SP Angel Morning View -Today’s Market View, 1st May 2024

China further stimulates internal adoption of EVs as part of strategy develop global dominance

MiFID II exempt information – see disclaimer below

Ariana Resources (AAU LN) – 2024 production guidance includes contribution from Tavsan heap leach

AVZ Minerals (AVZ AU) – SUSPENDED – Update as delisting looms

Bluejay Mining* (JAY LN) – Acquisition of new copper prospect close to Dundas ilmenite project in Greenland

Cornish Metals* (CUSN LN) – New PEA for South Crofty confirms potential to resume tin production over a 14 year mine life

Golden Metal Resources (GMET LN) – Geophysical magnetic survey identifies anomalous magnetic ‘high’ at Pilot Mountain

Oriole Resources* (ORR LN) – Appointment of Chief Executive Officer following management reshuffle

Piedmont Lithium (PLL US) – NAL production results

Sovereign Metals* (SVML LN) – Sovereign expert team prepares new spiral for pilot graphite and rutile separation in Malawi facility

China EV sales – China further stimulates internal adoption of EVs as part of strategy develop global dominance

• China has introduced a new scrappage scheme to replace ageing diesel and petrol vehicles with EVs.
• Under the new scheme drivers who want to replace their old car with a modern electric or a plug-in hybrid will receive financial support.(electrive)
• Buyers will CNY10,000 (~US$1,380). Grants are also available of CNY7,000 (~US$966) when trading in for a new ICE vehicle with a maximum engine capacity of 2ltrs
• The scheme which runs till 10 January 2025 could generate additional demand for 400,000-800,000 BEVs and plug-in hybrids and 600,000-1.2m ICE vehicles according to analysts from Topsperity Securities.
• Recent government statements are clear in that China sees EVs as leading the way in “intelligent connected new energy vehicles” where China has strong momentum in production and new development.
• China’s focus on the full supply chain is part of its “complete industrial system” with “continuous investment in innovation” giving the nation a “leading advantage” according to Premier LI Qiang at the recent Beijing Automotive Exhibition.

• According to the International Energy Agency’s (IEA) Global Electric Vehicle Outlook 2024 report, China is projected to continue to dominate the global EV market.
• China accounted for 60% of all EV sales worldwide in 2023, driven by its strategy of producing affordable small EVs.
• The IEA forecasts that one in three cars on China’s roads will be electric by 2030, with annual EV sales reaching a staggering 60m units.
• The report highlights China’s focus on producing small, affordable EVs priced around $10,000-$15,000 as a key factor driving mass adoption.
• Major Chinese EV makers like BYD, Chery, and Wuling are leading the charge with popular budget-friendly models appealing to cost-conscious consumers.
• The IEA predicts that by 2030, China will account for over half of the projected 246m EVs on roads globally.
• Despite reports that China’s EV market was heavily oversaturated, with unsold, abandoned vehicles sitting in ‘EV Graveyards’, it is continuing to pump government funds into the sector.
• China spent roughly $173bn in subsidies for NEVs between 2009 and 2022. (WSJ)
• Zhido, a small automaker that went bust following subsidy cuts in 2019, has re-entered the market with fresh capital from state-backed funds and investors.

Copper slides alongside base metals whilst ICSG slashes surplus expectations

• Copper prices fell to $9,921/t as base metals fell across the board on profit taking and a stronger dollar.
• The rally had been predominantly driven by speculators, with demand in China remaining soft.
• The rally was triggered by concerns over a concentrate shortage, with TCRC fees slumping and funds betting on smelter capacity cuts.
• However, the International Copper Study Group has slashed its supply surplus expectations for 2024, but expect the market to remain in oversupply this year.
• Mine supply is expected to grow 0.5% this year following the shutdown of Cobre Panama.
• The Group also warns on copper demand, downgrading expectations to 2% of refined metal usage from 2.7%.
• China demand growth expected to slow to 1.6% in 2025 from 2%, with ex-China growth expected to accelerate, driven by India.
• Bullish bets on LME contracts have risen to 2018 highs, with Reuters reporting 2.5mt worth of contracts sold long currently.
• The Yangshan refined copper premium continues to hover around $0/t, pointing to limited appetite from Chinese end users.

Gold prices pull back to $2,288/oz as traders pare bullish positions before Powell speaks

• Gold prices fell below $2,300/oz yesterday, at $2,288/oz today.
• The metal has suffered losses following a sharp rally to $2,400/oz which took market players by surprise.
• Momentum funds have likely eased buying, with Chinese speculators also pulling back in profit taking.
• Focus turns to the FOMC meeting today, where Powell is expected to reiterate a hawkish message following his erroneous pivot in December.
• 10-year yields have spiked back to 4.7% since January, following a reacceleration in inflationary pressures, giving a headache to the Fed.
• Swaps markets are currently pricing in one cut for 2024, down from seven in January.

Lithium prices flatten higher following lepidolite inspection period in China

• Lithium prices have flatlined around $15,000/t LCE through April.
• The market recovered significantly from the New Year.
• SC6 prices have rebounded 12% from an average of $920/t in March to $1,026/t in April on Bloomberg’s global weighted average survey. (Bloomberg)
• Spodumene prices remain 83% below the Jan-April period last year.
• The rally has cooled following a resumption of lepidolite production in China following a post Lunar New Year period of inspections.
• The bottom seems to be in for this cycle, although sustained supply additions should cap pricing spikes seen in the 2022/2023 period, where unsustainable levels were hit.
• End users reportedly have sufficient inventories, with price upside capped by their ability to drawdown supply over the past quarter.
• A rise in auction activity from spodumene producers such as Albemarle, Pilbara and Sigma are expected to boost short term pricing through increased transparency.
• Albemarle is expected to report earnings this evening, with analysts paying close attention to the major producer’s comments on current market dynamics.

Indonesia – Chinese mining companies polluting Indonesian forests, rivers and marine environment

• A BBC report highlights the destruction of ancient forests, the sedimentation of rivers and the polluting of the ocean from a nickel laterite mine in Indonesia.
• Satellite pictures show the wonton destruction of a vast area around a ferronickel plant alongside a related coal-fired power station.
• Additional Indonesian soldiers were deployed to the island to protect the mine during the BBC visit according to local people.
• “The water from the river is undrinkable now, it’s so contaminated, and the sea, that is usually clear blue, turns red when it rains,” according to Nur Hayati, a teacher from Kawasi village.

IG TV: Gold and Copper. 10/04/2024:https://youtu.be/KuGSbDqWglk?si=-8iikkOHxbbLSnPZ

Sharepickers TV:  It’s all about copper. 26/04/2024 podcast:  https://audioboom.com/posts/8496588-john-meyer-it-s-all-about-copper

         Video:https://www.youtube.com/watch?v=MV9_8K494rY

*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts. We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate. SP Angel acts as Broker/Nomad or both for Anglo Asian Mining, Kodal Minerals, Power Metals Resources.

Economics

US – Fed rate day with estimates for no change leaving rates at the current range of 5.25-5.50%.

• Market estimates are for just one rate cut before year marking a significant revision to just around three cuts expected only a month ago.
• 2 year and 10 year bond yields are around 5.0% and 4.7%, respectively, after having climbed ~40-50bp though April to the highest level since late 2023.

UK – Property prices recorded another monthly drop in April missing market forecasts, Nationwide reports.

• Prices fell 0.4% in April following a 0.2% drop in March and missing an estimate for a 0.2% increase.
• The drop translated into a slower annual growth that ticked down to 0.6%yoy rom 1.6% recorded in the previous month.
• “The slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year,” Nationwide commented on numbers.
• Nationwide estimates house prices are around 4% below their all time highs of mid-2022 now.

US/Russia – The US Senate approved legislation banning Russian uranium imports yesterday.

• The House passed the bill in December suggesting the law is expected to come in force in 90 days once President Biden signs it.
• Although, the bill does contain waivers in case there were supply concerns for domestic reactors.
• Russia is the largest US foreign supplier of enriched uranium accounting for a quarter of total demand in 2022, Bloomberg quotes US Energy Department.
• The ban is likely to take some time to affect US nuclear reactors that are typically refuelled every 18 to 24 months, Bloomberg writes.
• The ban also unlocks $2.7bn in government funding directed to support domestic uranium enrichment industry.

Currencies

US$1.0659/eur vs 1.0707/eur previous. Yen 157.95/$ vs 156.81/$. SAr 18.738/$ vs18.673/$. $1.248/gbp vs $1.254/gbp. 0.648/aud vs 0.653/aud. CNY 7.241/$ vs 7.244/$. Dollar Index 105.88 vs 105.61 previous.

Precious metals:         

Gold US$2,287/oz vs US$2,318/oz previous

Gold ETFs 81.0moz vs 81.0moz previous

Platinum US$937/oz vs US$943/oz previous

Palladium US$940/oz vs US$961/oz previous

Silver US$26.39/oz vs US$27/oz previous

Rhodium US$4,725/oz vs US$4,725/oz previous

Base metals:   

Copper US$ 9,919/t vs US$10,112/t previous

Aluminium US$ 2,582/t vs US$2,571/t previous

Nickel US$ 19,160/t vs US$19,150/t previous

Zinc US$ 2,886/t vs US$2,928/t previous

Lead US$ 2,212/t vs US$2,225/t previous

Tin US$ 31,165/t vs US$32,440/t previous

Energy:           

Oil US$85.5/bbl vs US$88.5/bbl previous

Natural Gas €29.2/MWh vs €28.3/MWh previous

Uranium Futures $90.0/lb vs $87.7/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$116.8/t vs US$118.5/t

Chinese steel rebar 25mm US$523.4/t vs US$523.2/t

Thermal coal (1st year forward cif ARA) US$110.0/t vs US$108.8/t

Thermal coal swap Australia FOB US$143.0/t vs US$138.8/t

Hard Coking Coal Australia FOB US$326.0/t vs US$326.0/t

Other:  

Cobalt LME 3m US$27,830/t vs US$27,830/t

NdPr Rare Earth Oxide (China) US$55,724/t vs US$55,700/t

Lithium carbonate 99% (China) US$15,122/t vs US$15,116/t

China Spodumene Li2O 6%min CIF US$1,240/t vs US$1,240/t

Ferro-Manganese European Mn78% min US$972/t vs US$972/t

China Tungsten APT 88.5% FOB US$333/mtu vs US$333/mtu

China Graphite Flake -194 FOB US$480/t vs US$480/t

Europe Vanadium Pentoxide 98% 5.0/lb vs US$5.0/lb

Europe Ferro-Vanadium 80% 26.25/kg vs US$26.25/kg

China Ilmenite Concentrate TiO2 US$327/t vs US$326/t

China Rutile Concentrate 95% TiO2 US$1,416/t vs US$1,415/t

Spot CO2 Emissions EUA Price US$64.4/t vs US$64.4/t

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

Battery News

Elon Musk disbands Tesla’s EV charging team

• In a surprise decision, Elon Musk has laid off the employees who ran Tesla’s EV charging business
• The decision has blindsided automakers, like Ford and GM, who had struck deals with Tesla to use the Supercharging network
• Tesla’s opened its network to rival EV manufacturers, a decision that was hailed by Joe Biden, and opened the door for Tesla to get federal subsidies to expand the reach of its North American Charging Standard (NACS) system.
• Tesla have yet to officially comment on the decision, but Musk took to X to say that it still plans to expand the Supercharger network, “just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations.”

Philippines – fleets seen as crucial to growing EV presence quickly

• The Philippine government’s new EV rollout strategy will emphasise upgrading existing vehicle fleets to electric as a quick way to increase EV presence in the country.
• The government aims to address concerns related to the hidden costs of EV ownership, particularly battery replacement costs.
• A navigation app for Philippine EV users is also being developed to enhance the consumer experience.
• The government is also exploring establishing a network of charging stations. As of February, there were 181 charging stations in Metro Manila and 110 in Calabarzon.
• As of 2023, EVs accounted for only 7,000 of the 14.3m fleet of registered vehicles in the Philippines.
• The government has received budgetary approval to replace 10% of its vehicle fleet with EVs, with support from the Department of Budget and Management.
• There is a long-term goal to make the Philippines a hub for the manufacture of EVs and components, aiming to raise the share of EVs in the vehicle fleet to 50% by 2040.

Kenya leads in uptake of electric vehicles as global demand goes up

• According to the Global Electric Vehicle Outlook 2024 report, Kenya is among the countries whose uptake of EVs has improved significantly.
• The wide availability of competitively priced electric buses has supported this uptake in markets like Latin America and Africa.
• BasiGo, Africa’s largest electric bus company based in Kenya, has an order book of 350 buses, representing almost 2% of electric bus sales outside China last year.
• BasiGo aims to sell a further 1,000 electric buses in Kenya and 200 in Rwanda in the coming years.
• Kenya is keen to adopt EVs as part of its plan to address greenhouse gas emissions and implement bus rapid transit systems, especially in Nairobi.
• Kenya’s updated Nationally Determined Contribution commits to reducing greenhouse gas emissions by 32% by 2030, with the transport sector accounting for about 12% of total emissions.

Safer EV batteries developed with AI Technology

• Sepion Technologies has introduced a non-flammable liquid electrolyte designed to enhance the safety of EV batteries.
• The company used an AI-driven materials discovery platform to develop this electrolyte that significantly reduces the risk of fires.
• Sepion’s electrolyte demonstrated superior safety features like a high flash point and self-extinguishing time far exceeding standard electrolytes.
• The AI technology allows Sepion to evaluate millions of formulations quickly, improving research efficiency.
• The non-flammable electrolyte not only improves safety but also supports 3C fast charging and is compatible with lithium-metal anodes.
• This compatibility with lithium-metal anodes could potentially increase the range of EVs by up to 40% with rapid charging capabilities.

Company News

Ariana Resources (AAU LN) 2.65p, Mkt Cap £29.8m – 2024 production guidance includes contribution from Tavsan heap leach

• Ariana Resources has released 2024 production guidance for its 23.5% owned Zenit Mining Operations in Turkey.
• The company says that it expects gold production for the year in the region of around 20,000oz from the processing of ~300,000t of ore at an average grade of approximately 2.4g/t and a recovery rate of ~90%.
• Mining will be mainly concentrated on the “Arzu North, Banu and Derya pits at Kiziltepe” and at the Tavsan Main pit, located around 130km from Kiziltepe in western Turkey.
• Tavsan, which is currently under construction, “is being developed as a heap-leach operation … as Zenit’s second gold mining operation in Turkey”.
• Managing Director, Dr. Kerim Sener, explained that “Over the past few months, Zenit has been mining high-grade ore from the Tavsan Mine, intending to process this ore through the Kiziltepe processing plant. We are now pleased to report that trial gold production has been successful and consequently we are now in the position to state our guidance from the Zenit Mining Operations for 2024”.
• He clarified that “production results are to be reported on a consolidated basis going forward, with production from both Kiziltepe and Tavsan represented”.
• 2023 gold production from Kiziltepe was 17,683oz of gold.

Conclusion: The addition of a second production operation at Tavsan in addition to the exiting Kiziltepe mine help Ariana Resources to issue 2024 guidance of ~20,000oz of gold production.

AVZ Minerals (AVZ AU) – SUSPENDED – Update as delisting looms

• AVZ, which is currently in dispute with the DRC over the 840mt Manono lithium project.
• AVZ will have been suspended from quotation for two years as of the 10^th of May, upon which it will be delisted under ASX policy.
• Management notes that the DRC Government has failed to comply interim orders made by the International Center for Settlement of Investment Disputes Tribunal on 16^th January 2024.
• Management believes that retaining a listing gives rise to complications as it looks to resolve the disputes.
• AVZ is looking to secure a general working capital funding facility of US$20m from Locke Capital Limited, with both parties moving towards a formal agreement.
• Manono holds an MRE of 842mt at 1.61% Li20, with AVZ holding a 75% interest in the asset through a subsidiary.
• Cash at the end of the period was A$4.2m.

Bluejay Mining* (JAY LN) 0.30p, Mkt cap £4.46m – Acquisition of new copper prospect close to Dundas ilmenite project in Greenland

(Bluejay Mining holds 100% of the Hammaslahti and Enonkoski projects and all its Greenland prospects)

• Bluejay Mining reports it has applied to expand its resource at Dundas in Greenland to include a newly identified high-grade sedimentary hosted copper prospect.
• The additional license area, when granted, should increase the licence area to 2,833sq km from 86sq km
• Bluejay will utilise exploration credits from the last seven years of Dundas work to cover for the first three years of commitments  effectively giving Bluejay a zero-cost three-year option on the copper price.
• The identification of the prospect is a direct result of an extensive data review and analysis which started five years ago and shows both historic and newly discovered copper showings:
  • The Cominco Gossan, Wolstenholme Fjord – 1% Cu over 112ft width (34m) from outcropping composite rock chip samples within sedimentary units of the Dundas Formation
  • Hill 620 Showing, Olrik Fjord – sampling up to 0.83% Cu within 100 m2 area
  • Existing copper showings within the dolerite dykes within the original Dundas licence area
• “The Thule Basin represents an area of significant, underexplored mineral potential. It hosts the first-order controls required for sedimentary copper deposits and mineralisation is observed within several geological units across the basin. Encouraging ore-grade samples of mineralisation locally exceeding 10% copper have been identified”
• Bluejay’s camp on the Dundas project at (Moriusaq) will serve as a basecamp for work on the expanded licence area and is close BHP’s Camelot Project.
• Management plan to run a helicopter-supported geological reconnaissance program to support its work on the license through the 2024 field season.
• The Acquisition comes as part of the Company’s new growth strategy to secure high quality copper and industrial gas projects whilst continuing to progress Disko to drilling in 2025
• Conclusion:  Bluejay are stepping up their activity and progress in Greenland in securing a new copper prospect at minimal cost.  The innovative acquisition is part of the company’s new strategy to secure new “high quality copper and industrial gas projects whilst continuing to progress Disko to drilling in 2025”.

*SP Angel acts as nomad and broker to Bluejay Mining. The analyst has visited Dundas in Greenland and the Hammaslahti and Enonkoski projects in Finland.

Cornish Metals* (CUSN LN) 11.25p, Mkt Cap £55m – New PEA for South Crofty confirms potential to resume tin production over a 14 year mine life

Valuation under review

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• Cornish Metals has released highlights of its Preliminary Economic Assessment (PEA) for the historic South Crofty tin mine in Cornwall where tin was produced over an extended period from the late 16th century prior to closure of the mine in 1998.
• Based on a tin price of US$31,000/t, the new PEA describes pre-production capital expenditure of US$177m generating an after-tax NPV_8% of US$201m and IRR of 29.8% from the production of up to 5,000 tonnes per year and total production of 49,310t of tin, in concentrate, from the processing of almost 3mt of pre-concentrated ore averaging 1.83% tin over a 14-years mine life.
• The major components of the pre-production capital costs, which includes a US$25.7m contingency, are US$40.5m on capitalised mining costs and US$59.7m for the process plant with pre-production payback within 3 years.
• An additional US$54m of post-production capital is required to sustain production and deliver life-of-mine cash costs of US$12,705/t and all-in-sustaining costs of US$16,661/t of tin production, net, we assume, of the by-product copper and zinc production of 3,444t and 3,255t respectively.
• Operating costs of ~US$103/t include mining costs of ~US$65/t and processing costs of ~US$25/t.
• Although the mining rate rises from 350ktpa to 500ktpa compared to the projections made in the 2017 PEA (and the mine life increases from 8 years to 14 years), the introduction of pre-concentration of the ore using X-ray and dense media (DMS) sorting sees processing rates of 250ktpa compared with the 350ktpa previously envisaged.
• In our opinion, the larger scale and longer operating life described in today’s announcement is testimony to the success of the continuing exploration programme which has generated the substantial resource increases underpinning today’s plan.
• Sensitivity analysis highlighted in today’s announcement shows that a 10% higher tin price of US$34,100/t (currently tin is priced at ~US$32,500/t), increases the after-tax NPV8% by more than 30% to US$263m.
• SP Angel’s long-term commodity prices align relatively closely with this 10% higher sensitivity case presented by Cornish Metals.
• The study identifies possible opportunities to expand tin production and extend the mine’s life beyond the initial 14 years through additional exploration in and close to the mine.
• Commenting on the PEA as an “important milestone for Cornish Metals”, interim CEO, Ken Armstrong, said that the economics shown by the PEA represent “a strong foundation for further evaluation of the Project, enabling the Company to move forward with additional preparation work and progress towards a construction decision, with planned first tin production in 2027”.
• He also explained that unlike many PEAs which “are completed prior to entering the mine permitting process. South Crofty has the advantage of having already cleared these hurdles and benefits from an existing mine permit … [valid until 2071] … and process plant construction permissions as well as significant existing mining, transportation and renewable energy infrastructure”.
• Mr. Armstrong also highlights South Crofty’s social and environmental credentials including the provision of its potential “to directly employ up to 320 people with permanent high-skilled and well-paid jobs and create up to 1,000 indirect jobs” as well as the low impact of an “underground operation with paste backfilling of process tailings into existing, historic mine workings”.
• The mine will use only “renewable electricity supply and … [is] … exploring options for renewable power generation”.
• During 2024, Cornish Metals plans to continue dewatering the flooded areas of the mine and continue the refurbishment of the New Cook’s Kitchen Shaft alongside technical work “to advance the project towards a feasibility study, including detailed engineering of the processing plant”.

Conclusion: The PEA envisages a larger scale, longer-lived operation at a refurbished South Crofty mine than earlier plans and envisages the likely resumption of tin production in 2027.  Current exploration in and close to the mine may offer opportunities for larger scale operations over an extended mine life. We await the publication of the detailed PEA with interest.

*SP Angel acts as Nomad and Broker. An SP Angel analyst formerly worked in the South Crofty tin mine in the 1980s and holds shares in Cornish Metals

Golden Metal Resources (GMET LN) 15.25p, Mkt Cap £14.2m – Geophysical magnetic survey identifies anomalous magnetic ‘high’ at Pilot Mountain

• Golden Metal Resources reports that a recent ground magnetic geophysical survey at its Pilot Mountain project in the Walker Lane mineral belt of Nevada has identified two anomalies within the ‘Porphyry South’ area.
• The company says that the magnetic anomalies coincide with “chargeability/resistivity data … [which] … suggests the existence of a large buried magnetic body at depth” which are said to “provide further support for the interpretation that the significant tungsten (W) – copper (Cu) – silver (Ag) – zinc (Zn) skarn-type mineralisation found at surface at Pilot Mountain and within Desert Scheelite is related to a buried causative porphyry system”.
• The larger of the two magnetic anomalies “measures approximately 500m x 750m … [and is … open to east”. A map presented in today’s announcement shows the second of the two anomalies covering approximately a quarter of the area and located around 100m to the west.
• CEO, Oliver Friesen, said that the “new magnetic geophysics results are highly encouraging, bolstering the findings of our previous IP survey over the Project’s Porphyry South area. The juxtaposition of the magnetic and IP survey anomalies strongly support the need to drill test this promising porphyry style target”.
• He added that “We very much look forward to finally drill testing this exciting target … [which he said] … is just one of many others on our 100% owned flagship asset”.
• “One drillhole into the ‘Porphyry South’ target was permitted based on the previous IP survey results, the latest survey results now show that the permitted drill site also provides an optimal location to test the eastern magnetic anomaly, the largest of the two new magnetic anomalies”.

Conclusion: Early stage geophysical data points to a buried porphyry target at Pilot Mountain.  We look forward to the results of a forthcoming drillhole with interest.

Oriole Resources* (ORR LN) 0.28p, Mkt cap £11m – Appointment of Chief Executive Officer following management reshuffle

• Oriole provides an update on its board following a management change.
• The Company announces that Tim Livesey has stepped down as CEO in order to focus on his other business interests.
• Mr Livesey will be replaced by Martin Rosser, with Tim supporting the transition through May.
• Martin is an experienced executive in the natural resources sector, having worked as a corporate financier and mining analyst.
• He led Alexander Mining as CEO for 13 years, taking the asset through to a completed feasibility study for their open pit copper mine in Argentina.
• Martin also sat on the board of Afriore Limited.
• He holds a BSc in Mining Engineering from Camborne School of Mines and is a Fellow of the Institute of Materials, Minerals and Mining, alongside being a Chartered Engineer.
• Oriole’s Chair, Eileen Carr, expresses her sincere thanks to Tim for his instrumental role in Oriole’s development, whilst welcoming Martin to the Company at an exciting stage in its progression.

*SP Angel acts as Broker to Oriole Resources

Piedmont Lithium (PLL US) $12, Mkt cap $242m – NAL production results

• Piedmont shipped 15.5kt spodumene at 5.5% Li20.
• NAL mined 351.1kt over the period, producing 40.4kt spodumene concentrate at a plant uitlisation rate of 73%.
• Recoveries reported at 67%, with NAL shipping 58.1kt, up 142% from Q4.
• Lithium recoveries reached highs of 69% in March.
• Increased production rates are expected following the completion of the crushed ore dome, which is expected to be completed in 2Q24.
• Steady state production targets are expected following the completion of the crushed dome.

Sovereign Metals* (SVML LN) 26.3p, Mkt Cap £150m – Sovereign expert team prepares new spiral for pilot graphite and rutile separation in Malawi facility

(Sovereign currently holds 100% of the Kasiya project. The government has a right to a 10% free carry in the project. Rio Tinto acquired an initial strategic interest of 15% for a $40.6m with an option to increase it to 19.99% within 12 months from 17 July 2023)

STRONG BUY – Valuation 55p

• Sovereign Metals report the upcoming instillation of a new industrial scale spiral concentrator at their expanded laboratory and testing facility in Lilongwe.
• The spiral has throughput capacity of 10tph of ore for graphite and rutile sample preparation and is identical in size and scale to spirals used in the PFS flowsheet.
• Installation and commissioning will be managed by Paul Marcos, Head of Project Development, who previously worked for Base Resources on their Kwale and Toliara projects and for Iluka Resources on a number of mineral sands operations.
• Paul Marcos spent >10 years working on Base Resources projects both in a design role with Ausenco and then within the Base.
• Sovereign’s new Chief Technology Officer, Dr Surinder Ghag is preparing graphite concentrate for bulk sample battery anode test work and qualification.
• The work should fit with Rio Tinto’s new battery manufacturing laboratory at Bundoora, Melbourne.
• Paterson & Cooke’s Cape Town laboratory is testing the spiral concentrator before transport to site in Malawi.

*SP Angel act as Nomad and broker to Sovereign Metals.

No.1 in Base Metals: SP Angel mining team awarded No 1. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q1 2024

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.

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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%