SP Angel Morning View -Today’s Market View, Monday 11th November 2024

Metals subdued after Beijing disappoints traders on stimulus measures

MiFID II exempt information – see disclaimer below

Anglo Asian Mining* (AAZ LN) BUY – 308p – Demirli update

Ariana Resources (AAU LN) – Finance agreement for the Dokwe feasibility study

Caledonia Mining (CMCL LN) – Encouraging exploration results from Motapa as the company confirms 2024 production and cost guidance

Critical Metals plc (CRTM LN) – First truck with ore from Molulu copper, cobalt mine has arrived at OM Metals process plant in the DRC

Goldstone Resources* (GRL LN) – Homase operational update

Kore Potash (KP2 LN) – Trading halt remains pending an EPC announcement

Liontown Resources (LTR AU) – Updated guidance amid spodumene mine ramp up

Omico Mining (Private)– Omitiomire feasibility study

Resolute Mining (RSG LN) – Detention of employees in Mali

Thor Explorations* (THX LN) – Q3 Financial Results

Vulcan Energy Resources (VUL AU) – Project update

Metals subdued after Beijing disappoints traders on stimulus measures

Investors concerned that Beijing refinancing is insufficient to boost economy

• Copper ($9,400/t) prices have weakened alongside base metals, with aluminium down 1.5% this morning and nickel down 1%.
• Last week’s China policy event saw traders disappointed with a US$1.4tn package to refinance debt currently weighing on local governments.
• Limited reference was made to stimulating the consumption side of the Chinese economy, disappointing traders positioned for a revival in demand.
• Deflationary pressures continue, with factory gate prices down 25 months in a row.
• Iron ore prices are falling below the key $100/t level, down 2.5% in Singapore this morning.
• Steel exports have risen to 2015 highs, with analysts suggesting steelmakers may have been frontrunning Trump tariffs.

Gold ($2,670/oz) prices steady as funds take profit following election

• Gold prices are sitting around $2,670/oz, $100 lower than recent record highs.
• The metal is being pressured by selling triggered during the US election night, suggesting that traders were positioned for a less clear-cut outcome.
• US Treasury yields are higher following a sharp sell-off following Trump’s victory, perhaps suggesting expectations of higher-for-longer inflation.
• The Fed cut as expected, with Powell shifting emphasis to the labour market following several years of inflation focus.
• CPI data due this week will likely be the next catalyst for gold, with traders concerned rate cuts may reignite inflation into a strong economy.
• The Dollar has been strong, further weighing on gold prices.
• We wonder how Trump’s relationship with both Xi Jinping and Putin may impact the BRIC countries’ current strategy of foreign reserve diversification, which has been a boon to gold prices recently.

Copper – Chinese unwrought imports rose 1.1% to 506kt in October

• Copper concentrates rose 0.2% yoy to 2.31m and 3.3% to 23.36mt year-to-date
• UK needs to build 1,000km of power transmission lines and >4,500km of sub-sea cables for windfarms and interconnectors.

• This would double the construction of network built in the last 10 yeears.

Holdings in Bitcoin ETF launched by BlackRock this year surpassed its gold ETF amid more buying and climbing prices for the largest cryptocurrency.

• Assets held in IBIT (iShares Bitcoin Trust) currently stand at just over US$34bn compared to ~$33bn held in iShares Gold Trust (IAU).
• IAU is estimated to be the second largest gold ETF and was launched in 2005.
• Holdings in the largest bitcoin ETF remain below the size of the largest gold ETF (SPDR Gold Shares) with ~$75bn in assets.

SharePickers: Video: This is Why Gold is Rising and It Will Probably Continue:

• Podcast: https://audioboom.com/posts/8547593-john-meyer-this-has-one-of-the-lowest-risk-profiles-i-ve-seen-for-a-long-time
• Mining companies can offer multiple returns: Video:
• Podcast: https://audioboom.com/posts/8591948-john-meyer-mining-companies-can-offer-multiple-returns

LSE Group Starmine awards for Q3 commodity forecasting:

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Previous Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q3 2024

No.2 in Base Metals: SP Angel mining team awarded No 2. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q3 2024

Economics

US – Kashkari warns of inflation from Trump trade war

Fed cut rates to 4.5% – 4.75% last week – its all about jobs and data

• Tariff barriers are seen as potentially limiting the Fed’s ability to reduce interest rates
• Trump to disrupt the political system in the US.
• Get ready for an aggressive and deal hungry superpower
• Concerns over Trump security as US charges Iranian-linked plotters targeting Trump.

China – CNY6 tn (US$837bn) to refinance hidden debt held by local government

• Trade surplus US$95.27bn in October vs US481.7bn in September
• Imports fell 2.3% in October vs 0.3%
• Exports rose 12.7% in October vs 2.4%
• Manufacturers are seen pre-loading orders into the US ahead of Tariffs and other issues potential trade barriers.

Currencies

US$1.0691/eur vs 1.0780/eur previous. Yen 153.68/$ vs 152.54/$. SAr 17.621/$ vs 17.416/$. $1.290/gbp vs $1.296/gbp. 0.658/aud vs 0.665/aud. CNY 7.188/$ vs 7.164/$.

Dollar Index 105.30 vs 104.58 previous

Precious metals:         

Gold US$2,671/oz vs US$2,691/oz previous

Gold ETFs 83.6moz vs 83.7moz previous

Platinum US$987/oz vs US$990/oz previous

Palladium US$998/oz vs US$1,018/oz previous

Silver US$31.3/oz vs US$31.5/oz previous

Rhodium US$4,675/oz vs US$4,675/oz previous

Base metals:   

Copper US$9,441/t vs US$9,565/t previous

Aluminium US$2,601/t vs US$2,688/t previous

Nickel US$16,140/t vs US$16,495/t previous

Zinc US$2,987/t vs US$3,035/t previous

Lead US$2,029/t vs US$2,043/t previous

Tin US$31,730/t vs US$31,765/t previous

Energy:           

Oil US$74.0/bbl vs US$74.8/bbl previous

• Global crude oil prices fell on underwhelming Chinese data, while European energy prices edged higher as “Dunkelflaute” conditions persist over north-west Europe, curtailing wind power generation
• The US Baker Hughes rig count was unchanged at 585 units last week (-31 or 5% y/y), with oil rigs at 479 units (-15 y/y) and gas rigs at 102 units (-16 y/y), with Louisiana down 3 to 33 rigs and Oklahoma up 2 to 44 rigs.
• Media reports US President-elect Donald Trump plans to withdraw from the Paris climate agreement and end the pause on permitting new liquefied natural gas facilities targeting exports to Asia and Europe.
• Media reports Russia is considering a plan to merge state-owned Rosneft Oil with GazpromNeft and Lukoil.
• Media reports that Perenco will spend three quarters of a planned $2bn 2025 capex budget in Africa, which includes a small-scale liquefied natural gas plant in Gabon that will produce 0.7mtpa.

Natural Gas €42.7/MWh vs €42.3/MWh previous

Uranium Futures $76.5/lb vs $76.6/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$100.8/t vs US$102.4/t

Chinese steel rebar 25mm US$525.7/t vs US$527.4/t

HCC FOB Australia US$207.3/t vs US$207.5/t

Thermal coal swap Australia FOB US$143.5/t vs US$142.2/t

Other:  

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

NdPr Rare Earth Oxide (China) US$58,917/t vs US$59,114/t

Lithium carbonate 99% (China) US$10,156/t vs US$10,190/t

China Spodumene Li2O 6%min CIF US$770/t vs US$760/t

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

China Tungsten APT 88.5% FOB US$340/mtu vs US$340/mtu

China Graphite Flake -194 FOB US$440/t vs US$440/t

Europe Vanadium Pentoxide 98% US$4.8/lb vs US$4.7/lb

Europe Ferro-Vanadium 80% US$25.6/kg vs US$25.05/kg

China Ilmenite Concentrate TiO2 US$311/t vs             US$312/t

China Rutile Concentrate 95% TiO2 US$1,162/t vs US$1,166/t

Spot CO2 Emissions EUA Price US$62.6/t vs US$62.6/t

Brazil Potash CFR Granular Spot US$280.0/t vs US$277.5/t

Germanium China 99.99% US$2,875.0/kg vs US$2,875.0/kg

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

Battery News

EVs at record discount as car makers under pressure to hit government quotas

• Car makers have cut EV prices by around a third in order to try and reach the government mandated 22% of new cars sold being EVs.
• Automakers face fines of £15,000 for each vehicle that they fall short of the quota.
• DS Automobiles has slashed the price of its DS 3 Crossback by 35.7%, with MG lowering prices of its MG5 and MG ZS by 34.2% and 30.1% respectively.
• Peugeot, Citroen and Jaguar have also slashed prices in recent weeks.
• According to AutoTrader, the average discount currently is 12.4%, the deepest discount ever.
• It is expected that the trend towards more affordable EVs will continue as the quota of new cars being EVs increases.
• Next year the quota will increase to 28%, 52% by 2028 and 80% by 2030.

Tariff talks continue between Beijing and Brussels

• Talks between Beijing and the European Union are continuing after the EUs new tariffs on Chinese-made EVs.
• Negotiators reported technical progress after “a week of intensive discussions” between European Commission and Chinese trade officials in Beijing.
• According to a commission statement, talks focused on a possible agreement on a price commitment as an alternative to the additional tariffs of up to 35.3% on Chinese EVs.

Company News

Anglo Asian Mining* (AAZ LN) 106p, Mkt Cap £121m – Demirli update

BUY – 308p

• The Company released an update on development status at Demirli Copper Mine in the Karabakh Region.
• The team established access to facilities this summer and carried a number of site visits since then.
• An office, an accommodation facility and a small laboratory were established at site.
• Processing facilities with a 6mtpa capacity for production of a copper concentrate along with a smaller molybdenum plant are intact and in reasonable condition.
• Some electrical and mechanical equipment within the plant was removed and will require replacement.
• Tailings facilities are currently close to full capacity and the Company commissioned a study for another dam wall raise.
• The team is evaluating the options for the provision of reliable power and water supplies to the operation.
• There is a good road access to the property.
• Initial benchmark environmental study of operations as well as tailings facilities is in progress to ensure no liability in respect of any damage identified.
• Historic drill core is available on site, although, the core has not yet been matched to drill holes.
• Preliminary estimates point to a 58mt at ~0.41% Cu for ~240kt metal contained with reserves potentially at 22mt.
• The current block model is incomplete with the deposit to get remodelled using full information from historical and new drill holes.
• The team is carrying out a short RC drilling programme to identify a one year worth of mineral inventory aiming to restart operations as quickly as possible.
• The Company also plans to produce a JORC MRE on the property.
• The team will provide an update on timing and cost of reopening the plant in due course.
• Separately, the Company announced a change in auditor with BDO to succeed Ernst & Young.

Conclusion: Works to recommission the Demirli copper mine are accelerating after access to the property was secured earlier this summer. The team is carrying all necessary checks and audit of the operation and is planning to update on timing and cost of reopening in due course. Concurrently, drilling has already started to identify mineral inventory for a timely restart with the team looking to release a JORC MRE on the property as well.

*SP Angel acts as nomad and broker to Anglo Asian Mining

Ariana Resources (AAU LN) 2.5p, Mkt Cap £50m – Finance agreement for the Dokwe feasibility study

• Ariana Resources reports that it has secured a loan from institutional investor, Riverfort Global Opportunities, of up to US$5m to help finance the feasibility study work for its Dokwe gold project in Zimbabwe.
• The company has received an initial US$2m advance of the funds and today’s announcement confirms that Riverfort has agreed to provide “an equity investment of a minimum of A$350,000 and up to A$500,000 into the planned ASX capital raise as part of the anticipated ASX dual-listing IPO”.
• Ariana Resources “intends to repay the funds advanced under the facility in cash, primarily from cashflow generated from its business operations in future years”.
• Managing Director, Dr. Kerim Sener, welcomed the funds which, he said, “is intended to limit dilution and forms a key part of our strategy in the lead-up to our planned ASX IPO”.
• He confirmed that the “planned Feasibility Study programme … will initially include additional exploration of the project to prove up additional resource upside … [and that the resources at Dokwe] … is capable of further growth”.
• Ariana Resources has already announced that there may be potential to increase the current 1.8moz gold resource as both the Dokwe North and Dokwe Central mineralisation which remains open both laterally and at depth.

Conclusion: The availability of finance for the Dokwe feasibility study facilitates plans for work aimed, in part, at resource expansion and enlists a supporter for the planned dual listing on the ASX.

Caledonia Mining (CMCL LN) 1,140p, Mkt Cap £225m – Encouraging exploration results from Motapa as the company confirms 2024 production and cost guidance

• In a series of announcements today, Caledonia Mining reports a gross profit of US$19.3m for the quarter (2023 Q3 – US$14.1m) bringing year to date gross profit to US$56.1m (2023 – US$30.9m).
• After tax profit of US$3.3m for the quarter brings YTD performance to US$16.5m (2023 – Q3- US$5.7m and YTD 16.5m).
• The results reflect the production of 21,722oz of gold at an average on-mine cost of US$1,056/oz and all-in-sustaining cost of US$1,501/oz during the quarter bringing YTD production to 56,815/oz with the company confirming its’ 2024 production guidance range of 74-78,000oz at an on mine cost of between US$950-1,050/oz.
• “Net cash from operating activities in the Quarter was $4.6 million, lower than the $14.5 million earned in the comparable quarter due to lower operating profits, increased realised foreign exchange losses due to the devaluation of the Zimbabwean currency (“ZiG”), increased tax payments due to timing of payments, and increased working capital due to accelerating spend on inventory levels during the Quarter to support preventative maintenance initiatives and reduce potential production delays”.
• CEO, Mark Learmonth, confirmed that the company is continuing to “explore ways to reduce on-mine costs at Blanket – particularly the cost of electricity and labour where several initiatives are being implemented and further measures are under consideration”.
• The company also confirms a quarterly dividend of US$0.14/share maintaining the level first announced in October 2021.
• Caledonia Mining also reports exploration results from its Motapa project located approximately 110km north of Bulawayo and adjacent to the southeast to its Bilboes project in southern Zimbabwe.
• Results from almost 13,000m of trenching and over 4,000m of diamond drilling and 5,000m of reverse-circulation drilling have “highlighted the presence of widespread gold mineralization over a combined strike length of more than 9km”.
• Today’s announcement confirms “significant high grade gold mineralization in numerous areas … [including] … the Jupiter, Pluvious and Mpudzi areas”.
• Among the results highlighted are:
  • An intersection of 10.00m averaging 6.36g/t gold from a depth of 81m in hole JPRC-01 in the Jupiter area; and
  • An intersection of 13.00m averaging 5.17g/t gold from a depth of 88m in hole JPRC-05 also in the Jupiter area; and
  • An intersection of 14.00m averaging 3.20g/t gold from a depth of 63m in diamond drillhole JDD-08 also in the Jupiter area; and
  • An intersection of 7.00m averaging 3.27g/t gold from a depth of 64m in hole PLVRC-06 in the Pluvious area; and
  • An intersection of 8.00m averaging 4.00g/t gold from a depth of 74m in diamond drillhole PLVDD-01 in the Pluvious area; and
  • An intersection of 4.00m averaging 10.95g/t gold from a depth of 12m in hole MPZRC-06 in the Mpudzi area.
• Mr. Learmonth said that the “results from the sampling at Motapa have delivered encouraging results in terms of strike width, length and grade… and highlighted the presence of widespread gold mineralization over a combined strike length of more than 9 km”.
• Noting its proximity to Bilboes “where the Company plans to develop a major new high grade open pit gold mine … [Mr. Learmonth said that] … Motapa will continue to form a key role in the Company’s growth strategy”.

Conclusion: Caledonia Mining confirms its 2024 production guidance range of 74-78,000oz at an on mine cost of between US$950-1,050/oz. The company is also generating encouraging exploration results at the Motapa prospect, adjacent to the Bilboes project north of Bulawayo

*SP Angel mining analysts have visited Caledonia’s mining operations in Zimbabwe

Critical Metals plc (CRTM LN) 1.32p, Mkt Cap £0.89m – First truck with ore from Molulu copper, cobalt mine has arrived at OM Metals process plant in the DRC

• Critical Metals plc report the first truck carrying ore from Molulu copper, cobalt mine has arrived at OM Metals process plant in the DRC.
• More trucks are expected to run following the assaying and sampling of the ore in the first truck.
• Payment is expected within two weeks from invoicing OM Metals.
• Critical Metals first entered into a contract with OM Metals & Resources SARL, a Kinshasa-based supply wholesaler.
• The company renewed offtake terms with OM Metals last week.
• Geotechnical and Geological work is restarting at Molulu “in the Southern zone and an area where the Conglomerate outcrops with traces of copper malachite in the Northern zone.
  • These geotechnical activities will provide further data points for consideration when designing the new diamond drill programme.”
• Feasibility Study (solar plant): The Molulu team are in discussions for the FS on a potential 2 MW solar power plant at Molulu to supply power for a potential copper concentrator, the camp and the surrounding area including the E.P. Molulu school.
• Financing (US$3m drawdown facility): The company has borrowed US$650,000 from the facility to date with $100,000 of debt repaid from the facility along with $79,500 of interest and fees for signing up the drawdown facility.
• Repayment of the drawdown facility was extended to 15 September 2025 from 30 September 2024 but remains subject to continuing due diligence.
• The lenders have agreed to defer payments on the US$645,651 until 20 December and have not issued any default notices.
• To preserve cash the company has implemented a voluntary 25% salary deferral reduction at the executive level. Staff recruitment and consultant engagement will be reconsidered when cash is available.

Conclusion:  We look forward to news of the assay grade and payment for the first 40t truck from Molulu. We hope the company will be able to return to its previous target of 10,000t/month of copper ore production subject to resolution of satisfactory due diligence on the drawdown facility and definition of sufficient ore within the Molulu open pit.

Goldstone Resources* (GRL LN) 0.9p, Mkt Cap £7m – Homase operational update

• The Company produced 1.9koz to date in 2024, compared to 1.3koz in 2023.
• 1H24 production was 1.3koz implying 0.6koz delivered in just over four months.
• The Company reiterated targets for 1.0koz per month production rate from 48kt of stacked agglomerated ore from January 2025.
• The start of the dry season should help with expansion plans.
• Mining operations in Pit 2 are ongoing and are expected to be completed in January 2025.
• Preparation works for Pit 1 commencing with ore mining expected in 1Q25.
• Cell 4 lift preparations have started and earthworks for extension of cells 5, 6 and 7 are continuing.

*SP Angel acts as broker to Goldstone Resources

Kore Potash (KP2 LN) 3.5p, Mkt Cap £153m – Trading halt remains pending an EPC announcement

• Shares remain suspended on ASX and JSE pending the release of the update on the Kola EPC contract.
• The Company expects trading to resume 20 November by which time the Company will release the announcement.
• Trading was suspended Thursday last week at the request of the Company

Liontown Resources (LTR AU) A$0.84, Mkt Cap A$2bn – Updated guidance amid spodumene mine ramp up

• Liontown, operator of the Kathleen Valley underground spodumene mine, reports an update to FY25 guidance.
• The miner, backed by Gina Rinehart, notes plans to ‘prioritise higher margin ore at reduced costs to adapt to the low-price lithium environment.’
• Kathleen Valley will now aim for 2.8mtpa production from FY27-end.
• C.38,000m of development metres reduced between Fy25-30.
• 2H25 FOB operating costs estimated at A$755-855/t on an SC6 basis.
• 2H25 AISC guided to A$1,170-1,290/t with total CAPEX for the period at A$97-113m.
• Company expects A$100m in savings.
• FY25 production guidance:
  • 2,3mt processed at 1.2% Li2o producing 260-295kdmt SC6.
• DFS had guided for 1.4% feed grade over first 10 years and 1.3% over LOM, however, the new mine plan targets 1.5% feed grades by FY30.
• Over October, 203kdmt were milled, with plant availability at 91%.
• 25kdmt concentrate produced, grading 5.4% Li2O (DFS at 6%)
• Recoveries hit 81% in October and averaged 68% float recoveries over the month. Lithia recoveries averaged 52% in October vs 51% in September and 35% in August (DFS at 78%)
• Company has begun debottlenecking procedures with Lycopodium.
• The updated mine plan will provide the ‘ability to revisit an expanded mine plan an embedded growth optionality.’

Omico Mining (Private) – Omitiomire feasibility study

• Omico Mining has released highlights of its feasibility study on its open-pit Omitiomire open pit copper project located ~140km east of Windhoek, Namibia.
• The company aims to mine a total of ~612mt of ore produce around 25-32,000tpa of copper (average of 28,000tpa) cathode at an all-in-sustaining cost of US$6,133/t over a 15 year mine life using SX/EW technology.
• An initial US$364m capital investment is expected to generate an after tax NPV8% of US$224m and IRR of 18% at a copper price of US$4.50/lb (~US$9,920/t).
• Currently, copper prices are approximately US$9,500/t.
• Over the mine’s life, the study envisages the extraction of a total 102mt of ore at an average grade of 0.5%copper and the removal of ~510mt of wates at an average Waste:Ore ratio of 5x.
• Copper recovery rates are expected to be 85%.
• In addition to the pre-production capital, Omico expects a further ~US$60m of sustaining capital will be required through the mine’s life.
• Mark Sawyer, partner at Greenstone Resources which manages the project, explained that the Feasibility Study “has defined a highly compelling copper mining operation, on a standalone basis” and will create “800 to 1,000 direct jobs and US500 million in life of mine royalties and corporate taxes”.

Resolute Mining (RSG LN) 23.6p, Mkt Cap £735m – Detention of employees in Mali

• Resolute Mining reports that three of its employees, including Chief Executive, Terry Holohan, have been detained in Mali “by Government Officials”.
• The announcement confirms that the “executives were in Bamako to hold discussions with the mining and tax authorities regarding general activities related to Resolute’s in-country business practices, and to progress open claims made against Resolute, which the Company maintains are unsubstantiated”.
• Today’s announcement confirms that the company “has followed all official processes with respect to its affairs and has provided the authorities with detailed responses to all the claims made”.
• “The Company is in regular communication with the three detained employees who remain held at the Economic and Financial Centre of Bamako … [and confirms that its] … employees are being treated well and continue to receive support on the ground from the UK and International Embassies and Consulates”.
• Resolute Mining operates the Syama Mine in Mali which produces over 300koz pa of gold.
• The new 2023 mining code was developed before the recent battle with Tuareg rebels in July where dozens of Wagner mercenaries were killed.
• But we wonder if the recent drive by the Malian authorities to shore up their finances bears some connection to this event and to the need to better protect Mali from insurgents to the north of Bamako.

Conclusion:  We have known Terry for many years and know he would have done nothing to provoke detention.

Detention appears to be part of the negotiating process by the Malian military junta with four Barrick Gold execs also previously detained.

We suspect the government is looking to increase its share of the Syama gold mine to 35% from 20% for relatively modest compensation given the value of the gold mine.

We hope for a speedy resolution and release of Resolute Mining’s staff.

Thor Explorations* (THX LN) 15.3p, Mkt cap £102m – Q3 Financial Results

• Nigerian gold producer Thor sold 18.2koz Au over the period at an average price of $2,328/oz.
• The Company reports cash operating costs of $585/oz and AISC of $766/oz.
• EBITDA reported at $27.4m.
• The Company went into a net cash position of $2.7m from net debt of $2.7m previously.
• Segilola production stood at 20.1koz for the period, with lower recoveries of 88.5% a result of a mill liner changes during the quarter.
• 202kt of ore processed, up 16%qoq, whilst gold in circuit fell by 1,614oz.
• Stockpiled ore up 13% to 1.3mt at average grades of 0.94g/t Au.
• Mining rates down on the fly-rock incident, whilst ‘severe weather’ delayed high grade ore access.
• Mine life extension work continues at Segilola, with a 12-hole drilling programme progressed over the quarter targeting the underground potential.
• At Douta, a PFS is due for completion this quarter.
• Company reiterates guidance of 85koz at $800-900/oz AISC.
• The Nigerian Minister for Mines is investigating claims by the Osun State Government over a tax dispute, with a Committee ruling due ‘in the near future.’

*A member of the SP Angel research team holds shares in Thor Explorations

Vulcan Energy Resources (VUL AU) A$5.2, Mkt Cap A$977m – Project update

• The Company announced last week production of first lithium hydroxide at its demonstration downstream lithium processing facility in Frankfurt, Germany.
• LHM was produced at the Central Lithium Electolysis Optimisation Plant (CLEOP) from lithium chloride recovered using at the Adsorption-type Direct Lithium Extraction (A-DLE) demo plant.
• LHM produced at the facility will be provided to its offtakers including Stellantis, Renault, LG and Umicore for qualification testwork.
• The Company is targeting to produce 24ktpa LHM at ~EUR4,000/t C1 cash cost in Phase 1 from its geothermal lithium brines deposit.
• Separately, Reuters reports that maiden commercial production target has been updated to 2027, two years later than previously planned.
• Vulcan is expected to raise a total of EUR1.9bn in project finance including planned EUR600m in equity with the remaining EUR1.3bn via loans from banks, including the European development bank EIB.

 LSE Group Starmine awards for Q3 commodity forecasting:

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Previous Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q3 2024

No.2 in Base Metals: SP Angel mining team awarded No 2. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q3 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