SP Angel Morning View -Today’s Market View, Thursday 14th August 2025

Copper holds higher ground as Chile sees supply constraints and Freeport smelter delayed

MiFID II exempt information – see disclaimer below

Amaroq (AMRQ LN) – Quarterly update

Antofagasta (ANTO LN) – Improved margins and strong cost control prompt higher dividend

Bezant Resources (BZT LN) – Plans to acquire process plant for the Hope & Gorob project in Namibia

Capital Limited (CAPD LN) – Expecting stronger second half on Reko Diq activity

Cornish Metals* (CUSN LN) – Interim report summarises progress at South Crofty

Equinox Gold (EQX US) – Greenstone ramp up continues as Calibre assets come into portfolio

Hudbay Minerals (HBM US) – Strategic investment from Mitsubishi for Copper World JV

Orezone (ORE CN) – Grid power limitations lift costs whilst hard rock expansion on budget and time

South 32 (S32 LN) – Mozal impairment and care and maintenance plan

Strategic Minerals* (SML LN) – Progress report from the flagship Redmoor project, Cornwall

WA1 Resources (WA1 AU) – Trading Halt, Mkt cap A$1.3bn – Trading Halt

Copper ($9,774/t) holds higher ground as Chile sees supply constraints and Freeport smelter delayed

• Copper prices are holding just off $10,000/t as the market focuses on supply side disruptions.
• Most of Q2 was focused on Trump’s Section 232 impact on the copper market, seeing prices widen on COMEX before slumping sharply.
• Now the market seems to be increasingly focused on fundamentals, with supply side disruptions.
• Codelco’s El Teniente coming offline lost 20,000-30,000t of copper to the market.
• Chile’s copper commission Cochilco has reiterated its $9,500/t ($4.3/lb) price projection for the next two years.
• They expect demand to rise 2.3% in 2025 and 2.4% in 2026.
• Smelting capacity growth in Asia expected to continue to rise above mining expansion pace.
• Mine production expected to reach 22.7mt, up 0.5%yoy.
• Supply growth seen increasing 3.2%yoy to 22.43%, driven by Mongolia, Canada and Russia.
• Elsewhere, Freeport is ramping up copper exports from Indonesia following delays to its major smelter. (Bloomberg.

Lithium refining – Covalent Lithium run by Wesfarmers and SQM produced first battery grade hydroxide at the Kwinana Lithium Refinery, WA.

• The target now is to ramp up operations to 50ktpa run rate over the next 18 months.

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

The News Forum – The Buck Stops Here: https://www.thenewsforum.ca/series/thebuckstopshere

Economics

US Department of Energy intends to offer US$1bn “to advance and scale mining, processing, and manufacturing technologies across key stages of the critical minerals and materials supply chains”.

• $500m will be provided to expand US critical minerals and materials processing and battery manufacturing and recycling.
• $135m to support domestic supply chain for rare earth elements including methods to refine and recover the minerals from mining tailings.
• $250m in financial support for plants, including coal facilities that have potential to produce critical minerals as by products.
• $50m to support processes in RE magnet supply chain.

Treasury Secretary urged the Fed to cut rates arguing that the rate should be at least 1.5pp lower.

• “I think we could go into a series of rate cuts here, starting with a 50 basis-point rate cut in September,” Bessent said.
• That would imply a more aggressive easing than currently priced in by markets.
• Interest rate futures reflect bets on the Fed lowering the benchmark to 3% in September/October next year from current 4.25-4.50%.

UK – 2Q25 growth tops estimates led by higher government spending and a build up in inventories compensating for a slowdown in consumer spending.

• Business investment also dropped sharply during the quarter.
• The sentiment was hit by higher government taxes as well as Trump tariffs.
• Exports to the US dropped to the lowest level since early 2022.
• Businesses and householders appear reluctant to invest and spend amid concerns over a potential tax increase in the autumn budget.
• Chancellor called the prospect of further tax hikes as speculation saying that the budget would focus on improving UK weak productivity.
• GDP (%qoq, Curr/Prev/Est): 0.3/0.7/0.1
• GDP (%yoy, Curr/Prev/Est): 1.2/1.3/1.0

Russia/US – President Trump may offer President Putin access to rare earth mining projects in Alaska at the coming summit this Friday.

• In addition, Trump may offer mitigation of the sanctions the US imposed on the Russia aviation industry.

London – Kensington was blissfully quiet last night following the impounding of 72 noisy supercars by the police for a variety of infringements.

• While we expect many of these vehicles to be revving their engines again over the next few weeks they will at least be insured, taxed and driven by their registered owners
• It would be good to see a similar crackdown on shoplifting

Fishing – Doesn’t the press have anything better to focus on than David Lammy’s lack of a licence for his fishing rod

• Lammy was fishing with JD Vance working to cement diplomatic relations with our closest ally – maybe next time he should use a drone or simply bomb the fish?
• While we expect MPs to set a good example in all things maybe the press can forgive this particular oversight.
• Am sure no fish were actually harmed during the expedition.

Currencies

US$1.1682/eur vs 1.1706/eur previous. Yen 146.39/$ vs 147.51/$. SAr 17.572/$ vs 17.545/$. $1.358/gbp vs $1.354/gbp. 0.654/aud vs 0.655/aud. CNY 7.173/$ vs 7.176/$

Dollar Index 97.85 vs 97.80 previous

Precious metals:

Gold US$3,353/oz vs US$3,357/oz previous

Gold ETFs 92.5moz vs 92.5moz previous

Platinum US$1,341/oz vs US$1,350/oz previous

Palladium US$1,139/oz vs US$1,136/oz previous

Silver US$38.4/oz vs US$38.4/oz previous

Rhodium US$7,400/oz vs US$7,150/oz previous

Base metals:   

Copper US$9,764/t vs US$9,846/t previous

Aluminium US$2,614/t vs US$2,632/t previous

Nickel US$15,150/t vs US$15,320/t previous

Zinc US$2,817/t vs US$2,841/t previous

Lead US$1,982/t vs US$2,013/t previous

Tin US$33,620/t vs US$33,835/t previous

Energy:           

Oil US$66.0/bbl vs US$66.0/bbl previous

• Crude prices edged lower as the EIA estimated w/w US inventory builds of 3.0mb to crude and 0.7mb to distillate, partially offset by a draw of 0.8mb to gasoline stocks, as refinery utilisation at 95.4% on domestic output of 13.3mb/d.
• The IEA’s August oil market report marginally revised down global oil demand growth forecasts to 0.7mb/d in 2025 and 2026 to reach 104.4mb/d next year, which is more than offset by higher m/m forecast global supply growth of 2.5mb/d in 2025 and by 1.9mb/d in 2026 due to OPEC+ increases leading to a forecast oil inventory surplus of ~3mb/d next year.
• The EIA’s August STEO report now expect global oil inventory builds will average more than 2mb/d in 4Q25 and 1Q26, up 0.8mb/d m/m, with US crude oil production averaging 13.4mb/d in 2025 and 13.3mb/d in 2026. The EIA also expects higher US natural gas prices reflecting relatively flat natural gas production amid an increase in LNG exports.
• OPEC’s August monthly oil report reiterated oil demand y/y growth forecast of 1.3mb/d in 2025 and increased 2026 growth by 0.1mb/d m/m to 1.4mb/d, with global oil supply growth unchanged at 0.8mb/d in 2025 and 0.7mb/d in 2026.
• European energy prices remain stable as EU natural gas storage levels increased 3% w/w to 72.5% full (vs 80% 5-Yr average) with aggregate inventory at 823TWh and all countries now above 60% full.
• Centrica and Bridgepoint have jointly (50:50) acquired Europe’s largest LNG regasification terminal located at the Isle of Grain from National Grid for an enterprise value of £1.5bn, including £1.1bn of debt, which is expected to generate £200m EBITDA and £40m cash distributions on average per annum for 2026-2028 to deliver equity IRRs above 14%.

Natural Gas €32.7/MWh vs €32.5/MWh previous

Uranium Futures $72.5/lb vs $72.3/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Dalian) US$111.1/t vs US$112.6/t

Chinese steel rebar 25mm US$481.5/t vs US$480.5/t

HCC FOB Australia US$190.8/t vs US$191.5/t

Thermal coal swap Australia FOB US$111.5/t vs US$111.8/t

Other:  

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

NdPr Rare Earth Oxide (China) US$74,310/t vs US$74,063/t

Lithium carbonate 99% (China) US$11,363/t vs US$11,078/t

China Spodumene Li2O 6%min CIF US$905/t vs US$880/t

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

China Tungsten APT 88.5% FOB US$473/mtu vs US$473/mtu

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

Europe Vanadium Pentoxide 98% US$5.1/lb vs US$5.1/lb

Europe Ferro-Vanadium 80% US$23.5/kg vs US$23.5/kg

China Ilmenite Concentrate TiO2 US$275/t vs US$275/t

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

Norway sees record EV sales share in July

• 9,291 EVs were registered in Norway in July, accounting for a record market share of 97.2%.
• PHEVs accounted for a further 1.7% of July sales, meaning petrol and diesel vehicles were only around 1.2% of sales.
• Norway has seen EVs account for 94.1% of new registrations in H1 2025.

Tesla applies to supply electricity to UK households

• Tesla has applied to the UK energy regulator, Ofgem, for an electricity supply licence.
• If granted the licence, Tesla would be able to provide electricity to domestic and business premises in the UK.
• The move comes at a time when Tesla’s electric car sales across Europe have been falling – sales of Teslas in the UK more than halved last month, and are down almost 60% yoy.
• It is speculated that the new Tesla business will focus on supplying electricity to consumers who already own Tesla products.
• Tesla already has a successful electricity supplier in Texas, where it launched household supply deals in 2022.
• Tesla owners can charge their cars cheaply and the company pays them for selling surplus solar power or electricity stored in its home batteries back to the grid.

Company news

Amaroq (AMRQ LN) 71p, Mkt Cap £338m – Quarterly update

• The Company released quarterly update highlighting ramping up of operations at the Nalunaq Gold Mine, Greenland.
• First shipment of gold dore (808oz) and maiden revenues booked during the quarter.
• Construction and the installation of the flotation plant (Phase 2) has been decided to bring forward into 3Q/4Q (from previous 4Q).
• As a result, processing facilities will be temporarily suspended to complete necessary works before winter.
• Mining operations to continue as normal.
• 2025 production guidance revised to 5koz for 2025 as a result of additional construction and commissioning activities.
• Plant throughput averaged ~145tpd on a single shift in July 2025.
• Plant capacity target of 300tpd remains the target by YE25.
• Revenue C$3.4m in 6m to June 2025.
• Net Loss -C$10.0m
• CFO -C$13.4m
• Capex -C$37.9m
• Liquidity C$75.0m as of quarter end including C86.0m cash, C$8.9m in undrawn revolving credit facility less C$19.8m in trade payables; outstanding debt C$40.4.
• The Company closed an oversubscribed placing of £45m in June to progress development of its mining assets in Greenland.
• 2025 exploration programme is underway, one of the largest in the group history, with 3,500 at Nalunaq, ~5,000m at Nanoq for a potential maiden MRE, and multiple satellite targets.
• Stock is trading down 5% this morning.

Antofagasta (ANTO LN) 2,122p, Mkt Cap £20.8bn – Improved margins and strong cost control prompt higher dividend

• Announcing results for the six months to 30th June 2025 that CEO Ivan Arriagada described as “robust” , Antofagasta reports a 29% rise in revenue to US$3.8bn (H1 2024 – US$3.0bn) and a 60% increase in EBITDA to US$2.2bn (H1 2024 – US$1.4bn).
• Improved revenues reflect strong copper prices while the increased EBITDA benefits from “operating discipline, with higher copper production and materially lower costs”.
• Costs before by-product credits were a12% lower at US$2.32/lb (H1 2024 – US$2.65/lb).
• Antofagasta says that its “EBITDA margin increased 25% by 12 percentage points to 58.8% in H1 2025, placing the Group at the top end of global pure-play copper producers”.
• The company confirms that its “copper growth programme remains on track, with full construction of the Centinela Second Concentrator now into its second year of activities. Initial groundworks have commenced at the Los Pelambres desalination plant expansion, and activities continue to advance along the route of the new concentrate pipeline”.
• As reported at time the Q2 operating results were issued in July, the company is maintaining its full year production and cost guidance at 660-700,000t of copper with net cost guidance also intact in the range of US$1.45-1.65/lb.
• Increased H1 copper production of 314,900t is an “11% year-on-year increase … mainly driven by higher output from the Group’s two concentrators (Centinela Concentrates and Los Pelambres)”.
• Reflecting its improved margins, the company has announced an interim dividend of 16.6¢/share (H1 2024 -7.9¢/share).

Conclusion: Antofagasta has reported strong financial results for H1 2025 with improved margins helping support a more than doubling of the interim dividend.  Full year production and cost guidance is maintained.

Bezant Resources (BZT LN) 0.05p, Mkt cap £6.1m – Plans to acquire process plant for the Hope & Gorob project in Namibia

• Bezant Resources reports that it has secured “a conditional share purchase agreement to acquire a 90% shareholding in Namib Lead and Zinc Mining … [which] … owns an ore processing plant”.
• The plant “once modified … is proposed … process copper – gold run of mine … ore from Hope and Gorob which has been pre-concentrated on-site using dry ore sorting technology”.
• The company says that using this plant will advance production at Hope and Gorob “by at least 2 years, whilst eliminating of the significant capital cost required to build a processing plant of this type”.
• Bezant Resources will pay US$2.5m “on completion together with royalty payments based on processing plant throughput and copper and other ore sales”.
• Executive Chairman, Colin Bird, said that the “plant has undergone significant test-work and is fit for purpose, notwithstanding the fact that the Company intends to upgrade certain aspects of the plant flow sheet to further improve efficiency and productivity”.
• He described the planned acquisition as “a pivotal move in developing our Hope and Gorob resource”.

Capital Limited (CAPD LN) 91p, Mkt Cap £179m – Expecting stronger second half on Reko Diq activity

• Drilling and ancillary services company Capital reports financial results for 1H25.
• Revenue down 6%yoy to $159m.
• EBITDA down 25% to $32m, operating profit down 35%.
• Reported an investment gain of $19.3m.
• NPAT down 82% to $2m.
• EPS at 7.6c/share.
• CAPEX over the period down 54% to $20m.
• Net debt down 36% to $55m, with $50m of investments.
• 2025 revenue guidance:
  • $320-340 with margins expected to improve in 2H25.
• Company notes strong momentum at Reko Diq, and increased contributions from the MSALABS division.
• Dividend of 1.3c/share announced.

Conclusion: Capital has been through a period of recalibration following the end of its contract at Sukari with Centamin. Focus shifts to Pakistan with Barrick’s Reko Diq project, which is set to drive mining contract revenue. The team is rolling out its MSALABS services and notes positive momentum with Nevada Gold Mines. Positive performance from Capital’s investment portfolio, recording gains of $19.3m, driven by holdings in Wia Gold, Sanu Gold and Asara Resources.

Cornish Metals* (CUSN LN) 7.45p, Mkt Cap £93m – Interim report summarises progress at South Crofty

• Cornish Metals has announced a loss of C$6.3m for the six months ending 30^th June 2025 (period to 30th June 2024 – C$4.1m loss) and a closing cash balance of ~C$74m following the £57.4m funding, supported by both the major shareholder – Vision Blue and the UK’s National Wealth Fund, in January 2025.
• Additional funds of £10.7m were raised “from existing shareholders and new investors, including £1.4 million from a retail offer”.
• Welcoming the financial support, CEO, Don Turvey, also described the accelerating activity, both on surface and underground, as the South Crofty mine moves towards a resumption of tin production.
• Key operating highlights include the progress of the refurbishment and dewatering of the New Cook’s Kitchen Shaft (NCK) at cost of ~C$11m, announced yesterday as well as:
  • The ordering of the long-lead time winding equipment for the shaft as well as placing of the related design, manufacturing and installation contracts facilitated by the fundraising; and
  • The start of surface works, including “refurbishment of the Mine Dry building and demolition of the old Bartles Foundry buildings” where grant support from the Cornwall and Isles of Scilly Good Growth Programme is funding “a maximum of 62% of the total Bartles Foundry project cost estimated at approximately £6.8 million for the construction of workshops and stores on the Bartles Foundry site”.
• Today’s announcement also highlights management appointments, including that of “Dave Howe as General Manager and Guillermo Alcazar as Project Director, strengthening the project and operations teams at South Crofty as the project transitions to construction and development” as well as the departure of long-serving COO, Owen Milahop.
• Cornish Metals also confirms the previously announced sale of North American assets including the Nickel King project and royalty interests in the Mactung and Cantung tungsten projects in Canada.
• The company highlights its near-term objectives, including:
  • The completion of the NCK rewatering and refurbishment; and
  • Progressing the “detailed engineering and Front End Engineering Design” as well as
  • Advancing the “early project works, including initial construction of the groundworks for the processing plant” and
  • Securing “long lead items of plant and equipment” by placing deposits; and
  • Arranging “project financing for the South Crofty tin project”.
• The company has previously reported a projected initial tin production in H1 2028 making it “the only primary producer of tin in Europe or North America”.
• The 2024 Preliminary Economic Assessment (PEA) for South Crofty, which includes the mining of portions of the resource currently classified as ‘Inferred’, envisages the production of up to 5,000 tonnes per year and total production of 49,310t of tin, in concentrate, from the processing of almost 3mt of pre-concentrated ore averaging 1.83% tin over a 14-years mine life.
• Pre-concentration of the ore using X-ray and dense media (DMS) sorting sees processing rates of 250ktpa through upgrading of mined ore production of 500ktpa.

Conclusion: Cornish Metals is accelerating its efforts to resume tin production at the historic South Crofty mine in Cornwall. Shaft de-watering and refurbishment are advancing while the company has ordered long-lead time items required for reopening and started work on surface construction.

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

Equinox Gold (EQX US) $6.8, Mkt Cap $5.2bn – Greenstone ramp up continues as Calibre assets come into portfolio

• Equinox reports second quarter 2025 financial results.
• The gold produced 151koz over the quarter, vs 145.3koz prior quarter.
• AISC reported at $1,959/oz vs $1,979/oz prior quarter. (Exc. Los Filos)
• Revenue reported at $479m, Adj. EBITDA at $200m (vs $138m) and Net Income reported at $57m.
• Cash position rose to $407m over the quarter, vs $173m, whilst net debt increased to $1,374m from $1,220m.
• Mining rates at Greenstone increased 23% and processing rates increased 20% vs Q1.
• Management expects continued improvement from Greenstone in 3Q25 alongside the integration of Calibre’s assets and first ore from Valentine.
• Company reiterates guidance for 785-915koz for FY25 at AISC of $1,800-1,900/oz.

Hudbay Minerals (HBM US) $11, Mkt Cap $4.5bn – Strategic investment from Mitsubishi for Copper World JV

• Copper producer Hudbay reports it has agreed to sell a 30% interest in Copper World to Mitsubishi for $600m.
• Mitsubishi will also contribute on a pro-rata equity capital basis.
• Hudbay expected to spend $200m of remaining capital contributions.
• Hudbay also agreed enhanced streaming terms with Wheaton for up to $70m contingent payment alongside the initial $230m stream deposit.
• The JV is aiming to deliver a DFS mid-2026 alongside securing project financing.
• Copper World 2023 PFS:
  • Development CAPEX of $1.3bn for 85ktpa over 20 year LOM.
  • First 10 year cash costs of US$1.47/lb/
  • NPV10 of $1.5bn at $4.5/lb.
• Hudbay also reported results for 2Q25 yesterday, producing 30kt for $245m EBITDA and $88m free cash flow.
• Cash position rose to $626m from $583m prior quarter.

Conclusion: A seemingly expensive implied valuation for copper world at $2bn reflects the Japanese trading houses’ long term approach to capital allocation in the mining sector. Copper World is on the smaller side at 85ktpa over LOM, and the 2023 PFS showed an IRR of 19.2% and NPV10 at $1.1bn using $3.75/lb Cu. We consider the acquisition reflective of Mitsubishi’s long term expectations of higher copper prices and the appeal of US-based copper projects.

Orezone (ORE CN) C$1.14, Mkt Cap C$682m – Grid power limitations lift costs whilst hard rock expansion on budget and time

• Orezone, who operate the Bombore gold mine in Burkina Faso, report quarterly results.
• Gold production at 27.5koz, up from 25.5koz same period 2024.
• AISC at $1,830/oz, up from $1,613/oz same period last year.
• Higher AISC reflects ‘higher royalties, lower grid power availability and unfavourable foreign exchange movements.’
• Grid power availability a result of a fire at a supply line substation and seasonal variability.
• Revenue at $94m, EBITDA at $40m, EPS at $0.03.
• Cash at $73m vs $102m prior quarter, with free cash flow reported at ($27m).
• Undrawn debt at $31m.
• Stage 1 hard rock plant on schedule and budget, due 4Q25.

Conclusion: Orezone costs have risen owing to various factors, predominantly energy costs. The Company is focused on bringing the hard rock expansion plant online, which is due for first pour in 4Q25. This is expected to boost production to 170-185koz in 2026, before increasing again to 220-250kozpa.

South 32 (S32 LN) 140p, Mkt Cap £6.3bn – Mozal impairment and care and maintenance plan

• South 32 provide an update on their ongoing efforts to support the Mozal Aluminium smelter.
• Company notes that they have been engaging with the Government of Mozambique, HCB and Eskom to secure affordable electricity to Mozal beyond March 2026.
• Management does not expect to secure sufficient electricity beyond 2026 and will limit further investment in Mozal.
• They have stopped pot relining and will stand down contractors this month.
• Mozal is expected to go on care and maintenance in March 2026.
• Mozal FY26 on an attributable basis expected at 240kt Al.
• Company recognises an impairment of $372m for FY25 results, expecting it to operate until March 2026.
• Mozal carrying value reduced to $68m.

Strategic Minerals* (SML LN) 0.32p, Mkt Cap £6.7m – Progress report from the flagship Redmoor project, Cornwall

• Strategic Minerals confirms the completion of the first hole of its current 5,300m drilling campaign at the Redmoor project in Cornwall (Hole CRD-033) at a depth of 600.4m and that the second hole of the programme, CRD-034b is currently at depth of over 550m with a further 150m to reach the planned depth.
• Hole CRD-33 “will be sampled from top to bottom as part of cross-correlating structures and mineralisation to a historical twinned borehole” drilled in the 1980s by Southwest Minerals.
• Sampling the entire length of Hole CRD-033 aims to verify the results of the hole drilled by Southwest Minerals and may, probably subject to the approval of an independent technical advisor, allow the incorporation of some or all of the 1980s drilling information to be used in the “new JORC (2012) compliant Mineral Resource Estimate (“MRE”) for Redmoor, expected to be completed in Q1 2026” with obvious potential cost advantages.
• The current relogging and sampling of Strategic Minerals’ earlier drilling is continuing but has already identified “four new mineralised zones and high-grade tungsten, copper and tin intercepts within and beyond the Redmoor deposit’s Mineral Resource Estimate” as previously reported.
• Samples from the upper 300m of the hole are due to be shipped for analysis with the lower part of the hole “which contains the bulk of the mineralised zones within this borehole, will follow in due course” with “results currently expected to be released in September 2025”.
• A third hole is planned from the current location “on Redmoor Road in Kelly Bray, Callington … [and then] … the rig will move to the second drilling pad”.
• Today’s announcement explains that “It is planned for an additional rig to join the programme for up to a further three months, to support the completion of the programme in December 2025”.
• The current, 2019, ‘Inferred’ resource estimate is 11.7mt 0.17% tin, 0.56% tungsten trioxide and 0.50% copper and following the recent identification of silver in the continuing relogging programme  of the core drilled in 2017/18 it is likely that the new estimate may also report an estimate for silver.
• Today’s announcement also reports the recognition of key management contributions from the operating team at Strategic Minerals operating entity, Cornwall Resources, with Project Manager, Dennis Rowland, appointed Managing Director of Cornwall Resources and Senior Geologist, Rowan Thorne, promoted to Exploration Manager
• Strategic Minerals’ Chairman, Charles Manners, explained that “Dennis has played a vital role in guiding the Redmoor Project, building strong relationships with key stakeholders and securing major wins like the Duchy of Cornwall minerals rights licence area and the UK Shared Prosperity Fund grant”.
• He said that “Rowan has brought impressive exploration expertise, managing our current drilling programme and delivering encouraging results. Together, their leadership will drive the next phase of growth at CRL as we advance the Redmoor Project”.
• An SP Angel analyst had the opportunity to visit Redmoor last week and, while the current drilling programme is still at an early stage with assay results from the drilling and from the continuing resampling of the historic drilling are still awaited, our analyst was able to observe the energy and enthusiasm of the exploration team and its commitment to technically driven exploration.
• Today’s announcement also provides a progress report on the planned divestment of the company’s Leigh Creek copper project in South Australia where Strategic Minerals and the call option holder, Axis Mining and Minerals, have agreed “to novate the Call Option to South Pacific Mineral Investments Pty Ltd trading as Cuprum Metals”.
• The Option, “which is exercisable for a period of six months” grants the holder a right “to acquire 100% of LCCM for an initial payment to Strategic Minerals of A$1.9 million in cash”.
• The announcement explains that the “Purchaser anticipates completing a listing on the Australian Securities Exchange upon which it will, if the Call Option is exercised, issue shares to Strategic Minerals equivalent to 19.9% of the listed vehicle up to a maximum value limit of A$3 million”.

Conclusion: The start of the latest drilling campaign at Redmoor is reinvigorating the project with the first of the nine planned holes now complete and the second hole currently at around 75% of its target depth. Assays are awaited both for the initial drilling and from the latter part of the continuing resampling of previous drilling which has, so far, identified additional mineralised zones and also previously undetected silver mineralisation.

*SP Angel acts as Nomad and broker to Strategic Minerals

WA1 Resources (WA1 AU) – SUSPENDED – Trading Halt pending A$100m capital raise

• WA1 which holds the Luni niobium deposit near Kiwirrkurra in Western Australia has entered a Trading Halt pending capital raise.
• The Company is reportedly raising a A$100m at A$17/share.
• Luni Mineral Resource Estimates:
  • Indicated MRE: 73mt grading 1.38% Nb₂O₅ (Niobium oxide).
  • Total MRE: 220mt grading 1.0% Nb₂O₅.
• High grade zone:
  • Indicated MRE: 31mt grading 2.31% Nb₂O₅.
  • Total MRE: 53mt grading 2.2% Nb₂O₅.
• Management plan to produce Niobium Oxide and Ferroniobium .
• Production:
  • A single mine Araxá run by CBMM in Brazil accounts for around 75-85% of global niobium production with Brazil making up 90% of world supply and Greenland at 8.6%.
  • Niobium oxide production runs at ~18ktpa
  • Some niobium is produced a a byproduct of smelting of tin and tantalum from columbite ores.
• Demand:
  • Niobium is sometimes substituted for Vanadium in the hardening of steel.
  • The metal is also used in other alloys of steel for jet engines and rocket motors as well as superconducting magnets for MRI scanners.
  • Niobium and Vanadium are critical metals for the hardening and alloying of steel for construction, aerospace and space applications.
• Pricing:
  • Prices have risen from a low of US$44.5/t in April to US$49.5/t today for 66%min metal in Rotterdam (AsianMetal.com)
• Curiously, the relationship between Niobium and Vanadium appears to have broken down since end-2022 with Niobium outperforming Vanadium by some margin
• China successfully undercut primary Vanadium producers through production of vanadium from steel furnace slag leading to the collapse of primary vanadium production in South Africa but appears less able to repeat the same trick with niobium.

Niobium 98% price vs Vanadium Petoxide (Bloomberg)

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

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