly Occupied Territories.

The Company is planning to carry evaluation work in respect of three restored areas once authorities provide permission to access properties with development works start subject to the Company receiving notice in accordance with its PSA that the Organisation on Security and Cooperation in Europe ("OSCE") (or comparable international organisation) has acknowledged a liberation of the previously occupied territories and the Company is satisfied the districts are secure.

Soutely and Vejnaly are now fully under the control of Azerbaijan while Russian peacekeepers are present in the Company’s Nagorno Karabakh contract area.

Soutely Contract Area in the Kaljabar district in western Azerbaijan covers most of the large and high grade Zod gold and silver deposit that was operated by the Russian-owned GeoProMining.

The Contract Area covers ~75% of the property with other part of the mine located in Armenia.

As of 2018, the mine was estimated to host 26.4mt at 3.41g/t for 2.8moz in reserves and 48.3mt at 3.43g/t for 5.3moz in mineral resources (~60% M&I).

The asset accounted for more than half of the Group’s Revenues and EBITDA of the Group in 2018.

The open pit operation supplied 1.5mt ore (3.3g/t) to the Ararat processing plant in Armenia for production of 130koz generating ~$160m in sales and ~$70m in EBITDA ($1,269/oz gold price).

Currently, no mining operations are carried at the mine on the side of Azerbaijan.

Access to the site is difficult given mountainous terrain and no direct road to the western Azerbaijan, although, the government offered to build a road to provide direct access to the Kalbajar region through the northern border of the region.

The Kyzlbulag Contract Area hosts the Kashen copper-molybdenum porphyry deposit in the northern Markert region of Nagorno Karabakh where an Armenian Company “Vallex Group” is reported to have commissioned a treatment plant.

The deposit is estimated to host some 275kt copper and 3.2kt of molybdenum with the Group claiming to have invested $130m in processing facilities.

Separate reports point to the resource of 56mt that would imply ~0.5% Cu and 0.01% Mo grades with the plant capacity of ~2mtpa.

The Company is reporting that to their knowledge the plant was not affected by the latest conflict with both mining and processing operations currently on halt.

Access to the site is currently conditional on the final resolution of the status of Nagorno Karabakh.

Finally, the Vejnaly Contract Area in the Zangilan district of southwestern Azerbaijan is reported to have been subject to some historical mining, although, the potential for exploration and further production is currently unknown.

The region is under the control of government forces of Azerbaijan and the Company is planning to commence evaluation of resources and infrastructure once access to the site is secured.

Separately, the ceasefire agreement between Armenia and Azerbaijan also includes the provision of direct road and rail links between Nakhchivan and the rest of Azerbaijan through the Syunik region in the southern part of Armenia that would significantly help logistics for future exploration and potentially development works at the Ordubad Contract Area.

Recommendation: We are raising our recommendation for Anglo Asian Mining to STRONG BUY from BUY due to the significance of today’s announcement.

Conclusion: The end of military conflict in the Nagorno-Karabakh area and the ceasefire agreement in Nov/20 is a welcome development that we hope will bring peace to the area and end the long-lasting territorial dispute. The update on Restored Contract Areas highlights the strong mineral endowment of the region. At least two of contract areas have proven to host significant precious and base metals resource with established mining and processing operations. While future evaluation works are subject to authorities allowing safe access to properties and development works are likely to be subject to OSCE or other comparable international organisation notification over the stats of the area, the potential value upside from highlighted properties is significant.

*SP Angel act as Nomad and broker to Anglo Asian Mining


Chaarat Gold* (LON:CGH) 26p, Mkt Cap £143m – Kapan production beats guidance and delivers $19m EBITDA


At Kapan, gold production totalled 58.2koz GE (2019: 56.5koz) beating 55.0koz annual guidance on the back of better grades in Q4/20 and more than budgeted 3rd party material.

AISC were little changed at $1,034/oz compared to last year’s $1,040/oz.

2020 Kapan level EBITDA came in at $19m (2019: $13m) with H2/20 yielding $14.8m v $4.2m in H1/20 supported by strong prices for precious and base metals.

Mining operations slowed in Q4/20 as a number of people were called up for military service in the midst of the Armenia/Azerbaijan conflict in September-November.

The Company focused on mining higher grade zones to make up for lower ore volumes while throughput of 3rd party material also picked up.

The team is planning to catch up on underground development works in Q1/21.

The plant processed 745kt including 68kt of high grade (5.9g/t) 3rd party ore; this compares to 742kt total throughput and 9kt of 3rd party material in 2019.

Operations were not significantly affected by the pandemic highlighting the effectiveness of implemented preventive measures.

FY21 production is guided to come in at 57koz GE.

At Tulkubash, construction preparation and engineering works continued to advance with ~$10m invested in 2020 despite COVID-19 restrictions and political unrest in Q4/20.

BFS and ESIA updates are due in Q1/21 that would pave the way for the bank project funding.

Based on discussions with potential lenders, the funding is expected to be concluded in H1/21.

At Kyzyltash, drilling programme is expected to start later in 2021 as the team is gradually de-risking its major organic growth project with the current preliminary production start targeted for 2026.

Total debt was reduced to $70.5 as of YE20 (2019: $76.2m) reflecting a reduction in the Kapan acquisition loan by $8m from Kapan cash flows.

Conclusion: Robust production at Kapan coupled with strong commodity prices delivered $19m Kapan level EBITDA allowing the Group to reduce its outstanding debt levels. The Company expects Kapan to deliver 57koz GE in 2021 (2020: 58koz) while completion of BFS and ESIA at Tulkubash in Q1/21 should help to close bank project funding in H1/21.

*SP Angel act as Broker to Chaarat Gold


Sunstone Metals (ASX:STM) A$0.015, Mkt cap A$37.6m – Drilling results from the Espiritu gold-silver prospect in Ecuador

Sunstone Metals reports that drilling on the Espiritu polymetallic epithermal prospect in Ecuador has intersected silver/gold/zinc/lead mineralisation and that a combination of the drilling, mapping, soil-sampling and geophysical exploration has indicated a significantly larger mineralised system that originally expected.

The company says that drill-hole ESDD006, which was completed at 359.97m depth, “intersected 5 significant lodes of silver-gold-zinc-lead mineralisation along with multiple lower grade intervals. High grade intercepts include:

3.75m at 11.8g/t silver, 1.54g/t gold from 102m

0.4m at 355g/t silver, 0.36g/t gold, 3.55% zinc from 173m

0.5m at 187g/t silver, 1.44g/t gold from 206m

0.5m at 550g/t silver, 0.26g/t gold from 278m

0.5 at 93g/t silver, 0.68g/t gold, 2.45% zinc from 313m”

The company also says that its recently completed hole ESDD008 also “intersected altered and silver/lead-zinc bearing zones, adding significant scale to the system with a strike extent now of over 200m. Drill hole ESDD009 is underway”.

The company expects to start drilling on the Brama gold-copper porphyry target, where it is “targeting a magnetic anomaly below a mineralised breccia interpreted to represent a ‘pencil porphyry’ gold-copper target”, during the first week of February.

Sunstone also says that at the El Pamar project in Northern Ecuador it is re-logging historic drill holes with a view to targeting a large copper gold porphyry system. Initial assaying of the upper parts of the old drill-holes has returned “mineralised intervals with up to 0.9g/t gold and 0.26% copper over individual samples of ~1m.”

Managing Director, Malcolm Norris, said that “We are very encouraged by the results coming from Espiritu. The key take-aways here are that the system has the potential to deliver bonanza grades and it is likely to have significant scale based on the surface sampling and mapping to date. The vein orientations may be complex but with each drill hole a more robust model is being developed, and with on-going drilling Espiritu could present an early development opportunity while the search for large porphyry gold-copper systems continues at Brama, Limon and other targets”.

Conclusion: Recent drill hole and other exploration results at the Espiritu prospect show that the mineralisation may be more extensive than previously thought. Exploration drilling on a porphyry gold/copper target at Brama is expected to start in early February and re-evaluation of historic exploration drilling at Pamar in northern Ecuador is providing evidence of a large mineralised porphyry system.  We await further results with interest.


Tertiary Minerals* (LON:TYM) – 0.42p, Mkt cap £3.2m – Sale of data on Finnish project

Tertiary Minerals reports that it has sold data from its 2004/5 reconnaissance exploration work on the Kalkkinen platinum group metals prospect in Finland to an unlisted exploration company, Element-46 Limited, for a combination of shares and an NSR covering any future production.

The mineralisation at Kalkkinen occurs as massive and interstitial sulphides hosted in pyroxenite and the earlier exploration work “resulted in the discovery of a zone of outcropping massive sulphide mineralisation where chip sampling returned results which include 2.3% copper with 3.4 g/t palladium-platinum-gold over 0.75m and 0.3% copper with 3.2 g/t palladium-platinum-gold over 1m.”

In payment for the data, Element-46 will issue 200,000 of its shares at a deemed price of 12p/share (£24,000) and a 2% NSR which may be redeemed for US$1m “at any time before commencing construction of a mine”.

Executive Chairman, Patrick Cheetham, said that “We are pleased to become a seed capital shareholder in Element-46 Ltd and to add this royalty interest to our Kiekerömaa and Kaaresselkä royalties in Finland where gold exploration is being undertaken by underlying tenement holder Aurion Resources Limited”.

Conclusion: The sale of exploration data on a non-core prospect it explored over 15 years ago in exchange for shares in an unlisted exploration company maintains Tertiary Minerals’ exposure to the project and any future exploration success although unlisted shares in an exploration company are likely to be a long-term holding unless they ultimately .list on a public market.

*SP Angel act as Nomad and Broker to Tertiary Minerals


Versarien* (LON:VRS) 59.40p, Mkt cap £113m – Interim results

Versarien reports sales of £3.12m for the half year to end September 2020 down from £4.38m yoy.

The drop in sales reflects the impact of the first lockown in the UK and on Versarien’s non-graphene engineering businesses.

Further funding post 30 Sept: Versarien also has a development agreement for £1.96m with the MOD’s Defence, Science and Technology Lab

EU Grant of €357,000 to Gnanomat for scale-up and development of electrode materials.

Gnanomat is making hybrid nanocomposites using graphene and other carbon materials with nanoparticles and other additives for industrial applications.

The company has since been awarded a further £5m loan from Innovate UK loan with a first £1.96m tranche received for the Company's GSCALE project

Graphene face masks: Versarien successfully launched a new protective face mask utilising PolygreneTM, Versarien's graphene enhanced polymer which is kills Coronavirus virions/particles.

An independent report by Ankara University confirms that Versarien's graphene materials significantly inhibit viral infection and possess anti-viral activity towards SARS-CoV-2 coronavirus. Prototypes show a 99.92% anti-viral activity rate in tests.

Rolls Royce: Versarien is now working with Rolls Royce and the Graphene Engineering Innovation Centre on aerospace applications using CVD graphene and other 2D materials.

Vehicle emissions: Work has started with the Advanced Propulsion Centre for reducing vehicle emissions. Improving vehicle emissions to lower levels offers significant value given the huge embedded investment in combustion engines and the likely future shortages of electrical power as Electric Vehicles gain in popularity and use.

GSCALE: The Innovate fund has committed £75m to the GSCALE project with funding for the scale up development of new and improved products.

Versarien is the largest beneficiary of this funding and is running trials ramp up capacity to >10tpa of graphene powder.

Rail carriage door side panels: phase 3 tests underway with partners

GraphinksTM: show a near 40% gain in the compressive strength of concrete and 25% increased resistivity to reduce corrosion

Infrastructure bridging solutions using knowledge from Veersarien’s rail arch product which is to be installed on certain London underground lines

GrapheneWearTM :  the team have produced base layers which are to be distributed for wearer trials see: https://graphene-wear.com/

Tyres: Versarien Graphene in tyres shows a 30% increase in tyre rubber stiffness without degrading wear resistance

Acquisition: for the graphene Chemical Vapour Deposition equipment and Intellectual Property from Hanwha Aerospace in South Korea.

Graphene and graphene product sales rose to £0.35m vs £0.07m a year earlier

The group reports a negative EBITDA of £1.13m vs  -£0.57m for H1 2019

The group loss rose to £4.34m from £2.14m yoy reflecting the cost of ongoing work in the advancement of graphene across a range of products alongside the cost of supporting the non-graphene businesses through the first Lockdown.

Cash reserves were £2.50m at 30 September 2020 vs £1.66m yoy

Funding came in from the UK Innovate fund at £1.96m with a further £0.93m through a Lanstead Sharing Agreement (Equity Drawdown)

Conclusion: Versarien continues to make significant advances in the development of graphene products across a range of applications. We expect many of these products to find commercial application over the next few years leading to significant future royalty and joint venture income from a broad range of partner companies.

*SP Angel acts as nomad and Broker for Versarien. An SP Angel analyst has visited Versarien graphene manufacturing facilities.


W Resources (LON:WRES) 0.11p, Mkt Cap £7.9m – La Parilla Q4 production

W Resources reports that production of both tungsten trioxide and tin concentrates from its La Parilla mine in Extremadura in Spain improved during Q4 2020 compared to Q3.

Plant throughput increased by 15% to approximately 262,000t (Q3 – 171,000) with tungsten trioxide feed grades improving from 0.085% to 0.094% and tin grades improving from 0.018% to 0.032%.

Recovery rates for tungsten trioxide remained broadly steady at 31% (Q3 – 30%) while tin recoveries declined from 37% to 26%.

The company explains that “Recoveries for the quarter were impacted by the performance of the jigs which slowed the recovery rates for both October and November. Whilst this was disappointing, especially after such a strong September, the improvement programme identified the issues which were resolved alongside other key plant improvements and resulted in December being the best ever month for concentrator recovery at 50% and WO3 concentrate at 41.5%”

Shipments of tungsten trioxide concentrate improved from 62.1t in Q3 to 100.2t in Q4 although shipments of tin concentrate declined to 26.1t (Q3 – 38.1t) and the company points out that “Whilst the tonnage of tin shipped in Q4 was lower than Q3 it was a very high grade (57% compared to 31%) and therefore commanded a much higher price than previous shipments. This higher grade concentrate is a result of better recovery and improved separation, a direct result of the work undertaken to improve flotation and magnetic separation, which allows less impurities going into the final concentrate”.

Conclusion: La Parilla continues to struggle with recovery rates although the company says that December 2020 was “the best ever month for concentrator recovery at 50% and WO3 concentrate at 41.5%”



John Meyer –  – 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



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



*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

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Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt


Oil Brent


Natural Gas, Uranium, Iron Ore


Thermal Coal

Bloomberg OTC Composite

Coking Coal




Lithium Carbonate, Ferro Vanadium, Antimony

Asian Metal


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