SP Angel Morning View -Today’s Market View, Monday 25th March 2024

Gold prices hold firm as China moves to strengthen CNY after Friday’s fall

Copper hovers below $9,000/t level as dollar strength caps rally

MiFID II exempt information – see disclaimer below

Botswana Diamonds (BOD LN) – 2023 results highlight the discovery of a large gravity anomaly adjacent to the company’s KX36 licence in Botswana

Central Asian Metals (CAML LN) – Full Year Results and Investment in Aberdeen Minerals

Cobra Resources (COBR LN) – Boland drilling results, South Australia

Gemfields Group (GEM LN) – Weaker production of high-quality gems in Zambia and Mozambique in 2023

Golden Metal Resources (GMET LN) – Ground magnetic survey underway on the Garfield project, Nevada

KEFI Gold and Copper* (KEFI LN) – Tulu Kapi funding update

Mkango Resources* (MKA LN) – £750k raise to advance RE magnets recycling business

Oriole Resources* (ORR LN) – Drilling to optimise and expand Bibemi Gold MRE

Orosur Mining* (OMI LN) – Aiming to reassume control of Anzá Gold Project by April

Power Metal Resources* (POW LN) – Update on Uranium spin-out IPO

Sociedad Química y Minera de Chile (SQM) – SQM and Codelco delay lithium exploration deal in the Salar de Atacama until end May

Sharepickers – on Gold, Copper, Arc Minerals, Atlantic Lithium, Cornish Metals, Empire Metals & Sovereign Metals

Podcast: https://audioboom.com/posts/8477440-john-meyer-on-gold-copper-arc-atlantic-cornish-empire-sovereign.

Youtube: https://www.youtube.com/watch?v=PcmKx065aWw.

Gold prices hold firm as China moves to strengthen its currency after Friday’s fall

• Reports also suggest China and other central banks continue to buy gold.
• Recent interest rate moves by major central banks of Japan, Taiwan and Turkey along with the expectations for US rate cuts are making gold increasingly attractive
• Investors also remain concerned at the level of high government debt supported by the US and China.
• China has imposed restrictions in Local government debt financing vehicles and uses for new funds raised.
• Chinese regulators have labelled Evergrande as the largest ever fraud in history at $78bn of inflated sales.

China – PBoC provides Aggressive support for CNY with US dollar sales in reaction to sharp CNY fall on Friday

• The PBoC stepped into the market this morning to buy CNY.
• State-owned banks are also reported to have been selling US dollars onshore to tighten the onshore market.
• It may be coincidental but The timing of the move feels like it follows Japan’s decision to raise rates last week to 0% from -0.1%.
• While the BoJ says it sees no reason for aggressive tightening like Western nations it is possible that money is starting to move away from the CNY back into the Yen.
• Taiwan also raised rates to 2% from 1.875% last week.
• Now the JoJ has started to raise rates, albeit very cautiously, the direction of travel is set and investors will be much more cautious in borrowing in Yen
• Currency controls make it difficult to move large amounts of money out of China without approval but funds still flow via Cryptocurrencie and
• Low volatility and a normally very stable trading range the CNY suitability for carry trades

Copper hovers below $9,000/t level as dollar strength caps rally

• Copper prices are sitting around $8,870/t, having eased from $9,100/t highs reached last week.
• The dollar has strengthened following a rebound in Treasury yields.
• Copper inventory continues to rise, with Shanghai stocks up 8x.
• Contango levels have risen again, suggesting there is ample refined supply, whilst TCRC fees point to limited concentrate availability.
• Peru ceded second spot in global copper production to the DRC, with Kamoa Kakula driving the increase.

Sub-sea mining – India deep ocean exploration

• India are developing a deep-sea exploration vehicle, the Matsya 6000, to explore for minerals in the deep sea.(BBC)
• The ISA, International Seabed Authority, a UN-affiliated body has issued 31 exploration licences to member countries.
• If the ISA approves India’s new applications, its licence count will be equal to that of Russia and one less than China.
• India is looking for polymetallic sulphides in and around hydrothermal vents in the Carlsberg Ridge of the Central Indian Ocean.
• The ISA noes another unnamed country has claimed the seabed area which India is applying for as part of their extended continental shelf
• Both nations appear to wish to explore cobalt-rich ferromanganese crusts of the Afanasy-Nikitin Seamount in the Central Indian Ocean.
• Trials in 2022 at depths of up to 5,270m collected nickel, manganese and cobalt rich polymetallic nodules as part of a from the Indian Ocean.
• India, China, Germany and South Korea already have exploration licences for polymetallic sulphides in the Indian Ocean ridge area.

Conclusion: Our team has previously visited Nautilus Minerals deep sea trial mining operations as well as the machinery to be used in deep sea mining.

While the mining technology appears to work at depth it is relatively expensive to build and particularly expensive to operate.

The major, unresolved flaw is in the lifting of the material from the seabed.

Air lift technology is not practical from deep water while stages of pumping stations as formerly proposed by Nautilus Minerals are likely to be impractical.

The capex and opex costs are almost certainly going to sink any commercial operation with some rare possible exceptions.

Nation states which subsidise deep sea ocean mining ventures will either need a strategic military reason to collect rare metals or will tire of the huge expense of operating such ventures.

Either way we don’t think the environmental protestors have much cause for concern.

Binance, cryptocurrency – Nigeria charges two Binance executives with tax evasion

• Nadeem Anjarwalla escaped during Friday prayers at a mosque.
• The other appears to have left the country.

Economics

China – The government is reducing the use of foreign chips in state computers and servers in a drive to reduce reliance on foreign technology suppliers.

• Procurement guidelines were first unveiled December last year and are now being enforced blocking the use of Intel and AMD chips.
• Additionally, guidelines are looking to limit the use of Microsoft operating system and promoting the use of Chiense alternatives.

Currencies

US$1.0817/eur vs 1.0808/eur previous. Yen 151.25/$ vs 151.44/$. SAr 18.962/$ vs 18.976/$. $1.261/gbp vs $1.258/gbp. 0.653/aud vs 0.652/aud. CNY 7.206/$ vs 7.227/$.

Dollar Index 104.36 vs 104.38 previous.

Precious metals:

Gold US$2,168/oz vs US$2,166/oz previous

Gold ETFs 82.3moz vs 82.2moz previous

Platinum US$903/oz vs US$907/oz previous

Palladium US$1,002/oz vs US$1,007/oz previous

Silver US$24.72/oz vs US$25/oz previous

Rhodium US$4,600/oz vs US$4,600/oz previous

Base metals:

Copper US$ 8,904/t vs US$9,898/t previous

Aluminium US$ 2,308/t vs US$2,294/t previous

Nickel US$ 17,160/t vs US$17,291/t previous

Zinc US$ 2,479/t vs US$2,506/t previous

Lead US$ 2,038/t vs US$2,045/t previous

Tin US$ 27,650/t vs US$27,230/t previous

Energy:

Oil US$85.8/bbl vs US$85.6/bbl previous

• The US Baker Hughes rig count was down 5 units to 624 rigs last week (-134 or 18% y/y), with oil rigs down 1 to 509 units (-84 y/y) and gas rigs down 4 to 112 units (-50 y/y) as Louisiana fell 4 rigs to 44 units (-14 y/y).
• The Canadian rig count fell 38 units to 169 rigs last week (+4 y/y) due to the seasonal spring break-up.

Natural Gas €28.5/MWh vs €26.7/MWh previous

Uranium Futures $89.3/lb vs $85.8/lb previous

Bulk:

Iron Ore 62% Fe Spot (cfr Tianjin) US$108.6/t vs US$107.1/t

Chinese steel rebar 25mm US$538.5/t vs US$544.2/t

Thermal coal (1st year forward cif ARA) US$109.8/t vs US$109.3/t

Thermal coal swap Australia FOB US$124.3/t vs US$124.8/t

Other:

Cobalt LME 3m US$28,550/t vs US$28,550/t

NdPr Rare Earth Oxide (China) US$49,403/t vs US$47,921/t

Lithium carbonate 99% (China) US$14,918/t vs US$15,071/t

China Spodumene Li2O 6%min CIF US$1,210/t vs US$1,210/t

Ferro-Manganese European Mn78% min US$985/t vs US$985/t

China Tungsten APT 88.5% FOB US$310/mtu vs US$305/mtu

China Graphite Flake -194 FOB US$500/t vs US$510/t

Europe Vanadium Pentoxide 98% 5.2/lb vs US$5.2/lb

Europe Ferro-Vanadium 80% 26.45/kg vs US$26.45/kg

China Ilmenite Concentrate TiO2 US$330/t vs US$327/t

China Rutile Concentrate 95% TiO2 US$1,450/t vs US$1,452/t

Spot CO2 Emissions EUA Price US$60.6/t vs US$59.6/t

Brazil Potash CFR Granular Spot US$305.0/t vs US$305.0/t

Battery News

Europe sees flat sales of BEVs in February, PHEVs gain

• Overall new-car sales in Europe were 995,059 vehicles, up 10% yoy.
• BEV sales saw no growth after demand fell in leading markets including Sweden and Germany.
• Germany’s EV sales dropped 15% yoy as the market struggles following the end of state incentives.
• Plug-in hybrid EVs on the other hand saw 12% growth yoy, outgrowing full-electric EVs and gasoline vehicles.

UK to have 1.24m EVs on roads by end 2024

• In its ‘State of the Switch’ report, New AutoMotive anticipates that the number of EVs on UK roads will increase 24%, from 1m to 1.24m, by end 2024.
• This is slower growth than was seen in 2023 – 314,687 BEVs were registered across the year, 47.4% growth on 2022.

7 millionth BYD vehicle rolls of assembly line

• The automaker reached the milestone today with an updated N7 SUV that will be launched by its premium brand Denza on 1^st April.
• BYD reached the 1m vehicle milestone on 19^th May 2021.
• It then reached the 5m vehicle milestone on 9^th August 2023.

Nissan to target 1m vehicle sales over next three years

• Nissan has said it would launch 30 new models by FYE March 2027 and aim to raise its global sales by 1m vehicles.
• Of the 30 new models, 16 would be electrified.
• Nissan plans to reduce the cost of the next generation of EVs by 30% to make them comparable to internal combustion engine models by 2030.
• The automaker will aim for EVs, including hybrids, to make up 60% of global sales by the end of the decade.

EU sees rising sales of zero emission heavy-duty vehicles

• The number of zero emissions heavy-duty vehicles sold in the EU more than doubled to 11,000 in 2023. (International Council on Clean Transport)
• The sales figures include heavy trucks, light and medium trucks and buses.
• Germany was still the largest purchaser of these vehicles (30%), followed by France (15%) and Netherlands (15%).
• The 60% share of sales in these three countries is down from an 80% share in 2016.
• Spain, Italy, Denmark, Sweden and Portugal have all experience significant growth in sales since 2020.
  • Portugal went from four ZEV heavy-duty vehicles in 2022 to 400 in 2023.
• The share of zero emission buses sold in the EU from manufacturers headquartered in China increased from 10% in 2022 to 30% in 2023.

Company News

Botswana Diamonds (BOD LN) 0.38p, Mkt Cap £4.2m – 2023 results highlight the discovery of a large gravity anomaly adjacent to the company’s KX36 licence in Botswana

1. Botswana Diamonds reports a loss of £0.25m for the six months to 31st December 2023 (2022 – £0.33m loss) and a closing cash balance of £0.33m.
2. Commenting that “the diamond market was depressed throughout 2023”, Botswana Diamonds emphasises the importance of long-term industry trends which is expected to see a widening supply demand gap for natural diamonds and explains that any discovery it may make “in 2024 is unlikely to come into production before 2032”.
3. Commenting on operational highlights during the period, the company says that a gravity anomaly discovered “Earlier this year … on a licence adjacent to our KX36 diamond discovery … is as big or bigger than KX36” which covers 3.5 hectares and hosts an ‘Indicated’  resource of 17.9mt at an average grade of 35 carats per hundred tonnes (cpht) and an additional ‘Inferred’ resource of 6.7mt at a grade of 36cpht.
4. The company explains that further work is needed but that “discovery of the new anomaly strongly indicates that more will be discovered in the surrounding area. BOD has applied for further ground in the area and is hopeful for expeditious award of the licences”.
5. In South Africa, the Marsfontein project “was placed on care and maintenance at the end of 2023 as a result of rising fuel prices and falling diamond prices”.  Botswana Diamonds reminds its readers that “operations at Marsfontein and Thorny River are contracted out on a royalty basis thus there are no costs to BOD”.
6. The company also confirms “Slow but good progress” on its 2022 mining permit application for the Thorny River project.
7. Botswana Diamonds also notes its previously announced participation in the ‘Diamonds of Eswatini’ consortium where the participating group holds a prospecting licence over almost 4,000km² hosting the Dokowayo kimberlite which is reported to have produced 720,222 carats of diamonds between 1986 and closure in 1996.

Conclusion: The discovery of a gravity anomaly on ground adjacent to Botswana Diamonds’ KX36 resource in Botswana may eventually lead to the outlining of further targets

Central Asian Metals (CAML LN) 186p, Mkt cap £330m – Full Year Results and Investment in Aberdeen Minerals

• CAML announces full year results for the period to 31^st December 2023.
• Copper produced over the period at 13.8kt, down from 14.25kt.
• Zinc in concentrate produced at 20.3kt, lead in concentrate at 27.8kt.
• The Company reported gross revenue of $207m, with group EBITDA at $96.5m, down from $132m in 2022.
• FCF reported at $57.5m vs $90m in 2022.
• CAPEX of $28m over the period, with cash at the bank of $57m.
• CAML declares a full year dividend of 18p vs 20p in 2022.
• Completion of Sasa Paste Backfill Plant, initial phase of Sasa new Central Decline and an updated MRE for Sasa adding 2.4mt.
• Guiding to 13-14kt Cu, 19-21 Zn, 27-29 Pb over the 2024 period.

Investment into Aberdeen Minerals

• In addition to releasing full year results, CAML also announces a £3m investment into Aberdeen Minerals.
• CAML will acquire 28.7% of Aberdeen Minerals at a subscription price of 8.5p/share.
• They will also receive warrants, offering the right to invest a further £2m at 11p, increasing ownership to 37.8%.
• Aberdeen Minerals has developed an exploration model, targeting high-grade massive sulphides at depth.
• The investment will fund 10,000m of drilling over two phases at the flagship Arthrath project, aiming to deliver an MRE followed by potential scoping study.

*An SP Angel analyst has visited Aberdeen Minerals’ Scottish projects

Cobra Resources (COBR LN) 1.43p, Mkt cap £6.8m – Boland drilling results, South Australia

• Cobra Resources reports encouraging drilling results from its Boland rare-earths prospect in South Australia.
• The company says that sonic core-drilling results have identified mineralisation in potentially viable concentrations of three zones in geological formations with high permeabilities which may be amenable to in-situ recovery (ISR) techniques.
• Results from three holes show intersections of:
  • 3.1m intersection in Zone 1 at an average grade of 1,007ppm Total Rare Earth Oxides (TREO) with Magnet Rare Earth Oxides (MREO) comprising 23.4% of the total and Heavy Rare Earth Oxides (HREO) a further 17% from a depth of 15.6m; and
  • 1.9m in Zone 2 at an average grade of 1,043ppm TREO including 22% MREO and 18% HREO from a depth of ~20.5m; and
  • 0.6m in Zone 3 at an average grade of 1,538ppm TREO including 23% MREO and 28% HREO from a depth of ~26.6m.
• The company confirms that “Particle size distribution yields a high calculated transmissivity of 135-275 m/day1 and is very supportive of high ISR success”.
• The company says that its modelling, “based on the downhole geophysical responses” indicates that “Zone 1 mineralisation is mapped across ~128,000,000m², Zone 2 mineralisation is mapped across ~58,000,000m² and Zone 3 mineralisation is mapped across ~139,000,000m²”.
• A further 233 samples from 13 boreholes “are at the laboratory … [and their] … results will validate and refine the model with the aim of supporting a near term maiden mineral resource estimation”.
• Commenting on the results from Boland and particularly on the possibility of ISR, CEO, Rupert Verco, said that ISR “is the preferred mining method from scale, cost and environmental perspectives and we are now positioned to be industry leaders in applying this form of mining long used for uranium to ionic rare earth mineralisation”.

Conclusion: We await further results and the expected mineral resource estimate from Boland.  Initial results indicate that low impact in-situ recovery techniques may be applicable.

Gemfields Group (GEM LN) 12.7p, Mkt Cap £149m – Weaker production of high-quality gems in Zambia and Mozambique in 2023

1. In its 2023 results, Gemfields reports lower revenues of US$262m (2022 – US$341m) along with weaker EBITDA of US$83m (2022 – US$166m) and a loss of US$2.8m (2022 – US$74.3m profit).
2. The company ended 2023 with net cash of US$11.1m (2022 – US$104.5m).
3. CEO, Sean Gilbertson, described 2023 as “a year of both achievements and challenges” which, despite “its second highest annual revenues … [also saw weaker production] … of gemstones in the premium quality category … at both Kagem and Montepuez Ruby Mining”.
4. Mr. Gilbertson also confirmed that “2024 will continue to see considerable investment across our mining and development operations” while also noting that the “market for coloured gemstones can and does shift from year to year. While prices for our emeralds and rubies remain healthy, they are certainly down on the remarkable figures we saw in 2022”.
5. Gemfields also confirms that “Construction of second processing plant in Mozambique is fundamentally on track and on budget with completion expected during H1 2025”.
6. In a separate announcement today, Gemfields reports that an auction sale of emeralds from its Kagem operation, held earlier this month realised US$17.1m through the sale of 40 (3.85m carats) of the 43 lots offered at an average price of US$4.45/carat.
7. We note that the average price is lower than that achieved in recent auctions of the Kagem product which have realised between US$9.37/carat in March/ April 2022 to an average US$7.51/ carat in the most recent auction held in August/September 2023 and still below the lowest average US$7.13/carat of the last 4 sales auctions achieved in the March 2023 auction.
8. The lower prices achieved are explained in the comment by Adrian Banks, Managing Director of Product & Sales, that the auction “included large quantities of lower-quality emeralds which would normally be sold to smaller manufacturers in Jaipur via our Direct Sales channel. These parcels accounted for 55% of the auction by weight, resulting in the lower overall dollar-per-carat figure realised at this auction”.

Golden Metal Resources (GMET LN) 13.75p, Mkt Cap £12.4m – Ground magnetic survey underway on the Garfield project, Nevada

1. Golden Metal Resources reports that a high-resolution ground magnetic survey is being conducted by its contractor, SJ Geophysics, at its wholly-owned its Garfield project area in the Walker-Lane Belt of Nevada.
2. The survey will help to test the company’s exploration model, based on “the historic exploration work” that “there could be additional key potential porphyry intrusive centres to be discovered across Garfield, which if proven correct would further significantly increase the prospectivity and inherent value of the Project”.
3. The on-site work follows the recent £750,000 strategic financing and the announcement in January of sample results from Garfield of “up to 22.7g/t gold (Au) and 1,225g/t silver (Ag)”.

Conclusion: Golden Metal Resources is following up recent early-stage exploration at its Garfield project with high-resolution ground magnetic surveying to assess the possibility of larger scale potential.  We await further news as the programme progresses.

KEFI Gold and Copper* (KEFI LN) 0.6p, Mkt Cap £28m – Tulu Kapi funding update

• The Company provides an update regarding funding of the Tulu Kapi Gold Project on course for start of development works in H1/24.
• Given positive regulatory changes in foreign direct investment in local projects the Company is able to focus on lower cost source of funding in addition to bank project financing.
• The plan is to secure $100m in the form of Equity Risk Notes with a fixed rate of 12% and either paid off in cash or convertible in KEFI shares (at KEFI’s discretion) in year 4 (ie two years into full production at Tulu Kapi).
• The Company is reporting that the investor represented by a multi-national corporation has now received initial board approvals for its contribution.
• The Company is also reporting that credit committee approval processes at co-lender Africa Finance Corporation (AFC) responsible for $95m contribution of $320m total project development cost estimate are underway.
• The team is expecting final documentation approvals to be secured by mid-2024.

*SP Angel acts as Nomad and Broker to KEFI Gold and Copper. The analyst has previously visited the Tulu Kapi gold mine. A SP Angel corporate finance partner recently attended a meeting of finance partners in Addis Ababa.

Mkango Resources* (MKA LN) 7.0p, Mkt Cap £16m – £750k raise to advance RE magnets recycling business

• The Company is raising £750k at 5p to ramp up production at the HPMS recycling facility at Tyseley Energy Park in Birmingham.
• First commercial sales of recycled NdFeB magnets are targeted for H2/24 with initial production guided at 25-30tpa NdFeB and significant expansion potential.
• Additionally, raised funds will be used for orders of long lead time equipment for a planned second HyProMag unit I Germany unlocking additional grant funding.
• Discussions with potential strategic investors, project finance providers, grant funding bodies regarding funding to scale up recycling part of the Group are ongoing.
• William Dawes (CEO) is contributing £150k in the current raise.
• “Mkango sounded out the market in January of this year with a view to considering a fund raising to pursue all of Mkango’s existing business lines… Given the share price decline during this period, the Company has decided to minimise shareholder dilution at the current share price by raising a relatively small amount of money from existing shareholders and myself in order to enable the Company to achieve key milestones for HyProMag,” the Company commented on the announcement.
• The team completed a cost cutting initiative recently to bring the cash burn down and is launching a strategic review of its upstream and midstream business units including FS stage Songwe Hill RE Project in Malawi and Pulawy RE Separation Project in Poland, respectively.

Conclusion: The team is focusing on launching commercial production at the UK HPMS facility in Tyseley starting off with 25-30tpa NdFeB and potential to expand to 100-350tpa. A second facility is planned in Germany (126-380tpa) while a JV with CoTec is exploring opportunities to launch 500tpa production in the US (FS expected in H2/24). With rare earth prices at depressed levels, recycling part of the business takes priority with the team launching a strategic review at Songwe Hill and Pulawy.

*SP Angel acts as nomad and broker to Mkango Resources

Oriole Resources* (ORR LN) 0.3p, Mkt cap £11m – Drilling to optimise and expand Bibemi Gold MRE

• Oriole announces today the initiation of their Phase 5 drilling programme at Bibemi, where they previously delivered the Bakassi Zone 1 MRE of 5.1mt at 2.3g/t Au for 375koz.
• Mobilisation of diamond rigs are currently underway, with the drilling programme expected to start in Q2 2024.
• The programme will include a combination of infill drilling and step out drilling, looking to increase the resource in advance of the receipt of a mining exploitation licence over the project.
• Oriole is set to target two areas with 2,500m of diamond drilling across 25 holes.
• These lie along strike of the Bakassi Zone 1 prospect, bearing similar quartz veining at surface and having delivered positive gold anomalisms in previous exploration programmes.
• The 25 holes will be shallow, at 160m from surface, targeting near surface ounces within one to two kilometres of the current MRE.
• The two areas lie north east and south west of the current MRE.
• The team is planning to drill 4,560m of infill and extensional drilling at the current MRE zone, having generated elongated targets lying parallel to the known shear zones.
• Additional geophysics completed by Oriole and has generated further drill targets running alongside the current Bakassi Zone 1 MRE.
• This associated quartz veining offers the potential for additional ounces to be added from potential mineralisation running parallel to the current defined MRE, providing expansion opportunity alongside the aforementioned NE and SW target zones. (See Figure 1)

Conclusion: Oriole’s financing agreement with BCM International has opened up the possibility to develop Bibemi towards a standalone operation with multiple, shallow open pits. The Phase 5 drill programme announced today is a crucial part of this strategy and we look forward to further updates with anticipation as the Group progresses towards an exploitation concession. Gold prices hold above $2,150 and Oriole represents a funded and derisked exploration opportunity.

*SP Angel acts as Broker to Oriole Resources

Orosur Mining* (OMI LN) 2.4p, Mkt Cap £5.4m – Aiming to reassume control of Anzá Gold Project by April

• Orosur today provides an update on its Anzá Project in Colombia, where Newmont and Agnico Eagle hold a 50/50 JV with Orosur.
• MMA, held 50/50 between Newmont and Agnico Eagle, holds a JV with Orosur and is the current operator of the Anzá  project.
• Orosur was informed that MMA was exploring alternatives for the Project.
• Orosur is seeking to repurchase MMA’s interest in the Anzá project, offering a 1.5% NSR and various cash payments up to $15m on the satisfaction of certain thresholds.
• Today Orosur announces it expects this agreement to regain 100% ownership of Anzá  to be completed as early as the end of April 2024.

*SP Angel acts as Nomad and Broker to Orosur Mining

Power Metal Resources* (POW LN) 0.8p, Mkt cap £17.6m – Update on Uranium spin-out IPO

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• Power Metal Resources provides an update on its intended Uranium Energy Exploration IPO.
• Management notes that the planned uranium spin-off IPO has attracted ‘significant interest from a range of investors,’ both ‘institutional, HNW and retain investors.’
• POW also notes the IPO has attracted a ‘potential cornerstone investor.’
• However varying deal structure preferences has encouraged Power Metals management to consider the optimal route going forward.
• POW will consider an alternative combination of assets, or potentially an enlarged asset set from its uranium prospects.

*SP Angel acts as Nomad and Broker for Power Metal Resources

Sociedad Química y Minera de Chile (SQM) – SQM and Codelco delay lithium exploration deal in the Salar de Atacama until end May

• The two companies plan to jv SQM Salar and Codelco’s Minera Tarar to form a single entity for the exploitation of lithium in the Salar de Atacama.
• Both parties are running due diligence on the assets and on contracts governing the role of SQM and Codelco in the jv going forward.
• SQM reckons the complexity of the negotiation with the state mining company, Codelco, have delayed the deal.
• SQM will transfer all of its concessions and other rights in the Salar de Maricunga area to Codelco with Codelco then allowing the new jv to exploit the Salar de Atacama from 2031 to 2060.

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.

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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%