SP Angel . Morning View . Thursday 16 06 22
Tin, lithium and nickel prices bounce despite equity fall on monetary tightening
MiFID II exempt information – see disclaimer below
AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) – Uis mine delivers record 13% quarter-on-quarter increase in Q1 tin output
Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF)* – Share purchases by the management
Ariana Resources PLC (AIM:AAU) – Tavsan drilling results
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* – Valuation 48p/s – Indonesia insists that value must be added to tin exports as Chinese tin smelters take break for maintenance
BHP Group Limited (LSE:BHP) – Thermal coal exit scrapped as prices sit around record highs
KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF)* – Saudi Arabia operational update
Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR) – Agreement to sell up to all of 49% interest in Kalahari Metals
Renascor Resources Ltd (ASX:RNU) – Infill drill results reported for Siviour Graphite project
Shanta Gold Limited (AIM:SHG, OTC:SAAGF) – Porcupine Gold Project mining license secured
Sovereign Metals Ltd (ASX:SVM, AIM:SVML) – Expanded scoping study for the Kasiya project, Malawi
Tertiary Minerals PLC (AIM:TYM)* – Drilling at the Jacks copper project, Zambia
New metallurgical processes to drive resurgence in western metal production while reducing China’s dominance of the market for smelting and refining27
- We continue to see sufficient new processes for the refining of critical raw materials and are increasingly confident of the West’s ability to regain some of the production lost to China.
- China strategically grew domestic smelting and refining through low costs and lax environmental practices forcing many Western competitors to give into increasing environmental demands as CCP supported state-owned and para-statal metallurgical businesses undercut their margins.
- In China, policymakers started with the aim of self-sufficiency but their appetite for metallurgy far overshot any semblance of normal self-sufficiency with the result that China now dominates critical parts of the supply chain.
- The next decade looks likely to herald a new era in terms of hydrometallurgical innovation using a number of innovations which are being quietly refined for the production of more valuable metals.
- We suspect these processes may also migrate into the processing and refining of more common metals in future years as their environmental benefits outweigh rising costs of environmental remediation and compliance.
- These new hydrometallurgical plants combined with better process controls for automated management could lead to a significant cut in carbon and other atmospheric emissions as they displace traditional open furnaces which vent directly into the atmosphere.
- It will be interesting to see if any ESG funds will be brave enough to invest in companies developing critical metals mines and processes around these new hydrometallurgical technologies.
Copper – Codelco workers threaten to go on strike due to lack of investment at the Ventanas smelter / refinery in Chile. The smelter, commissioned in 1966 with capacity of 115,000tpa.
- Ventanas smelter capacity today is 189,000tpa of copper cathode.
- It is interesting to see workers threatening to strike over a lack of investment. We hope the RMT rail union might take some lessons from the Codelco union in Chile
Dow Jones Industrials +1.00% at 30,669
Nikkei 225 +0.40% at 26,431
HK Hang Seng -1.71% at 20,943
Shanghai Composite -0.61% at 3,285
Economics
US – The Fed delivered a 75bp hike yesterday evening taking the targeted benchmark range to 1.75-1.50% in an effort to cool down inflation expectations.
- Policymakers revised its targeted policy rate outlook higher with median estimates for 3.4% by the end of 2022, 3.8% in 2023 and 3.4% in 2024.
- This compares to 1.9%, 2.8% and 2.8% expected in March.
- Inflation outlook was increased to 5.2% for 2022, up from a March projection of 4.3% and compared to 6.3% recorded in April month this year.
- Separately, retail sales underperformed expectations in May posting a first decline in five months.
- Weak auto sales and other big ticker items weighed on the headline number suggesting moderating demand for goods amid decades-high inflation, Bloomberg writes.
- Retail Sales (%mom): -0.3 v 0.7 (revised from 0.9) in April and 0.1 est.
- Retail Sales Control Group (%mom): 0.0. v (0.5 (revised from 1.0) in April and 0.3 est.
- PPI rose 0.8% in May vs 0.4% in April ), yoy 10.8% (10.9%),
- NY Empire State manufacturing index -1.2 in June vs -11.6 in May
- NAHB housing market index 67 in June vs 69 in May
Europe – Car sales decline for 11th consecutive month
- Europe’s new-vehicle sales fell 12.5% YoY to 948,149 in May, according to the European Automobile Manufacturers Association.
- Volkswagen saw sales drop 21% YoY.
- Whilst supply chain issues centred around semiconductors caused sales to lag earlier in the year, weakening demand as a result of high inflation and a slowing global economy are causing sales to pull back.
UK – The central bank is expected to deliver a fifth rate increase midday today.
- Main question is whether the MPC will go for a 25bp or decide to accelerate monetary tightening and announce a 50bp change.
- Futures markets expect a 50bp move while Bloomberg estimates are for a 25bp announcement.
Ukraine - President Macron, Chancellor Scholz and PM Draghi arrived on an overnight train in Kyiv this morning.
- The visit comes ahead of an EU summit next week that is due to discuss Ukraine’s bid to join the 27-nation block.
- The meeting with major European economies’ leaders is also expected to discuss acceleration in military aid shipments to Ukraine.
Brazil – In line with expectations, the central bank hiked rates by 50bp to 13.25% in a unanimous decision.
- Strong inflation and tightening monetary policy in developed economies see the central bank to commit to further rate increases of “same or lower magnitude” at the August meeting.
- Market inflation expectations for 2023 are currently around 4.7% marking the higher end of the targeted band of 3.25% +/- 1.5pp, Bloombegr reports.
Switzerland – In a surprising move, the central bank lifted rates by 50bp to -0.25% refocusing from fighting appreciating franc to taming inflation expectations.
- Unexpected decision to raise rates came alongside an upgrade in inflation outlook with the SNB forecasting inflation at 2.8% (2022), 1.9% (2023) and 1.6% (2024).
- That marks a revision on 2.1% and 0.9% guided for 2023 and 2024 in March this year.
- The announcement sent the franc surging as much as 2% against the €.
Germany - CPI rose 0.9% in May vs 0.8% in April and 7.9% yoy in May vs 7.4% yoy in May
France - CPI rose 0.7% in May vs 0.4% in April 5.2% yoy in May vs 4.8% yoy in May
Japan - Reuters Tankan index rose to 9 in June vs 5 in May
South Korea - unemployment rose to 2.8% in May vs 2.7% in April
Currencies
US$1.0393/eur vs 1.0481/eur yesterday. Yen 134.62/$ vs 134.65/$. SAr 15.941/$ vs 15.992/$. $1.207/gbp vs $1.203/gbp. 0.696/aud vs 0.691/aud. CNY 6.709/$ vs 6.720/$.
Commodity News
Precious metals:
Gold US$1,828/oz vs US$1,821/oz yesterday
Gold ETFs 104.7moz vs US$104.8moz yesterday
Platinum US$932/oz vs US$935/oz yesterday
Palladium US$1,852/oz vs US$1,828/oz yesterday
Silver US$21.54/oz vs US$21.29/oz yesterday
Rhodium US$13,450/oz vs US$13,450/oz yesterday
Base metals:
Copper US$ 9,197/t vs US$9,257/t yesterday
Aluminium US$ 2,594/t vs US$2,565/t yesterday
Nickel US$ 25,950/t vs US$25,650/t yesterday
Zinc US$ 3,657/t vs US$3,606/t yesterday
Lead US$ 2,085/t vs US$2,098/t yesterday
Tin US$ 32,705/t vs US$31,915/t yesterday
Energy:
Oil US$119.4/bbl vs US$121.0/bbl yesterday
Natural Gas US$7.525/mmbtu vs US$7.238/mmbtu yesterday
Uranium UXC US$49.45/lb vs $49.75/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$131.1/t vs US$132.0/t
Chinese steel rebar 25mm US$694.3/t vs US$693.3/t
Thermal coal (1st year forward cif ARA) US$228.0/t vs US$219.3/t
Thermal coal swap Australia FOB US$345.0/t vs US$330.0/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$142,693/t vs US$143,223/t
Lithium carbonate 99% (China) US$68,180/t vs US$68,077/t
China Spodumene Li2O 5%min CIF US$4,500/t vs US$4,500/t
Ferro-Manganese European Mn78% min US$1,782/t vs US$1,798/t
China Tungsten APT 88.5% FOB US$329/t vs US$329/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$366/t vs US$365/t
Spot CO2 Emissions EUA Price US$86.1/t vs US$86.5/kg
Brazil Potash CFR Granular Spot US$1,150/t vs US$1,150/kg
Battery News
IEA release energy data for Q122
- The International Energy Agency (IEA) has released it’s monthly energy statistics for countries in the Organisation for Economic Co-operation and Development (OECD) for March 2022.
- The total energy produced in the OECD totalled 899.1TWh, up by 2.2% for the same month y-o-y. For the first quarter, production increased 2.4% y-o-y.
- Of this energy produced in March, it was determined that 49.0% originated from fossil fuels, 34.5% from renewable sources and 16.2% share from nuclear power.
- Electricity from renewable sources increased by 2.0% year-on-year basis, driven by higher solar power production (+7.8TWh - an 18.2% increase), with production showing gains in all OECD regions.
- Electricity production from fossil sources was 440.8 TWh in March 2022, up 5.1% on y-o-y:
- Coal power production that was the main contributor to this increase representing 19.1% of the electricity mix, increased by 7.1% compared March 2021. Electricity from natural gas also increased in March 2022 (+3.9% y-o-y), despite several European countries decreasing their reliance on this fuel source for electricity.
BP acquire large stake in Australian wind, solar and hydrogen 'mega-project'
- BP has agreed to buy a 40.5% stake and become an operator in the Asian Renewable Energy Hub (AREH), confirmed by the oil major without disclosing how much they will pay for the stake.
- The AREH in Western Australia would develop up to 26GW of wind and solar capacity which could be used to produce 1.6m tonnes of hydrogen a year or 9m tonnes of ammonia which is used to transport super cooled liquid hydrogen.
- BP expects hydrogen to account for 10-15% of the global energy and is looking to invest in other large-scale hydrogen and ammonia hubs around the world.
- The company said it was too early to discuss the overall cost of the project, but expected the cost to deliver the full scale of the project to be in the tens of billions of dollars.
- The AREH is expecting to begin producing power by 2029 when the first 4GW stage of the project is completed. The two other phases of 6GW of hydrogen and 14GW of ammonia are to be completed over the following decade.
- The project was fast-tracked by the Australian government in 2020, but stalled a year ago over "unacceptable impacts" on internationally recognised wetlands and migratory bird species - an issue that has yet to be resolved.
Company News
AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) 6.45p, Mkt Cap £72m – Uis mine delivers record 13% quarter-on-quarter increase in Q1 tin output
- Afritin reports that in the quarter ending 31st May 2022, tin production from its Uis mine in Namibia rose by 13% to 152t of metal contained in 239t of concentrates.
- Concentrate production for the quarter came from the processing of 152,243t of ore at an average grade of 0.149% tin compared to the previous quarter’s 151,887t of ore grading 0.137% tin.
- Recovery rates improved to 67% from 64% in the preceding quarter contributing to a 16% reduction in the all-in-sustaining cost to US$23,526/t of contained tin (quarter ending 28th February 2022 – US$27,879/t).
- The company confirms that the expansion of the Uis mine remains on schedule for completion during Q3 of the current calendar year with tin production expected to increase by around 60%.
- Commenting on the results, CEO, Anthony Viljoen, said that “the initiatives aimed at improving our unit costs are yielding positive results” which, he described as “a testament to our team's capability”.
- He also confirmed that the expansion “Is nearing completion and will further strengthen our tin revenue base … [and the] … strong performance of the tin operation provides a solid platform for developing potential lithium and tantalum by-product revenue streams”.
Conclusion: The Uis plant continues to perform well delivering record Q1 performance ahead of the expected September quarter completion of the expansion project which is expected to increase tin output by around 60%.
*SP Angel act for Bushveld Minerals which holds around 9.5% of AfriTin
Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF)* 48p, Mkt Cap £56m – Share purchases by the management
- Steven Poulton (CEO) acquired 100k shares at an average price of ~48p yesterday taking his position to 6.7m shares (~5.7% of outstanding shares).
- Matthew Grainger (Executive Director) purchased 14.5k share at ~48p taking his interest to 2.1m shares (~1.8%).
- Alister Hume (CIO) purchased 27k shares at ~44p taking his position to ~68k shares.
*SP Angel acts as Nomad and Broker to Altus Strategies
Ariana Resources PLC (AIM:AAU) 3.8p, Mkt Cap £42.8m – Tavsan drilling results
- Ariana Resources has announced results from its infill, resource and geotechnical drilling programme at its 23.5% owned Tavsan gold project in western Turkey
- The resource infill drilling programme comprised a total of 3,817.7m of core-drilling in 96 holes within a total programme of 4,354.8m completed between November 2021 and March 2022.
- The main purpose the infill drilling programme was to “support a reclassification of the Tavsan resources, primarily into the Measured and Indicated categories” and Ariana Resources says that the “results received include 55 holes which intercepted gold mineralisation exceeding 1g/t Au over a sample length of 1 meter, to a maximum intercept of 17.8 meters”.
- The results highlighted in today’s announcement include:
- An intersection of 17.8m averaging 2.93g/t gold and 5.1g/t silver from a depth of 12.7m in hole TAV-D66-21 drilled within the Tavsan North Zone; and
- An intersection of 12.0m, also in the Tavsan North Zone, which averaged 1.70g/t gold and 2.9g/t silver from a depth of 41m in hole TAV-D69-22; and
- An intersection of 12.9m , also in the Tavsan North Zone, which averaged 1.57g/t gold and 1.9g/t silver from a depth of 15.9m in hole TAV-D90-22
- In addition to the results from the Tavsan North Zone, “Thirty-eight new drill holes were drilled within the Tavsan Main Zone … [which] … contains the bulk of the Tavsan Mineral Resource Estimate” of “4.49Mt at 1.76g/t Au and 5.0g/t Ag for 253,000 oz Au and 723,000 oz Ag, across all classification categories”
- Ariana Resources says that the new drilling in the Main Zone “shows that the most consistent grades occur within the 0.3km Main Zone resource area, with average intercept values ranging from 1g/t Au to 4g/t Au respectively”.
- The recent programme also included 21 new holes at “the Tavsan West Zone … [confirming that ] … historic drilling was probably terminated too early. However, overall, the mineralisation at Tavsan West Zone is generally lower grade with average intercept values ranging from 0.5g/t Au to 2g/t Au”.
- Ariana Resources confirms that “Updates to the Tavsan Mineral Resource are now well underway and will be reviewed … in the coming weeks”.
- Managing Director, Dr. Kerim Sener, said that the drilling has “continued to reinforce our understanding of the Tavsan gold-silver deposit and have largely extended the footprint of known mineralisation, particularly across the North Zone… [where]… some of the highest grades and widest intercepts of mineralisation in the whole project are now located”.
- He confirmed that “we are expecting a significant improvement in the Mineral Resource Estimate in this area in particular”.
- He also said that “Permitting for Tavsan is now nearing conclusion and the construction stage of the project is due to commence in July, once financing arrangements are completed”.
Conclusion: Recent infill drilling at Tavsan seems likely to both improve the scale and classification of the mineral resource ahead of the expected completion of permitting process. We look forward to an updated resource estimate.
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* – 22.2p, Mkt cap £202m – Indonesia insists that value must be added to tin exports as Chinese tin smelters take break for maintenance
Valuation 48p/s
- The Deputy minister of Indonesia insisted last week at the ITA conference that companies exporting tin ores and concentrates will need to add value locally before exporting tin.
- The government is aiming to quadruple Indonesian GDP through further restrictions following on from a tough stance on copper and nickel in recent years.
- Ministers want to increase Indonesia’s exposure to downstream processing putting the nation at odds with China which now manages much of the world’s smelting and refining for base metals, battery materials and other commodities.
- Indonesia produced some 75,000t of tin last year representing around 20-25% of world mine production with the bulk exported as concentrates.
- Participants at the conference expressed a genuine concern this would disrupt the market as it takes time to build processing facilities as well as building up sufficient stock levels to start-up new facilities.
- In separate news Nine of China’s major tin smelters have elected to cut production for maintenance for 30-50 days from mid-June (Mysteel).
- The smelters which we believe have operated throughout recent lockdowns represent some 75% of Chinese refined tin production will cut run rates to below 40%.
- The move should reduce production by some 12,700t helping to restore the local supply / demand balance following a fall in sales of electronic products in the latest lockdown.
- Market participants are concerned at potential future shortages of tin and may start stocking up, potentially leading to another mad scramble to close short positions as seen in Nickel on 7th March.
*SP Angel acts as Nomad and Broker to Cornish Metals.
BHP Group Limited (LSE:BHP) £24.87, £126bn – Thermal coal exit scrapped as prices sit around record highs
- BHP has announced it will scrap a plan to exit from thermal coal and instead aim to continue working its assets in West Australia before closing by mid-2030.
- BHP seeks to extend the operation’s life from 2026 to the end of fiscal 2030.
- The company has been reviewing its options over the assets for about two years, said that it didn’t attract a suitable offer for the asset.
- The sale has become less and less attractive for BHP as coal prices have surged over the past 12-months, with spot coal at Newcastle port hitting a record $399/t at the end of last month.
- The miner recently divested out of oil and gas through the merger of its assets with Woodside Energy, a deal which many investors argued did not realise the full potential of the value of those assets with oil currently sitting at ~$120/bbl.
KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF)* 0.68p, Mkt Cap £27m – Saudi Arabia operational update
- The Company released an operational update for Hawiah and Jibal Qutman projects owned by G&M, a local JV with KEFI holding a 30% interest, and located in Saudi Arabia.
- Hawiah Exploration License was renewed for five years to 2027.
- Drilling is ongoing at Hawiah and adjacent Al Godeyer area with four drilling rigs currently on site.
- The project remains on target for an updated MRE and PFS to be released in Q4/22 with application for a Mining License planned for 2023.
- At Jibal Qutman Gold Project, the Company is in discussions with authorities with regards to the mining license application.
- The Company is planning to update the 2014 PFS engaging Lycopodium (ASX:LYL) to prepare a 2mtpa CIL Detailed Feasibility Study by Dec/22.
- New study will focus on changes to open pit design and scheduling, processing options and updating the ESIA.
- The team is planning a drilling programme for 2022 to collect data for the geological block model update and metallurgical testing.
- Current MRE stands at 28.4mt at 0.80g/t for ~730koz with ~500koz in the Indicated category.
Conclusion: The Company is rapidly advancing the Hawiah polymetallic project towards the PFS targeted for late 2022 ahead of Mining License application in 2023. At Jibal Qutman Gold Project, the Company is working closely with authorities to finalise all regulatory approvals and commence field activities with the team looking at updating project design and aiming to capitalise on stronger gold price environment.
*SP Angel act as Nomad to KEFI Gold and Copper
Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR) 16.5p, Mkt Cap £28m – Agreement to sell up to all of 49% interest in Kalahari Metals
- Metal Tiger reports that it has entered into a share purchase deed with Cobre Limited to sell up to all of its 49% interest in Kalahari Metals Limited (KML), with Cobre currently holding 49% of the company.
- Cobre will acquire 24.5% of the shares in KML from Metal Tiger for £750k, payable September 2022.
- Metal tiger will also grant Cobre the option to acquire the remaining 24.5% of Metal Tiger's shares in KML, exercisable for either £750,000 cash or the equivalent in Cobre shares.
- Metal Tiger’s two nominee Directors will resign from the Board of KML effective immediately, and Metal Tiger will waive the right to appoint Directors
- KML holds interests in twelve prospective exploration licences covering a total area of 8,595km2 in the Kalahari Copper Belt of Botswana.
- For the year ended 31 December 2021, KML reported net loss of £996,000 and net assets of £2,138,000.
- Metal Tiger also notes that this deal marks the end of Metal Tiger’s project investment division, and the company will no longer consider joint ventures as part of its strategy.
Renascor Resources Ltd (ASX:RNU) A$0.16, Mkt Cap A$345m – Infill drill results reported for Siviour Graphite project
- Renascor reports drilling at its Siviour Graphite project, with highlights including:
- 28m at 8.2% Total Graphitic Carbon (TGC) from 82m
- 25m at 8.4% TGC from 77m, including 18m at 10.0% TGC from 84m
- 31m at 7.0% TGC from 79m
- 39m at 6.6% TGC from 100m
- 21m at 8.8% TGC from 66m
- 28m at 7.2% TGC from 70m
- Drilling confirms the continuity of high-grade graphite within the targeted Inferred Resource zone and have the potential increase the confidence of the Siviour Resource and the scale of the Siviour Ore Reserve.
- Siviour is currently the second largest reported Proven Graphite Reserve in the world and the largest Graphite Reserve outside Africa, with a current LOM of 40 years with production of 150,000tpa of graphite concentrate.
- Renascor still have results from this campaign outstanding and will be reported as they come available.
Shanta Gold Limited (AIM:SHG, OTC:SAAGF) 9.3p, Mkt Cap £97m – Porcupine Gold Project mining license secured
- The Company secured maiden mining license at the Porcupine Gold Project located within the trucking distance (22km) from the existing NLGM gold plant.
- The resource is estimated at ~1.2mt at 1.94g/t for 114koz including 68koz in the Indicated category.
- Mineralization remains open at depth and along strike.
- Plans are for delineation drilling in H2/22 to define the geometry of the mineralised structures and testing their down plunge continuity extension.
Shanta Gold Limited (AIM:SHG, OTC:SAAGF) 25.5p, Mkt Cap £134m – Expanded scoping study for the Kasiya project, Malawi
- Sovereign Metals has released highlights of its expanded scoping study for the Kasiya rutile and graphite project in Malawi.
- The new study is based around the mineral resources estimate released in April 2022 which “confirmed the Project as the world's largest rutile (titanium dioxide) deposit and one of the world's largest flake graphite deposits”.
- Compared to the earlier, 2021, scoping study, the new study shows a 79% increase in the projected post-tax NPV8% to US$1,537m and an unchanged IRR of 36%.
- The study assumes a rutile price of US$1,254/t compared to the company’s reported current spot price of US$2,200/t and a US$1,085/t basket price for graphite which the company compares to a current spot price of US$1,223/t.
- At ‘steady-state’ production, the project is expected to produce 250,000tpa of rutile and 170,000tpa of graphite over a 25 year mine-life based on a 12% higher pre-production capital expenditure of US$372m.
- Operating costs, which benefit from the “deposit size, zero strip ratio of soft, friable high-grade mineralisation from surface, amenability to hydro-mining, conventional processing, deposit location and low transport costs” are 10% lower than the earlier study at US$320/t of product.
- Managing Director, Dr. Julian Stephens, said that the new scoping study “demonstrates Kasiya is a Tier 1 minerals project being the largest natural rutile resource and one of the largest graphite resources in the world”.
- He highlighted the environmental benefits of Kasiya in terms of the “far lower carbon footprint … [of natural rutile] … compared to other titanium feedstocks used in the pigment industry, and natural graphite … [as] …a key component in lithium-ion batteries - crucial to de-carbonising the global economy”.
- The project will rely on hydro and solar power “giving the mine itself a very low carbon footprint”.
- Dr. Stephens also noted that the project “will bring substantial benefits to Malawi in terms of GDP, royalties, taxes, employment and training, local business opportunities and community development.”
- For reference, the April 2022 mineral resources estimate which used a 0.7% rutile cut-off grade showed an ‘Indicated’ resource of 662mt @ 1.05% rutile for 6.9mt; 1.43% TGC for 9.5mt and an ‘Inferred’ resource of 1,113mt @ 0.99% rutile for 11.0mt; 1.26% TGC for 14.0mt
Conclusion: A revised scoping study for Kasiya, based on the April 2022 mineral resources, generates improved economic returns from a modest 12% increase in pre-production capital expenditure compared to scoping work in 2021
Sovereign Metals Ltd (ASX:SVM, AIM:SVML) – A$1.22, Mkt cap A$817m – New presentation highlights vision to become a leading supplier of anode products
- Syrah Resources have issued a new presentation offering granular detail on their vision to become a major producer of anode products.
- The company operated the giant Balama graphite mine in Mozambique producing around 140,000t of graphite a year.
- Natural flake graphite is the key feedstock for active anode material with China back to being a net importer of anode material according to data from Asian Metals.
Tertiary Minerals PLC (AIM:TYM)* – 0.17p, Mkt cap £2.4m – Drilling at the Jacks copper project, Zambia
- Tertiary Minerals reports that diamond-drilling on a historical geochemical copper anomaly at the Jacks copper project in Zambia has encountered copper mineralisation in each of the four holes completed in its initial programme.
- Mineralisation has been identified using portable XRF analysis and 186 samples of drill-core have been submitted “for laboratory analysis with results expected within a few weeks”.
- The soil anomaly, which was first detected during the 1990s extends “over a 16km long trend within the Licence”.
- Commenting on “the successful completion of our first drill programme in Zambia”, Executive Chairman, Patrick Cheetham, said that “We anticipate that the expenditures incurred on this programme will satisfy the requirements for the Company to earn an initial 51% interest in the Licence and we look forward to working with our joint venture partner, Mwashia Resources, on this and the other joint venture licences we have with the same partner”.
Conclusion: Initial diamond drilling at the Jacks copper project has yielded encouraging results and we look forward to the assay results in due course to verify the tenor of the mineralisation.
*SP Angel act as Nomad and Broker to Tertiary Minerals
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%