SP Angel . Morning View . Wednesday 23 03 22
Base metals rise as Covid disrupts China smelters
MiFID II exempt information – see disclaimer below
All Star Minerals* (ASMO LN) – Jason Brewer to take over as CEO as Ian Harebottle steps back into NED advisory role
Beowulf Mining* (BEM LN) – Minister awards exploitation license for Kallak North iron ore mine Sweden
Europa Metals Limited (EUZ LN) – Ore sorting results from Toral
Kenmare Resources (KMR LN) – Record production in 2021 drives a six-fold increase in after-tax profit
Power Metal Resources* (POW LN) – Kalahari Key update and Ditau REE Project drilling programme start
Trade sanctions – Risk of emerging market debt crisis
- It is always difficult for producers, manufacturers and shopkeepers/trade sellers to ignore the wishes of their customers, particularly when their customers are more than willing buy elsewhere
- China has used its buying power to great effect in years past though the cessation of orders for minerals to bring miners to their knees.
- The US and the West (NATO) are China’s major customers and may be about to exercise their leverage and increasing ban trade with anyone who breaks sanctions with Russia
- If Mexico, India and China are sanctioned for trading with Russia then a great deal of disruption will be followed by the mother of an emerging/developing market debt crisis.
- Aggressive US funds may then pick over the bones of what’s left of the corporate bonfire
Gold - ETF buying continues to rise as price stabilises
- Gold price stable at $1,924/oz despite ETFs adding 308,298oz over the past 24 hours.
- Total bullion in ETFs has risen 7.3% this year to 1-year highs as investors rush to safe haven assets.
- Gold is up 5.1% this year, with a strong US dollar and rising US Treasury yields restricting its rally.
- The Fed is turning increasingly hawkish towards tackling inflation, with traditional doves Daly and Bullard backing Powell’s considerations of a 50bp rate hike in May, reducing gold’s appeal.
Aluminium prices climb as inventories slide and Russia supply concerns mount
- Aluminium prices have ticked up to $3,536/t but remain below March 7th record highs of $4,074/t.
- Inventories at warehouses have continued to shrink, with LME stocks at their lowest level since 2007.
- Volumes available for removal from LME saw their largest fall by quarter on record though Shanghai stocks rose 3% on the quarter. (Bloomberg)
- Tight markets have been exacerbated by Putin’s invasion of Ukraine, with Australia’s announcement yesterday to ban alumina exports to Russia furthering supply pressures.
Uranium prices rise as the US looks for alternative to Russian supply
- Uranium prices up 3% as the US looks to revive domestic production whilst shunning Russian supply. Prices are up 30% since Putin invaded Ukraine.
- Russia is the world’s largest supplier of enriched uranium, supplying 35% of the global market, (UxC) its allies Kazakhstan and Uzbekistan account for c. 45% of US demand. (EIA)
- Nuclear accounts for 20% of US electricity generation and 10% globally. (World Nuclear Association)
- Wyoming, a top US uranium producing state, filed to ban Russian uranium imports last Thursday.
- Concerns are longer term, with nuclear plants refuelling 2-3 years in advance. (Nuclear Energy Institute)
- Analysts expect disruption to the rollout of small modular reactors (SMRs) with Russia a primary supplier of the technology.
Nickel prices rise as LME traders look for level on market reset
- Nickel bounced 5.5% to highs of $29,700/t in its first rise since the LME opened trading again.
- The metal has been extremely volatile since a short squeeze triggered a 250% rally in prices this month.
- Volumes have been limited today at 530 contracts, in line with a wider metals market theme, as traders limit their exposure amid extreme volatility. (Bloomberg)
- Traders estimate Tsingshan (Big Shot) may have been 180,000t short of nickel though we suspect their financiers will be working on reducing the risk of this position at every opportunity.
LME rejects calls to ban Russian metals from system
- The LME has refused to ban Russian metal producers’ products from its system.
- It states the LME’s ‘priority is to maintain an orderly market for the benefit of all market participants.’
- The LME Copper Committee, including producers, brokers, and consumers, voted last week to ban deliveries of Russian copper to the exchange’s warehouses. (Reuters)
- Analysts fear a ban on Russian metals may see extreme shortages in already tight markets.
- The LME’s delisting of Rusal’s aluminium in 2018 caused prices to jump c. 30%.
Dow Jones Industrials +0.74% at 34,807
Nikkei 225 +3.00% at 28,040
HK Hang Seng +1.10% at 22,130
Shanghai Composite +0.34% at 3,271
Economics
Russia/Ukraine conflict reroutes ‘belt & road’ rail freight onto container ships as manufacturers avoid Russia
- Analysts estimate over 1m rail containers have been delayed and rerouted from China to Europe to seaborne routes. (Bloomberg)
- Auto parts and consumer electronics are the two most affected goods as logistics firms avoid Russian rail routes.
- Rail lines have been disrupted by payment-targeting sanctions and combat zones.
- Diverted rail cargoes to shipping routes are adding to port congestion, further adding to inflationary pressures on consumer goods.
- China’s Covid restrictions at major shipping hub Yantian, Shenzhen, has seen major delays both onshore with trucking and offshore with vessels.
China – Covid lockdowns shutdown steelmaking hub as Covid infections surge
- Iron ore prices lost around $5/t a tonne overnight as ongoing lockdowns in Tangshan and Jilin hit steel smelting.
- Tangshan, China’s top steelmaking city, has ordered residents to stay at home as Covid cases surge.
- Tangshan accounts for 58% of China’s strip steel output, 14% of HRC output, 49% of section steel. (Beijing Lange Steel Information Research Center)
- Iron ore prices have fallen 3.3% on expectations of sliding demand for the key steelmaking ingredient as a result.
- Steel rebar and HRC prices have risen alongside steel billet but remain marginally higher than last week.
- Shanghai futures trading volumes in copper, zinc and aluminium are at 1-month lows as Covid cases and lockdowns engulf China.
US – President Biden started his visit to Europe today for a series of summits with Nato, EU and G7 allies to discuss support for Kyiv and new sanctions on Russia.
- Previously, the White House signalled that the US and its European allies intend to escalate sanctions on Russia this week warning that the conflict in Ukraine would “not end easily or rapidly”.
- Fed Chairman Jerome Powell commented "Inflation is much too high. We have the necessary tools, and we will use them to restore price stability." to the National Association for Business Economics.
UK – Inflation jumps to a 30-year high beating estimates from the central bank and Treasury on the back of higher energy and fuel costs.
- Chancellor is due to deliver a Spring Statement later with expectations for Rishi Sunak to announce a series of measures to soften the blow from the rising cost of living.
- Among options considered are a cut to fuel duty and an increase to the threshold at which people start paying NI.
- CPI (%mom): 0.8 v -0.1 in January and 0.6 est.
- CPI (%yoy): 6.2 v 5.5 in January and 6.0 est.
Germany – Economic growth outlook is downgraded on the back of the Russia/Ukraine war, according to the latest Ifo estimates.
- GDP is guided to average between 2.2% and 3.1% this year depending on the scenario for the duration of the conflict from 3.7% previously for 2022.
- Among risks to growth highlighted were raw materials and energy inflation, imposed sanctions weighing on trade and production stoppages in Ukraine leading to bottlenecks in the supply of some of components.
France – Macron permits Renault to restart vehicle production in Russia
Let’s hope Macron is able to use this to extend his dialogue with President Putin
Argentina – The central bank raised rates by 2pp to 44.5% marking a third consecutive increase this year.
- Inflation accelerated to a 4.7% monthly rate in February that was the highest pace in nearly a year.
- On annual basis, inflation stood at 52.3% last month.
- Along with raising rates, the monetary authority pledged to reduce money supply this year to fund government spending.
Peru - Community protests continue to disrupt copper mines with Southern Copper’s Cuajone mine closed for three weeks and ongoing threats to disrupt Las Bambas and some BHP operations.
Nystar – bringing back 50% of zinc smelting in Europe representing around 360,000tpa or ~7% of global production
Currencies
US$1.0994/eur vs 1.0994/eur yesterday. Yen 120.42/$ vs 120.42/$. SAr 14.903/$ vs 14.903/$. $1.316/gbp vs $1.316/gbp. 0.740/aud vs 0.740/aud. CNY 6.359/$ vs 6.359/$.
Commodity News
Precious metals:
Gold US$1,923/oz vs US$1,928/oz yesterday
Gold ETFs 105.0moz vs US$104.7moz yesterday
Platinum US$1,023/oz vs US$1,034/oz yesterday
Palladium US$2,554/oz vs US$2,524/oz yesterday
Silver US$24.98/oz vs US$25.13/oz yesterday
Rhodium US$18,800/oz vs US$18,800/oz yesterday
Base metals:
Copper US$ 10,329/t vs US$10,245/t yesterday
Aluminium US$ 3,536/t vs US$3,510/t yesterday
Nickel US$ 29,050/t vs US$28,570/t yesterday
Zinc US$ 3,943/t vs US$3,890/t yesterday
Lead US$ 2,298/t vs US$2,262/t yesterday
Tin US$ 41,730/t vs US$42,050/t yesterday
Energy:
Oil US$116.9/bbl vs US$117.0/bbl yesterday
- Oil prices rose on fears of further Russian sanctions and as a storm in the Black Sea damaged loading equipment of CPC, one of the world's biggest oil export pipelines.
- U.S. President Joe Biden meets with European leaders on Thursday in Brussels, where we expect the prospect of further sanctions against Russia will be on the agenda.
- Gazprom said its Ukraine transit nomination for Wednesday was 106.5mcm from 108mcm yesterday, in line with its LT contracts.
- Today’s UK focus is on the chancellor's Spring Statement, which may offer additional help to Britons struggling with high energy prices with a potential cut to fuel duty or cash rebate.
Natural Gas US$5.163/mmbtu vs US$4.926/mmbtu yesterday
Uranium UXC US$59.20/lb vs $57.70/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$145.1/t vs US$150.4/t
Chinese steel rebar 25mm US$775.1/t vs US$778.2/t
Thermal coal (1st year forward cif ARA) US$187.0/t vs US$187.0/t
Thermal coal swap Australia FOB US$245.0/t vs US$228.0/t
Coking coal swap Australia FOB US$568.0/t vs US$600.0/t
Other:
Cobalt LME 3m US$82,000/t vs US$82,000/t
NdPr Rare Earth Oxide (China) US$155,294/t vs US$159,609/t
Lithium carbonate 99% (China) US$74,118/t vs US$74,301/t
China Spodumene Li2O 5%min CIF US$2,810/t vs US$2,790/t
Ferro-Manganese European Mn78% min US$2,243/t vs US$2,270/t
China Tungsten APT 88.5% FOB US$340/t vs US$340/t
China Graphite Flake -194 FOB US$805/t vs US$805/t
Europe Vanadium Pentoxide 98% 12.4/lb vs US$12.4/lb
Europe Ferro-Vanadium 80% 62.75/kg vs US$62.75/kg
China Ilmenite Concentrate TiO2 US$396/t vs US$397/t
Spot CO2 Emissions EUA Price US$84.0/t vs US$83.8/t
Brazil Potash CFR Granular Spot US$1100/t vs US$1100/t
Battery News
Lithium - Global lithium-ion battery capacity could reach 5500GWh by 2030
- Global lithium-ion battery capacity may increase over five-fold to 5,500GWh by 2030 from 2021, according to research from Wood Mackenzie.
- "The EV market accounts for almost 80% of lithium-ion battery demand and high oil prices are supporting more markets to roll out zero-emission transportation policies, causing demand for lithium-ion battery to skyrocket," Wood Mackenzie said in a public press release.
- Ford and GM have both recently announced EV expansion plans, with Ford set to launch seven electric models in Europe by 2024 and deepen its partnership with Volkswagen to produce a second EV for the European market.
- Battery makers are responding to this rising demand with massive expansion plans, however, due to EV demand and rising raw material prices, battery supply will not meet demand until 2023.
- European battery production is expected to overtake North American this year rising to 20% of total battery capacity by 2030.
- North American battery capacity is still expected to expand 10x by 2030 according to Wood Mac.
- Much of this depends on Gigafactories sourcing good quality raw materials for battery manufacture.
- We reckon sky-high prices for lithium, cobalt and nickel may not be sufficient to feed the rapid expansion planned by many Gigafactories leaving the market waiting for extended periods as battery manufacturers struggle to catch up with expected demand.
- Europe may also struggle to meet rising demand for electricity with owners of new EVs driving more miles than average as consumers try move away from Russian oil and gas.
Company News
All Star Minerals plc (AQSE:ASMO)* 0.03p, Mkt Cap £1.5m – Jason Brewer to take over as CEO as Ian Harebottle steps back into NED advisory role
- All Star Minerals reports Jason Brewer is taking over as CEO of All Star Minerals replacing Ian Harebottle who is reverting to the role of non-executive director.
- Jason is particularly focussed on developing advanced mining projects in Africa and recently oversaw the restart of gold mining at Kilimapesa in Kenya
- Developments in Europe have forced All Star Minerals to rapidly review its strategy and renew its focus on Africa for near term growth.
- Brewer’s very substantial 25 years of experience and expertise in Africa should enable the company to negotiate its way into some good new investment opportunities and take advantage of the forthcoming environment.
*SP Angel act as broker to All Star Minerals
Beowulf Mining* (BEM LN) 14.70p, Mkt Cap £107m – Minister awards exploitation license for Kallak North iron ore mine Sweden
- Beowulf Mining report the award of the critical ‘Exploitation Concession’ for the Kallak North iron ore project in Sweden.
- The Minister for ‘Enterprise and Innovation’ awarded the license in a speech in Sweden yesterday causing Beowulf shares to jump 74% intraday to 22p before settling back at 12.82p.
- Kurt Budge, Beowulf’s ceo, has campaigned tirelessly and now successfully for the Kallak ‘Exploitation Concession’ following definition of the project since receipt of the first exploration license by the mining inspectorate of Sweden in 2006.
- The new minister is firmly committed to mining and replaces a minister who appeared to stall any, and all, new mine developments in the Swedish mining industry over the past decade despite the evident environmental benefits offered by the purity of the Kallak iron ore.
- Kallak’s particularly clean magnetite concentrate should enable steel makers to reduce carbon emissions further, improve energy efficiency and reduce waste leading to cleaner and greener steel production.
- The Kallak North area concession is also designated as an Area of National Interest for minerals and is located just 80km southwest of the major iron ore mining centre of Malmberget.
- The project is also ~120km southwest of the giant Kiruna iron ore mine which LKAB claims to be the first source of green iron in the Europe.
- The Ukrainian situation has cut iron ore feedstock and steel supply into Europe from the Ukraine and from Russia though sanctions and the inability to finance trade making local sources of iron ore all the more important for northern European steel producers.
- The Norrbotten county administration also see Kallak as economically beneficial through the creation of around 250 direct and 300 indirect jobs along with >SEK1bn in taxes and demand for local and national services over a 25-year period.
- Resources: Kallak North hosts an estimated 389mt of iron ore which can be concentrated to a rich 71.5% iron content concentrate which is better than LKAB’s 70.7% target specification.
- The Kallak ore contains minimal deleterious elements making this an important ore resource for steelmaking.
- The PERC 2017 (UK) Measured and Indicated mineral resource is 132mt grading 27.8% iron content with an inferred mineral resource of 39mt grading 27.1% iron..
- An additional 19mt has since been added equating to a further 12.5% increase in the resource.
- Iron ore prices remain relatively strong at US$145.1/t in China with premiums for higher-grade ores and pellets in Europe.
- There remains some local opposition from the Green party in Sweden which appears to automatically oppose any mining development, the Sami reindeer herders and Fridays for Future run by Greta Thunberg.
Conclusion: Kurt Budge has, with great diligence and careful consideration, persuaded the government of Sweden to back the development of the Kallak North iron ore project. This is a project which can improve carbon emissions from steel production, better enable self-sufficiency in Europe and replace production from LKAB’s Kiruna iron ore mine as it works through its remaining ore reserves.
*SP Angel acts as Nomad and Broker to Beowulf Mining
Europa Metals Limited (Europa Metals Ltd (AIM:EUZ, JSE:EUZ, OTC:EOPAF)) 4.1p, Mkt Cap £3.2m – Ore sorting results from Toral
- Europa Metals has reported results from tests of ore-sorting using X-Ray Transmission (XRT) technology on samples of ore from its Toral lead/zinc/silver project in the Castilla y Leon region of Spain.
- The work, which forms part of its continuing metallurgical testing programme, was undertaken under the supervision of the consultants, Wardell Armstrong International and was conducted by equipment supplier, TOMRA, in Germany.
- The programme tested samples of drill-core containing siliceous mineralisation, as well as “two further discrete carbonate samples (from holes TOD-025D and TOD-028) from the indicated mineral resource zone at the Company's wholly owned Toral lead, zinc and silver project”.
- Investigation of the opportunity to upgrade “lower grade mineralisation that had not been considered in the 2018 Scoping Study” may mean that Toral can process material considered sub-economic in the earlier study as well as enabling the use of a smaller processing facility.
- Europa Metals says that “Overall, the data showed that in excess of 94% of the overall lead and zinc in the feed could be recovered whilst rejecting more than 43% of the original mass”.
- Results from the siliceous material show “recovery of 95.7% Pb and 94.3% Zn metal” and an overall increase in the zinc-equivalent (ZnEq) grade from 3.56% to 6.00% as a result of the use of XRT.
- Samples of the carbonate material show recoveries in excess of 96% for lead and over 94.7% for zinc with an overall upgrade of ZnEq grade of 6.57% to 12.00% and of 4.24% to 7.67% for the two samples tested.
- Continuing test work will evaluate the flotation response of the upgraded material produced from the XRT study.
- Acting CEO and Executive Chairman, Myles Campion, said that the “results build on previous testwork results … and demonstrate the potential for further optimisation of the Toral Project.”
Conclusion: Encouraging ore-sorting rest results from Toral offer the prospect to upgrade ore feed and reduce plant size. We await further news as the test programme progresses towards a Pre-Feasibility Study.
Kenmare Resources plc (LSE:KMR) 454p, Mkt Cap £430m – Record production in 2021 drives a six-fold increase in after-tax profit
- Kenmare Resources reports record production volumes and improved product prices driving an 87% increase in revenues (to US$455.9m) and a 182% rise in EBITDA (to US$216.1m) during 2021.
- After-tax profits increased by 669% to US$128.5m (2020 – US$16.7m)
- Chairman, Steven McTiernan, explained that “2021 was the first full year of operations at the high grade Pilivili ore zone, in addition to our original Namalope area. Significant increases in production and shipments were achieved, while our product markets exhibited strong demand throughout the year”.
- He also said that “As we began 2021, while we had largely completed the last of our three growth projects, operational effectiveness continued to be impacted by COVID-19 … [and he confirmed that] … we remain vigilant as the pandemic continues to evolve”.
- Expressing confidence as a positive market response to the company’s products during 2021 continues in early 2022, he said that “Our increased production has been well absorbed by our markets and demand for Kenmare ilmenite remains strong. However, the tragic conflict in Ukraine has created significant uncertainties in global trade routes and the wider economy. It is too soon to speculate on the overall effects on our business, but Ukraine is a significant supplier of titanium feedstocks, while lower global growth could reduce demand for our products”.
- The company reports that the increased volumes helped generate an “18% decrease in cash operating costs per tonne to $154 per tonne (2020: $188 per tonne), benefitting from increased product volumes. 26% decrease in net ilmenite unit costs to $93 per tonne (2020: $125 per tonne), due to increased ilmenite production and higher co-product revenues”.
- As a result, Kenmare Resources reports a “669% increase in profit after tax to $128.5 million (2020: $16.7 million)” and the company is recommending a 227% increase in dividends to “$32.1 million or USc32.71 per share (2020: USc10.00)”.
- Production of Heavy Mineral Concentrates (HMC) increased by 30% to a record 1,555,900t “benefitting from increased tonnes mined and higher ore grades“ resulting in a “48% increase in ilmenite production to 1,119,400 tonnes (2020: 756,000 tonnes)”.
Conclusion: The first full year of operations at Pilivili contributed to a record production year in 2021, fueling an 182% rise in EBITDA and a 227% rise in dividends.
Power Metal Resources PLC (AIM:POW) 1.3p, Mkt Cap £19m – Kalahari Key update and Ditau REE Project drilling programme start
- Kavango Resources withdrew its proposal to acquire all outstanding shares of Kalahari Key Mineral Exploration that holds a 60% interest in the Molopo Farms Complex Project, Botswana.
- Kalahari Key could not secure approval of the provisional offer from the required minimum of 90% of the shares in time.
- Power Metal holds a ~22% interest in Kalahari Key as well as an earned it direct interest of 40% in the Molopo Project giving it an effecting interest of 53%.
- Molopo is targeting nickel sulphides, copper and PGMs in Botswana.
- Power is planning to engage with Kalahari Key shareholders to review alternative strategies and take Molopo forward.
- Separately, the Company announced that a diamond drill rig was mobilised to the site at the Ditau Camp Project, Botswana, to start testing identified REE targets.
*SP Angel acts as nomad and broker to Power Metal
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%