SP Angel . Morning View . Thursday 30 06 22
Nickel price jump lifts copper on new sanctions
MiFID II exempt information – see disclaimer below
Amur Minerals Corporation (AIM:AMC, OTC:AMMCF)* – Annual results highlight strong cash position amid continued M&A effort
Arkle Resources PLC (AIM:ARK)* – 2021 Results discuss Irish exploration and overseas aspirations
Aura Energy Ltd (ASX:AEE, AIM:AURA)* – Appointment of engineers for the Tiris uranium project
BeMetals Corp (TSX-V:BMET)* – Drilling underway at Pangeni, Zambia
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* – Valuation 48p/s – Drilling results from United Downs
GoldStone Resources (AIM:GRL)* – Final results highlight transition from explorer and developer to commercial gold producer
Greatland Gold PLC (AIM:GGP, OTC:GRLGF) – Exploration season underway at Greatland Gold’s wholly owned projects in WA
Serabi Gold (AIM:SRB, TSX:SBI)* – Lower gold production dents Q1 financial results
Strategic Minerals PLC (AIM:SML, OTC:SMCDF)* – Approval for mining at Leigh Creek Copper
Pro-CCP fraudsters attack US rare earths plant in fake social media posts
- A pro-Chinese government group known as Dragonbridge has impersonated environmental campaigners on social media platforms in an effort to undermine a rare earth project in the US, the FT reports.
- Dragonbridge used fake Facebook and Twitter accounts to claim a US government-funded rare earths refinery being built in Texas by Lynas would “expose the area to irreversible environmental damage” and “radioactive contamination”.
- The group have been tracked by the Australian Strategic Policy Institute since 2019 and have found a network of inauthentic accounts across Twitter, Facebook and Instagram and other forums spreading disinformation about environmental damage caused by Lynas’s rare-earth refinery in Malaysia.
- China’s dominance in the rare earths industry is well-documented and has long been identified by other countries as an over reliance of a strategic material, and a resulting source of geopolitical tension.
- Roskill estimate Chinese TREO production of 110kt in 2020, representing over 55% of global output- although this is expected to be much higher at around 90% due to illegal production.
- Adamas Intelligence estimate that from 2005-2013 more dysprosium oxide was produced illegally in China each year than legally.
- With NdPr prices still sitting strong at record highs of ~$130,000/t, China wants to slow down the development of this western supply chain for financial as well as political motives.
Nickel prices jump 9% on Wednesday afternoon as Norilsk boss sanctioned by UK government
- Nickel prices jumped as much as 9.2% on the LME on yesterday afternoon – hitting $25,425/t on news that Norilsk’s largest shareholder Vladamir Pontanin has been subject to sanctions by the UK government.
- In similar fashion, palladium prices rose 3.4% to $1,941/oz as Norilsk accounts for 40% of new global supply.
- Copper prices jumped higher on the news but met with some selling pressure on expectations for lower growth in China and mild recession in the West
Dow Jones Industrials +0.27% at 31,029
Nikkei 225 -1.54% at 26,393
HK Hang Seng -0.53% at 21,881
Shanghai Composite +1.10% at 3,399
Economics
Currencies
US$1.0431/eur vs 1.0501/eur yesterday. Yen 136.01/$ vs 136.08/$. SAr 16.210/$ vs 16.083/$. $1.214/gbp vs $1.218/gbp. 0.688/aud vs 0.689/aud. CNY 6.696/$ vs 6.705/$.
Commodity News
Precious metals:
Gold US$1,817/oz vs US$1,819/oz yesterday
Gold ETFs 104.4moz vs US$104.6moz yesterday
Platinum US$916/oz vs US$930/oz yesterday
Palladium US$1,957/oz vs US$1,912/oz yesterday
Silver US$20.81/oz vs US$20.82/oz yesterday
Rhodium US$14,000/oz vs US$14,000/oz yesterday
Base metals:
Copper US$ 8,401/t vs US$8,366/t yesterday
Aluminium US$ 2,471/t vs US$2,491/t yesterday
Nickel US$ 23,773/t vs US$23,158/t yesterday
Zinc US$ 3,360/t vs US$3,333/t yesterday
Lead US$ 1,933/t vs US$1,971/t yesterday
Tin US$ 26,774/t vs US$26,800/t yesterday
Energy:
Oil US$115.2/bbl vs US$117.3/bbl yesterday
Natural Gas US$6.484/mmbtu vs US$6.788/mmbtu yesterday
Uranium UXC US$50.65/lb vs US$50.10/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$123.6/t vs US$123.6/t
Chinese steel rebar 25mm US$651.2/t vs US$647.1/t
Thermal coal (1st year forward cif ARA) US$250.0/t vs US$248.0/t
Thermal coal swap Australia FOB US$362.0/t vs US$376.5/t
Coking coal swap Australia FOB US$313.0/t vs US$315.0/t
Other:
Cobalt LME 3m US$70,460/t vs US$70,460/t
NdPr Rare Earth Oxide (China) US$139,268/t vs US$139,073/t
Lithium carbonate 99% (China) US$68,029/t vs US$67,933/t
China Spodumene Li2O 5%min CIF US$4,500/t vs US$4,500/t
Ferro-Manganese European Mn78% min US$1,737/t vs US$1,748/t
China Tungsten APT 88.5% FOB US$327/t vs US$327/t
China Graphite Flake -194 FOB US$815/t vs US$815/t
Europe Vanadium Pentoxide 98% 9.4/lb vs US$9.4/lb
Europe Ferro-Vanadium 80% 36.25/kg vs US$36.25/kg
China Ilmenite Concentrate TiO2 US$362/t vs US$362/t
Spot CO2 Emissions EUA Price US$87.6/t vs US$88.2/kg
Brazil Potash CFR Granular Spot US$1,100.0/t vs US$1,100.0/kg
Battery News
Britishvolt looks to Posco Chemical for supplies
- Britishvolt is working with South Korea’s Posco Chemical Co. to secure supplies of materials for cells as it prepares to open its first gigafactory in England.
- The companies have signed a memorandum of understanding, with Posco Chemical supplying Britishvolt with anode and cathode active materials.
- “Our MoU with Posco paves the way to providing Britishvolt with a secure supply of active battery materials as we start to ramp up pilot production prior to switching to volume manufacture of battery cells” at the plant in northeast England, said Britishvolt founder Orral Nadjari.
- The battery manufacturer is hoping to open its gigafactory next year.
- Europe could have a total commissioned capacity of 450GWh next year, with Britishvolt responsible for 35GWh.
Company News
Amur Minerals Corporation (AIM:AMC, OTC:AMMCF)* 0.765p, Mkt Cap £11m – Annual results highlight strong cash position amid continued M&A effort
- Amur Minerals has released its final results and activities for the 12-months to 31 December 2021.
- The company divested out of the Roper Bar iron ore operation in Australia by selling its 14% interest in the Nathan River Resources for a total consideration of US$5.9 million with a profit of US$0.9 million.
- A core focus of the period for the company during the period was a identifying and completing on partner/ purchase agreement for the Kun-Manie nickel copper sulphide project, with a purchase offer ultimately being voted down by shareholders in May 2022.
- The party looking to purchase Kun-Manie was Stanmix Holding, a Cyprus based company controlled by Vladislav Sviblov, a Russian entrepreneur involved in a number of mining M&A transactions recently.
- Total consideration proposed for Kun Manie was $105m over several tranches with payments ongoing to 2027.
- Sviblov previously acquired Highland Gold (300kozpa producer with 19.1moz in resource, valued at ~$1.7B) in 2020, Trans-Siberian Gold (AIM:TSG) (45kozpa producer with 1.7moz in resource, valued at ~$140m) and Zoloto Kamchatki in 2021, as well as Russian gold assets of Kinross Gold (+500kozpa production with 6.6moz in resource in Russia, valued at $680m in staged payments) in April this year.
- At the end of the period, Amur remained debt free and had cash reserves of US$6,682,000, up from US$2,790,000 at the start of 2021.
- Administration expenses for the 2021 year totalled US$1,790,000 (2020: US$3,083,000).
- Amur comments that the Company’s primary objectives for 2022 includes the completion of the TEO and continuing the acquisition of all necessary information for commencement of the Mining Plan and the required incumbent study work, with a sale of Kun-Manie still the board’s strategy.
*SP Angel act as Nomad and Broker to Amur Minerals
Arkle Resources PLC (AIM:ARK)* 0.73p, Mkt Cap £2.5m – 2021 Results discuss Irish exploration and overseas aspirations
- Arkle Resources reports a pre- and post-tax profit of €0.43m for the year ending 31st December 2021 (2020 – loss of €1.10m) and a year-end cash balance of €79,678.
- The result reflects an operating loss of €0.32m during the year (2020 - €0.65m loss including a €0.33m impairment charge on exploration assets) offset by a profit of €0.75m attributed to “fair value volatility of warrants”. In 2020, the volatility of warrants contributed a loss of €0.44m.
- In his statement to shareholders, Chairman, John Teeling, contrasts the buoyant metal prices and the “substantial drop in exploration expenditure” within the industry leading to frustration as an explorer.
- He also draws attention to “Long delays in renewing exploration permits and some unhelpful political statements” increasing exploration uncertainty in Ireland.
- Mr. Teeling does, however, highlight promising results from the continuing exploration of its 23.44% owned Stonepark zinc project in Co Limerick where a “deep hole in an undrilled part of the block discovered a previously unknown fault … [and points out that] … Large Irish zinc deposits are generally discovered at the base of a fault”.
- He says that while the “Stonepark results may point toward a large zinc target a few hundred metres to the north of the discovery hole”, the best way to progress the project is still under examination.
- Commenting on the gold exploration programme in Wicklow/Wexford, Mr. Teeling described how a “13 hole … [drilling] … programme produced outstanding results from a few holes then either the veins petered out or we missed them in drilling”.
- He confirmed that the results are currently being examined in detail and expressed the view that “There remains huge potential in the area and we intend to drill”.
- Perhaps referring back to his comments about the delays in renewing exploration permits, he said that although Arkle Resources had hoped to drill a “very specific target” in the Inishowen Peninsula of Donegal, “months of delays in renewing licences means we have missed the window, but we intend to drill in the future”.
- Mr. Teeling confirms that Arkle Resources is “examining potential opportunities outside of Ireland” including the recently announced lithium exploration properties in southern Zimbabwe and “a specific exploration opportunity in another jurisdiction”.
Conclusion: Recent drilling success in identifying a promising geological structure at Stonepark has been clouded by frustrations of both a geological and administrative nature elsewhere on other Irish properties and Arkle Resources is considering overseas exploration opportunities.
*SP Angel are Nomad and broker to Arkle Resources
Aura Energy Ltd (ASX:AEE, AIM:AURA)* 10p, Mkt Cap £48m – Appointment of engineers for the Tiris uranium project
- Aura Energy has appointed its team of engineering consultants for the Phase 1 Front End Engineering Design Study (FEED) for its 85%-owned Tiris uranium project in Mauritania.
- The consultants’ team is headed by DRA Global and its subsidiary SENET supported by Wallbridge Gilbert Aztec “as specialist engineers for design and delivery of processing circuit, in partnership with Adelaide Control Engineering”.
- The Phase 1 study will focus “on engineering optimisation with the aim of maintaining low CAPEX and OPEX with the addition of a vanadium by-product recovery circuit” with initial production of 800,000lbs of uranium annually from 2024.
- In tandem with the Phase 1 study, continuing drilling at Tiris is aimed at updating the current mineral resources estimate to support “production expansion to 3-5 million lbs. U3O8 per year early in Tiris mine-life”.
- Both the Phase 1 study and the updated resources estimate are expected to be completed during Q4 2022 and Aura Energy says that “the completion of all phases of the FEED Study … [is] …targeted for Q1 2023, in support of Aura’s final investment decision to progress to initial uranium production at Tiris in 2024”.
- Acting CEO, Dr. Will Goddard, explained that the engineers’ “work will focus on engineering optimisation opportunities with the aim of maintaining or even reducing the already low Tiris CAPEX of US$74.8m and will also seek to identify opportunities to reduce the OPEX of the Project”.
- He said that “We look forward to working with DRA Global, and SENET, with its significant experience in West African project delivery, as well as WGA and ACE, which bring highly specialised engineering skills and experience in modular plants to design and deliver the uranium and vanadium processing circuits”.
Conclusion: Aura Energy has appointed the engineering team and confirmed the timetable for completion of its work on the FEED study laying the basis for an investment decision on the Tiris uranium project and initial production in 2024.
*SP Angel acts as Nomad and Broker to Aura Energy
BeMetals Corp (TSX-V:BMET)* – C$0.145, Mkt cap C$26m – Drilling underway at Pangeni, Zambia
- In an announcement to the Canadian exchange, BeMetals reports that drilling is now underway at its Pangeni exploration project in Zambia where the company is following up last year’s drilling which included the successful intersection of copper-bearing Katangan Supergroup sediments on the Q Prospect with an intersection of 4.14m at an average grade of 0.62% copper in hole Q3-C1 and 5m averaging 0.58% copper in hole D7-C1 at the D Prospect.
- Describing the significance of the Katangan Supergroup rocks in the area, President and CEO, John Wilton, explained that the “Katangan units are well known to host some of the largest sediment-hosted copper deposits along the Zambian Copperbelt”.
- The current campaign is expected to include 4,000m of aircore and 1,400m of diamond drilling to help establish “the scale potential of the Q and D prospects and test other targets with a similar setting to the Q-Prospect (P & G Targets)”.
- Exploration is being funded jointly by BeMetals and Japan Oil Gas and Metals National Corporation (JOGMEC) with aircore drilling “spaced at various distances along the lines from 400-metre, to 200-metre and 100-metre infill centres based upon field results and geological observations of the drill cuttings”.
- The company describes the mineralisation at the Q Prospect intersected in last year’s drilling as “hosted within siltstones interpreted to be part of the Katangan Supergroup… [which] … have been intersected in relatively close proximity to what is currently interpreted to be basement hosted copper mineralization at the SW-Prospect”.
- This geological setting hosts “Many of the world class, sediment-hosted, copper deposits and mines of the Central African Copperbelt”.
- BeMetals says that “Significant copper mineralization has now been intersected in five of the six core drill holes completed at the D-Prospect. The copper grades in many of the 2021 (D7-C1 & D7-C2) and previous drill holes are similar to those for operating large-scale copper mines in the Domes Region of the Zambian Copperbelt” including at First Quantum Mining’s Sentinel operation and Barrick Gold’s Lumwana mine.
- Director, Tom Garagan, explained that BeMetals is “finding many of the mineralization and geological relationships important for sediment-hosted deposits in this region and now we are targeting structures to find the feeder zones for the copper mineralization discovered on the Pangeni Property”
Conclusion: BeMetals is now following up with further early-stage drilling on exploration targets at Pangeni which exhibit similar geological characteristics to established operating mines in the Zambian Copper Belt and where its 2020 drilling intersected meaningful widths and grades of copper mineralisation within the expected host rocks. We look forward to further information as results flow through from the drilling and assay laboratory.
*SP Angel act as broker to BE Metals
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* – 20.75p, Mkt cap £112m – Drilling results from United Downs
Valuation 48p/s
- Cornish Metals has released assay data from nine drill holes targeted at the Trenares Lode in its United Downs project, Cornwall.
- The company confirms that the “drill programme at United Downs project is now complete, with results pending for a further 5 holes drilled into the Mount Wellington, UD Lode, and United Mine targets still pending”.
- Among the results highlighted in today’s announcement are:
- An intersection of 2.42m at an average grade of 2.88% tin and 1.43% zinc from a depth of 80.9m in hole TN-21-002, including 1.04m averaging 4.13% tin and 1.56%zinc in the lower part of the intersection from 83.28mm depth and deeper intersections of 3.34m averaging 0.33% copper, 0.10% tin, 2.48% zinc and 22g/t silver from 229.06m and 0.9m averaging 0.19% copper, 0.25% tin, 10.30% zinc and 18g/t silver from 234.1m depth; and
- An intersection of 1.52m at an average grade of 0.72% tin, 1.69% zinc and 14g/t silver from a depth of 92.98m in hole TN-21-003, including 0.51m averaging 1.43% tin, 2.19% zinc and 15g/t silver from 93.30m depth; and
- 0.62m from a depth of 218.96m at an average grade of 1.46% tin, 5.23% zinc and 18g/t silver, including 0.32m averaging 1.96% tin, 5.49% zinc and 19g/t silver from 219.26m in hole TN-21-004
- Other holes also intersected mineralised zones of up to more than 4m wide with grades of tin associated with zinc, silver and copper.
- The Trenares zone is located 320m south of the historic United Mines area and 720m south of the Consolidated mines which “operated between the early 1700s and the 1870s, mining high-grade copper ores (reported grades of 7.5% copper) to depths of up to 500m below surface”.
- The drill intersections from Trenares are generally narrower and lower in copper, tin and silver grades than those previously reported from the main United Downs drillholes although they show higher zinc grades which may reflect their differing relative positions in the mineralisation halo within the metasediments peripheral to the underlying granite.
- “In addition … [to the results reported today] … 8 drill holes for 2,501m were drilled at the Carn Brea South Target, located approximately 2km southeast of South Crofty mine site”.
- Drilling is now switching to the South Crofty site for an “8,000-12,000m drill programme designed to collect samples for metallurgical testwork as part of the South Crofty Feasibility Study”.
- Drilling at South Crofty “will involve three drill rigs testing the eastern, central, and western part of the mine complex” with the company explaining that two more rigs “are expected to arrive at South Crofty over the next four to six weeks”.
- CEO, Richard Williams, summarised the results from the Trenares drilling explaining that they demonstrated “the presence of multiple zones of mineralisation in an area of the United Downs project that is underexplored, has never been mined and represents a compelling exploration target”.
- Mr. Williams said that the results justify follow up exploration and that “Once we are in receipt of all remaining drill programme assays, we can evaluate the priority targets for follow up work”.
Conclusion: The drilling results from the Trenares section of the United Downs project confirm mineralisation extending as much as 700m beyond the main United Mines area. Further results remain to be received from the Mount Wellington, UD Lode, and United Mine as well as from the Carn Brea South Target. Follow-up drilling is expected once the full results are available while in the immediate future drilling is now switching to starting an 8-10,000m programme of feasibility drilling at South Crofty where two more rigs are expected to arrive shortly.
*SP Angel acts as Nomad and Broker to Cornish Metals.
GoldStone Resources (AIM:GRL)* 5.75p, Mkt Cap £27m – Final results highlight transition from explorer and developer to commercial gold producer
TP – Under Review
- GoldStone Resources (AIM:GRL) has released its final results and activities for the 12-months to 31 December 2021.
- The period is one in which the company made the successful transition from explorer and developer to commercial gold producer, following the maiden gold pour in November 2021.
- GoldStone now continues to hone its process at Homase, reflected in improving recoveries now at over 60%.
- The board maintain that testwork indicates an overall leach recovery of in excess of 82%.
- Post period, the company announced the export of the first commercial gold pour of 42.96 kg gold doré, which included the 14.46kg poured in November 2021.
- Yesterday, the company commented that that an armed robbery took place at its Homase site in June 2022, resulting in the loss of gold with a value of approximately US$350k.
- Since January, the Group has exported and received income from 46.44 kg of gold bullion 1.7 kg of silver bullion (approximately 100 ounces), resulting in US$2.84 million of revenue.
- Losses from operations for the 12 months to 31 December 2021 were US$1,523k (2020: loss of US$610k).
- Cash and cash equivalents as at 31 December 2021 were US$337k (2020: US$701k).
Conclusion: Its been tough at times for GoldStone who have had to face regulatory delays and operational hurdles in what is already an difficult transition from exp/dev to producer – more so given the company are Ghana’s first junior gold mining company. Investors should take confidence in the improving recoveries at Homase, the orebody and prosepectivity of surrounding licenses, as well as the experience of the board and their skin in the game (Bill Trew, Chairman, owns ~29% of the company).
*SP Angel acts as broker to GoldStone Resources. An SP Angel analyst has visited GoldStone’s operations in Ghana.
Greatland Gold PLC (AIM:GGP, OTC:GRLGF) 10p, Mkt Cap £399m – Exploration season underway at Greatland Gold’s wholly owned projects in WA
- Greatland Gold has announced that it has started its 2022 exploration programme at its wholly owned Scallywag, Rudall and Pascalle projects in the Paterson province, Western Australia, where it is also advancing the Havieron project in collaboration with Newcrest Mining.
- At Scallwag, drilling will test “ground Electro-Magnetic ("EM") conductors for Telfer style mineralisation at Pearl, Swan and Swan East targets” while additional ground and airborne geophysics and geochemical soil sampling is aimed at the identification and refining of targets.
- Initial drilling is planned for the Rudall and Pascalle targets. Rudall is located 20km southeast of Havieron while Pascalle is between Havieron and Newcrest’s Telfer gold mine.
- Commenting on the field programmes, Managing Director, Shaun Day, explained that “The 2022 campaign at Scallywag follows encouraging exploration results reported last year, where four of seven holes intercepted gold mineralisation. The maiden drill programme at our newly acquired Pascalle and Rudall tenements is equally significant with Rudall considered to be prospective for Havieron and Telfer style gold-copper occurrences, while Pascalle sits directly between the two world class discoveries of Havieron and Telfer”.
Conclusion: Exploration is underway at the company’s wholly-owned projects in the Paterson district and we look forward to results as the programme develops.
Serabi Gold (AIM:SRB, TSX:SBI)* 41p, Mkt Cap £33m – Lower gold production dents Q1 financial results
- Serabi Gold (AIM:SRB, TSX:SBI) reports a 10% reduction in Q1 post tax profit to US$1.7m (Q1 2021 – US$1.9m) reflecting lower gold sales of 6,675oz compared to the 8,346oz sold during Q1 2021.
- CFO, Clive Line, explained that expected revenue of US$2m from a gold sale expected during the quarter had not occurred due to a delay in shipping and that it would be recognised during the current quarter.
- He said that the company was expecting a “strong result for the second quarter of the year” with this delayed revenue and the impact of “production for April and May of 2022 totalling almost 5,900 ounces”.
- He commented that “Lower production has also impacted the cash cost and AISC for the period. Had initial average production guidance been achieved (9,500 ounces per quarter) the comparable figures could have been approximately US$1,070 and US$1,345 per ounce respectively” compared with the reported US$1,438/oz on a cash basis and US$1,810/oz AISC.
- Mr. Line said that “With improved production levels in the second quarter, it would be expected that these average unit production costs will reduce”.
- Serabi Gold has invested US$2m in its mining fleet during H1 2022 with all the planned equipment “now on site and operational”. In addition, “Two new underground drill rigs … [are] … being delivered in the coming weeks … [to] … boost the efficiency of the underground resource and mine planning drill programmes."
Conclusion: Serabi Gold is expecting a strong 2nd quarter after shipping delays deferred some of Q1’s revenue taking around 10% off Q1 profit.
*An SP Angel analyst has visited the Serabi’s gold mining operations in Brazil
Strategic Minerals PLC (AIM:SML, OTC:SMCDF)* 0.35p, Mkt Cap £7m – Approval for mining at Leigh Creek Copper
- Yesterday afternoon, Strategic Minerals announced that it has received approval from the regulatory authorities (Department of Energy and Mining - DEM) in South Australia for the planned mine at the Paltridge North deposit at Leigh Creek and processing at the nearby Mountain of Light plant.
- The company says that the “approval is in line with expectations and relates to the mining and processing of copper oxide from LCCM's PN deposit” and expresses its confidence that “by the time the … [underlying] … transitional ore is reached, LCCM will have submitted, and had approved by DEM, procedures for extracting and processing the transitional ore”.
- This confidence is “because the submission will largely consist of the existing PEPR documentation with minor variations in relation to the extraction and handling of the transitional sulphide ores. Work on the submission has commenced”.
- In the past, Strategic Minerals has explained that mining of the oxide ores would “cover the first 12+ months of production” and in December last year indicated that around US$6m is required to restart production at Leigh Creek with a further US$4m sought for exploration of copper oxide and sulphides
- Strategic Minerals explains that “As part of the negotiations with DEM in relation to the original conditional PEPR issued in July 2021, LCCM were able to reduce the rehabilitation bond by approximately AUD 800,000 from AUD 3,700,000 to AUD 2,890,000 reflecting reasoned proposals from the Company's mine manager John Speck. As LCCM currently has a AUD 200,000 deposit with DEM, this represents a net funding requirement of AUD 2,690,000”.
- In addition, as part of its review of the application, “DEM have increased the required contribution to the Native Vegetation Fund from AUD 81,398.52 to AUD 139,035”.
- The approval opens the way for Strategic Minerals to progress its funding for the project and Managing Director, John Peters, explained that the company currently has “three interested parties who have signed the Company's Confidentiality Agreement and have been in our data room for a month or more”.
- Mr. Peters commented that recent weakness in the copper price “have impacted the forecasted profitability of the project, the associated drop in the Australian Dollar/US Dollar exchange rate has partially offset the impact on profitability ensuring that the project remains an extremely attractive one from an investors perspective”.
Conclusion: Following a lengthy permitting process approvals are now in place to mine and process the copper oxide ores at Paltridge North and Strategic Minerals is now able to proceed with financing the resumption of production at Leigh Creek.
*SP Angel acts as nomad and broker to Strategic Minerals
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Analysts
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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
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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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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%