SP Angel . Morning View . Wednesday 09 03 22
Gold hits $2,068/oz as US and Russia ban metal trade
MiFID II exempt information – see disclaimer below
AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) – Dual listing in Namibia
Anglo American PLC (LSE:AAL) – De Beers reports continuing robust demand for rough diamonds and positive consumer sentiment
Aura Energy Ltd (ASX:AEE, AIM:AURA)* – Announcement of ASX trading halt
Bushveld Minerals Ltd (AIM:BMN, OTC:BSHVF)* – BUY, Valuation 31p - Chinese vanadium prices jump higher
Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) – Exploration results from BHA
Oriole Resources PLC (AIM:ORR) – 2021 described as a “bounce-back” year
Polymetal International PLC (LSE:POLY) – Impact of sanctions
Premier African Minerals Ltd (AIM:PREM) – £12m DFS funding conditionally secured from a credible partner
Nickel market goes silent as London LME and Shanghai SHFE suspend trading
- Nickel futures are not trading anywhere in the world after prices in Shanghai hit their daily upward limit on Wednesday, following unprecedented market speculation in the metal.
- 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.
- Overnight trading of the metal on the Shanghai Futures Exchange saw prices surge 17% to the daily limit of 267,700 yuan ($42,373)/t.
- Nickel on the LME was suspended after prices surged 250% in the first two days of trading. Trading may not resume on the LME for two weeks.
The LME nickel settlement price was fixed at US$48,078/t on the 17:00 Monday 5:00 close despite the halt in trading at US$81,051/t.
- Traders are required to settle margin calls at the lower price according to their contracts, effectively limiting the losses of short sellers and bailing out ‘Big Shot’ - now ‘Little Shot’ in China.
- Big Shot owns Tsingshan Holding Group, a major nickel and stainless-steel producer.
- Some market participants reported that Tsingshan had 200,000t of futures contracts in short position, while others suggested losses could be as much as $12bn.
- Tsingshan reports this morning that it has secured credit promises from JP Morgan and China Construction Corp to help it meet a wage of margin calls.
- Chinese officials will be concerned about how Big Shot was allowed to hold such a large short position in nickel, estimated to be >100,000t of nickel and will no-doubt blame Capitalist Imperialists.
- Traders are questioning how a single entity was able to hold such a large position in the market without substantial increased margin requirements by their bankers and the LME.
- Lawsuits will surely follow.
- The trading halt also allows traders more time to enable their clients to settle on their losses.
- Historically, in past crises, Chinese traders have walked away from losses and this was seen as part of the cost of dealing with the Chinese by Western banks – it will be interesting to see if they are willing to honour their losses this time?
- Glencore is reported to be the major holder of open interest in the nickel market (Bloomberg) and should be a key beneficiary of the price rise.
Gold surges near record high on inflationary pressures triggered by Russia-Ukraine conflict
- Gold rallied to $2,068/oz before settling around the $2,050/oz mark.
- Gold has rallied on current geopolitical concerns regarding the escalating war in Ukraine and subsequent economic implications that are expected to follow.
- Russia and Ukraine are key exporters of grain, oil and gas, and metals. The disruption of these is expected to filter into already inflated consumer prices following the pandemic.
- Gold’s rally has come despite the dollar index holding around May 2020 highs.
- A flattening US yield curve amid heightened expectations of an incoming US recession is encouraging investors to seek gold exposure.
Shanghai commodity exchanges adjust margins and trading limits on increasing volatility
- China’s Shanghai Futures Exchange is adjusting trading limits and margin requirements for various commodities.
- These include gold, copper, aluminium, zinc, lead, and fuel oil.
- Aluminium and copper futures will have margin requirements and trading limits set at 12% and 10%.
- Zinc and lead futures will have margin requirements and trading limits set at 14% and 12%. (Reuters)
- Gold futures will see trading limits set to 8% and margin requirements set to 10%.
China steel prices jump 12% on soaring nickel futures
- China stainless steel futures hit their 12% daily limit yesterday as nickel prices doubled.
- Other steel products fell, HRC down 2%, construction rebar down 1.2%.
- Iron ore continues to climb to $167/t, its highest since mid-August 2021.
Dow Jones Industrials - -0.56% at 32,633
Nikkei 225 - -0.30% at 24,718
HK Hang Seng - -0.51% at 20,659
Shanghai Composite - -1.13% at 3,256
Economics
JP Morgan - Global GDP revised to 2.6% for 1H 2022 from 4.9% in mid-February.
Russia – People queue at ATMs ahead of the Central Bank’s decision to limit withdrawals of foreign currency to $10,000 over the next six months effective 09 March.
- Foreign currency deposits are reported to remain in place with a limit on withdrawals coming into effect today.
- Any withdrawals over the limit will be converted into roubles at the official exchange rate and provided in rouble equivalent.
- "In Russian banks, about 90 per cent of foreign currency accounts do not exceed the amount of USD 10,000, that is, 90 percent of holders of foreign currency deposits or accounts will be able to fully receive their funds in cash," the CBR said.
- Additionally, banks are said to suspend sale of foreign currency (cash) while the new regulations are in place.
- The rouble is currently trading at 135 to the US$ compared to 75 before the invasion.
- Local stock exchange remains closed.
Putin plans 10-month ban of Russian commodity exports in response to Western sanctions
- The Kremlin has announced plans to ban exports to ensure ‘the security of the Russian Federation and the uninterrupted functioning of industry.’
- The proposed ban on commodity exports is set to last until Dec. 31st.
- Putin has given his cabinet 2 days to write up a list of countries that will be subject to the ban. (WSJ)
- The order was a direct retaliation to Biden’s decision to ban US imports of Russian oil alongside various western nations.
China - Trade surplus rises to US$115.95bn in January/February vs US$95bn in December and US$35bn in Jan/Feb last year
- The numbers are rolled together to account for the Chinese Lunar New Year break.
- Exports 16.3% vs 20.9%
- imports 15.5% vs 19.5%
- Unwrought copper imports rose 9.6% to 969,000t due to , as delayed shipments came in. Jan US trade deficit US$89.7bill (US$82bill
Europe - The reality is that Europe is at war with Russia
- Poland is to somehow deliver Mig fighter jets to Ukraine, on condition the US replaces them, immediately, with better US fighters.
- So NATO countries may now be seen as delivering offensive weapons to Ukraine in place of defensive weapons. UK and US anti-tank and anti-aircraft weapons are already in use with some offensive capacity. This raises the risk of a broader offensive by Russia limited by the relatively small scale of its ground forces.
- Russia is preparing to take Kiev and other cities but may destroy these cities through their frustration and to subjugate Ukrainian opposition.
UK - Wholesale electricity prices rise to £328/MWh in March vs £117/MWh average in 2021
Shipping - Disruption continues to hit shipping routes as Ukraine War intensifies
- 5 merchant ships have now been hit by artillery off the coast of Ukraine since the invasion.
- 3,500 sailors on 200 ships are stuck at Ukrainian ports. (Windward Ltd)
- There are currently more stranded ships globally than at any time since WWII. (WSJ)
- Ukraine has diverted ships to Turkish, Romanian, and Georgian ports following its suspension of all port operations.
- Soaring shipping rates had been pointed to by analysts as a major source of inflation during the pandemic, with this expected to continue to impact consumer prices for the foreseeable future.
Australia – PM Morrison to declare national emergency following floods on East coast
- Floods in New South Wales and Queensland have killed 20 people and damaged thousands of homes over the past two weeks following record rains.
- BHP, Rio Tinto and Glencore have all made generous donations to various flood relief organisations.
- Operations have been suspended at Aurelia Metals’ Dargues gold mine, 80km east of Canberra.
- Aurelia bought the mine for A$205m in November 2020 and produced 21,672oz of gold during the second half of 2021.
- The company reports that rainfall has now impacted both the mine and the tailing storage facility to fill the TSF to operational storage capacity.
Venezuela – releases two American hostages as Washington offers to ease sanctions against the Maduro regime in return for oil
- Trump imposed sanctions on Venezuela oil in 2017
- The US imported around 675,000bbls/d of Russian oil a day
- Venezuela sells around 600,000bbls/d barrels to China and Cuba
- The US is also expected to look to deal with Iran in an effort to further isolate Russia for its invasion of Ukraine
Currencies
US$1.0925/eur vs 1.0907/eur yesterday. Yen 115.86/$ vs 115.43/$. SAr 15.191/$ vs 15.293/$. $1.313/gbp vs $1.312/gbp. 0.730/aud vs 0.729/aud. CNY 6.317/$ vs 6.315/$.
Commodity News
Precious metals:
Gold US$2,045/oz vs US$2,003/oz yesterday
Gold ETFs 102.8moz vs US$102.1moz yesterday
Platinum US$1,161/oz vs US$1,142/oz yesterday
Palladium US$3,016/oz vs US$2,942/oz yesterday
Silver US$26.43/oz vs US$25.91/oz yesterday
Rhodium US$21,500/oz vs US$22,200/oz yesterday
Base metals:
Copper US$ 10,158/t vs US$10,362/t yesterday
Aluminium US$ 3,522/t vs US$3,731/t yesterday
Nickel US$ 48,063/t vs US$80,000/t yesterday
Zinc US$ 4,126/t vs US$4,245/t yesterday
Lead US$ 2,502/t vs US$2,493/t yesterday
Tin US$ 47,660/t vs US$49,000/t yesterday
Energy:
Oil US$129.7/bbl vs US$125.3/bbl yesterday
- Crude prices remain elevated after President Joe Biden announced the US would ban imports of Russian fossil fuels, while the UK said it would phase out Russian oil products (not gas) by the end of this year
- Gasoline prices have reached record highs in the US, according to the American Automobile Association, as broken supply chains exacerbate what were already tight product markets.
- 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
- 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$4.548/mmbtu vs US$4.706/mmbtu yesterday
European gas prices subsided on positive sentiment that Russian gas supplies would not be targeted by official sanctions in Europe
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$53.15/lb vs $51.50/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$167.3/t vs US$162.0/t
Chinese steel rebar 25mm US$789.3/t vs US$792.7/t
Thermal coal (1st year forward cif ARA) US$251.0/t vs US$270.0/t
Thermal coal swap Australia FOB US$430.0/t vs US$440.0/t
Coking coal swap Australia FOB US$420.0/t vs US$420.0/t
Other:
Cobalt LME 3m US$81,795/t vs US$79,295/t
NdPr Rare Earth Oxide (China) US$173,421/t vs US$175,005/t
Lithium carbonate 99% (China) US$74,041/t vs US$74,041/t
China Spodumene Li2O 5%min CIF US$2,730/t vs US$2,730/t
Ferro-Manganese European Mn78% min US$1,906/t vs US$1,904/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$67.6/t vs US$65.6/t
Brazil Potash CFR Granular Spot US$820/t vs US$820/t
Battery News
Shell cleared for 1.3GW floating wind in South Korea
- Shell and CoensHexicon have secured a further two Electricity Business Licenses (EBLs) from South Korea’s Ministry of Trade, Industry, and Energy for their floating wind project off the coast of Ulsan.
- The first EBL was obtained back in November, when 420MW of capacity was approved.
- With all the EBL’s now in place, Shell and CoensHexicon can fully develop the 1.3GW project.
- South Korea set ambitious plans to reach 12GW of offshore wind capacity by 2030 much of which will comprise of floating wind due to South Korea’s geographical location and surrounding deep waters.
EU carbon prices slide on Russia-Ukraine conflict and soaring energy costs
- The EU Emissions Trading System’s carbon prices have fallen 30% since Russia invaded Ukraine.
- Analysts expect conflict-induced disruption to energy-intensive industries such as steelmaking and smelting to reduce carbon prices.
- However, the sharp price decline is thought to be primarily a result of investors reducing bets on upward carbon price momentum.
Researchers announce lithium-sulphur battery breakthrough
- Researchers from Australia’s Monash University have created a new generation of lithium-sulphur batteries that can provide cheaper, cleaner, and faster-charging energy storage solution that outlasts lithium-ion alternatives and is rechargeable hundreds of times without failing.
- The new breakthrough uses a new interlayer that allows for exceptionally fast lithium transfer, as well as an improvement in the performance and lifetime of the batteries.
- Lithium-sulphur batteries can store two to five times more energy per kilogram than the lithium-ion alternatives but previously, the electrodes rapidly during the recharge process.
- Professor Matthew Hill said the development shapes as a game-changer for lithium-sulphur batteries which do not rely on metals like cobalt, nickel and manganese, which are critical minerals found in lithium-ion batteries.
- The announcement comes just weeks after scientists in the US announced that they have developed a lithium-sulphur battery using a commercially available carbonate electrolyte, that retained more than 80% of its initial capacity after 4000 cycles.
Company News
AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) 7p, Mkt Cap £79m – Dual listing in Namibia
- Afritin reports that its shares commence trading today on the Namibian Stock Exchange in a dual listing alongside its existing AIM listing.
- The company, which operates the producing Uis tin mine in the Erongo region of northwest Namibia, explains that the “dual listing on the Namibian Exchange will allow Southern African Development Community members the opportunity to participate in this developing opportunity”.
- Earlier this month the company reported that, in addition to the tin production at Uis, its early-stage regional exploration programme of historic mining and greenfield exploration sites in central Namibia had discovered surface exposures of mineralised pegmatites containing the lithium mineral, spodumene which are to be drilled later this year.
- CEO, Anthony Viljoen, said that the dual-listing “is an important milestone for the Company, which cements our commitment to developing Namibia and its capital markets further”.
- *SP Angel act for Bushveld Minerals which holds around 9.5% of AfriTin
Anglo American PLC (LSE:AAL) 3,813p, Mkt Cap £51.3bn – De Beers reports continuing robust demand for rough diamonds and positive consumer sentiment
- Anglo American has reported that the second De Beers sales cycle of 2022 realised US$650m on a provisional basis and that the previously reported sales for the first sales cycle of 2022 have now been confirmed as US$660m.
- The latest provisional sales figures are US$100m ahead of the US$550m reported for the equivalent second sales cycle of 2021 and bring sales so far in 2022 to US$1.3bn (2021 – US$1.2bn).
- Commenting on the sales figures De Beers Chief Executive, Bruce Cleaver, explained that the “second sales cycle of the year saw the continuation of robust rough diamond demand underpinned by sustained positive consumer sentiment”.
- He also announced that De Beers is to donate US $1m to aid and support the people of Ukraine.
Aura Energy Ltd (ASX:AEE, AIM:AURA)* 16.5p, Mkt Cap £69m – Announcement of ASX trading halt
- Aura Energy has announced a trading halt on the ASX “pending announcement in relation to a capital raising”.
- “The Company expects trading in its shares to resume on the ASX after the expected announcement is made or until the market opens in Melbourne on 14 March 2022”.
*SP Angel acts as Nomad and Broker to Aura Energy
Bushveld Minerals Ltd (AIM:BMN, OTC:BSHVF)* – 12.85p, Mkt cap £162m – Chinese vanadium prices jump higher
BUY – Valuation 31p
- Ferro-vanadium prices jumped higher in China this week to CNY206,000-209,000/t from CNY196,000-197,000/t two weeks ago.
- The new Chinese price is now at $42.71/kg vs $40.65/kg previously
- This equates to $37.16/kg vs $35.36/kg after the deduction of import tariffs.
- The cessation of iron ore mining and steel production in the Ukraine combined with sanctions and problems with trade finance have disrupted vanadium exports from Evraz a major ferrochrome producer.
- Europe Ferro-Vanadium prices have also risen to 51.25/kg from $34-37/kg three weeks ago
- We assume a price of $35/kg for ferro-vanadium in our modelling and valuation for Bushveld rising to $38/kg from 2023.
Conclusion: Demand for vanadium is likely to increase as governments approve new stimulus packages to shore up their economies against fallout from Russia’s invasion of the Ukraine. Ferro-vanadium prices are likely to continue to rise further this year in this environment.
*SP Angel act as nomad and broker to Bushveld
Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) 1p, Mkt Cap £11.9m – Exploration results from BHA
- Castillo Copper has reported that ‘forensic geology work’ in the northwest part of its BHA project at Broken Hill, New South Wales, has “confirmed the potential for shallow platinoid mineralisation within ultrabasic dykes & metamorphic rocks … [as well as] … demonstrable base metal and cobalt potential”.
- Surface samples collected in the area have produced assay results of up to 3.7g/t platinum and “up to 12% Cu, 2,500 Zn, 9,400 Pb and 350ppm Co”.
- The company says that it is continuing to examine historic drilling data in order to progress its resource estimation work and has now identified “Up to 6,380 drill-holes, 198 more than previously announced on 15 February 2022, are now in the defined target area, with the majority polarised around the Reef Tank and Tors Tank Prospects”.
- CEO, Dr. Dennis Jensen, said that “Discovering the potential for platinoid mineralisation within the BHA Project is excellent news, as it provides another avenue to create shareholder value”.
- He also said that “with mineral resource estimates already completed for the Big One Deposit and the Cangai Copper Mine, and one is currently underway at the BHA Project”.
Conclusion: We look forward to the release of the mineral resources estimate for the BHA project to clarify the potential scale of the mineral endowment within this historic mining area.
Oriole Resources PLC (AIM:ORR) – 0.3p, Mkt cap £5.8m – 2021 described as a “bounce-back” year
- Describing 2021 as a “bounce-back year” Oriole Resources reports a loss of £1.57m for the year ending 31st December 2021 (2020 - £0.32m loss) and a year-end cash balance of £1.36m.
- An operating loss of £1.44m includes unrealised foreign exchange movements of £0.89m and the company also says that “Administrative expenses increased to £1.08 million (2020: £1.02 million) following the unwinding of cost saving measures introduced in 2020 in response to Covid-19.”
- Commenting on operational progress during 2021, CEO, Tim Livesey, said that “Our team has delivered across all projects with a 100% success rate:
- We have identified gold anomalism along an extensive trend (in excess of 35km) in our new frontier at the Central Licence Package ('CLP') project in Cameroon;
- ·We have drill confirmation of mineralised gold systems on the Bibemi licence, with diamond drill intercepts confirming a vertical and lateral continuation of the gold anomalism we previously identified at surface;
- ·We have completed a maiden Mineral Resource Estimate for the central 'Faré South' target on the Senala licence, with IAMGOLD continuing to extend the known mineralisation at Faré South and Faré North, and intersecting new, wide zones of high-grade mineralisation at Faré Far South”
- Mr. Livesey also pointed out that the exploration programmes “have all advanced quickly and efficiently, with a high percentage of the Group's spend being on direct exploration, allowing us to "succeed or fail fast". In this way, we ensure our investors' money is spent efficiently, in a targeted way and on those projects that best merit further focus and development.”
- Recently appointed Chair of Oriole Resources, Eileen Carr, highlighted Iamgold’s continuing exploration at Senala in Senegal where it “has met the initial US$4 million of expenditure across the first four years of the Option Agreement … required in order to secure a 51% interest in the Senala project”.
- She also described “rapid progress” at Bibemi in Cameroon “with three phases of drilling completed on the licence for 6,154m. Early in the year, our maiden drilling programme tested four targets and confirmed gold at each of them … [and commented that Oriole Resources sees] … great potential in Cameroon as a new frontier for gold exploration and note increased interest from the wider exploration community, with a number of new licences applied for by our peers”.
Polymetal International PLC (LSE:POLY) 135p, Mkt Cap £639m – Impact of sanctions
- Operations in Russia and Kazakhstan continue uninterrupted with production guidance unaffected.
- The Company reports has sufficient inventories of critical materials, consumables and spare parts at more than typical three months’ worth as a precautionary measure following Covid-19 related disruptions.
- The team initiated a review of logistics and procurement to increase supply chain resilience and secure critical supplies from domestic or Chinese-based manufacturers.
- Core capital projects development including POX-2, Urals Flotation, Kutyn and Prognoz will continue as planned while other non-essential capex will be reviewed to preserve liquidity.
- The Company sells silver concentrate to Kazakhstan and East Asia and refractory gold concentrate to China and Kazakhstan with offtakers assuring that all contracts remain in good standing.
- The team will be redirecting sales of bullion previously shipped to the US, EU and UK to comply with all relevant sanctions.
- Domestic gold sales will be supported by the Russian Central Bank gold purchases.
- Under latest regulations, the Company will need to sell 80% of foreign currency from its gold exports with non-residents using the Central Bank rouble exchange rate.
- Additionally, it is currently unclear if the Company can remit dividends from its Russian subsidiaries to the holding company level/
- The Company intends to pay the final dividend proposed in March but highlighted that moving forwards it reserves the right to re-evaluate its dividend policy with a view to ensuring liquidity and solvency.
- Outstanding net debt stood at $1.9bn at the start of March, 96% denominated in the US$ and carrying low ~2.9% interest. Only 27% matures over the next 12 months. Cash balance stood at $0.4bn deposited with non-sanctioned banks and $1bn in undrawn credit lines from non-sanctioned financial institutions.
- The Company expects borrowing costs to rise for new borrowings in Russian roubles reflecting a recent hike in Central Bank benchmark rate to 20% from 9.5%.
- Six independent Board members, including the Chairman and the Senior Independent Director, resigned from the Board effective 7 March.
Premier African Minerals Ltd (AIM:PREM) 0.37p, Mkt Cap £71m – £12m DFS funding conditionally secured from a credible partner
- The Company announced a conditional subscription by Suzhou TA&A Ultra Clean Technology (NASDAQ:UCTT) for £12m worth of shares at 0.4p.
- Suzhou TA&A is listed on the Shenzhen Stock Exchange (Mkt Cap $6.3bn) and is a major investor (75%) in lithium hydroxide producer Yibin Tianyi Industry along with Contemporary Amperex Technology, the largest EV battery manufacturer in China.
- Yibin Tianyi Lithium Industry is also a funder and take off partner for the Manono Lithium Tin Project in the DRC and has long term spodumene offtake agreements with Pilbara Minerals from Australia.
- The funding will cover the completion of the Zulu Lithium Project DFS currently underway.
- Suzhou TA&A will hold a 13.4% interest post completion of the subscription.
- Under the agreement, Suzhou TA&A will have an exclusive offtake for 50% of all spodumene produced at Zulu and a right to appoint one director on the Premier Board.
- Additionally, Suzhou TA&A agreed to make a non-refundable deposit of £1.2m to Premier as transaction regulatory approvals are being obtained with the deposit to be offset against the remaining proceeds of the subscription.
- New subscription shares are expected to be admitted to trading on or around 29 March.
- The Company commenced DFS work in May/21 and has been drilling the Zulu Project to expand and infill the existing resource.
- Current MRE stands at 20.1mt at 1.06% Li2O and 51ppm Ta2O5 (0.5% Li2O COG) all Inferred with the resource covering only 35% of original Zulu claim’s known 3.5km surface strike length; deposit remains open at depth and along strike.
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
W1S 2PP
*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
DISCLAIMER
This note is a marketing communication and comprises non-independent research. This means it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.
This note is intended only for distribution to Professional Clients and Eligible Counterparties as defined under the rules of the Financial Conduct Authority and is not directed at Retail Clients.
This note is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose.
This note has been issued by SP Angel Corporate Finance LLP (‘SPA’) to promote its investment services. Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. The information contained herein is based on sources which we believe to be reliable, but we do not represent that it is wholly accurate or complete. All opinions and estimates included in this report are subject to change without notice. It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. SPA is not responsible for any errors or omissions or for the results obtained from the use of such information. Where the subject of the research is a client company of SPA we may have shown a draft of the research (or parts of it) to the company prior to publication to check factual accuracy, soundness of assumptions etc.
Distribution of this note does not imply distribution of future notes covering the same issuers, companies or subject matter.
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%