SP Angel . Morning View . Wednesday 12 10 22
IMF cuts growth outlook citing ongoing issues - high rates, strong inflation and Covid
MiFID II exempt information – see disclaimer below
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.
Bluerock Diamonds PLC (AIM:BRD)* – Sale of 10.22ct stone for US$122,888
Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) – Another quarterly production record at the Blanket mine, Zimbabwe
Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) – Progress of the drilling campaign at the East Zone of the BHA project
Condor Gold PLC (AIM:CNR, TSX:COG, OTC:CNDGF)* – Largest shareholder appointed Chairman
East Star Resources PLC (LSE:EST) – Drilling to commence immediately at the Talairyk Heavy REE Project
Kavango Resources PLC (LSE:KAV, OTC:KVGOF) – CSAMT survey flown on KCB
Petra Diamonds Limited (LSE:PDL, OTC:PDLMF) – Tender offer for $336.7m of 2026 Senior Secured Notes
Sunrise Resources PLC (AIM:SRES) – 250-ton bulk sample of Hazen project pozzolan, Nevada
General Motors invests $20m in Australian nickel venture
- General Motors and Queensland Pacific Metals have announced the formation of a strategic collaboration, which sees an initial investment in the company of US$20m and a further conditional investment of up to US$44m.
- The agreement stipulates GM is granted the right to purchase all uncommitted nickel and cobalt sulphate produced in the first 15 years of Phase 1 of the TECH Project, as well as the right to purchase all of nickel and cobalt sulfate under a Phase 2 expansion of the TECH Project.
- QPM intend on importing nickel laterite ore to Townsville from New Caledonia for processing at the TECH facility, where production is expected to begin in 2023.
- Ore will be processed using a patented recovery and recycling process developed by the Altilium Group, which is seen as an environmentally friendly process for extracting nickel, cobalt and other precious metals from laterite ore
- QPM’s planned refinery is expected to produce around 16,000t of nickel sulphate per year, with LG and Posco each signing offtakes for 10,000t of this.
- GM will therefore take the remaining 6,000tpa and has the right to claim the additional material once the LG and Posco deals expire.
- GM will also get 800tpa of cobalt sulphate, rising to 1,800tpa.
Gold flat as investors hold fire before tomorrow’s US inflation data, despite BoE chaos
- Gold prices have moved little over the past 24 hours, with investors waiting for Fed guidance from tomorrow’s US CPI reading.
- The flat trading comes despite additional turmoil with the Bank of England, with Governor Bailey giving pension funds a deadline to raise collateral by Friday.
- Whilst the gold price has fallen 5% against the dollar this year, it has risen 17% against the Pound and 12% against the Euro.
- The gold price has continued to weaken as the dollar index and real rates press higher.
- Leveraged bets on the gold price has jumped this week, suggesting some dip-buying sentiment from traders.
- Hedge funds were net bearish on gold for much of September but have flipped to bullish over the past week.
- US Treasuries have continued to fall, with 30-year yields hitting their highest since 2014. Yields rise when bond prices fall.
Copper steady as China’s demand outlook remains gloomy but balanced by supply concerns
- Copper is little changed despite Chinese spot copper contracts hitting a discount to futures prices for the first time in a fortnight.
- The physical discount is the lowest since March 2021, pointing to weak demand from Chinese industrial buyers.
- Global inventories have climbed again, now up 20% from September lows. They remain both seasonally and historically low, however.
Dow Jones Industrials -0.32% at 29,203
Nikkei 225 -2.64% at 26,401
HK Hang Seng -1.82% at 16,904
Shanghai Composite +0.20% at 2,980
Economics
The IMF cut its global growth outlook to 2.7% in 2023 compared to its July estimates for a 2.9% reading.
- Among major drivers behind the downgrade, the IMF named higher rates, rising energy costs and food prices as well as ongoing Covid restrictions in China.
- The fund held its growth estimates for 2022 unchanged at 3.2% reflecting stronger than expected output in Europe but weaker performance in the US.
- The outlook “rests critically” on the successful calibration of monetary policy, the course of the war in Ukraine and the possibility of further pandemic related supply side disruptions, the IMF said.
- US growth is expected to grow 1.6% (-0.7pp from July) and 1.0% (unch) in 2022 and 2023.
- Euro Area growth is forecast to expand 3.1% (0.5pp) and 0.5% (-0.7pp).
- China is estimated to expand 3.2% (-0.1pp) and 4.4% (-0.2pp).
China – Credit supply improved more than expected in September as the government ramped up infrastructure spending and announced plans to support housing demand.
- New medium and long term loans to businesses increased CNY 1.3tn, the most in three months and almost doubling from a year ago, Bloomberg writes.
- New short term corporate loans increased after contracting in the previous two months.
- The PBOC urged major state owned banks to boost loans to the economy in late August and told the six largest banks to extend at least CNY 600bn of financing to the property sector in the final four months of the year.
- Aggregate Financing (CNY tn): 3.53 September v 2.43 August and 2.75 est.
- New Yuan Loans (CNY tn): 2.47 September v 1.25 August and 1.80 est.
Beijing reiterates commitment to Zero-Covid policy in hit to base metals outlook
- The CCP’s mouthpiece paper, People’s Daily, has praised lockdowns and Beijing’s current approach to Covid as the right one.
- This was the 3rd supportive piece of the week.
- Analysts and traders have raised the potential that the National Congress, starting Sunday, may usher in a new era of Covid policy from Beijing.
- It appears the CCP is keen to dispel these rumours.
- Zero-Covid policy has been a major weight on metals demand, with manufacturers and end-users limited by supply chain bottlenecks and factory shutdowns.
- Shanghai has started shutting down schools and other venues this week but have not announced a nationwide shutdown.
China’s credit growth for September beats forecasts in boost to crippled property sector
- Aggregate financing, which is used by analysts to measure China’s credit growth, hit $493bn in September, higher than forecasts expected.
- Credit growth in China traditionally rebounds from summer lows in September and October.
- The M2 money supply rose 12.1% in September yoy.
- Banks have been under pressure from authorities to boost loans to developers.
Japan – The yen lost all its gains from the recent FX intervention as the currency continued to slide amid growing gap between local interest rates.
UK – The economy contracted more than forecast in three months to August as the cost of living crisis hit household spending and business activity.
- GDP was down 0.3%qoq in the three months to August, compared to estimates for -0.2%qoq.
- On Tuesday, the IMF released updated UK growth estimates forecasting GDP growth of 3.6% (unch from July) in 2022 and 0.3% (-0.2pp) in 2023.
- The BOE suggested privately to bankers that it could extend its emergency bond-buying programme past this Friday’s deadline, FT reports.
- The central bank was forced to step in two weeks ago with a £65bn programme to buy government bonds that led pension funds to record losses on its portfolios of long term securities following a sell off in UK debt.
- The programme was guided to end this Friday (October 14).
South African port strikers set to meet with management today as exports remain hampered
- Industrial action across South Africa’s Transnet operations have disrupted the flow of goods since Oct. 7th.
- Fruit farmers have raised concerns over delays to exports.
- Coal and iron ore miners have told authorities that further delays risk hitting production.
- The rand has extended its decline against the dollar for a 6th-straight day.
Currencies
US$0.9718/eur vs 0.9701/eur yesterday. Yen 146.11/$ vs 145.63/$. SAr 18.183/$ vs 18.139/$. $1.102/gbp vs $1.103/gbp. 0.628/aud vs 0.627/aud. CNY 7.166/$ vs 7.186/$.
Dollar Index 113.14 / +1.72% on week
Commodity News
Indonesia’s September tin exports fall 19% on month
- Sept tin exports fell to 7,004t, values at $155m, vs 8,633t in August.
- Jan-Sept tin exports are 10.6% higher than last year at 58,000t – valued at $1.95bn.
Precious metals:
Gold US$1,670/oz vs US$1,665/oz yesterday
Gold ETFs 96.7moz vs US$96.8moz yesterday
Platinum US$897/oz vs US$895/oz yesterday
Palladium US$2,157/oz vs US$2,171/oz yesterday
Silver US$19.22/oz vs US$19.36/oz yesterday
Rhodium US$13,900/oz vs US$14,000/oz yesterday
Base metals:
Copper US$ 7,566/t vs US$7,511/t yesterday
Aluminium US$ 2,224/t vs US$2,227/t yesterday
Nickel US$ 22,000/t vs US$22,355/t yesterday
Zinc US$ 2,917/t vs US$2,935/t yesterday
Lead US$ 2,017/t vs US$1,982/t yesterday
Tin US$ 20,100/t vs US$20,000/t yesterday
Energy:
Oil US$94.6/bbl vs US$95.4/bbl yesterday
Crude oil prices were broadly unchanged as the competing global themes of downward demand revisions and approaching supply tightening compete for the market’s attention.
European energy prices also flat-lined as the EU continues to debate how best to limit gas and electricity prices to avoid the worst of the potential price volatility this Winter..
Natural Gas US$6.609/mmbtu vs US$6.508/mmbtu yesterday
Uranium UXC US$49.50/lb vs US$48.50/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$95.4/t vs US$96.0/t
Chinese steel rebar 25mm US$575.2/t vs US$579.3/t
Thermal coal (1st year forward cif ARA) US$230.0/t vs US$230.0/t
Thermal coal swap Australia FOB US$390.0/t vs US$382.5/t - Thermal coal prices ease following rampant rally amid European scramble for Russian gas alternatives
Australian thermal coal prices have eased c.7% since last week and has fallen c.18% since record highs hit in early Sept.
Russian port discounts have started to ease, suggesting there is an ample market for Putin’s coal supply.
European coal demand jumped 36% yoy in September to 7.85mt as soaring gas prices forced utility firms to seek alternatives. (Kpler)
Analysts expect Colombia, the US and Canada to look to fill the supply void created by an import ban on Russian coal by Europe.
Coking coal swap Australia FOB US$283.0/t vs US$283.0/t
Other:
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$95,940/t vs US$96,710/t
Lithium carbonate 99% (China) US$71,101/t vs US$70,620/t
China Spodumene Li2O 5%min CIF US$5,610/t vs US$5,610/t
Ferro-Manganese European Mn78% min US$1,201/t vs US$1,198/t
China Tungsten APT 88.5% FOB US$32.0/kg vs US$32.0/kg
China Graphite Flake -194 FOB US$845/t vs US$845/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$317/t vs US$317/t
Spot CO2 Emissions EUA Price US$66.1/t vs US$66.0/t
Brazil Potash CFR Granular Spot US$650.0/t vs US$650.0/t
Company News
Bluerock Diamonds PLC (AIM:BRD)* – 7.5p, Mkt cap £3.1m – Sale of 10.22ct stone for US$122,888
- BlueRock Diamonds report the sale of a recently recovered 10.22ct rough diamond for US$122,888.
- The sale value of $12,024/ct represents BlueRock’s third most valuable stone sold and second most valuable stone sold on a per carat basis.
- Statistically, the number of larger and more valuable stones recovered should increase significantly as throughput of fresh kimberlite ore rises towards 1mtpa.
- BlueRock’s last diamond tender in August saw the sale of six high value stones raising the total tender value to $595/ct highlighting the higher value of diamonds being produced from the mine.
- Management currently target 620,000-670,000t of ore throughput through the plant for some 24,500-30,000cts of diamonds.
- We would expect a greater proportion of larger diamonds to be recovered through the second half as more fresh kimberlite ore is processed following the expansion of the open pit to access more ore.
- The processing of lower grade stockpiles earlier in the year held back diamond production raising unit costs and holding back per-carat sales values.
- Diamond grades vary within Kimberly pipes according to the phasing of different pulses of kimberlite material within the pipe making it difficult to predict the actual grades to be recovered on a month-by-month basis. We are modelling a grade of 3.8cpht for the year, though the more fresh ore that is processed the higher the overall grade should go.
- Guidance:
- Throughput: 620,000-670,000t for 2022 from 770,000-750t and 875,000-970,000t for 2023 from 1,000,000t previously.
- Carats: 20,000-24,000cts for 2022 from 24,500-30,000cts for 2022 and 35,000-41,000cts for 2023 from 43,000cts previously
- Grades: 3.25-3.5cpht for 2022 from 3.5-4.0cpht for 2022 and 4.0-4.3cpht for 2023 from 4.3cpht previously.
- Value per carat: $500-600/ct from $500-550/ct for 2022 and $500/ct for 2023 from $450/ct previously
- Revenues: $10.0-14.4m from $12.0-16.5m for 2022 and $17.5-20.5m from $19m in 2023 previously
Conclusion: We are hopeful for a strong second half for BlueRock helped by the recovery and sale of some more higher-value rough diamonds through the second half.
*SP Angel acts as nomad and broker to Bluerock Diamonds. The analyst holds shares in BlueRock Diamonds.
Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) 930p, Mkt Cap £116m – Another quarterly production record at the Blanket mine, Zimbabwe
- Caledonia Mining reports the production of 21,120oz of gold from the Blanket gold mine during the quarter to 30th September 2022.
- The production performance, described as “a record for any quarter” is 11% higher than the 18,965oz reported for the equivalent quarter in 2021, which was itself a record performance, and 5% higher than the 20.091 produced in Q2 2022, and brings the total output over the first nine months of 2022 to 29,726oz.
- As a result, the company reconfirms its 2022 production expectations with Chief Operating Officer, Dana Roets, explaining that 2022 “has been an excellent year, the ramp-up in production towards our yearly target of 80,000 ounces has met our best estimate and, as a consequence, we are on track to hit the top end of our production guidance of between 73,000-80,000 ounces”.
- He expressed the company’s confidence in “the geological prospectivity in Zimbabwe” where Caledonia Mining “continues to evaluate other investment opportunities in the country with our long-term vision to become a multi asset gold producer”.
- He also confirmed that the company continues “to work hard on completing the transaction for Bilboes and in the meantime will restart the oxide operations with the expectation that it will return to profit during the second quarter of 2023”.
Conclusion: The Blanket mine has delivered successive quarterly production records in each of the 3 quarters so far this year following record annual performance in 2021. The production speaks for itself and, in our view, amply vindicates the company’s decision to pursue the 5 year long, US$67minvestment in the Central Shaft project which has provided access to deeper level resources and secured the future of the Blanket mine into the 2030s
*SP Angel mining analysts have visited Caledonia’s mining operations in Zimbabwe
Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) 1.08p, Mkt Cap £14m – Progress of the drilling campaign at the East Zone of the BHA project
- Castillo Copper reports that it has now completed 488m of drilling in 4 holes at the Tors Tank project within its BHA East Zone project at Broken Hill, New South Wales.
- The drilling forms part of a wider comprising a single diamond-drill hole plus 17 reverse circulation (RC) holes totalling 2,100m which will cover the Reef Tanks and Fence Gossan prospects as well as the work at Tors Tank.
- The company confirms that “All four drill-holes hit targeted cobalt mineralisation zones … [and that] … Qualitative logging identified multiple disseminated sulphide layers (mostly pyrite), up to 12m thick, associated with amphibolite layers that can potentially host cobalt mineralisation”.
- The company comments that the “intersected geology is interpreted to be consistent with observations by previous explorers, including Broken Hill North1, across the 1970-80s”.
Conclusion: We await assay results from the drilling at Tors Tank and results from the balance of the drilling programme at BHA East with interest.
Condor Gold PLC (AIM:CNR, TSX:COG, OTC:CNDGF)* 29.25p, Mkt Cap £46.4m – Largest shareholder appointed Chairman
- Condor Gold reports the appointment of Mr. Jim Mellon as Non-Executive Chairman.
- Mr. Mellon is a long-standing shareholder and is also Condor Gold’s largest shareholder with an 18.7% interest.
- Mark Child, who had previously combined the role of Chief Executive Officer with that of Chairman, remains as Chief Executive.
- Mr. Mellon explained that “Following the recent release of a positive Bankable Feasibility Study on the fully permitted La India Project, I look forward to continuing to work with Mark Child, the CEO, to maximise the value for all shareholders of this construction ready gold mine and determine the path forward as the Project progresses to a construction phase”.
- The feasibility study, which was released in September does not include the development of the nearby satellite operations at America, Mestiza and Central Breccia or the emerging Cacao deposit, illustrates that the La India open-pit is expected to deliver an after-tax NPV5% of US$86.9m and IRR of 23% (at a gold price of US$1,600/oz) from the investment of US$105.5m to mine a probable ore-reserve of 602,000oz of gold and 1.25moz of silver over an 8.4 years mine life at La India.
- Sensitivity analysis disclosed in the September announcement indicates that at a higher gold price of US$2,000/oz, post-tax NPV5% increases by around 2.4x, to US$205.2m generating an IRR of 43%.
- The open-pit is expected to mine a total of 7.3 mt of ore grading 2.56 g/t Au and associated 96.7 mt of waste at an average waste:ore ratio of 13.2:1 at an average ore production rate of 1.3mtpa producing gold at an average US$1,039/oz on an all-in-sustaining cost basis. Conventional truck-an-shovel mining will use contractors.
- Ore will be treated at a nominal rate of 0.89mtpa over 9 years to produce an average of 81,545oz of gold for the first five years of production with higher grades treated in the earlier years and lower grade material stockpiled for later processing.
- We expect that the details of the study will become available later this month.
- In our view, as the La India project progresses beyond feasibility work into construction the separation of the roles of Chairman and CEO should allow each to focus on the expanding workload of bringing the mine to production.
- Mr. Mellon’s long-standing role as a non-executive director of Condor Gold implies that he will already be in command of detailed insight into the project and the planned development as well as the exploration plans for the wider La India area.
Conclusion: The appointment of the company’s largest shareholder and long-standing non-executive director, Jim Mellon, to the Chairmanship harnesses Condor Gold’s expertise as La India moves towards development and production.
*SP Angel act as a broker to Condor Gold
East Star Resources PLC (LSE:EST) 4.7p, Mkt Cap £8.5m – Drilling to commence immediately at the Talairyk Heavy REE Project
- The Company secured all necessary permits to start exploration fieldwork at the Talairyk Heavy REE Project in the Kostanay region in Kazakhstan.
- Drilling will be starting imminently, several months ahead of schedule, implying regional support for the project.
- The plan is to start with 1,000m of RC drilling to confirm historical grades of the Ionic Adsorption Clay (IAC) hosted deposit.
- Samples will be sent for ICP analysis and leach testwork to confirm historical grades and the potential for economic recovery of REE.
- Subject to results of testing historical drilling data, the Company is planning to proceed to a more comprehensive drilling programme targeting to convert historical resource into JORC compliant estimate and testing on strike expansion potential.
- The Talairyk Rare Earth Elements Project comprises two license areas covering ~145km2 with the Company farming in for up to 90% interest linked to exploration spend.
- Historic resources (1994) stands at ~20kt contained TREO including 4.3kt yttrium oxide (grade of 169g/t) with other rare earth oxide elements comprising the balance (617g/t).
- Total TREO grade is estimated at 786g/t or 0.078% TREO based on ~7,000m of shallow drilling (most of it, ~6,000m, in 128 core drillholes implying <50m average depth).
- The mineralisation is reported to be hosted close to surface (av overburden ~7m) with thickness of the ore deposit varying between 6-59m, averaging 19m.
- IAC deposits generally have lower CAPEX and lower OPEX than hard rock rare earth projects and a higher average basket price.
Conclusion: The Company secures necessary permits to start drilling at the Talairyk Heave REE Project in Kazakhstan ahead of schedule with drilling to proceed immediately ahead of a potentially more comprehensive programme scheduled for H1/23.
Kavango Resources PLC (LSE:KAV, OTC:KVGOF) 2.1p, Mkt cap £9m – CSAMT survey flown on KCB
- Kavango reports that initial results from a Controlled-Source Audio Magnetotelluric (CSAMT) survey conducted over the company’s licenses on the Kalahari Copper Belt have been encouraging, with meaningful data down to a depth of 4km.
- CSAMT involves transmitting a current at various frequencies in one location and measuring resistivity differences between electrodes spaced along a receiver line several kilometers from the transmitter.
- The survey shows a very sharp steeply dipping geological structure/deformation zone within Kavango's PL082/2018 licence area, which is interpreted as a faulted and brecciated margin that extends down to 4km.
- The company comments that the structure could serve as pathways for fluid flow and mineral mobilisation, although more testing is required to improve interpretation of geology and structure.
- Yesterday, Kavango reported it has commenced drilling on the project with Hole KCBRC001 which has a target depth of up to 250m.
- The hole is targeting a 100m wide anomaly that has been identified by 3 >30ppm copper pXRF Values that were spaced at 50m intervals.
- The first hole is one of a maximum six planned in this current phase of exploration.
Petra Diamonds Limited (LSE:PDL, OTC:PDLMF) 115p, Mkt Cap £223m – Tender offer for $336.7m of 2026 Senior Secured Notes
- Petra Diamonds reports that its previously announced tender offer expired yesterday afternoon with $875,000 tendered under the “Early Participation Deadline” and a further $1.01m tendered and accepted leaving approximately $210.2m outstanding.
- The company confirms that “The Offer has now expired and no further Notes can be tendered for purchase”.
Sunrise Resources PLC (AIM:SRES) 0.12p Mkt Cap £4.2m – 250 ton bulk sample of Hazen project pozzolan, Nevada
- Sunrise Resources reports that it has agreed with an existing producer of natural pozzolan to take a 250 ton sample of material from the Hazen deposit in northern Nevada for mining and grinding tests.
- The company explains that the extraction and testing of the sample, which will be “at no cost to Sunrise … follows successful laboratory testing of the Hazen pozzolan by both parties”.
- The sample and testing is intended to “provide further information on the mining characteristics and grinding behaviour of the Hazen natural pozzolan on a commercial scale”.
- Executive Chairman, Patrick Cheetham, explained that “Whilst there is currently no obligation on either party to enter into a further agreement at this stage, this is an important collaboration. The other party has the processing facilities and marketing network in those regions targeted by the Hazen Project to commercialise the Hazen deposit in the future and the deposit is well located close to rail”.
- He also clarified that the work at Hazen “does not detract from our focus on the more advanced CS Pozzolan-Perlite Project in Nevada as the two projects target different regional areas of cement and concrete demand served by a range of different cement and ready-mix companies”.
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%