SP Angel . Morning View . Thursday 29 09 22
Commodities pull back as BOE driven relief rally fizzles away
MiFID II exempt information – see disclaimer below
Arc Minerals Limited (AIM:ARCM)* – First half results underpinned by Anglo American JV
Arkle Resources PLC (AIM:ARK)* – Interims highlight strong progress on Irish zinc licenses
Aston Bay Holdings (CVE: BAY) – Assay results from Storm Project drilling
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* – Interim results confirm that South Crofty mine de-watering expected to start next year
Kodal Minerals PLC (AIM:KOD)* – Bougouni DMS scenario delivers faster to production and reduced development capex project
Oriole Resources PLC (AIM:ORR) – Auger program identifies multiple structurally controlled gold anomalies at Faré
Orosur Mining Inc (AIM:OMI, TSX-V:OMI)* – FY results highlight strong cash position and Colombia progress
Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF)* – Interim results emphasise opportunity to optimise Empire open-pit plans while awaiting environmental approvals
SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF)* – Results emphasise exploration in Ecuador and the Alpala PFS
Tertiary Minerals PLC (AIM:TYM)* –Tertiary appoints experienced Exploration Manager for Zambia
Private Equity / joint venture opportunity
We are looking for investors / jv partners for an exploration opportunity on a newly discovered copper / moly porphyry system with two adjacent non-porphyry gold and silver deposits over 6km in South-East Asia
- 2,000m in 8 holes already drilled with intersections of visible chalcopyrite and molybdenite both disseminated and in B-veins
- Positive indications of grade at shallow depths. Total funding $2.34m to date. Current implied valuation $4.4m. Best drill result:
- 60m grading 0.4% copper, 0.2% gold plus molybdenum from 24m eg. below the leached cap
- 3m grading 0.51% copper, 9.2g/t gold, and 49g/t silver from 64m down hole
- 2m grading 0.3% copper, 6% zinc and 9g/t gold, 40 g/t silver from 33m down hole related to a massive pyrite-magnetite-sphalerite-chalcopyrite vein
*SP Angel’s role is limited to making introductions. No due diligence or verification of information supplied by the company has been performed. Interested parties should be aware that investment in a private company can present certain risks not present in listed companies (e.g. limited or no liquidity and no rules compelling disclosure of information to investors). This offer is open to professional investors only and is not offered to retail investors.
Gold climbs from lows on minor dollar reversal and easing of treasury yields, remains under pressure
- The dollar’s 1.8% slide from multi-decade highs yesterday provided a temporary respite to gold prices. The bounce was the largest one-day gain for gold in 3 months.
- Gold had fallen to c. $1,620/oz on soaring UST yields and the dollar against a basket of major currencies.
- Prices have recovered slightly from those levels, however, signs of additional acceleration in the dollar’s rally this morning has pushed gold lower from yesterday’s $1,660s highs.
- ETFs continue to shed gold holdings as the dollar’s appeal draws investors looking for safe havens.
Dow Jones Industrials +1.88% at 29,684
Nikkei 225 +0.95% at 26,422
HK Hang Seng -0.66% at 17,137
Shanghai Composite -0.12% at 3,041
Economics
UK – Long term (30y) sovereign bond yields posted the steepest daily drop on record after the BOE announced a fresh round of temporary QE.
- The central bank said it would buy as many long dated government bonds as needed between now and 14 October in a bid to stabilise financial markets.
- Additionally, the BOE said it will postpone the start of a reduction in its bond portfolio that was further expanded during Covid crisis.
- The central bank previously planned to reduce its £838bn of gilt holdings by £80bn over the next year.
- 30y bond yields closed at 3.94% yesterday after touching a 20-year high of more than 5% earlier that day.
- 10y yields fell to 4.01% from 4.59%.
- Sterling gained 1.4% to $1.09 following the announcement of the intervention.
Russia – The sabotage on the twin Nord Stream gas pipelines between Russia and Germany led to four leaks, not three as previously thought, FT reports.
- The Swedish coastguard declined to comment on which pipe was affected by the fourth leak.
- The sabotage of the twin pipelines none of which were in operation caused Norway to send military vessels near its oil and gas installations while Denmark has also increase its security around energy facilities.
Beijing moves again to shore up property sector with expansion of special lending program
- China’s PBOC is moving to support demand amid a rout in the country’s property sector currently weighing on growth expectations.
- City-specific policies are being introduced, with local banks being pressured to boost financing support.
- The Bank states it will ‘further smooth the transmission mechanism of monetary policy and maintain liquidity at a reasonably ample level,’
- Evergrande resumed construction on over 680 development projects this month under direction of Chinese authorities.
Hurricane Ian leaves 2m people without electricity with major damage costs anticipated.
- Ian hit Florida last night, with major water surges and strong winds expected to make it the most expensive storm in US history.
- $67b in damages are expected as a result.
- Winds have eased from 150mph to 75m.
- 2.3m homes have lost power.
Currencies
US$0.9663/eur vs 0.9550/eur yesterday. Yen 144.73/$ vs 144.75/$. SAr 18.009/$ vs 18.201/$. $1.078/gbp vs $1.066/gbp. 0.646/aud vs 0.637/aud. CNY 7.201/$ vs 7.230/$.
Dollar Index 113.49 / -1.47% on week
Commodity News
Soaring Korean manufacturing stockpiles point to weakening global economic demand
- South Korean manufacturing firms have reported over 50% increases in inventory calculated by revenue.
- Steelmaker Posco saw inventories jump from 11.4tn won to 17.9tn won.
- Analysts see the boost in stockpiles as a sign of diminishing global demand, reinforcing expectations of a global economic slowdown or potential recession.
Precious metals:
Gold US$1,646/oz vs US$1,619/oz yesterday
Gold ETFs 97.5moz vs US$97.6moz yesterday
Platinum US$853/oz vs US$839/oz yesterday
Palladium US$2,162/oz vs US$2,052/oz yesterday
Silver US$18.65/oz vs US$18.00/oz yesterday
Rhodium US$14,000/oz vs US$14,000/oz yesterday
Base metals:
Copper US$ 7,364/t vs US$7,221/t yesterday
Aluminium US$ 2,124/t vs US$2,088/t yesterday
Nickel US$ 21,750/t vs US$21,050/t yesterday
Zinc US$ 2,860/t vs US$2,794/t yesterday
Lead US$ 1,822/t vs US$1,756/t yesterday
Tin US$ 20,910/t vs US$20,400/t yesterday
Energy:
Oil US$88.5/bbl vs US$85.0/bbl yesterday
- Crude oil prices edged higher after the EIA reporting US crude inventories fell by 0.2mb last week, with both gasoline (-2.4mb) and middle distillate (-5.3mb) stocks also falling, and refinery utilisation down 3% to 90.6%.
- European energy prices remain elevated as a fourth gas leak was discovered on the damaged Nord Stream pipelines and Gazprom threatened to impose sanctions on Ukraine’s Naftogaz over a contract dispute.
Natural Gas US$7.014/mmbtu vs US$6.695/mmbtu yesterday
Uranium UXC US$49.20/lb vs US$49.20/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$94.9/t vs US$97.1/t
Chinese steel rebar 25mm US$573.8/t vs US$571.1/t
Thermal coal (1st year forward cif ARA) US$278.0/t vs US$273.5/t
Thermal coal swap Australia FOB US$418.0/t vs US$428.0/t
Coking coal swap Australia FOB US$272.0/t vs US$272.0/t
Other:
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$93,026/t vs US$92,668/t
Lithium carbonate 99% (China) US$68,659/t vs US$68,395/t
China Spodumene Li2O 5%min CIF US$5,590/t vs US$5,590/t
Ferro-Manganese European Mn78% min US$1,194/t vs US$1,179/t
China Tungsten APT 88.5% FOB US$32.3/kg vs US$32.5/kg
China Graphite Flake -194 FOB US$835/t vs US$825/t
Europe Vanadium Pentoxide 98% 7.2/lb vs US$7.2/lb
Europe Ferro-Vanadium 80% 30.75/kg vs US$30.75/kg
China Ilmenite Concentrate TiO2 US$316/t vs US$315/t
Spot CO2 Emissions EUA Price US$62.1/t vs US$61.4/kg
Brazil Potash CFR Granular Spot US$680.0/t vs US$680.0/t
Battery News
Toyota eyes lithium supply chain opportunities in Australia
- Toyota and Panasonic’s battery project Prime Planet Energy and Solutions (PPES) is hoping to build a ‘vertically integrated’ battery chain alongside Australian miners.
- The company expects its demand of lithium to hit 180kt by 2030 and 150kt of nickel, 30kt of cobalt.
- PPES has a nickel sulphate purchase agreement with BHP and is looking to add further agreements with other battery metal producers.
Company News
Arc Minerals Limited (AIM:ARCM)* 3p, Mkt Cap £37m – First half results underpinned by Anglo American JV
(Arc holds 72.5% of Zaco and 66% of Zamsort in Zambia. The Cheyeza license is 66% owned by Arc Minerals through its holding in Zamsort.)
(Arc holds 75% in Alvis-Crest (Proprietary) Limited which holds two licenses in the Kalahari Copper Belt, known as Virgo covering >210km2, around 10km south east the recently commissioned Khoemacau Copper in Botswana.)
- Arc Minerals has released its interims for the six months to 30th June 2022.
- The company reports a net loss of £8.46m, largely attributable to the Zamsort/Handa Restructuring.
- Administrative expenses fell to £808k from £1.23m in the same period last year.
- The company’s cash position at the end of the period was £2.35m.
- Key news during the period was the formation of a joint-venture with Anglo American under which investment by Anglo American of up to US$88.5m, including up to US$14.5m in cash, earns Anglo a 70% interest in Arc’s Copper-Cobalt project located in the North-Western province of Zambia.
- The company also launched its maiden exploration programme at the Virgo Project acquired late last year and located in Botswana’s Kalahari Copper Belt.
- Historical soil geochemical survey identified two copper-nickel soil anomalies extending for 3km and 2.5km over two license areas with the largest one located on PL 135/2017 overlying an interpreted contact between Ngwako Pan and D’Kar Formations prospective in Cu-Ag mineralisation.
*SP Angel acts as Nomad and broker. An SP Angel analyst has driven across the Zambian copper belt, flying the British flag, to visit Arc’s licenses West of Solwezi.
Arkle Resources PLC (AIM:ARK)* 0.65p, Mkt Cap £2.2m – Interims highlight strong progress on Irish zinc licenses
- Arkle has made good progress with its Stonepark six-hole drilling programme alongside Group Eleven Resources.
- Arkle and Group Eleven have added a 7th , deeper hole to the programme, potentially drilling as deep as 1,100m.
- The Company is also undertaking a full review and modelling of data from its 12-hole drilling programme on its Wicklow/Wexford licenses where high grade results were recorded.
- A delay to licensing renewals has forced the company to postpone drilling at its Meeneragh prospective gold project from Summer 2022 to 2023.
- Arkle continues to explore alternative investment opportunities, acquiring 3 prospective lithium licenses in Zimbabwe over 163 hectares, alongside potential sub-Saharan African base metals.
- New opportunities outside of Ireland will primarily focus on lithium, cobalt and PGMs, according to the Company.
- Financially, operating loss for the period amounted to €139,000 , (H1/21- €148,000)
- Closing cash balance at the end of the period stood at €120,000 following a €236,000 share issue.
*SP Angel are Nomad and broker to Arkle Resources
Aston Bay Holdings (CVE: BAY) $0.035, Mkt cap C$6.2m –Assay results from Storm Project drilling
- Aston Bay has reported that initial drilling results from hole ST22-10 at the Storm project on Somerset Island in the Nunavut province of Canada has confirmed the presence of sediment-hosted copper and zinc mineralisation beneath the “near-surface high-grade deposits at Storm”.
- The drilling, which was undertaken by American West Metals as part of its option to acquire an 80% interest in the project, tested “large and coincident geophysical anomalies identified across a zone that extends for more than 5 kilometres (km), indicating the potential for a large-scale sedimentary copper system at depth”.
- Hole ST22-10, which “was terminated prematurely due to a mechanical failure, with the deeper mineralised zone still open at depth” intersected 68.8m of copper and zinc sulphide mineralisation from around 230m below surface at a down-hole depth of 227m with assays including a single metre assaying 0.41% copper from 313m depth and 4m averaging 0.27% from 323m down-hole depth.
- Aston Bay says that “Early observations suggest the deeper copper system at Storm is analogous to Central African copper deposit styles”.
- The company says that “Further diamond drilling and surface electromagnetics are planned for next year to follow-up the new deeper discovery as well as the shallow mineralization at the 2750N Zone. The drilling will also aim to define initial resources at the 4100N and 2200N Zones, where thick zones of high-grade copper mineralization have been intersected at shallow depths in historical drilling”.
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF)* – 18.35p, Mkt cap £98m – Interim results confirm that South Crofty mine de-watering expected to start next year
Valuation 48p/s
- In its results for the six months to 31st July which are published today, Cornish Metals reports a loss of C$3.25m (H1 2021 – C$1.10m loss) and a 31st July cash balance of C$61.63m following the £40.5m financing completed in May which included a £25.0m strategic investment by Vision Blue Resources which is now Cornish Metals largest shareholder with a 27.2% interest.
- The company describes progress on its plans to assess the re-opening of the South Crofty tin mine as well as its exploration of the United Downs project located approximately 8km east of South Crofty.
- At South Crofty, “orders have been placed for almost all component parts of the water treatment plant” which is required for the de-watering of flooded sections of the mine and the company expresses confidence that “commissioning of the water treatment plant remains on track for the first half of 2023, with dewatering activities commencing thereafter”.
- Cornish Metals expects to complete additional drilling and a revision of its mineral resources estimate for South Crofty and associated metallurgical work followed by a feasibility study on the resumption of mining by the end of December 2024.
- Drilling resumed at South Crofty in July with a planned 8-12,000m programme and will include the recovery of samples for metallurgical testing which “will provide key information for the mineral processing flowsheet, especially the amenability of the mineralized zones to ore sorting which, if successful, will present an opportunity to deliver higher grade feed and reduce the size of the processing plant”.
- Planned work over the next 30 months also includes engineering studies and “construction of the processing plant, refurbishment of underground facilities and other on-site early works”.
- At United Downs, the company completed an initial 10,159m programme of 26 drill holes testing the UD Lode, the former United and Mount Wellington mines and the Trenares Lode, located 320m south of the historic United Mines area, in May 2022.
- Drilling intersected multiple mineralised structures containing tin, copper, silver and zinc and identified “High-grade copper - tin mineralization … down dip beneath the historic United Mines” and confirmed a “transition from high-grade copper to high-grade tin at depth as well as increasing tin grades with depth … similar to the mineralization transition seen at South Crofty”.
- Previously, Cornish Metals has explained that “High-grade copper and tin intersections beneath United Mines have now been observed over a strike length of approximately 1,350m and the zone is open along strike and to depth”.
- The company summarises the exploration programme at United Downs as confirming “management's belief in the potential to develop a Mineral Resource in the United Downs project area, especially the down dip section of the United Mine where high-grade copper, tin and silver grades were encountered … [and says that it] …. is considering the next steps for advancing the United Downs project”.
Conclusion: The completion of the drilling at United Downs in May has shifted the emphasis of Cornish Metals’ operational activity to South Crofty where the company expects to start de-watering the flooded parts of the mine in mid-2023. The de-watering forms part of a work programme to assess a resumption of mining which is expected to deliver a feasibility study by the end of 2024.
*SP Angel acts as Nomad and Broker to Cornish Metals.
Kodal Minerals PLC (AIM:KOD)* 0.29p, Mkt Cap £49m – Bougouni DMS scenario delivers faster to production and reduced development capex project
- The Company is considering to reduce development capital cost and reduce time to first production using dense media separation plant option at the flagship Bougouni Lithium Project in southern Mali.
- The DMS plant will run at 1mtpa for initial of four years producing SC5.5 (5.5% Li2O spodumene concentrate) with milling and flotation circuit to be added in later years and funded from internally generated operational cash flows.
- Development timeline is expected to be reduced to 12 months compared to 22 months for a full flotation plant.
- Initial capital outlay is estimated to be cut to $65m compared to $154 for straight to milling/flotation option.
- The feed will be sourced from the Ngoualana deposit that hosts coarse grain spodumene delivering high DMS recoveries.
- Additional high grade coarse grain material may come from adjacent exploration properties where previous drilling intersected high grade pegmatite veins including Bougouni South, Marigo and Orchard.
- DRA Global, an engineering consultant, suggested a dual stream modular crushing and dual stream DMS setup allowing for better flexibility of operations minimising any unplanned downtime.
- Mining side of operations remained unchanged utilising mining contractor running conventional drill/blast/load/haul/dump schedule.
- Key economic parameters for the DMS feasibility update (DMSU) include:
- 3.9mt at 1.13% Li2O mining inventory to be processed over 3.9y LOM;
- 1.0mtpa DMS plant processing capacity, down from 2mtpa estimated originally;
- DMS recoveries assumed at 63.5%, a 10pp reduction given no milling/flotation;
- 130ktpa SC5.5 forecast annual production, down from ~240ktpa reflecting lower scale;
- On site unit costs (mining/processing/G&A) estimated at $436/SC, up on $362/SC, reflecting lower economies of scale from smaller mining/throughput rates;
- TCC (on site plus selling costs) estimated at $561/SC, up on $474/SC.
- Post tax NPV7% and IRR are estimated at $420m and 274% using an average spodumene price of $2,080/t FOB (price starts at $2,950 in first year and ends at $1,400/t in the last year).
- The study is based on the Ngoualana MRE only (5.1mt at 1.2% Li2O) and does not include upside from milling/flotation processed material to be sourced from Sogola-Baoule (12.2mt at 1.1% Li2O) and Boumou (4mt at 1.0% Li2O).
- The Company will proceed to infill, metallurgical and geotechnical drilling at Ngoualana now and present an updated production plan to the Mining Ministry under a formal application to secure approvals for the DMS development option.
Conclusion: DMS development option highlights released today demonstrate a potential to significantly cut development capital and time to first production at the Bougouni Lithium Project allowing to capture near term advantage of high lithium concentrate prices. Operating parameters point to a potential to deliver $420m in post tax NPV7% excluding additional upside from milling/flotation material that will further extend LOM and add to project headline economics. Additionally, lower initial development capital outlay means significantly reduced project funding risks.
*SP Angel acts as Financial Advisor and Broker to Kodal Minerals.
Oriole Resources PLC (AIM:ORR) – 0.16p, Mkt cap £3.5m – Auger program identifies multiple structurally controlled gold anomalies at Faré
(IAMGOLD has the option to spend up to US$8m to earn a 70% interest in Senala)
- Oriole reports it has received results from a recently completed 10,695m auger drilling programme, in 1,307 holes, at the Faré prospect.
- Gold assays for 2,551 samples have identified multiple structurally controlled gold anomalies outside of the previously identified footprint, although follow the same north-easterly trend as the existing Faré North, Faré South and Faré Far South mineralisation.
- Results show a C.1.3km anomaly to the north-east of Faré North, associated with a significant, >2km-long, arsenic anomaly.
- At Fare South, Oriole has a JORC- inferred resource of 155koz at 1.26g/t, within a larger JORC-exploration Target of 190-280koz.
- The company also notes the formalisation of IAMGOLD's 51% interest in Senala is currently underway, following confirmation of the first US$4 million expenditure commitment on the Project.
- IAMGOLD has commenced its Second Option to spend a further US$4m by 28 February 2024, funding the recent auger programme.
Conclusion: Orosur continue to delineate their highly prospective licenses in Senegal, through both regional expploraiton techniques and moth recently a comprehensive auger programme. We look forward to upcoming news flow as exploration progresses at Senala, as well as the company’s gold exploration assets in Cameroon.
Orosur Mining Inc (AIM:OMI, TSX-V:OMI)* 11.25p, Mkt Cap £21m – FY results highlight strong cash position and Colombia progress
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 has released its audited financial results for the year to 31st May 2022.
- The company reported a total loss of $1.74m vs $1.5m last year.
- Orosur’s cash position at year-end was $4.2m.
- Orosur spent $143k on exploration over the period, with the bulk of money spent by Monte Aguila on the Anza project as per the Exploration Agreement which is not included on Orosur’s FS.
- Strong progress was made at Anza during the period, with multiple high-grade gold intersections including 59.55m @9.16g/t Au and 61.75m @2.05g/t Au.
- Regional exploration also highlighted two new prospect areas, Pepas and Pupino, which were followed up with drilling.
- Post period, the Company announced assay results from the Pepas including 150m @ 3g/t Au from surface.
- Orosur’s partner, Monte Aguila, informed the Company that it had met its expenditure of US$4m for the year and affirmed its intention to progress to Phase 2 of the exploration agreement.
- In Brazil, the Company announced that it had signed a JV agreement with Meridian Mining UK in relation to the Ariquemes tin project in the State of Rondonia in western Brazil.
- In Argentina, the Company announced that it had signed a JV agreement with private Argentinean company Deseado Dorado in relation to the El Pantano Gold/Silver Project in the Province of Santa Cruz in Argentina.
- Initial soil sampling at El Pantano returned positive results over a 3.3km strike length, including gold results in excess of 100 ppb Au.
*SP Angel acts as nomad and broker to Orosur Mining
Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF)* 22.5p, Mkt Cap £36m – Interim results emphasise opportunity to optimise Empire open-pit plans while awaiting environmental approvals
(Phoenix holds 80% of the Empire mining property in Idaho)
- Phoenix Copper reports a loss of $1.05m for the six months to 30th June 2022 (H1 2021 - $0.20m loss) and a 30th June cash balance of $9.05m.
- The loss is reported “after charging an unrealised foreign exchange loss on sterling denominated assets of $503,593 (2021: foreign exchange gain of $303,077)”.
- Environmental permitting work for the Empire open-pit mine saw the submission of an initial operating plan to the regulatory authorities in 2021 and permitting and optimisation of the engineering and development plans is continuing.
- The company has previously explained that there is “no statutory timeframe for approval of the Plan of Operations”
- In June, drilling resumed with a 5,000ft programme at the Empire pit site to collect samples of the oxide ore to test further the environmentally benign ammonium thiosulphate process for precious metals recovery.
- Further drilling at the North Pit and Red Star areas is expected during October with geophysical programmes completed at the Red Star, Horseshoe and Navarre Creek expected to assist in the definition of targets for drilling in 2023.
- Chairman, Marcus Edwards-Jones, confirms the company’s long-term confidence in metals demand despite volatility in both sterling and copper which “currently sit at around 30% below their highs for the year … [and he says that] … it makes sense to bide our time, refine our plans, and make sure that we can fully realise the value of the Empire Mine … [during a period when] … Many market commentators predict a global recession in the near future. If a slowdown does occur, as we await permitting and prepare to go into production, this may ultimately work in our favour, leading as it should, to a sharp recovery in the copper price when the global economy rebounds.”
Conclusion: Phoenix Copper’s plans for its open pit copper operation remain subject to environmental approval which gives the company time to refine its development plans at a time of commodity market instability and to explore its other targets. We share Phoenix Copper’s longer-term confidence in the future of copper.
*SP Angel acts as nomad to Phoenix Copper
SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF)* 14p, Mkt Cap £363m – Results emphasise exploration in Ecuador and the Alpala PFS
- Solgold reports an operating loss of US$1.7m for the year ending 30th June 2022 and a year end cash balance of US$26.1m.
- The operating loss represents a “decrease of US$22,070,524 over the prior year. The decrease in the loss is attributable to the remeasurement of the NSR financial liability offset by the tax expense”.
- Solgold clarifies that the non-cash “remeasurement was triggered by Board approval in April 2022 of the Preliminary Feasibility Study ("PFS") resulting in amendments to anticipated cash flows of the NSR agreement due to changes in the timing of construction and the mine life and updated production volumes”.
- Operationally, Solgold spent US$66.3m on exploration last year and emphasises the discovery of “significant copper-gold mineralisation at surface at the Cacharposa porphyry copper-gold target at Porvenir as well as discovery of significant geochemical and geophysical hallmarks of large porphyry systems identified at several project areas, including the Helipuerto, Rio Amarillo and Cisne Loja projects”.
- Solgold also reiterates the revised mineral resources estimate for its Tandayama-America deposit at Cascabel, announced in May, which builds on the initial estimate released in October last year, and shows a measured an indicated resource of 528.5mt at an average grade of 0.24% copper and 0.19g/t gold (reported as 0.36% copper equivalent – CuEq) plus an inferred resource of 105.1mt at a grade of 0.24% copper and 0.18g/t gold (0.36% CuEq).
- The company also confirms that it “has focused on completing the critical study work and data collection for the Preliminary Feasibility Study” for its Alpala deposit at Cascabel which was released in April and showed a 25mtpa underground block-caving operation producing an average of 132,000tpa of copper, 358,000ozpa of gold and 1mozpa of silver over an initial 26 years mine life.
- The company’s study showed that pre-production capital investment of US$2,746m followed by post-production sustaining capital of a further US$2,136m is expected to generate an after-tax NPV8% of US$2,907m and an IRR of 19.3% using base case commodity prices of US$3.60/lb for copper, US$1,700/oz for gold and US$19.90/oz for silver.
*SP Angel acts as Financial Advisor to SolGold
Tertiary Minerals PLC (AIM:TYM)* – 0.245p, Mkt cap £3.8m - Tertiary appoints experienced Exploration Manager for Zambia
- Tertiary Minerals has appointed Richard Belcher as Exploration Manager.
- Richard was most recently a senior consulting geologist for Altus Strategies before its merger with Elemental Royalties.
- He is a Chartered Geologist with a BSc in Exploration Geology from Cardiff and a PHD from Stellenbosch University.
- Tertiary are due to hold their first joint technical meeting with First Quantum Minerals (TSX:FQM) next week having announced a collaboration this month.
*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
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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 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%