SP Angel . Morning View . Thursday 21 04 22
Gold rangebound as US real rates briefly turn positive
MiFID II exempt information – see disclaimer below
Graphene / graphite purification – private financing
- We are inviting investors to finance a private company which produces high-grade graphite and graphene from low grade graphitic material.
- The company also sells: Graphene paint, and is developing Li-ion battery anodes along with a Concrete modifier
*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.
All Star Minerals plc (AQSE:ASMO)* – Blesberg lithium and Nkombwa rare earth phosphate project investments
Anglo American PLC (LSE:AAL) – Full-year guidance lowered due to heavy rainfall in Q1
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* FLASHNOTE - South Crofty’s feasibility funding valuation
Gem Diamonds Limited (LSE:GEMD) – Quarterly sales climb on a recovering market
Jangada Mines PLC (AIM:JAN) - AVOID – Technical report raises questions over assumptions
Strategic Minerals Corporation NL (ASX:SMC)* – 10-year exploration license extension at Redmoor
Tungsten West PLC (AIM:TUN) – Development of Hemerdon paused because of ‘current market conditions’
Dow Jones Industrials +0.71% at 35,161
Nikkei 225 +1.23% at 27,553
HK Hang Seng -1.46% at 20,639
Shanghai Composite -2.41% at 3,075
Economics
G20 - Yellen, BoE's Bailey, Canada's Freeland walk out of G20 meeting as Russians speak
US – 10 year sovereign real bond yields turned positive for the first time since Mar/20 yesterday as markets ramp up outlook for tighter monetary policy outlook.
- Existing home sales fall; house prices hit record high
China – The benchmark CSI 300 Index closed 1.8% today marking a fifth consecutive day of losses as President Xi defended China’s Covid zero strategy, Bloomberg writes.
- Markets were also underwhelmed by the decision by monetary authorities to keep lending interest rates unchanged yesterday.
- The number of serious Covid cases tripled overnight in Shanghai as the city remains in lockdown.
- The number of patients in severe or critical condition in the city climbed to 159 as of yesterday from just over 50 the previous day.
- A city of ~25m reported eight deaths Wednesday taking total fatalities from the latest outbreak to 25.
Germany – Exports outside the EU drop 7.2%mom reflecting the Ukraine/Russia war as well as lockdowns in China.
- Russia dropped to the 12th place from the 5th in terms of exports destination after overseas shipments to the country fell 58%yoy during the month.
- Exports to China also fell slightly (-1%yoy) as the country entered more Covid related lockdowns.
- The US, on the contrary, saw a strong increase with a 21%yoy jump in shipments as the economy continued to reopen.
Germany resists calls to restart nuclear power stations
- Germany refuses to restart nuclear power stations last December mothballed in December (FT).
- If Germany were to restart just three nuclear plants, it could replace all its Russian coal imports or 30% of its Russian gas.
- Olaf Scholz, Germany’s chancellor, appears to oppose the nuclear restarts citing issues such as safety inspections and nuclear fuel rod supplies.
- Russia is also the second largest supplier of uranium to EU nuclear plants, though we feel certain uranium can be sourced elsewhere.
France – The televised presidential debate brought no big surprises with President Macron’s advantage seen steadily widening to nearly 12 points over Le Pen ahead of the runoff vote this Sunday, according to Bloomberg.
Eurozone – Money markets are pricing three 25bp rate hikes by the ECB on the back of a series of hawkish comments from policy makers, Bloomberg writes.
- The central bank could hike rates for the first time since 2012 before the end of the year unless the eurozone economy reports a severe shock, Governing Council member Pierre Wunsch said yesterday.
- “Without any really bad news coming from that front (Ukraine/Russia war), hiking by the end of this year to zero or slightly positive territory for me would be a no brainer,” Wunsch said in an interview in Washington.
- The comments saw regional bond yields jump with traders now assigning a 80% probability to a 25bp move in July.
- While inflation is running rampant, growth outlook has been coming off lately on the back of rising energy prices amid the Ukraine/Russia war as well as growing concerns over economic outlook in China.
South Korea – Early trade data point to strong gains as growth in US demand compensates for a Covid-induced slowdown in China.
- Exports were up 16.9%yoy in the first 20 days of April led by semiconductors with shipments to the US and China up 29.1% and 1.8%, respectively.
Covid impact on China’s auto industry expected to continue into May
- In the first two weeks of April, Chinese passenger vehicle sales averaged 24,000 units per day, down 44% yoy and 48% from the average for the first two weeks of March.
- The China Passenger Car Association (CPCA) believes that the impact Covid on the industry will continue to impact production into May, with a 20-40% loss in production.
- Many automakers in areas where Covid has broken out are shutting down production due to controls and parts shortages, but highways have also been closed, leading to logistical shutdowns.
Currencies
US$1.0897/eur vs 1.0813/eur yesterday. Yen 128.00/$ vs 128.55/$. SAr 15.139/$ vs 14.975/$. $1.307/gbp vs $1.302/gbp. 0.744/aud vs 0.742/aud. CNY 6.448/$ vs 6.409/$.
Commodity News
Precious metals:
Gold US$1,950/oz vs US$1,944/oz yesterday
Gold ETFs 107.0moz vs US$106.9moz yesterday
Platinum US$985/oz vs US$982/oz yesterday
Palladium US$2,458/oz vs US$2,382/oz yesterday
Silver US$24.98/oz vs US$25.01/oz yesterday
Rhodium US$18,750/oz vs US$18,750/oz yesterday
Base metals:
Copper US$ 10,198/t vs US$10,277/t yesterday
Aluminium US$ 3,255/t vs US$3,250/t yesterday
Nickel US$ 33,560/t vs US$33,265/t yesterday
Zinc US$ 4,383/t vs US$4,470/t yesterday
Lead US$ 2,405/t vs US$2,419/t yesterday
Tin US$ 42,700/t vs US$43,090/t yesterday
Energy:
Oil US$108.3/bbl vs US$108.6/bbl yesterday
Natural Gas US$6.823/mmbtu vs US$7.104/mmbtu yesterday
Uranium UXC US$64.00/lb vs $64.05/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$152.2/t vs US$150.0/t
Chinese steel rebar 25mm US$799.4/t vs US$802.6/t
Thermal coal (1st year forward cif ARA) US$236.8/t vs US$236.8/t
Thermal coal swap Australia FOB US$345.3/t vs US$336.0/t
Coking coal swap Australia FOB US$515.0/t vs US$515.0/t
Other:
Cobalt LME 3m US$82,000/t vs US$82,000/t
NdPr Rare Earth Oxide (China) US$132,614/t vs US$133,425/t
Lithium carbonate 99% (China) US$69,564/t vs US$70,667/t
China Spodumene Li2O 5%min CIF US$3,260/t vs US$3,170/t
Ferro-Manganese European Mn78% $2,165/t vs US$2,147/t
China Tungsten APT 88.5% FOB US$343/t vs US$343/t
China Graphite Flake -194 FOB US$825/t vs US$825/t
Europe Vanadium Pentoxide 98% 11.4/lb vs US$11.4/lb
Europe Ferro-Vanadium 80% 50.25/kg vs US$50.75/kg
China Ilmenite Concentrate TiO2 US$393/t vs US$396/t
Spot CO2 Emissions EUA Price US$89.8/t vs US$86.7/t
Brazil Potash CFR Granular Spot US$1,250/t vs US$1,250/t
Battery News
CATL wins exploration rights for lithium clay deposit in China
- Battery manufacturer CATL has won exploration rights to a lithium clay deposit in Yichun, in China’s Jiangxi province.
- The company will pay $135m for the exploration rights to the deposit.
- The deposit is estimated to contain 2.66mt of lithium metal oxide.
- In September 2021, CATL signed an agreement with the Yichun municipal government to build a new li-ion battery production facility.
- The acquisition of the lithium clay deposit strengthens CATL’s production chain with a direct supply of lithium to the battery plant.
Company News
All Star Minerals plc (AQSE:ASMO)* 0.02p, Mkt Cap £5m – Blesberg lithium and Nkombwa rare earth phosphate project investments
- All Star is acquiring the Blesberg Lithium and Tantalum Project in South Africa and the Nkombwa Hill Tantalum, Rare Earth Elements and Phosphate Project in GMI ‘Gathoni Muchai Investments Limited’ subject to due diligence.
- Blesberg (South Africa): The historic Blesberg open cast mine is one of the largest known mineralised pegmatite deposits in the Northern Cape.
- The mine formerly produced lithium spodumene concentrates including tantalite and other by-products
- Samples from Blesberg assayed between 1.67% and 6.42% Li2O in 2016.
- Drilling (RC) and trenching in 2017 increased the strike length by >1km at Blesberg confirming areas of intense spodumene lithium mineralisation.
- Nkombwa (Zambia) is a major REE Phosphate mineralised carbonate complex located in northeast Zambia
- JORC 2012 Compliant Indicated and Inferred Mineral Resources total: 21.8mt grading 7.06% P2O5 and 1.17% TREO ‘Total Rare Earth Oxides’ at a 3.0% P2O5 cut-off.
- Including Total Mineral Resource of 2.78mt grading 2.76% TREO and 6.43% P2O5 at a 1.0% TREO cut-off grade.
- There is significant potential for resource expansion
- Nkombwa offers potential to restart within the next 6-9 months producing a tantalum-niobium concentrate
- All Star Minerals are paying US$10,000 worth of stock for an exclusivity period with GMI and will issue US$125,000 in stock at the time of the next capital raise.
- Nkombwa Project: All Star Minerals will have the option to acquire an initial 25% interest through a staged cash investment of US$150,000
- Blesberg: All Star Minerals can acquire an initial 5% interest in the Blesberg Project by issuing £37,500 in stock and a cash deposit of £37,500 and increase this to 30% on £200,000 of cash and by issuing £300,000 in shares.
- All Star Minerals will also have the right to acquire majority controlling interests in the Projects until 30 June 2023 when GMI will be entitled to an additional $125,000 in All Star shares.
- The deal: All star is issuing 22,000,000 shares at 0.035p/s to GMI representing a 75% premium to the last equity capital raising completed by the Company in 2021
- All Star will have 4,489,974,743 shares following the admission
Conclusion: Blesberg and Nkombwa look like good opportunities and we see Jason Brewer as is leading the company forward using expertise to add substantial value.
*SP Angel act as broker to All Star Minerals
Anglo American PLC (LSE:AAL) 3,708p, Mkt Cap £49bn – Full-year guidance lowered due to heavy rainfall in Q1
- Anglo American reports that high rainfall affecting operations in South Africa and Brazil, and safety and other operational challenges at metallurgical coal and iron ore operations has adversely affected production in the first quarter of 2022 and has caused a lowering of guidance for the full year.
- On a year-on-year basis, quarterly production:
- PGMs -6% to 956koz
- Iron ore -19% to 13.2mt
- Copper -13% to 140kt
- Met coal -32% to 2.2mt
- Nickel -8% to 9.3kt
- Diamonds +25% to 8.9Mct
- PGMS: Metal produced fell primarily as a result of high rainfall at Mogalakwena, with full year guidance revised to 3.9–4.3Moz (previously 4.1-4.5Moz).
- Unit costs guidance for the full year has been lifted to $970/PGM oz (vs $900 previously) reflecting the impact of the stronger South African rand, lower volumes and inflation.
- Iron Ore: Production decreased at Kumba as a result of higher than average rainfall and equipment reliability on plant performance. At Minas-Rio, production fell due to lower mining fleet and plant availability, impacted by unplanned maintenance and unusually heavy rainfall.
- Production guidance (wet basis) for 2022 is revised to 60-64mt (previously 63-67mt).
- Unit cost guidance has risen to c.$32/t (previously c.$25/t) at Minas Rio, reflecting the impact of inflation, the stronger Brazilian real and lower volumes. – while the Q1 average realised price of $166/t was only a 2% drop from Q1 21.
- Copper: Production fell due to planned lower grades (0.6% vs 0.7%) and lower copper recovery (80% vs 83%) at both Collahuasi and El Soldado.
- Production guidance remains unchanged at 660-750kt, while the average realised price of copper rose 10% to US$4.62/lb.
- Met Coal: A particularly challenging quarter for Anglo’s Met coal business, primarily due to the delayed longwall move at Moranbah owing to challenging geological conditions in the previous panel, as well as the planned end of production at the Grasstree operation in January 2022.
- The Aquila life-extension project is to replace Grasstree and ramp up during the first half of this year.
- Production guidance for 2022 is revised to 17-19mt (previously 20-22mt) and the realised price for the product rose 230% YoY to $373/t.
- Unit cost guidance for the full year has risen to c.$105/t vs $85/t previously.
- Nickel: Production fell primarily due to lower ore grades, as a result of licensing delays at the end of 2021, as well as the impact of heavy rainfall and unplanned maintenance at the company’s Codemin operation in Brazil.
- Production guidance for 2022 is unchanged at 40,000-42,000t, while unit cost guidance is revised to c.495c/lb (previously c.450c/lb).
- The average realised price rose considerably, 45% compared to Q1 21, to US$10.85/lb.
- Diamonds (De Beers): A bright spot for the company during the quarter, with strong operational performance and higher planned levels of production meeting continued strong demand for rough diamonds.
- Despite the strong performance regardless, Q1 21 was impacted by particularly high rainfall in Botswana and at Venetia.
- Guidance remains unchanged at 30-33mct, while unit cost guidance for 2022 is unchanged at c.$65/ct.
Conclusion: Anglo’s Q1 production report underscores a challenging three months for the company as a result of high rainfall and operational challenges. With full-year guidance for many metals lowered, Anglos will be hoping that the commodity price environment remains as strong as it is now going forward to somewhat offset lower production. However, slowing economic activity due to Covid lockdowns in China may well cut demand and prices for iron ore and copper this year.
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* - 22.5p, Mkt cap £120m+ - South Crofty’s feasibility funding valuation
Valuation 48p/s
LINK BELOW TO THIS MORNING’S FLASHNOTE
+( assumes issuance of 225m fundraising shares and 20m deferred consideration shares)
- Backed by a £25m investment from Vision Blue Resources, Cornish Metals is raising £40.5m for pumping the flooded workings and the delivery of a feasibility study on the re-opening of the mine.
- Proceeds of the fund-raising will finance a 30-month work programme which includes £16.1m of dewatering costs, with a further £13m to be spent on securing underground access as well as surface and underground resource drilling and £1.2m to fund the completion of the mine feasibility study.
- The ‘Lower’ mine contains NI 43-101 compliant ‘Indicated’ resources of over 2mt at an average grade of over 1.59% with an additional, ‘inferred’ resource of 2mt averaging 1.7% tin.
- Based on a long-term tin price of US$30,000/t, and an assumed production profile, we estimate that resuming of production at South Crofty generates an NPV5% of US$404m and IRR of 35% with payback in 1.7 years.
- United Downs: We expect exploration drilling to resume later this year
Valuation
- Pending completion of the new feasibility study, we base our analysis of South Crofty’s value on the NPV5% of the cash flows from mining 400,000tpa of ore which is upgraded using ore-sorting technology to process ore at the rate of 240,000tpa at a grade of 1.9% tin to generate an average of around 3,987tpa of tin in concentrate over a period of fifteen years. We assume a tin price of US$30,000/t and an average operating cost of around US$8,900/t.
- We base our capital and operating cost assumptions on the recent disclosures in relation to the Vision Blue Resources investment which detailed the dewatering cost and mine access costs and a construction capital cost of US$117m
- On this basis, we estimate an after-tax NPV5% of US$404m and IRR of 35% with payback in 1.7 years.
*SP Angel acts as Nomad and Broker to Cornish Metals
Gem Diamonds Limited (LSE:GEMD) 62p, Mkt Cap £87m – Quarterly sales climb on a recovering market
- Sales totalled 28,461 cts at an average price of $1,831 pct generating $52.1m in revenues (Q4/21: 24,790 cts at $2,018 pct for $50.0m).
- Production amounted to 28,430 cts (Q4/21: 33,069 cts).
- The highest price achieved during the quarter was $66,059 pct for a 8.4 cts pink diamond.
- Nine stones were sold for more than US$1m each contributing $16.2m to quarterly revenues.
- The Company referred to favourable diamond market conditions during the quarter.
- Closing net cash position stood at $20.2m (Q4/21: $20.9m) including $29.5m in cash and after accounting for $13.4 paid in dividends.
- The Company has also started an up to $2.0m share buyback programme post quarter end.
Jangada Mines PLC (AIM:JAN) 7.5p, Mkt cap 19m – Technical report raises questions over assumptions
AVOID
- Jangada Mines have published a technical report on their Pitombeiras vanadium, titanium, magnetite projects in Brazil.
- The report has been prepared by a Brazilian based GE21 Consultoria Mineral ('GE21') and is said to be NI 43-101 compliant.
- The average operating cost per tonne mined is US$1.26/t
- The average operating cost per tonne of Fe V2O5 concentrate processed is US$ 19.39/t
- The report uses a number of assumptions which we are tempted to question.
- Production is set for 200,000tpa wet indicating allot of heavy trucks running the 350km journey to a second processing plant near the port.
- Road freight costs are set at $10/t equating to $0.028/t per kilometre to the port. What fuel price is this based on?
- Shipping costs (Capesize are $20/t to China. We believe Baltic Exchange rates are higher Brazil-China trips with average day rates rising to >$50,000 last year.
- Freight rates Brazil-China are currently running at $74/t according to the Argentinian Agroindustry and livestock Ministry via Bloomberg.
- The study assumes a price for 62% Fe CFR China including 25% V2O5 premium of $165.64/t. We feel this is optimistic for longer term price assumptions on this type of concentrate and will be interested to see what the company is able to confirm in a binding offtake agreement.
Conclusion: We feel the report is using some optimistic assumptions in its inputs and we caution investors to be wary of the results pending publication of a more conclusive feasibility study based on firm price quotations for trucking, shipping and mining alongside established offtake contract prices.
Strategic Minerals Corporation NL (ASX:SMC)* 0.35p, Mkt Cap £7.1m – 10-year exploration license extension at Redmoor
- Strategic Minerals reports that it has signed a 10-year extension to its existing Redmoor exploration licence agreement, with a new end date of 18 October 2037.
- The company also notes that there remains a mining lease option which allows SML to enter into a 25-year mining lease (renewable for a further 25 years) over any part of the licence area.
- During the exploration licence period, a modest annual licence fee is payable to the vendor which converts to a 3% net smelter return vendor royalty on mining commencement.
- The most recent updated inferred mineral resource was produced by Cornwall based consultants Geologica (UK) and totals 11.7 mt @ 0.56% WO3, 0.16% Sn, and 0.50% Cu.
- Strategic Minerals is now seeking approval to conduct a focused drilling programme which will target new tin prospects in the Redmoor West area.
- The programme will follow on from previous test pits at Redmoor, which included a 2.6m wide intersection averaging 0.46% tin with 0.04% copper and 0.04% tungsten within pit CRT04 and a 1m wide interval averaging 0.17% tin, 0.04% copper and 0.01% tungsten in pit CRT05.
- In September 2021, Strategic Minerals announced that a trench, CRT01 excavated in the Redmoor West area had identified a 20m wide zone of tin mineralisation including a peak assay of 0.38% tin over a 2m wide interval and a separate 4m wide intersection averaging 0.32% tin within the broader zone.
- In relation to project economics, the company notes: “With tin, tungsten and copper prices all significantly higher than those utilised in the Company's update on the project's projected economics, the Directors believe that the project after tax NPV at 8% pa is expected to further increase from the US $163m previously reported. This is despite an expected increase in mining costs since this time.”
*SP Angel acts as Nomad and Broker to Strategic Minerals
Tungsten West PLC (AIM:TUN) – 53p, Mkt cap £95m – Development of Hemerdon paused because of ‘current market conditions’
- Tungsten West reports that it is pausing the current Hemerdon development plan in order to evaluate alternative approaches to restarting mining operations.
- The company comments that since the publication of the BFS in March 2021 and admission to AIM in October 2021, there has been significant and rapid inflation across key consumables for the Hemerdon project.
- These input costs include steel, cement, ammonium nitrate (explosives), power and diesel.
- The Company has now paused development and expects to update the market with a new plan in the coming months, entailing a optimisation of the project based on new assumptions.
- Tungsten West comments: that “Any new plan will likely entail a lower capital cost for redevelopment and a reduced operating cost (from current expectations based on present input costs) at a reduced production rate whilst maintaining the optionality of expanding the production rate in the future”
- The Company has a robust balance sheet position with cash in hand of £28 million as at 31 March 2022 and has not yet drawn down on the previously announced Orion Project Finance Facility.
SP Angel and Digbee ESG joint initiative for mining companies
https://www.uploadlibrary.com/SPAngel_JohnMeyer/DIGBEE_Press_release.pdf
- SP Angel and Digbee, a specialist ESG group, wish to announce their joint initiative in bringing ESG accreditation to mining companies in their drive to meet institutional investment and rapidly evolving ESG standards and regulatory requirements.
- We are rapidly approaching a point where a company’s ESG profile will not simply be a positive investment factor but will become a precondition to investment by many investment funds.
- The guidance and ratings process developed by Digbee is specifically designed to assist mining companies meet the new expectations and ensure directors meet their ESG compliance objectives.
- The initiative will not only quantify and score the ESG profile of qualifying companies but will also highlight ESG improvements and positive performance as companies develop.
- Importantly, the process will enable investment funds to demonstrate the positive results of their investments to their underlying investors and stakeholders which can, in turn, lead to further funding.
- It is imperative that any ESG Rating is seen to be credible. Digbee’s solution was developed to address this: it is mining specific, right sized and future looking, based on an independent assessment of a submission that is supported by evidence and approved by the company’s board of directors. It will also address investor frustration at a lack of comparable or meaningful data.
- For companies at an earlier stage of their ESG journey, recording improvements over time through the Digbee initiative is likely to prove attractive to investment funds as a demonstration of their ESG commitment permitting institutional investment at an earlier stage.
- The direction of travel is now firmly towards renewable sources of energy and a transition to environmental sensitivity. Historically, regardless of the individual facts, miners have collectively been identified as bad actors in this regard. Digbee engagement and ratings should improve the visibility of the good work being done.
- For example, installing, wind and solar generation to displace oil and gas should not only cut energy costs but also reduce carbon emissions. Sharing this energy with a local community may further reduce emissions, strengthen community engagement and lead to long-term sustainable benefits well beyond the end of the mine life. Similarly, a mine closure, thoughtfully done, can leave a positive community legacy that will stand a company in good stead when it is seeking new mining opportunities. Having a third party ESG specialist incorporate these initiatives into a rating accepted by investors will help secure the credit such initiatives deserve.
Jamie Strauss, Founder & CEO, Digbee Ltd: “We are delighted with this joint initiative with SP Angel, the number one ranked advisor to the AIM Mining sector*. SP Angel has acknowledged the importance of presenting their corporate clients to institutional investors with credible ESG disclosure as an increasing prerequisite to encourage new investment. We look forward to working together to achieve a more sustainable mining industry that is recognised for its positive actions ”
John Meyer, Mining Analyst & Partner at SP Angel “Working with Jamie Strauss and Digbee will help prepare our corporate clients for ESG-orientated investment. Mining, exploration, and development companies contribute much to local communities which combined with the potential benefits of increasingly sustainable operations is worthy of recognition. Quantifying the benefits, improvements and legacies of these operations should act a catalyst to further improvement to the benefit of all stakeholders.
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%