SP Angel . Morning View . Tuesday 25 01 22
Gold prices crawl forward as Ukraine unsettles markets
Lithium and Rare Earth NdPr prices continue to rise
Atlantic Lithium* (Atlantic Lithium Limited (AIM:ALL)) formerly IronRidge* (LON:IRR) – High-grade infill drilling results at Ewoyaa
Base Resources* (Base Resources Limited (AIM:BSE, ASX:BSE)) – Strong demand improves prices leading to higher margins in Q4
BlueRock Diamonds* (Bluerock Diamonds PLC (AIM:BRD)) – Strong sales & diamond prices continue into Jan/22
Galantas Gold (Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF)) – US$1.06m loan agreed for Omagh project
Rio Tinto (Rio Tinto PLC (LSE:RIO)) – Go-ahead for Oyu Tolgoi underground mine project
IGTV: IG Outlook 2022, China new year, winter Olympics may see metals prices soften: (12/01/2022): https://youtu.be/vNqDh74zW5I
VOX Markets: 12/01/22: https://audioboom.com/posts/8011559-john-meyer-on-china-s-factory-shut-downs-plus-news-from-bluejay-beowulf-atlantic-lithium
interactive Investors: FTSE 100 favourite stock: https://youtu.be/BomNRQJt-YA. 2022 outlook: https://youtu.be/SxMPiPEc_Rg
Three small-cap mining share tips for 2022: https://www.youtube.com/watch?v=9xvA_3UXXYQ&ab_channel=interactiveinvestor
*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.
If Russia invades the Ukraine will China invade Taiwan and other nations move to settle their scores
Europe relies on Russia for circa 35% of its natural gas supply
$2.5tn in fiscal support for the US economy in 2021, amounting to 11% of GDP - larger than any previous fiscal package since World War II.
Top gold ETF sees surge in inflows as price strengthens against traditional headwinds
The SPDR Gold Shares ETF recorded its largest net inflow in dollars since 2004 last week.
The ETF is the world’s largest bullion-backed fund.
Gold has been trading around $1,840/oz for the past fortnight despite the market pricing in a hawkish shift in the Federal reserve with a minimum of 4 rate hikes this year.
The metal has also strengthened despite the Dollar Index rising to a 2-week high.
Geopolitical tensions with Russia, Ukraine, Taiwan, and China are also encouraging investors to seek safe havens, with the CBOE volatility index up 96% YTD.
The Fed is set to take further measures to tackle soaring inflation, with an FOMC meeting beginning today.
Iron ore prices slide as Lunar New Year holiday and Winter Olympics loom
Chinese iron ore fell 1.7% this morning, having touched its Oct. 13th.
Singapore iron ore fell 2.7% to $133.30/t.
Analysts expect steelmakers to have eased on their restocking efforts in the lead up to the Lunar New Year holiday from Jan 31st – Feb 6th.
There are also expectations of a ramp up in steelmaker curbs during the Winter Olympics, set to kick off on Feb. 4th.
China’s recent monetary policy easing has provided a tailwind to iron ore prices previously downtrodden by the country’s faltering property sector.
Steel rebar down 1.1%; hot rolled coil down 1%; stainless steel down 4.2%.
Baltic index continues to fall as dry bulk rates weaken
The Baltic Index fell 1.7% to its lowest since mid-Feb 2021.
Freight costs are volatile with the Baltic Dry Index falling to 1391 from a high of 5653.
The current index level is now close to the average rate over the past five years.
The capesize index, primarily carrying iron ore and coal, fell 6.2% to June 2020 lows.
Nickel prices weaken as Tsingshan delivers first Indonesia matte shipment
Nickel prices have eased to $22,280/t having climbed 14.5% to $24,000/t over the past month.
China Tsingshan’s first shipment of nickel matte from Indonesia, destined for battery grade conversion, sent prices down 6.8% overnight.
Traders are worried a flood of lower grade Indonesian nickel will push the market into a surplus following a recent supply squeeze.
Dow Jones Industrials +0.29% at 34,365
Nikkei 225 -1.66% at 27,131
HK Hang Seng -1.80% at 24,213
Shanghai Composite -2.58% at 3,433
Economics
US – Manufacturing and services PMIs dropped to 15- and 18-month lows, respectively, amid softer demand conditions, worsening supply chain disruptions and labour shortages linked o the Omicron wave.
Inflation for goods and services picked up registering the third-fastest reading on record as companies looked to pass higher costs onto consumers.
Employment also climbed albeit modestly.
Business outlook remained strong, although, respondents highlighted strong inflation risks.
Markit Manufacturing PMI (Prelim): 55.0 v 57.7 in December and 56.7 est.
Markit Services PMI (Prelim): 50.9 v 57.6 in December and 55.4 est.
Markit Composite PMI (Prelim): 50.8 v 57.0 in December.
Ukraine – US puts 8,500 troops on alert for potential deployment in Europe with another 45,000 on standby
The US is preparing to send troops to support Eastern Europe to counter a potential invasion of the Ukaraine.
Markets saw high levels of volatility yesterday as some funds reduced risk in equities
Retail investors are reported to have sold $1.3bn in US markets yesterday.
The Euro fell yesterday while the US dollar and Yen rose as safe-haven currencies .
China - State-backed Chinese firms bail out indebted property developers as liquidity crisis continues
State-backed China State Construction Engineering is set to take a 26.7% stake in top 20 home seller Agile Group for $300m. (SCMP)
The move follows Shimao Group’s sale of land to the Shanghai municipal government.
Evergrande has also added the chairman of one of China’s largest state-backed asset managers to its board, hinting at a potential state intervention.
Evergrande has begged offshore bondholders to give it more time and ‘avoid hostile actions’ as it mulls over payment options.
Analysts expect further acquisitions by Beijing-backed units to shore up the property sector to avoid a large-scale collapse of the sector which accounts for 29% of China’s GDP.
EU - ISM manufacturing 59.0 in January vs 58.0 in December
Services 51.2 in January vs 53.1 in December
Composite 52.4 in January vs 53.3 in December
UK – Treasury on track for a £10bn windfall due to lower than expected borrowings
ISM manufacturing 56.9 (57.9 in December
Services 53.3 in January vs 53.6 in December
Composite 53.4 in January vs 53.6 in December
Japan - ISM manufacturing 4.6 in January vs 54.3 in December,
Services 46.6 in January vs 52.5 in December
Composite 48.8 in January vs 52.5 in December
Germany – Business sentiment improved as manufacturers reported easing supply bottlenecks and services sector firms reported stronger outlook despite virus-related restrictions in place.
“The German economy is starting the new year with a glimmer of hope,” Ifo commented on the data.
The Bundesbank said that the economy probably contracted “slightly” last quarter and expects growth to accelerate to 4.2% this year.
Ifo Business Climate: 95.7 v 94.8 (revised from 94.7) in December and 94.5 est.
Ifo Current Assessment: 96.1 v 96.9 in December and 96.1 est.
Ifo Expectations: 95.2 v 92.7 (revised from 92.6) in December and 93.0 est.
ISM manufacturing 60.5in January vs 57.4 in December
Services 52.2 in January vs 48.7 in December
Composite 54.3 in January vs 49.9 in December
France ISM manufacturing 55.5 in January vs 55.6 in December
Services 53.1 in January vs 57.0 in December
Composite 52.7 in January vs 55.8 in December
Australia – Headline inflation figures beat estimates last quarter and came in higher than the 2-3% RBA target.
Core gauges, a measure closely watched by RBA officials, advanced 2.6%yoy last quarter also beating expectations for a 2.3%yoy growth.
The data suggests the central bank will terminate its bond-buying programme at its meeting next Tuesday and potentially look at lifting rates later this year.
CPI (%qoq/yoy): 1.3/3.5 v 0.8/3.0 in Q3/21 and 1.0/3.2 est.
Sudan looks to ramp up gold exports to fill foreign aid hole
The Sudanese finance ministry is aiming to spend 70% of gold exports on key goods including fuel and wheat.
The budget hopes to increase non-aid revenues, much of which come from gold mining, to fill an $827m deficit.
The country has been starved of foreign aid since the Oct. 25th military coup.
Sudan exported 26.4mt of gold in the first 3 quarters of 2021.
Power cuts across Uzbekistan, Kazakhstan and Kyrgyzstan following major power line disconnection
The disconnection of a major power line in Kazakhstan has caused outages in the 3 ex-Soviet states.
The countries share a grid linked to the Russian power grid.
Kazakhstan’s North-South power line was disconnected this morning as a result of ‘emergency imbalances.’ (Reuters)
Currencies
US$1.1310/eur vs 1.1318/eur yesterday. Yen 113.87/$ vs 113.76/$. SAr 15.311/$ vs 15.124/$. $1.348/gbp vs $1.355/gbp. 0.714/aud vs 0.717/aud. CNY 6.327/$ vs 6.332/$.
Commodity News
Precious metals:
Gold US$1,841/oz vs US$1,840/oz yesterday
Gold ETFs 99.0moz vs US$99.0moz yesterday
Platinum US$1,020/oz vs US$1,043/oz yesterday
Palladium US$2,160/oz vs US$2,123/oz yesterday
Silver US$23.79/oz vs US$24.25/oz yesterday
Rhodium US$16,700/oz vs US$16,650/oz yesterday
Base metals:
Copper US$ 9,667/t vs US$9,818/t yesterday
Aluminium US$ 3,051/t vs US$3,033/t yesterday
Nickel US$ 22,280/t vs US$23,260/t yesterday
Zinc US$ 3,575/t vs US$3,592/t yesterday
Lead US$ 2,348/t vs US$2,366/t yesterday
Tin US$ 41,400/t vs US$43,365/t yesterday
Energy:
Oil US$86.7/bbl vs US$88.4/bbl yesterday
Oil prices fell 2% yesterday, impacted by investor concerns over the possibility of quicker than expected interest-rate hikes by the US Federal Reserve that took down risk markets such as equities while the dollar rallied
Wall Street stocks slumped, after last week posting their worst week since 2020, pulling down other risk assets like crude
Stocks fell while the dollar rose to a two-week high on Monday against a basket of currencies, lifted by the tension between Russia and the West over Ukraine and the possibility of a more hawkish stance from the Fed this week
Concerns of supply disruption in Eastern Europe, the New York Times reported late on Sunday that President Joe Biden was considering deploying several thousand US troops to NATO allies in Eastern Europe and the Baltics
Russia will face severe economic sanctions if it installs a puppet regime in Ukraine, a senior UK government minister (Dominic Raab) confirmed yesterday, after the UK accused the Kremlin of seeking to place a pro-Russian leader in power there
Money managers raised their net long US crude futures and options positions in the week to 18 January, according to the US Commodity Futures Trading Commission (CFTC)
In addition, US petroleum inventories have continued to slide over the last month, while energy firms cut oil rigs this week for the first time in 13 weeks
Natural Gas US$3.978/mmbtu vs US$3.912/mmbtu yesterday
Trends from the major weather models were mixed over the weekend, and the end result was no major change to the outlook for natural gas demand compared to Friday’s expectations, according to Bespoke Weather Services
European natural gas prices fell last week as China prepares to flood the market with fuel that could further ease supply concerns in the continent
Benchmark futures fell as much as 8.9%, tracking weaker prices in Asia
The trading arm of Sinopec is selling spot LNG cargoes this year, according to traders with knowledge of the matter
The move indicates China is well stocked and more gas could come to Europe, helping to ease pressure from its abnormally low inventories and curtailed supplies from Russia
Uranium UXC US$45.05/lb vs $45.40/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$132.5/t vs US$136.7/t
Chinese steel rebar 25mm US$755.0/t vs US$753.8/t
Thermal coal (1st year forward cif ARA) US$113.5/t vs US$108.5/t
Thermal coal swap Australia FOB US$217.0/t vs US$217.0/t
Coking coal swap Australia FOB US$441.0/t vs US$441.0/t
Other:
Cobalt LME 3m US$71,000/t vs US$72,000/t
NdPr Rare Earth Oxide (China) US$145,799/t vs US$145,693/t
Lithium carbonate 99% (China) US$55,712/t vs US$55,356/t
China Spodumene Li2O 5%min CIF US$2,690/t vs US$2,690/t
Ferro-Manganese European Mn78% min US$1,804/t vs US$1,805/t
China Tungsten APT 88.5% FOB US$320/t vs US$320/t
China Graphite Flake -194 FOB US$805/t vs US$805/t
Europe Vanadium Pentoxide 98% 9.5/lb vs US$9.3/lb
Europe Ferro-Vanadium 80% 37.25/kg vs US$36.25/kg
China Ilmenite Concentrate TiO2 US$391/t vs US$391/t
Spot CO2 Emissions EUA Price US$95.9/t vs US$93.3/kg
Brazil Potash CFR Granular Spot US$810/t vs US$810/t
Battery News
Church Pensions Board to vote against miners shunning safety standards
The Church of England Pensions Board said in a statement this morning that it will vote against the chairs of corporate boards who haven’t implemented a global industry standard for managing tailings dams.
The Pensions Board set up the Investor Mining and Tailings Safety Initiative which pushes for improvement in mine safety.
A third of all mining companies with tailings dams have committed to implement the new global standard, however, there have been a further 12 mine waste incidents since the Brumadinho disaster in 2017.
A total of 79 companies have committed to implement the new tailings standard or are assessing their alignment to it including: Rio Tinto, BHP, Anglo American and Glencore.
Green hydrogen revolution needs £13bn private investment to become a success
New research from Lane Clark & Peacock, estimates that around £13bn of private investment will be needed if the government’s plans are to be realised.
The government currently hopes to build 26GW of green hydrogen facilities by 2050.
The report reveals that government support of between £500m to £1bn per GW of hydrogen electrolyser will be necessary to ensure the technology can be delivered profitably.
By 2040, the study estimates that 15GW of electrolysers will be deployed and this number will reach 26GW by 2050.
If current renewable energy plans in the UK are realised, 105GW of wind and solar energy capacity will be on the UK’s network by 2040 and renewable generation will outweigh demand in 44% of the hours.
This would leave 57TW of excess renewable energy that can be used to produce green hydrogen.
UK government commits £32m for floating wind projects
The British government has said it will commit nearly £32m to fund the development of floating offshore wind projects to help lessen dependence on gas, which has seen a sharp increase in price.
The government said 11 projects would receive funding to develop new technologies to enable turbines to be installed in the windiest parts of Britain's waters as it seeks to become a world leader in floating wind.
Company News
Atlantic Lithium* (Atlantic Lithium Limited (AIM:ALL)) 32.8p, Mkt cap £188m – High-grade infill drilling results at Ewoyaa
Formerly IronRidge* (LON:IRR)
Atlantic lithium reports its latest round of assay results from the Ewoyaa Lithium Project in Ghana, where the company recently announced an updated Scoping Study and increased JORC resource of 21.3Mt @ 1.31% Li2O.
The results are comprised of 10,688m from 90 holes and approximately 11,800m of infill, extensional and exploration drilling assay results are to be reported.
High grade drill results at a 0.4% Li2O cut-off and maximum 4m of internal dilution include:
GRC0570: 65m at 1.66% Li2O from 159m
GRC0546: 23m at 1.64% Li2O from 87m
GRC0560: 35m at 0.96% Li2O from 32m
GDD0059: 21.1m at 1.53% Li2O from 92.5m
GRC0539: 20m at 1.6% Li2O from 48m
GRC0502: 24m at 1.29% Li2O from 98m
GDD0061: 27.8m at 1.11% Li2O from 44.2m
GRC0531: 22m at 1.4% Li2O from 45m
GRC0538: 21m at 1.21% Li2O from 52m
GRC0568: 12m at 1.84% Li2O from 104m
GDD0056: 14.4m at 1.17% Li2O from 24m
The latest drill results showed the second highest metal content (grade x interval length) drill intersection returned to date with hole open in mineralisation; 65m at 1.66% Li2O from 159m in GRC0570.
The rounds of drill results released by Atlantic continue to confirm grade and continuity across the Ewoyaa deposits, with the first results received for newly drilled Kaampakrom West target confirm good grades and widths outside of the current resource footprint with further results pending.
Highlights from the recently completed updated scoping study at Ewoyaa, based on a 2.0mtpa include:
Pre-tax NPV8% of US$1,227m
Pre-tax EBITDA of US$2,024m
Post-tax NPV8% of US$789m
Post-tax IRR of 194%
Average EBITDA of US$178m per annum
*SP Angel act as Nomad to Atlantic Lithium
Base Resources* (Base Resources Limited (AIM:BSE, ASX:BSE)) 16.28p, Mkt Cap £193m – Strong demand improves prices leading to higher margins in Q4
Base Resources continue to mine mineral sands at the South Dune orebody at Kwale in Kenya.
Grades rose to 3.82% as mining moved towards the centre of the orebody.
Q4 production:
ilmenite rose to (84.0 vs 78.5kt yoy),
rutile (18.4kt vs 18.2kt yoy)
zircon (6.4kt vs 6.7kt yoy)
Operating costs rose by 13% qoq to $161kt.
There was a very substantial catchup in ilmenite sales in Q4.
Q4 Sales
ilmenite rose to (130.0 vs 53.8kt yoy),
rutile (11.6kt vs 12.0kt yoy)
zircon (6.2kt vs 6.4kt yoy)
Sales rose to $459m in Q4 vs $464m yoy but was lower than Q3 at $668m
The cost of goods sold fell to $156 from $207yoy helping the margin on cost ratio to 2.9 vs 2.2 yoy
Guidance:
Rutile - 73,000 to 83,000 tonnes.
Ilmenite - 310,000 to 340,000 tonnes.
Zircon - 24,000 to 28,000 tonnes.1
The SML extension to the Kwale mineral sands mine in Kenya is expected to extend the mine life to December 2023 while the a PFS at Bamamani may support further extension to Mid 2014.
Toliara: Discussions with the government of Madagascar on the Toliara project continue.
Expenditure on Toliara was $1.2m in Q4 vs $2.1m in Q3
Base management improved the estimated economics of Toliara last year raising production by 33% in ‘DFS2’to 25mtpa raising the NPV to $1,008m and IRR 23.8%.
The project scale rose 23% to 960,000tpa of ilmenite, 66,000tpa of zircon and 8,000tpa of rutile building up to peak production in 2030
Stage 1 capex rose to US$520m due to input cost escalation.
Stage 2 capex has risen US$68m to US$137m
Operating costs $88/t produced DFS2, Revenue $306/t produced DFS2, Margin $218/t DFS2
Titanium prices: Demand remained strong through 2021 strengthening in the fourth quarter for TiO2 pigments and zircon in China
All other markets continued to strengthen through the quarter with further price increases for TiO2 pigment already announced.
Production continues to lag behind increases in supply out of Africa, Vietnam and China and is likely to support prices through the first half.
Freight costs are volatile with the Baltic Dry Index falling to 1391 from a high of 5653. The current index level is now close to the average rate over the past five years.
Rutile prices increased through the year to CNY13,500 ($2,132/t) from CNY12,350 ($1,1951/t) through the year with further price rises expected
Base had a major rutile shipment postponed into January 2022 due to shipping delays.
Zircon demand remains strong raising prices by approximately US$600/t from September to December with a marginal increase into March contracts.
ESG: Management report that rehabilitation of the Central Dune slopes and plateau continued to plan and agricultural trials on the co-disposed water retention layer proved successful.
All operations employees at Kwale had received at least one dose of COVID-19 vaccine by the end of the quarter with 76% fully vaccinated. Boosters are scheduled to commence early in 2022.
Royalty payments to the Tanzanian government increased under the new royalty regime to $18.8m including the September quarter royalty and catch-up payments to the June quarter.
Base Titanium ltd also paid US$7.7m in corporate tax instalments.
*The SP Angel analyst visited the Toliara mineral sands project in Madagascar on a well organised but infamous trip that resulted in all the visiting London analysts contracting a severe form of gastro-intestinal bacterial infection
BlueRock Diamonds* (Bluerock Diamonds PLC (AIM:BRD)) – 37.5p, Mkt cap £5.3m – Strong sales & diamond prices continue into Jan/22
Bluerock reports that it sold 6.8 carat stone for USD63,186 in the January 2022 sale.
The stone was one of two high value stones sold in the January tender, however the second fell under the $50k disclosure threshold.
The average price of $565/ct in January was significantly higher than the 2021 average of $465/ct.
BlueRock recently reported its Q4 21 production figures which saw a significant increase in recovered grades and diamond production on previous quarters.
The Kareevlei mine produced 6,866cts in Q4 raising full year production to 23,497cts.
The mine sold 13 larger stones last year totalling 184cts and worth $1.861m. This represents 17% of revenue for the year.
*SP Angel act as Nomad and broker to Bluerock Diamonds
Galantas Gold (Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF)) 31.5p, Mkt Cap £23.9m – US$1.06m loan agreed for Omagh project
Galantas Gold reports that it has agreed a six-months US$1.06m loan in order to fund further development of the Omagh gold project in Northern Ireland.
The loan, with Ocean Partners, carries interest at 10%, compounded monthly and payable on repayment of the loan.
In addition, “Galantas may at its option extend the Loan for a further six months by paying Ocean an additional structuring fee of US$40,000” in addition to the initial structuring fee of US$20,000 and US$40,000 consulting fee.
Thanking Ocean Partners for its support, CEO, Mark Stifano said that Galantas Gold aimed “to achieve production at the end of Q1 this year”.
Rio Tinto (Rio Tinto PLC (LSE:RIO)) – 5,311p, Mkt cap £66bn – Go-ahead for Oyu Tolgoi underground mine project
Rio Tinto reports that, following resolution of outstanding issues with both the Government of Mongolia and Turquoise Resources (TRQ), underground mining is expected to start on the Oyu Tolgoi project “in the coming days, with first sustainable production expected in the first half of 2023”.
The US$6.9bn project, which is expected to make Oyu Tolgoi the 4th largest copper mine in the world by 2030, is described as “a complex greenfield project comprising an underground block cave mine and copper concentrator as well as an open pit mine which has been successfully operating for almost ten years”.
Oyu Tolgoi is “expected to operate in the first quartile of the copper cash cost curve …[and] … to produce around 500,000 tonnes of copper per year on average from 2028 to 2036 from the open pit and underground, and an average of around 350,000 tonnes for a further five years, compared to 163,000 tonnes in 2021”.
At an average reserve grade of 1.52% copper, the underground reserves at Oyu Tolgoi are more than 3x the grade of the existing open-pit reserves
“Forecasted remaining underground capital expenditure is approximately $1.8 billion” although Rio Tinto explains that a new forecast “will be undertaken during H1 2022 to determine a revised cost and schedule estimate that will reflect:
any further COVID-19 impacts;
any additional time-based impacts and market price escalation arising from resequencing due to 2021 budget constraints (as a result of the OT Board not approving the capital budget uplift at the time the Definitive Estimate was finalised); and
updated risk ranging reflecting the latest project execution risks”
Rio Tinto owns a 50.8% share in TRQ which owns 66% of the project alongside a 34% interest held by the Mongolian Government.
“An updated funding plan has been agreed to address TRQ’s current estimated remaining funding requirement for the OT Underground Project. Until sustainable underground production is achieved, OT will be funded by cash on hand and rescheduling of existing debt repayments, together with a pre-paid copper concentrate sales agreement with TRQ”.
In addition, agreement has been reached to secure the mine a long-term power supply from the Mongolian grid and Rio Tinto has undertaken to “work with the Government to support long-term renewable energy generation in support of the Mongolian grid”.
The Prime Minister, Luvsannamsrain Oyun-Erdene, commented that “The commencement of Oyu Tolgoi underground mining operations demonstrates to the world that Mongolia can work together with investors in a sustainable manner and become a trusted partner. As part of our "New Recovery Policy", I am happy to express Mongolia's readiness to work actively and mutually beneficially with global investors and partners”.
Rio Tinto’s Chief Executive, Jakob Stausholm described the agreement as “crucial” to the development of “one of the world's largest copper growth projects … [which is expected to] … firmly establish Mongolia as a global investment destination. This agreement represents a reset of our relationship and resolves historical issues between the OT project partners. We strongly believe in the future of this country and I am personally committed to ensuring that the people of Mongolia benefit strongly from OT along with our shareholders”.
Conclusion: The agreements clear the way for the large-scale block cave development at Oyu Tolgoi which is expected to push the mine to rank as the world’s 4th largest copper mine by 2030 and to secure Rio Tinto as a major global copper producer.
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
Prince Frederick House
35-39 Maddox Street London
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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, 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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