SP Angel Morning View -Today’s Market View, Friday 4th April 2025

Gold and copper fall as Trump excludes metals from reciprocal tariffs

MiFID II exempt information – see disclaimer below

Bellevue Gold (BGL AU) – Extension of suspension amid operational issues

Beowulf Mining* (BEM LN) – Final terms of capital raise to support Kallak PFS delivery

Keras Resources* (KRS LN) – Government of Togo issues mining license to state mining company for Nayéga manganese mine

Kodal Minerals* (KOD LN) – Kodal builds spodumene concentrate stockpile awaiting final permits and licenses for export from Mali government

Minerals 260 (BGL AU) – A$220m equity raise to progress ex-Zijin Bullabulling gold asset

Switch Metals (SWT LN) – Switch Metals IPO offers investment into Coltan (Ta + Nb) and spodumene exploration

Copper ($9,131/t) slumps as Trump tariffs trigger global growth slowdown fears

• LME copper is down 2.5% this morning, and c.10% since 25^th March highs.
• We suspect copper had rallied hard on the expectation of 25% tariffs in the US, which triggered a wide arbitrage between CME and LME prices.
• This trade seems to be unwinding, with US prices leading the LME lower.
• However, the widespread tariffs rolled out on Wednesday are likely weighing on global growth expectations, and subsequent copper demand forecasts.
• This is being reflected in government bond yields, with the US 10 year now sliding below 4%.
• China represents 50% of global copper demand, and the escalated tariffs from Trump are expected to further slow their growth trajectory.
• Meanwhile, First Quantum continues to see positive momentum towards the reopening of Cobre Panama, which may flip the market into surplus in the short term.
• Additionally, sulphide leaching continues to see investment from te majors, with Freeport looking to add an additional 400kt from Morenci by 2030 and BHP seeing potential to add 55ktpa through leaching.
• However, over the longer term, capital intensity of new projects and limited large-scale development assets are expected to push prices higher amid sustained demand from the electrification of grids and roads.

Gold ($3,090/oz) weakens amid widespread market panic following Trump’s Liberation Day

• Gold prices have fallen alongside wider asset classes, but still holds above $3,000/oz.
• Gold has likely seen some profit taken as traders look to rebalance their portfolio’s following yesterday’s severe sell-off, with the SP500 down 5%.
• However, yields are sliding on growth slowdown concerns, which is helping keep ETF inflows sustained.
• Focus will now likely shift to China’s retaliation and widespread global tensions between the US and its allies.
• This may boost haven assets’ attractiveness, with gold set to be a beneficiary.
• The uptick in the dollar following it’s weak period yesterday is also likely weighing on gold today.

ii / interactive investor – video interviews:  

• Is China losing its grip on African mining, inc. Sovereign Metals*, Kefi*, Atlantic Lithium*, Goldstone*, Kodal*, Yellow Cake, Kazera Global, Aterian*: 
• Gold, inc. Goldstone*, Kefi, 
• Trump tariffs, China and critical metals, inc. Aterian*, Atlantic Lithium*, Sovereign Metals*, Yellow Cake, Kazera Global
• Five mining stocks to watch:  , inc. Sovereign Metals*, Kazera Global, Yellow Cake, Thor Explorations, Kodal Minerals*

*SP Angel acts for Sovereign Metals and Kodal Minerals

Sharepickers: Gold & Copper Small Caps: https://audioboom.com/posts/8693044-john-meyer-here-s-some-gold-copper-small-caps

• Gold, copper, 13:05 Orosur*, 13:38 Oriole*, 15:25 Resolute, 16:44 Goldstone*, 17:46 Antofagasta, 18:23 Central Asia Metals, 19:56 Kavango, 20:52 Power Metal Resources, 24:25 Kefi*, 25:18 Tertiary Minerals*
• Video:  https://www.youtube.com/watch?v=KG6furFO3n4X

* SP Angel act as nomad and or broker

Economics

Question: How do you impose a retaliatory tariff on a retaliatory tariff?

US/China – President Trump suggested there is an option to cut tariffs on Chinese goods if Beijing allows ByteDance to divest TikTok to avoid a ban in the US.

• The administration said that it was “very close” to reaching a deal with “multiple investors” who expressed interest in acquiring TikTok to allow it to operated in the US.
• Earlier Trump extended the deadline for divestment until Saturday.

US – Equity futures extend their decline in early morning on Friday after S&P 500 posted its biggest one day drop since 2020 on the back of worse than expected US tariffs announcement.

• S&P 500 and Nasdaq closed 4.8% and 6.0% down on Thursday.
• Futures are trading 0.8% and 0.6% lower, respectively.
• Both Asian and European equities are also seen lower as tariffed countries are warning of retaliatory trade barriers.
• Markets are now pricing in four rate cuts by the Fed this year, up from three forecast before the Liberation Day tariffs announcement, amid recessionary fears.
• Employment numbers are due later today with estimates for a140k reading, down on 151k in February.
• Unemployment rate and growth rate in labour earnings are expected to come unchanged at 4.1% and 4.0%, respectively.
• Feb US trade deficit was US$..219bn vs US$131.5bn in January
• Total vehicle sales 17.77m in March vs 16.0m in February
• Factory orders 0.6% in February vs 1.8% in January
• Factory orders with ex transport 0.4% in February vs 0.3% in January
• Mch ADP private employment survey was 155k (Feb revised to 84k from 77k)
• Challenger job losses 275.2k vs 172k
• Initial weekly jobless claims 219k vs 224k

IMF warns of “significant risk” to the global economic outlook “at a time of sluggish growth”. (FT)

• “We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” the head of the IMF Kristalina Georgieva said.

Japan – Markets push back expectations for the next rate hike amid increased uncertainty post US reciprocal and auto tariffs announcements.

• “The introduction of automobile and reciprocal tariffs has increased the uncertainty surrounding domestic and overseas economy and prices,” Ueda said on Friday.
• BOJ Governor did not provide clear signal to the possible direction of the benchmark rate at the coming meeting highlighting that the effect of tariffs would be difficult to quantify at this point.

Germany – Industrial orders were flat in February as the world economy prepared for US President to hike up import duties. (Bloomberg)

• The sector has been struggling since 2022 amid high energy costs, elevated borrowing costs and slowing overseas demand.
• A 20% tariff placed on EU imports will further add to troubles of the sector.
• Factory Orders (%mom, Feb/Jan/Est): 0.0/-5.5(revised from -7.0)/3.4
• Factory Orders (%yoy, Feb/Jan/Est): -0.2/0.1(revised from -2.6)/1.5

UK – Markets raised odds of more monetary policy easing this year expecting three cuts now, up from two estimated pre US tariffs announcement.

South Korea – President Yoon Suk Yeol has been removed from the office in a unanimous vote by the Constitutional Court.

• The decision follows his short lived attempt to implement martial law four months ago.

Zambia – Parliamentary allegations of delays to payments due to contractors by Vedanta at Konkola Copper Mines and Mopani

• The Lusaka Times reports the Socialist Party Copperbelt Provincial Vice Chairperson and spokesperson making allegations on delays to pay suppliers and contractors by Mopani Copper Mines and Konkola Copper Mines.
  • “Local suppliers and contractors have been protesting over delayed payments, inadequate business opportunities for locals and favoritism in the awarding of contracts at KCM and Mopani.”
  • “On March 17, 2025, the Copperbelt Energy Corporation sued KCM – seeking to recover K338,910,012.82 months after the mining firm proposed a debt repayment scheme of arrangement for about 676 creditors.”
  • “It is high time Mr. Kabuswe and his UPND Government admitted that the so-called unlocking of Mopani and KCM has flopped. We said earlier that Vedanta return won’t yield results because the investor has no capacity to run the mine. Where is the million dollars investment Vedanta promised to inject in KCM? Where is the money the Saudi investor promised to invest in Mopani? UPND should know that talk is cheap,” he said.
• Mr. Kashinga said the UPND regime has betrayed the people of the Copperbelt on Mopani and KCM deals.
  • “We repeat our earlier warning to UPND that failure to manage the mining sector effectively will cost them votes on the Copperbelt Province in 2026. Don’t play with the minds of the people of the Copperbelt Province. We demand that Mopani and KCM quickly pay suppliers without further delay. It is a pity that Mr. Kabuswe is behaving like a spokesperson for the Chamber of Mines instead of speaking for the people who voted for him. Mr. Kabuswe is betraying his fellow Zambians by siding with the failed investors in KCM and Mopani,” Mr. Kashinga added.
• KCM has been insisting that it is fully committed to paying creditors as per the court-approved payment plan, called the Scheme of Arrangement.
• Given the history of Vedanta in Zambia and the way it was slung out after revelations of non-payment of tax in Zambia you would have thought the company would have settled its creditors by now.

Currencies

US$1.1022/eur vs 1.0960/eur previous. Yen 146.06/$ vs 147.30/$. SAr 19.072/$ vs 18.896/$. $1.303/gbp vs $1.312/gbp. 0.622/aud vs 0.630/aud. CNY 7.282/$ vs 7.303/$.

Dollar Index 102.072 vs 102.717 previous.

Precious metals:

Gold US$3,094/oz vs US$3,125/oz previous

Gold ETFs 88.1moz vs 88.0moz previous

Platinum US$945/oz vs US$977/oz previous

Palladium US$930/oz vs US$967/oz previous

Silver US$31.2/oz vs US$33.1/oz previous

Rhodium US$5,625/oz vs US$5,700/oz previous

Base metals:

Copper US$9,182/t vs US$9,489/t previous

Aluminium US$2,423/t vs US$2,466/t previous

Nickel US$15,630/t vs US$15,800/t previous

Zinc US$2,676/t vs US$2,732/t previous

Lead US$1,933/t vs US$1,950/t previous

Tin US$36,640/t vs US$36,750/t previous

Energy:

Oil US$67.7/bbl vs US$72.5/bbl previous

Henry Hub Gas US$4.09/mmBtu vs US$4.02/mmBtu yesterday

• Brent oil prices plummeted by over 5% after the eight countries participating in the 2.2mb/d of additional OPEC+ voluntary cuts decided to implement a production roll-back of 411kb/d in May, equivalent to three monthly increments, which provides extra capacity for Russia, Kazakhstan and Iraq to compensate for overproduction.
• US Henry Hub natural gas prices were stable as the EIA reported a 29bcf w/w build to 1,773bcf (+25bcf exp), with storage inventories falling back further to 21.7% below last year and 4.3% below the 5-year average.
• Trans Mountain has filed lower utilisation forecasts with the Canada Energy Regulator, with the expanded pipeline expected to be 84% full this year, 88% full in 2026 and 92% full in 2027. The pipeline, which charges double the toll of the Enbridge Mainline to the US, is now not expected to reach 96% utilisation until 2028.
• BP Chair Helge Lund informed the board of his intention to step down, with a succession process now launched to ensure an orderly transition, most likely in 2026.

Natural Gas €38.9/MWh vs €40.0/MWh previous

Uranium Futures $64.9/lb vs $65.2/lb previous

Bulk:   

Iron Ore 62% Fe Spot (China CFR) US$102.5/t vs US$103.0/t

Chinese steel rebar 25mm US$473.3/t vs US$471.9/t

HCC FOB Australia US$177.0/t vs US$175.7/t

Thermal coal swap Australia FOB US$102.5/t vs US$104.5/t

Other:  

Cobalt LME 3m US$33,925/t vs US$33,925/t

NdPr Rare Earth Oxide (China) US$60,695/t vs US$60,525/t

Lithium carbonate 99% (China) US$9,873/t vs US$9,846/t

China Spodumene Li2O 6%min CIF US$805/t vs US$805/t

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

China Tungsten APT 88.5% FOB US$358/mtu vs US$358/mtu

China Graphite Flake -194 FOB US$435/t vs US$435/t

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

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

China Ilmenite Concentrate TiO2 US$285/t vs US$284/t

Global Rutile Spot Concentrate 95% TiO2 US$1,506/t vs US$1,506/t

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

Brazil Potash CFR Granular Spot US$337.5/t vs US$337.5/t

Germanium China 99.99% US$2,825.0/kg vs US$2,825.0/kg

China Gallium 99.99% US$390.0/kg vs US$390.0/kg

Battery News

Question: Given the low-price and electronic complexity of Chinese cars how will manufacturers afford the cost of organising automotive recalls when cars go wrong?

• • Or are Chinese EVs so good they aren’t subject to the problems which beset many Western automotive manufacturers, eg Ford with their Kuga hybrid recall.
  • Most EVs don’t have gearboxes so when they go wrong, they are often fully immobilised adding to the cost of their repair and jamming up the road where they are immobalised.
• We reckon there is a good reason why consumers trust Toyota over some other manufacturers.
  • As the saying goes “if you want to drive into the bush, buy a Land Rover, if you want to drive out of it buy a Toyota!”

 Stellantis temporarily lays off 900 US staff due to Trump tariff uncertainty

• Stellantis has announced that it is temporarily laying off 900 workers at five US plants and halting production at one each in Mexico and Canada.
• The announcement comes following further tariffs that President Donald Trump announced this week.
• Trump broadened tariffs to a 10% baseline on all US imports, with higher rates for countries with the highest US trade deficits.
• This followed the announcement of 25% tariffs on all auto imports.

Nissan halts orders in US for Mexican-built Infiniti SUV

• Nissan has announced that it will not take new orders from US customers for its Mexican built Infiniti SUVs.
• Following auto tariffs levied by President Trump, the announcement marks a drastic scale-back of its operations at a joint venture plant.
• Nissan will now keep two shifts at its Tennessee plant producing the Rogue SUV, having previously announced that the operation would be cut to one shift.

Tesla bracing for another year of decline, despite Musk optimism

• Backlash against Elon Musk continues to grow with protests, against the Tesla CEO’s involvement with Donald Trump’s administration and his links to far-right politics, continuing globally.
• Despite Musk remaining upbeat and announcing that he expects a 25% growth in Tesla in 2025, many industry analysts forecasting differently.
• Deepwater Asset Management forecasting a 9% drop in sales, from the 1.79m Tesla sold last year.
• Deutsche Bank also expect Tesla sales to decrease by 5%.
• Tesla stocked closed down 5.5% following the recent tariff announcements from President Trump, and is down 45% from its high in mid-November.

Trump and his administration continue to reiterate that short-term pain will lead to long-term economic benefits for US industries and workers, with higher wages and more jobs.

Company News

Bellevue Gold (BGL AU) – SUSPENDED – Extension of suspension amid operational issues

• Australian gold miner Bellevue have extended their suspension after not releasing FY2025 production guidance.
• Bellevue state they are ‘not yet in a position to make an announcement about the potential downward adjustment to its FY25 production guidance.’
• Company reports that March 2025 production was lower than expected, having been ‘heavily reliant on stoped ounces.’
• The Company notes that stoping mined during the quarter, to the edges of the ore body, were unsarcastically low in grade vs the Reserve.
• Additionally, Bellevue states that ‘rapid mining rates due to ramp up also led to some dilution of grade.’
• Production in the March quarter at 25.7koz on lower than expected head grades.
• Gold and cash at 31^st March at A$49m, down from A$81m in the December quarter, debt at A$100m due 2027.
• Bellevue had already downgraded production guidance in early January from 165-180koz to 165-185koz.

Beowulf Mining* (BEM LN) 11p, Mkt cap £4.3m – Final terms of capital raise to support Kallak PFS delivery

• Swedish high-grade iron ore developer Beowulf updates on plans to conduct a placing, SDR rights issue and retail offer.
• The placing has conditionally raised gross proceeds of £1m, SDR rights issue, if fully subscribed, will raise £3m before fees at 11p and SEK1.4 respectively.
• The retail offer is targeting £0.7m raised before costs.
• Potential maximum gross proceeds to raise £4.6m, with the Rights Issue receiving underwriting commitments of £1.21m.
• Funds will be used to complete the Kallak PFS and environmental studies for the GAMP EIA.
• Kallak has the potential to produce 2.7mtpa of high-grade Fe concentrate over 70% Fe to feed into the growing EAF steelmaking sector.
• The Company is now aiming to slurry the product to the rail terminal, although this remains subject to further technical and environmental studies.
• The pipeline is expected to support a considerable reduction in OPEX vs the initial Scoping Study, offsetting increased CAPEX.
• The pipeline is also expected to accelerate and simplify permitting.
• Beowulf is currently focused on derisking Kallak through the Environmental Permit Application and PFS.
• Additionally, Beowulf has also recently completed the updated PFS for the GAMP project in Finland, which showed a post-tax NPV8 of €2.2bn for an IRR of 38% for its CSP graphite product.
• Company is aiming for FEED, financing, and construction in 2027-2028 for the GAMP plant following the completion of the DFS and ESIA.

Conclusion: Beowulf continues to derisk and progress their high-grade Fe concentrate mine, Kallak, alongside the outlined roadmap for the GAMP project in Sweden. Funds will be used to deliver the PFS for Kallak. The concentrate pipeline is expected to positively impact Kallak economics given lower OPEX and be a positive tailwind to the permit application. We are strong believers in the high-grade iron ore product demand growth trajectory.

*SP Angel acts as Nomad and Broker to Beowulf Mining

Keras Resources* (KRS LN) – 1.4p, Mkt cap £1.5m – Government of Togo issues mining license to state mining company for Nayéga manganese mine

(Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA)

• Keras Resources report the Government of Togo has issued a full-scale mining permit to the state mining company STM ‘Société Togolaise de Manganèse’ for the Nayéga manganese mine.
• STM have also signed a mining and logistics contract with CMTP ‘Carrieres Mines Travaux Publics SA’.
• CMTP will mange mining and mineral processing at Nayéga and organise the logistics for transporting ore concentrate to Lomé port.
• Offtake: STM has signed a sale and purchase agreement for the first 400,000t of manganese ore with Fujax a specialist manganese trading company.
• Fees: Keras has an advisory and brokerage agreements with the Government of Togo where the Company will be paid an advisory fee of 1.5% on gross revenue from Nayéga for the provision of advisory services for 3 years and 6.0% of gross revenue generated from the Nayéga mine for the provision of brokerage services for the lesser of 3.5 years or 900,000t of beneficiated manganese ore produced and sold from Nayéga.
• The deal with the Togo government should give nearly $0.9m a year based on a price of $3.5/dmt for manganese on production of 7,480tpa equating to a potential $2.6m over three years.
• Manganese ore prices for 38%min FOB South Africa have fallen to $2.91-3.06/mtu today from 3.47-3.62/dmtu at end June 2024.
• Tariff: China imposed a 25% import tariff onto manganese and cobalt ores and concentrates last year China from this year resulting in higher local manganese prices.
  • China also announced a 25% tariff at the time to be applied to permanent magnets and natural graphite from 2026.

Conclusion:  While it is good to see the Government of Togo finally issuing a mining permit for the Nayéga manganese mine it is disappointing to see manganese ore prices fall to lower levels.

*SP Angel acts as nomad and broker to Keras

Kodal Minerals* (KOD LN) 0.40p, Mkt Cap £81m – Kodal builds spodumene concentrate stockpile awaiting final permits and licenses for export from Mali government

(Hainan Mining holds a 51% stake in KMUK which holds the Bougouni Lithium Project in Mali with Kodal holding 49%. Mali will hold 35% of the jv company with KMUK)

(Kodal Minerals Plc now, effectively, hold 49% of 65% of the Bougouni project with Mali holding 35% through LMLB and 65% of LMLB held by the Kodal jv with Hainan Mining within KMUK)

• Kodal Minerals reports the production ramp up of production at Bougouni is near completion with first lithium spodumene concentrate product in February as previously reported.
• Process plant: The DMS ‘Dense Media Separation’ plant has now produced >11,000t of spodumene concentrate to date with 13,400t of throughput producing 1,920t of concentrate grading 5.63% Li2O in the last week of March.
  • “Nameplate capacity of the DMS processing plant has not yet been achieved on a consistent basis, but with further improvements and modifications being finalised, we look forward to confirming that milestone and the commencement of commercial production in due course. Importantly, plant availability and forecasted mining rates were achieved, and at times are exceeding expectations.”
• Exports:  Concentrates will not be exported till the Bougouni Mining Licence is transferred and the associated permit for export of product is received from the Government.
• License transfers:  Fortunately the transfer of the mining licence to LMLB ‘Les Mines de Lithium de Bougouni SA’, a Mali registered mining company is in progress with all updates to the LMLB structure complete and signed off by the relevant Mali Government ministers.
  • “The Mining Licence transfer application is awaiting final approval and signing by the President of Mali, Assimi Goïta.”
• Payment:  KMUK has formally requested an extension of time for the second payment of US$7.5m to the State of Mali as specified in the binding MoU.
  • “The Mali Government has acknowledged receipt of KMUK’s extension request letter and a response is pending.”
• Stockpile:  Kodal has created a substantial 11,000t spodumene concentrate stockpile ready for trucking to the transport and sale, equivalent to the first month of expected production.
• Trucking: the team plan to truck spodumene concentrates around 884km from Bougouni to the port of San Pedro in the Ivory Coast.
• The drive is relatively simple with just one border crossing and takes some 14 hours and 20 minutes according to our good friends at Google.
• We expect each truck to carry around 35t.
• Personnel:  KMUK has a total of 555 personnel on site, including contractors, of which 531 are Malians making up 95.7% of the total personnel at the site with a total of 344 personnel employed.
• Previously disclosed highlights of the agreement with the Mali Government include:

• • The transfer of 35% of the mining project to the Mali government and will be held in the LMLB jv company comprising:
  • A 10% free carry which is a long-standing practice in Mali; plus
  • 25% of new equity for ~US$4.3 million,
  • The resulting 35% equity interest of the Mali Government cannot be diluted below 35% in the event of any capital increases in LMLB,
  • KMUK partners are able to recover all capital investment and intercompany loans from the operation as a priority.
  • 65% of LMLB will be held by the Kodal jv with Hainan Mining within KMUK.
  • 10-year term for the mining license with renewal likely but subject to conditions in the mining code.
  • Customs and duties exemptions during construction continue including the temporary admission of vehicles, machinery and other property under the regime and in the mining list.
  • Including all tools, oils and greases for machines necessary for their activities, petroleum products, spare parts, materials and equipment, machinery and appliances.
  • LMLB will have at least four directors representing Mali including two independent directors.
  • US$15m cash payment to the government of Mali relating to the Hainan Transaction with US$7.5m paid and a second US$7.5m due by 31 March 2025.
  • “Upon completion of transfer of the mining licence the MoU confirms that the Bougouni mining licence will be in full compliance with all legal requirements and in good standing.”

Spodumene price:  6%min $795-815/t CIF China.

Conclusion:  We hope the Malian government will sign all licenses and permits so the Kodal team can start trucking concentrates through the Ivory Coast and onto China as soon as possible.

*SP Angel acts as financial advisor and broker to Kodal Minerals.

Minerals 260(BGL AU) – SUSPENDED – A$220m equity raise to progress ex-Zijin Bullabulling gold asset

• Australian gold junior Minerals 260 has raised A$220m, with Chairman and Liontown Chair Tim Goyder investing A$12m.
• The funds will be used for the A$156m cash consideration of the Bullabulling Gold Project from Zijin.
• The bulk of the remaining funds will be used for exploration and project studies. At c.A$25m.
• 1.8bn new shares will be issued at A$0.12/share.
• Bullabulling holds 60mt at 1.2g/t Au for 2.3moz Au in resources.
• The Company is planning 80,000m of drilling to expand the resource at depth and along strike.
• The ex-producing mine sits in Western Australia’s Eastern Goldfields and produced 3.5mt at 1.48g/t Au in the 1990s.
• Minerals 260 is aiming for first production in 2028, following an FID in 2026 after drilling and technical studies.

Switch Metals (SWT LN) 8p, Mkt cap £9.5m – Switch Metals IPO offers investment into Coltan (Ta + Nb) and spodumene exploration

• Switch Metals, which holds licenses for Coltan and spodumene in the Ivory Coast, listed in London this week
• The company holds licenses over 3,000skqm of exploration tenements with historical occurrences of Coltan which contains tantalum, niobium as well as licenses for Spodumene (lithium).
• The Ivory Coast is known for its artisanal coltan production as well gold and manganese along with nickel and bauxite.
• Sources: Tantalum is mainly produced from Coltan with substantial artisanal production from DRC, Nigeria and Rwanda and larger scale production comes from Australia and Brazil.
  • Tantalum is generally found in hard-rock pegmatites and also comes from the refining of tin smelting slag.
  • Rwanda is the world’s largest exporter of coltan with coltan-bearing pegmatites found in the West and Eastern provinces though some is also thought to come from the Eastern DRC.
• Uses: The metal is used in alloys and electronics for capacitors, semiconductors, medical implants, chemical plants and is seen as critical for defence and aerospace equipment.
• Pricing: Coltan (columbite-tantalite material) and sells for around $50/kg at present with tantalum concentrates selling for $93/lb ($205/kg) in Europe with the metal selling for $325,000/t in the US.
• Tantalum metal prices range between US$150-250,000 per tonne of contained Ta2O5.
• Processing / refining is done in the US, Germany, Japan and is not dependent on China
• Strategic stockpiling: China has been developing a strategic stockpile of tantalum due to its reliance on ores from the DRC and Rwanda
• Swithc Metals licenses:
• Issia – Coltan (Ta + Nb) and lithium occurrences
  • SODEMI, the national mining company is developing a new mine in the area in jv with a Chinese partner
  • Outcropping pegmatites are seen to be mineralised with Coltan (Ta + Nb).
  • Mineralised soil and gravel located directly are seen above or near Lithium-Cesium-Tantalum pegmatites with confirmed mineralisation
  • Can free-dig for coltan in the near-surface soil and gravels
  • Potential for hard-rock tantalum and lithium near-to and below surface mineralisation.
• Tiassale – Spodumene (lithium) observed two hours drive from Adibjan
  • Close to licences held by Atlantic Lithium and Ganfeng
  • jv with Lithium Africa Resources
  • Streams sediment sampling and outcrop mapping
  • Soil sampling on 400 x 400 followed by 200 x 200 and 200 x 100 m grids
  • Multiple geochemical soil anomalies coherent with previous stream anomalies.
• Bouaké – coltan and REEs ‘rare earth elements’
  • Coltan is Niobium-dominant with tantalum
  • Lithium pegmatites.
  • REEs in the form monazite and xenotime.
  • Mixed Lithium-Caesium-Tantalum (LCT) and Niobium Yttrium Fluorine (NYF) pegmatite signature intruded in biotite and two micas granites
  • Grab sampling have been taken with assays pending
  • National airborne magnetic survey shows pegmatite corridors along regional faults
  • Stream sampling delineated priority exploration zones for follow-up soils.
• Cash: £1.4m
• Number of shares: 118m.

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

SP Angel                                                            

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.

DISCLAIMER

This note is a marketing communication and comprises non-independent research. This means it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.

This note is intended only for distribution to Professional Clients and Eligible Counterparties as defined under the rules of the Financial Conduct Authority and is not directed at Retail Clients.

This note is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose.

This note has been issued by SP Angel Corporate Finance LLP (‘SPA’) to promote its investment services. Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. The information contained herein is based on sources which we believe to be reliable, but we do not represent that it is wholly accurate or complete. All opinions and estimates included in this report are subject to change without notice. It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. SPA is not responsible for any errors or omissions or for the results obtained from the use of such information. Where the subject of the research is a client company of SPA we may have shown a draft of the research (or parts of it) to the company prior to publication to check factual accuracy, soundness of assumptions etc.

Distribution of this note does not imply distribution of future notes covering the same issuers, companies or subject matter.

Where the investment is traded on AIM it should be noted that liquidity may be lower and price movements more volatile.

SPA, its partners, officers and/or employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s).

SPA is registered in England and Wales with company number OC317049.  The registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP.  SPA is authorised and regulated by the UK Financial Conduct Authority and is a Member of the London Stock Exchange plc.

MiFID II – Based on our analysis we have concluded that this note may be received free of charge by any person subject to the new MiFID II rules on research unbundling pursuant to the exemptions within Article 12(3) of the MiFID II Delegated Directive and FCA COBS Rule 2.3A.19.

A full analysis is available on our website here http://www.spangel.co.uk/legal-and-regulatory-notices.html. If you have any queries, feel free to contact our Compliance Officer, Tim Jenkins (tim.jenkins@spangel.co.uk).

SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return