SP Angel . Morning View . Thursday 10 11 22
Copper prices rise to two-month high as Russia withdraws from Kherson
MiFID II exempt information – see disclaimer below
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.
- 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.
- IPO documentation has been prepared for listing when market conditions improve.
*SP Angel’s role is limited to making introductions and 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
Altona Rare Earths Plc (AQSE:ANR) – £150k short-term loan facility agreed
Largo Resources (TSE: LGO) – Largo reports loss of $2.6m in Q3 as Q3 sales prices fall to $8.80/lb
Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF)* – First results from metallurgical drilling programme at the Empire mine, Idaho
Rambler Metals and Mining PLC (AIM:RMM, TSX-V:RAB)* – Cost containment initiatives at the Ming mine as negotiations on the financial restructuring continue
Resolute Mining Limited (ASX:RSG, LSE:RSG) – A$140m underwritten placing to strengthen balance sheet
Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF)* – Independent NED appointment
SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF)* – Interim CEO appointment
Crypto chaos wipes billions of market value into oblivion as default beckons for major exchange
- A proposed takeover of likely insolvent FTX crypto exchange by rival Binance is set to fail, sending Bitcoin down 26% this week and triggering concerns of wider market contagion.
- FTX exchange, whose founder Sam Bankman-Fried (likened to John Pierpont Morgan during the banking crisis of 1907), is looking for support for a reported $8bn debt shortfall.
- The exchange’s insolvency has triggered a further step down in crypto market values, with the total crypto market cap standing at $914bn, down from over $3tn in November 2021.
- JP Morgan are reporting crypto market participants are facing a ‘cascade’ of margin calls, although it is unclear whether this will feed into wider equity markets.
Gold holds gains despite stronger dollar as today’s US CPI release consumes trader focus
- Gold prices have held higher around the $1,710/oz mark, following their major 3% move higher on Tuesday.
- Over 1m ounces of gold were reportedly purchased over the space of 2 minutes on Tuesday, with continued inflows reported on expectations of a cooler US inflation print.
- Bloomberg polled economists expect the consumer price index and core measure to have cooled on an annual basis in October.
- Today’s reading will be key for the Fed’s December rate hike decision, with traders currently torn between 50bp and 75bp.
- A cooler than expected reading will be bearish for the dollar as it may encourage Powell to take his foot off the gas in the Fed’s efforts to cool inflation with aggressive rate hikes.
- 10 Year Treasury yields are weakening into the reading today, falling to 4.096% having touched 4.318% in late October.
- The dollar has been weakening over the past month as traders bet the Fed’s rate hike path has reached peak aggression.
- Republicans are likely to take control of the house, opening a debate on the US debt ceiling, with the GOP looking to rein in Democrat spending. This may support the dollar and weigh on gold.
Copper hits 2-month peak on Russian retreat rumours before paring gains
- Copper prices climbed to over $8,200/t yesterday before retreating to $8,050/t in volatile trading as Russia announced a withdrawal of troops from Kherson.
- Copper prices remain grounded by China pessimism, with October factory gate numbers dropping for the first time since December 2020.
Iron ore falters as traders await direction on China lockdown strategy
- Iron ore prices fell 3.5% following a 6-day rally triggered by optimism of an easing of China covid policy.
- China is coming out of peak construction season, which disappointed this year as the property market slump continues to roil markets, weighing on iron ore prices.
- Further bearishness for the steelmaking ingredient has developed as Covid infections continue to rise across China.
- Australian iron ore exports fell to 17.2mt this week, down from 18mt last week. (Marcura)
- Bulk cargo ships used to transport iron ore are ramping up shipments of coal as demand for the steelmaking ingredient remains lacklustre.
- Coal demand is rising following Putin’s invasion of Ukraine, hitting gas supplies and forcing utilities to seek alternative power sources.
- Arcelor Mittal also noted declining steel demand from Europe, cutting its steel consumption forecasts by 7% this year, having previously forecast a 2-4% decline.
Dow Jones Industrials -1.95% at 32,514
Nikkei 225 -0.98% at 27,446
HK Hang Seng -1.87% at 16,053
Shanghai Composite -0.39% at 3,036
Economics
US – Vote counting continued with Republicans seen edging closer to securing a majority in the House with control over the Senate hanging in the balance.
- Inflation data is out later today with markets looking out for evidence of slowing inflationary pressures.
- CPI (%mom): 0.6 est v 0.4 September.
- CPI (%yoy): 7.9 est v 8.2 September.
- Core CPI (%mom): 0.5 est v 0.6 September.
- Core CPI (%yoy): 6.5 est v 6.6 September.
China – Factories struggle to survive on fall in orders due to lower Western demand and surplus inventory
- Chinese factories are cutting back hard as new orders collapse for manufactured products according to an excellent piece in the FT today.
- Disruption to shipping and other transport caused buyers to raise inventories just as demand started to collapse in the EU and US.
- The collapse of retailers such as MADE.com which sourced products, almost exclusively, in China has decimated orders with furniture factories hit hard.
- Orders are said to have falled by 30-50% as EU consumers preserve cash for higher energy bills.
- Nike, reported North American inventories rise by 65% yoy at end Q3.
- We expect Chinese PMIs to fall further from October’s contraction of 49.2 (was 50.1 in September) as exports slow.
- The fall in orders may partly account for why President Xi warned against using nuclear weapons over Ukraine. China and India have previously called for a negotiated end to the Ukraine war.
- The ongoing crisis in unfinished property is estimated to account for 231m sq m representing some 3.85% of the Chinese housing market covers (Shanghai E-House Real Estate Research Institute)
- Assuming an average apartment at 60 sq m costing ~$850/sqm this equates to around 3.85m apartments or a $196bn problem.
- The average cost for a new build in China is CNY11,829/sqm (Global property guide) though estimates vary widely with the average cost in Shanghai at CNY6,516 in 2020.
- If we estimate fitting out costs at around CNY3,000/sqm (US413/sqm) then unfinished construction will still cost some $96bn to finish.
- Xi has a long way to go with his initiatives for ‘Common Prosperity’ and ‘Dual Circulation’ both of which are largely dependent on the movement of migrant workers from villages into cities.
- If confidence in buying new-build apartments collapses in China then, the property sector, a major pier of the economy, could cause contagion across the economy.
- Chinese equities weaken as covid curbs resurface, but Guangzhou highlights potential shift in policy
- Hang Seng Index fell 1.9%, Shanghai Composite down 0.5% on fresh Covid controls from local Chinese authorities.
- Extremely oversold Chinese equities had enjoyed a rally triggered by rumours of a Chinese reopening, however this has not materialised to the extent traders were expecting.
- However, analysts are pointing to Guangzhou’s lack of a mass lockdown, favouring instead mass testing and more targeted district lockdowns, as a sign of a major policy shift in China’s Zero-Covid strategy.
CO2 – Companies called on to pay global carbon tax to help small island states at risk of rising sea levels from global warming
- It will be interesting to see if any Chinese or Russian companies sign up to and then comply with such a campaign
- We suspect, the threat of trade embargoes and significant auditing for compliance will be required before a global CO2 tax system becomes effective
Ukraine – Russian troops were ordered to withdraw from Kherson, the southern Ukrainian city and a regional centre of the recently annexed territory, as Kyiv’s troops pressed forward with a counteroffensive.
- Russian troops occupied the city from the start of its invasion in February and losing it marks a blow to Russian troops morale and a significant setback for President Putin.
- Potentially recapturing the Kherson region will allow Ukraine to cut off a land bridge and control fresh water supplies to Crimea as well as bringing its artillery closer to the peninsula and supply lines of Russian military.
- Russia seen looting grain shipments out of Ukriane as satellites show shipments from Berdayansk to Turkey
Currencies
US$1.0008/eur vs 1.0079/eur yesterday. Yen 146.22/$ vs 145.32/$. SAr 17.775/$ vs 17.765/$. $1.139/gbp vs $1.156/gbp. 0.641/aud vs 0.652/aud. CNY 7.245/$ vs 7.242/$.
Dollar Index 110.36 / -2.19% on week
Commodity News
Precious metals:
Gold US$1,709/oz vs US$1,715/oz yesterday
Gold ETFs 94.3moz vs US$94.4moz yesterday
Platinum US$992/oz vs US$1,008/oz yesterday
Palladium US$1,870/oz vs US$1,934/oz yesterday
Silver US$21.06/oz vs US$21.51/oz yesterday
Rhodium US$13,150/oz vs US$13,350/oz yesterday
Base metals:
Copper US$ 8,095/t vs US$8,079/t yesterday
Aluminium US$ 2,308/t vs US$2,375/t yesterday
Nickel US$ 25,095/t vs US$23,990/t yesterday
Zinc US$ 2,861/t vs US$2,928/t yesterday
Lead US$ 2,065/t vs US$2,039/t yesterday
Tin US$ 19,775/t vs US$19,815/t yesterday
Energy:
Oil US$92.3/bbl vs US$95.4/bbl yesterday
Natural Gas US$5.799/mmbtu vs US$6.174/mmbtu yesterday
Uranium UXC US$50.60/lb vs US$50.25/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$86.6/t vs US$88.1/t
Chinese steel rebar 25mm US$529.3/t vs US$529.6/t
Thermal coal (1st year forward cif ARA) US$208.0/t vs US$208.0/t
Thermal coal swap Australia FOB US$300.0/t vs US$325.0/t
Coking coal swap Australia FOB US$326.0/t vs US$327.0/t
Other:
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$90,053/t vs US$90,077/t
Lithium carbonate 99% (China) US$79,702/t vs US$79,723/t
China Spodumene Li2O 5%min CIF US$6,110/t vs US$6,110/t
Ferro-Manganese European Mn78% min US$1,236/t vs US$1,244/t
China Tungsten APT 88.5% FOB US$31.7/kg vs US$31.7/kg
China Graphite Flake -194 FOB US$880/t vs US$880/t
Europe Vanadium Pentoxide 98% 7.5/lb vs US$7.5/lb
Europe Ferro-Vanadium 80% 31.95/kg vs US$31.95/kg
China Ilmenite Concentrate TiO2 US$310/t vs US$310/t
Spot CO2 Emissions EUA Price US$75.9/t vs US$77.6/t
Brazil Potash CFR Granular Spot US$600.0/t vs US$600.0/t
Battery News
Finnish scientists create world's first commercial-scale sand battery
- Scientists at the Vatajankoski power plant have developed the world’s first commercial-scale sand battery – fully enclosed in a 7m high steel container.
- The battery consists of 100 tonnes of low-grade builders' sand, two district heating pipes and a fan.
- The sand becomes a battery after it is heated up to 600C using electricity generated by wind turbines and solar panels in Finland, with the hot air circulated by a fan around the sand through heat exchange pipes.
- Thick insulation surrounds the battery as the average temperature is below freezing.
- The battery stores 8 MWh of thermal energy when full and when energy demand rises, discharges 200 kW of power through the heat-exchange pipes - enough to provide heating and hot water for about 100 homes and a public swimming pool in the local area.
- The sand battery stores five to 10 times less energy than traditional chemical batteries, though the system is 8 to 10 times cheaper than a lithium battery which stores the same amount of energy.
- According to the team, the Kankaanpää sand battery costs about $200,000 vs a lithium-ion battery storing 8 MWh of energy would cost at least $1.6m.
Company News
Altona Rare Earths Plc (AQSE:ANR) 7.8p, mkt cap £2.9m – £150k short-term loan facility agreed
- Altona reports it has entered into a short-term loan facility with Align Research Investments, with Altona able to drawdown £150k in two tranches during November in order to complete its 2022 operations programme and provide funds for the assay costs at its Monte Muambe rare earths project in Mozambique.
- The loan has a repayment date of the earlier of either Admission or 31 January 2023 and carries a fixed interest rate of 15%.
- Align will also receive warrants equal to 150% of the loan value, with a three-year expiration at the lower of either 12p or the price of any placing the Company may carry out during the next 18 months.
- In August, Altona estimated an exploration target of up to 56.6mt at 1.65% TREO at a 1% TREO cut-off at its carbonatite-hosted project and expects to complete its maiden MRE in Q1 2023.
Largo Resources (TSE: LGO) C$7.34, Mkt cap $470m – Largo reports loss of $2.6m in Q3 as Q3 sales prices fall to $8.80/lb
- Largo Resources report sales of US$54.3m in Q3 vs US$53.9m yoy in Q3 2021.
- Sale prices fell to $8.80/lb vs $9.10 yoy.
- Production fell to 2,906t in Q3 (6.4mlbs V2O5) vs 3,260t yoy
- Vanadium sales rose to 2,796t V2O5 eq., inc. 351t of 3rd party material vs 2,685t inc. 136t 3rd party material yoy.
- The company reported a net loss of $2.6m vs $9.2m yoy after taking a $3.0m non-recurring charge including the listing cost for Largo Physical Vanadium Corp. and a rise in legal provisions.
- Operating costs rose to $45.6m vs $32.1m yoy lifted by the cost of buying in more ore to replace lower in-house production.
- Cash operating costs excluding royalties rose to $4.86/lb V2O5 equivalent vs $3.53/lb, yoy.
- Cash at $62.7m gives a net working capital surplus of $114.1m at end Q3 2022.
- Pricing: V2O5 prices fell 26% qoq and 12% yoy to $8.23/4lbs V2O5 vs and $9.40/lb yoy and $11.08 in Q2 2022;
- Ferrovanadium prices also fell 12% in in Europe to $33.85 in Q3 2022 vs $38.32 yoy and $44.22 in Q2 2022
- Largo Clean Energy is working in joint venture with Ansaldo Green Tech for the manufacturing and commercial deployment of vanadium redox flow batteries in Europe, African and the Middle East.
- Maracás Menchen ilmenite mine: Largo are working on the construction of the new Maracás Menchen ilmenite mine having recently received all required metallic flotation structures and building of desliming, flotation, filtration, warehouse and pipe rack structures.
- The mine is expected to commission in Q2 2023
Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF)* 27p, Mkt Cap £32m – First results from metallurgical drilling programme at the Empire mine, Idaho
(Phoenix holds 80% of the Empire mining property in Idaho)
- Phoenix Copper has released results from the first three holes of its 1,500m metallurgical core-drilling programme at the Empire open-pit copper project in Idaho.
- These holes represent approximately 193m of the programme which started in early June and has now completed around 1,060m of drilling.
- Phoenix Copper explains that “assay results are taking longer than originally anticipated due to laboratory backlog”.
- The “results confirmed the continuity of mineralisation within the Empire Open Pit, and which appears along structures striking northeast and dipping steeply to the southeast”.
- Among the results highlighted in today’s announcement are:
- Two mineralised intersections in Hole KDX21-01 which encountered 21.3m at an average grade of 1.99% copper, 38.9g/t silver and 358.7ppm molybdenum from a depth of 20.4m as well as a deeper intersection of 11.3m averaging 1.09% copper, 22.1g/t solver from 53.3m depth; and
- An intersection of 9.1m at an average grade of 0.27% copper, 19.6g/t silver, 246.6ppm molybdenum and 255ppm tungsten from a depth of 9.8m in hole KXD21-02 and
- Multiple intersections in hole KXD21-03 which hit 7.3m at an average grade of 2.17% copper, 0.195g/t gold, 20.2g/t silver and 0.94% zinc from surface as well as 1.5m averaging 3.16% copper and16g/t silver from 10.1m; 12.2m averaging 1.05% copper and 14.5g/t silver from 15.2m; and 18.9m averaging 0.79% copper and 14.3g/t silver from 29m depth.
- The broader intersections contain higher grade sections with copper grades as high as 3.5% over 1.2m from 61.9m depth in hole KXD21-01.
- CEO, Ryan McDermott, confirmed that the drilling all lay “within the proposed open pit” and that “The Phoenix team targeted specific zones within the resource in order to collect samples that are representative of the geology and grade characteristics of the deposit as a whole”
- He also explained that samples from the drilling “will be used in the additional testing of ammonium thiosulfate as a recovery agent for copper, gold, and silver. The results of these studies may enable us to bring forward production of gold and silver, currently scheduled as a second phase of the Open Pit project”.
- Phoenix Copper has previously identified the use of ammonium thiosulphate as an environmentally benign reagent for the recovery of precious metals with recovery rates comparable to those achieved using more widely recognised cyanidation methods.
Conclusion: Metallurgical drilling results from Phoenix Copper’s Empire open pit copper project show continuity of mineralisation over viable widths and grades within the planned pit. Drill samples will be used for further testing of precious metals recovery using ammonium thiosulphate which, if successful, could facilitate precious metals recovery earlier in the mine’s life than previously envisaged potentially enhancing the project’s economics. We await the results of both the remaining drilling and the metallurgical work with interest
*SP Angel acts as nomad to Phoenix Copper
Rambler Metals and Mining PLC (AIM:RMM, TSX-V:RAB)* suspended – Cost containment initiatives at the Ming mine as negotiations on the financial restructuring continue
NPV Valuation: Under review
- Rambler Metals has announced a series of operational initiatives at its Ming mine which management expect to deliver monthly cost savings of up to US$1m while maintaining the capacity to deliver 1,350tpd of ore to the processing plant.
- The workforce has been reduced by “45 persons, down to 186” or approximately 20% with development crews reduced from 12 down to four, and temporarily “to three as the current mine plan does not currently need the development rate that four crews can deliver”.
- Underground blasting patterns have been adjusted enabling an increase in the shift roster from 2 shifts of ten hours to 2 shifts each of eleven hours “increasing the time available for work by two hours (10%) per day, further improving the utilisation of people and equipment”.
- The deployment of underground crews and equipment has been reallocated “to reduce non-productive equipment travel time between working areas and maximise personnel utilisation” while maintaining “all four current mining areas at an optimum stope ore to development ore ratio going forward”.
- The changes are expected to lead to a reduction in the inventories of developed ore from the 383,000t available at the end of October to 240,000t by the end of June 2023, however, at the planned 1,350tpd plant processing rate, we estimate that this reduces the available ore inventory from over 280 days to 178 days which should provide sufficient surplus capacity for most eventualities.
- We comment that in the company’s H1 results for the period to 30th June production costs amounted to US$26.3m and hence if these initiatives deliver the planned US$1m/month saving this would equate to a meaningful saving of around 20%.
- Rambler Metals also confirms that it “is in discussions with several groups as the Company seeks to restructure its finances” and that continuing discussions with its “principal secured creditor”, Newgen Resource Lending Inc, on “a solution to the refinancing or restructuring of the Company” remain “constructive”.
Conclusion: Cost cutting measures, including workforce reductions and new shift arrangements at the Ming mine are targeted to deliver monthly savings of around US$1m while maintaining mill feed capacity. Discussions on the financial restructuring are continuing and said to be “constructive”.
*SP Angel act as Nomad and Broker to Rambler Metals & Mining. An SP Angel analyst holds shares in Rambler Metals & Mining.
Resolute Mining Limited (ASX:RSG, LSE:RSG) 11p, Mkt Cap £121m – A$140m underwritten placing to strengthen balance sheet
- Resolute reports a A$140m underwritten placing at 16c per share – a 22% discount to its last trading price in Australia.
- Funds will be used in order to pay down the Company's Syndicated Loan Facility – with net debt reduced to US$65m from US$156m.
- In addition to the A$140m, Resolute will also raise up to A$60m from a non-underwritten retail entitlement offer, with funds used to “further repay debt, fund general working capital and costs of the Equity Raising, in addition to supporting the Company's Syama North expansion plan.”
- The Syama north expansion plan focuses on Reserve conversion and completion of the PFS in Q1 2023 ahead of commencing a DFS shortly after.
- Terry Holohan, CEO and Managing Director commented: "Resolute's performance has steadily improved with four consecutive quarters of increased production. This equity raising is the final step in Resolute's transition to a sustainable gold producer with a de-risked balance sheet . The Company is now in a strong position to pursue a new open pit operation at Syama North, together with low capital expansion options for the Sulphide circuit."
- Resolute’s last quarterly update showed the company poured 90.4koz during the quarter, vs 89.1koz in Q2 22 and 76.3koz in Q3 21.
Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF)* 2.5p, Mkt Cap £41m – Independent NED appointment
- Diogo da Silveira joins the Board as Independent Non-Executive Director effective from 10 November.
- Mr da Silveira, 61, is a dual national (Portuguese/French) and is a former McKinsey Partner.
- He served as CEO of a number of listed and private companies in the past including a leading Portugues forestry operator, Navigator, whose operations experienced similar permitting challenges to the mining sector.
- Mr de Silveira is currently the Chairman of Floene Energias, the leading gas DSO (Distribution System Operator) in Portugal.
- He was a management member of several Portuguese industrial associations and also serves the French Embassy in Portugal as Conseiller du Commerce Exteriuer.
Conclusion: The Company strengthens the Board welcoming Diogo da Silveira into an Independent NED role who brings a wealth of experience of operating in the country and an extensive contact base in the business community.
*SP Angel act as Nomad and Broker to Savannah Resources
SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF)* 16.52p, Mkt Cap £389m – Interim CEO appointment
- Solgold reports the appointment of non-executive director, Scott Caldwell, as interim CEO following the departure of the incumbent, Darryl Cuzzubbo who has left the company and the Board.
- Mr. Caldwell is described as “a mining engineer with over 40 years' experience in the global mining industry having held a number of senior executive roles including as Chief Executive Officer at both Guyana Goldfields Inc. (TSX:GUY) and Allied Nevada Gold Corp., as well as Chief Operating Officer at Kinross Gold Corp”.
- He said that “I have great familiarity and am a strong supporter of SolGold's world class Cascabel project”.
- Solgold confirms that it is looking for a permanent appointee for the CEO role.
*SP Angel acts as Financial Advisor to SolGold
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%