SP Angel Morning View -Today’s Market View, Monday 10th June 2024

Copper and gold slide as dollar strengthens on reduced rate cut prospects

MiFID II exempt information – see disclaimer below

Beowulf Mining* (BEM LN) – Positive graphite test results supports decision to optimise PFS

Bezant Resources (BZT LN) – Earning a 15% interest in a gold project in NW Zambia

Blencowe Resources (BRES LN) – Offtake MoU signed for 15,000t of large flake graphite from Orom-Crosse graphite project in Uganda

Eurasia Mining* (EUA LN) – Price movement commentary

Golden Metal Resources (GMET LN) – Funding for accelerated exploration of Nevada projects

Mkango Resources* (MKA LN) – Non binding MOU with a leading recycling business in Japan

Petra Diamonds (PDL LN) – Agreement on a 5-year wage settlement in S Africa

Power Metal Resources* (POW LN) – Extension of Red Rock agreement

Rockfire Resources (ROCK LN) – Further results from Molaoi drilling

Tertiary Minerals* (TYM LN) – Updated JV structure to support corporate development in Zambia

Gold ($2,295/oz) suffers as strong US labour numbers push Treasury yields higher

• Gold prices fell near $100/oz on Friday, from $2,385/oz to $2,386/oz, their biggest sell-off in 3.5 years.
• The move was triggered by a combination of no Chinese gold purchases in May alongside strong US NFP data.
• The NFP surprise pushed US Treasury yields to 4.47%, having hit lows of 4.28% on Thursday following a series of softer data points.

Copper ($9,800/t) prices slide as dollar strengthens on reduced rate cut prospects

• Copper prices have fallen $1,200/t from there recent short squeeze highs.
• The metal sold off again on Friday following a rally in the dollar, propped up by higher US Treasury yields.
• Fundamentals remain soft, with contango in China and weak import premiums.
• Trafigura highlighted the detachment of copper prices from fundamentals recently, with reports suggesting they were among the parties caught short on COMEX.
• However, the market remains vulnerable to supply disruptions, with Codelco output down 6.1% yoy in April at 95.1kt.
• Escondida production down 7% to 98kt in April yoy.

Argentine lithium production grows from both DLE and traditional brine extraction

• Lithium extraction in Argentina is up 49% yoy for the first four months of the year.
• This has been primarily driven by the ramp up of Cauchari Olaroz by a Ganfeng/LAAC* JV to 40ktpa LCE by year end.
• Eramet and Tsingshan are advancing their lithium carbonate plant in Salta, which uses Tsingshan’s DLE process.
• The group is working on a propriety lithium sorbent technology and has been operating a continuous pilot plant since 2019.
• The Eramet project expects to produce 24ktpa LCE post ramp up in 2H25 following >$800m construction CAPEX.
• Arcadium is also boositing production in Salta, from the Hombre Muerto project, where they utilise DLE to produce a concentrated salar brine.
• Arcadium is boosting output at Hombre Muerto to 40ktpa LCE this year.

*A member of the SP Angel research team holds shares in Lithium Argentinas

IG TV:  Copper and gold 10/04/2024:      https://youtu.be/KuGSbDqWglk?si=-8iikkOHxbbLSnPZ

121 Mining Investment Conference investment Leaders panel: https://youtu.be/OWEASjgXiME?si=ZPzQT-1SnUhXRo0g

Sharepickers TV:  Everybody wants copper. 17/05/2024 podcast:  https://audioboom.com/posts/8507288-john-meyer-everybody-wants-copper

         Video:       https://www.youtube.com/watch?v=XfYNVjIiEs4

*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts. We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate. SP Angel acts as Broker/Nomad or both for Anglo Asian Mining, Kodal Minerals, Power Metals Resources.

Economics

US – Yields and US$ index rally on stronger than expected labour numbers released last Friday as market revise expectations for the first rate cut

• Both headline number of jobs and labour earnings came in ahead of market forecasts in May.
• Chances of a rate cut at the September meeting, ahead of elections, come down from 81% to 57%, FT writes.
• Markets previously priced in a rate cut by November which is now pushed out to December.
• NFPs (‘000, May/Apr/Est): 272/165(revised from 175)/180;
• Unemployment Rate (May/Apr/Est): 4.0/3.9/3.9;
• Av Earnings (%mom, May/Apr/Est): 0.4/0.2/0.3;
• Av Earnings (%yoy, May/Apr/Est): 4.1/4.0(revised from 3.9)/3.9.

Far right and hard right parties are expected to hold almost a quarter of the seats in the European Parliament, up from a fifth in 2019, FT reports.

Germany – Three parties in the governing coalition were overtaken by the far right Alternative for Germany (AfD) that came in second behind the conservative CDU-CSU opposition at European parliamentary elections.

• Chancellor Olaf Scholtz’s Social Democrats had their worst result in more than a century on course to secure 14 seats, two less than in 2019 and down from 15 for AfD and 29 for CDU/CSU.
• German and French voters have elected more right wing politicians into the EU.
• The move partly reflects dissatisfaction over the migrant crisis and management of the war in Ukraine.

France – President Macron called snap parliamentary elections after Marine Le Pen’s far right party (31.5%) secured more than double number of votes that his centrist alliance (14.5%) in European parliament elections.

• This compares to 23.3% secured by RN in the last European elections.
• The first round of snap parliamentary elections will be held on June 30 with a run off on July7.
• Le Pen’s Rassemblement National (RN) currently has 88 seats out 577 in the National Assembly making it the largest opposition party with Macron’s centrist alliance having249.
• The decision is meant to address gridlock in parliament, FT writes.

France – Macron defeat in EU elections prompts snap French election

• France is not a nation of right-wing people but the French people like many other Europeans sound like they are fed up with immigration.
• Macron’s failure to deal with France’s complex employment rulebook may also be an issue.

Italy – Giorgia Meloni wins most votes to send MEPs to the European Parliament

• Giorgia Meloni is a centre-right politician.

Currencies

US$1.0758/eur vs 1.0895/eur previous. Yen 156.99/$ vs 155.28/$. SAr 18.863/$ vs 18.886/$. $1.272/gbp vs $1.280/gbp. 0.659/aud vs 0.668/aud. CNY 7.248/$ vs 7.243/$.

Dollar Index 105.21 vs 104.00 previous.

US dollar – MBS does not plan to renew Saudi Arabia’s Petrodollar agreement with the US which expired yesterday

• The 50-year agreement was put in place in 1974 after the US abandoned the gold standard though the gold standard was officially abandoned in 1933 by the US and 1931 by the UK.
• The Petrodollar Agreement saw Saudi Arabia sell oil exclusively in US dollars with the US committing to military, security, and economic development.
• Saudi Arabia is now working more closely with China which is keen to degrade the use of the US dollar for global trade.
• The US is close to agreeing a new treaty with Saudi Arabia on defence and is keen to promote closer ties between Saudi and Israel. (Reuters)
• The deal which would see the US commit to defending Saudi, could exclude China from building bases in the territory and establish a pact between Saudi and Israel alongside a new Palestinian state to end the war in Gaza.

Precious metals:         

Gold US$2,295/oz vs US$2,377/oz previous

Gold ETFs 81.1moz vs 81.0moz previous

Platinum US$973/oz vs US$1,009/oz previous

Palladium US$919/oz vs US$926/oz previous

Silver US$29.62/oz vs US$31/oz previous

Rhodium US$4,675/oz vs US$4,700/oz previous

Base metals:   

Copper US$ 9,802/t vs US$10,076/t previous

Aluminium US$ 2,566/t vs US$2,642/t previous

Nickel US$ 17,940/t vs US$18,525/t previous

Zinc US$ 2,771/t vs US$2,920/t previous

Lead US$ 2,181/t vs US$2,232/t previous

Tin US$ 31,500/t vs US$32,645/t previous

Energy:           

Oil US$80.0/bbl vs US$80.0/bbl previous

UK NBP Futures 78p/therm vs 79p/therm last Friday

TTF Dutch Futures €33/MWh vs €33/MWh last Friday

Henry Hub Gas US$2.97/mmBtu vs US$2.82/mmBtu last Friday

• The US Baker Hughes rig count fell by 6 units to 594 rigs last week (-101 or 15% y/y). Oil rigs were down 4 to 492 units (-64 y/y), some 20% from a cyclical peak of 623 units in December 2022, while gas rigs down 2 to 96 units (-37 y/y), some 40% from a cyclical high of 162 units in September 2022.
• Saudi Arabia announced over the weekend that it will not renew the 50-year Petrodollar agreement with the US, which should enable a other payment modes, including cryptocurrencies.
• Noble and Diamond Offshore Drilling have entered into a merger agreement under which Noble will acquire Diamond in a part-stock plus $600m cash transaction that is expected to generate $100m of cost synergies as part of a combined fleet of 41 rigs including 28 floaters and 13 jack-ups.
• Nez Zealand became the latest country to revise its transition plans, with the new Government introducing a bill to reverse a 2018 ban on oil and gas exploration outside onshore Taranaki, commenting that the aim was to resolve energy security challenges posed by rapidly declining natural gas reserves.
• TotalEnergies and Air Products have signed a 15-year agreement for the annual supply in Europe of 70,000 tonnes of green hydrogen starting in 2030 to help decarbonise six refineries and two biorefineries in Europe.

Natural Gas €32.9/MWh vs €32.9/MWh previous

Uranium Futures $86.4/lb vs $87.2/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$108.9/t vs US$108.8/t

Chinese steel rebar 25mm US$538.5/t vs US$538.7/t

Thermal coal (1st year forward cif ARA) US$117.3/t vs US$117.5/t

Thermal coal swap Australia FOB US$133.3/t vs US$134.5/t

Hard Coking Coal Australia FOB US$326.0/t vs US$326.0/t

Other:  

Cobalt LME 3m US$27,150/t vs US$27,150/t

NdPr Rare Earth Oxide (China) US$50,223/t vs US$50,175/t

Lithium carbonate 99% (China) US$13,591/t vs US$13,596/t

China Spodumene Li2O 6%min CIF US$1,180/t vs US$1,180/t

Ferro-Manganese European Mn78% min US$972/t vs US$972/t

China Tungsten APT 88.5% FOB US$360/mtu vs US$360/mtu

China Graphite Flake -194 FOB US$470/t vs US$470/t

Europe Vanadium Pentoxide 98% 5.2/lb vs US$5.2/lb

Europe Ferro-Vanadium 80% 26.85/kg vs US$26.85/kg

China Ilmenite Concentrate TiO2 US$318/t vs US$318/t

China Rutile Concentrate 95% TiO2 US$1,414/t vs US$1,415/t

Spot CO2 Emissions EUA Price US$70.1/t vs US$71.1/t

Brazil Potash CFR Granular Spot US$310.0/t vs US$310.0/t

Battery News

European Commission set to announce tariffs for Chinese EVs

• It is expected that the European Commission will announce the tariffs to impose on Chinese EVs, due to what it calls excessive tariffs, later this week.
• The US government imposed 100% tariffs on Chinese EVs last month.
• The tariffs are expected to prompt retaliation from Beijing, who have maintained that their subsidies have not been unfair.
• German automakers are heavily dependent on sales in China and could suffer from any retribution from Beijing.
• Several European auto firms also import their own Chinese-made vehicles.

Volvo has begun shifting its Chinese production to Belgium

• In expectation of the new tariffs, the Swedish automaker has begun moving its China operations to Belgium.
• Volvo had been considering halting sales of Chinese-built EVs bound for Europe if tariffs were introduced, but the move of production of its EX30 and EX90 to Belgium from China will negate that.

European countries fighting for Chinese investment despite looming tariffs

• Despite the impending tariffs on Chinese EVs, European governments are still fiercely competing for manufacturing investment from China.
• Hungary – which produced around 500,000 vehicles in 2023, secured the first European-factory investment by a Chinese automaker, announced last year by EV giant BYD which is also considering a second European plant in 2025.
• The Hungarian government is also negotiating with Great Wall Motor for its first European plant, local media have reported, with the country offering cash for jobs creation, tax breaks and relaxed regulation in targeted zones to attract foreign investment.
• Poland – Chinese automaker Leapmotor have also reportedly agreed a deal with Stellantis to use capacity at the Tychy plant in Poland as a manufacturing base.
• Spain – has recently secured investment from Chery, which will start production in Q4 at a former Nissan facility in Barcelona with a local partner.
• Italy – Chery plans a second, larger facility in Europe, a source with knowledge of the company’s plans told Reuters, and has held talks with governments including the Italian government.

Tesla sees 50 millionth 4680 battery cell produced at Giga Texas

• Tesla revealed that its 4680 Cell Manufacturing team has just produced its 50 millionth 4680-type cylindrical battery cell at the Giga Texas plant.
• A single 4680-type lithium-ion cell stores roughly 90Wh of energy, so total capacity is around 4.5GWh cumulatively.

Company News

Beowulf Mining* (BEM LN) 0.9p, Mkt cap £15.5m – Positive graphite test results supports decision to optimise PFS

Valuation: 5.4p/sh Price Target, BUY

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• Beowulf provides an update on their Graphite testing at Grafintec for the Anode Materials Plant, which will be used for the PFS and EIA.
• The Company has been exploring routes to processing battery grade graphite alongside Dorfner Anzaplan.
• Bench-scale testing of graphite concentrate is aimed at optimising the GAMP flowsheet to produce Coated Spherical Graphite for the Lithium-ion battery industry.
• Grafintec is expanding its planned anode processing flowsheet to include spheronisation, purification and coating.
• Testing has explored routes to produce a 99.95% graphitic carbon product, with optimisation aimed at limiting reagent and energy consumption in the purification process.
• Results highlight:
  • Production of a 99.99% Cg purified and spheronised graphite product, exceeding the industry standard of 99.95%.
  • Reduction in sodium hydroxide and sulphuric acid use by 25% and 82.5% respectively.
  • Reduction of sodium hydroxide baking temperature by 33.3%.
  • Combined OPEX reduction by 45% from reduced temperature and reduced reagent use.
• Going forward, Grafintec is now exploring additional processing options for the Coating stage, with testing analysing potential for recycling of reagants and reducing overall reagent consumption.

Conclusion: Beowulf continues to advance their Graphite Anode Materials Plant with additional bench-scale testing to optimise the PFS. Management has decided to incorporate a more complete processing flowsheet at the plant to maximise more value from the fractured graphite anode material supply chain. Test results today support their decision, highlighting positive OPEX reductions via lower reagent use and reduced temperature requirements. To achieve the 99.99% Cg battery-grade product, above industry standard, provides additional confidence in the Company’s strategy. We look forward to test results from the ongoing workstream which aims to optimise the Coating process.

*SP Angel acts as Nomad and Broker to Beowulf Mining

Bezant Resources (BZT LN) 0.0.02p, Mkt cap £2.6m – Earning a 15% interest in a gold project in NW Zambia

• Bezant Resources reports that it has agreed to assist a local operator, PCB Mining, in developing a mining plan and help obtaining finance for a small-scale mining licence (24988-HQ-LEL) in NW Zambia.
• The company will earn a 15% interest in the project where artisanal mining has shown “a 5-6 metre wide quartz vein potentially hosting gold that is of indeterminate length”.
• Today’s announcement explains that “The arrangement with PCB Mining allows Bezant to further its exploration and development strategy, without a funding requirement. The initial objectives will be to i) assess the prospects for a small-scale mining operation and ii) to construct an exploration program to determine scalability.”
• Addressing the geological context of the area, Bezant Resources says that “There appears to be a vein conjunction within the PCB Licence where a 5-6m wide quartz vein hosted in weathered iron-rich clays was previously the focus of unlicensed artisanal gold activity over a strike length of 25-30m above surface”.
• “This vein can be seen at surface to host traces of malachite and chalcopyrite copper mineralisation and defines a potential target to be tested by trenching or drilling, to determine its length and mineralization”.
• Executive Chairman, Colin Bird, confirmed that “our technical team has previously visited the PCB Project site and identified a 5-6 metre wide quartz vein potentially hosting gold” He identified that the “initial objectives will be to i) assess the prospects for a small-scale mining operation and ii) to construct an exploration program to determine scalability”.

Conclusion: Assisting on a small-scale gold development in NW Zambia seems a relatively low-risk opportunity to assess the gold exploration potential in an area previously worked by artisanal mining.

Blencowe Resources (BRES LN) 5.88p, Mkt Cap £13m – Offtake MoU signed for 15,000t of large flake graphite from Orom-Crosse graphite project in Uganda

• Blencowe Resources have signed a significant MoU for the supply of 15,000t of large flake graphite from Orom-Crosse graphite project in Uganda to Jilin New Technology Graphite Co..
• Jilin is a leading Chinese graphite processor enabling it to take material for expandable graphite while testing for its suitability for battery anode material.
• Management plan for the Jilin MoU to be the first of several offtake agreements ahead of completing the DFS.
• The Jilin offtake should cover around 66% of Orom Cross mine planned large flake production for the first three years from commissioning.
• Offtake terms will be agreed following the Orom-Cross DFS but the high proportion of large flake material suggests the Jilin MoU should account for ~50% of total sales and two thirds of total large flake sales.
• Bulk sample: testing of the 600-tonne bulk sample is near complete and now enabling talks with small flake concentrate offtakers.
• Small flake concentrate is to be upgraded to 99.95% by a leading Chinese SPG ‘spheronised purified graphite’ producer for distribution to OEMs
• Production should be for 50,000tpa of which 22,500tpa should be large flake material depending on how well the processing circuit works.
• Orom-Cross has a 24.5mt graphite JORC resource grading 6% tgc
• The PFS indicates a post-tax NPV8 of US$482m and an IRR of 48%.
• Capex: $62m, assuming 101,000tpa of 97% tgc graphite concentrate over 14 mine life
• The PFS assumes at total concentrate sales price of $1,500/t and Operating costs of around $500/t

Conclusion: It will be interesting to see the DFS and any revisions to the assumed graphite prices and costs.  While the project looks good we are mindful of the potential for political interference as the West acts to hold China at bay though we would suggest that cancelling Blencowe’s MoU would be an ‘own goal’ given Europe’s lack of graphite processing capacity.

• SRG Mining (graphite) were persuaded to scrap a planned investment by China’s Carbon One New Energy Group in March. Solaris Resources (copper) were also persuaded to cancel plans to sell 15% Zijin Mining in May
• Both, Canadian Listed, companies citing foreign investment rules as the reason for walking away from the deals.

Eurasia Mining* (EUA LN) 2.3p, Mkt Cap £160m – Price movement commentary

• The Company released a statement this morning regarding recent strong share price increase.
• The team is referring to online speculation regarding the DFS for the Monchetundra hardrock PGM project in the Kola peninsula, Russia.
• The Company reports that no new material developments regarding the project since last reported updates with the primary focus remaining the possible sale of its Russian assets.

*SP Angel act as Nomad and Broker to Eurasia Mining

Golden Metal Resources (GMET LN) 23p, Mkt Cap £22.4m – Funding for accelerated exploration of Nevada projects

1. Golden Metal Resources reports that it has raised £506,250 via the issue of 2.25m new shares, representing ~2.06% of the enlarged capital, at a price of 22.5p/share.
2. The additional funds are “targeted for accelerated exploration and project development activities at the Garfield as well as Pilot Mountain projects” in Nevada.
3. CEO, Oliver Friesen, explained that the additional financial resources would provide the flexibility for further drilling at the Pilot Mountain project as well as “further extensive exploration planned at Garfield”.
4. Mr. Friesen said that the “ability to raise significant funds in this manner from a single investor, without recourse to the usual market placings, demonstrates the stage of business development and the prospects offered by further work at Pilot Mountain and Garfield”.
5. The company recently expanded the Garfield exploration project in Nevada by staking an additional 3.68km² (~67%) of mineral claims.
6. A 2,000m drilling campaign at Pilot Mountain started in May aimed at expanding the resource base of what the company has described as “the largest known tungsten resource on USA soil”.

Conclusion: Additional funding should assist Golden Metals Resources to pursue its near-term exploration programmes without financial constraint.  We await the results with interest.

Mkango Resources* (MKA LN) 7.9p, Mkt Cap £18m – Non binding MOU with a leading recycling business in Japan

• HyProMag signed a non binding MOU with Envipro Holdings for rare earth magnet recycling in Japan and the UK.
• The agreement includes:
  • Joint marketing of HyProMag recycling technology solutions and recycled magnets in Japan;
  • Recycling trials to be carried out in the UK and Japan on NdFeB scrap supplied by Envipro;
  • Review of NdFeB scrap supply market and offtake opportunities in Japan;
  • Collaboration on potential HyProMag recycling technology roll out in Japan.
• Envipro is a leading Japan based recycling and materials trading company founded in 1950 and listed on Tokyo Stock Exchange with booked revenues of >$300m handling 625kt of scrap in FY23.
• “HPMS is a revolutionary technology for both recycling and re-manufacturing of NdFeB magnets, which provides solutions for these cost and efficiency challenges… Envipro and HyProMag will collaborate on engagement with potential Japanese customers to further the development of HPMS technology in Japan and adopt it for the recycling of rare-earth materials in their products,” Envipro commented on the deal.
• HyProMag is a 100% owned subsidiary of Maginito that is in turn owned by Mkango (79%) and CoTec (21%).

Conclusion: The agreement with a major recycling business in Japan reflects management drive to expand HPMS technology reach in overseas markets. Local partner with access to NdFeB containing scrap supply should expedite potential monetisation of patented technology in local markets.

*SP Angel acts as nomad and broker to Mkango Resources

Petra Diamonds (PDL LN) 42.9p, Mkt Cap £83m – Agreement on a 5-year wage settlement in S Africa

• Petra Diamonds has agreed a 5-year wage settlement with the National Union of Mineworkers in S Africa.
• The agreement which secures a the greater of a 6.25% increase or the CPI in FY 2025, with increases of 5.75% or CPI in FY2026 and 2027, and 6.50% or CPI in FY 2028 and 2029.
• Thanking the NUM for “their positive and constructive engagement in concluding this agreement” Chief Executive, Richard Duffy, said that the agreement “allows for continued certainty on fixed labour costs at our South African operations and enables us to renew our focus on operational delivery as we continue to build further resilience in the business”.
• In April, South Africa’s Department of Statistics reported CPI price inflation of 5.3% for the year to March 2024.

Conclusion: The security of a long-term wage agreement for its South African mines should assist operational planning.

Power Metal Resources* (POW LN) 19p, Mkt cap £21m – Extension of Red Rock agreement

• Power Metal Resources provides an update on it agreement with Red Rock Resources.
• The Company announced plans to dispose of a 49.9% interest in New Ballarat Gold and its interest in the Victoria and South Australia gold projects.
• Both parties have extended the HoT completion date owing to the long weekend in Australia.
• The long stop date has been extended to tomorrow.

*SP Angel acts as Nomad and Broker for Power Metal Resources

Rockfire Resources (ROCK LN) 0.21p, Mkt Cap £4.9m – Further results from Molaoi drilling

• Rockfire Resources reports that its latest drillhole at its wholly-owned Molaoi zinc project in Greece has intersected zinc mineralisation in hole HMO-004.
• Today’s announcement reports “wide and strong mineralisation at depth, with a continuous zone averaging 24.6m @ 8.0 % ZnEq. intersected, starting from 243.42m depth”.
• The intersection includes an “upper 10.6m zone averaging 7.4 % ZnEq. from 243.42m depth, and A second, lower interval of 11.0m @ 10.9 % ZnEq. starting from 257m depth”.
• Rockfire Resources confirms that the lower zone contains “a zone of 6.14m @ 12.11 % Zn, 2.05 % Pb and 67.4 g/t Ag” but unfortunately the depth is not disclosed and the assays of the individual elements are not reported for either the upper or lower intersections.
• The company says that drilling is continuing and that “The resource is likely to be expanded at depth and along strike once all drilling analyses are complete and included into a revised resource model”.
• Current ‘Inferred’ resources are reported as 2.3mt at an average zinc equivalent grade of 11% extending along 1.4km of strike length and to a depth of 220m below surface.
• CEO, David Price explained that “There are no drill holes which terminate the zinc mineralisation at depth, or towards the north. Our aim is to continue chasing the zinc both at depth and to the north in our target to achieve a minimum of 400,000 tonnes of zinc equivalent metal”.

Conclusion: Rockfire Resources’ drilling at Molaoi continues to expand the footprint of mineralisation and we look forward to a revised resource estimate when results of the present campaign are incorporated.

Tertiary Minerals* (TYM LN) 0.14p, Mkt Cap £3.5m – Updated JV structure to support corporate development in Zambia

• Tertiary provides an update on its Mupala Copper Project in Zambia.
• The Company is beginning exploration on the prospect, which lies adjacent to Arc and Anglo American’s $88.5m JV.
• The asset sits to the West of the Kabompo Dome in Zambia, which shares geological similarities to FQM’s Sentinel project.
• The Company is planning a 300x300m soil sampling programme to collect 460 samples, using pXRF.
• Tertiary is targeting copper-in-soil anomalies noted in historical data.

*SP Angel acts as Nomad and Broker to Tertiary Minerals

No.1 in Base Metals: SP Angel mining team awarded No 1. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q1 2024

No.1 in Copper:  “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”

No1. In Gold:  “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”

The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020

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

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.

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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 of less than 15%