SP Angel . Morning View . Monday 05 09 22
Metals rise as US dollar pulls back
MiFID II exempt information – see disclaimer below
Amaroq Minerals Ltd (TSX-V:AMRQ, AIM:AMRQ) – Amaroq shows 50% increase in average grade and 30% Increase in contained gold at Nalunaq gold mine, Greenland
Aura Energy Ltd (ASX:AEE, AIM:AURA)* – Submission of application for production and export of uranium from the Tiris project
Capital Limited (LSE:CAPD) – Expanded contract awarded at B2’s Fekola Gold Mine
Chaarat Gold Holdings Ltd (AIM:CGH) – Fatality at Kapan Mine
Culpeo Minerals Ltd (ASX:CPO)* – Phase-1 drilling complete at Lana Corina
Orosur Mining Inc (AIM:OMI, TSX-V:OMI)* – Intersection at Pepas returns 150m @ 3g/t Au from surface
Rio Tinto PLC (LSE:RIO) – Agreement on Turquoise Hill acquisition
Metal prices see support from smelter closures across Europe as energy crisis worsens
- Zinc prices have climbed on major smelter shutdowns across Europe.
- Slovakia’s Norsk Hydro aluminium plant and the Trafigura’s Nyrstar zinc smelter in the Netherlands saw major shutdowns last week.
- Analysts expect additional gas-starved European metal smelters to follow suit as Putin continues to limit supplies to the continent.
- Aluminium prices remain weak on limited demand.
- Analysts estimate 50% of Europe’s aluminium and zinc production output has been curtailed by soaring energy costs.
Gold edges higher on weaker US Dollar, energy concerns weigh on inflation expectations
- Gold prices ticked up after the dollar index reversed its bullish trajectory, falling 0.3%.
- Putin’s efforts to limit Europe’s gas supplies alongside an unexpected OPEC+ production cut in October have heightened inflation concerns.
- Traders are also betting that US jobs data recording marginally higher than anticipated may slow the US Federal Reserve’s aggressive rate hike agenda.
- Focus turns to US inflation data next week.
Copper – Copper prices edged higher on a weaker USD, lower Chinese output, and South American supply concerns
- Copper rallied over the key $7,700/t mark on multiple tailwinds.
- Chinese officials have increased calls for stimulus measures to boost the country’s faltering economy whilst the US dollar’s weakness has added further support.
- Chinese copper inventories have fallen further to their lowest on record at 142,200t.
- Peruvian copper output slid 6.6% in July as Atamina saw a 9.1% drop in July production.
- Las Bambas has seen improved copper production following a reduction in indigenous protests.
- Chilean copper production falls 1.5% in H1 (Cochilco)
- Codelco chairman says output will fall year and remains structurally challenged
- Copper metal moved from China by ICBC after Maike Group’s trading business hits cash wall
- Maike is reported to be suffering significant liquidity issues causing ICBC Standard Bank to withdraw thousand of tons of copper from Shanghai’s customs bonded zone last week. (Bloomberg)
- Maike Metals International Ltd., China’s largest copper importer is seeking help from authorities and state-owned banks.
- ICBC’s move is seen as protecting the metal from being impounded if there is an investigation over inventory financing which could lead the lender, ICBC nursing losing access to the metal.
- Refined copper inventories in Shanghai’s tax-free bonded zone fell by 12,100 tons from a week earlier to 142,200 tons as of Sept. 2, the lowest level since at least 2015, data provided by the industry consultancy SMM Information and Technology Co. shows.
Shanghai nickel premiums climb on weak supply data
- Key Jinchuan nickel premiums have moved higher on weak supply data and stronger seasonal demand expectations.
- Stainless steel prices have climbed marginally higher on expectations of demand restocking in September.
Tin - Indonesia ramps up tin exports by 15.5% in August
- Indonesia exported 8,633mt of refined tin goods in August, a 15.5% increase year-on-year.
- The majority of the country’s tin was bought by China and Singapore in tin ingots and solder bars.
Fertilizer prices rally on producer shutdowns in Europe following soaring gas prices
- North American fertilizer prices bounced 11% last week but remain lower than March highs.
- Ammonia is a key input to nitrogen-based fertilizer production, with prices for the product soaring on intensive gas demands.
- Natural gas accounts for 90% of fertilizer input costs. (Euronews)
Coal - Australian coal prices soar to record levels as power producers seek Russian-gas alternatives
- Newcastle thermal coal prices have jumped past $450/t. Prices hit lows of $57/t in 2020.
- European utilities have rushed to secure alternative energy supplies, with thermal coal a primary beneficiary.
- European gas prices surged 35% yesterday after Putin halted Nord Stream 1 flows.
- Gas prices had softened last week following an effective short squeeze as utility companies and traders were forced to cover derivative hedging. Demand destruction has also been pointed to as an attributing factor.
Dow Jones Industrials Closed at 31,318
Nikkei 225 +0.02% at 27,627
HK Hang Seng +0.01% at 19,228
Shanghai Composite +1.36% at 3,243
Economics
OPEC+ announced yesterday the group will cut production rate by 100,000bpd for October as prices pull back on stronger US$ and global recession fears, Reuters writes.
- Prices have also been dragged lower by a potential supply boost from Iranian supply returning to the market if it is able to resume its 2105 nuclear deal with the West.
- Iran is expected to add 1MMbbl to supply, equivalent to 1% of global demand, if sanctions are eased.
G20 – Summit in Bali on 15th-16th November in Bali with Presidents Xi and Putin expected to join.
- Will be interesting to see how close Putin actually gets to anyone, assuming he dares to turn up.
US – Midterm elections for all 435 seats in the House of Representatives will be held on 8th November
- US suffering some impact from higher oil prices but is generally immune from the sky-high energy prices in Europe.
Germany – A contraction in factory orders accelerated in July extending a series of negative readings to six months reflecting waning growth momentum.
- The decline was driven by a drop in domestic orders (-4.5%mom) while overseas demand actually posted an increase (+1.3%).
- "The development of demand in the manufacturing sector continued to be weak at the beginning of the third quarter in view of the war and high gas prices," said the economy ministry said.
- Factory Orders (%mom): -1.1 v -0.3 9revised from -0.4%) in June and -0.7 est.
- Factory Orders (%yoy): -13.6 v -9.0 in June and -13.4 est.
Finland - Fortum, a Finnish power utility company, signed a €2.35bn bridge funding with the government to cover collateral needs in the Nordic power commodity market, Reuters reports.
- Emergency funding comes at a high interest (~14.2%) and should Fortum draw up on that comes with limitations of pay increases and bonus related payments.
- Fortum said it currently has sufficient liquid funds to meet collateral needs and would only withdraw the funds as a last resort.
- The agreement follows the announcement by the Finish government to offer €10bn in guarantees to the power industry after Russia drastically cut gas supplies to Europe.
UK – Liz Truss was announced a winner in the Conservative Party leadership vote beating former finance minister Rishi Sunak by 81,326 votes to 60,399.
- As a new PM, Liz Truss vowed to press ahead with promises of tax cuts and to offer a relief programme amid a growing energy crisis.
- The plan is to freeze energy bills at or below the current price cap of £1,971 under a £130bn plan considered by Liz Truss, Telegraph reports.
- The price cap was due to jump 80% from October to £3,548 per annum.
- Under the proposed plan the cap will be abolished and regulator Ofgem will be side-lined while the government will set a new unit price that households will pay for electricity or gas.
- New PM is also expected to announce a £40bn support package to lower energy bills for businesses.
Australia – The central bank raised the key rate by 50bp in a fourth consecutive meeting signalling further hikes ahead, Bloomberg reports.
- The cash rate was brought to 2.35%, the highest level since 2015 in a widely expected decision.
- Markets are implying the cash rate to reach >3.2% by year end and ~3.6% by Q1/23.
- Latest headline inflation numbers showed CPI growth accelerated to 6.1% in Q2/22.
- Central bank estimates show inflation peaking at just under 8% later this year and holding above the upper end of its 2-3% target over 2023.
- The A$ is trading little changed to preannouncement levels this morning.
Chile – Constitutional reform to be softened as following rejection by 62% of the vote
- President Gabriel Boric will now need to craft a more acceptable and moderate constitution if he wants to gain >50% of the vote.
- The Left lost a degree of support when an ‘Abort Chile’ performance went viral in which a drag queen removed a Chilean flag from his rectum.
Italy – Elections due 25th September.
- High debt levels are causing concern with the ECB which is preparing to raise interest rates
- Italian bond yields are >4% and run the risk of destabilising the economy
- The ECB has its new TPI ‘Transmission Protection Instrument’ which it could use to support Italy
Ukraine – Some positive news appears to be filtering through from on the offensive on Kherson
- Russia is buying rockets and shells from North Korea and drones from Iran according to reports.
- Reports also indicate Russia is having technical difficulties with the Mohajer-6 and Shahed-series drones
Pakistan sees record flooding, threatening to destabilise region with refugee crisis and add to global food crisis
- A breach in a key water storage lake in Pakistan is causing additional flooding in the country, threatening to displace millions of people following record monsoon rains.
- Melting glaciers have added to the country’s flooding.
- Over 500,000 houses have been destroyed and the Washington Post reports 33m people have been affected.
- Pakistan produced 28.75mt of wheat in 2021 and accounts for c.10% of global rice production.
- Analysts fear the flooding could cause further food price appreciation, contributing to longer-term inflation.
China earthquake sees mass casualties and damage to power and water utilities
- An earthquake in China’s Sichuan province has killed 65 people and caused multiple additional casualties.
- The earthquake is the region’s worst since 2017.
- Reuters reports major damage to power and water utilities and key infrastructure.
- Concerns are mounting over damage to key hydro damns.
Currencies
US$0.9969/eur vs 0.9908/eur yesterday. Yen 141.49/$ vs 140.46/$. SAr 17.084/$ vs 17.321/$. $1.159/gbp vs $1.147/gbp. 0.678/aud vs 0.678/aud. CNY 6.942/$ vs 6.934/$.
US Dollar index – 109.55 / +0.01% on week
Commodity News
Precious metals:
Gold US$1,715/oz vs US$1,709/oz yesterday
Gold ETFs 99.7moz vs US$99.8moz yesterday
Platinum US$858/oz vs US$843/oz yesterday
Palladium US$2,071/oz vs US$2,042/oz yesterday
Silver US$18.38/oz vs US$18.10/oz yesterday
Rhodium US$14,000/oz vs US$13,800/oz yesterday
Base metals:
Copper US$7,733/t vs US$7,640/t yesterday
Aluminium US$ 2,296/t vs US$2,307 yesterday
Nickel US$ 21,458/t vs US$20,529/t yesterday
Zinc US$ 3,214/t vs US$3,191/t yesterday
Lead US$ 1,904/t vs US$1,889/t yesterday
Tin US$ 21,585/t vs US$21,410/t yesterday
Energy:
Oil US$95.4/bbl vs US$95.1/bbl yesterday
Natural Gas US$8.767/mmbtu vs US$8.851/mmbtu yesterday
Uranium UXC US$52.40/lb vs US$52.40/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$94.8/t vs US$94.8/t
Chinese steel rebar 25mm US$584.3/t vs US$582.5/t
Thermal coal (1st year forward cif A RA) US$312.0/t vs US$312.0/t
Coking coal swap Australia FOB US$273.0/t vs US$273.0/t
Other:
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$84,630/t vs US$86,167/t
Lithium carbonate 99% (China) US$69,504/t vs US$69,006/t
China Spodumene Li2O 5%min CIF US$5,010/t vs US$5,010/t
Ferro-Manganese European Mn78% min US$1,231/t vs US$1,214/t
China Tungsten APT 88.5% FOB US$333/t vs US$333/t
China Graphite Flake -194 FOB US$815/t vs US$815/t
Europe Vanadium Pentoxide 98% 7.3/lb vs US$7.3/lb
Europe Ferro-Vanadium 80% 31.75/kg vs US$31.75/kg
China Ilmenite Concentrate TiO2 US$329/t vs US$332/t
Spot CO2 Emissions EUA Price US$73.8/t vs US$76.8/t
Brazil Potash CFR Granular Spot US$860.0/t vs US$860.0/t
Battery News
London-based start-up aims to tackle tyre pollution from vehicles
- London-based start-up The Tyre Collective has developed a device that is attached behind the wheel of a car, truck or bus, designed to capture emissions produced by tyres.
- The box that collects the emissions uses electrostatic plates to draw in shed tyre particles that are charged from friction on the road.
- On a lab scale, the device pulled in 60% of airborne emissions by mass, and on a prototype level gatherinbg one fifth of emissions when attached to a London delivery van.
- The International Union for Conservation of Nature says that tyres are the second leading source of microplastic pollution in oceans.
- In 2017, a study showed a global per capita average of 0.81kg in tyre emissions per year.
- EVs are worse than conventional ICE vehicles at producing tyre emissions, as they typically weigh more and accelerate faster.
- The Tyre Collective’s plan is to begin retrofitting the devices on delivery and bus fleets, with cartridges full of spent tyre emptied at collection points.
Company News
Amaroq Minerals (AMRQ LN) 40p, Mkt Cap £77m – Amaroq shows 50% increase in average grade and 30% Increase in contained gold at Nalunaq gold mine, Greenland
(Formerly AEX Gold (AEXG LN))
- Amaroq Minerals reports a substantial 50% increase in the average gold grade and a 30% increase in the contained gold within the CIM NI 43-101 Nalunaq mineral resource estimate.
- The Total Inferred Mineral Resource of 355,000t now grades 28.0g/t gold for 320,000oz of contained gold, reported according to CIM Definition Standards by SRK.
- In-Mine Inferred - 140,00ooz at a grade of 31g/t
- Extension Inferred – 180,000 at a grade of 26g/t
- Total – 320,000 at a grade of 28g/t
- Previous resources were calculated at a higher 6g/t cut-off grade assuming an $1,500/oz gold price. The reduction of the cut-off grade to 5g/t works in the assumption of a $1,800/oz.
- The new CIM NI 43-101 resource is calculated using a higher assumed gold price enabling a lower cut-off grade. While the new assumed gold price is higher than today’s price we view this as acceptable as high inflation rates will likely cause gold prices to rise once interest rates reduce again.
- The expert geological team at Amaroq have argued that previous resource estimates substantially underestimating the gold grade and total gold resource particularly when compared with recovered grades within the mine. Reducing the cut-off grade appears to have resolved much of this issue and should enable a fairer presentation of the resources as they expand through further drilling.
- There appear to be repeating structures as well as extensions to the known resource which offer potential for a substantial increase in the high-grade resource going forward.
Conclusion: This is an important development for the Nalunaq gold mine done under the supervision of SRK in accordance with the CIM NI 43-101 code. We expect to see further extensions to the high-grade resource from further drilling and look forward to results on the repeating structures.
Nalunaq is one of the world’s highest grade gold mines and we look forward to further news on its potential recommissioning in Greenland.
Aura Energy Ltd (ASX:AEE, AIM:AURA)* 15.5p, Mkt Cap £75m – Submission of application for production and export of uranium from the Tiris project
- Aura Energy reports that it has applied to the authorities in Mauritania for authorisation to produce and export uranium from its 85% owned Tiris project.
- The company has submitted drafts of its “Key Management Plans” to the National Authority for Radioprotection, Safety and Nuclear Security in Mauritania.
- These plans provide information necessary for the authorities to authorise “uranium production at Tiris and for the export of uranium oxide concentrate ("UOC") from Mauritania … [as well as information on the] … management of radiation safety and safe transport of uranium from Tiris, following international guidelines”.
- Aura Energy says that “Mauritania already has well-established laws for the production, transport and export of uranium, as defined by the Law of Nuclear Energy (2010). Mauritania is also a member state of the International Atomic Energy Agency ("IAEA") and a signatory to the nuclear non-proliferation and safeguards treaties”.
- Acting CEO, Dr. Will Goddard, said that Aura Energy looks forward to “collaborating closely” with the authorities in Mauritania which, he said would provide, “a clear pathway for uranium production and export and… [ he explained that] … through the Government's close collaboration with the IAEA, we are confident the process will be smooth and transparent”.
Conclusion: Aura Energy is pressing ahead with plans to develop the Tiris uranium project and the submission of plans to the regulatory authorities in Mauritania represents an important milestone in the project’s evolution towards production. We look forward to further news when the regulators have concluded their deliberations.
*SP Angel acts as Nomad and Broker to Aura Energy
Capital Limited (LSE:CAPD) 88p, Mkt Cap £169m – Expanded contract awarded at B2’s Fekola Gold Mine
- Capital reports that it has won an expanded drilling services contract with B2Gold Corp. (TSX:BTO) at the Fekola Gold Mine, Mali, to the end of 2024.
- Capital will now provide development (diamond & RC) drilling to B2, as well as grade control drilling.
- As a result of the contract, the company has purchased 10 rigs from African Mining Services (AMS), along with associated equipment and staff accommodation.
- Following the purchase from AMS, capital expenditure is now expected to be approximately $60-65 million in 2022 (from $50-55 million).
- Guidance at Fekola is 570,000 – 600,000oz in 2022.
Chaarat Gold Holdings Ltd (AIM:CGH) 9.5p, Mkt Cap £66m – Fatality at Kapan Mine
- The Company reports an employee fatal accident at the Kapan Polymetallic Mine on September 3.
- The area of the accident was closed down and an internal investigation to causes of the accident initiated.
- Mining operations are continuing in all other parts of the mine.
- The Company reiterated production guidance for the year.
Culpeo Minerals Ltd (ASX:CPO)* A$0.16, Mkt cap A$9.3m – Phase-1 drilling complete at Lana Corina
- Culpeo Minerals has received assay results for a further 3 holes at Lana Corina that were drilled as part of the maiden drill program.]
- All holes returned shallow high-grade copper mineralisation including:
- CMLCD005A - 16.4m @ 1.32% Cu, 30ppm Mo from 118m, including;
- 2m @ 4.01% Cu, 75ppm Mo from 131m
- CMLCD004 – 20.1m @ 1.13% Cu, 56ppm Mo from 82m
- CMLCD001A – 7.9m @ 1.20% Cu, 30ppm Mo from 96m.
- Other significant intersections previously reported include:
- CMLCD002 - 257m @ 0.95% Cu, 81ppm Mo from 170m
- CMLCD003 - 173m @ 1.05% Cu, 50ppm Mo from 313m
- CMLCD005 - 81m @ 1.06% Cu, 145ppm Mo from 302m
- Culpeo will continue to refine the geological model at Lana Corina and now aims to test the other high priority, shallow exploration targets identified from its ground magnetic survey.
*An analyst at SP Angel holds shares in Culpeo Minerals
Orosur Mining Inc (AIM:OMI, TSX-V:OMI)* 17p, Mkt Cap £32m – Intersection at Pepas returns 150m @ 3g/t Au from surface
The Anzá project is currently operated by Minera Monte Águila (MMA). MMA is itself a 50/50 JV between Newmont Corporation and Agnico Eagle Mines Limited. MMA have the option to earn-in up to 65% of Anza, with Orosur owning 35%.
- Orosur reports assay results from the first three diamond drill holes drilled at the Pepas prospect, the most northern prospect within the Anza project.
- Pepas is 12km north-northeast of the central APTA prospect, where most drilling has been historically focussed to date.
- Highlights form the recent programme include:
- Hole PEP001 - 3g/t Au from 0m to 150.9m;
- Including 102m @ 3.7g/t Au from 0m
- Hole PEP002 – 37m @ 0.54 g/t Au from 0m
- Hole PEP003 – 32.5m @ 0.6 g/t Au from 23m
- Nine holes have been completed, attempted or are underway at Pepas, although three were terminated due to difficult drilling conditions as a result of broken ground. Orosur expect these holes to be redrilled with some modifications to orientation on the basis of recent results.
- We note that two more rigs are on the way from Mexico that are better equipped to deal with ground conditions at Anza.
- The most encouraging hole, PEP001, was drilled following positive rock chip samples. Orosur comment: “,The hole intersected a quartz vein stockwork and breccia zone from surface demonstrating pervasive stockwork veining related to extensive gold mineralisation.”
- The hole was drilled oblique to the zone of vein-development, with surface exposures of vein development suggest an east-west strike, with a moderate to steep southerly dip.
- Other early holes at Pepas were drilled some considerable distance from PEP001, to test a wide variety of other geochemical and geophysical anomalies or more conceptual targets.
- Given the substantial intersection at PEP001, the company intends to follow up here with future drilling.
- Joint venture - MMA have the option to earn-in up to 65% of Anza
- MMA has informed Orosur that it has exceeded its spending obligation of US$4m for the year ending Sept 6th 2022 as per the Exploration Agreement.
- MMA is now entitled to exercise its Phase 1 Earn-In Right and following this would own 51%, with Orosur owning the remaining 49%.
- MMA may elect to enter into Phase 2 of the Exploration Agreement, which would require MMA to invest US$20m in qualifying exploration expenditure in the Project over a maximum of four years to earn 65%.
- Orosur CEO Brad George is participating in a webinar this evening, with details found here: https://us02web.zoom.us/webinar/register/9616606533042/WN_EM3ye1AUQ960yumI243xTg
Conclusion: Orosur have received a fantastic first intersection at the Pepas target, which has given the Anza project another string in its bow following results at the initial APTA target (59.55m @ 9.61g/t Au). We note that the company remains well funded given Monte Aguilla are funding exploration at the project. We look forward to further news flow from Colombia and the wider Orosur exploration portfolio.
*SP Angel acts as Nomad and Broker to Orosur Mining
Rio Tinto PLC (LSE:RIO) – 4,708p, Mkt cap £59.1bn – Agreement on Turquoise Hill acquisition
- Rio Tinto has announced that it has reached a definitive agreement with Turquoise Hill to acquire the 49% share of Turquoise Hill which it does not already own for C$43/share in cash.
- The agreed transaction represents a total consideration of US$3.3bn and will leave Rio Tinto with “a 66% interest in Oyu Tolgoi with the remaining 34% owned by Mongolia”.
- Chief Executive, Jakob Stausholm, said that the “Transaction will simplify governance, improve efficiency and create greater certainty of funding for the long-term success of the Oyu Tolgoi project” which is expected to produce around 500,000 tonnes of copper per year on average from 2028 to 2036 from a combination of existing open pit and new underground operations.
- The Chief Executive of Rio Tinto’s copper operations, Bold Baatar, confirmed that “Rio Tinto will work in direct partnership with the Government of Mongolia and Erdenes Oyu Tolgoi to realise the full potential of the Oyu Tolgoi project”.
- Turquoise Hill shareholders will be asked to approve the transaction, which has the unanimous approval of the company’s independent directors, “as early as possible in the fourth quarter of 2022”.
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%