SP Angel . Morning View . Thursday 19 08 21
Growth concerns and US Fed tapering pull base metals lower
MiFID II exempt information – see disclaimer below
Antofagasta (LON:ANTO) – Chilean drought cuts copper output target
Adriatic Metals* (LON:ADT1) – DFS completed at Vares indicating Post-tax NPV8 of $1.06bn
AfriTin* (AIM:ATM) – High tin prices drive unexpectedly high margins for AfriTin
BlueRock Diamonds (AIM:BRD) – BlueRock recovers third large diamond in 10 days
Condor Gold* (AIM:CNR) – La India final drilling results
Empire Metals* (AIM:EEE) – Drill programme commences at Central Menzies
Power Metal Resources* (AIM:POW) – Soil sampling indicates large scale nickel anomalies at Tati
Rambler Metals and Mining* (AIM:RMM) – £1.87m raised to maintain the Ming Mine development plan until conclusion of the debt financing
COVID-19 - increase in “breakthrough infections”, the number of cases among fully vaccinated, is casting doubt over the lasting efficacy of Covid-19 vaccines, FT reports.
Although, vaccines are continuing to significantly reduce severe disease cases, hospitalisations and deaths.
Copper prices pull back to 4-month low as dollar soars and supply pressures ease
London copper prices hit $9,008/t, marking its lowest price since April 14.
U.S. employment numbers are also set to move the copper price, with traders also believing a 50% Fibonacci correction could signal a move to $7,450’.
Las Bambas has been enabled to continue operations as residents lifted a roadblock on its Peruvian copper mine.
Teck Resources has also restarted operations following a wildfire evacuation order at its Canadian mine.
Dow Jones Industrials -1.08%b at 34,961
Nikkei 225 -1.10% at 27,281
HK Hang Seng -2.05% at 25,337
Shanghai Composite -0.57% at 3,465
Economics
China provides a lifeline to Huarong Asset Management following a protracted bailout process accepting the firm is too big to let go.
A number of state backed investors including Citic, China Insurance Investment and China Life Asset Management among others will make strategic investments of an undisclosed amount after Huarong reported a record US$15.9bn loss for 2020.
Bloomberg reports the recapitalisation may be to the tun of US$7.7bn.
The news led to a rally in the company’s bonds on international markets with its perpetual bonds climbing nearly 10 points to 95 cents on the dollar compared to as low as 49 cents in April.
The five-month process tested investors’ resilience and is speculated to reflect authorities’ goal to penalise excessive risk taking.
Although, the final decision suggests implicit government guarantees for large interconnected firms that may pose a risk to financial system unless bailed out remain in place.
The Company is reported to owe US$21bn in international debt and is one of the bigger issuers in China’s investment grade market, Bloomberg writes.
Majority of Fed officials want asset-buying taper this year, minutes show
The Federal Open Market Committee, which sets US interest rates, released its recent policy meeting minutes yesterday.
The minutes show that most of the committee members feel a reduction in fiscal stimulus beginning before the end of this year.
On the other hand, the committee was still divided, with ‘several’ officials calling for a delay to the tapering.
The news caused the S&P 500 to fall 1.1% as the prospect for investors to return asset allocations to bonds increased, with the 10-year note rising to 1.27%.
The CBOE Volatility index rose 27% to monthly highs, marking increasing concern among speculators over a continuation of the current bull-run in US equities.
The sentiment from the minutes caused a rise in the dollar, hitting a nine-month high.
Spot gold fell 0.5% to $1,779.52 with futures falling 0.3% to $1,779.50
The minutes also highlighted the importance of coming US labour reports, with maximum employment fundamental to any major shift in policy.
Inflation-protected Treasuries’ popularity show investor concern over rising prices
Treasury inflation-protected securities (Tips) have seen major inflows, with returns on the bonds of 3.9% in 2021.
Tip funds have seen consistent inflows for 38-straight weeks as US inflation has hit decade highs.
Despite reassurances from both US government and Fed officials of ‘transitory’ inflation, Tip inflows show market participants’ desire for protection against a potential further rise in prices.
Australia – Employment avoided a drop last month but slowed to virtually no growth during the month amid lockdown measures implemented by authorities.
“Falls in unemployment and the unemployment rate may be counter-intuitive, given they have coincided with falls in employment and hours… (but they) reflect the limited ability for people to actively look for work and be available for work during lockdowns,” the government agency commented on the data.
Employment Change: 2.2k v 29.1k in June and -43.1k est.
Employment Rate: 4.6% v 4.9% in June and 5.0% est.
Participation Rate: 66.0% v 66.2% in June and 66.0% est.
IMF cuts new government in Afghanistan off its reserve assets days before the nation was set to receive nearly $500m, Bloomberg reports.
Funds were planned to be directed to Afghanistan under a recently approved IMF plant to provide $650bn of liquidity to the troubled global economy.
“As is always the case, the IMF is guided by the views of the international community,” an IMF spokesperson said by email Wednesday.
“There is currently a lack of clarity within the international community regarding recognition of a government in Afghanistan, as a consequence of which the country cannot access SDRs or other IMF resources.”
Currencies
US$1.1682/eur vs 1.1768/eur yesterday. Yen 109.88/$ vs 109.19/$. SAr 15.037/$ vs 14.932/$. $1.371/gbp vs $1.380/gbp. 0.718/aud vs 0.728/aud. CNY 6.496/$ vs 6.484/$.
Commodity News
Precious metals:
Gold US$1,782/oz vs US$1,792/oz yesterday
Gold ETFs 100.3moz vs US$100.4moz yesterday
Platinum (AIM:ZERO) US$985/oz vs US$1,013/oz yesterday
Palladium US$2,421/oz vs US$2,534/oz yesterday
Silver US$23.31/oz vs US$23.80/oz yesterday
Base metals:
Copper US$ 8,959/t vs US$9,270/t yesterday
Aluminium US$ 2,549/t vs US$2,568/t yesterday
Nickel US$ 18,825/t vs US$19,050/t yesterday
Zinc US$ 2,974/t vs US$2,994/t yesterday
Lead US$ 2,297/t vs US$2,286/t yesterday
Tin US$ 35,385/t vs US$35,660/t yesterday
Energy:
Oil US$67.1/bbl vs US$69.6/bbl yesterday
Oil prices fell for a fifth session yesterday, as investors remain worried about the outlook for fuel demand as COVID-19 cases surge worldwide just as more supply reaches the market from large global producers, including the US
Oil benchmarks have been under pressure for the last few weeks due to the rise in infections caused by the Delta variant of the coronavirus worldwide
Several countries have re-introduced travel restrictions and air traffic has softened in recent weeks
Minutes of the US Federal reserve's July 27-28 policy meeting showed officials noted the spread of the Delta variant could temporarily delay the full reopening of the economy, and restrain the jobs market
US crude inventories fell 3.2MMbbls last week to 435.5MMbbls, their lowest since January 2020, according to US Energy Department figures
Gasoline stocks, however, rose modestly, and gasoline product supplied to the market, a measure of demand, was 9.5MMbopd, just 1% below 2019 levels
Fuel demand in the world's top consumer has steadily increased throughout the year with the four-week average of overall US product supplied was 20.8MMbopd, in line with pre-coronavirus levels from 2019
That has come just as the OPEC+ agreed to raise output by 400,000bopd every month into next year, returning some of the supply the group has held back since early 2020
The IEA estimates that demand for oil is expected to increase at a slower rate over the rest of 2021 because of surging cases of the Delta variant
Also bearish for the markets in the longer term, a US offshore regulator yesterday said efforts to resume a federal oil and gas leasing program were underway and would soon bear results following a court decision ending a suspension
Natural Gas US$3.797/mmbtu vs US$3.836/mmbtu yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$148.5/t vs US$157.5/t - Sweden’s HYBRIT delivers first ever fossil-free steel
HYBRIT announced yesterday that it had made its first delivery of steel produced without coal.
The company currently has plans to deliver to Volvo AB for their truck manufacturing, with full commercial production of green steel planned in 2026.
The company aims to replace coal-fired furnaces with fossil-free electricity and hydrogen.
The EU has been pushing hydrogen as a driving force in its net-zero ambitions for 2050.
H2 Green Steel, an alternative green steel venture, aims to begin production at its north Sweden hydrogen-based facility in 2024.
Beowulf Mining’s Kallak iron ore deposit is ideally located in close proximity to green steel initiatives such as HYBRIT, reducing the carbon footprint from shipping ores across the globe.
High grade ores of 71% Fe that Kallak boasts are particularly attractive to green steel initiatives as electric furnaces require fewer impurities than their coal-powered predecessors.
*SP Angel are Nomad and Broker to Beowulf Mining
Chinese steel rebar 25mm US$799.5/t vs US$812.3/t
Thermal coal (1st year forward cif ARA) US$108.3/t vs US$107.3/t - Thermal coal prices up 106% as Chinese demand puts pressure on energy supplies
Australian thermal coal, China’s primary source of the emission-intensive commodity, has risen to more than $166/t.
Thermal coal prices have been driven by a combination of electricity demand for air conditioning in the summer months, alongside infrastructure woes and rising gas prices.
Coal is the most carbon-intensive fossil fuel in emissions and has thus been targeted by policymakers amid the ‘green transition’.
Analysts estimate that the commodity currently occupies 35% of global power generation.
Demand is expected to continue to rise in emerging markets such as India, Pakistan, and Vietnam where environmental restrictions are limited.
The US and EU are expected to reduce their current 10% share of coal demand in the coming years.
Peabody Energy, US’s largest coal mining company, enjoyed a 20% jump in sales in 2Q21.
Biden wants to cut emissions in half from 2005 levels by 2030, with both oil and coal the primary targets for reduction.
Coking coal swap Australia FOB US$201.0/t vs US$199.0/t
China Ilmenite Concentrate TiO2 US$360.97/t vs US$361.8/t
Other:
Cobalt LME 3m US$51,500/t vs US$52,300/t
NdPr Rare Earth Oxide (China) US$94,054/t vs US$94,654/t
Lithium carbonate 99% (China) US$15,393/t vs US$15,429/t
China Spodumene Li2O 5%min CIF US$880/t vs US$880/t
Ferro-Manganese European Mn78% min US$1,735/t vs US$1,741/t
China Tungsten APT 88.5% FOB US$305/t vs US$305/t
China Graphite Flake -194 FOB US$520/t vs US$515/t
Europe Vanadium Pentoxide 98% 9.6/lb vs US$9.6/lb
Europe Ferro-Vanadium 80% 40.25/kg vs US$40.25/kg
Spot CO2 Emissions EUA Price US$66.6/t vs US$67.6/t
Battery News
UK government to invest £26.2m in BMW long-range battery development
Four projects have been awarded £91.7m of government and industry funding, through the Advanced Propulsion Centre (APC) Collaborative Research and Development competition, which supports the development of innovative low carbon automotive technology.
BMW UK, were awarded £26.2 million for the development of an electric battery that will rival the driving range of internal combustion engines, helping put concerns over how far electric vehicles can travel to rest – it is unclear exactly what sort of technology BMW is working on to achieve this.
The other projects that received funding are:
- The Celeritas Project – £9.7 million to create ultra-fast charging batteries for electric and fuel cell hybrid vehicles that can charge in as little as 12 minutes.
- The Brunel Project – £14.6 million to develop a novel zero emission, hydrogen-fuelled engine to help decarbonise heavy goods vehicles.
- REEcorner – £41.2 million to radically redesign light and medium-sized commercial electric vehicles by moving the steering, breaking, suspension and powertrain into the wheel arch enabling increased autonomous capability, storage space and design flexibility.
Honda plans expansion of Chinese factory
Honda will invest 3bn yuan in a JV to expand its factory in Guangzhou to increase production capacity for EVs.
The additional annual production capacity provided by the factory expansion will raise Honda’s capacity in China by 120,000 vehicles to 1.61 million.
Vehicle sales in China for Honda equalled 890,000 vehicles for the first half of 2021.
Company News
Antofagasta (LON:ANTO) 1,412p, Mkt Cap £13.9bn – Chilean drought cuts copper output target
Antofagasta has warned it will produce less copper than expected this year as Chile’s ongoing drought hampers its operations.
The miner expects to produce 710,000t to 740,000t of copper this year, down from its previous forecast of 730,000t to 760,000t.
Despite the drought, Antofagasta posted a record first-half profit of $2.36bn amid record copper prices.
Adriatic Metals* (LON:ADT1) 145p, Mkt cap £3097m – DFS completed at Vares indicating Post-tax NPV8 of $1.06bn
Adriatic has released details of its Definitive Feasibility Study for the Vares Silver Project in Bosnia & Herzegovina.
The study indicates a post-tax NPV8 of $1,062m & post-tax IRR of 134%.
The study estimates a project payback of 0.7 years and initial capital costs of $168m.
Adriatic expect 7.3mt mined to plant over a 10-year mine life.
TCC of $7.0AgEq per oz.
AISC of $7.3 AgEq per oz.
Average annual EBITDA in years 1-5 of $281m.
Underground mining costs (mined) of $24.1/t
Underground mining costs (milled) of $30.0/t
Processing costs of $30.3/t.
Refining and freight costs of $35.7/t
~48% of revenues are set to come from payable silver and gold, with other metals including zinc, lead, copper and antimony.
The Vares Silver Project hosts two Mineral Resources; the Rupice underground deposit and the Veovaca open pit deposit, located approximately 11km apart.
The 2021 DFS has only considered the Mineral Resources and Reserves of Rupice and the mine plan does not include mining of Veovaca at this time.
The Ore Reserve tonnage of Rupice has decreased from 8.4 Mt to 7.3 Mt, while the Ore Reserve grade increased from 463g/t AgEq to 485g/t AgEq.
The Vares Processing Plant has been designed around the ore from the Rupice Underground Mine.
AfriTin* (AIM:ATM) 5.06p, Mkt cap £56m – High tin prices drive unexpectedly high margins for AfriTin
AfriTin are enjoying an unexpected lift in margins on shipments of tin out of Namibia.
The Uis mine in Namibia is also looking to double monthly tin concentrate output from the mine to around 120t per month.
The expansion combined with high tin prices should see the company report profits for this year and could also pay down £3.8m of current borrowings.
Tin prices hit US$ 36, 594/t yesterday on strong demand and low official inventory levels
Tin prices have risen by >70% since the start of the year with little sign of a retracement.
Premiums for physical ‘cash’ delivery have risen on the LME bringing in some 6,000t into the market but this is still below outflow levels due to rising demand.
European buyers are paying premiums of ~$1,500-2000/t for physical tin, the highest since records began in 2009.
Shanghai stocks are at their lowest since 2016, currently at 1,542/t from 8,853/t in March.
Shanghai tin prices hit a record high of CNY244,900y/t this week.
Yunnan Tin, one of China’s largest producers, has shut a smelter for 45 days disrupting an already tight supply chain with other tin smelters slowed by local power restrictions in China.
Malaysia has raised production by just 2% this year with Indonesia also struggling to react.
Myanmar which supplies tin smelters in China may be seeing reduced production due to political issues within the region.
Demand for tin has risen to rising demand for electric vehicles, electrical goods and circuit boards.
A joint study between Rio Tinto and MIT in March 2018 showed that tin is the metal most likely to be impacted positively from new technology.
Tin scored very highly using the MIT framework because of the potential for increased demand applications, particularly in the electrical and energy storage areas.
These demand changes might be large in comparison to the current market size.
Conclusion: We expect AfriTin to report significantly higher profits in H2 supported by high prevailing tin prices and rising production.
BlueRock Diamonds (AIM:BRD) 48.44p, Mkt cap £6.8m – BlueRock recovers third large diamond in 10 days
BlueRock report the recovery of a 14l3ct high quality diamond at the Kareevlei diamond mine in South Africa.
The diamond is reported by the Chairman to be of high quality and high value.
We guess the value might be around $5,000-10,000/ct.
The recovery of three large stones in around 10 days is great news for BlueRock and is well timed given the recent rise in rough diamond prices due to strong demand in the US.
Q3 sales will be significantly ahead of Q2 at $2.2m and Q1 at $0.7m assuming Q3 production is in line with Q2 and prices for the ordinary stones are approximately stable.
We now expect Q3 diamond sales to be somewhere in the region of $2.5-3m including our guestimates for the large stones.
The team expect to commission the new process plant in October following the delivery of a new primary screen due end-September.
Production: Management expect to produce some 24,000-28,000cts this year grading rising to 40,000-43,000cts in 2022.
Grades are expected to be in the range 4.0-4.5cpht this year and 4.0-4.3cpht for 2022.
Values: will rise due to the recovery of an increasing number of larger stones with previous guidance at $400-440/ct for 2021 and $400/ct for 2022.
Rapaport: the diamond market specialists report US demand far exceeds supply with their diamond index prices continuing to move higher for the 0.5ct, 1ct and 3ct stones.
Rapaport report: dealers and manufacturers do not have “enough goods in their safe,”. There are a lot of “missing pockets in everyone’s inventory,” and they will keep buying to fill those gaps, which include bread-and-butter items. According to one NY manufacturer and trader.
“The president of Atlantic Diamond Company in Chicago, Illinois, reported a “gangbuster” June in which the wholesale business doubled its previous record high for that month.
He expects the pace to continue. “Rough prices are up, supply is down and demand is awesome,” he said, noting that Covid-19 variants might be preventing some people from spending on travel and recreation.We now expect sales to rise beyond $11.0m this year due to the recovery larger stones. BlueRock expect sales of around $16m in 2022.”
Conclusion: BlueRock is fortunate in that it has hit a rich phase within the kimberlite pipe at Kareevlei. We look forward to further high-value stones from this part of the mine.
*SP Angel act as nomad and broker to BlueRock Diamonds
Condor Gold* (AIM:CNR) 44p, Mkt Cap £59m – La India final drilling results
The Company released all assays from its ~3,400m drilling programme at the La India starter pit in Nicaragua.
The programme focused on infill and RC-replacement of historical holes drilling increasing confidence in the resource.
Selected results included:
- 6.6 m true width at 10.51 g/t gold (LIDC464);
- 22.05 m (21.6 m true width) at 6.48 g/t gold from 24.75 m drill depth including 15.35 m (15.0 m true width) at 8.68 g/t gold from 24.75 m drilled depth (drill hole LIDC413);
- 60.60 m (54.5 m true width) at 1.98 g/t gold from 4.15 m drill depth, including 5.75 m (5.2 m true width) at 16.88 g/t gold from 42.55 m drill depth in drill hole LIDC452 located between the two proposed starter pits;
- 16.00 m (15.7 m true width) at 5.30 g/t gold from 18.35 m drill depth, including 5.90 m (5.8 m true width) at 12.35 g/t gold from 22.10 m drilled depth (drill hole LIDC416);
Results are expected to improve economics of the project driven by the mineralisation discovered between two starter pits as well as the discovery of an additional vein in the footwall.
*SP Angel act as a broker to Condor Gold
Empire Metals* (AIM:EEE) 2p, Mkt cap £6.9m – Drill programme commences at Central Menzies
Empire reports the commencement of a RC drilling campaign at its Central Menzies Gold Project in West Australia.
An RC drilling programme of over 2,100m has been designed for Central Menzies and is expected to be completed in September, following the successful completion of a soil sampling programme at the Project.
A review of the historical drillhole database identified two mineralised corridors which identified two mineralised corridors with elevated gold concentrations, known as the Teglio and Nugget Patch prospects.
The historical data provided Empire with guidance on locations of shallow ironstone cover across the licence area and provided focus for the soil geochemical sampling programme just completed.
The areas selected for soil sampling represented areas of the greatest prospectivity based on the location of historical workings as well as areas of limited previous drilling.
Two of these mineralised corridors have been identified for immediate RC drilling (Teglio and Nugget Patch) based on elevated gold concentration within the licence and the potential to generate significant strike and lateral extension from old workings.
Several mineralised corridors have been interpreted from the existing drill dataset based on elevated gold concentrations within the license with the potential to generate significant strike and lateral extensions.
Empire plan to drill 13 RC holes for 1,100m at Teglio, testing a strike length of 520m, along with 13 holes have been designed for 1,040m at Nugget Patch.
Historically, 777m of RC drilling has been completed at the property by the current owner, Mel Dalla-Costa, with several high-grade intercepts previously reported near the Teglio workings:
- MCD02: 5m @ 19.59 g/t Au from 30m
- MCD04: 3m @ 5.15 g/t Au from 35m
- MCD10: 2m @ 5.51 g/t Au from 30m
- MCD11: 1m @ 14.18 g/t Au from 48m
Empire is well funded for exploration at its two West Australian gold assets given the recent sale of the company’s Georgian assets for $3.3m.
*SP Angel act as nomad and broker to Empire
Power Metal Resources* (AIM:POW) 2.13p, Mkt cap £25.5m – Soil sampling indicates large scale nickel anomalies at Tati
Power Metal reports that it has received results from the first soil samples analysed as part of its Phase I work programme on its gold-nickel properties in the Tati Greenstone Belt in Botswana.
A total of 1,107 soil samples and 49 rock samples were collected across five grid areas as part of Phase 1, with the results presented so far representing 727 soil samples from grids 2 to 5, which were analysed utilising portable field X-Ray Fluorescence equipment.
The soil samples from grid 1 and the 49 rock samples are currently undergoing fire assay analysis testing for gold in Perth, with results expected in the coming weeks.
XRF testing of soil samples across grids 2 to 5 confirm multiple large-scale nickel and arsenic anomalies, with arsenic being a pathfinder element for gold deposits in the Tati Greenstone belt.
Grid 5 geochemical results highlight a roughly 1500m long by 300m wide northeast-southwest trending nickel-in-soil anomaly, with the Tati Greenstone Belt home to significant nickel operations including the Tekwane, Selkirk and Phoenix mines, all located less than 5km from the newly defined anomaly.
Grids 3 and 4 indicate high-tenor arsenic-in-soil anomalies which is known as a strong pathfinder for gold in the Tati Greenstone belt.
Paul Johnson, Chief Executive Officer of Power Metal Resources PLC (AIM:POW, FRA:2M5) commented: “Results from the XRF analysis of the geochemical samples collected as part of the Phase I work programme have delivered multiple large scale anomalies with notably strong nickel and arsenic-in-soil anomalies. It is now confirmed that we have substantial nickel and gold exploration targets emerging and we are following the pathway needed to make major discoveries.”
“This follow up programme may include ground based geophysics, including possible magnetic surveys over the newly defined nickel targets, as well as Rotary Air Blast ("RAB") drilling over the gold targets (grids 1, 3 and 4). Additional details about the upcoming Phase II work programme will be announced within the coming weeks."
*SP Angel act as nomad and broker to Power Metal
Rambler Metals and Mining* (AIM:RMM) 20.1p, Mkt cap £24m – £1.87m raised to maintain the Ming Mine development plan until conclusion of the debt financing
(Rambler owns 100% of the Ming Copper-Gold Mine)
Rambler Metals and Mining announced yesterday that it has raised £1.87m via the placing of approximately 9.3m additional shares at a price of 20p/share in order to secure the company’s capital needs “until the conclusion of the debt financing with Newgen Resource Lending Inc. … which is scheduled to close at the end of August 2021”.
The company confirms that the proceeds “will be used to continue to fund mine development including contractor development required to set up the Lower Footwall Zone, which will support production through 2021 and 2022 … without the requirement to draw further on the existing convertible loan facility”.
We estimate that the new shares represent approximately 7.3% of the enlarged capital of the company and we note that directors participated in the placing with CEO, Toby Bradbury subscribing for 250,000 shares, CFO Eason Cong subscribing for 145,000 shares and non-executive directors, Richard Round and Priya Patil subscribing for 25,000 and 75,000 shares respectively.
The subscription was also supported by “West Face Long Term Opportunities Limited Partnership … the Company's current senior lender, …[which]…has subscribed for 1,250,000 shares in the Placing and will hold a total of 9,381,810 shares, representing 7.38 per cent. of the Company's total issued share capital following completion of the Placing”.
The CEO explained the rationale for the bridging finance saying that “Delays to supplies for the operation as a downstream impact of Covid-19 and the ongoing competition for skilled resources make it prudent to supplement the Company's finances at this time”.
He also pointed to the “support in this equity placing from West Face, our current senior lender and a significant shareholder, is indicative of the value that our stakeholders see in Rambler. The fundamentals of the resource base at the Ming Mine continue to improve with on-going exploration drilling and the mine operation is being progressively de-risked”.
We observe that the drilling and development results released earlier this month, include the identification of a, new zone of massive sulphide mineralisation, thought to be an extension of the gold-rich Ming North Lower Zone, as well as development results from the Upper Footwall Zone which show mineralisation being encountered “before the current modelling predicted it would” while mining in the Lower Footwall Zone on the 735/760m levels of the mine has shown that “the inferred model is accurate in terms of location and actual mining is occurring at higher grade” suggest the potential for meaningful resource expansion in the resources update expected later this year.
We also point to the H1 results released in late July which showed progress, including higher underground development rates, towards establishing the higher production rates planned in the company’s announcement of 30th June which envisage production tates of 800tpd from “6-7 active stoping fronts” by the end of 2021 with further increases to 1300tpd next year and 2,000 tpd by end of Q4 2022.
In a separate announcement, the company reports that it has issued 664,750 share at a price of 21.7345p/share on conversion of unsecured, subordinated convertible notes held by Riverfort Global Opportunities and by YA II PN, Ltd. Rambler Metals & Mining confirms that “the fixed conversion price will be amended to the most recent equity placing price if the Company completes any equity placing before the maturity date of the convertible loan. Hence, the fixed conversion price of the convertible loan facility will be amended to 20 pence”.
Conclusion: The additional £1.87m funding, which gained the support of the company’s senior lender and directors, aids the smooth development build-up at the Ming Mine and ensures financial resilience until completion of the debt financing expected by the end of August.
*SP Angel act as Nomad and broker to Rambler Metals & Mining
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
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
SP Angel
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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.
Sources of commodity prices
Gold, Platinum, Palladium, Silver - BGNL (Bloomberg Generic Composite rate, London)
Gold ETFs, Steel - Bloomberg
Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt - LME
Oil Brent - ICE
Natural Gas, Uranium, Iron Ore - NYMEX
Thermal Coal -Bloomberg OTC Composite
Coking Coal - SSY
RRE - Steelhome
Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite - Asian Metal
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SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return of less than 15%