SP Angel Morning View -Today’s Market View, Friday 27th June 2025

Copper prices jump higher as Antofagasta Plc and Jinchuan agree Zero fee copper smelting agreement

MiFID II exempt information – see disclaimer below

Andrada Mining (ATM LN) – Completion of fundraising

Aura Energy* (AURA LN) – DFC publishes ESIA for the Tiris Uranium Project

Celsius Resources (CLA LN) – Work starts on site at the MCB project, Philippines

Ferro-Alloy Resources (FAR LN) – Additional product potential at the Balasausqandiq vanadium project, Kazakhstan

Kavango Resources* (KAV LN) – Construction of 50t/d CIP gold process test plant at Bill’s Luck Gold Mine in Zimbabwe

Premier African Minerals (PREM LN) – New CEO appointed

Rome Resource (RMR LN) – Operational and MRE timing update

Savannah Resources* (SAV LN) – £4.2m equity raise

Copper (US$9,887/t ) – Prices jump higher as Antofagasta Plc and Jinchuan agree Zero fee copper smelting agreement

• The agreement with a Chinese copper smelter covers half 2026 copper concentrate production.
• Shanghai Metals Market report Antofagasta led with an opening bid of -$15/t, a record low for term treatment charges and substantially lower than last year’s $23.25/t and $21.25 a ton at end-2024.
• The Chinese government has worked hard to reduce costs for local businesses, particularly in power costs, enabling many companies to under cut many Western counterparts.
• While this may not directly lower costs for domestic copper smelters, we would expect the impact on indirect costs to be meaningful, eg just about everything in China is cheaper than in the west. This is not by accident!
• Chinese copper smelters also have a few tricks up their hanfu sleeves. Like all smelters they extract other metals, some of which are not assayed. They also offer discounted rates for copper metal on its production which equate to the cost of transport into LME and SHFE warehouses.

Conclusion: Concentrate negotiations are like ‘musical chairs’ and if you are a smelter which doesn’t settle on a meaningful supply contract you run the risk of falling on your arse, metaphorically speaking!

Gold (US$3,285/oz) – prices fall on news of a US tariff deal with China and calming of attacks from Iran and its proxies

• Gold prices slipped further this morning to $3,287/oz as the US dollar weakened.
• Traders are waiting for news on the US tariff deal with China.
• An element of calm has descended on Tehran and Tel Aviv.
• Trump is focussing on the passing of his ‘Big Beautiful Bill’.

QuantumScape announces major improvement in its solid-state battery technology

• QuantumScape Corporation has announced a major improvement in solid-state battery manufacturing technology.
• QS has developed a new manufacturing process, dubbed “Cobra” that is much faster and takes up less space than its previous methods.
• The Cobra platform is a big step forward because it helps make battery parts faster and with less energy – important for large scale production.

Economics

UK – UK vehicle production falls to lowest level for May since 1949 excluding Covid disruption.

• Manufacturers ramped up and advances sales into the US ahead of Trump’s tariffs, manufacturers are now suffering a hangover of excessive inventory in the US and further tariff uncertainty.
• Vehicle production fell to less than 50,000 cars in May according to the Society of Motor Manufacturers and Traders.

China – the world awaits the results of US tariff negotiations with China

Morocco – UK government withdraws from £24bn plan for world’s longest subsea electricity cable.

• The subsea cable was planned to bring wind and solar power from Morocco to the UK

Currencies

US$1.1715/eur vs 1.1712/eur previous. Yen 144.50/$ vs 143.95/$. SAr 17.850/$ vs 17.626/$. $1.374/gbp vs $1.374/gbp. 0.655/aud vs 0.654/aud. CNY 7.169/$ vs 7.166/$

Dollar Index 97.23 vs 97.31 previous 

Precious metals:         

Gold US$3,285/oz vs US$3,347/oz previous

Gold ETFs 90.4moz vs 90.2moz previous

Platinum US$1,382/oz vs US$1,388/oz previous

Palladium US$1,139/oz vs US$1,105/oz previous

Silver US$36.2/oz vs US$36.4/oz previous

Rhodium US$5,450/oz vs US$5,425/oz previous 

Base metals:   

Copper US$9,887/t vs US$9,798/t previous

Aluminium US$2,575/t vs US$2,575/t previous

Nickel US$15,160/t vs US$15,190/t previous

Zinc US$2,765/t vs US$2,742/t previous

Lead US$2,036/t vs US$2,048/t previous

Tin US$33,650/t vs US$33,310/t previous 

Energy:           

Oil US$68.2/bbl vs US$67.7/bbl previous

• Following yesterday’s rollover, US Henry Hub natural gas prices for August were stable as the EIA reported a 99bcf w/w build to 2,898bcf, with storage inventories 6.3% below last year and 6.6% above the 5-year average.

Natural Gas €33.0/MWh vs €34.9/MWh previous

Uranium Futures $78.5/lb vs $78.5/lb previous 

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$94.5/t vs US$94.6/t

Chinese steel rebar 25mm US$459.0/t vs US$459.3/t

HCC FOB Australia US$178.3/t vs US$178.5/t

Thermal coal swap Australia FOB US$106.9/t vs US$109.3/t 

Other:  

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

NdPr Rare Earth Oxide (China) US$62,077/t vs US$62,095/t

Lithium carbonate 99% (China) US$8,356/t vs US$8,219/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$428/mtu vs US$418/mtu

China Graphite Flake -194 FOB US$410/t vs US$420/t

Europe Vanadium Pentoxide 98% US$5.0/lb vs US$5.0/lb

Europe Ferro-Vanadium 80% US$24.3/kg vs US$24.3/kg

China Ilmenite Concentrate TiO2 US$289/t vs US$290/t

China Rutile Concentrate 95% TiO2 US$1,095/t vs US$1,095/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$2,925.0/kg vs US$2,925.0/kg

China Gallium 99.99% US$400.0/kg vs US$400.0/kg

Battery News

CATL to introduce battery swap technology in Europe

• Battery giant CATL plans to bring its battery swap and recycling technology to Europe.
• CATL believe batter swap technology has “huge potential” in Europe, reducing battery costs and extending battery lifespan.
• The battery maker is targeting 1,000 battery swap stations in China by the end of this year and 10,000 within three years.
• In the interview with the FT, board secretary Jiang Li said that CATL had already discussed use of its battery swap technology with automakers in Europe.
• CATL would be the second Chinese player, after Nio, to bring battery swap services to Europe.
• Nio, as an early player in battery swap technology, operates 60 swap stations in Europe, as well as almost 3,500 in China.

BYD testing solid-state batteries in Seal EV, claims up to 1500km range

• BYD has installed solid-state batteries in its popular Seal EV and has begun testing on roads, according to CTO, Sun Huajun.
• The auto- and battery-maker plans to install solid-state batteries in production vehicles by 2027.
• Some rumours have claimed BYD’s solid-state batteries have an energy density of 400 Wh/kg, nearly twice that of current lithium-ion batteries.
• It has also been reported that the companies solid-state batteries set a record by reaching 1,500km range (at 80% capacity) in a 12-minute charge.
• This capacity is more likely to translate to a max. range of 1300km in real world driving.

Company News

Andrada Mining (ATM LN) 2.85p, Mkt Cap £48m – Completion of fundraising

• Following yesterday’s announcement of a subscription and accelerated bookbuild, Andrada Mining reports that it has raised a total £5m.
• The £4.5m subscription from new strategic shareholder, Talent 10 Resources was completed at 3p/share and the bookbuild raised an additional £0.5m.
• As described in yesterday’s announcement the additional funds will be used for “the installation and implementation of the ore sorters at Uis … [and] … Accelerate the commissioning and production ramp-up of the jig plant at Uis, with internal estimates indicating that production could double by FY2026”.
• CEO, Anthony Viljoen, welcomed Talent 10 Resources as a new strategic shareholder, which he said “supports our strategy to establish Andrada as a leading supplier of critical minerals”.
• Wayne Fitzjohn’ Talent 10 Resources’ CEO, said that their “interest in Andrada stems from a shared conviction that Southern Africa can offer more than just raw material supply, but it can emerge as a global centre for critical mineral innovation, processing, and value creation”.

Conclusion: The new strategic shareholder shares Andrada Mining’s vision for southern African minerals development and the additional investment sets the Uis mine in a position to double production over the next year.

Aura Energy* (AURA LN) 7.6p, Mkt Cap £74m –DFC publishes ESIA for the Tiris Uranium Project

• The Company reports that the US International Development Finance Corp (DFC) released the ESIA for the Tiris Uranium Project on its website.
• The report follows the site visit carried in April 2025 and represents a key milestone in the Company’s engagement with the DFC.
• The publication of the report marks a key milestone for the DFC’s potential debt funding.
• Due diligence and term sheet negotiations with other funding groups and strategic equity investors are underway.
• FEED Update released September 2024 envisaged 1.8mlbs pa production over 25y LOM with development capex of US$230m.

*SP Angel acts as Nomad to Aura Energy

Celsius Resources (CLA LN) 0.33p, Mkt Cap £10.2m – Work starts on site at the MCB project, Philippines

• Celsius Resources confirms that on-site engineering work has started at its Maalinao-Caigutan-Biyog (MCB)Copper-Gold Project located on Luzon approximately 320km north of Manila.
• The company describes the start of the work on site this week as “a significant milestone as we advance towards completing the Front-End Engineering Design … and feasibility study update by around November this year”.
• Executive Chairman, Julito Sarmiento, said that “MCB Project’s developments are continuing at pace … [and confirmed that] … we are conscious of the need for careful cost management … in advance of the completion of the equity financing for the MCB Project”.

Conclusion: Celsius Resources has started on-site engineering work at the MCB project in preparation for the Front End Engineering Design and the Feasibility Study which is expected later this year.

Ferro-Alloy Resources (FAR LN) 9.25p Mkt Cap £46m – Additional product potential at the Balasausqandiq vanadium project, Kazakhstan

• Ferro-Alloy Resources reports that laboratory testing of “high-carbon / low vanadium waste rock located within the existing pit shells scheduled to be stripped during the mining of Ore-Body 1” at it’s Balasausqandiq vanadium project in Kazakhstan has shown “the prospect of a valuable CBS … [ carbon black substitute] … revenue stream”.
• Today’s announcement confirms that a “20 tonne sample of the new CBS product is being sent to the potential Chinese customer for industrial testing”.
• “The Company has built a test-plant which is currently producing around 400 kg of the new CBS product per hour. This has fully demonstrated the effectiveness of the production process and is providing samples that can be supplied to potential customers for evaluation purposes”.
• Ferro Alloy Resources also explains that its Feasibility Study is “substantially complete with respect to the mining and processing to recover vanadium pentoxide as flake” from the 33mt Ore Body 1 at Balasausqandiq.
• The Study, which is expected to be available in September 2025, envisages a 1.65mtpa production rate producing ~8,500tpa of V2O5 and “up to 220,000 tpa” of CBS.
• CEO, Nick Bridgen, said that the “new CBS product is an important development as it can be made in larger quantities, both from the tailings of our vanadium project as already planned, and now, in addition, from other high-carbon sectors within the mining waste”.
• He explained that the additional CBS product “could have a significant positive impact on the timing and financial characteristics of the overall project”.

Conclusion: The potential economic impact of an additional revenue stream from a CBS product at Balasausqandiq should become clearer in the Feasibility Study due in September.

Kavango Resources* (KAV LN) 1.13p, Mkt Cap £34m – Construction of 50t/d CIP gold process test plant at Bill’s Luck Gold Mine in Zimbabwe

• Kavango Resources reports the start of construction of a modest 50t/d CIP ‘Carbon in Pulp’ gold processing plant at Bill’s Luck in Zimbabwe.
• The team already have a modest operation at Bills Luck where they operate a series of stamp mills for artisanal miners along with a small CIP plant where Kavango recover much of the gold which is not recovered by the artisans.
• Management expect the operation to become “cash flow positive shortly after successful commissioning, when steady state nameplate throughput has been reliably achieved.”
• The team plan to feed the new CIP test plant with ore from the Main Shaft at Bill’s Luck which currently produces ~30t/d.
• Kavango has built a 820t ore stockpile grading 2.55g/t at the Main Shaft which should increase to 3,500t/d by trial plant conditioning.
• The team also expect to increase milling capacity to 60t/d which should allow for sufficient spare capacity to keep the 50t/d trial plant going.
• New headgear at the shaft should also enable Main Shaft to move to 70t/d.
• Kavango are also re-equipping the nearby Roscor Shaft, where the existing 2tph headgear and hoisting system from the Main Shaft can be used.
• The new General Manager, Everjoy Ngomamiti from Barrick Mining, is also targeting the construction of a further 200t/d gold processing plant though this may be on one of the other prospects within the Hillside license area.

Conclusion: The recruitment of Everjoy Ngomamiti gives Kavango the real-world mining expertise it lacked to expand and run the operation at Bills Luck and to better evaluate the mineral resources being drilled and estimated on the other gold prospects at Hillside.

We hope the operation will sufficiently expand to formalise the employment of the local artisanal miners, to substantially improve health and safety and to generate substantial income for the local community.

*Two SP Angel Analysts recently visited Kavango’s Hillside mines and licenses in Zimbabwe. An SP Angel analyst holds shares in Kavango

Premier African Minerals (PREM LN) 0.01p, Mkt Cap £8.5m – New CEO appointed

• Following the announcement, in May, of the resignation of founder and CEO, George Roach Premier African Minerals has appointed Graham Hill as its new CEO, effective 16^th July.
• Mr. Hill is described as “a qualified engineer with over 41 years of experience in mine development and management in Africa, Southern Europe and Central Asia”.
• His most recent role has been as CEO of Adriatic Metals “where he oversaw the pre-feasibility, feasibility and development of the Vares Project in Bosnia and Herzegovina”.
• Chairman, Godfrey Manhambara, welcomed the appointment and said that Graham Hill’s “contribution to final resolution of the issues at Zulu will be marked and significant. Graham has wide experience that has direct relevance to our operations, and I welcome his hands on direct approach at Zulu”.

Rome Resource (RMR LN) 0.3p, Mkt Cap £18m – Operational and MRE timing update

• The Company to complete the current drilling programme by the end of July 2025.
• Initial report points to substantial copper,zinc and silver at the Bisie North Project, although, further analysis is necessary to test commerciality of a combined tin/copper/zinc operation.
• Met testwork carried in Canada will be based on a polymetallic processing flowsheet
• Maiden MRE release date is moved from end of June to mid-September to incorporate copper and zinc along with tin mineralisation.

Savannah Resources* (SAV LN) 3.6p, Mkt Cap £78m – £4.2m equity raise

TP Under Review

• The Company raised £4.2m (US$5.8m) in new equity at 3.5p to progress the Barroso Lithium Project, Portugal.
• Four top shareholders accounted for just over 40% of the raise with AMG holding its interest at 15.8% (pre retail offer results) subscribing for 19.1m shares.
• Top local investors, Grupo Lusiaves and Mario Ferreira, also held their interest at around 10% each.
• Two Directors, Rick Anthon (Chairman) and Dale Ferguson (Technical Director), subscribed for 0.7m and 0.3m shares, respectively.
• In parallel, the Company launched a retail offer for retail shareholders at 3.5p that will run until 4.30pm 1 July 2025.
• The issue price represents a 5% discount to the last closing price.
• Raise proceeds along with ~$14.9m in cash (as of 30 April) will be directed towards:
  • DFS and environmental licencing work;
  • Continuing to secure land use rights for the Project;
  • Continuing to enhance the team in preparation for development;
  • Initial Project Finance advisory fees and modelling; and
  • Additional working capital.
• DFS is expected in 2H25 with permitting and FID in 2026.

Conclusion: The Company secures additional funding as DFS work continues targeted for completion later this year at the Barroso Lithium Project, the largest spodumene lithium deposit in Europe. The raise was supported by major shareholders who maintained their stake in the Company. Timeline reiterated for FID and funding in 2026 with maiden production in 2027 by which time lithium market fundamentals are expected to improve leading to a potential recovery in lithium prices. We reiterate our BUY recommendation highlighting conventional spodumene processing flowsheet, good infrastructure, strategic location within the second largest EV market, MRE expansion potential, AMG partnership and clear catalysts ahead. We will update our target price for new shares once retail offer closes next week.

*SP Angel acts as Nomad and Broker to Savannah Resources

Trade IG: Trading Experiences with Angeline Ong: Talk starts 2:16 into the video: 

Vox Markets: Mining Matters: https://www.voxmarkets.co.uk/articles/mining-matters-sp-angel-s-john-meyer-on-commodities-capital-and-change-7c82c6d/

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

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

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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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