Cocoa prices overtake copper as LME increases margins on key metals
MiFID II exempt information – see disclaimer below
Alba Mineral Resources (ALBA LN) – Chip sampling results from the Clogau St David’s mine in N Wales
Amaroq Minerals (AMRQ LN) – Progress towards initial gold production from Nalunaq later this year
Arc Minerals (ARC LN) – Arc buys £405k of stock from Swedish investment fund
Ariana Resources (AAU LN) – Mineral resources continue to grow at Kiziltepe and Tavsan
Beowulf Mining* (BEM LN) – Base metal targets identified at Parkijaur
KEFI Gold and Copper* (KEFI LN) – GM results and Chairman statement
Kodal Minerals* (KOD LN) – Kodal orders long lead items and starts earthworks on Bougouni lithium project
Power Metal Resources* (POW LN) – Binding agreement signed for exploration in Saudi Arabia
Savannah Resources* (SAV LN) – Overseas Direct Investment Award
Tungsten West (TUN LN) – Formal Environment Agency consultation starts
IGTV: Copper: https://www.ig.com/uk/news-and-trade-ideas/_copper-likely-to-stay-above–9-000–meyer-240315
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.
Cocoa prices at >$9,000/t overtake copper prices following a fourfold increase on a global supply crunch.
Copper ($8,836/t)– prices dip lower as LME increases margins on copper and aluminium alloy trading today while dropping margins on cobalt, Tin, Zinc and a range of steel products
- The LME is almost certainly dissuading speculation in copper with long positions now at a 2-year high and volumes last week at 3-year highs.
- With many of the world’s traders lining up to propel copper higher the LME is acting early to dampen excessive speculation.
- Visible LME and SHFE inventories appear relatively ample as traders look to take advantage of the expected shortage of physical metal.
- We wonder if China’s SRB may be injecting some metal into the market to dampen any price rally.
- More fundamentally, the availability of physical copper looks set to tighten:
- Supply: A number of copper smelters in China have suspended operations due to a lack of copper concentrate. Tc/Rcs for copper concentrates are at all time lows indicating a severe shortage of available material.
- Freeport-McMoRan just agreed to give up control of the giant Grassberg copper mine in Indonesia to the government which is likely to cause some disruption.
- Zambia will lose copper production on lower hydropower availability, Cobre Panama remains shut, Codelco (Chile) production is down and Peru is its usual unpredictable place
- Demand: China continues to ramp up production of Electric Vehicle and is stimulating the fitting out of many unfinished apartment blocks. As they say housing is for living in and not for speculation.
- The US economy continues to grow as do the BRICS economies led by strong growth in India and China.
A RMG / World Bank study focussed on Steel, Copper and Nickel sees much stronger demand for metals: https://www.rmgconsulting.org/news
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- RMG forecast total demand for copper will reach 54.377mt for copper by 2050 representing growth of just 2.7%pa
- Capex on larger copper mines in recent years
- Centinela (Antofagasta) $4.4bn – 170,000tpa = $25,882/tpa of copper eq. – recently announced
- QB2 (Teck) $9bn – 320,000tpa = $28,125/tpa of copper eq.
- Cobre Panama (FQM) $6.2bn – 350,000tpa = $17,714 of copper eq.
Conclusion: while some funds may be simply trading the momentum in the copper market we believe there are other specialist funds which have gone long based on more fundamental and robust analysis.
Building new copper mines is expensive and often takes much time.
Iron ore shrugs off pessimism as steel margins expected to climb
- Iron ore prices have continued to strengthen above recent <$100/t lows, with Dalian futures at $117/t.
- Improving steel margins are being hinted at following a series of production cuts by major Baowu.
- Construction site operating rates remain low according to Citic, with a run down in stockpiles reliant on a resumption of activity.
- However, the government continues to invest in infrastructure projects to stimulate the economy suffering from a residential downturn.
- Maintenance periods for steel mills reportedly continue, with CISA suggesting large mill steel production down 9% yoy for mid-March.
- Industrial profits are due tomorrow for China.
| Dow Jones Industrials | -0.41% | at | 39,314 | |
| Nikkei 225 | -0.04% | at | 40,398 | |
| HK Hang Seng | +0.86% | at | 16,616 | |
| Shanghai Composite | +0.17% | at | 3,031 |
Economics
US – Baltimore bridge collapses after collision with cargo ship
- Rescuers are looking for more around 20 people after a number of vehicles fell into the freezing Patapsco River.
- The bridge remains unsafe due to objects hanging from the structure.
- The bridge is seen as an essential link on the Baltimore Beltway.
- US infrastructure is ageing and sometimes unsafe and will give Biden more reason to ramp up infrastructure spending.
Germany – Consumer sentiment improved slightly in April but remained quite depressed in absolute terms, according to latest GfK data.
- Drivers remains the same including high borrowing costs, strong inflation and weak economic outlook.
- Bundesbank recently said 2024 is set to be another weak year with the government slashing its growth estimates from 1.3% to 0.2%.
- GfK Consumer Confidence: -27.4 v -28.8 (revised from -29.0) March and -28.0 est.
UK – Grocery prices climbed at the slowest pace since Russian invasion of Ukraine in February 2022 in a welcome news to UK monetary authorities.
- Grocery inflation eased to 4.5% in the four weeks to March 17, down from 5.3% the previous month, FT cites research company Kantar.
- The measure was running around 7$ at the beginning of the year.
Ghana – The country that is the second world’s largest cocoa producer is struggling to use available loan facilities due to a lack of beans to back a drawdown risking payments to cocoa farmers potentially further tightening the market.
- Ghana secured an $800m loan at the end of last year from a syndicate of eight banks and does not have enough beans to support the second and final $200m drawdown, according to Bloomberg.
- Without payments farmers are unable to afford seeds, chemicals and fertilizers risking the next harvesting season.
- Cocoa production is reported to have suffered recently from extreme weather and disease in both Ghana and Ivory Coast, the largest producer, more than doubling prices to record levels above $9,000/t this year.
Currencies
US$1.0841/eur vs 1.0817/eur previous. Yen 151.29/$ vs 151.25/$. SAr 18.906/$ vs 18.962/$. $1.265/gbp vs $1.261/gbp. 0.654/aud vs 0.653/aud. CNY 7.219/$ vs 7.206/$.
Dollar Index 104.20 vs 104.36 previous.
Precious metals:
Gold US$2,176/oz vs US$2,168/oz previous
Gold ETFs 82,180,663.9moz vs 82,341,208.5moz previous
Platinum US$903/oz vs US$903/oz previous
Palladium US$1,004/oz vs US$1,002/oz previous
Silver US$24.58/oz vs US$25/oz previous
Rhodium US$4,600/oz vs US$4,600/oz previous
Base metals:
Copper US$ 8,836/t vs US$8,904/t previous
Aluminium US$ 2,323/t vs US$2,308/t previous
Nickel US$ 16,855/t vs US$17,160/t previous
Zinc US$ 2,476/t vs US$2,479/t previous
Lead US$ 2,028/t vs US$2,038/t previous
Tin US$ 27,390/t vs US$27,650/t previous
Energy:
Oil US$86.7/bbl vs US$85.8/bbl previous
- Crude oil prices remain firm ahead of next week’s online OPEC+ meeting, whose members extended voluntary cuts into 2Q24 to “defend a price floor above $80/bbl” according to Russia’s deputy PM, Alexander Novak.
- Following the victory of opposition leader Bassirou Diomaye in Senegal’s presidential elections, E&Ps operating in-country are waiting to see if he will make good on his pre-election pledge to renegotiate oil and gas contracts.
Natural Gas €27.4/MWh vs €28.5/MWh previous
Uranium Futures $88.9/lb vs $89.3/lb previous
Bulk:
Iron Ore 62% Fe Spot (cfr Tianjin) US$109.0/t vs US$108.6/t
Chinese steel rebar 25mm US$536.6/t vs US$538.5/t
Thermal coal (1st year forward cif ARA) US$111.5/t vs US$109.8/t
Thermal coal swap Australia FOB US$126.0/t vs US$124.3/t
Other:
Cobalt LME 3m US$28,550/t vs US$28,550/t
NdPr Rare Earth Oxide (China) US$49,314/t vs US$49,403/t
Lithium carbonate 99% (China) US$14,614/t vs US$14,918/t
China Spodumene Li2O 6%min CIF US$1,210/t vs US$1,210/t
Ferro-Manganese European Mn78% min US$975/t vs US$985/t
China Tungsten APT 88.5% FOB US$310/mtu vs US$310/mtu
China Graphite Flake -194 FOB US$490/t vs US$500/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$329/t vs US$330/t
China Rutile Concentrate 95% TiO2 US$1,448/t vs US$1,450/t
Spot CO2 Emissions EUA Price US$63.6/t vs US$60.6/t
Brazil Potash CFR Granular Spot US$305.0/t vs US$305.0/t
Battery News
UK to get third battery Gigafactory
- According to media report over the weekend, the UK will see its third battery Gigafactory built in the West Midlands.
- The plant has been in development for several years and has the backing of the Advanced Propulsion Centre (APC) and local government.
- Up until now it had been lacking a lead high volume manufacturer despite detailed discussions with Asian manufacturers, but it now believed EVE Energy will invest in the project.
- EVE Energy is said to be planning a 20GWh capacity initially with a £1.2bn investment, rising to 60GWh over time.
- The plant will be the third after the AESC Envision 35GWh plant in Sunderland and the confirmed 40GWh Tata Motors factory in Somerset.
Northvolt begins construction on new Gigafactory in Germany
- The Swedish battery maker will invest €4.5bn to build a battery Gigafactory in Schleswig Holstein, Germany.
- The capacity of the factory has not been disclosed, but Northvolt hope to produce enough batteries for 1m EVs each year.
- Production is expected to being in 2026 and will generate 3000 local jobs.
CATL working with Tesla to develop fast-charging battery cells
- CATL is working with Tesla on battery technologies, in particular new electrochemical structures, to allow for faster charging, according to CATL Chairman, Robin Zheng. (Bloomberg)
- Bloomberg reported last month that Tesla plans to expand battery production in Nevada by opening a small factory using idle CATL equipment.
- It had been rumoured earlier this year that the two companies were working with each other on the M3P battery.
- The M3P battery was first mentioned in 2022 and was set to go into production in 2023.
- M3P batteries are based on a new material system with higher energy density than LFP batteries and a lower cost than current ternary batteries.
L&F sign $9.95bn cathode material supply deal with SK On
- The battery material supplier will supply SK On with battery cathode materials according to a regulatory filing.
- L&F will supply SK On with 300,000t of high-nickel cathode materials by 2030.
- This will be enough for 3m EVs over the period.
Company News
Alba Mineral Resources (ALBA LN) 0.09p, Mkt cap £6.2m – Chip sampling results from the Clogau St David’s mine in N Wales
- Alba Mineral Resources reports that composite chip samples taken from the No.4 Level Lower Llechfraith workings at its Clogau-St David’s Gold Mine in north Wales have yielded high gold grades in assay.
- Among the highlighted results of the sampling are:
- Composite sample 1 of 49.2kg, taken towards the western end of No 4 level, which assayed 89.15g/t gold; and
- Composite sample 2 of 34.4kg towards the eastern end of the level which assayed 111.63g/t gold; and
- Composite sample 3 slightly further east of sample 2, of 36.9kg which assayed 133.73g/t gold
- The company says that “these grades are from ore that does not contain visible gold and are interpreted as being part of the background gold population” and explains that “Historic periods of mining reputedly relied on the discovery of “bonanza” type occurrences grading in the 10s to 100s of ounces per tonne, bonanza grades which the Company will be seeking in the forthcoming bulk sampling of the previously unmined target zones below No.4 Level”.
- We point out that modern mining methods may require a less selective approach than the highly labour intensive and flexible extraction techniques employed in the past and it is unlikely that sustainable tonnages may not achieve these historic grades.
- Executive Chairman, George Frangeskides welcomed the results from sampling No 4 Level and said that “We always knew there was serious potential for finding high-grade gold at Clogau. But after all the challenges we have faced over the past few years in gaining access to our No.1 target within the mine, to now have that high-grade potential finally confirmed by actual results is extremely heartening”.
- Alba Mineral Resources says that “Further sampling on No.4 Level is planned in the short term to follow up and build on these results. In addition, bulk sampling is planned to be rolled out over the next few months below No.4 Level”.
Conclusion: Underground sampling of the historic mine workings at the Clogau St David’s mine has demonstrated the high grades achieved in past mining. Further sampling is planned and we look forward to further news though we caution that a modern resource estimate, geared to current mining methods, to struggle to replicate the exceptionally high grades mined in the past.
Amaroq Minerals (AMRQ LN) 81p, Mkt Cap £216m – Progress towards initial gold production from Nalunaq later this year
- Amaroq Minerals reports a net loss of $0.8m for 2023 (2022 – loss of $21.9m) and a closing cash balance of $21.0m.
- The result reflects a gain of $31.3m on loss of control of strategic mineral assets held in a subsidiary, Gardaq, which now sit in a 51% owned special purpose exploration joint venture with ACAM which has “invested $30.1 million (GBP 18 million) in exchange for a 49% shareholding in the SPV”.
- The company comments that it experienced “some operational and procurement delays towards the end of 2023 due to adverse weather conditions” on its development of the Nalunaq mine in southern Greenland but says that the “situation has now significantly improved and we are making good operational progress”.
- Among the development highlights presented in today’s announcement are increased capacity at the camp with the addition of a further 60 places as well as progress on the process plant design work, now 77% complete, and the conclusion of 80% of the “key contracts for the processing plant”.
- The company says that “Mine rehabilitation works were continued in Q4 2023” and that additional underground sampling “beyond the historically mined areas of Target Block, Nalunaq’s largest historic mining block, confirmed continuation of high-grade mineralisation into modelled extension area with grades of up to 48.3g/t Au over 1m”.
- Looking ahead, the company says that it expects to start construction work on the process plant building in April with “installation of the mechanical and electrical process plant components … scheduled for the second half of 2024”.
- In the mine “rehabilitation of the ramp from the 300 level portal to the Mountain Block is nearing completion and will be followed by the development of a ramp extending higher up into the Mountain Block. Rehabilitation of the mine will progress based on the location of future planned mining activities. The Company expects to mine first gold in 2024”.
- “First production guidance for 2025 will be provided towards the end of 2024”.
Conclusion: Amaroq Minerals is moving ahead at Nalunaq and we look forward to initial production later this year.
Arc Minerals (ARC LN) 1.79p, Mkt cap £22m – Arc buys £405k of stock from Swedish investment fund
- Arc Minerals reports the acquisition of 22.5m shares from the Sveriges Lärare fund in Sweden for £405,715 representing 1.8p/s.
- Management believe the buying back of this holding in a single block should be beneficial to shareholders though we note the transaction means ordinary investors denied the ability buy these shares in the market.
- The directors propose to cancel the shares.
- We note Arc Mineral raised £4.1m of cash at 1.8p/s plus a 1 for 1 warrant on 9th March representing a very significant discount when considering the implied value of the warrants which are exercisable at 3p/s.
- We suspect many investors will simply sell the underlying stock and hold onto the warrant.
- Share options: In March 2021 Arc’s board surrendered their employee share options to simplify the company’s share structure.
- Investors should note the cancellation of the options is to be compensated for with the payment of £3,474,179 to be paid in cash or shares, though management appear to have no plan to settle this payment in the short term.
Conclusion:. So Arc issued a shares at 1.8p/s along with a warrant so they could buy back shares at 1.8p/s. Ordinarily we would say well done but Arc issued a whopping 210 million warrants at 3p/s into the market for the privilege making this look like a horrendous trade to anyone who didn’t get to buy the warrants.
We will be watching what management does with its new £4.1m cash pile. £2m were allocated to a potential license acquisition process which may or may not happen and the now completed buyback.
We wonder where the rest of the funds will end up?
Ariana Resources (AAU LN) 2.25p, Mkt Cap £24.7m – Mineral resources continue to grow at Kiziltepe and Tavsan
- Ariana Resources has provided updated mineral resources and reserves estimates for its 23.5% owned Kiziltepe and Tavsan deposits in western Turkey.
- At Kiziltepe, March 2024 mineral resources total 3.28m tonnes at an average grade of 1.63g/t gold and 31.69g/t silver hosting approximately 170koz of gold and 3.3moz of silver.
- Approximately 2.06mt (63%) of the resource at Kiziltepe is classified as ‘Measured/Indicated’ in accordance with the JORC (2021) standard.
- The resources estimate included ‘Proven and Probable’ reserves of ~820kt at an average grade of 1.80g/t gold and 37.98g/t silver containing 47,700oz of gold and ~1moz of silver.
- The company explains that the new Kiziltepe resource estimate represents a “12% increase in tonnage for the Kiziltepe Sector resources despite continued depletion by mining”.
- Ariana Resources says that resources at Tavsan have shown a “15% increase in tonnage” and now total 7.65mt at an average grade of 1.26g/t gold and 4.49g/t silver containing 311koz of gold and 1.1moz of silver.
- Approximately 83% of the contained gold and 81% of the contained silver at Tavsan is withing the JORC ‘Measured and Indicated’ classification.
- Mineral reserves at Tavsan total ~4.5mt at an average grade of 1.40g/t gold and 4.63g/t silver containing ~201koz of gold and 667koz of silver.
- Commenting on the new estimates, Managing Director, Dr. Kerim Sener, said that with resource to reserve conversion rates currently exceeding 50% “we expect up to ten years of further production across the combined operations, continuing to produce at a nominal rate of 25,000 ounces per annum”.
- Confirming that work is continuing to “optimise the mining and processing rate and in the design of pits and mining schedules … [Dr. Sener also disclosed that] … with the marked increase in gold price over the past year in particular, we will utilise pit optimisations completed at US$2,000 per ounce, as opposed to the US$1,800 per ounce … previously used for pit design since 2022”.
- He also said that “Further exploration work is being planned during 2024 to identify potential areas of further resource upside across both sectors and the vicinity. With the wealth of drilling and geophysical data now available following over two years of continuous exploration and resource drilling, we are in an advantageous position to take stock and better understand where further opportunities may lie”.
Conclusion: Ariana Resources continues to develop its mineral resource base in western Turkey with production rates of 25kozpa now underpinned for the next ten years.
Beowulf Mining* (BEM LN) 0.75p, Mkt Cap £8.7m – Base metal targets identified at Parkijaur
- Beowulf provides an exploration update from its recent exploration programme at the Parkijaur nr 7 licence, which lies SW of Kallak.
- Beowulf’s subsidiary Jokkmokk completed a mapping and boulder sampling programme in 2023.
- Alongside field work, they also compiled and reprocessed historic drilling data, geophysical, and geochemical data.
- This work has yielded 16 high priority target areas, with one rock chip sample recording 14.6% Cu, with an anomalous zone over 2km NW to SW.
- Previous drilling at site had yielded encouraging results of 110m at 0.62% Cu, 0.54g/t Au and 0.16% Zn.
- Although drilling was reportedly sub-parallel to mineralisation, Beowulf highlights the width of mineralisation as evidence of the area’s potential.
- Drilling in the 1970s also recorded irregular copper mineralisation, with highlights of 1.5% Cu over 6.2m.
- The Company had previously held a JV with Phelps Dodge at the licence package, with the major taken over by Freeport-McMoran in 2007.
- Beowulf believes there remains ample opportunity to extend mineralisation at depth through down-dip drilling.
- Going forward, Beowulf will enact a low-cost field programme through 2024 to further define drill targets as it continues to progress the Kallak Iron Ore project and the GAMP asset in Finland.
*SP Angel acts as Nomad and Broker to Beowulf Mining
KEFI Gold and Copper* (KEFI LN) 0.57p, Mkt Cap £29m – GM results and Chairman statement
- The Company released Chairman statement ahead of a general meeting this morning highlighting progress at its portfolio of gold and base metals assets in Ethiopia and Saudi Arabia.
- In Ethiopia, the team is working on finalising all necessary documentation for a final sign off by the funding syndicate by mid-2024.
- Once funding is secured, the Company is planning to drawdown on equity part of the package to commence development works and resettlement programme followed by debt drawdowns months later.
- In Saudi Arabia, the team is progressing with exploration and FS related work funded by its JV partners at Jibal Qutman, Hawiah and recent new discoveries.
- Shareholders approved all resolutions at the GM including issuance of remuneration shares following a £5m equity raise earlier this month (83m) and authorisation to issue more shares in the future.
*SP Angel acts as Nomad and Broker to KEFI Gold and Copper
Kodal Minerals* (KOD LN) 0.48p, Mkt Cap £80m – Kodal orders long lead items and starts earthworks on Bougouni lithium project
BUY – Target 0.97p
(Hainan Mining holds a 51% stake in KMUK which holds the Bougouni Lithium Project in Mali with Kodal holding 49%. The Mali government has the right to a free carry on 10% of the project and an option to acquire a 10% stake)
- Kodal Minerals report the completion of their review on the plan to spend US$65m on Stage 1 construction of the Bougouni Lithium Project in Southern Mali which uses DMS (“DMS”) approach to start.
- Long lead items including the DMS units and dual stream crushing modules have been ordered. These items are now under construction.
- The mining contract has been finalised with EGTF Mining SARL and Auxin Mining Services with costs consistent to that estimated in the feasibility study.
- “The Mali Minister for Environment visited the Bougouni Lithium Project and endorsed the Company’s development programme and development of the DMS processing site.”
- The Minister has since followed up on his visit with a formal letter, confirming his approval of the proposed plan for the Phase 1 DMS project.
- “All weather access roads to the Ngoualana open pit and DMS processing site are complete.”
- “Mining contractor to mobilise to site in March to commence the earthwork and civil engineering works.”
- Negotiations with local community groups on land compensation are reported to be going well.
- The project remains on track to start production in Q4 ‘2024
- “Bougouni Stage 1 (DMS) is fully financed with all permitting in place, including environmental and social permits, with Kodal’s Community Development Plan also recently approved by Mali’s Environment Ministry.“
- Kodal is unusually well funded with the recent raising of US$117.75m for the Bougouni project + US$17.75m in return for Kodal share at 0.5p.
Conclusion: Kodal has made unexpectedly rapid progress towards the construction of the new Bougouni Lithium mine in Southern Mali.
Ministerial approval now endorses the change in the processing plant to run with DMS in Stage 1 and then move to the floatation plant as well as moving to the construction of the DMS plant at a different location next to Ngoualana. The renewal of the environmental permit means the project is now fully permitted for construction.
The background transfer of the mining licence from the current subsidiary of KMUK to a new mining company in which the Govt of Mali will have its 10-20% interest still needs to be done and is held up along with all other licence transfers, awards and renewal requests as the Ministry of Mines works on enacting the new mining code.
We do not see Kodal is not directly affected by this process as its licence was awarded under the old code though the transfer process has been held up along with everything else.
*SP Angel acts as financial advisor and broker to Kodal Minerals.
Power Metal Resources* (POW LN) 0.85p, Mkt cap £18.7m – Binding agreement signed for exploration in Saudi Arabia
- Power Metals, which is currently building its presence in Saudi Arabia, reports it has signed its first binding earn-in agreement for exploration in Saudi Arabia.
- The Company has formed a binding agreement with RIWAQ Al-Mawarid for Mining, a subsidiary of EV Metals Group.
- EV Metals Group is engaged in developing Saudi Arabia’s raw materials supply chain for the energy transition.
- RIWAQ holds 15 tenements across over 1487m2, 11 of which have exploration licences granted.
- 13 of the tenements are considered prospective for lithium pegmatites, one for nickel sulphides, and one for copper/molybdenum porophyry.
- POW will gain 20% ownership in the prospects for $350k of funding over 12 months.
- An additional 10% ownership will be gained through the funding of $150k within six months of the initial 20% interest.
- POW will continue their pre-IPO financing of the Saudi-focused Power Arabia subsidiary.
*SP Angel acts as Nomad and Broker for Power Metal Resources
Savannah Resources* (SAV LN) 3.4p, Mkt Cap £62 – Overseas Direct Investment Award
BUY – 21.1p
- The Company received the Overseas Direct Investment Award from the UK-Portugal Business Alliance.
- The ceremony was carried in Lisbon last week and hosted by UK Ambassador to Portugal and HM Trade Commissioner for Europe.
- The award recognises and rewards businesses fostering investment relations between two countries.
*SP Angel acts as Nomad and Broker to Savannah Resources
Tungsten West (TUN LN) – 1.3p, Mkt cap £2.4m – Formal Environment Agency consultation starts
- Yesterday, Tungsten West announced that the Environment Agency has opened a six-week long public consultation on the permit for the Mineral Processing Facility (MPF) at its Hemerdon tungsten/tin project in Devon.
- Tungsten West explains that the consultation is “the final step before the Environment Agency can issue the permit”.
- Under the previous operator, issues relating low-frequency sound from the Hemerdon plant were experienced and Tungsten West has previously disclosed that it has worked collaboratively with the Agency to address these issues.
- Commenting yesterday, CEO, Neil Gawthorpe said that the “receipt and acceptance of the draft permit for the MPF has been a positive milestone for the Company. It represents a significant step in securing the further funding required for the Project, and delivering our key objective of recommencing operations at the Hemerdon mine”.
- We regard the Hemerdon deposit as one of the western-world’s larger sources of tungsten and if the permit consultation is positive we expect a successful resumption of production at Hemerdon to be welcomed by western-world consumers of the commodity in a market dominated by China.
Conclusion: We look forward to the outcome of the EA’s public consultation and a possible resumption of production at Hemerdon.
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
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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, Rutile | 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%
