SP Angel . Morning View . Monday 24 10 22
Risk sentiment pulls back on Chinese leadership reshuffle and weak economic data
MiFID II exempt information – see disclaimer below
Private Zambian copper exploration opportunity
- We are looking for investment into a private copper explorer with four highly prospective licences in Zambia, near major mines or significant exploration targets.
- One license is contiguous with First Quantum’s Sentinel copper and Enterprise nickel mines which whom they have a Technical Cooperation Agreement.
- Historic drilling on the licence includes 0.7% copper over 1m and 0.2% nickel over 3m. Geophysics in 2021 & 2022 advanced project toward identifying drill targets.
- A large licence with multiple copper targets. Samples from small artisanal mines assayed 15.8% copper, 0.57g/t gold and 4.87% copper, 18.3 g/t gold.
- A highly prospective licence acquired in 2022 on the Western Foreland trend which hosts the giant Kamoa-Kakula mine.
- IPO documentation has been prepared for listing when market conditions improve.
- All licences are 100% owned with Zambian partners significant shareholders in the company.
Alien Metals Ltd (AIM:UFO, OTC:ASLRF) – McIllree visit to iron ore projects
Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) – Completion of 516m of drilling at the Fence Gossan prospect in the East Zone of the BHA project
Eastinco Mining and Exploration (ATN LN) – AIM Market debut and £850,000 fund-raising
Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTCQX:GALKF)* - BUY – TP:54p – Additional high-grade drill results at Omagh project
Gemfields Group Limited (AIM:GEM) – Resumption of mining operations at Montepuez
Griffin Mining Ltd (LON: GFM) – Q3 Production update and recommencement of operations at Caijiaying Mine
Kavango Resources PLC (LSE:KAV, OTC:KVGOF) – £3m fundraise
Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF)* - BUY – Valuation 60p – Results highlight progress at Rainbow in flowsheet development for Phalaborwa rare earth project
The world is rebalancing in terms of capital flows as US dollar interest rates return to more normal historic levels
- Capital is flowing back into the US as interest rates return to more normal average levels.
- Fed rates have averaging 4.7% over the past 60 years varying from near zero to >20% in 1981.
- We cannot predict where and when Fed rates will peak but we do feel rates will settle below the long term average, perhaps later next year once much capital has been persuaded to flow from China back into the US.
- Governments are being brought to account for excessive spending, which certain regimes (China) have interrupted capital flows.
- China is looking to transition from the workshop of the world to a new high-tech economy – a challenging transition by any standards
- Higher-value production is moving back to the West from China to avoid ongoing Covid disruption while lower value industries are moving to other low cost nations.
- President Xi says he will hold the Zero-Covid line but we suspect the nation has already moved to dynamic Zero-Covid as they roll out new vaccines.
- China’s vaccine programs have had almost worthless efficacy, though new vaccines are required to hold back Omicron.
- China may well fare much worse than the West if covid runs rife through its population due to a lack of modern healthcare and
- High energy consuming industries may also move out of China as high-tech industries take over.
- Smelting & Refining will hopefully transition into cleaner, less polluting and more energy efficient, Hydrometallurgical operations.
- While we are working with new hydrometallurgical processes in the west we wonder how China will manage the transition from traditional ‘old industry’ pyrometallurgical furnaces to modern / innovative hydrometallurgical and bacterial / biological processes.
Copper whipsaws in choppy trading as buyers digest negative Congress developments against low stocks and strong import demand
- Copper fell 2.5% this morning, having climbed to $7,684/t, settling around $7,570/t.
- Traders are digesting China’s mixed bag of economic data this morning, with unemployment rising and lower retail sales alongside a jump in headline growth.
- Physical premiums and backwardated future spreads continue to point to supply tightness in China.
- Yangshan copper premiums are at their highest level in over a yea, whilst backwardation levels on SHFE are at their highest levels since 2007.
- On-warrant copper holdings in Shanghai are at an 8 year low.
- Conversely, LME copper stocks have climbed over 22% since September lows, however we suspect much of this is Russian copper deliveries mostly unsaleable to Western buyers.
- Despite the faltering housing market and slowing growth, Copper imports in August rose 8.1% vs same period 2021, amid China’s ramp up in clean energy and peak seasonal buying period.
- Wood Mackenzie estimates 9.7mt of copper supply is required over the next 10 years from new projects.
Gold pares gains following rally on Dollar weakness as US Treasury yields climb higher
- Having climbed nearly 3% from multi-year lows on Friday, gold has since weakened to hover around $1,650/oz.
- The dramatic move tracks the dollar, which jumped to September highs on Friday before selling off 2%.
- The dollar has subsequently strengthened again this morning, weighing on gold prices.
- Gold has been hit hard by a dramatic rise in US Treasury yields, with the key 10-year climbing almost 16% from October lows.
China’s aluminium and steel output jumps in minor boost to economic sentiment
- Chinese aluminium production rose at a record pace in September, with steel output also climbing.
- Aluminium output jumped 9.3% from September 2021, at a record daily run-rate of 114kt.
- Steel output jumped 17% yoy in September as smelters boosted output in anticipation of China’s peak construction season.
Dow Jones Industrials +2.47% at 31,083
Nikkei 225 +0.31% at 26,975
HK Hang Seng -6.19% at 15,207
Shanghai Composite -2.02% at 2,978
Economics
China – President Xi, 69, secures a third leadership term after changes to the constitution in 2018 dropped term limits
- Additionally new even Politburo (reduced to 24 from 25) and its Standing Committee (PSC, 7 members) were elected.
- The PSC is made up entirely of Xi loyalists offering a further sign of Xi’s tightening grip on power, Reuters reports.
- Three of the four new Standing Committee members owe their political rise to Xi, and the fourth is believed to be closely aligned with him.
- Li Qiang, a Shanghai party chief, is set to replace Li Keqiang as premier in March.
- Lack of a clear successor among new members of the PSC has also been flagged as a risk that Xi may want to remain beyond three terms, increasing policy risk and unpredictability the longer he is in power, Reuters added.
- The Politburo also saw the election of additional Zero Covid policy supporters, weighing on hopes of a near-term policy reversal.
- Xi’s rhetoric at the meeting of ‘frugality’, balancing ‘development’ with ‘security’, and increasing calls for the ‘reunification’ with Taiwan, all present major concerns for China’s market-friendly growth trajectory.
- Renminbi dropped along with Chinese equities on Monday.
- The Hang Seng China Enterprises Index, a gauge of Chinese stocks listed in Hong Kong, plunged 7.3% marking the worst reading after any Communist Party congress since the inception of the index in 1994, Bloomberg writes.
- Hang Seng benchmark is down 6.4% today while mainland CSI 300 is off 2.9%.
- Weak economic data that was delayed from last week added to the selling pressure.
- The economy expanded 3.9% in the first three quarters, better than forecast, but still short of China’s full year target of 5.5%.
- Consumer spending remained weak as indicated by retail sales data while real estate continued to struggle with a staggering drop in property sales of 28.6% YTD in September.
- Property sales, measured by floor area, were down 22 per cent and new constructions starts have slumped 38 per cent, while property investment has dropped 8 per cent.
- GDP (%yoy): 3.9 v 0.4 Q2 and 3.3 est.
- GDP (%YTD): 3.0 v 2.5 Q2 and 3.0 est.
- Industrial Production (%YTD): 3.9 v 3.6 August and 3.7 est.
- Retail Sales (%YTD): 0.7 v 0.5 August and 0.9 est.
- FAI (%YTD): 5.9 v 5.8 August and 6.0 est.
- Property Investment (%YTD): -8.0 v -7.4 August and -7.5 est.
- Residential Property Sales (%YTD): -28.6 v -30.3 August
- Exports (%yoy): 5.7 v 7.1 August and 4.0 est.
- Imports (%yoy): 0.3 v 0.3 August and 0.0 est.
Japan - CPI rose 0.3% in September vs 0.3% in August and steady at 3% yoy in September
Eurozone
- Manufacturing PMI: 46.6 v 48.4 September and 47.9 est.
- Services PMI: 48.2 v 48.8 September and 48.2 est.
- Composite PMI: 47.1 v 48.1 September and 47.6 est.
Germany – Economy sinks deeper into contractionary territory in October with business activity dropping for the fourth consecutive month.
- High energy costs weighed on business costs and demand.
- Business outlook remained deeply negative reflecting concerns over strong inflationary pressures, rising interest rates and the prospect of recession.
- Both manufacturing and services sectors recorded deteriorating conditions with new business orders running at the weakest level since May/20.
- Higher costs led to a further sharp increase in average prices charged for goods and services in October.
- Labour market remained robust with a further increase reported as companies continued to fill in vacancies.
- Manufacturing PMI: 45.7 v 47.8 September and 47.0 est.
- Services PMI: 44.9 v 45.0 September and 44.9 est.
- Composite PMI: 44.1 v 45.7 September and 45.5 est.
France – French economy stagnated in October marking the first time it failed to grow in 19 months.
- Manufacturing sector contracted for a second consecutive month with services reporting another month of business activity growth, although, it was too week to offset the drop in goods production.
- Demand conditions remained weak with new order inflows posting a third consecutive decline on the back of rising inflation and uncertain outlook.
- Inflationary pressures remained historically elevated.
- Business confidence slumped to the lowest level in almost two years.
- Employment growth was sustained during the month, marking a 22nd successive monthly increase in hiring with the rate of new jobs coming comfortably above historical averages.
- Manufacturing PMI: 47.4 v 47.7 September and 47.0 est.
- Services PMI: 51.3 v 52.9 September and 51.5 est.
- Composite PMI: 50.0 v 51.2 September and 50.2 est.
UK – Former Chancellor Rishi Sunak appears as clear favourite to head the Conservative Party after Boris Johnson dropped out on Sunday.
- Economic activity slumps to a 21-month low with both manufacturing and services sectors posting worse than expected declines in October, latest PMI numbers show.
- New orders dropped at the sharpest pace since Jan/21.
- Sentiment is at its worst since Sep/21 amid high inflation, escalating political uncertainty and rising interest rates.
- Inflation remained strong with cost pressures reported still stronger than at any time in the two decades prior to the pandemic.
- Meanwhile, labour markets remained relatively tight, although, the pace of new hiring was the slowest in 20 months.
- Manufacturing PMI: 45.8 v 48.4 September and 48.0 est.
- Services PMI: 47.5 v 50.0 September and 49.0 est.
- Composite PMI: 47.2 v 49.1 September and 48.0 est.
- GfK consumer confidence fell further to -47 in October vs -49 in September
- Retail sales fell 1.4% in September vs -1.7% in August and -6.9% yoy in September vs -5.6% yoy in August
Turkey - consumer confidence rose to 76.2 for October vs 72.4 in September
Indonesia – FDI surges to record highest on record, driven by metals and mining
- FDI in the third quarter of 2022 grew 64% YoY according to investment Minister Bahlil Lahadalia – primarily driven by machinery purchases and building plants in the country.
- Metals manufacturing accounted for the largest share of FDI at nearly a quarter of the total.
- President Jokowi has pushed for refining of metals in country in order to capture a higher proportion of the downstream value-add of its rich nickel reserves.
- Vale and Freeport-McMoRan are among the companies’ building smelters in the country.
Currencies
US$0.9848/eur vs 0.9798/eur last week. Yen 149.13/$ vs 150.38/$. SAr 18.235/$ vs 18.311/$. $1.135/gbp vs $1.122/gbp. 0.632/aud vs 0.628/aud. CNY 7.259/$ vs 7.246/$.
Dollar Index 113.09 / +0.04% on week
Commodity News
LME is monitoring Russian metal in its inventories with view to acting if problems arise
- The LME continues to weigh up options on how to tackle Russian metals delivered to its warehouses.
- Russian copper in LME warehouses currently accounts for over 60% of deliverable metal vs 5% nickel and 15% aluminium. (Reuters)
- The LME is concerned buyers may shun Russian metal in the face of new sanctions next year, raising the potential of a ‘dumping’ into the LME system.
- No clear route has been outlined by the Hong Kong Exchanges and Clearing-owned LME, with management waiting for updates on sanctions.
Precious metals:
Gold US$1,654/oz vs US$1,626/oz last week
Gold ETFs 95.5moz vs US$95.6moz last week
Platinum US$936/oz vs US$916/oz last week
Palladium US$2,044/oz vs US$2,061/oz last week
Silver US$19.20/oz vs US$18.55/oz last week
Rhodium US$14,100/oz vs US$14,100/oz last week
Base metals:
Copper US$ 7,571/t vs US$7,463/t last week
Aluminium US$ 2,219/t vs US$2,210/t last week
Nickel US$ 22,475/t vs US$22,196/t last week
Zinc US$ 2,989/t vs US$2,958/t last week
Lead US$ 1,922/t vs US$1,946/t last week
Tin US$ 18,525/t vs US$18,750/t last week
Energy:
Oil US$92.8/bbl vs US$92.2/bbl last week
- Crude oil prices moved lower due to economic slowdown concerns after China reported a fall in September crude oil imports and fuel exports at a 15-month high.
- Near-term European energy prices fell on warmer-than-usual weather across the continent.
- The US Baker Hughes rig count rose by 2 to 771 rigs last week, with oil rigs up 2 at 612 rigs and gas rigs unchanged at 157 rigs.
Natural Gas US$4.830/mmbtu vs US$5.225/mmbtu last week
Uranium UXC US$53.05/lb vs US$52.65/lb last week
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$91.4/t vs US$91.4/t
Chinese steel rebar 25mm US$548.8/t vs US$550.3/t
Thermal coal (1st year forward cif ARA) US$270.0/t vs US$270.0/t
Thermal coal swap Australia FOB US$394.0/t vs US$395.0/t
Coking coal swap Australia FOB US$311.0/t vs US$307.0/t
Other:
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$91,973/t vs US$92,129/t
Lithium carbonate 99% (China) US$74,474/t vs US$74,600/t
China Spodumene Li2O 5%min CIF US$5,800/t vs US$5,800/t
Ferro-Manganese European Mn78% min US$1,217/t vs US$1,210/t
China Tungsten APT 88.5% FOB US$32.0/kg vs US$32.0/kg
China Graphite Flake -194 FOB US$860/t vs US$860/t
Europe Vanadium Pentoxide 98% 7.3/lb vs US$7.3/lb
Europe Ferro-Vanadium 80% 30.65/kg vs US$30.75/kg
China Ilmenite Concentrate TiO2 US$309/t vs US$310/t
Spot CO2 Emissions EUA Price US$67.0/t vs US$66.7/t
Brazil Potash CFR Granular Spot US$620.0/t vs US$650.0/t
Battery News
CATL slows battery investment plan in US following new legislation
- Chinese battery giant CATL has slowed its planning for investment in battery plants in North America over concerns about new legislation on sourcing battery materials.
- CATL currently produces around 70% of battery cells made globally.
- This aspect of the Inflation Reduction Act passed earlier this year was intended to drive domestic mining and processing and break the industry’s reliance on China.
- The IRA requires automakers to have 50% of critical minerals used in EV batteries sourced from North America or U.S. allies by 2024, rising to 80% by the end of 2026.
- Hyundai also wants U.S. legislators to offer companies investing in the United States some type of waiver or a longer transition period.
- The US government introduced a $7,500 consumer tax credit to EVs built in North America, however Hyundai wont have a plant there until 2025.
- The law leaves foreign automakers at a huge disadvantage, and South Korea has three of the world’s largest EV battery manufacturers that have announced $25bn in US investment since Biden took office.
- South Korean trade ministers continue to reach out to their US counterparts – to no avail at this stage.
Company News
Alien Metals Ltd (AIM:UFO, OTC:ASLRF) – 0.49p, Mkt cap £26m –McIllree visit to iron ore projects
- Alien Metals provides an update on the company’s iron ore projects following management site visit.
- The statement follows recent site visits by management including new Chairman Rod McIllree, formerly, CEO and then Chairman at Bluejay Mining.
- Alien reports the completion of metallurgical test work and the optimisation of the flowsheet for the concentration of iron ore.
- The team expect to receive a mining license in Q1 2023 following heritage clearance in Q4 2022.
- Management expect there will be sufficient availability at the Port Headland Utah Point ship loading facilities to coincide with mining.
- Company acquired 51% of the Brockman and Hancock Ranges high-grade (Direct Shipping Ore) iron ore projects have updated the terms of the option to acquire a 90% interest.
- Alien Metals also holds 100% of the Munni Munni PGM and gold project in the West Pilbara..
Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) 1.08p, Mkt Cap £13m – Completion of 516m of drilling at the Fence Gossan prospect in the East Zone of the BHA project
- Castillo Copper reports that it has now completed 4 holes (516m) at the Fence Gossan project within its BHA East Zone project at Broken Hill, New South Wales.
- The drilling, which follows the previously reported completion of drilling at the Tors Tank prospect forms part of a wider drilling campaign comprising a single diamond-drill hole plus 17 reverse circulation (RC) holes totalling 2,100m which is now “at the halfway mark” of a programme covering the Reef Tanks and Fence Gossan prospects aand Tors Tank.
- Initial geological interpretation, pending receipt of assays, showed “Numerous disseminated sulphide layers (mostly pyrite linked to amphibolite), up to 17m thick, were logged which could potentially host cobalt mineralisation … [ and is] … consistent with observations noted by North Broken Hill in the 1970-80s”.
- The company says that the results from Fence Gossan and Tors Tank show “significant magnetite zones that are directly associated with pegmatite up to 19m thick … [and that these] … could potentially host REEs and/or PGE's … [Rare Earth Elements or Platinium Group Elements] … based on limited field PXRF … [Portable X-Ray Fluorescence] …observations”.
- Managing Director, Dr. Dennis Jensen, said that “the Board is optimistic that known mineralisation at the Tors Tank & Fence Gossan Prospects has potentially been extended. Moreover, for Fence Gossan in particular, the Board is delighted to note the significant pegmatite intercepts which have the potential to host REEs as well as PGEs”.
Conclusion: We await assay results from the drilling at Tors Tank and the Fence Prospect as well as results from the balance of the drilling programme at BHA East with interest.
Eastinco Mining and Exploration (ATN LN) 1.1p, Mkt Cap £10.6m – AIM Market debut and £850,000 fund-raising
- Eastinco Mining and Exploration has made its AIM Market debut with the placing of 85.4m new shares at a price of 1p/share to raise approximately £854,000.
- The company, which is expected to trade as Aterian plc following the expected approval of a name change later this week, is exploring a portfolio of “critical and strategic metal assets, including copper and silver” in Morocco and also holds interests in “three tantalum-niobium-tin projects” in Rwanda.
- The Morrocan exploration consists of “15 copper and silver projects with a project area of 762 km2 “. In Rwanda, the company says that it “also intends to develop its metals trading business”.
- “The proceeds of the fundraise are to be used to fund further exploration across the acquired Morocco portfolio of copper and silver assets, further exploration and development of the tantalum-niobium and tin projects in Rwanda, and for general working capital and administrative costs”.
- “On Admission, Elemental Altus will become the Company's largest shareholder, owning 25% of the Company's issued share capital” and will be represented on the Board by Mr. Alister Masterton-Hume as a non-executive director.
Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTCQX:GALKF)* 33.5p, Mkt Cap £35m – Additional high-grade drill results at Omagh project
BUY – TP:54p
- Galantas has released drill results from four holes from its ongoing drill programme, targeting areas hosting higher widths of mineralisation that the company refers to as “dilation zones”.
- Highlights from this morning’s results:
- Hole FR-DD-22-UG-191 – 11m at 6.3 g/t Au including 4.5m at 14.2 g/t Au
- Hole FR-DD-22-UG-188 – 2.9m at 9.3 g/t Au
- Hole FR-DD-22-UG-187 – 2.4m at 13.2 g/t Au
- Hole FR-DD-22-UG-184 – 2.8m at 6.8 g/t Au
- Hole “191” successfully targeted a northern extension to a proposed dilation zone within the Kearney Vein, while hole “188” intersected the main Kearney Vein 40m below the resource model at 9.3 g/t Au and 23.3 g/t Ag over 2.9m.
- These latest results are part of a wider 4,000m programme targeting extensions to known mineralisation on the Joshua and Kearney veins.
- The current MRE at Cavanacaw is hosted within a system of ~9 mineralised veins, while the wider system is comprised of 16 vein structures in an area of 6km2.
Conclusion: Galantas continue to enjoy success through the ongoing 4,000m drill programme, with high grade mineralisation shown to continue at depth. We expect Galantas to publish a MRE upgrade in 2023 which would forecast a life of mine extension from our initial forecast of 12 years.
*SP Angel acts as broker to Galantas Gold
Gemfields Group Limited (AIM:GEM) 15.25p, Mkt Cap £181m – Resumption of mining operations at Montepuez
- Gemfields reports that key operating personnel have returned to the 75% owned Montepuez ruby mine where staff were evacuated last week as a precautionary measure following an attack by Cabo Delgado insurgents on a neighbouring mine located 12km southeast of Gemfields’ operation.
- The company confirms that its “security personnel and the Mozambique police force remained on site at MRM … [and that the] … Mozambique military arrived at MRM later that day and will maintain a presence for the foreseeable future”.
- Gemfields says that “Mining and processing activities are being resumed in phases after giving due consideration to the threat perceptions in the licence area”.
Griffin Mining Ltd (LON: GFM) 81.00p, Mkt Cap £140.1m – Q3 Production update and recommencement of operations at Caijiaying Mine
- Griffin Mining announces it plans will be able to commence operations at the Caijiaying Mine on the 26th October, following the cessation of operations from September 23rd.
- The Company hopes to resume full operations on November 1st following the full easing of government restrictions and the delivery of explosives.
- Griffin was forced to pause operations following an explosives ban instigated by Chinese authorities in the run up to the 20th Party Congress.
- Griffin reports mining and processing were maintained at the equivalent annualised rate of 1.3mt of ore pa up until the pause in operations.
- 267,304t of ore was mined in the 3 months to September vs 338,790t in Q2.
- 309,465t of ore was processed in Q3 vs 329,390t of ore processed in Q2.
- 3,080ozs of gold in concentrate was produced in Q3 vs 3,504oz in Q2.
- 85,612ozs of silver in concentrate was produced in Q3 vs 79,246ozs in Q2.
- These results were delivered despite the cessation of operations for a quarter of the reported period.
Kavango Resources PLC (LSE:KAV, OTC:KVGOF) 1.8p, Mkt cap £7.8m – £3m fundraise
- Kavango reports it has raised £3m at a price of 1.8p per share compared to a closing mid-market price of 1.95p on the Friday 21st October.
- Each New Ordinary Share has a warrant attached exercisable at 3p for a term of 24 months from the date of issue.
- Kavango notes that one strategic investor subscribed for over half of the Placing amount.
- Funds will be used to meet exploration costs across the Company's portfolio of projects in Botswana and working capital.
Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF)* 11.2p, Mkt cap £59m – Results highlight progress at Rainbow in flowsheet development for Phalaborwa rare earth project
BUY – Valuation 60p
(Rainbow hold 70% of Phalaborwa with 30% to be held by Bosveld Phosphates) (Neodymium Nd, Praesidium Pr, Terbium Tb, Dysprosium Dy) Rainbow holds 100% of the Gakara mine and associated licenses in Burundi)
- Rainbow earned no revenue in the year to 30th June 2022 due to the suspension of work at the Gakara mine in Burundi. The Burundi government had stopped all rare earth concentrates, with Rainbow placing the mine on care and maintenance due to its inability to export material.
- Expenses rose to £3.65m from £2.71m yoy largely due to the cost of developing the Phalaborwa PEA and partly due to the cost of holding the Gakara mine.
- Rainbow incurred finance costs of £0.54m vs £0.47m yoy.
- The resulting post-tax loss rose to £3.98m vs £2.74m for the year.
- Total current assets rose to £5.39m from £1.88m through the year raising total assets to £17.1M from £13.1m yoy
- Management worked through the year on the development of the new process flowsheet for the processing of Phalaborwa phosphorgypsum residues.
- The new and innovative process combines Rainbow’s in-house expertise in hydrometallurgy with K-Tech’s long-standing and well established work on CIX ‘Continuous Ion Exchange’ and CIC ‘Continuous ion Chromatography’.
- The result is the addition of significant vale to the Phalaborwa project.
- The Phalaborwa PEA estimates NPV@10% of US$627m with an IRR of 40% and a two year payback on reasonably conservative REE prices.
- Rainbow is also collaborating on a number of other phosphorgypsum sources for the application of the REE extraction process using K-Tech developed CIX ‘Continuous Ion Exchange’ and CIC ‘Continuous ion Chromatography’.
- The Rainbow expert metallurgical team have further developed the process for the extraction of rare earth oxides from phosphorgypsum residues.
- Rainbow’s Phalaborwa basket price for rare earths rose by 82% in FY 2022 as demand for the critical rare earths rose ahead of production to US$173.91/kg of magnet rare earth oxides.
- Pricing: Adamus Intelligence see a major shortage of neodymium and praseodymium due to a lack of rare earth sources and the inability of producers to raise production.
*SP Angel acts as financial advisor and broker to Rainbow Rare Earths
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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%