SP Angel . Morning View . Monday 29 11 21
Base and battery metals rise as markets recover following Omicron variant scare
Ariana Resources (Ariana Resources PLC (AIM:AAU)) – Exploration in Kazakhstan
Beowulf Mining* (Beowulf Mining PLC (AIM:BEM)) – Q3 report highlights progress on three fronts
Bluejay Mining* (BlueJay Mining PLC (AIM:JAY, OTCQB:BLLYF)) – Bluejay appoints a European investment bank as lead arranger for Dundas project
Caledonia Mining* (Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL)) – Strong support for the Victoria Falls Stock Exchange listing
Hummingbird Resources (Hummingbird Resources PLC (LSE:HUM)) – Yanfolila temporarily suspended amid a security incident
Impala Platinum (LON:IMP) / Royal Bafokeng Platinum (JSE:RBP) – Implats improves offer for Royal Bafokeng, valuing miner at $2.7bn
Rockfire Resources (Rockfire Resources PLC (LSE:ROCK)) – Results from the first drillhole at the Copperhead project
Shanta Gold (Shanta Gold Limited (AIM:SHG, OTC:SAAGF)) – Infill drilling results at the West Kenya Gold Project in Kenya
Vulcan Energy Resources (ASX:VUL) (Vulcan Energy Resources (ASX:VUL)) – Vulcan inks deal with Stellantis for CO2-free German lithium
IGTV: Rolls-Royce electric aero engine boosts battery metals: https://youtu.be/LpQPztCiQqA
VOX Markets: 20/11/21: https://audioboom.com/posts/7983106-john-meyer-discusses-inflation-covid-china-slowing-plus-afritin-cornish-metals-ironridge-ra
*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.
Equity markets more often lose their lustre over Thanksgiving as hedge funds and other investors take risk off the table ahead of the Christmas break
Politicians have been looking for an excuse to impose restrictions ahead of Christmas so they can be seen to be saving healthcare systems..
The South African variant is just one of many other variants and while it is more complex in its structure and may spread faster but it may also carry lower mortality rates.
Any deep market correction presents a buying opportunity, in our view, as we work out way out of the pandemic.
The WHO skips two Greek letters in naming a new B.1.1.529 variant calling it Omicron rather than Nu or Xi, the Wall Street Journal reports.
The organisation argued Nu was easily confused with “new”, while Xi is a common surname.
President Xi Jinping may have been less than impressed to share his name with a new variant virus
The virus is the most mutated variant detected raising concern that it may result in greater transmissibility.
Multiple reports from South Africa suggest the new variant may carry a lower mortality rate but the average age in South Africa is just 27.6 years vs 38.1 in the US so it is difficult to assess the new variant’s mortality in older populations as yet.
Nissan looks to consolidate EV presence with $18bn investment
Nissan has announced a $17.7bn vehicle electrification plan to make headway in the battle for dominance in the EV market.
The plan also includes the $1.4bn investment in the UK to convert the company’s Sunderland operation into an EV production hub.
Nissan will also look to rely on the success of all-solid-state battery technology.
The automaker has plans to build a pilot factory for solid state battery vehicles withing the next three years and offer the technology in mass-market EVs by 2029.
Management are targeting 75% of European sales to be EVs by 2026 and 40% of US vehicles by 2030.
Nissan plans to release 23 ‘electrified’ vehicles by 2030 with 15 fully electric and eight expected hybrid vehicles.
Management hope to reduce their lithium-ion battery reliance by 65% by 2030.
Dow Jones Industrials -2.53% at 34,899
Nikkei 225 -1.63% at 28,284
HK Hang Seng -0.92% at 23,860
Shanghai Composite -0.04% at 3,563
Economics
US – Equity futures rebounded along with US Treasury yields as investors reconsidered worst-case scenarios for the omicron coronavirus strain, Bloomberg writes.
China – Industrial profits rebounded for a second month in October driven by gains in mining and manufacturing of raw materials.
In particular, coal production companies reported a growth I profits to the tune of ~440%yoy, up ~70pp on the rate reported in the previous month.
Consumer goods manufacturing increased just 3.6% yoy though this is still a recovery on the declines seen in the recent months.
Industrial Profits (%yoy): 24.6 v 16.3 in Sep.
China State Council has called on local governments to sell more special bonds this year to boost investment
Regulators have told banks to issue more loans to property companies
Premier Li commented that China is facing new downward economic pressures as Q4 growth is expected to fall to 3.1%.
Supply chains may lengthen as China imposes 7-week quarantine for cargo crews
China is imposing mandatory quarantines on cargo crews of up to 49 days. (Bloomberg)
The quarantine will be paid for by the employers and will dissuade all but the most determined of crews to leave their ships
China has also banned crew changes for foreign seafaring crews in China.
The secretary-general of the International Chamber of Shipping sees the new regulations as having an accumulative impact on the supply chain and cause real disruptions.
It’s a tough for crews to remain aboard their ships but it is entirely understandable for China to tighten its regulations in accordance with its zero-covid policy.
The new policy may encourage crews to unload and leave Chinese ports all the faster.
Japan – Government will close borders to new foreign arrivals from Tuesday and have its own citizens isolate on arrival in a state-designated facility when coming from countries where omicron has been found.
“These are unusual emergency measures that will be in place until we have a certain amount of information about omicron,” PM Kishida said.
Spain – Inflation climbed to the highest in nearly three decades in November on rising food and energy prices.
Inflation numbers from other Eurozone nations are due later in the week.
Germany to release its inflation later today while France, Italy and the euro area data is coming the following day.
CPI (%mom): 0.4 v 1.8 in October and 0.3 est.
CPI (%yoy):5.6 v 5.4 in October and 5.5 est.
South Australia commits further funding to mineral exploration incentive
South Australia has committed another $11.5mn to the Accelerated Discovery Initiative.
The ADI aims to boost investment into mineral exploration projects in the state for new resource discoveries.
36 initiatives have received funding in rounds 1 and 2.
Currencies
US$1.1268/eur vs 1.1241/eur last week. Yen 113.41/$ vs 114.08/$. SAr 16.143/$ vs 16.282/$. $1.333/gbp vs $1.329/gbp. 0.714/aud vs 0.712/aud. CNY 6.383/$ vs 6.392/$.
Commodity News
Precious metals:
Gold US$1,794/oz vs US$1,807/oz last week
Gold ETFs 98.4moz vs US$98.4moz last week
Platinum US$970/oz vs US$986/oz last week
Palladium US$1,791/oz vs US$1,866/oz last week
Silver US$23.35/oz vs US$23.69/oz last week
Rhodium US$13,700/oz vs US$13,700/oz last week
Base metals:
Copper US$ 9,570/t vs US$9,566/t last week
Aluminium US$ 2,636/t vs US$2,666/t last week
Nickel US$ 20,165/t vs US$20,030/t last week
Zinc US$ 3,194/t vs US$3,217/t last week
Lead US$ 2,329/t vs US$2,250/t last week
Tin US$ 38,920/t vs US$39,300/t last week
Energy:
Oil US$76.1/bbl vs US$78.8/bbl last week
Oil prices ticked up in early trading today following Friday’s sell off on speculation that OPEC+ may pause an output increase in response to the spread of Omicron, but the mood remained cautious with little known about the new variant
Prices jumped over 4%, recovering some ground after plunging more than 10% in the previous trading session
On Friday, oil prices posted their biggest one-day drop since April 2020 as the new variant impacted risk sentiment across financial markets
It's not yet clear if this B.1.1529 Covid variant is more infectious or deadly — or if existing vaccines will be less effective, but health officials have raised concerns
The UK is suspending flights from South Africa and five neighbouring countries
At least two cases of the new Covid strain have been found in travellers to Hong Kong
Despite this, the US still intends to release oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to stem price increases (and therefore inflationary concerns) after OPEC+ producers repeatedly ignored calls for more crude
Yet it appears that OPEC+ is struggling to produce much more than current levels
Production by OPEC+ was 700,000bopd less than planned in both September and October, according to the International Energy Agency (IEA), raising the prospect of a tight market and high oil prices for longer
In the past, smaller OPEC producers in Africa and even some larger ones in the Gulf could be expected to exceed quotas set by OPEC when they needed the extra cash, usually when oil prices were low
But plunging investment in production caused by the pandemic and environmental pressure on oil majors, particularly in poorer OPEC states, means just three OPEC members - Saudi Arabia, the United Arab Emirates and Iraq - have the extra capacity in place to hike supplies relatively quickly
The discussions have come after the US government was unable to persuade OPEC+ to produce more oil with major producers arguing the world was not short of crude
The group agreed this month to stick to plans to raise oil output by 400,000bopd from December
Oil prices rose after Bloomberg News reported that OPEC+ may alter plans to keep boosting production, citing delegates. Reuters has not verified the report.
Consensus forecasts suggest that the US could release anywhere from 45-60MMbbls from its reserves that would bring forward about 20MMbbls in already approved sales
Worries about demand have been fed by the prospect of national lockdowns in Europe, which has pressured prices
Austria entered its fourth national lockdown on Monday as Europe again becomes the epicentre of the coronavirus pandemic
Natural Gas US$5.081/mmbtu vs US$5.186/mmbtu last week
European natural gas futures have risen again as the US imposed its latest sanctions against Russia’s Nord Stream 2 pipeline
Benchmark European gas futures rose as much as 10.6% to €92.90/mwh and the UK equivalent increased as much as 10.5% to 233.35p/therm
While any action against the Russian gas link can stoke supply concerns, the sanctions may have come too late as construction of the pipeline was finished in September, the first of two lines are already filled with gas and the US has levied penalties aimed at the project before, which has progressed regardless
Elsewhere, Gazprom will halt all natural gas flows to Moldova over non-payment for its gas consumption
The news follows Germany's energy regulator, which suspended the approval process for the Nord Stream 2 pipeline last week
Vladimir Putin continues to exert pressure on Europe with declining gas flows amid the onset of the Northern Hemisphere winter
Uranium UXC US$47.40/lb vs $48.05/lb last week
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$97.3/t vs US$103.9/t - Tata Steel looks to boost iron ore production to 45mtpa in 5 years
Tata to boost iron ore production from 30mtpa to 45mtpa.
The decision comes as the company expands its steelmaking capacity in India.
Chinese steel rebar 25mm US$748.1/t vs US$750.8/t
Thermal coal (1st year forward cif ARA) US$121.0/t vs US$133.5/t - China coal prices tumble on prospect of Beijing regulation
China thermal coal prices down 5.6% this morning to $128.31 from $310/t in mid-October.
Coal miners have been summoned by the NDRC to discuss improving the prices mechanism. (Reuters)
The NDRC is looking to set a coal price target, with miners in Shanxi, Inner Mongolia and Shaanxi capping prices at 900CNY/t.
The NDRC announced last week that coal prices are set to hit an all-time high by early December
Thermal coal swap Australia FOB US$175.8/t vs US$180.0/t
Coking coal swap Australia FOB US$291.0/t vs US$287.0/t
Other:
Cobalt LME 3m US$63,155/t vs US$63,155/t
NdPr Rare Earth Oxide (China) US$133,947/t vs US$131,425/t
Lithium carbonate 99% (China) US$29,061/t vs US$29,023/t
China Spodumene Li2O 5%min CIF US$2,260/t vs US$2,260/t
Ferro-Manganese European Mn78% min US$1,887/t vs US$1,883/t
China Tungsten APT 88.5% FOB US$313/t vs US$313/t
China Graphite Flake -194 FOB US$665/t vs US$665/t
Europe Vanadium Pentoxide 98% 8.1/lb vs US$8.1/lb
Europe Ferro-Vanadium 80% 32.55/kg vs US$32.45/kg
China Ilmenite Concentrate TiO2 US$385/t vs US$384/t
Spot CO2 Emissions EUA Price US$83.9/t vs US$81.8/t
Battery News
Xiaomi’s new factory has capacity to produce 300,000 EVs a year
Chinese smartphone giant Xiaomi Corp have announced it will build a plant that can produce 300,000 EVs annually, in Beijing. (Reuters)
The EV plant will be constructed in two phases and Xiaomi will also build its auto unit's HQ, sales and research offices in the Beijing Economic and Technological Development Zone, Beijing E-Town, the government backed development agency, announced on its official WeChat account.
Beijing E-Town also said it anticipated the plant reaching mass production in 2024, supporting a goal announced by Xiaomi's Chief Executive in October.
In March, Xiaomi said it would commit to investing $10bn in a new electric car division over 10 years – the company completed the business registration of its EV unit in late August.
Company News
Ariana Resources (Ariana Resources PLC (AIM:AAU)) 4.15p, Mkt Cap £45m – Exploration in Kazakhstan
Ariana Resources reports that its wholly-owned Asgard Metals Fund is to invest £200,000 in Pallas Resources, described as “a UK company with several large copper and gold licences in highly prolific mineral belts of Kazakhstan”.
Ariana will also provide technical consulting services to Pallas Resources under a 2-year consulting agreement up to £75,000.
Managing Director, Kerim Sener, explained that Pallas has over 800km2 of prospective copper and gold licences in “several of Kazakhstan's highly prolific mineral belts”.
He described area as one of the few parts of the world “which retains the potential to make further greenfield discoveries of Tier 1 deposits. While gold remains a focus, we are also encouraged to see opportunities for copper, which is the commodity of the future”.
Commenting on the quality of the Pallas Resources’ team which shares “mutual characteristics” with Ariana Resources, he also confirmed that, via the Asgard Fund, “We are actively pursuing opportunities throughout the Eastern Hemisphere, as we develop future growth opportunities for the Company across new horizons”.
Daniel Rickleman, a director of Pallas Resources, said that the “natural synergies between Ariana and Pallas come at an opportune time as we look to significantly scale up our portfolio in Kazakhstan and advance our exciting projects. We look forward to working with Ariana's exceptionally strong technical team”.
Beowulf Mining* (Beowulf Mining PLC (AIM:BEM)) 5.2p, Mkt cap £42.8m – Q3 report highlights progress on three fronts
Beowulf provides a summary of its activities and unaudited results for the three months to 30th September 2021, with the company making progress in Sweden, Finland and Kosovo.
Beowulf reports a loss of £516k in Q3 21 vs £271k in Q3 20.
Administrative expenses rose to £467k vs £253k in Q3 20.
Cash held at the end of the period was £3.88m vs £1.2m last year.
Sweden: Beowulf has continued to develop its understanding of the Kallak deposit, through the results of a mining study undertaken by Carci Mining Consultants who developed an open pit design and mining schedule based on the upgraded Mineral Resource Estimate.
The results of this study were received post period and showed that the Kallak mine could produce approximately 2.7mtpa of concentrate based on the existing resource for Kallak North only and modelled over an initial 15 years.
CEO Kurt Budge continued to press the Swedish government and minister Baylan for a decision regarding the Kallak project, submitting concluding comments to Sweden's Ministry of Enterprise and Innovation on UNESCO's letter on 31st August 2021.
The company’s comments reiterated that there are no direct effects of Kallak on Laponia, and that the potential indirect effects are limited and will be dealt with later in the permitting process.
On 13 September 2021, the Company wrote a letter to Minister Baylan, Sweden's Minister of Enterprise and Innovation at the time, concerning the status of Beowulf's Kallak application.
Post period, Mr Budge visited Sweden between 3-9 October 2021 travelling to Luleå, Boden, Jokkmokk, and Stockholm in order to engage politicians over the Kallak.
Discussions indicate that permitting, sustainable and secure supply chains, the transition to a Green Economy and the need for more mines in Sweden are priorities for several political parties right now, especially those parties contesting to be in government after the next election in September 2022.
Finland: Beowulf continues to work on the scoping study for the Aitolampi Graphite Project. Completion has been delayed enabling further optimisation and to allow thinking to be developed around the establishment of an anode materials plant in Finland.
Kosovo: Beowulf reaffirmed its commitment to Vadar Minerals during the period, investing a further £100k into Vadar and increasing the Company's ownership of Vardar from 48.4% to 49.4%.
Vadar has been unable to commence drilling as it awaits final approval of its licence renewal applications, largely as a result of Covid-related disruptions and Kosovo's parliamentary elections, with the Beowulf board hopeful the permit renewals will be forthcoming.
The Vadar team in-country has already started to prepare access roads and drill pads having received the necessary permits to do so.
*SP Angel acts as Nomad and Broker to Beowulf Mining
Bluejay Mining* (BlueJay Mining PLC (AIM:JAY, OTCQB:BLLYF)) 11.34p, Mkt cap £109m – Bluejay appoints a European investment bank as lead arranger for Dundas project
Bluejay report they have appointed a global investment bank as the lead arranger for the Dundas titanium minerals sands project in Greenland.
The bank will form the lending syndicate and coordinate the lender due diligence process alongside negotiating the debt finance documentation.
The financing group may include Export Credit Agencies, commercial banks and industrial entities.
Bluejay continues to work on the remaining engineering and planning works required.
Pre-construction work will start at Dundas to help accelerate and de-risk the start of construction and speed up the landing of equipment and materials.
This work includes geotechnical and infrastructure surveys, planning and other site works.
Bluejay has also appointed Peter Davies as Project Manager for the Dundas mine.
Davies has extensive experience in mineral sands and titanium dioxide pigment operations, he is a mining engineer with 45 years of international experience in mining and mineral processing.
Peter Davis has previously delivered on numerous definitive feasibility studies and successful mining operations in the past, including mineral sands and is expected to make a significant difference to the development of the project.
Davies has experience in mineral sands and titanium dioxide pigment operations formerly with Tiwest, Antwerp Titanium Dioxide Pigment Operation, Tronox
Conclusion: The recruitment of Peter Davies to the Dundas is a strong endorsement of the potential for near-term finance and development of the project.
Bluejay continues to advance the project in terms of engineering optimisation, planning and finance and there appears to be a growing opportunity to sell titanium mineral sands concentrates into China.
*SP Angel act Nomad and broker to Bluejay. The analyst has previously visited the Enonkoski mine site in Finland. The analyst holds shares in Bluejay Mining.
Caledonia Mining* (Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL)) 980p, Mkt Cap £119m – Strong support for the Victoria Falls Stock Exchange listing
Caledonia Mining reports that as a result of an “extremely positive Zimbabwe investor response” to its listing on the Victorial Falls Stock Exchange listing, it is raising more funds than originally envisaged.
“At the offer price of US$12.64 per depositary receipt, Caledonia expects to issue up to approximately 630,000 new shares, raising approximately $7.96million (before expenses)”.
CEO, Steve Curtis, described the “support from Zimbabwe investors has been extremely encouraging and reinforces our belief that this listing is an important milestone, welcoming new shareholders, with a mutual desire for investment in Zimbabwe and who have not, until now, been able to participate in Caledonia's growth journey”.
The new shares are expected to be admitted to the Victoria Falls exchange “on or about December 2, 2021”.
Mr. Curtis explained that “The VFEX listing will also enable Caledonia to progress with its next phase of development. The access to 100 per cent USD revenue for incremental gold sales will assist Blanket, and any other new mine Caledonia develops, and will attract investors who are confident that Zimbabwe is a competitive investment environment capable of delivering attractive returns”.
Conclusion: Caledonia Mining’s local listing is attracting a positive response from local investors in Zimbabwe
*SP Angel mining analysts have visited Caledonia’s mining operations in Zimbabwe
Hummingbird Resources (Hummingbird Resources PLC (LSE:HUM)) 14.4p, Mkt Cap £57m – Yanfolila temporarily suspended amid a security incident
The Company is reporting about unrest and illegal road blocks in the region of the Yanfolila gold mine in Mali.
As a result of the unrest the Company cannot continue to safely operate the mine and is planning to carry a full assessment of plant and equipment once condition allow.
Yanfolila operations have been temporarily suspended with all employees and contractors reported to be safe and accounted for.
The Company informed authorities of the disruption with the Government reported to be in the process of working through the situation and resolving it.
The team is expecting to restart operations shortly.
The Company expects annual production to come in below the lower end of the previously estimated 100-110koz range.
Impala Platinum (JSE:IMP) ZAR18,240, Mkt cap ZAR149bn – Implats improves offer for Royal Bafokeng, valuing miner at $2.7bn
Royal Bafokeng Platinum (RBP JSE) ZAR13,871, Mkt cap ZAR40bn
Impala Platinum has stepped up its pursuit of Royal Bafokeng Platinum (RB Plat) with an offer that values the South African miner at ZAR43.4bn, or $2.7bn.
Implats offered ZAR159 in cash and shares to RB Plat shareholders, a 24% premium to the closing price on November 26th.
The offer comes in lower than Northam Platinum Holdings’ offer earlier this month that agreed to pay ZAR180/share for a 32.8% stake in RB Plat.
Implats has been pursuing RB Plat’s assets for some time as they are key to prolonging the life of its own deep-level operation in the adjacent Rustenburg mining complex.
Implats has already built a 24.5% stake in RB Plat and their aim is to develop a controlling position, the CEO commented to media this morning.
Implats already mine some ground held by Royal Bafokeng Platinum from Impala’s shafts in cases where it is not economic for Royal Bafokeng Platinum to access this ground.
Impala acquired North American Palladium in late 2019 for C$1bn and we suspect the group will continue to acquire other related mining businesses.
Royal Bafokeng Platinum was created from the restructuring of the JV between Royal Bafokeng Holdings and Amplats.
Rockfire Resources (Rockfire Resources PLC (LSE:ROCK)) 0.89p, Mkt Cap £9.1m – Results from the first drillhole at the Copperhead project
Rockfire Resources reports that the first diamond drill-hole, BCH-001, at its Copperhead porphyry project in northern Queensland, which it describes as the “first drill hole into Copperhead for more than 50 years” has encountered 501m of mineralisation at an average copper equivalent grade of 0.14%.
Although the depths of the individual zones are not reported or the grades of copper, molybdenum and silver contributing to the copper equivalent grade are not explicitly reported, the company does say that “An assay of 2.28 % Cu was encountered at 423 m depth and an assay of 0.50 % Cu was intersected only 6m from the end of the hole” which is reported as 501.40m suggesting mineralisation throughout the entire length of the hole.
The intersection, “includes a stronger zone of 244 m @ 0.20 % CuEq, as well as a more intense zone of 62 m @ 0.30 % CuEq”.
Chief Executive, David Price, said that “Hole BCH001 was designed to verify historical drilling from 1972. Not only did it verify the original drilling, but extended mineralisation materially. This bodes well for the bulk tonnage potential for Copperhead and grades of up to 2.28 % Cu indicate the ability of the system to generate higher-grade zones”.
Assays are still awaited from holes BCH-002 and 003 which were drilled to depths of 359m and 428.90m respectively while holes “BCH004 and BCH005 are currently being geotechnically and geologically logged and will be submitted when this important work is complete”.
Shanta Gold (Shanta Gold Limited (AIM:SHG, OTC:SAAGF)) 11.8p, Mkt Cap £123m – Infill drilling results at the West Kenya Gold Project in Kenya
The Company released infill drilling results from the ongoing programme at the West Kenya Project in Kenya.
At Isulu and Bushiangala, results cover ~6,800m of drilling across 25 holes completed over Q3-Q4/21 with selected intersections including:
At Bushiangala
6.4m at 47.3g/t from 224m including 0.5m at 114g/t;
9.4m at 3.66g/t from 167m including 4.0m at 6.48g/t;
5.0m at 3.88g/t from 228m including 0.5m at 20.0g/t;
5.8m at 6.88g/t from 183m;
0.9m at 9.11g/t from 108m.
At Isulu
2.4m at 31.4g/t from 193m;
0.6m at 27.6g/t from 222m;
4.0m at 6.74g/t from 366m including 0.5m at 24.4g/t;
1.2m at 7.66g/t from 363m;
0.8m at 22.6g/t from 367m.
Phase 2 drilling is focused on infill drilling 10 modelled zones at Isulu and seven zones at Bushiangala for a total of 75,000m that is planned to be completed in Q4/22.
Three drilling rigs are currently active on site at the Isulu and Bushiangala deposits.
The team is on track to complete ~35-40% of the planned infill drilling programme at West Kenya by the end of 2021.
Separately, the team started regional exploration drilling programme during Q4/21 at a third drilling sire, the historical Ramula target.
Selected intersections include:
A potential bulk zone of 60.8m at 3.75g/t from 156m including higher grade intervals of 7.2m at 8.31g/t, 1.2m at 41.5g/t, 0.5m at 19.2g/t and 15.6 at 9.37g/t.
The 2,450m infill drilling programme is focused on eight modelled zones at Ramula and is expected to be completed in Q4/22.
The Company will release an updated MRE in mid Q1/22.
Vulcan Energy Resources (Vulcan Energy Resources (ASX:VUL)) 10.41p, Mkt cap A$1.3bn – Vulcan inks deal with Stellantis for CO2-free German lithium
Vulcan Energy has signed a deal with 4th largest global automaker Stellantis for clean lithium where it hopes to supply 81-99ktpa of lithium over 5-years from 2026.
Vulcan is testing DLE ‘Direct Lithium Extraction’ from its geothermal brine project in the Rhine Valley.
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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Where the investment is traded on AIM it should be noted that liquidity may be lower and price movements more volatile.
SPA, its partners, officers and/or employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s).
SPA is registered in England and Wales with company number OC317049. The registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP. SPA is authorised and regulated by the UK Financial Conduct Authority and is a Member of the London Stock Exchange plc.
MiFID II - Based on our analysis we have concluded that this note may be received free of charge by any person subject to the new MiFID II rules on research unbundling pursuant to the exemptions within Article 12(3) of the MiFID II Delegated Directive and FCA COBS Rule 2.3A.19.
A full analysis is available on our website here http://www.spangel.co.uk/legal-and-regulatory-notices.html. If you have any queries, feel free to contact our Compliance Officer, Tim Jenkins (tim.jenkins@spangel.co.uk).
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%
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