SP Angel . Morning View . Wednesday 02 02 22
Eurozone inflation hits new record as Putin cuts ammonium nitrate exports
Copper prices continue to rise
MiFID II exempt information – see disclaimer below
PRIVATE FUNDING – We are raising funds for a Rare Earth Phosphate deposit in the US 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).
Please let us know if you wish to take part in this funding
*SP Angel’s role is limited to making introductions and interested parties should be aware that investment in a private company can present certain risks not present in listed companies (e.g. limited or no liquidity and no rules compelling disclosure of information to investors). This offer is open to professional investors only and is not offered to retail investors.
Anglo American (Anglo American PLC (LSE:AAL) LN) – De Beers reports robust demand for rough diamonds as buyers replenish post-holiday inventories
Bluejay Mining* (BlueJay Mining PLC (AIM:JAY, OTCQB:BLLYF)) – Disko-Nuussuaq video podcast
Glencore (Glencore PLC (LSE:GLEN)) – Glencore 2021 production largely in line with guidance despite Covid19
Petra Diamonds (Petra Diamonds Limited (LSE:PDL, OTC:PDLMF)) – Improved banking terms
Rio Tinto (Rio Tinto PLC (LSE:RIO)) – Ranger Mine Rehabilitation plan
Sandfire Resources (Sandfire Resources NL (ASX:SFR)) – Completion of US$1.86bn Spanish acquisition
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.
Expect unprecedented M&A activity in junior mining as major miners struggle to meet needs of western auto battery manufacturers
It is a privilege to witness the chaotic scramble for mineral assets that is upon us.
The EU published its first list on Critical raw materials in 2011 – with virtually no reaction from the mining industry and very little from Auto manufacturers.
Only a few brave entrepreneurs had the foresight to put their money and balls on the line in the search for the critical battery materials
It is five years since VW called for cobalt in 2017– which like a British song at Eurovision resulted in Nul Point for VW and no cobalt either.
Rio Tinto thought they were ok with the world’s greatest lithium project at Jadar in Serbia, but someone forgot about some ESG issues and they got kicked out.
Rios even have a piece of Jadarite rock in the reception of their London HQ, but just the one rock really won’t do.
BHP have pledged $100m for a nickel project in Tanzania, a country BHP would not have previously touched with one of Rolf Harris’ didgeridoos before they woke up to the need for more nickel for NMC batteries.
So, why should the major mining companies bother to invest in battery metals and why would investors in these companies divert management focus away from iron ore?
When the party ends in iron ore the majors risk being replaced by a new breed of entrepreneurial companies which have grown to feed the battery metals revolution.
Qatar – upgrades to major non-NATO ally of the US giving the nation greater access to US technology and military training
Qatar is also a major supplier of LNG
Gazprom’s natural gas exports fell 43% in January yoy and that’s nothing to do with the weather.
Putin bans ammonium nitrate exports as Belarus diverts potash to Russia
Russia has banned ammonium nitrate exports for two months from today. (TASS)
The ban will lift on April 2nd, when the ‘needs in the domestic market are at their peak.’ (Cabinet press office)
The Russian Ministry of Industry and Trade does not expect the annual export volumes to be impacted, with 370kt of the 744kt already exported.
Global production of Ammonium nitrate is around 22mt mainly for fertilizer with explosives as its second largest consumer
Global food prices are currently at 10-year peaks and further geopolitical-related sanctions on key fertilizer products are expected to exacerbate current inflationary pressures
Questions: Is Putin preserving stocks of ammonium nitrate within Russia for domestic consumption or is Putin denying Europe ammonium nitrate to add to already serious shortages.
Ammonium nitrate is used for fertilizers and explosives, laughing gas, herbicides, and insecticides, yeast and antibiotics. It is also used to cure meats and to prevent rancidity and growth of Clostridium botulinum spores in meat. Critically ammonium nitrate is used for nitrogen gasses used in beer barrels.
The mining industry uses industrial quantities of ammonium nitrate as explosives for blasting making the situation potentially disruptive for quarries and other miners in Europe.
Conclusion: We suspect the export ban is in relation to US and EU sanctions against Belarusian Potash exports
The move is interpreted as a further display of power from Putin in the face of NATO and the West’s threat of sanctions against Russia in the scenario of war.
Potash producers climb on risks to supply from Russia/Ukraine crisis compounded by earlier sanctions placed on Belarus fertilizer exports.
Belarus has diverted potash shipments from Lithuania’s Klaipeda port to Russia following US and EU sanctions on Belarussian potash.
Nutrien, the world’s largest potash miner, is considering boosting output by up to ~30% in coming years depending on the course of the standoff between Russia and the West.
Uralkali and Belarus Potash Company account for around one-third of global potash sales.
The Company could restart up to 4mt of idled annual capacity at its operations in Saskatchewan, Canada, if long term price outlook warrants.
“If these are short-lived events, we don’t want to spend all kinds of money staffing and opening up ground,” Nutrien said. “If this is going to be a longer-term problem for the market, we will absolutely do that.”
Brazil granular MOP prices surged to +$800/t over 2021 braking out of the previous $200-400/t range seen over the previous decade or so.
India mulls potash purchases from Belarus despite global sanctions
India is reportedly planning to buy 1m tonnes of potash from Belarus in the first such bilateral deal between the two countries after sanctions crippled sale, Reuters reports.
India has suggested that the state-run Belarus Potash Company (BPC) could open a rupee account with a state-run Indian bank for potash sales.
The U.S. blacklisted the BPC’s export arm, Belaruskali, and added BPC to its sanctions list as the West escalated punitive action against Belarus President Alexander Lukashenko.
India previously made rupee payments to Iran for crude oil after the U.S. imposed sanctions on Tehran.
India secures nearly all its potash through imports, and historically about one-fifth of the 4m to 5m tonnes it imports annually comes from Belarus.
Chile – Committee approve proposal in first instance to nationalise some mines
A proposal that opens the door to nationalising some of the biggest copper and lithium mines in the world was approved in the first instance by a committee as part of drafting a new constitution in Chile.
Tuesday’s 13 to 6 vote by members of an environmental committee is the first of several hurdles that the proposal would need to clear before becoming a reality.
The motion would require support from two-thirds of the full assembly to become part of the draft charter that will be put to referendum later this year.
The risk of mine nationalisation remains low, however the progress being made reflects local attitudes to multinational companies making huge profits from Chile’s copper reserves.
For nationalisation to be implemented, billions of dollars would be required to compensate private mining companies which would mean that spending on other social initiatives would remain low for some time.
Chilean copper production fell 1.9% last year to 5.68mt
Dow Jones Industrials +0.78% at 35,405
Nikkei 225 +1.68% at 27,534
HK Hang Seng CLOSED at 23,802
Shanghai Composite CLOSED at 3,361
Economics
Eurozone – European inflation unexpectedly accelerated to a record in January testing the ECB plan to scale back monetary stimulus slower than its counterparts in the US and the UK, Bloomberg writes.
While measures pulled back in Germany and France, an increase in energy costs pulled price growth higher across the 19-member currency block.
Excluding volatile energy costs, core inflation came in at 2.3%, down on 2.6% in December while still beating estimates for a1.9% reading.
CPI (%mom): 5.1 v 5.0 in December and 4.4 est.
CPI (%yoy): 0.3 v 0.4 in December and -0.4 est.
JP Morgan Global manufacturing composite 53.2 in January vs 54.3 in December
China - Official manufacturing PMI 50.1 in January vs 50.3 in December
Caixin China 49.1 in January vs 50.9 in December
Official Chinese nonmanufacturing PMI 51.1 in January 52.7 in December
composite 51.0 52.2 in December
Russia – The rouble is gaining back previous losses after President Putin suggested further talks could defuse tensions with Ukraine.
US and European officials reiterated they are open for a dialogue around location of missiles and troop movements but refused to offer Russia guarantees that Ukraine will not become a NATO member.
President Putin repeated his claims that it’s the US and NATO stoking security tensions over Ukraine while suggesting that further negotiations may help to ease the standoff, Bloomberg writes.
The rouble climbed nearly 1pp this morning and is up more than 5% from lows recorded in late January trading at 76.3 today.
US - Markit Manufacturing PMI 55.5 in January vs 57.7 in December
ISM Manufacturing PMI 57.6 in January vs 58.7 in December
US Jan Dallas Fed manufacturing index 2.0 in January vs 7.8 in December
Uni of Michigan consumer sentiment 67.2 in January vs 70.6 in December
Construction spending rose 0.2% in December vs 0.6% in November
Japan - Manufacturing PMI 55.4 in January vs 54.3 in December
Taiwan - Manufacturing PMI 55.1 in January vs 55.5 in December
EU - Manufacturing PMI 58.7 in January vs 58.0 in December
Germany - Manufacturing PMI 59.8 in January vs 57.4 in December
Preliminary Jan German unemployment 5.1% in January vs 5.2% in December
preliminary Jan CPI rose 0.4% in January vs 0.5% in December and 4.9% yoy in January vs 5.3% yoy in December
France - Manufacturing PMI 55.5 in January vs 55.6 in December
UK - Manufacturing PMI 57.3 in January vs 57.9 in December
India - Manufacturing PMI 54.0 in January vs 55.5 in December
Russia - Manufacturing PMI 51.8 in January vs 51.6 in December
Turkey - Manufacturing PMI 50.5 in January vs 52.1 in December
Poland - Manufacturing PMI 54.5 in January vs 56.1 in December
Brazil - Manufacturing PMI 47.8 in January vs 49.8 in December
Peru – Finance chief popular with investors steps down while Hector Valer is named as PM
Peru’s Finance Minister Pedro Francke quit on Tuesday following a cabinet overhaul by President Castillo.
Markets in Peru rallied in July when Francke was elected, as investors saw him as a defender of the nation’s current economic model.
Prime Minister Valer said on Tuesday that he supports amending the country's market-friendly constitution, although this expected to take about four years.
Castillo has said he wants to redraft the Constitution to prioritize public investments in health and education, as well as to ensure multinationals pay higher taxes.
Castillo also named Alessandra Herrera as minister of energy and mines.
Currencies
US$1.1285/eur vs 1.1254/eur yesterday. Yen 114.60/$ vs 115.00/$. SAr 15.219/$ vs 15.296/$. $1.354/gbp vs $1.347/gbp. 0.714/aud vs 0.709/aud. CNY 6.361/$ vs 6.361/$.
Commodity News
Australian government agrees $100m rare earth project deal in effort to boost non-Chinese supply
Australia has confirmed a $100m project financing agreement with Hastings Technology Metals for the Yangibana rare earths mine in WA.
Hastings is hoping to become Australia’s 2nd largest rare earth elements (REE) exporter with the Yangibana project requiring a $285m debt raise in total.
Exports are expected in 2.5 years and Hastings hopes to supply 8% of global neodymium and praseodymium demand.
Russian miners look to Siberia with $15bn worth of copper projects
Alisher Usmanov is pushing forward plans to inject $7bn of investment into the Udokan project.
The Siberian permafrost deposit is expected to go into production this year and reach annual production of 400kt by 2026. (FT)
Udokan will be one of the top 10 largest global copper producers according to Udokan Copper.
Kaz Minerals is hoping to invest $8.5bn into the Baimskaya project in a remote region of the Arctic tundra.
The mine is expected to hit 300kt copper production by 2027 and 500,000oz of gold pa over a decade.
Russia has the 3rd largest copper reserves globally and expects to hit 2mt of copper output pa by 2030.
Gold hovers around $1,800 level as dollar and yields weaken, traders wait for Fed decision
Gold has settled around the $1,800/oz following last week’s volatile 2% move.
St. Louis Fed President Bullard suggested that a 50bp rate rise might be too aggressive, causing the dollar and Treasury yields to weaken.
Bullard is considered a hawkish Fed president.
The dollar is nearing a 1-week low, supporting gold.
Analysts expect gold to trade with limited volatility before the mid-March Fed rate hike decision.
Copper climbs on positive factory data and weaker dollar
Copper climbed 2.2% to $9,719 despite thin trading volumes on the Lunar New Year.
The dollar’s weakness from its 19-month high has supported the metal.
Expanding factory data in Europe, Japan and the US has also provided a tailwind to copper.
Import premiums in China have softened, with traders expecting demand to weaken slightly in the short-term following
Nickel rallies on low stocks and strong demand
Nickel prices are up 2% to $22,770/t but remain off their $24,435/t highs last month.
LME warehouses are at 89,364t, significantly down from the 250kt last year.
Shanghai stocks are at 2,975, the lowest on record.
LME premiums for cash nickel are at their highest since 2009, suggesting a significantly tight market.
Precious metals:
Gold US$1,797/oz vs US$1,802/oz yesterday
Gold ETFs 99.3moz vs US$99.2moz yesterday
Platinum US$1,030/oz vs US$1,038/oz yesterday
Palladium US$2,373/oz vs US$2,379/oz yesterday
Silver US$22.68/oz vs US$22.58/oz yesterday
Rhodium US$16,850/oz vs US$16,850/oz yesterday
Base metals:
Copper US$ 9,779/t vs US$9,623/t yesterday
Aluminium US$ 3,049/t vs US$3,039/t yesterday
Nickel US$ 22,745/t vs US$22,520/t yesterday
Zinc US$ 3,597/t vs US$3,612/t yesterday
Lead US$ 2,232/t vs US$2,248/t yesterday
Tin US$ 42,260/t vs US$42,960/t yesterday
Energy:
Oil US$89.2/bbl vs US$89.3/bbl yesterday
Natural Gas US$4.945/mmbtu vs US$4.877/mmbtu yesterday
Uranium UXC US$43.90/lb vs $44.00/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$137.8/t vs US$137.1/t
Chinese steel rebar 25mm US$751.3/t vs US$751.3/t
Thermal coal (1st year forward cif ARA) US$113.0/t vs US$117.0/t
Thermal coal swap Australia FOB US$196.0/t vs US$198.5/t
Coking coal swap Australia FOB US$408.0/t vs US$438.0/t
Other:
Cobalt LME 3m US$71,000/t vs US$71,000/t
NdPr Rare Earth Oxide (China) US$150,129/t vs US$150,129/t
Lithium carbonate 99% (China) US$56,986/t vs US$56,986/t
China Spodumene Li2O 5%min CIF US$2,710/t vs US$2,710/t
Ferro-Manganese European Mn78% min US$1,800/t vs US$1,795/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$9.7/lb
Europe Ferro-Vanadium 80% 39.25/kg vs US$39.25/kg
China Ilmenite Concentrate TiO2 US$391/t vs US$391/t
Spot CO2 Emissions EUA Price US$100.2/t vs US$99.9/t
Brazil Potash CFR Granular Spot US$805/t vs US$805/t
Battery News
It will take 30 years and US$145bn pa to decarbonise the steel industry raising prices by 30% according to The Economist.
Self-charging hybrids outsell diesel cars in Europe
Self-charging hybrid vehicles outsold diesel cars in Europe over 2021 – albeit by 48 vehicles.
Figures from the European Automobile Manufacturers’ Association data from 2021 show:
1,901,239m self-charging hybrid cars were registered in the EU, up from 1.1m in 2020.
Diesel registrations fell by a third from 2.77m in 2020 to 1,901,191.
Just under 880,000 BEVs were sold, one in 11 cars.
Petrol vehicles still accounted for 40% of sales, down from 48% in 2020.
New government subsidies for low- or zero-emission vehicles that took effect as part of pandemic recovery programmes accelerated adoption of hybrid and BEV sales.
In 2021, EU BEV sales grew by 63.1% to nearly 878,500 cars, while plug-in hybrid sales grew 70.7% to nearly 867,100.
General Motors to prioritise faster EV rollout over profit growth
General Motors has said it will spend more than the $35bn it had previously planned through 2025 to speed up launches of new electric vehicles.
The auto manufacturer noted that investments in technology will take priority over richer profits next year.
GM CEO, Mary Barra said GM will announce the site for a fourth electric vehicle battery plant by the end of June and will invest in a third electric truck assembly plant.
This year and next, Barra said GM plans to deliver 400,000 EVs in North America and plans 20 electric models in North America and 30 globally by 2025.
GM will launch a $30,000 electric Chevrolet Equinox next year and is working on another, lower priced electric vehicle which they view as key to the company plans.
India looks to ramp up EV use with battery swapping policy
India’s finance minister has announced plans to boost sales of EVs with a battery swapping policy.
The Indian government is hoping to reduce carbon emissions by 35% by 2030.
India’s urban space constraints will force them to seek alternatives to charging stations, with battery swapping the most obvious solution.
Drivers replace depleted battery blocks at designated stations with freshly charged ones.
$6bn in incentives for companies was announced by the Indian government for battery and EV production
The government hopes 30% of car sales will be EVs by 2030 and 40% of scooters and motorcycles.
Company News
Anglo American (Anglo American PLC (LSE:AAL)) 3,354p, Mkt Cap £44.6bn – De Beers reports robust demand for rough diamonds as buyers replenish post-holiday inventories
Anglo American has reported that the first De Beers sales cycle of 2022 realised US$660m on a provisional basis and that the previously reported sales for the tenth sales cycle of 2021 have now been confirmed as US$336m.
The latest provisional sales figures are in line with the US$663m reported for the first sales cycle of 2021.
Commenting on the sales figures De Beers Chief Executive, Bruce Cleaver, explained that “As anticipated, there was strong growth in consumer demand for diamond jewellery over the end of year holiday season. As a result, we saw the continuation of robust rough diamond demand in the first sales Cycle of the year as buyers focus on restocking depleted inventories”.
Bluejay Mining* (BlueJay Mining PLC (AIM:JAY, OTCQB:BLLYF)) 8.60p, Mkt cap £84m – Disko-Nuussuaq video podcast
(KoBold Metals can earn up to 51% in the Bluejay’s Disko project in Greenland allowing Bluejay to maintain its 49% stake through proportionate funding after Kobold have spent US$14.5m.)
Bluejay Mining issued a video podcast yesterday describing the significant of the geology of the Disko-Nuussuaq license area in Greenland.
Much work has been done on the Disko-Nuussuaq licenses in previous years by Falconbridge, Cominco and Bluejay but with limited drilling to date.
The team at Kobold Metals have been putting this all together in order to identify where high grade surface samples might have come from and to target the best areas for drilling.
https://bluejaymining.com/projects/greenland/disco-nuussuaq/.
Kobold has substantial funding and backing from Silicon Valley entrepreneurs and is also working in partnership with BHP on the identification of copper and nickel within a 500,000 sq km of Western Australia.
*SP Angel act Nomad and broker to Bluejay. The analyst holds shares in Bluejay Mining.
Glencore (Glencore PLC (LSE:GLEN)) 397.65p, Mkt cap £52bn – Glencore 2021 production largely in line with guidance despite Covid19
Reporting on its production performance for 2021, Glencore describes operations performing largely “in line with guidance expectations”.
Lower copper production of 1.20mt of copper during the year (2020 – 1.26mt) is attributed to “the Mopani disposal (23,800 tonnes), expected lower copper grades at Antapaccay (14,800 tonnes) and lower copper by-products from our mature zinc and nickel mines (26,600 tonnes)”.
Glencore also reports the completion, in January 2022, of the Ernest Henry copper mine and issues 2022 copper production guidance in the range 1.15mt ±30,000t.
Cobalt output from the company’s own operations during the year rose by 14% to 31,300t “due to the limited restart of production at Mutanda in 2021” and Glencore expects 2022 output to increase further in 2022 to 48,000t ± 3,000t.
Glencore’s zinc output was 4% lower at approximately 1.12mt (2020 – 1.18mt) reflecting:
“the expected decline of Maleevsky mine in Kazakhstan, being lagged by the slower than expected ramp-up of replacement Zhairem mine tonnage (19,600 tonnes);
Mount Isa producing additional metal from ore stockpile drawdowns in the base period (24,400 tonnes); and
Kidd lower grades (13,800 tonne;
offset by stronger zinc production at Antamina, which was suspended for part of 2020 due to Covid restrictions”
Guidance for 2022 zinc output is 1.11mt ±30,000t.
Nickel output dropped by 7% to 102,000 (2020 – 110,000t) but is expected to recover during 2022 to 115,000t ±5,000t. Lower output in 2021 is attributed to “the lengthy scheduled statutory shutdown and maintenance issues at Murrin Murrin earlier in the year”.
Strong operating performance and easing of government measures to contain Covid19’s spread in South Africa during 2020 say ferrochrome output increase by 439,000t or 43% to 1.468mt.
Glencore’s 2020 guidance indicates production of 1.46mt of ferrochrome ±30,000t.
Care and maintenance at Prodeco and “lower domestic power demand / export rail capacity constraints in South Africa, offset by higher production at Cerrejón” resulted in a 2.9mt (3%) decline in coal output to 103.3mt.
Glencore expects 2022 coal output of around 121mt ±5mt.
Glencore’s CEO, Gary Nagle, said that “Maintaining production in 2021 became increasingly important as many of our products, so crucial for decarbonisation, energy supply and industrial output, saw higher levels of demand”.
Petra Diamonds (Petra Diamonds Limited (LSE:PDL, OTC:PDLMF)) 84.5p, Mkt Cap £164m – Improved banking terms
Petra Diamonds reports that it has agreed improved terms with its South African lenders.
The new arrangements which are “subject to completion of appropriate definitive agreements, expected to be finalised during Q3 FY 2022 … [are said to reflect] … an improved Group balance sheet and financial profile, supported by a quicker than expected diamond price recovery and the continued recovery of exceptional diamonds”.
The scale of the banking Revolving Credit Facility (RCF) has been increased to R1bm (formerly R408.8m) and the duration extended from 3 years to 4 years ending in December 2025.
The margin has been reduced to the JIBAR rate plus 415bps (formerly JIBAR plus 525 bps) and the margin will be “reconsidered annually based on Petra’s credit metrics with a view of further optimising the margin to be achieved” while the commitment fee has also been reduced to 125bps per annum from the previous level of 210bps annually.
Net Debt/EBITDA and Interest Cover Ratio covenants have also been redefined with progressively more favourable ratios available over the life of the agreement
Chief Executive, Richard Duffy, said that “The significant improvement in our facility reflects our stronger cashflow generation and improved balance sheet resulting from a robust diamond market and solid operational performance.”
Rio Tinto (Rio Tinto PLC (LSE:RIO)) – 5,433p, Mkt cap £67bn – Ranger Mine Rehabilitation plan
Rio Tinto reports that it is reviewing the findings of 86% owned Energy Resources Australia’s (ERA’s) rehabilitation plan for the Ranger uranium mine at Jabiru in Australia’s Northern Territory.
In the final quarter last year, “ERA forecast cost and schedule overruns for the Ranger rehabilitation project” which involves backfilling the former open-pit mines with waste rock and de-watered mine tailings and removing the plant buildings in order to reforest and reprofile the area.
Rio Tinto confirms that “it is committed to working with the company to ensure the rehabilitation of the Ranger Project Area is successfully achieved to a standard that will establish an environment similar to the adjacent Kakadu National Park”.
Sandfire Resources (Sandfire Resources NL (ASX:SFR)) A$6.8, Mkt Cap A$2.8bn – Completion of US$1.86bn Spanish acquisition
Sandfire Resources has completed the US$1.86bn acquisition of the MATSA Mining Complex in Spain.
MATSA is a large-scale underground copper operation located in the Iberian Pyrite Belt of Spain.
The project hosts three underground mining operations which feed into a 4.7mtpa central processing facility.
The takeover was funded through existing cash reserves, last year’s $1.3bn capital raise, and a $1.1bn debt facility.
MATSA is an established low-cost producer of 100-120kt CuEq per annum.
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
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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
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SSY
RRE
Steelhome
Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite
Asian Metal