Platinum prices hold higher ground as supply tightens and investor demand increases
MiFID II exempt information – see disclaimer below
Asante Gold (ASE CN) – C$206m bought deal
Central Asia Metals (CAML LN) –Offer price increased to A$0.053 and deal structure amid concerns over a competing bid
Galan Lithium (GAL AU) – A$20m placement to Clean Elements Fund
Gemfields Group (GEM LN) – New plant at Montepuez expected to produce rubies in August
Rome Resources (RMR LN) – Peace deal between DRC and Rwanda
Platinum prices ($1,283/oz) hold higher ground as supply tightens and investor demand increases
- Platinum prices hit $1,350/oz in the spot market yesterday, before paring gains.
- The move comes as rising investor demand from China increased as buyers look for alternatives to gold.
- Johnson Matthey has reported that Chinese manufacturers are ramping up imports amid increased physical demand.
- Jewellery stockpiles have increased as buyers seek gold alternatives following the metal’s sharp rally this year.
- Inventories are rising, however, suggesting end-user demand has yet to jump significantly.
- London lease rates have jumped, with metal flowing into Asia.
- Auto demand remains weak as EV consumption increases.
- South African supply is yet to meaningful decline, with miners struggling to reduce workforces on political implications.
Copper ($9,580/t) slides whilst smelters struggle to generate profits amid low TCRC fees
- Copper prices have weakened this morning, despite a weak dollar and tight global concentrate supplies.
- Bloomberg reports that JX Advanced Metals, a copper refiner, is reducing output due to tight concentrate supplies.
- The smelter produces 650ktpa of refined copper, the largest in Japan.
- The firm is also ramping up recycling operations.
- Meanwhile, Chinese smelters are hitting record output, supported by state-backed capital and high gold credits.
Nickel ($14,927/t) weak whilst Indonesian operations face profitability hits on high sulfu costs
- Nickel prices continue to hover around the $15,000/t mark amid a well-supplied market.
- However, Bloomberg reports Indonesian plants, which have played a large role in the oversupply, are facing rising costs.
- Sulfur costs have tripled in price this year, impacting high pressure acid leaching plants in Indonesia.
- Indonesia uses intensive processing to mine lower grade laterite deposits.
- Additionally, the Indonesian government is warning producers over rising environmental breaches, adding to the potential for a supply shock going forward.
- SMM reports HPAL operations are facing thinning margins, although cobalt by-product credits are providing some respite.
- Average MHP costs in Indonesia are reportedly $11,000/t, and production was set to rise to 620kt in 2026, up >30% from 2025.
| Dow Jones Industrials | CLOSED | at | 42,171 | |
| Nikkei 225 | -0.21% | at | 38,407 | |
| HK Hang Seng | +0.87% | at | 23,436 | |
| Shanghai Composite | -0.07% | at | 3,359 | |
| US 10 Year Yield (bp change) | -0.1 | at | 4.39 |
Currencies
US$1.1515/eur vs 1.1521/eur previous. Yen 145.40/$ vs 144.97/$. SAr 18.018/$ vs 18.003/$. $1.348/gbp vs $1.346/gbp. 0.648/aud vs 0.650/aud. CNY 7.183/$ vs 7.185/$.
Dollar Index 98.656 vs 99.02
Economics
US – President Trump continued his criticisms of the Fed monetary policy calling for Jerome Powell to cut rates.
- ““Too Late” Jerome Powell is costing our Country Hundreds of Billions of Dollars,” Trump wrote on Truth Social.
- “He is truly one of the dumbest, and most destructive, people in Government, and the Fed Board is complicit. Europe has had 10 cuts, we have had none. We should be 2.5 Points lower.”
- Heated comments came following FOMC decision to keep rates at 4.25-4.50% for the fourth consecutive meeting.
- Equity futures are marginally lower (S&P 500 -0.3%, Nasdaq -0.3%) with VIX Index also lower as the US indicated it may delay its decision on involvement in Israel/Iran war ahead of Euroe/Iran talks.
- Brent and gold prices are also trading lower this morning.
Japan – Key consumer inflation gauge climbed more than expected to a fresh two year high in May.
- Consumer prices ex fresh food gained pace for a third month to 3.7%yoy beating market estimates for the 3.6% reading.
- Service prices were up 1.4%yoy, slightly over 1.3% recorded in April.
- A recent rise in oil prices is likely add further inflationary pressures for a major oil importing nation.
Israel/Iran – European ministers (UK, France, Germany) are due to meet Iran’s foreign minister in Geneva on Friday
- The White House said President Trump will decide on whether to join Israel in its attacks on Iran “within two weeks”.
- Separate reports suggested the decision may come as early as this weekend.
Precious metals:
Gold US$3,347/oz vs US$3,354/oz previous
Gold ETFs 89.4moz vs 89.4moz previous
Platinum US$1,283/oz vs US$1,314/oz previous
Palladium US$1,053/oz vs US$1,047/oz previous
Silver US$35.9/oz vs US$36.3/oz previous
Rhodium US$5,425/oz vs US$5,475/oz previous
Base metals:
Copper US$9,580/t vs US$9,604/t previous
Aluminium US$2,516/t vs US$2,530/t previous
Nickel US$14,927/t vs US$15,045/t previous
Zinc US$2,628/t vs US$2,617/t previous
Lead US$1,982/t vs US$1,988/t previous
Tin US$32,041/t vs US$32,075/t previous
Energy:
Oil US$76.9/bbl vs US$77.6/bbl previous
Natural Gas €40.0/MWh vs €40.0/MWh previous
Uranium Futures $75.0/lb vs $74.6/lb previous
Bulk:
Iron Ore 62% Fe Spot (Singapore) US$94.4/t vs US$94.2/t
Chinese steel rebar 25mm US$460.1/t vs US$461.0/t
HCC FOB Australia US$178.5/t vs US$178.0/t
Thermal coal swap Australia FOB US$111.8/t vs US$111.5/t
Other:
Cobalt LME 3m US$33,335/t vs US$33,335/t
NdPr Rare Earth Oxide (China) US$61,054/t vs US$61,383/t
Lithium carbonate 99% (China) US$8,136/t vs US$8,143/t
China Spodumene Li2O 6%min CIF US$610/t vs US$610/t
Ferro-Manganese European Mn78% min US$995/t vs US$995/t
China Tungsten APT 88.5% FOB US$418/mtu vs US$418/mtu
China Graphite Flake -194 FOB US$420/t vs US$420/t
Europe Vanadium Pentoxide 98% US$5.0/lb vs US$5.0/lb
Europe Ferro-Vanadium 80% US$24.4/kg vs US$24.6/kg
China Ilmenite Concentrate TiO2 US$289/t vs US$289/t
Global Rutile Spot Concentrate 95% TiO2 US$1,687/t vs US$1,687/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$2,895.0/kg vs US$2,895.0/kg
China Gallium 99.99% US$400.0/kg vs US$400.0/kg
Battery News
Company News
| Overnight Change | Weekly Change | Overnight Change | Weekly Change | ||
| BHP | -1.2% | -5.6% | Freeport-McMoRan | -1.3% | -1.9% |
| Rio Tinto | -1.1% | -3.1% | Vale | -4.8% | -3.2% |
| Glencore | -0.3% | -1.1% | Newmont Mining | 0.7% | 11.3% |
| Anglo American | -0.2% | -1.5% | Fortescue | -4.0% | -7.3% |
| Antofagasta | 0.1% | -3.4% | Teck Resources | -1.3% | -1.6% |
Asante Gold (ASE CN) C$1.6, Mkt Cap C$797m – C$206m bought deal
- The Company announced a bought deal for C$206m at C$1.45.
- In addition, the Company granted its underwriters an option to place additional ~21m shares for ~C$31m in gross proceeds within 48h prior to the closing of the fundraise.
- The deal follows a proposed comprehensive US$470m funding package announced earlier this week to progress its Ghanaian gold operations including Bibiani and Chirano.
Central Asia Metals (CAML LN) 158p, Mkt Cap £274m –Offer price increased to A$0.053 and deal structure amid concerns over a competing bid
- The Company increases its all cash offer for the New World Resources to A$0.053 from A$0.050 in May.
- That values NWR at ~A$197m, up on A$185m previously.
- The Company also provides a A$10m equity funding (at A$0.053) conditional on NWR not receiving a superior proposal within the next 14 days.
- New shares would represent 5% of enlarged share capital and be used for project permitting given government led faster than expected timeline.
- The NWR Board continued to unanimously recommend the offer.
- The Company also agreed changes to the transaction structure launching an off market takeover offer for NWR shareholders to sell their shares at A$0.053.
- Off market takeover offer runs in parallel to the previously announced Scheme of Arrangement announced on 21 May.
- Higher offer price and more flexible deal structure follow reports of a new shareholder accumulating a substantial stake in NWR at above the prior offer price of A$0.05.
- Kinterra Capital, a Toronto based private equity fund, is reported to have acquired ~428m shares at A$0.048-0.051 over the last couple of weeks.
Galan Lithium (GAL AU) A$0.1, Mkt Cap A$95m – A$20m placement to Clean Elements Fund
- Galan Lithium has raised A$20m at a 21% premium to yesterday’s closing price.
- Clean Elements, an existing shareholder, will also receive one unlisted option for every two shares at A$0.15 exercise price.
- The funds will ‘provide the final construction funding solution for Phase 1’ at Hombre Muerto West.
- Phase 1 will see Hombre Muerto West produce 4ktpa LCE, with firs chloride due 1H26.
- Galan holds plans to boost production to 60ktpa LCE.
- Clean Elements is part of a Swiss wealth management group.
Gemfields Group (GEM LN) 4.35p, Mkt Cap £76m – New plant at Montepuez expected to produce rubies in August
- Gemfields has provided a progress report on its Montepuez ruby operation in Mozambique and its Kagem emerald mine in Zambia.
- At Montepuez, the company confirms that its second processing plant, designed to triple processing capacity from 200tph to 600tph is substantially (95%) complete, “and materially on budget”.
- The new plant (PP2) is “expected to produce its first rubies during August” and final completion “including the tailings belt conveyor and decanter centrifuge, is now expected to occur during September 2025”.
- The company acknowledges delays to the project including:
o “difficulties in obtaining the requisite work permits, particularly in relation to specialist electrical component installation”; and
o “transport difficulties, including in relation to a key transformer which was damaged this month during transit”; and
o “security and operational issues arising from, inter alia, high levels of illegal miner incursions”.
- At Kagem, Gemfields confirms that it “has recommenced focused mining by re-opening two production points in the Chama pit with minimal waste mining”.
- Today’s announcement explains that it expects to expand the scale of the mining operations further during July and that these “will be further shaped according to developing market conditions … [but that a] … return to full-scale mining is not presently expected for some months”.
Rome Resources (RMR LN) 0.32p, Mkt Cap £19m – Peace deal between DRC and Rwanda
- Rome Resources draws attention to press reports that next week is expected to see the DRC and Rwanda sign “a definitive peace agreement”.
- The company says that it sees this as “a further positive development in the region … [which] … is likely to increase confidence in the business environment, particularly in the eastern DRC, going forward”.
- The announcement confirms that the company “is currently operating with three drill rigs and helicopter support, augmented by supply and personnel flights into the nearby Bisie airstrip”.
- Rome Resources also confirms that its exploration is “progressing well and the company will issue a detailed update to the market in conjunction with the publication of Rome’s annual statutory accounts, due before 1 July 2025”.
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.
| Sources of commodity prices | |
| Gold, Platinum, Palladium, Silver | BGNL (Bloomberg Generic Composite rate, London) |
| Gold ETFs, Steel | Bloomberg |
| Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt | LME |
| Oil Brent | ICE |
| Natural Gas, Uranium, Iron Ore | NYMEX |
| Thermal Coal | Bloomberg OTC Composite |
| Coking Coal | SSY |
| RRE | Steelhome |
| Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite, Rutile | Asian Metal |
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