SP Angel Morning View -Today’s Market View, Friday 14th February 2025

Gold prices consolidate close to record highs with US$ at two month lows

MiFID II exempt information – see disclaimer below

Great Western Mining* (GWMO LN) – Exploration results from the Walker Lane belt, Nevada

Jubilee Metals Group (JLP LN) – Copper processing at the Roan copper concentrator plant in Zambia

Power Metals Resources* (POW LN) – Tait Hill uranium prospect anomaly

SolGold* (SOLG LN) – Interim report confirms progress on Cascabel feasibility study

Malawi – The government temporarily suspends exports of gemstones and precious minerals and stops issuance of new mineral export licenses.

• Authorities are launching an audit of current operations with restrictions coming into force “with immediate effect” and will last until further notice, according to the mining ministry statement.
• “This measure has been taken in order to sanitise the mining sector as the ministry will be undertaking some reforms to bring in efficiency and transparency in the mineral rights administration,” Mining Minister Joseph Mkandawire said.
• Main developers in the region include Sovereign Metals* (Kasiya Rutile/Graphite Project), Mkango Resources* (Songwe Hill REE Project), Lotus Resources (Kayelekera Uranium Project) and Lindian Resources (Kangankunde REE Project) among others.

*SP Angel acts as Nomad and Broker to Sovereign Metals and Mkango Resources

CATL filed an application for a secondary listing in Hong Kong.

• Battery manufacturer and a major supplier for Tesla, Volkswagen and other EV makers is expected to be one of the city’s largest share offerings since 2021, FT reports.
• Funds raised will be directed towards growing its production capacities including a production site in Hungary as well as a JV in Spain with Stellantis and a project in Indonesia.
• The Company booked $50bn in sales in 2023 with a market capitalisation of ~$150bn.
• CAATL accounts for ~40% of global EV battery market as of 2024.
• No details on the size of the potential raise are disclosed with some commentators suggesting a placing of up to $7bn is market conditions allow.

Ganfeng commissioned its Mariana Lithium Project in the Salta Province, Argentina.

• The project cost $790m and has a capacity for production of 20ktppa LiCl (~17.5kt LCE).
• Construction works commenced June 2022.
• The Company has also built a solar farm for $19m to power operations.
• Mariana hosts ~8mt LCE in total resource.
• Separately, the Company said that construction at the Pozuelos-Pastos Grandes Lithium Project are planned to start this year.
• Ganfeng acquired the project mid 2022 paying ~$960m for a 3.6mt LCE resource (~490mg/l).

Economics

Security Conference kicks off in Munich as US administration promotes peace talks between Ukraine and Russia in an effort to end the war.

• Earlier President Trump said that US officials would meet at the conference and that Ukraine was also invited.
• Kyiv said no talks with Russia are planned at this point adding that the US, Europe and Ukraine need a common position before discussions start.
• President Trump earlier promised Ukraine a seat at the table in peace negotiations.
• Trump held a call with Putin on Wednesday agreeing to start negotiations immediately before briefing Zelenskiy on discussions.
• Vice President Vance added that the US could hit Moscow with sanctions and possible military action if Putin did not agree to a peace deal.
• The US stressed that Europe will need to increase its defence spending moving forwards.

US – President Trump announced a plan to impose “reciprocal” tariffs on US trading partners yesterday.

• A team of advisors will develop new tariffs on a “country-by-country” basis in retaliation against levies, regulations and subsidies undermining US goods and services competitiveness.
• White House will start with countries with which the US had the largest trade deficits that would include Mexico and China, before imposing new restrictions.
• “I’ve decided, for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America… in almost all cases, they’re charging us vastly more than we charge them, but those days are over,” President Trump said.
• New restrictions are expected to come into effect April 2.

South Africa – The government suspends all America businesses within its territory and halts mineral exports to the US.

• The decision comes as a response to the US administration initiative to cut its funding to South Africa, including USAID.

Currencies

US$1.0481/eur vs 1.0413/eur previous. Yen 152.76/$ vs 154.10/$. SAr 18.380/$ vs 18.514/$. $1.259/gbp vs $1.248/gbp. 0.634/aud vs 0.627/aud. CNY 7.261/$ vs 7.296/$.

Dollar Index 106.919 vs 107.692 previous.

Precious metals:         

Gold US$2,937/oz vs US$2,911/oz previous

Gold ETFs 83.7moz vs 83.9moz previous

Platinum US$1,005/oz vs US$999/oz previous

Palladium US$1,005/oz vs US$983/oz previous

Silver US$33.2/oz vs US$32.2/oz previous

Rhodium US$4,650/oz vs US$4,650/oz previous

Base metals:   

Copper US$9,617/t vs US$9,445/t previous

Aluminium US$2,633/t vs US$2,608/t previous

Nickel US$15,500/t vs US$15,445/t previous

Zinc US$2,897/t vs US$2,859/t previous

Lead US$1,993/t vs US$1,979/t previous

Tin US$32,205/t vs US$31,645/t previous

Energy:           

Oil US$75.4/bbl vs US$74.7/bbl previous

• The IEA’s February oil market report forecasts global oil demand growth of 1.1mb/d in 2025 (+0.05mb/d m/m) and 0.9mb/d in 2026, which will be outpaced by global oil supply growth of 1.6mb/d to 104.5mb/d in 2025.
• US Henry Hub natural gas prices edged higher after the EIA reported a 100bcf w/w draw to 2,297bcf, with storage inventories falling to 9.7% (248bcf) below last year and 2.8% (67bcf) below the 5-year average.

Natural Gas €49.6/MWh vs €52.8/MWh previous

Uranium Futures $68.0/lb vs $68.0/lb previous

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$107.0/t vs US$106.9/t

Chinese steel rebar 25mm US$487.9/t vs US$485.6/t

HCC FOB Australia US$188.0/t vs US$188.0/t

Thermal coal swap Australia FOB US$106.3/t vs US$106.6/t

Other:  

Cobalt LME 3m US$21,550/t vs US$21,550/t

NdPr Rare Earth Oxide (China) US$59,771/t vs US$59,694/t

Lithium carbonate 99% (China) US$10,054/t vs US$10,006/t

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

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

China Tungsten APT 88.5% FOB US$338/mtu vs US$338/mtu

China Graphite Flake -194 FOB US$430/t vs US$430/t

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

Europe Ferro-Vanadium 80% US$24.8/kg vs US$24.8/kg

China Ilmenite Concentrate TiO2 US$295/t vs US$294/t

Global Rutile Spot Concentrate 95% TiO2 US$1,543/t vs US$1,588/t

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

Brazil Potash CFR Granular Spot US$315.0/t vs US$315.0/t

Germanium China 99.99% US$2,725.0/kg vs US$2,725.0/kg

China Gallium 99.99% US$385.0/kg vs US$385.0/kg

Battery News

Company News

Great Western Mining* (GWMO LN) 0.02p, Mkt Cap £1.6m – Exploration results from the Walker Lane belt, Nevada

• Great Western Mining reports that its 2024 exploration mapping and sampling programme has identified targets in the Walker Lane mineral belt in Nevada.
• Soil sampling at the M2 prospect located “500 m to northeast of the Company’s existing inferred copper resource” yielded an assay of 1,470g/t gold and the sampling programme has indicated “the continuity of the M2 trend” to the northeast.
• Soil and grab sampling at the West Huntoon porphyry and gold prospects have “better defined strong copper and gold targets” and recovered a grab sample grading 2.01g/t gold “65 m along strike from high-grade samples reported in late 2024 (16.17 g/t Au, 207 g/t Ag)” in the West Huntoon gold prospect.
• Reconnaissance soil sampling at the Smith mine has “confirmed an area in the south of the grid as anomalous for copper, with peak value of 341 ppm Cu, and an isolated sample returning a gold value of 29 ppb Au”.
• Soil and grab sampling near old mine workings at the Tun Group prospects show “two parallel trends running up to 1 km to the west” with a “new grab sample from a quartz vein approximately 900 m from the old workings” showing a grade of 1.17 g/t Au.
• Chairman, Brian Hall, said that the “s field work clearly underlines the prospectivity of our extensive claims, both for copper and precious metals.  In 2025 we will also begin work on the tungsten prospects identified at the former Defender and Pine Crow mines where we have recently staked new claims to protect our interests”.

Conclusion: Early-stage exploration a Great Western Mining’s prospects in Nevada has identified promising targets in the Walker Lane belt. We await further news from the 2025 exploration programme, including initial work on recently acquired tungsten prospects.

*SP Angel act as Broker to Great Western Mining, an SP Angel Analyst has visited Great Western’s Nevada claim blocks.

Jubilee Metals Group (JLP LN) 3.95p, Mkt cap £118m – Copper processing at the Roan copper concentrator plant in Zambia

• Jubilee Metals reports that it has started to process “new high-grade copper feed material at its Roan concentrator facility” in Zambia.
• Current feed to the concentrator is over 1.6% copper which is “approximately double the grade of material previously processed at Roan and forms part of Roan’s accelerated production plan to recoup part of the lost production over a short period of time”.
• The company confirms that the higher feed grades are “expected to have a marked increase in the production of copper units from Roan which holds a processing capacity of 45 000 tonnes per month”.
• Jubilee Metals has “secured the rights to an initial 200 000 tonnes of high-grade copper feed material … [with an] … option to increase the allocation of copper feed material with the potential to secure a long-term feed supply of this high-grade material”.

Conclusion: Higher grade feedstock for the Roan copper concentrator should increase Jubilee Metals Zambian copper output.

Power Metals Resources* (POW LN) 15p, Mkt cap £17m – Tait Hill uranium prospect anomaly

• Power Metal Resources reports that sampling over the Antler Zone at its Tait Hill uranium prospect in Saskatchewan has identified anomalous radiometric and magnetic signatures over “a well-defined 1 km x 500 m target”.
• The company says that rock samples from “Antler Zone returned the Property’s highest uranium values to date, including 1.68% U in a pegmatite”.
• Commenting on potential drilling targets at Tait Hill,CEO, Sean Wade, said that “weather permitting, we hope to get started on over the next few months”.

Conclusion: Power Metals has identified an anomaly at Tait Hill and aims to drill potential uranium targets later this year.  We look forward to results when available.

*SP Angel acts as Nomad and Broker for Power Metals

SolGold* (SOLG LN) 6.7p, Mkt Cap £214m – Interim report confirms progress on Cascabel feasibility study

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• In its Interim report for the six months to 31^st December 2024, Solgold reports a loss of US$17.4m (2023 – loss of US$21.9m) and a closing cash balance of US$13.2m.
• Highlighting key progress during the period the report Solgold describes the US$750m gold streaming agreement with Franco-Nevada and Osisko, announced in July, which releases an initial “US$33.3m (totalling US$100 million)” to complete the feasibility study and aid in de-risking the project.
• Subsequent funds released, totaling US$650m  will “support project development … [subject to] … certain conditions precedent”.
• The announcement confirms Solgold’s priority as “advancing the Cascabel Project through feasibility and permitting, optimizing project economics, and securing the full development funding package”.
• Project technical studies, “including geotechnical drilling, infrastructure planning, and environmental permitting” have advanced with the company reporting work “to support location selection for critical mine infrastructure, including the tailings storage facility (TSF), processing plant, and access routes”.
• Progress on the environmental and social impact permitting is expected to lead to the submission of a formal Environmental and Social Impact Assessment for the Cascabel Project “is targeted for Q3 2025”.
• Reporting on the company’s Ecuadorian exploration activities beyond the Cascabel project, Solgold explains that new “assay results from the Cielito Norte target, located around 8km northwest of Cascabel within the Blanca-Nieves Project indicate high-grade gold mineralization, reinforcing the prospectivity of the area”.
• Follow-up exploration at Cielito Norte includes soil sampling and mapping to “continue to refine the geological model … [with] … extensive geochemical anomalies identified across a 3.4 km by 1.8 km area”.
• In addition, “SolGold successfully obtained an Advanced Exploration Permit for the Porvenir Project, a key step in progressing the development of this prospective copper-gold deposit … [allowing] … further drilling and assessment of the resource potential”.
• The feasibility study will build on the existing prefeasibility study, released in March, describes an underground block-caving operation with an initial 28-year mine life generating an after-tax NPV8% of US$3.2bn and IRR of 24% from an initial pre-production investment of US$1.55bn.

Conclusion: Solgold confirms continuing progress with its feasibility study work on its Cascabel project after securing a US$750m streaming agreement which provides Solgold with a secure base to progress development at Cascabel. We look forward to the feasibility study in due course. Exploration elsewhere in Ecuador is advancing the Cileito Norte and Porvenir projects.

*SP Angel acts as broker to Solgold

LSE Group Starmine awards for 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 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

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*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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