SP Angel . Morning View . Monday 19 07 21
Rare Earth prices continue to rise despite USD strength
Graphene producer funding – EIS scheme approval applied for
The company wishes to fund a ramp up in graphene production to get ahead of demand and to develop markets for a number of new, graphene products
The business is also able to upgrade graphite to a higher grade/specifications using its process – rolling out this process also requires funding
Please email if you wish to invest in the company
*SP Angel’s role is limited to making introductions and interested parties should be aware that investment in a private company can present certain risks not present in listed companies (e.g. limited or no liquidity and no rules compelling disclosure of information to investors). This offer is open to professional investors only and is not offered to retail investors.
Alba Mineral Resources (LON:ALBA) - Completion of surface drilling at Clogau
Arc Minerals* (LON:ARCM) – Drilling starts on the Fwiji licenses in Zambia
Caerus Mineral Resources (LON:CMRS) – Drilling underway at Troulli
Controlled Thermal Resources - GM secures California-based Lithium supply
Europa Metals Limited (LON:EUZ) – Initial work submitted under Spanish Government Grant to progress the Toral zinc, lead, silver project in Spain
Shanta Gold (LON:SHG) – FY21 guidance revised down on lower grades; new 5 year plan eyes ~110koz in 2023 as Singida comes online
Strategic Minerals* (LON:SML) – Cobre quarterly magnetite sales
Vulcan Energy (LON:VUL) - signs lithium deal with LG
China – $170bn investment into new rail infrastructure planned for Sichuan province over next 10 years.
Sichuan officials have stated that a total investment of $170b is planned for transport projects over the next decade.
Government estimations suggest that these projects will generate more than $30bn worth of demand for construction materials and $46b in equipment demands.
Projects include a high-speed railway linking Sichuan’s capital, Chengdu, and Chongqing to the south-west.
Electric vehicle manufacturers hope to limit reliance on rare earth magnets - problem is that EVs just don’t work so well without permanent magnets in key components
Automakers accounting for 46% of global sales plan to limit their reliance on rare earth minerals as tensions with China mount.
Their concerns stem from a combination of fears over supply chains, environmental damage and erratic price swings.
China controls 90% of the supply of rare earth magnets, understood as the most efficient way to power EVs.
Neodymium oxide, an integral component of the magnets, is up 90% over the past 9 months.
Nissan are planning to scrap rare earths from their Ariya model, with BMW following a similar approach with its electric SUV.
Tesla, which started off without using permanent magnets in their early models quickly moved onto using permanent magnets in their motors for their greater efficiency and we note is not ruling out use of rare earth minerals in its vehicles going forward.
Question is, do you want to buy a Chinese car with permanent magnets or a less efficient vehicle without. The only solution from a consumer perspective is to expand REE production outside China.
China plan to double down on measures to cool commodity markets
China’s state stockpiler is planning to sell more of its copper, aluminium and zinc reserves following its early July auction.
In other attempts to dampen the market, Beijing has stated it is ‘seeking opinions on combating speculation’. This regards their intentions to investigate iron-ore trading platforms as prices remain near record highs.
China’s sale of stockpiled commodities is not expected to cool prices in the longer term, with July’s metal auctions representing less than 6% each of China’s monthly output.
China State Council investigating illegal resale trades in metals
Auditors of China’s central budget in 2020 unearthed evidence of an illegal resale market for commodities.
Beijing continues efforts to reduce attempts to drive up the costs of Chinese manufacturers’ raw materials.
Tax evasion has been pointed to by the audit as a potential incentive.
A statement by the State Council claims, ‘these problems disrupted normal market order and fair competition’. A special investigation team has been established to probe the issue.
Copper production from Rio Tinto’s giant Oyu Tolgoi copper mine in Mongolia is suffering from Covid-19
Copper production fell 19% to 36,735t in Q1 wit gold production falling 22% to 113,054ozs.
Mill throughput also fell a further 4% on Q1 indicating worse Q2 production figures to come.
Staff shortages are said to have caused copper and gold production to slip according to the operating company, Turquoise Hill Resources.
Personnel numbers are some 25% lower than planned requirements due to lockdowns in various parts of Mongolia.
Underground development is also reported to have been hit by the lack of personnel and Covid operating rules.
The company reports the workforce is 93% fully vaccinated as of 9th July though this does not mean the staff won’t catch the virus and require self-isolation.
Aurubis says floods stop work at Stolberg copper products plant - Reuter
Aurubis report floods have halted production prompting force majeure at its Stolberg copper products plant in Germany.
Henley Regatta to row from Wednesday 11th – Sunday 15th August
Good news for the 182 year old regatta which has only previously been cancelled in WWI and WWII before last year.
In an ideal world the Fawley bar would be extended to the river front to give members and their guests more room though we suspect the 100-year tradition of crushing everyone behind a white picket fence is likely to maintained.
Dow Jones Industrials -0.86% at 34,688
Nikkei 225 -1.25% at 27,653
HK Hang Seng -1.70% at 27,528
Shanghai Composite -0.01% at 3,539
Economics
US – Retail sales numbers beat estimates in June supported by a broader recovery in services spending.
Although, May numbers were revised lower.
July consumer sentiment unexpectedly fell in July (80.8 v 85.5 in June and 86.5 est) hitting a five month low as mounting concerns over rising prices led to a sharp deterioration in buying conditions for big ticket items, Bloomberg cites University of Michigan data.
Separately, US 10y Treasury yields fell below 1.3% amid growth outlook concerns and a resurgence of the pandemic.
Retail Sales (%mom): 0.6 v -1.7 (revised from -1.3) in May and -0.3 est.
Core Retail Sales (%mom): 1.1 v -1.0 (revised from -0.8) in May and 0.5 est.
UK – England has lifted remaining coronavirus restrictions at midnight.
PM Johnson and Rishi Sunak took a decision to self isolate after contact with Health Secretary Sajid Javid who tested positive for coronavirus despite having both vaccines.
Bullish bets on US dollar gain traction
The Commodity Futures Trading Commission has revealed that anticipation of a continued rise in the dollar is being reflected in wagers on the greenback index.
The index has seen its highest level of net long positions in over a year.
Speculators are growing increasingly confident on the dollar’s prospects against the British pound, yen and the euro.
It is understood that this reflects the market’s reaction to the hawkish shift made by Fed policymakers in June.
Shipping rates hit record global levels
Transportation rates are set to continue at their elevated levels following increasing container fees.
To ship a 40ft container from Shanghai to LA currently costs $9,733, according to updated spot rates from Drewry World Container Index.
This marks a 1% increase from Thursday 8th July 2021 and a 236% increase from July 2020.
A composite index which tracks 8 major trade routes is up 339% from one year ago.
The rates have been impacted by a lack of seaborne containers required to carry U.S. goods.
U.S. based manufacturers relying on shipping imports expect the supply problem to extend into 2022.
Imports into LA-Long Beach’s primary port are up 13.3% since June 2019.
Bottlenecks are still problematic at the port, with 18 ships waiting to discharge on Wednesday. However, these numbers are significantly lower than the peak of a 40-vessel queue in early February.
Long Beach’s Executive Director believes that these volumes may be peaking, supposing that ‘demand for good will gradually level off as the national economy continues to open up and services become more widely available’.
South African economic prospects hit by rioters
JPMorgan predict the looting and rioting that has dominated eastern South Africa could cause its economy to contract by 3%, with ramifications expected for full-year growth.
This is a sharp revision to their previous estimate of -0.5%.
Deutsche Bank retain a positive medium-term outlook, however their bearish view on the Rand has been further reinforced.
Increased calls for Ramaphosa’s government to reintroduce the Covid-grant are to be expected.
Myanmar’s troubles boost tin prices
Conflict-torn Myanmar’s military coup in February has disrupted medical facilities ranging from hospitals to the vaccination program.
The country is currently experiencing record levels of Covid-19 infections, with 90% of townships reporting cases.
As the world’s 3rd largest producer, Myanmar’s political and health struggles have further reduced the supply of tin.
Events in Myanmar, shipping complications and similar Covid-related concerns of other tin producers such as Rwanda have sent its price skyrocketing.
Myanmar’s geopolitical concerns follow increased demand for the metal owing to an elevated appetite for electronic goods catalysed by the transition from office to home working.
Maersk aims to tackle supply issues
Shipping giant Maersk is planning to redesign its transportation networks in west and central Asia following delays in cargo times.
They are planning to launch two new services in Asia whilst upgrading an existing network by 7 days.
This comes after supply chains have encountered a ‘perfect storm’ as a result of the pandemic according to Maersk’s head of west and central Asia operations.
There are concerns that tonnage supply currently available will not be sufficient to match Maersk’s intended network enhancements.
Currencies
US$1.1787/eur vs 1.1809/eur last week. Yen 109.96/$ vs 110.00/$. SAr 14.485/$ vs 14.476/$. $1.373/gbp vs $1.381/gbp. 0.737/aud vs 0.743/aud. CNY 6.483/$ vs 6.466/$.
Commodity News
Precious metals:
Gold US$1,805/oz vs US$1,824/oz last week
Gold ETFs 100.3moz vs US$100.4moz last week
Platinum US$1,097/oz vs US$1,134/oz last week
Palladium US$2,641/oz vs US$2,736/oz last week
Silver US$25.38/oz vs US$26.22/oz last week
Base metals:
Copper US$ 9,364/t vs US$9,459/t last week
Aluminium US$ 2,490/t vs US$2,519/t last week
Nickel US$ 19,045/t vs US$19,015/t last week
Zinc US$ 2,984/t vs US$2,979/t last week
Lead US$ 2,312/t vs US$2,327/t last week
Tin US$ 33,400/t vs US$33,415/t last week
Energy:
Oil US$72.6/bbl vs US$73.2/bbl last week –
News over the weekend has confirmed that OPEC+ officials have managed to overcome weeks of acrimony and agree on a joint plan to boost production
A deal has been struck that will see output increase by 400,000bopd each month starting from August until full capacity has been restored
This means that by the end of the year, OPEC+ will have ramped up to deliver a further 2MMbopd each month
The scheme is meant to run until all of the group’s 5.8MMbopd in halted production are restored
If the current pace is maintained, that lands sometime in September-October of next year, however may yet be altered OPEC+ officials will continue to meet monthly to review the program
As it stands, the news seems to have left crude oil traders without a clear directional lead
At surface level, the boost in supply might have pressured prices lower
Elsewhere, pressuring prices are fresh travel restrictions in Asia which have diminshed hopes for a recovery in jet fuel demand this year and worsened the outlook for the entire refining sector due to a resurgence in COVID-19 infections
Asia's worsening pandemic due to the Delta variant is expected to keep flights grounded and poses a serious challenge to refiners despite more encouraging trends in Europe and the US
Whilst Asia was among the first regions to emerge from COVID-19 lockdowns in 2020, a fresh flare ups of new strains in recent months have forced several key destinations such as Japan, South Korea, Indonesia and Vietnam to tighten movement restrictions again
To get an idea of how bad the Asian situation has become, consider that scheduled flight capacity in Japan was 55.6% below the corresponding week in pre-pandemic 2019 while capacity in South Korea, Australia and India were down 46.4%, 56.7% and 40.1%, respectively
In sharp contrast, US and European aviation capacity have been recovering much faster, and therefore presenting refiners in those markets with a growing outlet for the fuels they produce
Refiners in Asia are saddled with growing quantities of excess jet fuel that they are unable to store for long periods thanks to a tendency to deteriorate in quality
That forces them to either sell to other regions or blend it into other lower-value fuels--at the expense of margins
Natural Gas US$3.704/mmbtu vs US$3.595/mmbtu last week
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$213.4/t vs US$212.7/t
Chinese steel rebar 25mm US$818.1/t vs US$809.3/t
Thermal coal (1st year forward cif ARA) US$91.5/t vs US$91.5/t - Supply disruptions bolster rising thermal coal prices
Thermal coal prices have hit their highest levels since 2011, with benchmark prices up over 70% this year.
China’s biggest supplier, Indonesia, has been hit by a combination of persistent rainfall and reduced labour supplies.
Exports from South Africa and Russia have also been affected by rail constraints.
Despite green energy policies expected to reduce demand, decreased investment in new mining projects encourage predictions of thermal coal prices remaining bullish for the foreseeable future.
A report from the International Energy Agency last week suggested that coal-fired electricity appetite has outpaced renewable capacity this year.
The report anticipates a potential ‘all-time high’ in coal-fired electricity generation by 2022.
Coking coal swap Australia FOB US$207.0/t vs US$207.0/t
China Ilmenite Concentrate TiO2 46% US$370.9/t vs US$375.0
Other:
Cobalt LME 3m US$52,500/t vs US$52,500/t
NdPr Rare Earth Oxide (China) US$87,151/t vs US$85,443/t
Lithium carbonate 99% (China) US$12,340/t vs US$12,372/t –
China Spodumene Li2O 5%min CIF US$700/t vs US$700/t
Ferro-Manganese European Mn78% min US$1,951/t vs US$1,954/t
China Tungsten APT 88.5% FOB US$290/t vs US$289/t
China Graphite Flake -194 FOB US$515/t vs US$515/t
Europe Vanadium Pentoxide 98% US$9.1/lb vs US$9.0/lb
Europe Ferro-Vanadium 80% US$39.25/kg vs US$39.25/kg
Spot CO2 Emissions EUA $57.5/t vs $57.6/t
Battery News
EU proposed an effective ban on the sale of new petrol and diesel vehicles from 2035
The plan is to cut greenhouse gas emissions by 55% by 2030 ahead of the previous 37.5% existing target.
Under the Green Deal, the EU has set a 1m EV charging point target by 2025 rising to 3m 2030 and 16.3m by 2050.
EU auditors have warned the EU is not on track to meet these targets.
The EU proposal also raises the cost of carbon emissions from heating, transport and manufacturing along with the taxing of high-carbon aviation and shipping fuels.
Finnish tech group Wärtsilä complete full-scale engine tests using Hydrogen and Ammonia fuel
Wärtsilä has announced ‘very encouraging’ results from a recent laboratory test examining optimum engine parameters for Hydrogen and Ammonia fuel.
The company expect to have both an engine and plant manufacturing operation using pure hydrogen by 2025.
Green Hydrogen is expected to deliver 7% of global energy demand by 2050.
The company’s CEO has described the engine tests as ‘milestone moments’, with current technological developments in hydrogen fuel requiring ‘market-ready engines’.
Company News
Alba Mineral Resources (LON:ALBA) 0.28p, Mkt cap £16.9m - Completion of surface drilling at Clogau
Alba Minerals reports that it has completed its Phase 2 surface drilling programme at the Clogau St David mine in North Wales with 10 holes, totalling 1,475.6m completed. Each of these holes are reported to have intersected the Main Lode extension.
The company also says that it has completed three underground drillholes with two of these “successfully intersecting the Main Lode Extension north of the Llechfraith adit” and that the permit application to de-water the historic Llechfraith Shaft is “progressing well”.
As a result of the drilling the Main Lode, which was “the source of most historic production at the Mine… is now projected to have a strike extent of 585 metres, and a depth extent of 63 metres below surface at its widest point”.
Today’s announcement does not include assay information, which we assume has yet to be completed at the laboratory, but the company says that hole “JW008 intercepted the best developed example of the Main Lode extension including an intercept of ~3.40 m from ~49.90 m”.
JW008 “was drilled to intercept the lode in between JW002 and JW003 in the eastern portion of the drilling programme. JW008 intercepted the best developed example of the Main Lode extension at approximately 10 m west of the intersection in JW002, which is also relatively well developed in terms of thickness”.
Additional drilling of other targets including the depth potential extension of the Grandfather’s Lode and of the 7-10 lodes “intersected the Grandfathers Lode below the Llechfraith Level… [and] … intersected thick quartz veining below the 7-10 Lode. These intersections are considered to represent extensions of the Grandfathers and 7-10 Lodes systems and thus justify further exploration.”
Underground drill holes “UG002 and UG003 were drilled in a northerly direction, and both intercepted the Main Lode extension, adding critical data on how this structure behaves in 3D”.
“The underground drilling programme is currently paused but expected to resume again in due course”.
Alba Minerals says that it will now “be moving into a detailed evaluation of the optimal means to access the key target zones which have been identified from the completed drilling phases, in particular the Llechfraith Lode, Main Lode Extension, Grandfathers Extension and 7-10 Extension. This evaluation will be undertaken by Alba's technical team, headed by Senior Geologist and COO Mark Austin, with specialist input from Alba's preferred mining, geotechnical and confined space engineering contractors”.
The company says that it “is confident that the application process for the Discharge and Transfer Permits will be concluded shortly and the permits issued” allowing it to “divert the drainage water from the current Llechfraith drainage adit and to dewater the lower workings in the Llechfraith Shaft, in order to undertake underground drilling and bulk sampling directly from that zone”.
Conclusion: Alba Mineral Resources has intersected its target mineralised zone in each of the 10 surface recent holes and in two of the three underground holes - we await assay information and further news of the next phase of exploration.
Arc Minerals* (LON:ARCM) – 3.88p, Mkt cap £43m – Drilling starts on the Fwiji licenses in Zambia
(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 start of drilling on the Fwiji license area in the north-west of Zambia.
Drilling is focussed on a linear feature 2km to the south of last year’s drilling where a coincident magnetic and soil anomaly has been identified.
Further drilling at Cheyeza and Muswema will focus on targets determined on the results of a high resolution airborne geophysical survey over the target areas.
Arc management continue to discuss potential commercial deals with a number of interested third parties in relation to the Zambian licenses.
The team are due to present the results of the Cheyeza Scoping study for the production of 10,000tpa of copper following test work to optimise the process route for the Cheyeza Ore.
*SP Angel acts as Nomad and broker
Caerus Mineral Resources (LON:CMRS) 24.5p, Mkt Cap £12.4m – Drilling underway at Troulli
Caerus Minerals reports the start of a Phase 2 drilling programme at the recently acquired Troulli prospect in Cyprus where it will be aiming to expand drill coverage of an epithermal gold target and target underlying volcanogenic massive sulphide (VMS) mineralisation.
The programme is “part of a two-step resource development programme;
Firstly, focusing on building resource tonnes of copper and gold ounces from hard rock targets within the Troulli licence.
Secondly, upgrading the mineralogical, metallurgical, grade and tonnage information for dumps, stockpiles, and tailings on the site.”
The company says that will extend existing holes “to broadly delineate the underlying VMS copper-gold sulphide mineralisation intersected during Phase I drilling … Drilling will specifically target residual sulphide mineralisation in the former open pit, the extension of the open pit orebody and the newly discovered orebody located beneath the recently drilled epithermal gold zone”.
There will also be a surface sampling programme to help define “the mineralogy, metallurgy, grade and tonnage of the existing ore stockpiles, dumps, and tailings within the Licence boundary”.
CEO, Martyn Churchouse, said that “The commencement of the Phase II drill programme is a significant step in the development of the Troulli Project. It marks the point at which we begin to build a Mineral Resource and provisionally plan for the development and processing of both the metal-bearing surface materials and the high-grade hard rock copper and gold mineralisation beneath”
Controlled Thermal Resources (Private) - GM secures California-based Lithium supply
Through a commercial collaboration with Controlled Thermal Resources (CTR), GM have gained access to sustainably produced lithium in Imperial, California.
GM is the first company to invest in CTR’s development and has the option for a multi-year relationship.
CTR expect to start production of 20,000tpa of lithium carbonate in 2024, though we cannot see how this will turn into lithium hydroxide preferred by battery manufacturers.
Europa Metals Limited (LON:EUZ) 9.25p, Mkt Cap £4.5m – Initial work submitted under Spanish Government Grant to progress the Toral zinc, lead, silver project in Spain
Europa Metals reports that it has now completed the required work and associated interpretative work and submitted documents to Spain’s Centre for the Development of Industrial Technology (CDTI) in respect of the first milestone of the €466,801.50 innovation grant awarded in October 2020.
The initial tranche of €163,380 assisted in recording and analysing data from the company’s Pre-Feasibility Study drilling campaign at its wholly owned Toral Project. The company’s partner in the grant award, the University of Salamanca, has now “compiled a sufficient data set from over 2,800m of diamond drilling at Toral, to create an initial, correctional algorithm to be further researched to move towards potential commerciality”.
Europa Metals explains that “the CDTI, it will now undertake its formal review process, following which the Company intends to draw down Stage 2 funds of €158,628.60”.
CEO, Laurence Read, described the University’s work on the project as “outstanding” and said that “we continue to support the University of Salamanca's investigation into new, commercial, deviational correction algorithms for potential application to diamond drilling campaigns”.
Under the terms of the grant, Europa Minerals can draw on the funds in “up to three tranches subject to certain, pre-defined, operational milestones being met. The core objectives of the Innovation Programme are to retrieve and process data from the Toral drilling campaign in order to develop algorithmic software for use in exploration campaigns to correct drilling deviation. Biannual repayments of €21,822 begin in 2024, running for 7 years until 2031, with a fixed interest rate being set by the prevailing Euribor rate at inception of nil per cent”.
Shanta Gold (LON:SHG) 12.3p, Mkt Cap £128m – FY21 guidance revised down on lower grades; new 5 year plan eyes ~110koz in 2023 as Singida comes online
Q2/21 production totalled 14.2koz (Q1/21: 14.6koz) with higher processing rates slightly compensating for a decline in ROM grades.
The team completed the ramp up of a third mill at New Luika resulting in a throughput rate reaching 2,450tpd by the end of the quarter.
Tailings pipeline has been upgraded to match higher processing rates while the share of low cost grid power contribution more than doubled on the previous quarter (29% v 11% in Q1/21).
The Company highlighted negative grade reconciliation in the NLGM underground operation with grade control drilling suggesting 2021 mining schedule to lose ~16koz.
FY21 production and cash costs guidance has been revised to 60-65koz and US$1,325/1,375/oz (80koz at $1,050-1,100/oz, previously).
Q2/21 sales amounted to 16.8koz at $1,812/oz (Q1/21: 15.1koz at $1,801/oz) with the Company benefiting from its unhedged status as of the year.
AISC averaged 1,351/oz (Q1/21: $1,307/z) reflecting lower production.
The Company continued to offset outstanding VAT receivables against corporate tax liability with US$4.2m used during the quarter reducing the outstanding amount to $27.4m.
Convertible loan notes and Exim bank loan facility were repaid in full with gross debt reduced to $0.8m (Q1/21: $11.1m) and net cash balance standing at $24.1m (Q1/21: $31.0m).
At Singida, the team is getting ready for the start of development works with tenders of key infrastructure ongoing, manufacture of the ball mill underway and detailed design work on the TSF nearing completion.
Pre-stripping is expected to start later this month.
The Company also released a 5 year production plan as well as update Reserves/Resources for its portfolio of assets.
NLGM LOM extended to 2026 with average production ranging at ~75-80kozpa and AISC at ~$950-1,050/oz.
Throughput rates are expected to reach nearly 900ktpa, up on 700kpta in previous years, compensating for a decline in processed grades.
Singida is expected see first gold pour in 2022 with $26m development capex funded using internally generated casj flows and yielding ~32kozp over an initial seven year mine life.
Singida represent the near term source of growth taking average annual production past +100koz mark in 2023.
Average annual production from Tanzanian assets is estimated at 116koz in the 2023-25 period at $900-1,000/oz AISCs.
Group-wide reserves amount to 666koz at 2.99g/t as at Jun/21 including:
NLGM reserves of 423koz at 2.99g/t, up from 382koz at 2.98/gt as at Dec/20;
Singida reserves of 243koz at 3.00g/t (unchanged).
Group wide resources stand at 3,215koz at 3.65g/t including:
NLGM (Tanzania) resources of 1,129koz at 2.73g/t;
Singida (Tanzania) resources of 904koz at 2.38g/t;
West Kenya Project (Kenya) resources of 1,182koz at 12.6g/t.
Strategic Minerals* (LON:SML) 0.43p, Mkt Cap £8.1m – Cobre quarterly magnetite sales
During the course of the day on Friday Strategic Minerals reported its’ magnetite sales from Cobre for the 3 months ending 30th June 2021.
Sales of 12,130t during the quarter realised US$US$0.74m and brought year t0 date sales to 25,132t generating US$US$1.51m.or approximately US$60/t.
The company reports a 30th June 2021 cash balance of US$0.73m,
Strategic Minerals also reports that it is “in contact with the Receiver appointed by the US Securities Exchange Commission in relation to the previously notified US$21.9m arbitration claim against CV Investments” through its local subsidiary, Southern Minerals Group (SMG).
“The Receiver has, to date, identified over US$8m in liquid assets relating to its receivership of CVI, although there can be no certainty of what proportion of this could be attributable to SMG if any at this time”.
Managing Director, John Peters, explained that “Cobre sales remain strong with its cash flows providing a valuable revenue stream for the Company”.
He went on to confirm that the, following the recent conditional approval for its Programme for Environmental Protection and Rehabilitation (PEPR) for the Paltridge North deposit at its Leigh Creek copper project in South Australia, the Company “continues seeking debt style funding for the LCCM project and believes its economic attractiveness will result in securing such funding”.
Conclusion: Robust sales continue at Cobre with around 25,000t sold to date in 2021 at an average price of approximately US£60/t. The company recently received conditional approval of the PEPR for Paltridge North site and is continuing to seek debt funding for the project..
*SP Angel acts as Nomad and Broker to Strategic Minerals
Vulcan Energy (LON:VUL) A$9.07, Mkt cap A$986m - signs lithium deal with LG
Australian lithium miner Vulcan has agreed a deal with LG Energy Solution (LGES) to supply them with battery grade lithium hydroxide.
LGES will buy 5,000mt of lithium hydroxide in the first year, with plans to increase this to 10,000mt for at least 5 years.
The deal will account for a quarter of Vulcan’s total output by 2026.
Recent Interviews:
IGTV: Stock picks in the small-cap mining space: https://youtu.be/TxtMf6B2t8Q
Evolution of Chinese construction and implications for commodity demand: https://youtu.be/jB2nURL8uPw
VOX Markets: 10/06/21: https://audioboom.com/posts/7884446-john-meyer-talks-about-cornish-metals-empire-metals-anglo-american-ncondezi-energy-mkango-r
BBC: Catalytic converters https://www.bbc.co.uk/sounds/play/p09jl6c9
*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.
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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
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 employees may have previously held, or currently hold, shares in the companies mentioned in this note.
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RRE
Steelhome
Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite
Asian Metal
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