SP Angel Morning View -Today’s Market View, Tuesday 3rd September 2024

Gold holds steady before major US labour data guides Fed cutting cycle

MiFID II exempt information – see disclaimer below

American West Metals (AW1 AU) – Storm copper project continues to report high copper grades in RC drilling

Bushveld Minerals* (BMN LN) – Orion matched funding received

Cora Gold (CORA LN) – Interims

Great Southern Copper (GSCU LN) – Historical data expands exploration target area at Cerro Negro, Chile

Guardian Metal Resources (GMET LN) – Additional mineralisation potential identified at the Garfield project, Nevada

Power Metals Resources* (POW LN) – (Power Metals* holds a 51% stake in Guardian Metal Resources)

Kodal Minerals* (KOD LN) – Bougouni project on track for production by year end at US$65m capex

Mkango Resources* (MKA LN) – Cooperation agreement with rare earth magnet scrap preprocessing equipment manufacturer

Oriole Resources* (ORR LN) – Wide gold mineralisation identified from trenching programme

Gold holds steady ($2,500/oz) before major US labour data guides Fed cutting cycle

• Gold prices are hovering around the $2,500/oz mark.
• The metal held that level despite a sell-off in US Treasuries, which bounced from recent lows of 3.77% to 3.93% over easing growth concerns following new GDP data.
• This week will likely prove volatile for gold, with a number of key employment data points due.
• JOLTs data tomorrow, challenger job cuts and ADP data on Thursday followed by NFP data on Friday.
• Focus will be on the odds of a 50bp cut, with the market still pricing in a 30/70 split between 50 and 25bp respectively.
• This week’s guide on labour will be key, with consensus expecting a stronger NFP report on Friday and a tick down in unemployment from4.3% to 4.2%.
• If unemployment climbs unexpectedly, gold will likely benefit from a rush to haven assets, with ETFs continuing to add in recent weeks.

China’s August EV wholesale up 11% from July according to CPCA

• China’s NEV sales rebounded in August after a slight drop in July, with wholesale sales of passenger NEVs expected to come in at 1.05m units in August, up 32% from a year earlier and up 11% from July.
• BYD set a new sales record of 370,854 vehicles sales, driven by strong hybrid sales.
  • The company saw hybrid vehicle sales surge by 48%, outpacing the nearly 12% growth in battery-only car sales.

• Other automakers also saw strong sales in the month, with Nio, Xpeng, Leapmotor and Xiaomi among those to record growth.

• Some automakers, including Li Auto and Aito, did see a drop in sales, off the back of record sales in July.
• BYD’s overseas sales were 31,451, with the company on track to sell nearly 400,000 outside of China in 2024.

Tin price weakens despite continued supply disruptions as Man Maw mine remains offline

• Tin prices weakened 3% overnight to $31,380/t but have held over $30,000/t for much of the year.
• Tin has followed the wider base metals sector in recent weeks, selling off over concerns of China demand slumping.
• The tin price has been buoyed by supply disruptions from Myanmar, with a ban on operations by the Wa milita being lifted in January.
• Despite this, major operations, including the substantial Man Maw mine have stayed offline.
• Indonesian supply disruptions also continue, with the government delaying various key permits for exports.
• Indonesia tin exports down 54% yoy in 1H24. (Mining.com)
• Analysts expect tin to be supported by semiconductor sales, with China boosting investment to counter Western dominance.
• EV and solar panel growth are also expected to be supportive of long-term demand.

Copper and iron ore fall on weak China PMI as property sector continues to weigh on demand

• Copper prices fell 1.3% to $9,100/t, whilst iron ore prices continue fell below $100/t for the 62% Fe China index.
• Both copper and iron ore inventories remain historically elevated, as Chinese property developers struggle to finance projects.
• Banks are cutting their copper price forecasts, amid concerns over softening Chinese demand and ample supply.
• Eurasian Resources Group has signed a pre-export finance agreement with Bank of China and Glencore for $150m to produce copper cathode at their Metalkol project in DRC.
• Metalkol produced 100ktpa Cu and 15ktpa Co in 2023.
• Iron ore fell to $95/t for some contracts last night, biggest daily drop in three months after Chinese manufacturing and property data disappointed.
• Fortescue noted that high cost magnetite production, especially out of India, had started to come offline following the price slide.

Lithium sell-off continues as Chinese majors suffer losses amid low price environment

• Tianqi Lithium reported a net-loss of $734m last week.
• Carbonate prices in China continue to hover around the $10k/t mark, whilst spodumene 6% concentrate prices are stuck below $800/t.
• Tianqi holds 51% of Greenbushes, considered the lowest-cost hard rock operation globally.
• The Company plans to continue to develop domestic resources, as it continues to face off with SQM over their Chilean operations.
• Protests continue in Serbia, with major protests in Belgrade over the weekend against Rio’s Jadar mine development.
• Fastmarkets notes small scale restocking last week in China, but it remains ‘on a hand-to-mouth basis’ as inventories remain full.
• The Group expects LFP battery cathode production to increase in September, however, upstream oversupply persists.
• Lithium producers also note the ‘nickel cobalt manganese battery sector seems devoid of activity.’
• Africa continues to provide unexpected supply growth for hard-rock concentrates, with Zimbabwe expected to produce up to 15% of global LCE by 2028.
• Western producers continue to look to boost production, despite the weak pricing environment, with Pilbara and Sigma both seeking to double production over the next five years.
• Argentina is also expected to be a major source of production growth, with analysts seeing an additional 202kt LCE, in the coming years, funded by Zijin and Ganfeng.
• Greenbushes is expected to grow output by 32% between 2023-2025 to hit 2.14mt (LCE cost at c.$7k/t) whilst Zijijn’s LCE costs estimated at $14k/t by Bloomberg Intelligence.

Economics

Canada/China – Chinese government launched an anti-dumping investigation into Canadian canola seeds exports, a week after Ottawa announced tariff increases on Chinese EVs and steel.

• China will also look into some Canadian chemical products.
• Earlier, Canada announced an implementation of 100% tariffs on Chinese EV imports and a 25% tax on Chinese steel and aluminium, matching measures announced by the US and EU.

Germany – VW is considering factories in Germany for the first time in its 87 year history.

• The Company referred to weaker demand both in its home market and China as well as new competitors entering the European market, FT reports.
• The announcement comes after a savings programme launched last year failed to hit expectations by several billion of euros finding hard to deal with labour unions.

UK – Property prices climbed 2.4%yoy in August marking the quickest since late 2022, according to Nationwide numbers.

• Separate numbers released by the BOE showed the number of mortgage approvals increased to the highest level since Liz Truss’s budget in September 2022.
• House prices remain 3% below the all time high recorded in the summer 2022.

Turkey – High interest seem to be helping in bringing consumer prices inflation down with the gauge decreasing to 52% in August, down from 61.8% recorded in July.

• Inflation was down to 2.5% from 3.2% in July on month-on-month basis.
• Policy rate is currently at 50%, up from 8.5% seen last spring.

Currencies

US$1.1067/eur vs 1.1065/eur previous. Yen 146.17/$ vs 146.16/$. SAr 17.857/$ vs 17.858/$. $1.314/gbp vs $1.314/gbp. 0.675/aud vs 0.678/aud. CNY 7.116/$ vs 7.104/$

Dollar Index 101.65 vs 101.61 previous

Precious metals:         

Gold US$2,501/oz vs US$2,497/oz previous

Gold ETFs 83.1moz vs 82.9moz previous

Platinum US$921/oz vs US$929/oz previous

Palladium US$974/oz vs US$969/oz previous

Silver US$28.50/oz vs US$28.5/oz previous

Rhodium US$4,625/oz vs US$4,700/oz previous

Base metals:   

Copper US$ 9,112/t vs US$9,208/t previous

Aluminium US$2,416/t vs US$2,426/t previous

Nickel US$ 16,630/t vs US$16,565/t previous

Zinc US$ 2,829/t vs US$2,840/t previous

Lead US$ 2,059/t vs US$2,046/t previous

Tin US$ 31,100/t vs US$31,725/t previous

Energy:           

Oil US$77.5/bbl vs US$76.4/bbl previous

• European energy prices edged lower with the monthly gas price spread for US LNG exports into Asia vs Europe over 4Q24 now estimated at ~$1/mmBtu, compared to ~$0.2/mmBtu for September contracts.
• The UK Government’s sixth renewables auction has awarded contracts for difference (CfD) to projects generating 9.65GW of capacity, with the bulk coming from offshore wind and solar projects.
• Ørsted was awarded 15-year CfDs for a 1,080MW share of the Hornsea 3 Offshore Wind Farm and a 2,400MW CfD for Hornsea 4 at inflation-indexed 2012 strike prices of £54.23/MWh and £58.87/MWh respectively, which is well below the £73/MWh price cap and equivalent to strike prices of £75/MWh and £82/MWh in 2024 terms.

Natural Gas €38.2/MWh vs €39.3/MWh previous

Uranium Futures $79.2/lb vs $79.2/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$100.8/t vs US$100.8/t

Chinese steel rebar 25mm US$474.0/t vs US$474.8/t

Thermal coal (1st year forward cif ARA) US$124.8/t vs US$125.5/t

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

Coking coal Dalian Exchange futures price US$177/t vs US$171/t

Other:  

Cobalt LME 3m US$24,300/t vs US$24,300/t

NdPr Rare Earth Oxide (China) US$58,314/t vs US$57,432/t

Lithium carbonate 99% (China) US$10,047/t vs US$10,065/t

China Spodumene Li2O 6%min CIF US$770/t vs US$770/t

Ferro-Manganese European Mn78% min US$995/t vs US$995/t

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

China Graphite Flake -194 FOB US$447/t vs US$447/t

Europe Vanadium Pentoxide 98% 4.6/lb vs US$4.7/lb

Europe Ferro-Vanadium 80% 24.75/kg vs US$24.75/kg

China Ilmenite Concentrate TiO2 US$320/t vs US$323/t

China Rutile Concentrate 95% TiO2 US$1,370/t vs US$1,387/t

Spot CO2 Emissions EUA Price US$72.4/t vs US$72.4/t

Brazil Potash CFR Granular Spot US$290.0/t vs US$290.0/t

Germanium China 99.99% US$2,545.0/kg vs US$2,545.0/kg

China Gallium 99.99% US$445.0/kg vs US$445.0/kg

Battery News

Norway sets record for monthly EV sales

• EVs made up 94.3% of new car sales in Norway in August, according to the Norwegian Road Federation (OFV), a global record.
• The Tesla Model Y was the top seller, accounting for 18.8% of all car sales, followed by Hyundai’s Kona and Nissan’s Leaf.
• In August, 10,480 new EVs were sold in Norway, totalling 68,435 EVs sold so far in 2024.
• The country’s generous tax incentives make EVs more competitively priced compared to other European countries.
• Norway is on track to sell only zero-emission vehicles by 2025, well ahead of the EU’s 2035 target.
• By comparison, EVs accounted for just 12.1% of new car sales across the EU in July.
  • Petrol cars led the market with a 33.4% share, followed by hybrids at 32%, and diesel at 12.6%, according to the European Automobile Manufacturers Association.

Campaign for Better Transport urge pay-per-mile tax to be introduced

• In a letter to Rachel Reeves, the Campaign for Better Transport (CBT) urged her to reform vehicle taxes, with fuel duty poised to dwindle in the coming decade as petrol and diesel cars are phased out.
• Tax revenues are forecast to fall by £5bn between 2028 and 2033.
• CBT believe that a pay-per-mile charge on vehicles would go some way to filling the void.
• The charity is leading a forum of 37 organisations supporting reform, including motoring and other transport industry bodies.
• Head of Policy at the RAC, who form part of the charity, believes that “a pay-per-mile system could be set up according to vehicles’ emissions with EV drivers paying the least to further encourage take-up and ‘gas guzzlers’ paying the most” and that “the Treasury needs to get moving on creating this new system sooner rather than later.”

Automakers ‘rationing’ petrol and diesel cars to meet green targets

• Car makers are rationing sales of petrol and hybrid vehicles in Britain to avoid hefty net zero fines.
• According to the head of Vertu Motors, one of the country’s biggest dealership chains, manufacturers are delaying delivery of cars until next year to avoid breaching quotas set by the government.
• This is having an effect on customers as someone ordering a vehicle today will not receive it until February, for example.
• He blamed the zero emission vehicle (ZEV) mandate, which requires at least 22% of cars sold by manufacturers to be electric from this year.
• The ZEV mandate target will rise each year, before hitting 80% in 2030.
• Manufacturers will pay a £15,000 fine for each petrol/diesel vehicle that exceeds their quota, unless they have ‘carbon credits’ to spend.
• The ZEV mandate has been criticised by automakers who are set to sacrifice profits by selling EVs at discounted rates.

Company News

American West Metals (AW1 AU) A$0.12, Mkt Cap A$65m – Storm copper project continues to report high copper grades in RC drilling

• American West Metals continue to report unusually high copper grades from its Storm copper project on Somerset Island in the far north of Canada.
• The project lies on the North West Passage within the Artic Circle with supplies landed by ship when the ice allows.
• Constant daylight through the summer helps drilling to run 24-hours a day with >20,000m drilled in 128 RC 14 diamond drill holes drilled this year at Storm and Tempest.
• Cyclone Deposit (selected results):
  • Drill hole SR24-057 has intersected:
    • 1.5m @ 13.5% Cu, 23g/t Ag from 54.9m to 56.39m downhole, and,
    • 3.1m @ 2.0% Cu, 8.0 g/t Ag from 85.3m to 88.39m downhole, and,
    • 1.5m @ 1.8% Cu, 3.0g/t Ag from 109.7m to 111.25m downhole
  • Drill hole SR24-035 has intersected:
    • 3.1m @ 3.9% Cu, 10.5g/t Ag from 57.9m downhole, including,
      • 1.5m @ 5.9% Cu, 16.0g/t Ag from 57.9m downhole, and,
    • 4.6m @ 1.4% Cu, 5g/t Ag from 71.6m downhole, including, 
      • 1.5m @ 3.1% Cu, 11.0g/t Ag from 71.6m downhole
  • Drill hole SR24-031 is located outside of the current resource and has intersected:
    • 27.4m @ 1.1% Cu, 3.5g/t Ag from 96m downhole, including,
      • 4.6m @ 3.1% Cu, 7.7g/t Ag from 109.7m downhole
• Thunder Prospect: Squall discovery
• Drilling to the south of the Thunder Prospect shows a new potential discovery at ‘Squall’ with visual copper sulphides from approximately 181.4m down the drill hole.
• Cyclone: JORC MRE should expand significantly from January’s 12.1mt @ 1.2% Cu, 3.4g/t Ag (7.2Mt @ 1.2% Cu, 4g/t Ag Inferred and 4.9Mt @ 1.3% Cu, 3.4g/t Ag Indicated) with the deposit remaining open in all directions.
• Management is looking at the shipping of DSO copper ores from the Storm project, see RNS statements of 12^th and 13^th August. While the statement was perhaps a little premature it reflects future potential to mine high-grade ore and directly load this ore on to bulk carriers from a simple jetty. The project lies close to the shore with easy access to shipping passing through the North West Passage past Resolute Bay.

Conclusion:  We expect to see significant expansion of the JORC resource based on this season’s drilling.

Bushveld Minerals* (BMN LN) 0.7p Mkt Cap £16m – Orion matched funding received

• The Company has now received $10m in matched funding from Orion.
• Additional working capital funding will assist the team in continuing with their cost cutting initiatives and development works to streamline Vametco operations.

*SP Angel act as nomad and broker to Bushveld Minerals

Cora Gold (CORA LN) 1.6p, Mkt Cap £7m – Interims

• Loss for the period amounted to US$0.5m (1H23: -$2.6m) mostly reflecting G&A costs of $0.6m (1H23: $0.6m).
• Comparable period in 1H23 included $1.8m in impairment costs as the Company decided to focus on Sanankoro and write down investments in the Yanfolila Project Area.
• FCF totalled -$1.1m (1H23: -$1.2m) with $0.8m recorded in capitalised exploration costs.
• The Company is debt free with $2.1m in cash as of 1H24.
• Moratorium on new mining permits remains in place as the Malian government reviews all permits issued by the state previously.

Great Southern Copper (GSCU LN) 1.13p, Mkt Cap £5.0m – Historical data expands exploration target area at Cerro Negro, Chile

• Great Southern Copper reports that examination of historical data from the Mostaza mine area in its Cerro Negro project in Chile has expanded the exploration target area of interest.
• The project area is located around 170km from the port city of Coquimbo and is at a relatively low elevation “between 800 and 1200m and is accessible year-round for all exploration and mining”.
• The company explains that 16 of 25 diamond drill holes totalling 1,024m “finished in anomalous copper mineralisation … and 4 of the holes failed to reach the high-grade target … [and that re-examination of the data shows] … a significant halo of additional copper mineralisation located either side of the high-grade lenses … [which] … represent an important expansion of the mineralised potential”.
• Intersections contributing to these conclusions include:
  • A 7m intersection at an average grade of 0.62% Cu and 45.06ppm Ag from 18m in hole VDH4 which has now been extended to 40m at an average grade of 0.4% copper and 23.08ppm silver from surface; and
  • An 18m intersection at an average grade of 0.72% Cu and 31.7ppm Ag from 18m in hole VDH9 which has now been extended to 40m at an average grade of 0.44% copper and 16.55ppm silver from surface; and
  • A 14m intersection at an average grade of 1.92% Cu and 118ppm Ag from 36m in hole EDH15 which has now been extended to 54m at an average grade of 0.62% copper; and
  • An 8m intersection at an average grade of 0.88% Cu and 69ppm Ag from 57m in hole EDH244 which has now been extended to 28m at an average grade of 0.38% copper and from 44m depth; and
  • A 25.9m intersection at an average grade of 1.05% Cu and 81ppm Ag from 49m in hole EDH25 which has now been extended to 33m at an average grade of 0.53% copper from 46m depth; and
  • The inclusion of a 31m wide intersection at an average grade of 0.48% copper and 18.04ppm silver from surface in hole VDH1 which had not previously been incorporated “in the original high-grade resource calculation”.
• The company also confirms that it is making preparations to resume drilling at Mostaza and that its continuing exploration has shown “additional copper mineralisation hosted in multiple structures parallel to the Mostaza trend further expanding global copper potential”.
• CEO, Sam Garrett, explained that the exploration campaign at Cerro Negro has “three key objectives – drill beneath the historic Mostaza open pit to develop a high-grade copper-silver-gold resource, expand the Mostaza deposit along strike targeting extensions to the mineralised structures, and explore at depth targeting large-scale porphyry copper type deposits”.
• He said that the expanded potential identified at Mostaza was “very encouraging … [and] … has the potential to significantly increase the size of the Mostaza deposit and provides additional optionality for potential future mining operations” while it “is also very significant in terms of our porphyry copper exploration at Cerro Negro”.

Conclusion: Future drilling will test the recently identified additional exploration potential at Cerro Negro – we look forward to further results as the exploration programme proceeds.

Guardian Metal Resources (GMET LN) 34.5p, Mkt Cap £40m – Additional mineralisation potential identified at the Garfield project, Nevada

Power Metals Resources* (POW LN) 17.9p, Mkt cap £19m – (Power Metals* holds a 51% stake in Guardian Metal Resources)

• Guardian Metal Resources reports that following the expansion of its exploration area at the Garfield project in the Walker Lane Belt of Nevada which was announced in May, prospecting and geophysical surveying has shown visual copper mineralisation within a new area known as the ‘Freeze’ zone.
• Eight samples from the new zone, which lies east of the previously identified targets, reported assays of up to 15.56% on a copper equivalent basis (CuEq including contributions from gold and silver) “with 7 of the 8 samples returning >1.75% CuEq”.
• Ground magnetic survey results show “a buried magnetic anomaly proximal to the high-grade rock sample results, pointing to the potential for the Freeze Zone to host a mineralised porphyry system”.
• The project area now hosts “our main named target zones including ‘Power-Line’, ‘High-Grade’, ‘Pamlico’ and now ‘Freeze’, with varying porphyry, skarn- and epithermal affinity”.
• Preparations are underway to secure drilling permits with the requisite documents to “be submitted to the local Bureau of Land Management (“BLM”) office shortly”.
• CEO, Oliver Friesen, said that “In total we now have a greater than 6km x 3km mineralised footprint at Garfield, with confirmation of porphyry and skarn as well as epithermal mineralisation across the now four principal target zones … [and confirmed that] … the Company is quickly moving towards finalising drill targets to drive this very exciting project forward”.

Conclusion: Early-stage exploration of the recently acquired extension to the Garfield project area in Nevada has identified a fourth target zone for copper mineralisation. The company is applying for drilling permits and we look forward to results when the campaign starts.

*SP Angel acts as Nomad and Broker for Power Metals

Kodal Minerals* (KOD LN) 0.53p, Mkt Cap £108m – Bougouni project on track for production by year end at US$65m capex

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 report annual results and progress for the year to end-March 2024.
• Operating loss of £3.3m after impairments and share based payments vs a loss of £1.5m in 2023
• Cash: £16.3m at end-March 2024 vs £0.5m a year earlier
• Group net assets rose to £57m vs £16m yoy
• Value of gold projects written down to £2.2m vs £3,3m in 2023
• Exploration and evaluation expenditure fell to £3m from £3.2m yoy
• Restructured Bougouni project into KMUK ‘Kodal Mining UK Limited’ to accommodate US$100m investment by Hainan Mining who now control 51% of KMUK. Kodal Minerals holds a 49% stake in KMUK.
• Hainan invested a total of US$117.8m with US$17.5m going into Kodal Minerals.
• Kodal increased the Bougouni JORC Resource by 40% to 31.9Mt at 1.06% Li₂O, following reverse circulation (“RC”) drilling completed in the first half of 2023
• Process plant construction is ongoing with DMS and dual stream crushing modules delivered to the Port of Abidjan in the Ivory Coast
• US$65m capex confirmed following project review
• Bougouni mining contractor confirmed with all access roads to the Bougouni site completed
• ESIA ‘Environmental and Social Impact Assessment’ for Bougouni Stage 1 DMS received
• Kodal plans to produce its first spodumene concentrate by the end of this year despite a short delay in the delivery of the DMS plant, structural steelwork and crushing circuit.
• Blasting is expecting to start this month to build a run-of-mine stockpile ahead of plant commissioning.
• The power plant and other piping and electrical items are enroute from China.
• Lithium prices: have continued to fall to US$770/t vs US$930/t for 6%min CIF China at end July. Prices were at US$1,350/t four months ago.
• Battery materials processors have been cautious in their restocking of raw materials due to uncertainty over EV sales.
• New tariffs in Europe and Canada following 100% tariffs in the US combined with expectations for weaker sales in China have tempered demand.
• Gold: Fatou and Niéllé Gold prospects seen as core assets with new exploration planned to advance towards mineral resource estimates.

Conclusion:  Kodal management continues to see first production before the end of 2024.

*SP Angel acts as financial advisor and broker to Kodal Minerals. The analyst holds shares in Kodal Minerals.

Mkango Resources* (MKA LN) 6.4p, Mkt Cap £15m – Cooperation agreement with rare earth magnet scrap preprocessing equipment manufacturer

• Maginito (79.4%/20.6% MKA/CoTec) signed a binding and exclusive agreement with Inserma for preprocessing rare earth magnet containing scrap equipment.
• The cooperation agreement covers the optimisation, commercialisation and roll out pf preprocessing technologies for HyProMag in the UK, Germany, the US and other regions.
• The agreement will initially involve preprocessing hard disc drives (HDD) by removing rare earth magnet containing voice call motor (VCM) in under three seconds that will be then fed into the HPMS vessel by HyProMag.
• Removal of the VCM also allows for lower cost recycling of the rest of the HDD.
• The goal is to expand the agreement to cover preprocessing for other end of life equipment including loudspeakers and electric motors.
• Under the agreement, Maginito will assist Inserma with marketing its technology internationally and introducing it to potential Maginito customers including scrap feed suppliers and shredding companies.
• Maginito will assist with arranging funding for R&D prototypes, demonstration, and commercial plants for deployment internationally.
• Inserma will build, install, sell or lease units to Maginito/HyProMag or to a third party customer as well as provide technical support on commissioning and maintenance of the unit.
• Maginito will purchase three HDD preprocessing units for Germany (delivered), the UK and the US for ~US$40k per unit.

*SP Angel acts as nomad and broker to Mkango Resources

Oriole Resources* (ORR LN) 0.29p, Mkt cap £12m – Wide gold mineralisation identified from trenching programme

• Oriole reports results from three of their nine phase 1 trenches at Mbe, which are spaced 200m apart over the 1km long MB01-N prospect.
• Highlights from the first three trenches include best channel intersections of:
  • MBT001 – 50m at 1.11g/t Au, including 20m at 2.23g/t Au
  • MBT002 – 38m at 0.55g/t Au
  • MBT003 – 68m at 0.77g/t Au, including 12m at 1g/t Au, 24m at 1.18g/t Au
• Two dominant lithologies have been noted – amphibolite-gneisses and porphyritic felsic intrusions (quartz feldspar porphyry).
• Samples were taken over 2m intervals, from both the trench wall and from weathered, in situ material.
• The positive trenching results showed positive correlation to the gold anomalies over the target, announced in June.
• The Company expects to report further results from the remaining trenches over the coming weeks.
• Trenching results will be used to guide the 2024/25 maiden drilling programme at Mbe.

Conclusion: Today’s trenching results are further evidence of the potential of Mbe as Oriole continues to progress greenfield exploration in Cameroon. Encouraging gold mineralisation over consistent and wide intercepts supports management’s long-held thesis that Mbe has the potential to be a significant discovery in Cameroon. We look forward to further trenching results to come over the month, before guidance on the maiden drilling programme at Mbe, funded by backing from BCM.

*SP Angel acts as Broker to Oriole Resources

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.

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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