SP Angel . Morning View . Thursday 27 01 22
Rare Earth NdPr prices rise despite Fed signals
MiFID II exempt information – see disclaimer below
PRIVATE FUNDING – For a Rare Earth Phosphate deposit in the US
We are raising funds for a Rare Earth Phosphate deposit with up to 28% P2O5 in the raw ore.
REE enrichment is up to 4,200ppm, of which ~25% are high value magnet metals (Nd-Pr-Dy).
Management are looking to drill in 2022 to define potential for 20mmt 36% phosphate concentrate and 26,000t of REE magnet metals.
The resource is on privately-owned rural acreage, close to existing quarrying operations and rail infrastructure.
The company is working with several US REE extraction laboratories to maximise recovery and minimise opex.
Early estimates are for a $45m capex to get to phosphate concentrate production with additional capex for a REE leaching plant.
Please let us know if you wish to take part in this funding
Altus Strategies* (Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF)) – BUY, 111p – Diba NW drilling update returns high grade intercepts
Anglo American (Anglo American PLC (LSE:AAL)) – Q4 2021 production report and 2022 guidance
Anglo American Platinum (JSE:AMS) – 2021 refined PGMs Output rose 89% last year
Anglo Asian Mining* (Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)) - BUY – Secured 20% stake in Libero for ~US$5m with exploration at Mocoa to start next month
Libero Copper & Gold (Libero Copper Corporation (TSX-V:LBC))
Aura Energy* (Aura Energy Ltd (ASX:AEE, AIM:AURA)) – Greenhouse gas emission study for Tiris
Bluejay Mining* (BlueJay Mining PLC (AIM:JAY, OTCQB:BLLYF)) – Eric Sondergaard appointed to Bluejay board
Conroy Gold & Natural Resources (Conroy Gold and Natural Resources PLC (AIM:CGNR, OTC:CGDNF)) – Licence transfers to the Demir joint-venture approved
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.
LG Energy Solutions (JSE:LGES) 597,000won, US$99bn - Major battery producer LG Energy hits $99bn valuation on IPO
The world’s second largest EV battery maker raised $10.6bn for an IPO yesterday.
The company supplies Tesla, Hyundai, GM, VW and others EV batteries.
The listing was heavily oversubscribed as investors seek non-Chinese battery makers.
The business produces around 22% of the world’s EV batteries, following CATL’s 29%.
The shares opened at 597,000 won ($496) versus an IPO price of 300,000 won ($249) yesterday but then fell 25% early trading.
Over 4.4m retail investors contributed a record $95bn to the IPO alongside ~$13tn from some 2,000 foreign and domestic institutional investors
Contemporary Amperex Technology Co Ltd’s (CATL) is worth $208bn by comparison
LGES has a $216bn battery order backlog but will have to contend with fierce competition for business and in the sourcing of raw material supplies
Conclusion: LGES will have to work hard to source the lithium, graphite, nickel, cobalt and tin needed to meet its expanding order book going forward
Tin prices continue to climb on tight supply
Tin prices have climbed back to $42,500/t with high cash premiums suggesting a significantly tight spot market.
Shanghai stocks remain low at 2,471t, down from a March 2021 peak of 8,853t.
LME tin stocks hit a low of 670 but have recovered slightly to 2,195t.
Indonesia has delayed new export permits disrupting shipments of tin metal and concentrates. The nation is considering banning the export of tin concentrates from 2023.
Analysts expect the lifting of Malaysia MSC’s 6-month force majeure to boost the supply side in the coming month.
Gold slides to $1,815/oz as Fed signals plans to raise interest rates from mid-March
The metal weakened on a further hawkish shift from the US Fed, despite mounting geopolitical tensions in Ukraine and decades-high US inflation.
Jerome Powell confirmed the Fed’s intentions to raise rates in March.
The announcement affirmed the Fed’s intention to tame soaring inflation, with Powell hinting that rates could rise faster than any period over the past decade.
Benchmark US Treasury 10-year yields climbed to 1.848% from 1.782% the previous session.
The rise marks the yield’s highest level since March 2020, with rising yields reducing the appeal of non-interest bearing gold to investors.
Iron ore extends gains to US$137.5/t on potential for further Covid disruption in Western Australia
Australia is facing concerns over Omicron infections disrupting labour supplies, with WA recording 24 new cases yesterday.
The state supplies 70% of China’s iron ore imports with Rio, BHP, and Fortescue all expecting to see labour disruption.
Weather disruptions are also forecast as the La Nina cyclone season approaches.
Iron ore has rallied 58% to $137.6/t over the past 18 months
Palladium climbs to September highs on Russia/Ukraine concerns
March palladium futures up 7.4% to $2,350/oz. (Comex)
Russia is the largest producer of the metal globally, with traders expected an escalated conflict to hit an already tight market balance.
Copper weakens as Fed tightens stimulus in continuation of hawkish transition
Copper fell 1.7% to $9,748/t following Powell’s confirmation of an expected rate hike in March.
The metal was restrained by a strong US dollar, with the Dollar Index climbing 0.80% to 96.82.
Dow Jones Industrials -0.38% at 34,168
Nikkei 225 -3.11% at 26,170
HK Hang Seng -2.19% at 23,758
Shanghai Composite -1.78% at 3,394
Economics
China – Property developers struggling to refinance as government controls restrict availability of finance
Guangdong developer Times China Holdings announces share placement with 17% discount highlighting liquidity issues on property developers in China.
Funds from pre-sales, eg from properties pre-sold to buyers ahead of building completion, are being held in government regulated bank accounts.
Other forms of finance are being limited by the ‘three red lines’ specified by the authorities as well as debt concerns.
Evergrande is still looking to come through with a new restructuring according to a call with investors and creditors last night though the Chinese authorities may choose to dismantle the business to contain debt crisis
A dismantling would see most of the company’s assets sold except for its separately listed property management and EV units.
State-owned China Cinda Asset management would likely lead the group taking over any unsold property assets with proceeds used to repay creditors.
US – Fed Chair Powell says central bank ready to raise rates in March in hawkish shift
Fed Chair Jerome Powell said he expects to raise rates in March and didn’t rule out hiking rates at every meeting in order to tackle inflation.
The Fed also said its expects the process of balance-sheet reduction will commence after it has begun raising rates.
By the year-end, traders are factoring in five increases to take the Fed funds rate to 1.5%, from 0.25% currently, Bloomberg reports.
New home sales rose 11.9% in December to 0.811m units vs 12.4% in November at 0.744m units
EU/ China – WTO case raised over Lithuania blockade
The EU has raised China’s activity towards Lithuania with the World Trade Organisation over its coercive practices.
China started blocking Lithuanian products and goods that contained Lithuanian components after Taiwan opened a representative office in Vilnus under the country’s name instead of the capital, Taipei.
Beijing doesn’t recognise Taiwan as a separate country and said the move was a challenge to its sovereignty.
EU VP Valdis Dombrovskis commented: “These measures are a threat to the integrity of the single market because they affect intra-EU trade and EU supply chains and have a negative impact on EU industry,”
Indonesia aims to boost total investment by 33% in 2022 on resource-processing
Indonesia aims to boost total investment this year by a third, supported by an influx of investment into its resource-processing sector, a cabinet minister said on Thursday.
The government wants to attract 1,200 trillion rupiah (US$83.4bn) in investment this year, from both domestic and foreign sources.
Investment Minister Bahlil Lahadalia told a news conference "The priority focus for investment in 2022, firstly we must refer to the grand vision of our president, which is transformation and downstreaming (of natural resources),"
Indonesia is the world’s biggest nickel producer and has been pushing to develop an EV industry as part of a bid to squeeze more value from its ore reserves.
The country banned nickel exports in 2020 in order to capture more of the value form its mineral resources.
The biggest beneficiary of FDI last year was the base metal sector followed by mining and transport, warehousing and telecommunication.
South Korea - Consumer confidence 104.4 in January vs 103.9 in December
France - Consumer confidence worsened slightly to 99 in January vs 100 in December
UK – 2020 50p coin sells for £650 on ebay
The special 50p coin was made to mark the UK leaving the European Union in January 2020.
We are not sure the rest of the 10m 50p coins in circulation are going to trade for such lofty sums but £10-20 is said to be more likely.
Currencies
US$1.1205/eur vs 1.1293/eur yesterday. Yen 114.82/$ vs 114.03/$. SAr 15.341/$ vs 15.184/$. $1.342/gbp vs $1.351/gbp. 0.707/aud vs 0.716/aud. CNY 6.363/$ vs 6.323/$.
Commodity News
Precious metals:
Gold US$1,815/oz vs US$1,845/oz yesterday
Gold ETFs 99.1moz vs US$99.1moz yesterday
Platinum US$1,024/oz vs US$1,040/oz yesterday
Palladium US$2,324/oz vs US$2,212/oz yesterday
Silver US$23.13/oz vs US$23.79/oz yesterday
Rhodium US$16,800/oz vs US$16,800/oz yesterday
Base metals:
Copper US$ 9,788/t vs US$9,881/t yesterday
Aluminium US$ 3,111/t vs US$3,113/t yesterday
Nickel US$ 22,525/t vs US$22,470/t yesterday
Zinc US$ 3,605/t vs US$3,609/t yesterday
Lead US$ 2,329/t vs US$2,338/t yesterday
Tin US$ 42,570/t vs US$41,945/t yesterday
Energy:
Oil US$89.5/bbl vs US$88.7/bbl yesterday
Oil prices fell in early trading today, after hitting the US$90/bbl Brent threshold yesterday, as the US dollar strengthened following signs that the Federal Reserve will tighten monetary policy soon in the world's biggest oil user
Futures pulled back amid a broader decline in financial markets after the Fed telegraphed a March interest rate increase and as the dollar climbed against its major peers
Dollar-denominated oil becomes more expensive for buyers using other currencies when it gains
The dollar rose on higher US Treasury yields, lifting the US dollar index, which measures the currency against major peers, to 96.604, near five-week highs
Crude prices surged on Wednesday, with Brent climbing to US$90/bbl for the first time in seven years, amid tensions between Ukraine and Russia, the world's second-largest oil producer, that have fanned fears of energy supply disruptions to Europe
OPEC+ has also missed its planned supply increase target in December, highlighting capacity constraints that are limiting supply as global demand recovers from the COVID-19 pandemic
OPEC+ is gradually relaxing 2020's output cuts as demand recovers from the demand collapse that year
But many smaller producers are struggling to raise supply and others have been wary of pumping too much in case of renewed COVID-19 setbacks
Natural Gas US$4.401/mmbtu vs US$4.225/mmbtu yesterday
European gas price futures have risen materially again as a large increase in weather-driven demand expectations overnight from one of the major weather models had natural gas futures trading sharply higher as of early Wednesday
Overnight, the European weather model underwent a “major cold move,” adding close to 20 gas-weighted degree days versus its projections as of Tuesday afternoon, according to Bespoke Weather Services
NatGasWeather similarly observed a “notably colder” European model overnight, estimating a net increase of 40-45Bcf of natural gas demand based on the changes in the temperature outlook
Uranium UXC US$45.05/lb vs $45.05/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$137.5/t vs US$136.7/t
Chinese steel rebar 25mm US$751.1/t vs US$755.7/t
Thermal coal (1st year forward cif ARA) US$117.0/t vs US$114.0/t
Thermal coal swap Australia FOB US$233.0/t vs US$223.5/t
Coking coal swap Australia FOB US$437.0/t vs US$437.0/t - China coking coal imports fell 25% in 2021 on border closures and Australia ban
China imported 54.7mt of coking coal last year, down 24.6% from 2020.
China lifted an unofficial ban on Australian coal in Q4 of 2021.
11.3% of China’s coking coal imports came from Australia since October.
China imports from Mongolia fell 41% in 2021 as Beijing closed the border to reduce Covid transmissions.
China coking coal imports from Russia rose 60% in 2021.
China coking coal imports from the US rose 10x in 2021.
Other:
Cobalt LME 3m US$71,000/t vs US$71,000/t
NdPr Rare Earth Oxide (China) US$150,086/t vs US$149,457/t
Lithium carbonate 99% (China) US$55,398/t vs US$55,750/t
China Spodumene Li2O 5%min CIF US$2,710/t vs US$2,710/t
Ferro-Manganese European Mn78% min US$1,787/t vs US$1,801/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% 9.7/lb vs US$9.6/lb
Europe Ferro-Vanadium 80% 39.25/kg vs US$38.25/kg
China Ilmenite Concentrate TiO2 US$391/t vs US$393/t
Spot CO2 Emissions EUA Price US$93.8/t vs US$94.5/kg
Brazil Potash CFR Granular Spot US$810/t vs US$810/t
Battery News
Renault-Nissan unveils $26bn EV alliance
Renault and Nissan have outlined a joint investment plan, with $26bn spent over five years on shared manufacturing platforms, batteries and operating systems.
Nissan are to lead the development of solid-state battery technology while Renault will focus on the car software.
The alliance will slim down the number of models from 100 to 90 while boosting commonality to more than 80% from 60% by 2026.
By mid-decade, the alliance aims to deploy a fifth common platform for compact EVs designed by Renault.
The three automakers all have their own hybrid technologies with few shared key parts and systems, and it is not yet clear whether or not the alliance leaders will discuss hybrids as part of their 2030 plan.
Tesla post record earnings despite supply chain issues
Tesla has released its financial results for Q4 and Full Year 2021, posting an update on its Investor Relations website.
Tesla recorded Q4 revenue of $17.7bn in 2021, a 65% increase YoY ($10.7bn in Q4 2020), taking Tesla’s annual revenue to $53bn for the year.
Record revenue was recorded in a year significantly disrupted by supply chain issues and with various expansion projects of Tesla Gigafactories.
Despite the global chip shortage, Tesla delivered 936,222 vehicles an increase of 87% on 2020 vehicle deliveries.
Production was also up 83% YoY across all models despite Elon Musk revealing that factories “have been running below capacity for several quarters” due to supply chain issues.
Speaking on the investor call, Musk also revealed that he expects supply chain issues to continue through 2022 but believes Tesla’s volume growth will be “comfortably above 50%.”
Tesla is hoping to start initial production of its much-anticipated Cybertruck by Q1 2023, pushing back its plan to begin production late this year, a source told Reuters.
Production had already been delayed from late 2021 to late 2022, due to supply chain issues.
Company News
Altus Strategies* (Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF)) 60p, Mkt Cap £70m – Diba NW drilling update returns high grade intercepts
BUY – 111p
The Company reports drilling results at the Diba NW prospect located 0.5km northwest of the Diba license in western Mali.
Selected intersections include:
8.74g/t over 7m from 119m including 19.77g/t over 3m (21KSRC-147);
4.76g/t over 12m from 102m including 6.22g/t over 9m (21KSRC-143);
2.25g/t over 8m from 56m including 3.99g/t over 4m (21KSRC-135).
These high grade intersections indicate the presence of potentially enriched zones, or sub vertical mineralised structures, at Diba NW that will be followed up with more drilling.
The 10,000m programme comprising RC and DD holes is focused on infill drilling at Diba, as well as step out exploration testing down-dip and along-strike extensions at Diba and Diba NW.
Capital Drilling contracted to carry the programme completed 5,400RC and ~1,400m of DD drilling to date.
Drilling is also planned at the Company’s 100% owned Lakanfla license, located ~5km east of the Diba license.
On completion of the programme, the team will update the Diba MRE and potentially prepare maiden MRE for DIba NW and Lakanfla Central prospects.
This will be followed by an update of the Diba PEA.
Latest PEA Update released in Nov/20 envisaged a $20m heap leaching operation running at 57kozpa over +3y LOM and $544/oz AISC generating $140m in after tax NPV10% at $1,800/oz gold price.
Current Diba MRE stands at ~400koz at 1.22koz in total resource (~220koz oxide and ~190koz sulphide) with ~220koz at 1.39g/t in the Indicated category.
*SP Angel acts as nomad and broker to Altus Strategies
Anglo American (Anglo American PLC (LSE:AAL)) 3,399p, Mkt Cap £45.7bn – Q4 2021 production report and 2022 guidance
Anglo American reports that it is continuing to achieve 95% operating levels at most of its operations and that Q4 production is in line with that achieved in Q4 2020.
Chief Executive, Mark Cutifani, said that at the new copper mine at Quellaveco in Peru “we are pleased with the construction progress… [and are] … are on track and within budget, we mined our first ore in October 2021, and we are expecting our first production of copper concentrate in the middle of this year. In the first quartile of the cost curve, we expect Quellaveco to produce 120,000-160,000 tonnes of copper production in 2022 and to average 300,000 tonnes per year for the first ten years at full production”.
Mr. Cutifani said that “Production in the fourth quarter benefited from higher rough diamond production at De Beers, a return to pre-Covid production levels at our open cut metallurgical coal mines and improved mining performance at Amandelbult which resulted in higher metal in concentrate production from our PGMs business … [while] … Collahuasi's … [copper] … production increased as a result of strong plant performance and planned maintenance in the comparable period of 2020.”
Strong performance from the Jwaneng mine in Botswana where higher grade ore was processd, as planne, as well as from the Namibian operations led to production of 7.7m carats of diamonds during the quarter and resulted in a 29% increase in annual production to 23.3m carats in 2021 (2020 – 25.1m carats).
The company says that “Demand for rough diamonds remained robust, with positive midstream sentiment and strong demand for diamond jewellery continuing over the holiday period, particularly in the key US consumer market” resulting in an average 10% rise in prices to US$146/ carat for the full year.
Anglo American is guiding for 2022 diamond production in the range 30-33m carats.
Platinum operations “more than doubled refined production in the quarter, and resulted in a record full year refined production of 5.1Moz” aided by a strong final quarter at Amandelbult where there was “improved mining performance and increased stability at the concentrator”.
Unki Platinum also performed well with the Group’s overall platinum performance slightly offset by the performance of “Mogalakwena and Mototolo, where lower grades were the primary drivers for the production decreases of 2% and 18% respectively” during the quarter.
Anglo American’s platinum production guidance for 2022 is in the range “4.1-4.5 million ounces” with refined production of between “4.2-4.6 million ounces, subject to the potential impact of Eskom load-shedding” and the impact of further Covid19 related disruption.
“Metallurgical coal production increased by 5%, reflecting an increase in production at the Dawson open cut operation, partially offset by Moranbah which continues to be affected by areas of challenging geology” bringing output for 2021 to 14.9mt (2020 – 16.8mt) and the company expects 2022 output of 20-22mt, subject to “regulatory approval to restart the Grosvenor longwall mining operations” and any further impact from Covid19.
Anglo American confirms the completion of its withdrawal from thermal coal with the sale of its 33% stake in Cerrejon in January.
Copper production of 161,000t during the quarter brought 2021 output to 647,000t (2020 647,000t) despite continuing water supply challenges as a result of the continuing Chilean drought.
The company says that “While production impacts during 2021 have been mitigated by the successful implementation of water management initiatives, record low levels of precipitation during the year have reduced water availability for Los Bronces in the first half of 2022 and have been factored into production guidance” which lies in the range 680-760,000t with 560-600,000t from Chile and 120-160,000t from Peru.
Iron ore production for 2021 from Kumba increased by 9% to 40.9mt while at Minas Rio output declined by 5% to 22.9mt “due to lower plant availability, impacted by unplanned maintenance and heavy rainfall experienced during the quarter”.
Anglo American says that Kumba’s production “was limited by higher stock levels at the mines as a result of the third party rail performing below planned levels earlier in the year, as well as the impact of the Q4 annual shut-down for rail and port maintenance”.
Guidance for iron ore output for 2022 is in the range 63-67mt with 39-41mt from Kumba and 24-26mt from Minas Rio.
Exploration “expenditure increased by 47% to $47 million driven, by increased activity in copper, nickel, PGMs and iron ore … [while] Evaluation expenditure increased by 12% to $55 million, with increased spend in PGMs and metallurgical coal”.
Conclusion: Anglo American’s operations are mostly operating at around 95% capacity as they recover from the constraints of Covid19. The Chilean copper operations continue to experience record drought conditions but the new Quellaveco copper mine in Peru is expected to produce its first concentrate in the middle of this year with output of between 120-160,000t this year and an average 300,000t for its first ten years of operation. Exploration expenditure is focused on copper, iron-ore and PGMs while evaluation concentrates on PGMs and metallurgical coal.
Anglo American Platinum (JSE:AMS) – ZAR188,256, Mkt cap ZAR499bn – 2021 refined PGMs Output rose 89% last year
Amplats full-year refined production reached a new record last year, with highlights as follows:
Total platinum production for CY20 rose 13% to 1.76Moz
Total palladium production for CY20 rose 11% to 1.22Moz
Total PGMs production rose 13% to 4.30Moz
Refined PGM production rose 89% to a record 5.14Moz.
PGM sales volumes increased 82% to 5.21Moz.
Base metal production rose 52%, with nickel production up 61% to 22,300t and copper production up 41% to 14,600t.
Amplats provided a production guidance for metal-in-concentrate for 2022 of 4.1-4.5Moz.
Refined production guidance for 2022 is 4.2-4.6Moz, subject to the potential of disruption from state power supplier Eskom.
Anglo Asian Mining* (Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)) 108p, Mkt Cap £124m – Secured 20% stake in Libero for ~US$5m with exploration at Mocoa to start next month
Libero Copper & Gold (Libero Copper Corporation (TSX-V:LBC)) C$0.49, Mkt Cap C$23m
BUY
Anglo Asian Mining completed the second part of the equity investment in Libero Copper & Gold as per agreement announced in December 2021.
The Company acquired remaining 10% following regulatory approval from the TSX Venture Exchange taking its stake in Libero to 19.8%.
In total, the Company subscribed for 12.6m shares at 50c making a C$6.3m (US$4.9m) investment.
Every share has also half a warrant attached to it for a total number of 6.3m warrants with an exercise price of 75c.
As part of the strategic agreement, Michael Sununu has been appointed to the Libero Board and a technical committee with representatives from both companies to guide exploration strategy is being put together.
Raised funds will be primarily directed towards exploration at the Mocoa project in Colombia with a drilling contract for a minimum of 5,000m already signed with the programme expected to start in February.
Mocoa is a 100% owned porphyry copper-molybdenum project located in Putumayo, Colombia, in the structural porphyry belt running through Ecuador and Colombia and hosting Mirador and Waritza deposit.
Mocoa NI 43-101 mineral resource estimate currently stands at 636mt at 0.45% CuEq (0.33% Cu and 0.04% Mo) for 2.1mt copper and 0.2mt molybdenum (all Inferred, 0.25% CuEq COG, Oct/16).
*SP Angel act as Nomad and broker to Anglo Asian Mining
Aura Energy* (Aura Energy Ltd (ASX:AEE, AIM:AURA)) 15p, Mkt Cap £63m – Greenhouse gas emission study for Tiris
Aura Energy reports the completion of studies of the Total Greenhouse Gas (GHG) emissions arising from its Tiris uranium project in Mauritania.
The study concludes that baseline GSG emissions from Tiris “were calculated at 16,600 tCO2e per annum, representing approximately 0.15% of the total GHG emissions of Mauritania”.
The company says that the study, by Wood, described as “a global leader in consulting and engineering across energy and the built environment … defines a Net Zero Emission Pathway for the Tiris Uranium Project”.
Key elements of the ‘Pathway’ include
“Extended provision of renewable generation to meet the majority of power needs and reduce emissions associated with stationary combustion (Diesel generators)”;
“Further reductions via lower global warming potential (GWP) alternative refrigerants in buildings and vehicles”; leading to
“Residual emissions following these interventions are assessed as around potentially 30% of the initial baseline”; and the company says that:
“Discussions with the Government of Mauritania, SOMELEC and UN partners … [will] … focus on potential direct investment in national projects to offset residual emissions”.
Aura Energy says that its GHG measures will include both solar and wind energy generation as well as replacing refrigerants in air conditioning and undertakes to “continue to explore these optimisations through development of the Tiris Project”.
Welcoming the completion of “the first phase of the Net Zero Emissions Study”, Acting CEO, Dr. Will Goddard, confirmed that “Aura is highly committed to meeting Environmental, Social and Governance (ESG) practices to reduce carbon emissions at Tiris, but also in delivering positive and lasting societal impacts in Mauritania”.
He also said that, acting with the strong support of the Government of Mauritania, “Aura continues to advance towards net zero emission uranium production at Tiris”.
Conclusion: Aura Energy has laid out its route to achieving zero emissions at the Tiris uranium project which is expected to contribute only 0.15% of Mauritania’s total greenhouse gas emissions while stimulating the country’s economic and social development and supplying the expanding global demand for uranium to generate low emission nuclear power.
*SP Angel acts as Nomad and Broker to Aura Energy
Bluejay Mining* (BlueJay Mining PLC (AIM:JAY, OTCQB:BLLYF)) 8.64p, Mkt cap £84m – Eric Sondergaard appointed to Bluejay board
(Bluejay holds 100% of the Enonkoski licenses with a US$20m exploration JV agreement with RIO on the Enonkoski Ni-Cu-Co project)
Bluejay Mining report the appointment of Eric Sondergaard to the board.
Eric is the Chief Operating Officer of Bluejay and Managing Director of the 100% owned Disko Exploration subsidiary which will start work at Disko this year in partnership with KoBold Metals.
Sondergaard has worked with the company and its projects since 2016.
KoBold are believed to be working out work programmes for the 2022 field season with more detail on this in the near term.
The company is backed by Breakthrough Energy Ventures which is in turn backed by Bill Gates, Jeff Bezos, Michael Bloomberg and Ray Dalio. Kobold also has a working with and also has an exploration partnership with BHP looking for mineral deposits in Western Australia.
“Eric is a graduate of the University of Calgary in Canada with 15 years' experience in Greenland and Arctic environments. Eric has served as a primary regulatory contact with the Mineral Licensing and Safety Authority for many years and has successfully negotiated key terms of exploration and exploitation license at Dundas, Kangerluarsuk and Thunderstone. Eric also has broad oilfield logistics experience..”
"Eric has been instrumental in consolidating Bluejays' position in Greenland over the last six years and leads engagement with most Greenlandic regulators. Eric's focus will be on the development of the Dundas Project and at Disko, as we move towards more active work programmes in the future. I have no doubt that his expertise and knowledge will ensure success on our other major metal projects as we continue to push Dundas towards production and we welcome him to the Board."
Conclusion: Eric has more than 15 years' experience in Greenland and Arctic environments, has served as the primary regulatory contact with the Mineral Licensing and Safety Authority successfully negotiating key terms on both exploration and exploitation licenses at Dundas, Disko, Kangerluarsuk and Thunderstone.
We see Eric’s appointment to the board as a positive step forward for the company as it prepares for work at Disko during 2022 and continues to progress ilmenite production at Dundas and in the definition of new resources in the company’s joint venture with Rio Tinto in Finland.
*SP Angel act as nomad and broker to Bushveld
Conroy Gold & Natural Resources (Conroy Gold and Natural Resources PLC (AIM:CGNR, OTC:CGDNF)) 27.25p, Mkt Cap £9.9m – Licence transfers to the Demir joint-venture approved
Conroy Gold has confirmed that regulatory authorities in both Norther Ireland and the Irish Republic have approved the transfer of licences to the joint venture companies established to implement its agreement with Demir Export which was signed earlier this month.
Demir Export is described as “a long established mining company with interests in iron, coal, gold and base metals, including zinc and copper, in Turkey”.
An announcement issued last November clarifies that Demir will earn an initial 25% interest in the joint-venture companies by spending an initial €5.5m during Phase 1. A further €4.5m of expenditure during Phase 2 will earn an additional 15% interest while Phase 3 expenditure sufficient to “reach Construction Ready Status will earn an additional 17.5% interest in the JV Company which has reached Construction Ready Status in respect of any Licence thus increasing Demir Export’s holding to a total of 57.5% in that JV Company”.
Conroy Gold and Natural Resources’ Chairman, Prof. Richard Conroy expressed satisfaction the licence transfers had been approved and said that “This is a major step forward in implementing the joint venture and I am especially pleased that in both jurisdictions regulatory consent was granted expeditiously … [and said that he and his]… colleagues … look forward very much to working with the Demir Export team on Project Inis, and building a long term, successful relationship.”
Prof. Conroy also said that “Demir Export has the mining expertise and the financial resources not only to bring the Clontibret gold deposit to construction ready status and into operation as a mine, but also to advance the significant gold potential of the other licences along the gold trend to the same status”.
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Analysts
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Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484
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Sales
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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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