SP Angel Morning View -Today’s Market View, Thursday 31st July 2025

Blood on street as Trump exempts refined copper from 50% tariff

MiFID II exempt information – see disclaimer below

80 Mile Plc* (80M LN)  – Government approval for transfer of 100% ownership of the Disko-Nuussuaq Ni-Cu-Co-PGE-Au project in West Greenland.

Anglo American (AAL LN) – Copper and iron-ore dominate H1 financial performance

Agnico Eagle (AEM US) – Cost control supports earnings beat despite lower production from main operations

Celsius Resources (CLA LN) – First copper production from the MCB project, Philippines by 2027

Endeavour Mining (EDV LN) – Ramping up shareholder returns amid strong gold price environment

Jupiter Mines (JMS AU) – Weaker manganese weigh as Exxaro secures 50.1% of Tshipi

Kore Potash* (KP2 LN) – BUY – Operations update highlights progress with project funding discussions and Early Works with EPC contractor

Lindian Resources (LIN AU) – Quarterly update

Panther Metals (PALM LN) – Encouraging early results from sampling the Winston Lake tailings, Ontario

Serabi Gold (SRB LN) – Palito and São Chico mineral reserve and resource updates

Sovereign Metals* (SVML LN) – Quarterly cash flow highlights strong cash position as Sovereign advances towards Kasiya rutile, graphite project BFS in Q4

URU Metals* (URU LN) – Combination of data from the SpectremPlus™ airborne electromagnetic survey with gravity and magnetic surveys to better locate drill targets

IGTV – The Future of Mining: Gold, Copper, Rare Earths & M&A:  https://youtu.be/-G59iOq6x2c?si=z4fVkyHNP9isbOTB

Copper ($9,660/t) steady on LME as cross-Atlantic arbitrage trade unwinds on Trump U-turn

Blood on street as Trump exempts refined copper from the 50% he mentioned a while ago, with no immediate tariffs on copper or copper products

• LME copper prices have held their ground over $9,650/t despite a major unwinding in COMEX positioning last night.
• COMEX futures fell 20% after Trump announced decision to exclude copper cathodes from new Section 232 tariffs.
• The move will have left a number of US-based Commodity Trading funds long of physical metal at higher levels.
• There was relatively little trading of this metal within the US so much of the loss will likely be on the cost of import and storage.
• The 50% tariff will apply to value-added semi-finished products including pipes, wires, rods, sheets and tubes, and to copper-intensive products including pipe fittings, cables, connectors and electrical components.
• Copper cathodes, anodes, ores, concentrates and mattes, anodes are not subject to the tariff. This makes much more sense from a US perspective.
• The DoC ‘Department of Commerce’ is recommending the tariffs start with 15% in 2027, 30% in 2028 and 50% thereafter.
• The DoC will produce an update on US copper markets by the end-June 2026 for Trump and the administration.
• Codelco supported the decision, stating that Chile will continue ‘supplying that market normally.’
• August 1^st had been designated as the start of US copper tariffs on imported metal, with traders rushing to ship metal into COMEX warehouses before then.
• This pushed refined copper imports to 542kt between March and May, 60% of 2024’s annual imports. (Reuters)
• CME inventories closed in on 2018 highs of 223kt, doubling since March.
• However, after last night’s White House announcement, this is rapidly unwinding.
• The Trump administration was lobbied by the International Copper Association who argued that the US did not have sufficient capacity to replace copper imports.

Copper Smelting and refining: China has been quietly building substantial capacity in the smelting and refining of copper concentrates.

• This has led to an excess of capacity and negative Tc/Rcs ‘Treatment and Refining charges’ which is putting non-Chinese smelters out of business.
• Despite negative Tc/Rc rates we believe Chinese smelters still make some money by buying the copper they refine at discounted rates due to high export costs out of China and on by-product sales.
• The Pentagon might also need to guarantee minimum offtake prices to ensure the development of new copper smelting and refining capacity to offset the international pull of negative Chinese Tc/Rc rates
• The US to LME arbritrage has collapsed to $58/t from $3,000/t earlier this week, a move which will carry out some CTAs.
• The cost of exporting physical copper out of the US means much of the built-up inventory will likely stay where it is, but refined imports into the US will likely fall for a while.

Conclusion: The sharp rally in COMEX futures over 2025 was reflective of effective front-running of new tariffs from the Trump administration. These tariffs have now been rolled back, triggering a sharp unwinding of positioning, in both physical and paper markets. There has been limited changes to demand this year, with several supply disruptions. The LME price remains the most relevant to global copper miners and has held its higher levels, despite weaker Chinese PMIs and the US-based sell-off overnight. The copper market remains tight and long-term supply deficits are expected.

Gold ($3,310/oz) under pressure as dollar picks up following series of US trade deals

• Gold prices dipped below $3,300/oz yesterday and have since pared losses marginally.
• The dollar has strengthened against a basket of currencies, weighing on gold as it edges up to May levels.
• Signs of slowing Chinese gold imports from Hong Kong are also weighing on prices.
• Gold has benefited from three primary tailwinds this year:
  • Weaker US dollar
  • Amplified geopolitical uncertainty amid Trump-driven trade wars and escalation in the Middle East
  • Sustained Central Bank buying.
• However, 2024’s 37% rally in gold prices was driven by Central Bank buying predominantly, with the dollar index rallying 5.8%.
• In short, gold’s rally since $1,630/oz lows in 2022 has been powered by a wider theme of foreign reserve diversification from Central Bank bodies in the wake of the Russian invasion of Ukraine.
• We expect this theme to continue, amid the weaponization of the global monetary system, persistent China-US geopolitical tensions and concerns over fiscal profligacy from G7 nations.

Economics

US – The Fed kept rates unchanged, in line with expectations, at 4.25-4.5% while adding that it may keep rates steady at least through September.

• Reluctance do signal a rate cut in September was considered as hawkish by the markets.
• The decision went through 9-2 (one of FOMC members was absent for the vote) with two members Michelle Bowman and Christopher Waller dissented with the decision arguing for a 25bp rate cut.
• The fed highlighted that uncertainty remained over the effects of the tariff policy on inflation.

Nations are rushing to agree a deal with the US ahead of the 1 August deadline.

• Canada and Mexico were reported to have been in intense talks with Trump administration.
• The administration stressed that there will be no extension of the deadline.
• “The August first deadline is the August first deadline — It stands strong and will not be extended. A big day for America!!!” the president posted on his Truth Social platform.

The US signed a trade deal with South Korea that will see 15% imports imposed.

• Additionally, South Korea would invest $350bn into the US and committed to buy US$100bn of US energy.
• South Korea will “give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President”, Donald Trump said.

President Trump announced a 25% import tariff on imports from India but later added that negotiations were still ongoing.

• Trump also criticised India for purchases of Russian military equipment and energy.

China – Business activity slowed in July with manufacturing sector contracting more than expected, on official PMI data.

• The NBS argued that high temperatures, heavy rain, and flooding in some regions caused disruptions in the manufacturing sector.
• That was the lowest Manufacturing PMI reading in three months.
• Ongoing trade disputes with the US as well as weak consumer sentiment and property market remain a drag.
• Cargo throughput at the nation’s ports last week was the lowest in almost three months in a sign of a slowing trade.
• Manufacturing PMI (Jul/Jun/Est): 49.3/49.7/49.7
• Services PMI (Jul/Jun/Est): 50.1/50.5/50.2
• Composite PMI (Jul/Jun/Est): 50.2/50.7/NA

Japan – Bank of Japan held interest rates but suggested a rate rise will come

Currencies

US$1.1442/eur vs 1.1556/eur previous. Yen 149.48/$ vs 148.08/$. SAr 18.003/$ vs 17.851/$. $1.325/gbp vs $1.336/gbp. 0.646/aud vs 0.650/aud. CNY 7.193/$ vs 7.177/$

Dollar Index 99.72 vs 98.78 previous

Precious metals:         

Gold US$3,302/oz vs US$3,329/oz previous

Gold ETFs 91.6moz vs 91.7moz previous

Platinum US$1,314/oz vs US$1,388/oz previous

Palladium US$1,222/oz vs US$1,255/oz previous

Silver US$37.0/oz vs US$38.1/oz previous

Rhodium US$7,475/oz vs US$7,050/oz previous

Base metals:   

Copper US$9,616/t vs US$9,767/t previous

Aluminium US$2,584/t vs US$2,612/t previous

Nickel US$14,935/t vs US$15,195/t previous

Zinc US$2,766/t vs US$2,796/t previous

Lead US$1,973/t vs US$2,011/t previous

Tin US$32,715/t vs US$33,930/t previous

Energy:

Oil US$73.2/bbl vs US$72.8/bbl previous

• Crude oil prices moved higher after President Trump threatened to penalise India for importing Russian crude and products.
• The EIA estimated w/w US inventory builds of 7.7mb to crude and 3.6mb to diesel, offset by a draw of 2.7mb to gasoline stocks, as refinery utilisation fell 0.1% w/w to 95.4% on domestic output of 13.3mb/d.
• EU natural gas storage levels increased 1.9% w/w to 67.6% full and remain on track to meet the binding target of 90% for gas storage, but with flexibility in meeting it anytime between 1 October and 1 December, replacing the prior hard deadline of 1 November.
• New Zealand’s coalition government has approved a Bill to formally reverse the 2018 law passed by the prior Ardern government that limited new petroleum exploration permits to onshore Taranaki.

Natural Gas €34.1/MWh vs €34.6/MWh previous

Uranium Futures $71.1/lb vs $71.2/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Dalian) US$109.1/t vs US$111.2/t

Chinese steel rebar 25mm US$470.9/t vs US$470.4/t

HCC FOB Australia US$177.0/t vs US$177.0/t

Thermal coal swap Australia FOB US$117.0/t vs US$118.0/t

Other:  

Cobalt LME 3m US$33,335/t vs US$33,335/t

NdPr Rare Earth Oxide (China) US$73,893/t vs US$72,514/t

Lithium carbonate 99% (China) US$9,579/t vs US$9,878/t

China Spodumene Li2O 6%min CIF US$815/t vs US$840/t

Ferro-Manganese European Mn78% min US$1,005/t vs US$1,005/t

China Tungsten APT 88.5% FOB US$443/mtu vs US$443/mtu

China Graphite Flake -194 FOB US$410/t vs US$410/t

Europe Vanadium Pentoxide 98% US$4.9/lb vs US$4.9/lb

Europe Ferro-Vanadium 80% US$23.7/kg vs US$23.7/kg

China Ilmenite Concentrate TiO2 US$282/t vs US$282/t

China Rutile Concentrate 95% TiO2 US$1,091/t vs US$1,094/t

Spot CO2 Emissions EUA Price US$65.1/t vs US$65.1/t

Brazil Potash CFR Granular Spot US$362.5/t vs US$362.5/t

Germanium China 99.99% US$3,025.0/kg vs US$3,025.0/kg

China Gallium 99.99% US$395.0/kg vs US$395.0/kg

EV & battery news

Iron-air battery: Ore Energy connects first iron-air battery storage system to grid

• Dutch startup, Ore Energy has connected its pilot iron-air battery to the grid at TU Delft’s Green Village – the world’s first operational system of this kind.
• The pilot system is also the first multi-day long-duration energy storage (LDES) to be entirely designed, built, and installed in the European Union using materials that can be sourced exclusively within Europe.
• The battery can store energy for up to 100 hours using the iron, air and water chemistry – in comparison, lithium-ion batteries peak around 4-8 hours
• Ore Energy’s full-scale system will use modular 40-foot containers, each delivering up to 4.2 MWh of multi-day energy storage, optimised for low-cost, low-footprint deployment.
• Iron-air cells rely on abundant EU-sourced materials and could be seven to ten times cheaper than lithium-ion for long-duration storage.

 Company news

80 Mile Plc* (80M LN) – 0.26p, Mkt cap £10m – Government approval for transfer of 100% ownership of the Disko-Nuussuaq Ni-Cu-Co-PGE-Au project in West Greenland.

(80 Mile now holds 100% of the Disko project, up from 51% previously)

• 80 Mile PLC reports the receipt of approval for the indirect transfer of ownership of Nikkeli Greenland A/S which holds Disko-Nuussuaq Ni-Cu-Co-PGE-Au project licenses.
• The transfer confirms the raising of 80 Mile PLC’s stake in the Disko project to 100% from 49%.
• Management have always been keen on the prospectivity of the licenses brining in KoBold Metals to pay for substantial exploration and data collection across the Disco license area.
• KoBold Metals are now focussed on copper in Zambia despite >£12m of expenditure on various activities that continued to demonstrate the potential of Disco.
• 80 Mile PLC also Inherits >£1.4m of exploration camp and various equipment as part of the handover.
• The licences are in credit with the company currently commitment free until next year by which time it hopes to have a mining orientated corporate as its new partner for drill testing the potentially super giant project.

*SP Angel acts as nomad and broker to 80 Mile Plc (formerly Bluejay Mining). The analyst has visited Dundas in Greenland.

Anglo American (AAL LN) 2,133p, Mkt Cap £26.3bn – Copper and iron-ore dominate H1 financial performance

• Anglo American’s interim report describes the contribution of its copper and iron ore businesses in what the company describes as a “strong operational and cost performance”.
• Underlying EBITDA of ~US$3.0bn (H1 2024 – ~US$3.8bn) is dominated by the US$1.8bn contribution of the copper operations (H1 2024 – US$2.0bn) with iron-ore delivering a further US$1.4bn in line with a similar performance in H1 2024.
• The company attributes the lower EBITDA to “challenging rough diamond trading conditions at De Beers, alongside lower sales at Copper Chile, driven by the lower production” with the lower copper sales reported to have a US$0.2bn negative impact on EBITDA.
• Anglo American also confirms that it remains committed to the delivery of US$1.8bn of cost savings with “$1.3 billion realised by the end of June 2025”.
• Net debt increased marginally from 1st January level of US$10.6bn to ~US$10.8bn.
• Commenting on the continuing restructuring of the business CEO, Duncan Wanblad, welcomed the May demerger of the platinum business and said that “we expect to monetise our residual 19.9% interest … [in Valterra] … currently valued at $2.6 billion – responsibly over time”.
• He also said that Anglo American is “continuing to progress the agreed steelmaking coal and nickel business sale transactions … strengthening of our balance sheet flexibility upon receipt of proceeds from these transactions”.
• Mr. Wanblad confirmed that “work to separate De Beers is well under way, with action taken to strengthen cash flow as we position De Beers for long-term success and value realisation”.
• Conclusion: As simplification of the business continues, EBITDA is dominated by Anglo American’s copper and iron ore businesses and the benefit of its cost saving programme which delivered US$1.3bn in the six months to 30^th June.

Agnico Eagle (AEM US) $123 , Mkt Cap $62bn – Cost control supports earnings beat despite lower production from main operations

• Canadian gold producer Agnico Eagle reported 2Q25 results.
• Agnico produced 866koz at $933/oz cash costs and AISC of $1,289/oz.
• Production lower qoq on longer-than expected caribou migration affected Meadowbank, lower grade and throughput at Fosterville and lower throughput at Canadian Malartic.
• Higher grades supported output at Macassa and LaRonde.
• EBITDA reported at $2bn vs $1.1bn same period last year.
• EPS reported at $2.13/share.
• Free cash flow reported at $1.3bn vs $557m.
• Cash position increased by $419m to $1.6bn.
• San Nicolas (53mt at 1.12% Cu, 1.48% Zn and 0.4g/t Au) feasibility study late 2025 with ongoing drilling.
• Full year guidance retained and cash costs below mid-point guidance despite higher royalty impacts.
  • 3.3-3.5moz at AISC of $1,250-1,300/oz.
  • CAPEX at $1.75-1.95bn.
  • Exploration budget at $290-310m.

Celsius Resources (CLA LN) 0.33p, Mkt Cap £10.2m – First copper production from the MCB project, Philippines by 2027

• Celsius Resources’ report for the 3 months to 30^th June headlines the start of its updated feasibility study and front-end-engineering design (FEED) study for the Maalinao-Caigutan-Biyog (MCB)Copper-Gold Project located on Luzon approximately 320km north of Manila.
• Following the US$76.4m bridging loan provided by the Philippine’s sovereign wealth fund manager, Maharlika Investment Corporation, the report confirms the intention to deliver first copper “by 2027”.
• Activities aimed at delivering this outcome include a programme of geotechnical and hydrogeological drilling to aid in optimisation of “the underground mine plan, process plant layout, and surface infrastructure design”.
• Work is also accelerating on skills training for potential workforce and community projects with the host community.
• Elsewhere, baseline soil and water sampling programmes are underway at the Botilao copper/gold project and Celsius Resources confirms that it is in early-stage discussions with a ”strategic partner/s concerning the disposal of the Company’s 95% interest in the Opuwo Cobalt Project in Namibia”.
• An Environmental Impact Statement has been submitted to the authorities in support of “the application for the Declaration of Mining Project Feasibility (“DMPF”) for the Sagay Copper-Gold Project (“Sagay Project”) in the Negros Islands”.
• The company confirms a 30 June cash balance of ~A$4.5m.

Conclusion: Celsius Resources is targeting copper production from its MCB project on Luzon by 2027.

Endeavour Mining (EDV LN) 2,306p, Mkt Cap £4.1bn – Ramping up shareholder returns amid strong gold price environment

• West African gold producer Endeavour has produced 306koz over the quarter to 30^th June 2025, vs 341koz 1Q25 and 251koz same period last year.
• Production lightly lower qoq on lower grades in line with mine sequencing, offset by increased output from Lafigue.
• Cash costs reported at $1,220/oz ($929/oz prior quarter) and AISC reported at $1,458/oz ($1,129/oz prior quarter).
• Costs impacted by higher royalty impacts and higher sustaining capital requirements at Hounde, Ity and Lafigue.
• Realised gold price reported at $3,150/oz vs $2,783/oz prior quarter.
• EBITDA reported at $596m vs $540m prior quarter.
• Operating cash flow:  $252m, vs $494m.
• Free cash flow: at $104m vs $409m.
• EPS: $0.74/share vs $0.90/share
• Dividends of $140m paid over the quarter, with $28m of buybacks.
• Net debt of $469m, up from $378m prior quarter.
• 2025 Guidance retained:
  • 1,110-1,260koz Au at AISC of $1,150-1,350/oz

Conclusion: Guidance maintained as strong margins persist despite higher royalty impacts. Shareholder returns continue, with $168m paid out in dividends and buybacks over the quarter. Assafou project DFS on schedule for completion early-2026 with a resource update due later this year.

Jupiter Mines (JMS AU) A$0.21 , Mkt Cap A$403m – Weaker manganese weigh as Exxaro secures 50.1% of Tshipi

• South African manganese producer Jupiter reports quarterly results.
• Company produced 788kt manganese over the quarter, down 8%qoq, whilst full year production reported at 3.6mt.
• Total mined volume of 3.58m, up rom 3.53m quarter prior.
• Graded ore mining fell 30% on rainwater in pit, whilst FY25 mining volumes from the operation hit record highs.
• Unit costs reported at US$2.36/dmtu FOB, upm 15%qoq.
• Manganese prices fell 4%qoq to US$3.86/dmtu CIF, climbing slightly in July to $4/dmtu.
• FOB price achieved over the quarter at US$3.28/dmtu.
• EBITDA reported at A$41m, down 8%qoq.
• NPAT reported at A$26m.
• Cash position down 1% to A$129m.
• Jupiter holds 49.9% in Tshipi, with Exxarro buying the remaining 50.1% from Ntsimbintle and OM Holdings over the quarter.

Kore Potash* (KP2 LN) 2.3p, Mkt Cap £112m – Operations update highlights progress with project funding discussions and Early Works with EPC contractor

BUY – TP (Under Review)

• The Company released a quarterly operations update for the Kola Potash Project in Republic of Congo.
• Funding wise, the team signed non-binding Term Sheets for Kola Project funding involving US$2.2bn senior secured loan and royalty finance facilities in early June.
• Under the agreement, OWI-RAMS, an investment firm headquartered in Switzerland, indicated its intention to arrange and provide a funding package for the project.
• Discussions are ongoing with a view to finalise binding terms for the eventual Financial Close.
• Project development wise, the Company is working with PowerChina regarding Early Works that are required to be completed ahead of Financial Close and Full Notice to Proceed.
• A marine surveying company for the sea drilling in the jetty construction area has been identified.
• Works to start in October/November due to seasonal constraints.
• UK based engineering firm has been selected for shaft and underground mining FEED with works to be carried through 2H25.
• A request for proposal was sent out to several specialists regarding the Owners Project Team with negotiations ongoing.
• The team launched the update of the 2018 ESIA that was previously approved by the government for 25y given slight changes in the final EPC contract compared to previous design.
• Additionally, the Company started an update of the existing Relocation Action Plan with the previous version only valid for three years.
• Closing cash stood at US$3.5m, down from $10.2m 1Q25; Company is debt free.
• The Company incurred ~$0.8m in negative CFO and recorded in $6.1m capitalised costs relating to Early Works payment commitments.
• The team is not expecting similar levels of payments in the immediate future but highlighted that further funding will be required to meet binding legal conditions of the financial proposal.

Conclusion: The team is engaging with project funding and EPC partners advancing the Kola Potash Project towards binding Financial Close and on course for Full Notice to Proceed. PowerChina, an EPC partner, is progressing with Early Works that were previously agreed to allow for launching the FNTP and start of construction works. Early Works include geotechnical work around the proposed shaft and marine works locations, final shaft and underground mining FEED, beneficiation tests on available core to confirm final MOP product specs. FNTP is subject to legally binding Financial Close and once issued it triggers a nearly 4y construction period.

*SP Angel acts as Nomad and Broker to Kore Potash

Lindian Resources (LIN AU) A$0.1, Mkt Cap A$118m – Quarterly update

• The Company released a quarterly operations update for the Kangankunde Rare Earth Project in Malawi.
• Design and construct, mining, and power infrastructure contracts progressed, with preferred tenders shortlisted and awards expected in 2H25.
• 5km access road development is progressing ahead of schedule and on track for completion early 3Q25.
• Discussions to advance the Mining development Agreement (MDA) are ongoing with the government.
• MDA is expected to be finalised 3Q25.
• Project funding options are being considered including a US$30m non binding senior secured loan term sheet from Ecobank Malawi, indicative bond terms from a leading European investment bank and a number of offtake agreement proposals.
• The team hosted a delegation of representatives from the Ministry of Mines, the IMF, and the UN Development Programme in May.
• The Company is debt free and had A$3.5m in cash as of 4QFY25, down from A$4.2m in 3QFY25.
• The Company raised A$1.2m from the exercise of 10m unlisted options at A$0.12 and received ~A$0.5m R&D tax incentive refund.
• FCF amounted to -A$1.9m in 4QFY25 and -A$11.0m including A$4.9m in capitalised spend in FY25

Panther Metals (PALM LN) 93p , Mkt Cap £5.0m – Encouraging early results from sampling the Winston Lake tailings, Ontario

• Panther Metals reports assay results from its sampling programme on tailings generated from the historic Winston Lake gold mine in Ontario.
• The mine, which operated between 1988-98, produced “approximately 3.3 million tonnes of ore and yielding zinc, copper, silver, and gold” and Panther Metals believes that “a significant quantity of valuable material remains in the tailing storage facility”.
• The company says that analysis of 14 samples has yielded assays of up to 0.814g/t gold, 21.9g/t silver, 2.20% zinc, 0.2% copper as well as 496ppm cobalt and 122ppm gallium.
• CEO, Darren Hazelwood, said that the “assay results confirm our best hopes for the considerable value potential of precious metals and critical minerals stored within the Winston tailings pond”.
• He acknowledged that “It is very early in this exciting journey and we now have to do the necessary technical studies to prove up our vision. That said, should the economics of the tailings project be as robust as we currently envisage, we would ideally seek debt finance, rather than use the equity markets, in order to protect our shareholder’s value and avoid dilution as much as possible”.
• Mr. Hazelwood confirmed that “We are now aggressively pursuing this opportunity… have already engaged with internationally renowned mineral processing experts and had conversations with our drilling contractor to plan a comprehensive metallurgical sampling programme”.

Serabi Gold (SRB LN) 183p, Mkt Cap £139m – Palito and São Chico mineral reserve and resource updates

• Serabi Gold has released updated mineral reserve and resource estimates for its Palito and São Chico mines in Brazil.
• The estimates, prepared by NCL Ingeniería y Construcción SpA of Santiago de Chile, “in accordance with the standard of CIM and Canadian National Instrument 43-101” are dated 1^st April 2025 for the Palito mine and 31^st July 2023” for São Chico.
• At a cut-off grade of 2.92g/t gold, the Palito mine hosts a ‘Measured & Indicated’ resource of 1.10mt at an average grade of 9.9g/t gold (350koz) plus an ‘Inferred’ resource of 0.68mt at an average grade of 7.4g/t gold (162koz).
• Sao Chico’s ‘Measured & Indicated’ resource is 151kt at an average grade of 7.9g/t gold (~38koz) plus an ‘Inferred’ resource of 8kt at a grade of 6.5g/t gold (1,700oz).
• Palito’s reserves, reported at a 3.98g/t cut-off, amount to a total of 147,000oz hosted in 645,900t of ore at an average grade of 7.1g/t gold.  Approximately 70% (103,800oz) of the gold is classified as ‘Proven’ (422,400t averaging 7.7g/t) with the balance (223,600t averaging 6.0g/t gold) is ‘Probable’.
• Reserves at São Chico total 15,600oz of gold hosted in 60,200t of ore at an average grade of 8.1g/t are reported at a 4.0g/t cut-off.  Around 80% (12.200oz) of the reserve is ‘Proven’ (46,100t at an average grade of 8.2g/t gold) with the balance classified as ‘Probable at an average grade of 7.7g/t gold.
• CEO, Mike Hodgson, said that the “updated Mineral Resource demonstrates Serabi’s ability to replenish resources on a consistent basis. We have regularly maintained our ability to replace production with new resources and in this instance, the combined Measured, Indicated and the Inferred resource categories have increased by 4% since 2023”.
• He explained that “Within this mineral resource inventory, we have reported a 2P Mineral Reserve of ~163koz, equating to over six years of reserve life at current extraction rates, excluding any future resource to reserve conversion”.
• Mr. Hodgson explained that São Chico has been “on care and maintenance since 2022 … [so that] … the 2023 estimated resources and reserves have simply been restated here, albeit these resources and reserves were calculated at a more conservative gold price and exchange rate”.
• He also commented that “In early 2025 we embarked on a $9m brownfield surface exploration drill programme spread across the Palito Complex and Coringa, approximately 50% of this budget will be used at Palito to test extensions of known orebodies”.
• “As this drill programme did not commence until March, this updated resource estimate does not include results from the exploration programme. We therefore look forward to an update in early 2026, when we do expect to incorporate results from our ‘aggressive’ brownfield programme”.

Conclusion: Serabi Gold’s latest MRE gives a six-year underground mining reserve life with a further update expected in early 2026 incorporating results from the current drilling campaign.

*An SP Angel analyst has visited the Serabi’s gold mining operations in Brazil

Sovereign Metals* (SVML LN) 34.4p, Mkt Cap £230m – Quarterly cash flow highlights strong cash position as Sovereign advances towards Kasiya rutile, graphite project BFS in Q4

(Sovereign currently holds 100% of the Kasiya project. Malawi has 10% free carry right. Rio Tinto holds 18.5% of Sovereign Metals)

• Sovereign Metals report their quarterly report to end-June.
• The company paid out:
  • Exploration & evaluation costs – A$7.2m and A$29m for the year-to-date, as the project continues to work towards the publication of a full Bankable Feasibility Study in Q3
  • Staff costs – A$0.7m and A$1.7m ytd
  • Interest received – A$0.4m and A$1.7m due to a lower cash balance following expenditure on drilling and metallurgical test work
  • Other – Business Development A$0.6m and A$1.8m ytd
  • In total, the Net cash from / (used in) operating activities fell to A$8.8m and A$33m ytd
  • Sovereign raised A$40m in the period and A$59m ytd by way of equity placement with institutional investors.
  • Cash and cash equivalents lifted to A$55m from A$26m

Conclusion:  The quarterly report collates the substantial work done by the Sovereign, Rio Tinto team on the Kasiya rutile and graphite project in Malawi.

The team have made substantial progress supported by positive results from recent geotechnical work, positive offtake discussions with Toho Titanium and the recently World Bank approved  US$350m grant for the 358MW Mpatamanga hydropower project in Malawi.

*SP Angel act as Nomad and broker to Sovereign Metals. An SP Angel analyst has visited the Kasiya mine site. We highly recommend the Malawi coffee beans sold in Lilongwe airport

URU Metals* (URU LN) 4.28p, Mkt cap £2.7m – Combination of data from the SpectremPlus™ airborne electromagnetic survey with gravity and magnetic surveys to better locate drill targets

• URU Metals confirmeds the high‑powered SpectremPlus™ airborne AEM ‘electromagnetic’ survey over the Zeb Nickel Project in South Africa has completed.
• The SEM survey has flown ~736 line‑km at 150 m traverse spacing using Spectrem’s converted DC‑3 turboprop platform equipped with their SpectremPlus™ system.
• This is capable of imaging conductive bodies to depths in excess of 700m and should be well suited for imaging Zeb Nickel mineralised structures.
• The idea is to compare the survey images with the known structures and to identify new structures for future drilling.
• Geofocus will integrate the geological, gravity, magnetic, and EM datasets into a unified 3D geophysical block model.
• The team will process the data into a series of 3‑D inversion models along with their geophysical interpretation by end-August.
• Management hope to release the results along with an updated technical programme and drill‑targets near end-Q3.

Conclusion: Ideally the combined airborne survey results will highlight the potential for further significantly higher-grade Ni-Cu-PGE mineralisation down-dip of the current known mineralisation.

The results will hopefully give greater geological credence to the theory that an intrusion of mineralised igneous rock might link the Uitloop I and II bodies and may, potentially provide a major mass of mineralised material for potential bulk mining.

*SP Angel acts as Nomad and Broker to URU Metals

LSE Group Starmine awards for 2025 / 2024 commodity forecasting:

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Precious Metals forecasting in LSEG Annual Starmine Award for Reuters Polls for Q1 2025

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

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

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

Arthur Parish – Arthur.Parish@spangel.co.uk – 0203 470 0476

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

George Krokos – george.krokos@spangel.co.uk – 0203 470 0486

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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