SP Angel . Morning View . Wednesday 15 06 22
ECB call extraordinary meeting on soaring rates in more leveraged Eurozone states
MiFID II exempt information – see disclaimer below
Antofagasta PLC (LSE:ANTO) –Los Pelambres concentrate pipeline expected to return to service by the end of June.
Arc Minerals Limited (AIM:ARCM)* – Maiden geochemical survey at the Virgo Project in Botswana
KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF)* – Tulu Kapi operations update
Kodal Minerals PLC (AIM:KOD)* – SU study shows substantial uplift in value on previous economic evaluation
Oriole Resources PLC (AIM:ORR) – Initial Phase 4 drilling results from Bibemi, Cameroon
Power Metal Resources PLC (AIM:POW)* – Drilling continues at Ditau
Kavango Resources PLC (LSE:KAV, OTC:KVGOF)
Rio Tinto PLC (LSE:RIO) – Initial iron ore delivery from Gudai Darri
Sibanye-Stillwater* (JSE: SSW) – Record flooding forces Yellowstone Park to close and suspends Sibanye’s Montana palladium mines
Tertiary Minerals PLC (AIM:TYM)* – Departure of Managing Director
Tesoro Resources (ASX: TSO) – A$5.4m raised to continue progress at El Zorro gold project in Chile
Dow Jones Industrials -0.50% at 30,365
Nikkei 225 -1.14% at 26,326
HK Hang Seng +1.03% at 21,285
Shanghai Composite +0.50% at 3,305
Economics
China – Better than expected May economic data released this morning suggest that China may have gone the worst of the omicron setback, Bloomberg writes.
- Production reported a marginal increase supported by partial reopening in Shanghai, policy stimulus, and improved nationwide transport links.
- Consumer spending remained weak as demonstrated by a further decline in retail sales, although, at a slower pace compared to April.
- Industrial Production (%yoy): 0.7 v -2.9 in April and -0.9 est.
- Industrial Production (%YTD): 3.3 v 4.0 in April and 3.1 est.
- Retail Sales (%yoy): -6.7 v -11.1 in April and -7.1 est.
- Retail Sales (%YTD): -1.5 v -0.2 in April and -1.7 est.
- Fixed Assets Investment (%YTD): 6.2 v 6.8 in April and 6.0 est.
ECB – The Governing Council called for an extraordinary meeting with speculation it may announce measures to bring borrowing costs in more leveraged Eurozone economies down.
- The meeting is scheduled for this morning and is scheduled to start at 10am BST.
- The announcement comes less than a week after the latest central bank’s rate setting meeting.
- Spreads between two-year Italian and German sovereign bond yields pulled back on the news after hitting the highest level since the pandemic on Tuesday.
- Markets were disappointed last Thursday by a lack of detail on potential plant for the central bank intervening to stave off so called financial fragmentation that raised borrowing costs for vulnerable southern European states, FT writes.
- Italian 10 year sovereign yields surged past 4% earlier this week from just over 1% at the end of last year reflecting expectations for tighter monetary policy globally amid accelerating inflation
- Christine Lagarde, ECB President spooked markets with emergency anti-fragmentation tool to be used to protect countries from default caused by higher borrowing costs and lack of lenders
- The ECB has had time to reassess its handling of Greece 12 years ago but is probably more worried that other PIGS ‘Portugal, Italy, Greece and Spain’ and others might be vulnerable.
- Markets spook easily when interest rates and inflation rises particularly with memories of the Sub-Prime mortgage debt crisis and the collapse of Lehman Bros fresh in the memory of many automated trading systems.
- But it is Lagarde’s job to protect the Eurozone from debt crises and to take pro-active action to ensure the financial stability of its member states.
US inflation pushes investors to bet on higher-than-expected rate hike
- The US 10-Year Treasury yield is >3.4% its highest since early 2010 as investors move to anticipate a 75bp rate hike
- Personally, we feel the west was long overdue for a bout of inflation which has been held back by intense competition locally and from globalisation and cheap Chinese imports.
- Covid, combined with higher raw material and other input costs provided ample reason for manufacturers and services to raise prices.
- This would have been just fine if Russia had not invaded Ukraine and jacked oil, gas, fertilizer and food prices so much higher.
- The impact of substantially higher energy and food costs looks alarming but should not cause the Fed to risk stalling the US economy in our view.
- A new accord between the US and China should go some way to restoring trade levels with China as the US continues to re-shore more of its manufacturing industry.
- Taiwan is a longer-term risk in our view and while conflict might rumble on in Donbas, Ukraine for some time it seems increasingly likely that Russia will be severely weakened and potentially forced to withdraw.
President Macron toughened stance on Russia’s invasion into Ukraine after being criticised for his conciliatory tone earlier during a visit at a NATO base in Romania.
- "We will do everything to stop Russia's war forces, to help the Ukrainians and their army and continue to negotiate," Macron said today.
- That marks a change in tone after earlier remarks that it was vital not to “humiliate” Russia and a diplomatic solution needs to be found when fighting ends.
- Macron will be visiting Moldova later today amid growing concerns that the country may be the next to be drawn into the conflict.
- President is speculated to be heading to Kyiv on Thursday and may be joined by German Chancellor Olaf Scholtz and Italian PM Mario Draghi.
Germany – ZEW Economic Sentiment index improved in June climbing to a four-month high, although, the outlook remains weak on the back of the ongoing war in Ukraine and the tightening monetary policy.
- ZEW Survey Expectations: -28.0 v -34.3 in May and -26.8 est.
China aluminium output hits record high in May as many restrictions lifted
- Chinese aluminium output hit an all-time high last month while steel production rose to its strongest in a year.
- Strong metals production figures follow rebounding Chinese industrial data, with output rising 0.7% YoY following a 2.9% drop in April.
- Aluminium production hit 3.42mt, its second consecutive monthly record.
- Power constraints in China that kept aluminium production subdued in the second half of 2021 have been eased, and smelters particularly in the South have restarted operations and added new capacity, Bloomberg reports.
- Steel production hit 96.6mt, less than 3mt shy of the peak hit in May 2021.
Currencies
US$1.0481/eur vs 1.0464/eur yesterday. Yen 134.65/$ vs 134.28/$. SAr 15.992/$ vs 16.000/$. $1.203/gbp vs $1.220/gbp. 0.691/aud vs 0.696/aud. CNY 6.720/$ vs 6.726/$.
- Sterling continues to fall against the US dollar as investors look for a 75bp rate hike today on the back of higher than expected US inflation at 8.6%
- Sterling’s fall appears to be exacerbated by UK trade tension with Europe over the Northern Ireland Protocol.
Commodity News
Precious metals:
Gold US$1,821/oz vs US$1,830/oz yesterday
Gold ETFs 104.8moz vs US$104.9moz yesterday
Platinum US$935/oz vs US$946/oz yesterday
Palladium US$1,828/oz vs US$1,848/oz yesterday
Silver US$21.29/oz vs US$21.34/oz yesterday
Rhodium US$13,450/oz vs US$13,650/oz yesterday
Base metals:
Copper US$ 9,257/t vs US$9,354/t yesterday
Aluminium US$ 2,565/t vs US$2,632/t yesterday
Nickel US$ 25,650/t vs US$25,905/t yesterday
Zinc US$ 3,606/t vs US$3,647/t yesterday
Lead US$ 2,098/t vs US$2,104/t yesterday
Tin US$ 31,915/t vs US$32,525/t yesterday
Energy:
Oil US$121.0/bbl vs US$123.5/bbl yesterday
Natural Gas US$7.238/mmbtu vs US$8.600/mmbtu yesterday
Uranium UXC US$49.75/lb vs $50.90/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$132.0/t vs US$134.3/t
Chinese steel rebar 25mm US$693.3/t vs US$699.6/t
Thermal coal (1st year forward cif ARA) US$219.5/t vs US$218.3/t
Thermal coal swap Australia FOB US$330.0/t vs US$336.0/t
Coking coal swap Australia FOB US$385.0/t vs US$385.0/t
Other:
Cobalt LME 3m US$72,415/t vs US$72,415/t
NdPr Rare Earth Oxide (China) US$143,223/t vs US$143,093/t
Lithium carbonate 99% (China) US$68,077/t vs US$68,016/t
China Spodumene Li2O 5%min CIF US$4,500/t vs US$4,500/t
Ferro-Manganese European Mn78% min US$1,798/t vs US$1,815/t
China Tungsten APT 88.5% FOB US$329/t vs US$332/t
China Graphite Flake -194 FOB US$815/t vs US$815/t
Europe Vanadium Pentoxide 98% 9.8/lb vs US$9.8/lb
Europe Ferro-Vanadium 80% 36.75/kg vs US$36.75/kg
China Ilmenite Concentrate TiO2 US$365/t vs US$365/t
Spot CO2 Emissions EUA Price US$86.5/t vs US$84.5/kg
Brazil Potash CFR Granular Spot US$1,150/t vs US$1,150/kg
Battery News
Scrapping of EV grant criticised by automakers
- Yesterday, the Department for Transport said the plug-in subsidy scheme, which was launched in 2011 to make purchasing an EV more affordable, would be closed with immediate effect.
- The scheme allowed drivers to claim £2500 (reduced to £1500 in December 2021) when purchasing an EV under £32,000 – the scheme has been used to buy nearly 500,000 EVs in the UK over the past decade.
- The Department for Transport said funding would now be "refocussed" towards the main barriers to the electric vehicle transition, such as public charging, and supporting the purchase of electric vans, taxis and motorcycles.
- However, motoring and car industry groups have criticised the UK government's decision to end the grant – the Society of Motor Manufacturers and Traders (SMMT) said the move “sends the wrong message”, while the RAC motoring group warned the decision could "stifle" the ambition to shift most people to EVs.
VW to overtake Tesla as global EV sales leader by 2024?
- According to Bloomberg Intelligence, VW and Tesla will race ahead of the rest of the industry as they battle to become leader in global EV sales.
- The two automakers are predicted to each sell well over 2m EVs in 2024, some way ahead of Chinese battery manufacturer and automaker BYD which is predicted to sell just over 1m EVs that year.
- Tesla have a healthy advantage in the race, having focussed solely on EVs since being founded in 2003. The US company sold 936,222 EVs in 2021, compared to VWs 452,900.
- However, VW have been working hard to improve their image since the emissions scandal in 2015 – the wider range of EVs they offer has helped to accelerate sales when compared to Tesla’s limited offering.
- Tesla currently leads the global EV market with a 14% share, while VW Group held a 12% market share.
- By 2025, EVs are expected to account for 25% of all car sales in China and 20% in Europe.
Company News
Antofagasta PLC (LSE:ANTO) 1,403.5p, Mkt Cap £14bn –Los Pelambres concentrate pipeline expected to return to service by the end of June.
- Antofagasta reports that work to repair the previously reported leak in the underground pipeline which transports concentrates from its Los Pelambres mine to the port of Los Vilos is now underway and that it expects to resume pipeline operations by the end of June.
- The company says that during the period of suspension “the processing plant has been operating at lower rates of throughput, with concentrates being stockpiled at the plant” and that currently “full year copper production for the Group is expected to be at the bottom end of the original 660 - 690,000 tonnes guidance range”.
- Antofagasta confirms its previous statements that the “expenditure to repair the pipeline and bring it back to normal operations is not expected to be material” and says that some “access restrictions remain that will prolong the time required to complete the scheduled work”.
- Dialogue “with the authorities and communities continues, with the aim of removing these remaining road access restrictions”.
Arc Minerals Limited (AIM:ARCM)* 4.1p, Mkt Cap £47m – Maiden geochemical survey at the Virgo Project in Botswana
(Arc holds 72.5% of Zaco and 66% of Zamsort in Zambia. The Cheyeza license is 66% owned by Arc Minerals through its holding in Zamsort.)
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- The Company launched its maiden exploration programme at the Virgo Project acquired late last year and located in Botswana’s Kalahari Copper Belt..
- The programme over two licenses comprising the project (PL 135/2017 and PL 162/2017) includes a soil geochemistry survey followed up by an exploratory drilling programme.
- Licenses cover an area over 210km2 lying within 10km and 50km of two largest copper projects in the KCB, namely, Khomecau’s Zone 5 and Banana Zone.
- Historical soil geochemical survey identified two copper-nickel soil anomalies extending for 3km and 2.5km over two license areas with the largest one located on PL 135/2017 overlying an interpreted contact between Ngwako Pan and D’Kar Formations prospective in Cu-Ag mineralisation.
- Re-interpretation of the geology in license PL 135/2017 suggests the existence of a fold crest that presents a good opportunity to extend the previous soil sampling grid along the fold limb to this crest.
- Exploration drilling will test DKF-NPF contact zone areas as well as interpreted fold crest focusing on identified and potential new anomalies that may be identified from the current geochemical survey.
*SP Angel acts as Nomad and broker. An SP Angel analyst has driven across the Zambian copper belt, flying the British flag, to visit Arc’s licenses West of Solwezi.
KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF)* 0.7p, Mkt Cap £28m – Tulu Kapi operations update
- The Company released an operational update for the Tulu Kapi Gold Project in Ethiopia.
- Last month, the focus remained on advancement of the multi party project fundingto to start construction works at the start of dry season in Oct/22.
- The Company is planning to sign the funding “Umbrella Agreement” in June that reiterates all parties’ commitment to project funding.
- Funding is expected to follow upon meeting remaining conditions that among other things include demonstration of security protection on transport routes and project sites along with administrative points like registration of site related historical costs etc.
- The mining ministry has been kept informed over the course of the progress to ensure authorities are timely notified of all project funding developments.
- The team continued to engage with authorities and local communities with regards to the first stage of resettlement and compensation under agreed protocols.
- The Company received a final pricing proposal from mining contractors and launched a review of the process plant construction contract and pricing amid present international supply chain strains.
Conclusion: Tulu Kapi Gold Project works are focused on closing the funding package among a number of parties with commitments to the be reinstated under the proposed Umbrella Agreement this month followed by signing of individual definitive agreements with project level investors, lenders, offtakers and convertible bond investors over the following few months for the start of construction in Oct/22.
*SP Angel act as Nomad and Broker to KEFI Gold and Copper
Kodal Minerals PLC (AIM:KOD)* – 0.27p, Mkt cap £45m – SU study shows substantial uplift in value on previous economic evaluation
- Kodal Minerals report a substantial uplift in value for its Bougouni lithium project in southern Mali through the publication of a new “Feasibility Study update ("SU")”.
- The ‘SU’ has reviewed the engineering, process recovery and capital cost along with the outlook for improved pricing on spodumene concentrates.
- The long-term average assumed price has been raised to $1,060/t vs $738/t previously. Prices are Free on Board at the port of San Pedro in the Ivory Coast.
- This looks fair versus price current averages of $2,810/t in March and $3,510/t in April (Battery Materials Review).
- Pilbara Minerals Ltd (ASX:PLS) average spodumene price was also US$2,650/t spodumene concentrate in the March Quarter.
- The value of the project has more than doubled to NPV $567m post-tax vs $201m previously.
- The IRR also rises to 91.2% vs 51% post tax indicating good returns for investors.
- The project is highly sensitive to recovery rates and spodumene prices as expected with improvements in both areas
- Freight costs have risen due to an assumed 20% increase in fuel costs to $112/t representing 22% of total cash operating costs.
- Capex rises by 20% to US$154.3m due to higher steel and fuel prices along with a 15% increase in mining cost to US$3.03/t
- Recovery rate now assumed at 74% vs 71% as metallurgical ‘laboratory’ flowsheet test work predicts a recovery of 75% of Li2O to a concentrate grade of 6%.
- Bougouni lithium project key stats SU Metallurgical vs the previous evaluation):
- Price $1,060/t vs $738/t of spodumene 6%
- Production: 238,000tpa vs 218,000tpa previously of 6% spodumene concentrate over an initial 8.5 years
- Recovery: 74% vs 71% recovery of contained lithium based on laboratory metallurgical recoveries of 75%
- Total revenue: $2.15bn at $1,060/t vs $1.4bn of total revenue at $738/t
- Throughput: 2mtpa
- C1 cash costs: $362/t vs $337/t
- All-in C1 Costs $474/t vs $431/t inc.inc. transportation and other selling costs.
- Royalties: $38/t vs $26/t
- Sustaining capital: $8/t vs 8/t
- Capex: $154m vs US$129m
- Payback: 0.8 years vs 1.8 years
- LoM production 2mt vs 1.94mt of concentrate previously .
- Sales: $2.15bn vs $1.4bn
- IRR 91.2% vs 51% post tax
- NPV7% $567m vs $200m post-tax
- We note Kodal has a JORC mineral resource of 21.3mt grading 1.11% Li2O and plans to process 2mtpa from this resource. We expect the SU study to help upgrade this to a reserve in due course.
- By comparison Firefinch’s Goulamina project has a mineral Resource of 109mt at 1.45% Li2O for 1.57mt contained Li2O with a mineral reserve of 52mt grading 1.51% Li2O.
- Pricing: the SU Metallurgical average sales price is based on a start price of $1,250/t for the first two years of production, reducing to $1,200/t for the following 2 years, and then $900/t for the remaining life of mine.
- The original study for the Bougouni Lithium Project proposes a contract mining operation and conventional "milling and flotation" processing facility, capable of treating 2Mtpa of ore, complete with associated infrastructure, to mine and process approximately 16Mt of pegmatite ore over an initial 8.5-year mine life for the production of a 6% lithium concentrate.
Conclusion: The SU study is admirably cautious in its lithium price assumption of $1,060/t for 6% spodumene concentrate which still gives compelling NPV and IRR estimates. Kodal stated it continues to review opportunities for collaboration with third parties, including major mining groups, to support the development of the Project. We look forward to further news on the financing and future construction of the Bougouni project and on the publication of a mineral reserve for the upgrading of the SU to a full feasibility study.
*SP Angel acts as Financial Advisor and Broker to Kodal Minerals.
Oriole Resources PLC (AIM:ORR) – 0.23p, Mkt cap £4.5m – Initial Phase 4 drilling results from Bibemi, Cameroon
- Oriole Resources reports that the first two holes of the Phase 4 diamond-drilling programme at its 90% owned Bibemi gold project in Cameroon have “confirmed the existence of mineralised sub-horizontal quartz veins between the previously defined sub-vertical shear veins”.
- The company says that “these sub-horizontal veins could be important for building a volume of mineralised material at Bakassi Zone 1 … [which is] … one of four prospects at the Project”.
- Assay results are not available for the latest drilling, however, Oriole Resources says that “the two vertical holes in that programme, BBDD050 … and BBDD052 … have intersected multiple sub-horizontal extensional quartz veins. The veins are sulphide-rich and have broader alteration halos than observed in the sub-vertical veins, which could be important in terms of delivering wider zones of mineralisation”.
- “The intersection of the two vein sets/structures is believed to be a strong control on the location of gold within the shear corridor and therefore this confirmation of repeated extensional veining downhole could be significant in terms of building volume”.
- CEO, Tim Livesey,said “It's exactly these types of structural interplays that create the potential for mineable grades and widths in orogenic systems and we are keen to see how the analysis stacks up against the positive results received to date at Bibemi. With a high success rate to date of intersecting gold mineralisation on the licence, we are confident the systems at Bibemi have the capacity to host an orogenic gold deposit”.
Conclusion: The latest drilling at Bibemi is generating an improved understanding of the structural controls to mineralisation and raising the potential to build tonnage. We await news from the continuing drilling programme and the assay results from the drill-holes reported today with interest.
Power Metal Resources PLC (AIM:POW)* 1.1p, Mkt Cap £16m – Drilling continues at Ditau
Kavango Resources PLC (LSE:KAV, OTC:KVGOF) 2.35p, Mkt cap £10m
(Ditau is held within Kanye Resources, a 50/50 joint venture between Power Metal and Kavango, with Kavango being the operator of the project)
- Kanye reports that the third diamond drill hole of the programme, drill hole DITDD005 on the i1 Target is now complete, and the drill rig has relocated to the i8 target, where drilling has now commenced on hole DITDD006.
- Drilling hole DITDD006 follows a Controlled Source Audio-Magnetotelluric (CSAMT) ground geophysical survey and survey data inversion modelling at the target.
- The i8 target was subject to a 5.5-line km CSAMT survey which Kanye believes highlighted a ~4km diameter ring structure.
- Drillhole DITDD006 is targeting the ring of the magnetic geophysics high, where it is coincident with resistivity geophysics high features, near the edge of the i8 Target.
- Kanye comments: “These geophysical signatures appear disturbed in dip and vertical position and are interpreted to relate to an intrusive body. These signatures are significantly different to those seen in the CSAMT survey for the i10 and i1 Targets”
- At the completed hole DITDD005, a final depth of 343.90m was recorded and intersections of extensive conglomerate with a measurable magnetic mineral content were observed.
- Drillhole DITDD004 is currently being evaluated, with Kanye confirming that extensive high magnetic mineral content material was intersected, with samples sent off for assay.
*SP Angel acts as nomad and broker to Power Metal
Rio Tinto PLC (LSE:RIO) – 5,594p, Mkt cap £69bn – Initial iron ore delivery from Gudai Darri
- Rio Tinto reports that it has delivered its first shipment of iron ore from the new Gudai Darri mine in the Pilbara to its Western Australian port facilities.
- The new US$3.1bn mine, described as Rio Tinto’s “first greenfield mine in the Pilbara, Western Australia, in more than a decade ” is currently ramping up production to its planned 43mtpa rate which is expected to be achieved “during 2023”.
- Planned mine life exceeds 40 years.
- Rio Tinto comments that, as previously disclosed, “the company's replacement projects in the Pilbara, including Gudai-Darri, were subject to potential capital increases of approximately 15% due to ongoing COVID-19 restrictions, including labour access and supply chain quality issues”.
- Acknowledging the continuing working relationship and “support of the Traditional Owners, the Banjima People, on whose country Gudai-Darri is situated” Rio Tinto’s Iron Ore Chief Executive, Simon Trott, said that the “commissioning of Gudai-Darri represents the successful delivery of our first greenfield mine in over a decade…[and] … sets a new standard for Rio Tinto mine developments through its deployment of technology and innovation to enhance productivity and improve safety”.
- Describing the Gudai Darri project as “our most technologically advanced iron ore mine”, Chief Technical Officer, Mark Davies, explained that in addition to the use of “autonomous trucks, trains and drills” the mine “will be powered by a 34 megawatt solar farm that is expected to supply about a third of the mine's average electricity demand once construction is complete in August”.
- Rio Tinto maintains its guidance for 2022 iron ore shipments in the range “320 to 335 million tonnes (100% basis) subject to risks around the ramp up of new mines, weather and management of cultural heritage”.
Sibanye-Stillwater* (JSE: SSW) SAR4,098, Mkt cap SAR116bn – Record flooding forces Yellowstone park to close and suspends Sibanye’s Montana palladium mines
- Record flooding in Montana, USA, has forced the authorities to close the Yellowstone National Park and has caused Sibabye to suspend operations at its Montana mines.
- See: https://www.bbc.co.uk/news/av/world-us-canada-61797259
- Sibanye evacuated from the Stillwater and East Boulder mines, with flood water expected to subside in a couple of days.
- Our onsite analyst was at the East Boulder mine yesterday and says they have not seen flooding like this in 23 years.
- Our mining analyst is due to go underground today – lets hope he doesn’t need his snorkel and flippers!
*An SP Angel mining analyst is visiting Sibanye’s Montana mines this week.
Tertiary Minerals PLC (AIM:TYM)* – 0.16p, Mkt cap £2.6m – Departure of Managing Director
- Tertiary Minerals reports that it “has received and accepted a letter of resignation from its Managing Director, Mr. Patrick Cullen, effective 20 June 2022”.
- The company confirms that it “does not expect its strategy or ongoing work programmes in Zambia or Nevada to be materially affected by this change … [and says that, until a replacement is appointed Mr. Cullen’s duties will be] … assumed by other members of the Board”.
*SP Angel act as Nomad and Broker to Tertiary Minerals
Tesoro Resources (ASX: TSO) A$0.055, Mkt cap A$34m – A$5.4m raised to continue progress at El Zorro gold project in Chile
- Tesoro raised the funds at a 7.7% discount to the last closing price and a 19.4% discount to the 15-trading day VWAP.
- Participants will also receive one attaching option for every two shares issued, exercisable at 11 cents within three years from the date of issue.
- Tesoro comments that funds will be applied towards continued exploration and expansion of gold resources and development of the El Zorro Gold Project, general working capital and repayment of an unsecured director’s loan of A$200k + 8%.
- Tesoro currently has recently completed a MRE update to 30.5mt @ 1.12g/t Au for 1.1Moz at 0.3g/t Au cut-off.
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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
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Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471
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*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)
+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.
Sources of commodity prices
Gold, Platinum, Palladium, Silver - BGNL (Bloomberg Generic Composite rate, London)
Gold ETFs, Steel - Bloomberg
Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt - LME
Oil Brent - ICE
Natural Gas, Uranium, Iron Ore - NYMEX
Thermal Coal - Bloomberg OTC Composite
Coking Coal - SSY
RRE - Steelhome
Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite - Asian Metal
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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.
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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%