SP Angel . Morning View . Wednesday 24 03 21
Eurozone economy posts first growth in six months
Arc Minerals* (LON:ARCM) – Arc raises £1.8m and agrees to acquire licenses in Botswana for the issue of £1.2m worth of new shares
Cornish Metals* (LON:CUSN) – Drilling at United Downs imminent
Lucara Diamonds (CVE:LUC) – Project finance for Karowe mine underground development
Oriole Resources (LON:ORR) – Reduced losses in 2020
Rainbow Rare Earths* (LON:RBW) – Rainbow results show turnaround as costs fall while sales climb
Resolute Mining (LON:RSG) – Mining lease terminated at Bibiani
Taseko Mines (LON:TKO)– Arizona court rules in favour of mining and awards cost against the local council at Florence
Suez Canal blocked after huge container ship runs aground
One of the world’s most vital shipping lanes has been blocked after one of the world’s largest container ships ran aground on Tuesday.
The Ever Given container ship, almost as long as the Empire State Building is tall, managed to wedge itself horizontally across the southern end of the canal.
Eight tug boats are currently attempting to free the ship, although authorities say that it is unclear how soon the vessel would be free.
Roughly 12% of the world trade by volume passes through the canal that connects Europe and Asia (Reuters).
The picture which is quite extraordinary can be viewed here: https://twitter.com/marceldirsus/status/1374480496789393412
Copper prices drop below $9,000/t on European lockdowns and firmer US dollar
All base metals prices on the LME with the exception of tin were down on Tuesday afternoon, with copper prices sliding more than 1% back below $9,000/t.
The US dollar rose to a four-month high on Wednesday, with gains attributed to risk aversion and encouraging comments from US Federal Reserve officials.
The dollar hit a fresh seven-week high against AUD, while weak UK CPI data saw the pound sink 0.18% against the dollar on Wednesday morning.
Rising Covid cases in South America and Europe has led to lockdowns in major economies such as Germany, which has dampened confidence and weighed on copper as a result.
Fastmarkets MB expect dips in base metal prices to be well supported as talk around infrastructure spending moves toward actual infrastructure spending- as metals have already performed well over the past 12 months.
Trafigura’s head of copper trading forecasts copper prices rising to $15,000/t
Just when we thought we were the most bullish people on copper along comes a respected and sometimes feared trading organisation with an even higher forecast
Trafigura who are possibly the largest copper trader now reckon copper prices might rise to $15,000/t at some point over the next 10 years as demand drives the market into a deep deficit.
Demand is being driven by stimulus spending on rolling out Electric Vehicle charging points, Offshore wind farms and other stimulus construction projects, not to mention a rise in demand for other consumer electronics and air conditioners.
International Copper Study Group reported global refined output saw a 559,000t deficit last year representing just over 2% of the annual global output.
The electrification of transport and distributed power generation requires substantial tonnages of copper in cabling and motor windings with manufacturers finding that more copper is required from a practical-working perspective than theory might suggest.
Whole copper pipes may be substituted with aluminium in air conditioners and with plastic pipes in construction there is no cost-effective substitute for copper in vehicles, motor windings and EV charging points.
The major miners are scrambling to find more copper with the next best thing to a gold rush going on in Zambia, Ecuador and Chile for new exploration targets.
Reports highlight increasing interest by Rio Tinto, BHP, Anglo American and others looking for new exploration areas in Zambia.
BHP and Newcrest are involved with SolGold in Ecuador and all the majors are likely to be interested in whatever they can lay their hands on in Chile.
But it can take over 10 years for a sizeable discovery to come to production leaving the market short in the meantime as production ramps up.
While the world’s major copper mines were able to respond to higher copper prices back in 2006 and 2011 after Subprime crisis stimulus many now suffer greater constraints in expanding their production, hence the race to find new mines to develop.
Smaller miners are likely to respond faster adding a number of new mines in the next five to 10 years alleviating some pressure on copper prices but will still struggle to keep pace with demand growth by our reckoning.
The result will be a range of new copper mining IPOs offering multiple upside potential for investors in the London market.
Antofagasta averts strike at Chile’s biggest copper mine
Workers at the company’s Los Pelambres copper mine in Chile accepted a wage offer in an eleventh-hour deal on Tuesday.
Members voted 71% in favour of the proposal after a lengthy negotiation including two weeks of government mediation.
The new contract includes a 3.4% real pay rise and bonuses and benefits that amount to US$27,000 per worker.
Recent Interviews:
IGTV: VW expansion driving battery metals prices: https://youtu.be/7vqSrONBaWw
Are we in a new commodity supercycle, or is one coming? https://youtu.be/sw6gLNnM1s0
Is this a new Supercycle for commodities: https://youtu.be/BIWb-wqoLpM
VOX Markets: 12/03/20: https://www.ig.com/uk/market-insight-articles/volkswagen_s-electric-vehicle-expansion-plans-drive-a-record-hig-210317
*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, 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.
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
Dow Jones Industrials -0.94% at 32,423
Nikkei 225 -2.04% at 28,406
HK Hang Seng -2.03% at 27,918
Shanghai Composite -1.30% at 3,367
Economics
China – The country imported only a third of the goods it said it would under the two-year target set in the US/China trade deal signed in Jan/20, Bloomberg writes.
Total purchases of US agricultural, manufactured, and energy goods were $123bn in 14 months since the trade deal was agreed or 32.6% of the $378bn target for 2020-21.
Japan – Private sector activity remained subdued at the end of Q1/21 with hopes for a recovery to follow after the lifting of state of emergency measures and accelerating vaccination programme.
Jibun Flash Manufacturing PMI: 52.0 v 51.4 in Feb.
Jibun Flash Services PMI: 46.5 v 46.3 in Feb.
Jibun Flash Composite PMI: 48.3 v 48.2 in Feb.
US - New home sales fell 18.2% to 775k units in February vs 3.2% at 948k units in January
Germany – Services industry business activity increased in March marking the first expansion since Sep/20 last year on optimism for a partial lifting of COVID-19 restrictions.
Manufacturing climbed at record pace with rising sales to Asia (particularly China), Europe and the US leading to the strongest growth in goods export orders.
Combined two sectors recorded a 37-month high expansion rate.
“The ‘flash’ PMI pointed to a notable upturn in German business activity in March, with the data therefore hinting at the prospect of a better-than expected economic performance in the first quarter… the result owed to a combination of survey record growth in manufacturing output and a better performance from services, where some firms benefitted from the slight easing of lockdown restrictions,” Markit wrote.
Optimism is running high, although, since the survey was completed before the “emergency brake” restrictions announced in recent days to stem a third wave of infections, that may change as we go into April.
Markit Flash Manufacturing PMI: 66.6 v 60.7 in Feb and 60.5 est.
Markit Flash Services PMI: 50.8 v 45.7 in Feb and 46.5 est.
Markit Flash Composite PMI: 56.8 v 51.1 in Feb and 51.6 est.
France
Markit Flash Manufacturing PMI: 58.8 v 56.1 in Feb and 56.3 est.
Markit Flash Services PMI: 47.8 v 45.6 in Feb and 45.5 est.
Markit Flash Composite PMI: 49.5 v 47.0 in Feb and 47.2 est.
Eurozone – The economy returned to growth for the first time in six months in March led by a survey record increase in manufacturing output as global demand continued to recover from pandemic.
The services sector posted another contraction, although, at a slower pace, the weakest since last August.
New orders returned to growth with new export business climbing especially sharply on the back of an unprecedented growth in manufacturing.
Stronger new business inflows saw companies increasing hiring with employment increasing at the steepest pace since Nov/19.
Although outlook waned slightly from February’s three-year high due to in part to concerns over a third wave of virus infections.
On inflation, “the surge in demand for manufactured goods is meanwhile stretching supply chains to an unprecedented extent, in turn pushing costs up at the fastest rate for a decade… these cost pressures will likely feed through to higher consumer price inflation in coming months,” Markit wrote.
Markit Flash Manufacturing PMI: 62.4 v 57.9 in Feb and 57.6 est.
Markit Flash Services PMI: 48.8 v 45.7 in Feb and 46.0 est.
Markit Flash Composite PMI: 52.5 v 48.8 in Feb and 49.1 est.
UK – Inflation unexpectedly slowed last month on the back of lower prices for clothing, second-hand cars and games, FT reports.
CPI came in at 0.4% in February from 0.7% in the previous month and 0.8% estimated.
Clothing prices are typically increasing in February after the conclusion of holiday sales, but this year discounting continued because of the pandemic interruption to usual shopping patterns.
Expectations are a sharp rebound in the economy will drive consumer price inflation to just below the BOE 2% target by the end of this year.
Consumer optimism has picked up in recent weeks on PM Johnson plans to vaccinate nearly all adults by the end of June.
Core CPI came in higher but also posted a drop in the pace compared to January.
Core CPI (%yoy): 0.9 v 1.4 in January and 1.4 est.
Canada – The central bank is considering an option to taper QE purchases in “gradual and in measured steps” as economy recovers.
“We will eventually get down to a pace of QE purchases that maintains but no longer increases the amount of stimulus being provided,” Deputy Governor Toni Gravelle said.
The timing of the so-called “reinvestment phase” will be guided by the central bank’s economic outlook, he added.
The BOC has been buying C$4bn in federal government bonds each week to help keep market rates low.
The central bank now hole a little more than 35% of outstanding government bonds.
10y bond yields climbed briefly on Tuesday to 1.53%, but pulled back and ended up sub 1.50% later in the day.
Currencies US$1.1819/eur vs 1.1902eur yesterday. Yen 108.65$ vs 108.76/$. SAr 14.862/$ vs 14.797/$. $1.369/gbp vs $1.383/gbp. 0.760/aud vs 0.768/aud. CNY 6.524/$ vs 6.511/$.
Commodity News
Precious metals:
Gold US$1,729/oz vs US$1,738/oz last yesterday
Gold ETFs 100.6moz vs US$100.8moz yesterday
Platinum US$1,173/oz vs US$1,178/oz yesterday
Palladium US$2,620oz vs US$2,597/oz yesterday
Silver US$25.15/oz vs US$25.54/oz yesterday
Base metals:
Copper US$ 8,969/t vs US$9,043/t yesterday
Aluminium US$ 2,234/t vs US$2,232/t yesterday
Nickel US$ 16,115/t vs US$16,580/t yesterday
Zinc US$ 2,813/t vs US$2,847/t yesterday
Lead US$ 1,955/t vs US$1,969/t yesterday
Tin US$ 25,295/t vs US$25,980/t yesterday
Energy:
Oil US$61.8/bbl vs US$63.6/bbl yesterday
Oil prices fell by more than 4% yesterday, weighed down by concerns about immediate demand and speculators liquidating long positions
The nearest Brent Crude contract for May was trading at a discount to the next-month contract, the June contract, for the first time since January this year
The contango, the structure in which the front-month price is lower than prices in future months, points to an oversupply on the market
Only the nearest contract was in contango, but the weakness in the backwardation in recent days has exacerbated concerns over near-term oil demand
Signs have emerged from the physical market that spot oil demand was not as strong as oil futures prices had suggested for more than a month
New or extended lockdowns in Europe, including in Italy, France, and Germany, prompted concerns about mobility and oil demand in the next few weeks, while the vaccination programs in many European countries are lagging behind the US and the UK
Europe’s biggest economy, Germany, is extending its lockdown through to 18 April, with a stricter lockdown for Easter to “break the exponential growth of the third wave”
Money managers have also started to pull money off crude long positions, further weighing on oil prices.
A stronger US dollar are further depressing oil prices, while investors also move to haven asset classes such as US Treasuries and shunning riskier assets.
Natural Gas US$2.536/mmbtu vs US$2.545mmbtu yesterday
Natural gas futures remain volatile as according to the latest report from the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal for the next 6-10 and 8-14 days
US LNG exports decline week over a week, according to the Energy Information Administration, likely reducing demand
Demand declined last week in the US as the heating season approaches the end
Asian demand for US exports was strong throughout the winter and now, heading into spring, European demand is mounting as storage levels on the continent dwindled substantially in recent months
Since Winter Storm Uri resulted in reduced outages and gas conversation for residential use in Texas, LNG demand has risen 10.0Bcf/d in the past month
Further demand gains are possible – perhaps even eclipsing 12.0Bcf/d if all terminals achieve maximum demonstrated demand levels at the same time
Gains in LNG feed gas and Gulf Coast industrial demand for natural gas this week may help offset declines in weather-driven demand, allowing small withdrawals to continue near-term.
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$153.5/t vs US$154.3/t
Chinese steel rebar 25mm US$727.8/t vs US$731.5/t
Thermal coal (1st year forward cif ARA) US$72.0/t vs US$72.5/t
Coking coal swap Australia FOB US$127.0/t vs US$127.0/t
Other:
Cobalt LME 3m US$52,610/t vs US$52,610/t
NdPr Rare Earth Oxide (China) US$89,293/t vs US$88,998/t
Lithium carbonate 99% (China) US$12,877/t vs US$12,900/t
Spodumene 6% Li2O min, cif (China) US$510/t vs US$455/t
Ferro Vanadium 80% FOB (China) US$35.0/kg vs US$35.0/kg
Ferro-Manganese high carbon 78% Mn US$1,625/t vs US$1,625/t
Tungsten APT European US$270-275/mtu vs US$268-275/mtu
Graphite flake 94% C, -100 mesh, fob China US$560/t vs US$560/t
Graphite spherical 99.95% C, 15 microns, fob China US$2,525/t vs US$2,625/t
Battery News
Statkraft proposes three solar farms in Britain
Norwegian renewable energy generator Statkraft aims to develop three solar power farms with a combined capacity of 125.5MW in Britain.
They were looking at two sites in Cornwall and one in Suffolk, and these could generate 127 gigawatt hours (GWh) of electricity per year, enough to power nearly 36,000 homes
Statkraft has also proposed the installation of an 18-MW battery at each of the farms in Cornwall and a 55-MW battery in Suffolk.
The batteries would store the electricity generated and provide support to the National Grid. The projects are still subject to planning approval.
GE secures 30MW Vietnamese contract
GE Renewable Energy has won a turbine contract from Vietnam Join-Stock Construction Electricity Corporation (VNECO) for the over 30MW Thuan Nhien Phong wind farm in Vietnam.
The deal covers supply of eight GE 3.8-137MW machines for the project in Binh Thuan province, as well as a 10-year full-service operations and maintenance agreement.
The turbines will have 137 metre rotors and hub heights of 131.4 metres.
Company News
Arc Minerals* (LON:ARCM) – 6.8p, Mkt cap £74m – Arc raises £1.8m and agrees to acquire licenses in Botswana for the issue of £1.2m worth of new shares
(Arc holds 72.5% of Zaco and 66% of Zamsort in Zambia. The Cheyeza license is 66% owned by Arc Minerals through its holding in Zamsort.)
Arc Minerals reports the company has raised £1.8m at 6.5p issuing another 27.7m new shares.
The directors state the funds will be used to target surface anomalies identified in soil sampling programs.
The statement highlights that a number of targets are now believed to host a series of ‘deeper’ mineralised systems.
By their nature these targets will be more expensive and difficult to find and are likely to be very much more difficult to discover if present.
Management also state the placing proceeds will be used for working capital purposes; to progress work at the proposed acquisition sites.
Alvis Acquisition: The company has also signed a binding term sheet for the acquisition of 75% of Alvis Crest which holds two prospective licenses in the Botswana Kalahari Copperbelt.
Acquisition cost: Arc will issue another £1.2m worth of new shares in accordance with the 10-day VWAP prior to the completion of a binding sales agreement.
Arc has committed to the issue of US$200,000pa on the Alvis and also holds an option to acquire the remaining 25% of Alvis for a further $5m.
Arc appears to have also committed to a 1% net smelter royalty on production from the property capped at $30m. The royalty can be bought out at a cost of $5m till Arc makes an investment decision on the property. These prospecting licenses are adjacent to properties held by Khoemacau Copper Mining.
Options surrender: We had a number of calls from investors on Arc’s agreement to surrender share options from investors who saw this as a process to reduce downside for the option holders while locking in profits.
Some of these investors will see today’s announcement as opportunistic and will likely be disappointed.
*SP Angel acts as Nomad and broker. The analyst holds shares in Arc Minerals..
Cornish Metals* (LON:CUSN) – 8.63p, Mkt cap £22.4m – Drilling at United Downs imminent
Cornish Metals has announced that it has now received the required permits and that it plans to start drilling at its United Downs project in the historic Gwennap mining district of Cornwall on 6th April.
Historically, the area was a prolific mining location from the 18th century and intermittently thereafter until as recently as the latter part of the 20th century when the Wheal Jane and Mt Wellington mines, which lie to the east of United Downs, closed in the aftermath of the breakdown of the International Tin Agreement.
Recent drilling confirmed that mineralisation continues at United Downs at depths below those accessed by the historical mining with hole GWDD-002 intersecting “4.04m grading 4.4% Cu and 2.06% Sn at a downhole depth of 638.85m - 642.89m beneath the United Mine”.
We note that GWDD-002 also “recorded 14.69 metres ("m") at 8.45% copper ("Cu") and 1.19% tin ("Sn")” at shallower depths between 90.60m and 105.29m.
CEO, Richard Williams said that the forthcoming programme, from up to five sites, “will focus on tracing the recently discovered high-grade copper-tin structure along strike and down to a depth of up to 500m. Thereafter, depending on success, we aim to conduct a second phase of infill drilling later in the year to enable a maiden mineral resource to be defined”.
Mr. Williams added that “We now very much look forward to commencing this drill programme and discovering what more this historic mining area has to offer”.
Cornish Metals made its AIM Market debut on 16th February and had previously announced that it expected to restart drilling at the United Downs property in late March or early April.
Conclusion: Cornish Metals’ previously announced plans to drill at United Downs will be starting in early April aimed at mineralisation below the depths of historic mining. If successful, a second phase of drilling later in the year will seek to define an initial mineral resources estimate. We look forward to news as the drilling progresses.
* SP Angel acts as broker and financial advisor to Cornish Metals
Lucara Diamonds (CVE:LUC) C$0.71, Mkt Cap C$282m – Project finance for Karowe mine underground development
Lucara Diamonds reports that it has secured a project finance package of US$220m from a consortium of international banks to fund the underground expansion of its wholly-owned Karowe diamond mine in Botswana.
The underground mine development id expected to cost US$514m over a five-year development period with the balance of the “development capital … expected to come from operating cash flow generated by open pit operations at Karowe during the development period”.
President and CEO, Eira Thomas confirmed that “This debt package will… [extend] … Karowe's mine-life out from 2025 until at least 2040. The project is underpinned by strong economics, is expected to payback in under three years and contribute more than $4 billion of additional revenues using conservative diamond pricing assumptions.”
Outlining the timetable, Ms Thomas said that “We are targeting completion of the project financing package by mid-year, with full project sanction thereafter”.
Oriole Resources (LON:ORR) – 0.93p, Mkt cap £14.4m – Reduced losses in 2020
Oriole Resources reports a reduction in operating losses to £0.34m in 2020 (2019 – loss £1.41m) and an 81% decline in after tax losses to £0.32m (2019 – loss £1.66m).
The company says that “Whilst this significant reduction in the loss for the year was partly driven by an unrealised foreign exchange gain of £317k, compared to a £445k exchange loss in the prior year, the rest of the decrease, some £578k, was driven by further reductions in costs and increases in the profitability of the consultancy business built up by our Turkish team”.
Oriole Resources reports a 31st December 2020 cash balance of £1.75m.
With the company’s focus increasingly shifting to its West African exploration it “continued with its asset realisation programme, with the sale of two Turkish royalties bringing in US$80k cash and a further US$470k to follow as the projects progress. The disposal of our holding in Tembo delivered further proceeds of £172k”.
Outlining plans for 2021, Non-Executive Chairman, John McGloin, said that “we expect news across five drill programmes, as well as the generation of targets across our 3,592 km2 Central Cameroon licence package. With cash in the bank, and further cash potentially coming in from warrant exercises and the legacy asset realisation programme, the near-term exploration programme is fully-funded”.
Rainbow Rare Earths* (LON:RBW) 15.77p, Mkt Cap £75m – Rainbow results show turnaround as costs fall while sales climb
(Rainbow hold 70% of Phalaborwa with 30% to be held by Bosveld Phosphates. There is currently no BEE requirement as this is a retreatment processing operation)
Rainbow rare earths report a reduced post-tax loss of US$895k for the six months to end December vs $1,058k a year earlier.
Revenues rose to $527k from $156k yoy as production ramped up at the Gakara rare earth mine in Burundi and rare earth prices improved.
Production and sales costs fell to $527k to match revenues highlighting the operational improvement at the mine.
Administration, depreciation and finance expenses halved yoy reducing the pre-tax loss to $890k from $1,057k yoy.
Gakara: Management worked through the year to improve the operation of the Gakara mine using new, larger and more reliable machinery.
Drilling on the licenses around the Gakara mine identified a number of similar high-grade carbonate areas suitable for future mining and resource expansion.
Gakara continues to ramp up production in the trial mine producing 300t of REE concentrate in the six-months to end December demonstrating the viability of expansion to 10,000tpa of rare earth carbonate production.
Capita cost estimates show $35.2m and operating costs of $1,279/t for a 10,000tpa high-grade cerium-depleted mixed rare earth carbonate, containing approximately 39% NdPr plant and associated mine infrastructure.
Note: management are targeting the potential to further expand Gakara to 20,000tpa in time.
The mine also recorded zero lost time injuries in the period, a great achievement for a mine operating with a relatively large workforce in an economically challenged environment.
Phalaborwa: the team continue to work on the Phalaborwa tailings demonstrating relative consistency of rare earth grade within the tailings as well as the presence of the rare earth elements in chemical ‘cracked’ form for easier processing.
Management are working on optimising the processing flow sheet used in the pilot plant at Phalaborwa to improve recoveries and operational costs to potentially make this one of the world’s lowest cost rare earth carbonate / hydroxide producers. The rare earth elements have unusually low levels of radioactivity should make the Phalaborwa product popular with buyers.
We expect to see an optimised PEA on the Phalaborwa project later this year based on an in-situ grade of 0.5% of which 29-30% assays as Neodymium and Praesidium NdPr.
Prices: neodymium prices rose followed by praseodymium which climbed 27% through the period driven by announcements of new offshore wind farm developments and forecast increased buying activity by turbine manufacturers.
Offshore wind farms: Recent approvals and funding of some new and massive offshore wind farms is likely to push the market for NdPr into deficit and may eventually delay the delivery of the permanent magnets required to make wind turbines more reliable and efficient.
The challenge will be for miners like Rainbow to ramp up rare earth processing to meet the new demand for NdPr and other key rare earth elements as wind turbine manufacturing ramps up to meet the new orders for new offshore wind turbine capacity over the next decade.
Electric vehicles: Permanent magnets are also used to enhance the efficiency of electric vehicles and other motorised components with the rise in new manufacturing capacity raising demand for many critical raw materials. EV sales are expected to grow NdPr demand from 4,200–9,600tpa from 2020-2025.
Demand growth of 5.7% pa is expected to 2050 and is expected to be a key contributor to emissions targets.
China still commands some 80% of global REE production causing many non-Chinese manufacturers to seek alternative suppliers for permanent magnets and NdPr supply.
Conclusion: Rainbow are well placed to fill the forecast gap between current mine supply and growing demand. The challenge is to bring on new production fast enough to meet growth in Western demand and to enable new Western refineries in the supply chain.
*SP Angel act as broker and financial advisor to Rainbow Rare Earths
Resolute Mining (LON:RSG) 27.5p, Mkt Cap £403m – Mining lease terminated at Bibiani
Resolute reports that it has received a letter dated 23 March 2021 from the Ghanaian Minerals Commission advising that the mining lease for the Bibiani Gold Mine stands terminated.
As a result of the notice, the company has ceased all activities and operations at the mine.
The company say the action is unexpected and the board is seeking clarification from the minister’s office for the rationale behind the termination.
Resolute is currently seeking legal advice on the validity of the notice, along with its right of appeal and potential recourse.
The Company also reports that it is considering the impact of the notice on the sale agreement with Chifeng Jilong Gold Mining regarding the sale of the Bibiani Gold Mine.
Taseko Mines (LON:TKO) 132.5p, Mkt Cap £356m – Arizona court rules in favour of mining and awards cost against the local council at Florence
Taseko Mines reports the Arizona Court of Appeals ruling confirmation of a ruling by a lower court upholding the company’s right to mine its property within the confines of the town of Florence.
The town council’s appeal was rejected and the Court awarded Taseko’s Florence Copper “$1.7 million in legal fees and costs”.
The decision announced today is the latest in a series of rulings which support the mining activity and Taseko’s President, Stuart McDonald, said that the decision of “the appellate court … draws to a close all outstanding litigation brought by the Town”.
Mr. McDonald added that although the favourable ruling had been expected by the company it was “important for not only for the Company, but for all those who benefit from the social and economic contribution we are making to the region”.
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
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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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