SP Angel . Morning View . Tuesday 08 03 22
Risk of global stagflation rises as Ukraine war rolls on
MiFID II exempt information – see disclaimer below
Aura Energy Ltd (ASX:AEE, AIM:AURA)* – Interim results highlight corporate reorganisation and the Tiris uranium project
Orosur Mining Inc (AIM:OMI, TSX-V:OMI)* – Latest drill results underpin substantial exploration potential of project
Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR) – Drilling commences at Armada Metals’ Nyanga Ni-Cu project
Rockfire Resources PLC (LSE:ROCK) – Awarded Greek zinc project in an international tender
Sunrise Resources PLC (AIM:SRES) – Seeking a new partner to develop the CS Pozzolan Perlite project
Nickel soars to $101,000/t on short squeeze as Chinese firms takes hit
- Nickel, having soared 66% on Monday, climbed an additional 111% to $101,365/t today.
- The LME has suspended trading in Nickel at $80,000/t.and is considering ‘a possible multi-day closure’ amid the unprecedented price action.
- Short covering has sent prices to around two times the previous all-time high as margin calls force the closure of positions hitting a number of major Chinese banks and their clients hard.
- Xiang Guangda, known as ‘Big Shot’, is reported to have taken a significant short position through his company Tsingshan, China’s largest nickel and stainless-steel producer with a potential $5bn hit.
- Reports from February suggested a single mystery stockpiler had amassed over 50% of all LME nickel inventories representing around 43,000t worth around $3.7bn at $85,000/t. (Bloomberg)
- Markets were already tight before Russia’s invasion of Ukraine, with forecasts of a 100,000t deficit in 2022.
- Russia produces 17% of battery-grade nickel and 7% of total global nickel supply.
Gold holds >$2,003/oz as investors move funds to safety
- Gold has now extended gains for 11 out of 15 recent sessions.
- The metal rallied in 2020 to similar levels as investors’ concerns grew over Covid-19 implications and unprecedented levels of government stimulus.
- Expectations of a US ban on Russian oil is adding fuel to the inflationary fire as Powell and the Federal Reserve contemplate this month’s first interest rate hike.
- US 10-year Treasury yields have slid from 2% on the eve of Putin’s invasion to 1.85% now, supporting gold prices.
- Physical supply has also been limited, with the London Bullion Market Association suspending trade with Russian refineries, cutting off access of Russian gold bars to the market.
Chile – Chile edges closer to nationalising copper and lithium mines
- Chilean lawmakers in charge of writing the country’s new Constitution have gained approval for their early-stage proposal in the constituent assembly.
- The proposal raises the potential to nationalise the country’s copper and lithium mines.
- 13 members of the environmental committee approved it, 3 voted against and 3 abstained.
- The proposal will need approval from 2/3rds of the full constituent assembly.
- Chile’s new constitution will also be put to a national referendum this year; however, the public is expected to support nationalisation amendments.
- The proposal has been described as ‘barbaric’, ‘with clear and obvious legal errors’, by the president of the National Mining Society.
London PGM market refuses to block access to Russian palladium
- The London Platinum and Palladium Market has decided not to revoke the accreditation of Russian refineries, allowing them to continue supply precious metals into London.
- There are currently two Russian refineries with accreditation to mint platinum and palladium for the London market.
- Palladium prices hit an all-time high on Monday morning on concerns that exports from top producer Russia could be restricted as part of sanctions.
- Russia accounts for 40% of all mined production of palladium (mainly Norilsk), with most of the metal being used in catalytic converters in gasoline-powered vehicles.
- Palladium is almost always exported on air freight, with the closing of Russian airspace severely disrupting supply lines.
Boeing halts titanium imports from Russia but claims has ‘sufficient supply’
- Boeing has halted titanium trade with Russian firm VSMPO-Avisma.
- The planemaker claims its ‘inventory and diversity of titanium sources provide sufficient supply for airplane production’, having taken diversification measures following the annexation of Crimea in 2014.
- Airbus SE is continuing to source titanium from Russia ‘in accordance with all sanctions and applicable export control regulations in place’.
Dow Jones Industrials - -2.37% at 32,817
Nikkei 225 - -1.71% at 24,791
HK Hang Seng - -1.50% at 20,741
Shanghai Composite -2.35% at 3,294
Economics
Wheat prices climbed to intraday record in the US on fears over supply shortages and climbing costs of fuel and fertilizers.
- Prices hit a high of >$13 per bushel as the ongoing war between Russia and Ukraine shut more than a quarter of global wheat exports.
- Prices were up 70% year to date.
- Russia and Ukraine account for ~14% of global wheat production.
China - Major Shanghai property developer sees sales slide 62% as sector continues to suffer
- Chinese developer Shimao Holdings saw contracted sales slide 62% to $158m in February yoy.
- Shimao is facing debt obligations on $1.58bn worth of asset-backed securities.
- The developer provides a recent example of the impact of Beijing’s leverage intervention on the Chinese property sector.
- Logan Group, an alternative Chinese developer, has had its credit rating downgraded by Moody’s owing to insufficient liquidity at the firm.
- Shenzhen Logan, a subsidiary, is facing $840m worth of debt repayments this month.
The EU is considering a large joint bond issue to fund energy and defence spending to address risks from Russia’s invasion of Ukraine, Bloomberg reports.
- The proposal may be presented after the EU’s leaders meet in France later in the week (March 10-11).
- Officials work on details over the amount of the potential offer.
- The spread between 10y Italian and German sovereign bond yield, a key measure of risk in the euro region, tightened while both US equity index futures and European equity benchmarks climbed this morning.
- Eurozone Employment (Q/Q) Q4 F: 0.5% (prev 0.5%)
- - Eurozone Employment (Y/Y) Q4 F: 2.2% (prev 2.1%).
Japan – Current account posts the biggest deficit in eight years in January on the back of surging import costs of crude oil, coal and LNG.
- With crude oil prices nearly 50% higher than they were in January the economy is expected to struggle with risks of going back into recession rising.
UK – The economy is risking a recession in H2/22 should energy prices remain at elevated levels, according to the National Institute of Economic and Social Research.
- The UK GDP may fall 0.2%qoq and 0.1%qoq in Q3 and Q4 this year in case oil sticks above US$120/bbl and there is a lasting 70% upward shock to natural gas prices.
Moscow threatens to cut off gas into Europe after heads of state threaten to stop buying gas from Russia
- We advise anyone with gas fired heating systems to turn down their heating by a few degrees to conserve the gas we have left in our pipelines.
- Thankfully warmer weather is coming but in the meantime, we recommend a BUY on woolly jumpers.
- Unfortunately, many European smelters and chemicals companies remain dependent on imported oil and gas.
- INEOS in the UK takes much of its feedstock oil and gas from the North Sea and will be hedged on anything it doesn’t produce.
- We expect industrial consumers to be hedged for a period, though some hedged may be about to expire if they were not rolled over in the past six months since gas prices started to rise.
- We recommend the instillation of ground source heat pumps wherever possible though the disruption caused by the instillation of the boreholes or horizontal piping is considerable.
Turning down the dial by 1C in Europe saves ~10bcm vs total European gas imports from Russia of ~100bcm
- The UK imports around 3-4% of its gas from the European pipeline.
- If we turn down our heating in the UK by 1C we should save around ~1bcm in the UK which should be sufficient to negate the requirement of gas from continental Europe.
- However, the UK remains dependent on electricity from French nuclear power stations for now.
UK - Current power generation at 9:30 this morning: 41.9GW
- Gas 7.53GW (18%), Coal 1.85GW (4%), Imports 3.53GW (8%)
- Wind 16.35GW (39%), Biomass 2.27 (5%), Solar 2.71GW (6%), Hydro 0.59GW (1%), Imports 1.05GW (3%)
- Nuclear 5.85GW (14%)
- UK power generation over the last 48 hours: 1,213GWh
- Fossil Fuels 512.3GWh (42.5%)
- Renewables 504.9GWh (41.5%)
- Low Carbon 195.8GWh (16.5%)
Russia calls for return to 'peaceful co-existence' with US like during Cold War (Interfax)
China-Russia trade jumps in lead-up to Ukraine invasion
- Bilateral trade between Russia and China grew 36.5% to $26.4bn yoy over January and February.
- Shipments from Australia to China fell 2.3% and 0.2% from the EU.
- The jump in activity was the highest growth rate over the period since 2010.
- Chinese exports to Russia fell from a growth rate of 29% in December to 16.3% in Jan/Feb.
- China’s NDRC announced plans to ‘work with... Russia and Ukraine, to promote the high-quality development of the Belt and Road Initiative’ for ‘mutual learning and mutual benefit.’
- Analysts are concerned over China’s sliding export capacity owing to its role as a dominant driver in the country’s economy.
- Lower export growth is expected to further encourage looser fiscal stimulus from Beijing to maintain the 5.5% growth target.
Ukraine – The third round of Russian-Ukrainian negotiations ended on Monday evening with no breakthrough as the was continues for nearly two weeks now.
- The US intelligence reports Russia moved almost 100% of the forces that were positioned near Ukraine and were taking part in military drills before the invasion.
- “In the south, they continue to have some progress, but up in the north and north-east . . . they continue to get frustrated, they continue to rely now more on what we would call long-range fires,” Pentagon spokesman said.
- Russia is reported to have launched more than 625 missiles since the start of the invasion which would imply an increase in the daily rate of launches form Saturday compared with 20 launches a day at the end of last week.
- The number of refugees is now reported to be close to 1.7m people.
Currencies
US$1.0907/eur vs 1.0879/eur yesterday. Yen 115.43/$ vs 115.03/$. SAr 15.293/$ vs 15.344/$. $1.312/gbp vs $1.320/gbp. 0.729/aud vs 0.742/aud. CNY 6.315/$ vs 6.318/$.
Commodity News
Precious metals:
Gold US$2,003/oz vs US$1,991/oz yesterday
Gold ETFs 102.1moz vs US$101.6moz yesterday
Platinum US$1,142/oz vs US$1,149/oz yesterday
Palladium US$2,933/oz vs US$3,313/oz yesterday
Silver US$25.89/oz vs US$25.80/oz yesterday
Rhodium US$22,200/oz vs US$21,400/oz yesterday
Base metals:
Copper US$ 10,380/t vs US$10,784/t yesterday
Aluminium US$ 3,767/t vs US$4,041/t yesterday
Nickel US$ 80,000/t vs US$36,300/t yesterday
Zinc US$ 4,217/t vs US$4,195/t yesterday
Lead US$ 2,493/t vs US$2,496/t yesterday
Tin US$ 49,000/t vs US$48,450/t yesterday
Energy:
Oil US$125.3/bbl vs US$128.6/bbl yesterday
- The possibility that the US might ban Russian oil imports has triggered a surge in Brent crude to its highest level since 2008
- Russia is the world's top exporter of crude and oil products combined, at around 7MMbopd or 7% of global supply
- Such a ban would be unprecedented, fuelling already elevated prices and risking inflationary shock
- Prime Minister Boris Johnson said the UK Government plans to announce a new “energy supply strategy” in the coming days, saying that the UK needs to look at using more of its hydrocarbons
- Russian oil export flows, according to media reports, have now fallen by 3MMbopd this week (from 2.5MMbopd last week) because of Western sanctions, together with buyers reluctant to assume the risk in taking Russian cargoes.
- Prices have rallied c.30% since Russia invaded Ukraine on 24 February, and has led to another shock to global price pressures already at their highest levels in decades
- European Central Bank policy makers meeting later this week to discuss the ramifications on consumers
- Elsewhere, US oil inventories continued to decline
- Inventories at Cushing are at their lowest since 2018, while US strategic reserves dropped to a near 20-year low
- According to the latest report from the EIA, US energy consumption is forecast to grow set 5-30% by 2050 under a range of scenarios, with parallel growth forecast in domestic supply for both oil (for transportation) and natural gas (for LNG export)
- Renewables will be the fastest growing energy source, but still contributes a smaller share to US energy needs in 2050 than oil or gas, out with a significant change in policy
- US energy-related CO2 emissions are forecast to be stabilised over the next 15 years before emissions begin to trend upward as increasing energy consumption outpaces continuing reductions in energy intensity and CO2 intensity
Natural Gas US$4.706/mmbtu vs US$5.034/mmbtu yesterday
- The price of natural gas hit an all-time high yesterday, briefly touching €345/MWh
- That is equivalent to US$600/bbl
- Deputy Prime Minister Alexander Novak warned European leaders that Russia could “place an embargo on gas transit via Nord Stream 1” in retaliation for their calls to sanction Russian oil and gas
- Chancellor Olaf Scholz rejected talk of an embargo on Russian energy exports, saying that the supplies were of "essential importance" to the Europe’s economy, and that heating, transport and electricity could not be otherwise secured
Uranium UXC US$51.50/lb vs $51.25/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$162.0/t vs US$157.9/t
Chinese steel rebar 25mm US$792.7/t vs US$793.3/t
Thermal coal (1st year forward cif ARA) US$270.0/t vs US$270.0/t
Thermal coal swap Australia FOB US$440.0/t vs US$405.0/t
Coking coal swap Australia FOB US$420.0/t vs US$420.0/t
Other:
Cobalt LME 3m US$79,295/t vs US$78,000/t
NdPr Rare Earth Oxide (China) US$175,005/t vs US$174,900/t
Lithium carbonate 99% (China) US$74,041/t vs US$73,996/t
China Spodumene Li2O 5%min CIF US$2,730/t vs US$2,730/t
Ferro-Manganese European Mn78% min US$1,904/t vs US$1,899/t
China Tungsten APT 88.5% FOB US$335/t vs US$335/t
China Graphite Flake -194 FOB US$805/t vs US$805/t
Europe Vanadium Pentoxide 98% 12.0/lb vs US$12.0/lb
Europe Ferro-Vanadium 80% 51.25/kg vs US$51.25/kg
China Ilmenite Concentrate TiO2 US$400/t vs US$400/t
Spot CO2 Emissions EUA Price US$65.6/t vs US$71.9/t
Brazil Potash CFR Granular Spot US$820/t vs US$820/t
Battery News
Aston Martin to develop battery cell with Britishvolt
- British carmaker Aston Martin has signed a memorandum of understanding with lithium-ion battery cell technologies company Britishvolt to develop battery cell technology designed for high-performance cars.
- Aston Martin plans to launch its first BEV in 2025, which is expected to be a direct replacement of one of the automaker’s current sports cars.
- The automaker is also aiming to provide an electrified powertrain option to all new product lines by 2026, with a target of displaying a fully electrified core portfolio by 2030.
- A joint research and development team from will design, develop and industrialise battery packs, which will include bespoke modules and battery management systems.
State of Victoria to target 9GW of offshore wind by 2040
- The state of Victoria has released the Offshore Wind Policy Directions Paper which sets the target of the first offshore wind power in the state coming online by 2028.
- The plan includes developing projects that will generate at least 2GW of offshore wind by 2032, with targets of 4GW of offshore wind capacity by 2035 and 9GW by 2040.
- Victoria has some of the world’s best offshore wind resources, with the state’s coastal regions having the potential to support 13GW of capacity by 2050 – five times the current renewable generation in Victoria.
Researchers develop a graphene oxide aerogel foam to improve solid-state lithium batteries
- Researchers from China's Jiangsu University and Changzhou University have developed an electrolyte based on a graphene oxide (GO) aerogel framework filled with polyethylene oxide which could improve the safety of solid-state lithium batteries.
- Li-ion batteries currently perform a key role in electric cars, but contain combustible liquid electrolytic materials which may pose major safety issues.
- Solid-state electrolyte (SSE) can replace the standard organic liquid electrolyte and is predicted to address safety issues such as leaking, heat runaway, and even explosions during operation.
- The team discovered that graphene oxide aerogel has an excellent homogenizing ability for Li deposition, successfully minimizing battery short circuits produced by Li dendrites.
- The built LFP/GSPE/Li battery retained about 94% of its capacity following 100 cycles and could be operated continuously for over 450 hours.
Company News
Aura Energy Ltd (ASX:AEE, AIM:AURA)* 15.5p, Mkt Cap £67.9m – Interim results highlight corporate reorganisation and the Tiris uranium project
- In its interim report for the six months to 31st December 2021, Aura Energy reports a loss of A$0.62m (2020 – A$1.70m loss) and a 31st December cash balance of A$3.26m.
- The company says that during the period, “business activities were focused on recapitalisation of the Group and restructure of the board of directors and management to support the development phase for the Tiris Uranium Project”.
- As previously reported, Aura Energy highlights the progress on water resource drilling at Tiris with seven holes drilled, successfully demonstrating that there is “adequate water to support the 1.25Mtpa processing plant”.
- The company also highlights the “Re-pricing of Tiris DFS Capital Estimate to reflect inflation and supply chain pressure introduced by the COVID-19 pandemic was undertaken by MinCore Engineers. Resulted in an estimated 10% increase in CAPEX from US$67.8m to US$74.8m. The inflation was predominantly caused by increase in steel and equipment pricing” as well as the mineral resource work which has “allowed reclassification of some areas to inferred resource category, resulting in an increase in the global uranium resource at cut off grade of 100ppm U3O8 to a total resource of 56Mlb U3O8”.
- Elsewhere, Aura Energy discusses the geophysical work on its wholly-owned Tasiast South gold project in Mauritania where it has tested induced-polarisation “at 6 sites to test the effectiveness of the technique in detecting sulphides in this desert environment. Results were mixed with saline ground water being a potential problem in some but not all areas” and where “Auger drilling to test bedrock was carried out on the Nomads Joint Venture area, to provide the first subsurface testing in the large area of greenstones 35km along strike from the giant Tasiast goldmine.”
- During the six-months “Activities at the Häggån Battery Metals project … [in Sweden] … remained on care-and-maintenance”.
- The company has also announced that it will hold a briefing and webinar, hosted by Acting CEO, Will Goodall, at “11:30am AEDT / 8:30am AWST” [equivalent to 00:30am in London] on Thursday 10th March The webinar is accessible on https://zoom.us/webinar/register/8416461302992/WN_Cvrsp-0hRqCeP9H4Z6bdyg
*SP Angel acts as Nomad and Broker to Aura Energy
Orosur Mining Inc (AIM:OMI, TSX-V:OMI)* 12.4p, Mkt Cap £23m – Latest drill results underpin substantial exploration potential of project
- Orosur reports provides an exploration update for its Anza project in Columbia, including assays from four additional drill holes.
- Key intersections from the latest results are as follows:
- MAP-097 4.35m @ 1.63g/t Au, 2.00g/t Ag, 0.71% Zn from 263.7m
- MAP-098 6.06m @ 2.72g/t Au, 3.01g/t Ag, 0.74% Zn from 268.05m; 14.20m @ 1.84g/t Au, 3.57g/t Ag, 0.59% Zn from 315.2m; 8.36m @ 14.27 g/t Au, 49.92g/t Ag, 3.93% Zn from 524.25m
- MAP-100 59.15m @ 0.91g/t Au, 3.88g/t Ag, 0.39% Zn from 243.60m
- Holes MAP-097 and 098 were a pair of deep scissor holes drilled at APTA in order to assess geology at depth and examine the geological concept of the main mineralised horizons folding over as an anticline.
- Orosur believe these holes confirmed this hypothesis, and in addition, hole MAP-098 intersected a previously unknown, thick, high-grade structure (8.35m @ 14.27g/t Au, 49.92g/t Ag, 3.93%Zn), over 100m below any previous anomalous intersections, with an additional lower grade intersection over 100m further down again.
- More drilling will now be undertaken in this area in order to analyse this area of interest.
- MAP-099 was drilled to the west of APTA to define the local geology and assist in future work.
- MAP-100 provided greater geological context to previous high-grade results from previous drilling, while intersecting a very thick zone of lower grade mineralisation returning 59.15m @ 0.91g/t Au, 3.88g/t Ag, 0.39% Zn, which included higher grade zones of gold and base metals.
- Following a successful drill campaign, Orosur’s exploration team shifted focus to regional mapping and sampling to define high quality drill targets.
- Surface work has yielded highly anomalous results in the NE granted tenements at Pupino and Pepas, with multiple rock chip assays over extensive areas, returning results in excess of 1.5g/t Au.
- Sampling in the south at Guaimarala has identified a similarly extensive area of highly anomalous gold mineralisation at surface, while high-priority targets La Cejita and Jesuitas have also seen anomalous rock chip samples noted.
- Orosur is currently evaluating these targets for follow-up drill testing, with drilling to commence once the permitting process (land access and water use) has been completed.
*SP Angel acts as Nomad and Broker to Orosur Mining
Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR) 20p, Mkt Cap £30m – Drilling commences at Armada Metals’ Nyanga Ni-Cu project
- Metal Tiger reports that Armada Metals has announced the commencement of diamond drilling at the Nyanga Project in Gabon.
- Metal Tiger holds 15,000,000 Armada Shares, representing approximately 14.42% of Armada’s enlarged share capital, and 3,333,333 options over Armada Shares, exercisable at a price of A$0.334, which are valid for a 5-year period following Armada’s admission to the official list of the ASX.
- The Phase-1 diamond drill programme has commenced over Armada’s highest priority Ni-Cu targets along the Libonga-Matchiti Trend, and is expected to take up to three months to complete.
- The program is designed to test high-priority electromagnetic conductors, identified by Armada, positioned along the 25-kilometer-long prospective strike of the Libonga-Matchiti Trend.
- At Libonga North and Matchiti Central, a minimum of six holes are planned between 100m and 400m depth for a total of ~1,500m of drilling for each target.
- The Company has established fully operational fly-drill camps and additional drilling site platforms at a number of priority targets in advance of drilling.
Rockfire Resources PLC (LSE:ROCK) 0.41p, Mkt Cap £4.4m – Awarded Greek zinc project in an international tender
- Rockfire Resources reports that it has won an international tender for rights to “explore and mine” a zinc / lead /silver project in Greece.
- The Greek Government has previously drilled 173 cored boreholes over 1.5km of the Molaoi project area which, on mapping evidence, is believed to extend over a total strike length of 7km with mineralisation hosted in “Multiple, stacked, zinc-bearing layers”.
- The deposit was also investigated by “a portal and 700m-long decline … [into] … the western-most massive sulphide lodes. The exploration decline was developed to obtain bulk samples for metallurgical purposes”.
- Among the historic drilling intersections reported in today’s announcement are:
- An intersection of 10.4m at an average grade of 10.63% zinc, 1.45% lead and 62g/t silver from a depth of 79m in hole AN-011; and
- An intersection of 15.0m at an average grade of 11.94% zinc, 1.96% lead and 66g/t silver from a depth of 136m in hole AN-017; and
- Intersections, each of 7m at average grades of 14.96% zinc, 2.13% lead and 63g/t silver and of 19.17% zinc, 2.89% lead and 76g/t lead from depths of 187m in hole AN-0028 and from 43m depth in hole BO-10 respectively: and
- An intersection of 9.9m at an average grade of 18.06% zinc, 2.87% lead and 91g/t silver from a depth of 184m in hole BO-011; and
- An intersection of 2.8m at an average grade of 26.51% zinc, 1.87% lead and 80g/t silver from a depth of 57m in hole BG-013
- The company says that its’ priority is to deliver an initial, JORC (2012) compliant mineral resources estimate and it confirms that it “has sufficient funds available to prioritise a review of the historical drill core, submit a work programme, determine the feasibility of reopening the portal/decline, establish a community advisory committee, and the commencement of an environmental baseline study”. It is not clear whether funds are available for further drilling, however.
- Chairman, Gordon Hart, described Molaoi as “an outstanding high-grade zinc deposit … [which he said] … complements Rockfire's existing portfolio of precious and base metal assets”.
- Expressing confidence in the project to “deliver JORC compliant mineral resources… [he said that] … Molaoi has significant exploration upside for discovery in all directions and is also prospective for copper and gold, neither of which have been systematically analysed during historical drilling”.
- The company says that “Zinc mineralisation starts at surface and has been extensively drilled down to approx. 220 m, where 5.15 m @ 10.8% Zn, 3.8% Pb, & 37g/t Ag was encountered. Mineralisation remains open at depth … [and that] … No historical analysis for gold or copper has been undertaken and Rockfire believes potential may exist for additional metal credits”.
Conclusion: The reported grades in historic drilling at Molaoi, in conjunction with the mapped strike extent of the mineralisation and the stacked nature of the mineralisation in multiple horizons, offer obvious exploration attractions and we look forward to further news as the programme develops.
Sunrise Resources PLC (AIM:SRES) 0.13p Mkt Cap £7.1m – Seeking a new partner to develop the CS Pozzolan Perlite project
- Sunrise Resources reports that it has terminated discussions with a large cement and ready-mix company (CMRC) concerning the possible joint development of Sunrise Resources’ CS Pozzolan-Perlite project in Nevada.
- The company expresses frustration that, despite a bulk sample of material passing “all of the CRMC's testing programmes, including large scale grinding tests on a 500-ton bulk sample of run-of-mine pozzolan … [which] … demonstrated the commercial application of the Company's high quality natural pozzolan as a substitute for fly ash and cement in concrete, both on a bench scale and in real-life concrete pours” as protracted discussions with the CMRC “failed to reach a satisfactory conclusion”.
- Sunrise Resources says that it “will now prioritise ongoing discussions with other potential partners for the CS Project”.
- Expressing confidence that a suitable alternative partner for development of the project will be identified, Executive Chairman, Patrick Cheetham, explained that “Our mine permits continue in force and we believe that the testwork carried out by the CRMC on CS natural pozzolan has materially increased the value of the project to the Company and other interested parties.”.
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Analysts
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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%