SP Angel Morning View -Today’s Market View, Wednesday 17th January 2023

Chinese GDP hits official target despite 20% fall in new housing starts and falling property prices

MiFID II exempt information – see disclaimer below

Antofagasta (ANTO LN) – Achieves 2023 production guidance and expecting further expansion in 2024

Beowulf Mining* (BEM LN) – Revised graphite anode material plant to maximise value in disrupted supply chain

Bluejay Mining* (JAY LN) – Bluejay Mining raises £1.2m at 0.4p/s

Firefly Metals (FFM AX) – Initial drilling by new owner of the Ming mine extends the mineralised envelope by 350m

Griffin Mining Ltd (GFM LN) – Record production results as ore mined jumps 77%

Copper prices slide as dollar strengthens and Beijing holds off on further stimulus

• A sharp rise in the US dollar yesterday on the back of Fed Governor Waller’s comments has hit copper prices below $8,300/t.
• The move came despite further supply pressure as Teck missed guidance on a disappointing QB2 rammp up and a geotechnical fault at its Highland Valley operation.
• Concentrate supply remains pressured on the lack of Cobre Panama product, with TCRC fees continuing to fall.
• Analysts expect unit costs for copper operations are set to be 30-50% higher on average in 2024 than beginning of 2020. (Bloomberg)
• China data continues to disappoint, with home prices contuing to fall, down the most in December since 2015.
• Higher expectations of rate cuts pushed yields higher, weighing on growth expectations.

Iron ore under pressure as Chinese steel mills slash output on thin margins

• Iron ore continues to fall below $130/t, with crude steel output in December sliding 15% yoy.
• Homebuying is falling from China personal home sale weakness,.
• 247 steel mills surveyed in China showed a rebound in inventory levels, weighing on supply concerns. (Mysteel)

Gold prices slide as Treasuries weaken and dollar strengthens on hawkish Waller comments

• Gold prices have fallen to $2,020/oz in the sport market following a repricing of the dollar.
• The greenback rose to one-month highs after Fed Governor Waller’s comments, who called for caution on rate cut wagers.
• The US 10-year sold off as a result, with yields bouncing to 4.087%, up from December lows of 3.77%.
• Expectations of a Fed rate cut in March has fallen to 61%, having hit c.80% last week.
• Traders will look to retail sales tomorrow, jobless claims on Thursday and the Michigan surveys due Friday.

Zinc – Nyrstar to putting a smelter on care and maintenance in Holland in the second half of January. 

Nickel – Indonesian ferro nickel production came in at 535,200t for 2023 vs 628,000t target, with 71,400t of nickel matte.

• First Quantum cuts production at Raventhorpe with mining suspended at Shoemaker-Levy
• Ravensthorpe will continue to process stockpiles and should hopefully reopen in 18-24 months.
• The plant produced around 30,000t of nickel hydroxide in the first nine months of 2023 and around 1,000t of cobalt.

Economics

US – Fed Governor Christopher Waller warned the central bank needs to thread carefully regarding the start of rate cuts pushing back against market expectations for as many as six rate cutes this year.

• “When the time is right to begin lowering rates, I believe it can and should be lowered methodically and carefully,” he said.
• “With economic activity and labor markets in good shape and inflation coming down gradually to 2%, I see no reason to move as quickly or cut as rapidly as in the past,” Waller added.
• “I will need more information in the coming months confirming or (conceivably) challenging the notion that inflation is moving down sustainably toward our inflation goal.”
• Comments by a voting member of the FOMC saw US treasury yields jump and investors revising their monetary policy outlook.

China – The economy meets the Politburo annual target of “around 5%” in 2023 with GDP growth picking up in the final quarter of the year, albeit, underperforming expectations slightly.

• The gauge benefited from a Covid affected 2022 comparison base with latest incoming economic data warning of structural slowdown in the second largest economy.
• Current expectations are for authorities to target same “around 5%” growth rate in 2024.
• Property market remains a drag with investment in the sector down nearly 10% during the year while new housing starts were down more than 20%.
• Monthly property prices data highlighted a continuing struggle with prices in first tier cities for new homes and secondary housing down 0.4%mom and 1.1%mom in December.
• Separate report showed Chinees population suffered a second consecutive annual decline in 2023 on the back of a record ow birth rate and a wave of Covid-19 deaths.
• Population dropped 2.1m or 0.15% to 1.4bn in 2023 with a fall beating 850k lost through 2022.
• GPD (%yoy): 5.2 v 4.9 Q3/23 and 5.3 est.
• Industrial Production (%yoy): 6.8 v 6.6 November and 6.6 est.
• Retail Sales (%yoy): 7.4 v 10.1 November and 8.0 est.
• FAI ex Rural (%yoy YTD): 3.0 v 2.9 November and 2.9 est.
• Property Investment (%yoy YTD): -9.6 v -9.4 November and -9.5 est.
• Imports of unwrought copper fell 16.6% to 459,338t, yoy in December down 6.3% to 5.5mt according to data from General Administration of Customs
• Full year imports were calculated 6.3% lower at 5.5Mt on 2022.
• Copper concentrate imports rose 9.1% in 2023 to 27.54mt setting a new record
• Copper refined output rose 13.3% to 11.81mt in November
• China exported 490,499.80t of unwrought aluminium and aluminium up from up from 489,594.60t in November.

Taiwan – Taiwanese investments approved for mainland China fell to US$3.04bn, a 22-year-low last year – Taiwan’s Ministry of Economic Affairs.

• China mainland investment in Taiwan also fell as Beijing expressed its displeasure over Taiwan’s continued independence and democracy.(SCMP)
• Taiwan approved mainland Chinese investment coming into Taiwan reached US$29.7m last year on 30 total project applications,

ECB – President Christine Lagarde is not ruling out the first cut this summer.

• Lagarde comments were aimed at aggressive market expectations that were earlier pricing in the first move as early as April.
• Her view was shared by Dutch central bank head, Klaas Knot, who said that “markets are getting ahead of themselves, it’s pretty clear, and the problem for us is that in the end that might become self-defeating”.
• “We are optimistic that we have a credible prospect of a return of inflation to 2% in 2025 but a lot still needs to go well for that to happen,” he added.

UK – The pound and sovereign bond yields climbed this morning as traders adjust their expectations for the first rate cut on stronger than anticipated inflation numbers.

• The increase was driven by a surprise strong services inflation reading which came in at 6.4%.
• Headline and core CPI came in at 4.0% and 5.1% in December, respectively, defying expectations for a pull back in inflation rates.
• Data is seen to push timing on the first BOE rate cut forward from previously expected May.
• CPI (%mom): 0.4 v -0.2 November and 0.2 est.
• CPI (%yoy): 4.0 v 3.9 November and 3.8 est.
• Core CPI (%yoy): 5.1 v 5.1 November and 4.9 est.

Currencies

US$1.0874/eur vs 1.0919/eur previous. Yen 147.81/$ vs 146.09/$. SAr 19.030/$ vs 18.821/$. $1.266/gbp vs $1.267/gbp. 0.655/aud vs         0.663/aud. CNY 7.197/$ vs 7.183/$.

Dollar Index 103.38 vs 102.98 previous.

Commodity News

Precious metals:

Gold US$2,023/oz vs US$2,049/oz previous

Gold ETFs 84.6moz vs 84.6moz previous

Platinum US$893/oz vs US$911/oz previous

Palladium US$927/oz vs US$968/oz previous

Silver US$22.75/oz vs US$23/oz previous

Rhodium US$4,500/oz vs US$4,500/oz previous

Base metals:

Copper US$ 8,267/t vs US$8,384/t previous

Aluminium US$ 2,188/t vs US$2,213/t previous

Nickel US$ 16,080/t vs US$16,150/t previous

Zinc US$ 2,498/t vs US$2,558/t previous

Lead US$ 2,080/t vs US$2,109/t previous

Tin US$ 25,105/t vs US$24,785/t previous

Energy:

Oil US$77.2/bbl vs US$78.1/bbl previous

• Crude oil prices fell after Chinese economic data disappointed markets and the US Fed Governor Christopher Waller said the central bank may not cut rates as aggressively as in past easing cycles.
• European energy prices edged lower with French nuclear reactor operating levels increasing 1.3% w/w to 82.7% of 61.4MW capacity and Gazprom reporting a stable supply of 41.4mcm/d (~1.5bcf/d) via the Ukraine.
• Shell plans to sell its onshore Nigeria E&P subsidiary (SPDC) to a consortium of five mostly local companies for up to $2.4bn. SPDC operates and has a 30% stake in a JV that holds 18 onshore and shallow water leases.

Natural Gas €29.2/MWh vs €29.4/MWh previous

Uranium UXC US$92.50/lb vs US$92.50/lb previous

Bulk:

Iron Ore 62% Fe Spot (cfr Tianjin) US$128.8/t vs US$129.2/t

Chinese steel rebar 25mm US$572.9/t vs US$574.2/t

Thermal coal (1st year forward cif ARA) US$104.3/t vs US$103.5/t

Thermal coal swap Australia FOB US$127.0/t vs US$127.5/t

Coking coal swap Australia FOB US$317.0/t vs US$317.0/t

Other:

Cobalt LME 3m US$29,135/t vs US$29,135/t

NdPr Rare Earth Oxide (China) US$55,647/t vs US$55,758/t

Lithium carbonate 99% (China) US$12,019/t vs US$12,043/t

China Spodumene Li2O 6%min CIF US$1,000/t vs US$1,000/t

Ferro-Manganese European Mn78% min US$1,060/t vs US$1,064/t

China Tungsten APT 88.5% FOB US$305/mtu vs US$305/mtu

China Graphite Flake -194 FOB US$590/t vs US$600/t

Europe Vanadium Pentoxide 98% 6.0/lb vs US$6.0/lb

Europe Ferro-Vanadium 80% 28.75/kg vs US$28.75/kg

China Ilmenite Concentrate TiO2 US$316/t vs US$317/t

Spot CO2 Emissions EUA Price US$70.5/t vs US$70.8/t

Brazil Potash CFR Granular Spot US$295.0/t vs US$295.0/t

EV & Battery News

VW in discussion with Blue Solutions over solid-state batteries

• The automaker is looking for other potential partners to develop solid-state batteries with having seen plans with US start-up QuantumScape facing repeated delays.
• Blue Solutions, a unit of French conglomerate Bollore, already makes solid-state batteries for Daimler electric buses and has confirmed it is working on a battery for passenger cars.
• The firm has said is aiming to produce a passenger car battery with a charging time of 20 minutes and to produce it in a “gigafactory” by 2029. (Reuters)
• Solid-state batteries are considered the “holy grail” for EVs as they offer longer driving ranges, shorter charging times and reduced fire risk compared with the lithium-ion batteries mostly in use today.

Company News

Antofagasta (ANTO LN) 1,573p, Mkt Cap £16bn – Achieves 2023 production guidance and expecting further expansion in 2024

• Following a 10% increase in copper production during the final quarter to 191500t, Antofagasta reports 2023 copper production of 660,000t (2022 – 646,200t) at a cash cost, net of gold and molybdenum credits, of US$1.61/lb (2022 also US$1.61/lb).
• When it released its Q3 production data in October 2023, the company confirmed guidance of 640-670kt of copper production and net costs at $1.65/lb; a performance today’s announcement confirms.
  • As the phase 1 expansion ramps up, the Los Pelambres mine contributed 300,300t of the copper output (2022- 275,000t) at a net cash cost of US$1.14/lb net of the contribution from the 8,100t of, molybdenum and 43,300oz of gold production.
  • The company highlights the commissioning of the Phase 1 desalination plant at Los Pelambres as a contributory factor to the increased production and confirms that the “fourth concentrator line at Los Pelambres is nearing the successful completion of its commissioning phase, with an additional two million tonnes of ore processed as of the end of the year”.
  • At Centinela, where the company recently announced the approval of a second concentrator adding a further “170,000 copper-equivalent tonnes of production”, the mine contributed 162,700t of concentrate copper production (2022 – 149,300t) with 2,900t of molybdenum and 165,800oz of gold by-products.
  • The cathode plant at Centinela produced a further 79,300t of copper output.
  • Production for 2023 at the smaller Antucoya mine amounted to 77,800t at a cash cost of US$2.63/lb (2022 – 79,200t at US$2.50/lb) while the Zaldivar mine produced a further 40,500t of copper at a cash cost of US$2.95/lb (2022 – 44,500t at US$2.39/lb) as throughput declined from 40,400tpd to 35,000tpd.
• Production guidance for 2024 is for copper output in the range 670-710,000t of copper at a net cash cost of US$1.60/lb.
• In detail;
  • Los Pelambres is projected to deliver 335-350,000t of copper in 2024 at a cash cost of US$1.35/lb net of by-product credits from the production of 45-55,000oz of gold and 8,500-9,500t of molybdenum.
  • Centinela is expected to produce 225-240,000t of copper at a cash cost (net of 150-160,000oz of gold production and 2,500-3,000t of molybdenum) of US$1.45/lb.
  • Guidance for Antucoya’s 2024 production is 75-80,000t of copper at US$2.50/lb and for a further 35-40,000t at US$2.95/lb from Zaldivar.
• Antofagasta is expecting capital expenditure of US$2.7bn in 2024 (excluding Zaldivar) “as development expenditure commences on the Centinela Second Concentrator… and other growth projects at Los Pelambres and Centinela”.
• In addition to reporting operational performance at the mines, Antofagasta also highlights the previously announced acquisition of a 19% interest in Peru’s largest publicly traded precious and base-metals company, Buenaventura.  Commenting on the transaction, CEO, Ivan Arriagada, said that it reflected “the potential we see in Buenaventura’s asset portfolio and the highly prospective geology of Peru”.

Conclusion: Additional capacity at Los Pelambres and Centinela is expected to deliver production growth in 2024.

*An SP Angel mining analyst has previously visited a number of Antofagasta’s copper mines

Beowulf Mining* (BEM LN) 1.35p, Mkt Cap £16m – Revised graphite anode material plant to maximise value in disrupted supply chain

• Beowulf provides an update on its Graphite Anode Materials Plant in the GigaVaasa area of Finland.
• The Company is shifting and accelerating its development strategy to maximise value from the anode material value chain.
• This will be involve incorporating more stages into the production of anode graphite material, including spheronisation, purification and coating.
• As a result, Beowulf will look to develop an updated PFS, which includes the earlier stages of CSPG production.
• The original PFS for the GAMP coating process included highlights of:
  • NPV8 $242m for a post-tax IRR of 39%
  • CAPEX of $117m and a 10-year operation producing 20ktpa of CSPG.
  • OPEX of $5,064/t and annual average EBITDA of $79m using a conservative $9,000/t average CSPG price.
• Originally the Company had planned to develop the GAMP plant in two phases, initially producing the 20ktpa CSPG as outlined above, before building out the earlier phases of the plant with the resulting cash flows.
• The updated plan will see Beowulf/Grafintec incorporate the three-stage plant in the initial development, sourcing feed directly from third-party mines.
• We would anticipate higher initial CAPEX requirements but lower OPEX requirements, given the substantial pricing element of spherical graphite (averaging c.$2.5k/t) in the process.
• Natural flake graphite concentrate will be sourced from third parties initially, before looking to develop Beowulf’s wholly owned Aitolampi graphite project, where previous test-work has shown SPG-standard purity results.
• The scale of the plant will be kept at 20ktpa CSPG, with the team looking to increase this to 60ktpa.
• The current timeline for the revised plan will include the delivery of a PFS by the end of this year, triggering the start of a DFS.
• The DFS is expected to take between six to nine months and will be completed alongside pre-qualification testing with downstream users.
• Beowulf is completing test-work and techno-economic studies currently with their technology partner Dorfner Anzaplan GmbH.
• Alongside test-work, the Group expects the EIA to be completed by the end of 2024 a slight delay, however this will open the door to an Environmental Permit.
• The Company retains its guidance of a construction decision by 1Q26, enabling initial production by 1Q27.

Conclusion: Beowulf/Grafintec continue to develop their strategy from maximising value in the graphite anode material supply chain in Europe. The recent export ban of specialised graphite products from China, active from December 1^st 2023, has resulted in an increased reliance on ex-China CSPG supply. As a result, Beowulf is looking to maximise value from its anode plant in the strategic GigaVaasa area. This will entail optimising the plant to include earlier stages in the purification process to maximise value. We consider this integrated approach to be more attractive to potential funding partners, and we look forward to further updates.

*SP Angel acts as Nomad and Broker to Beowulf Mining

Bluejay Mining* (JAY LN) 0.42p, Mkt cap £6.2m – Bluejay Mining raises £1.2m at 0.4p/s

(Bluejay Mining holds 100% of the Hammaslahti and Enonkoski projects)

• Bluejay Mining reports the raising of £1.2m at 0.4p/s.
• The placing is being done in two parts with 150,145,715 shares being issued under the company’s existing authority and a further 149,854,285 shares to be issued on the expansion of the company’s share  issuing authority at the next General Meeting before 6^th February.
• Use of Proceeds:
  • Field activities and travel
  • Legal and administrative costs
  • Project divestment activities
  • Regulatory and licensing costs and
  • for general corporate and working capital purposes.
• Management contributed £150,000.
• Eric Sondergaard is appointed as the new Managing Director. He has experience of working in challenging locations in Greenland.
• Management say they are cutting costs across the entire organisation but gives no further details.
• The team plan to focus on the Disko project which they operate in jv with KoBold Metals.

*SP Angel acts as nomad and broker to Bluejay Mining. The analyst has visited the historic Enonkoski mine site and holds shares in Bluejay Mining

Firefly Metals (FFM AX) A$0.55, Mkt cap A$209m – Initial drilling by new owner of the Ming mine extends the mineralised envelope by 350m

• Yesterday, Australian listed Firefly Metals (formerly AuTeco Minerals) reports drilling results from its Green Bay project in Newfoundland which it acquired from Rambler Metals & Mining in October 2023.
• Drilling underground at the Ming mine has now extended “the known VMS mineralisation by 350m, taking it well beyond the boundary of the current resource, which stands at 39.2Mt at 2.1% for 811,000t … [copper equivalent] … CuEq”. This includes the 9.1mt of ‘Indicated and Inferred’ resources at the Little Deer project.
• The 31^st March 2022 mineral resources estimate for the Ming mine amounts to 8.4m ‘Measured’ tonnes at an average grade of 1.71% copper, 0.5g/t gold and 3.6g/t silver with an additional 15.3m ‘Indicated’ tonnes at an average grade of 1.85% copper, 0.3g/t gold and 2.4g/t silver and a further 6.4m ‘Inferred’ tonnes averaging 1.86% copper, 0.4g/t gold and 2.6g/t silver.
• The company highlights recent drilling intersections contributing to the extension of the mineralised envelope including:
  • Intersections of 17.8m at an average grade of 4.43% copper, 2.2g/t gold and 18.8g/t silver from (6.6% CuEq) 137.6m depth in hole MUG-23-003 which also intersected 10.4m averaging 3.21% copper, 2.0g/t gold and 17.4g/t silver (5.3% CuEq) from 159.5m and 6.6m at an average grade of 2.67% copper, 0.3g/t gold and 3.4g/t silver (6.2% CuEq) from 33.8m depth; and
  • Intersections of 14.7m averaging 2.63% copper, 5.5g/t gold and 24.2g/t silver and 1.2% zinc (7.5% CuEq) from 31.8m depth in hole MUG-23-004 which also intersected 11.2m averaging 6.41% copper, 3.4g/t gold ,and 29.2g/t silver (9.5% CuEq) from 187.8m and 8.9m at a grade of 3.05% copper, 0.3g/t gold and 3.4g/t silver (3.3% CuEq) from 86.2m and 5.0m averaging 4.83% copper, 0.3g/t gold and 6.1g/t silver (5.1% CuEq) from 159.1m depth; and
  • Intersections of 8.0m averaging 2.7% copper, 1.3g/t gold and 13.3g/t silver 93.8% CuEq) from 138m in hole MUF-23-005, which hit a further 8.0m of mineralisation averaging 1.92% copper, 0.96g/t gold and 7.41g/t silver (2.8% cuEq) from 150.0m;and
  • An intersection of 46.4m at an average grade of 4.57% copper, 1.2g/t gold and 7.5g/t silver (reported as 5.6% on a CuEq basis) from a depth of 227.3m in hole MUG-23-006 as well as 27.5m at an average grade of 1.5% copper 1.6g/t gold and 22.5g/t silver from 50.7m depth and 14.8m at an average grade of 1.86% copper, 2.5g/t gold and 11.0g/t silver (3.9% CuEq) from 106.8m depth.
• The company says that with “the down-dip continuity of the mineralised VMS horizons established, further drilling at more favourable orientations will be conducted during 2024 from the exploration drill drive currently being mined as part of FireFly Metals’ accelerated resource growth strategy”.
• It also says that the drilling “also intersected a precious metals-enriched VMS zone at Ming South within Green Bay. This returned an intersection of 14.7m @ 2.6% copper, 5.5g/t gold and 24.2g/t silver” in hole MUG-23-004.
• Firefly Metals reports that “170m of the planned 750m of exploration development has been completed”.  The company also confirms the arrival on-site of a second drilling rig which “will immediately commence resource extension drilling”.
• Commenting on the drilling results, Managing Director, Steve Parsons, said that “To extend the known mineralisation by 350m with such wide, high-grade intersections in our first drilling program speaks volumes about the project’s exceptional quality and immense upside”.

Conclusion: Recent drilling by the new operators of the Ming mine extends the known mineralisation by 350m with structures remaining open at depth.  We await further news as the drilling proceeds.

Griffin Mining Ltd (GFM LN) 94p, Mkt Cap £173m – Record production results as ore mined jumps 77%

• Griffin Mining reports it mined 508kt in Q4 vs 363.4kt in Q3.
• Gold in concentrate increased to 6,785oz vs 3,950oz in Q3.
• Silver in concentrate increased to 76.5koz from 69koz but is down from Q1 and Q2 which were 85.6kt and 82.8kt respectively.
• Full year gold in concentrate produced stood at 17koz vs 10koz in 2022.
• Management describes the results as ‘spectacular’ and thanks the people ‘who made this possible and refused to be governed by the accepted wisdom that this could not be accomplished in China.’
• The Company is in the processing development work at its new third portal at the Caijiaying mine.

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

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.

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%