Gold edges lower on rising expectations of peace in Ukraine
MiFID II exempt information – see disclaimer below
Asiamet Resources (ARS LN) – Appointment of experienced project manager to progress Stage 1 development of the BKM copper project
Caledonia Mining (CMCL LN) – H1 results maintain dividend
Cobra Resources (COBR LN) – Test results on leaching rare-earths at Boland, South Australia
Gemfields Group (GEM LN) – Proceeds of Fabergé sale to support mining operations at Montepuez and Kagem
Kavango Resources* (KAV LN) – Resource drilling underway at ‘Bill’s Luck’ prospect, Zimbabwe
Many Peaks (MPK AU) – Ferké drill results add to mineralised intrusion
Lindian Resources (LIN AU) – Stage 2 Expansion Mining Permits secured
Sovereign Metals* (SVML LN) – Kasiya mine equipment selection for its Kasiya Rutile-Graphite Project in Malawi
Tertiary Minerals* (TYM LN) – pXRF results from Mushima North drilling
Versarien* (VRS LN) – update on its restructuring process and financial position
Wishbone Gold (WSBN LN) – Drilling at Red Setter prospect
Zanaga Iron Ore (ZIOC LN) – Upgrading Zanaga price deck to reflect DRI-feed premiums
Gold ($3,362/oz) edges lower on rising expectations of peace in Ukraine
- Gold has fallen 1% today after trying to breach $3,400/oz on Friday.
- The metal has been rallying as China’s central bank continues to boost holdings and concerns rise over US labour market data.
- Major revisions to NFP data and weak July readings weighed on optimism over the strength of the US labour market.
- However, rising expectations of a peace deal between Ukraine and Russia, negotiated by Trump, have reduced some haven demand this morning.
- US Treasury yields are holding around 4.25%, as traders wait for further clues on rate cuts.
- The dollar index has held near recent lows, with further weakness set to support gold, whilst a rally from 3 year lows could take some shine off the metal.
Lithium stocks soar on the news that CATL halted operations at the Jianxiawo lithium mine in Jiangxi province due to mining license expiry.
- The mine will remain offline for at least three months.
- The Company is in discussions with authorities regarding a restart, although, people familiar with talks suggested that a renewal may last months.
- The Company failed to renew the permit that expired August 9.
- Traders are reported to have flown drones over the mine ahead of a permit expiry date to gauge the state of operations.
- The mine is the largest in the local Yichun lithium hub and accounts for some 6% of global production according to some estimates with other mines in the region accounting for at least another 5%.
- The markets will be watching further potential suspensions in the region with authorities asking eight local miners to submit their reserves reports by the end of September following an audit that discovered non compliance in the registration and approval process.
- The news also comes amid mode wide government led trend to cut overcapacity across a number of industries to address deflation and overcapacity.
- Chinese lithium futures surged by 8% hitting the price limit up on the announcement.
- Both Tianqi and Ganfeng closed 10% up in China with further gains reported by ASX listed lithium miners including Pilbara (+20%), Liontown (+18%) and Mineral Resources (+12%).
- Spodumene prices added $25/t and trade at $825/t.
- Kodal Minerals* (KOD LN) is up 13% this morning and Atlantic Lithium* (ALL LN) is up 4%; Savannah Resources* (SAV LN) is +1%.
*SP Angel acts as financial advisor and broker to Kodal Minerals; Nomad and Broker to Atlantic Lithium and Savannah Resources
Azerbaijan/Armenia – President Aliyev and President Pashinyan signed an agreement to end the decades long conflict.
- Two nations committed to stopping all fighting and open up travel, business and diplomatic relations.
- The agreement addresses disagreements regarding the Zangezur corridor running in the south of Armenia along the border with Iran and connecting Azerbaijan to the Nakhchivan exclave.
- Armenia wanted to have control of the road and the Azerbaijani leader has in the past threatened to take the corridor by force.
- Under the agreement, the corridor is expected to be developed by US companies and include a rail line, oil and gas pipelines, and fibre optic connections.
- The corridor to be rebranded into the Trump Route for International Peace and Prosperity (TRIPP).
- Trump said he had also signed a bilateral agreement with both countries to expand energy and technology trade.
- Iran criticised the agreement seeing development of infrastructure projects in close proximity to its borders by US companies as potentially a risk to its national security.
- The agreement significantly de risks the region from a potential military confrontation and should further improve regional investment sentiment.
- We see a positive read through for Anglo Asian Mining* (AAZ LN) operating gold/copper mining and processing complex at Gedabek and ramping up its organic growth pipeline of copper assets in Azerbaijan.
*SP Angel acts as Nomad and Broker for Anglo Asian Mining
REEs – $7.8bn contract for missiles for US and allies
- The Pentagon has awarded a $7.8bn contract to Lockheed Martin and RTX Corporation at end-July.
- The contract for thousands of new missiles includes $3.5bn to RTX Corp. for the AMRAAM Air-to-Air missile including telemetry systems and engineering support products.
- Lockheed will also receive $4.3bn for the JASSM ‘Joint Air-To-Surface Standoff Missile’ and ‘LRASM’ Long-Range Anti-Ship Missile.
- Each missile uses a quantity of rare earth metals in their guidance systems.
- China has restricted the supply of seven rare earths and REE magnets to the US for military purposes.
- The restrictions require special export licenses and are seen as a strategic move in response to Trump’s tariff negotiations
IEA projects EV sales above 20m in 2025
- The latest International Energy Agency (IEA) data show global EV sales reached more than 17m in 2024, exceeding a 20% share of car sales.
- China continued to lead the way, with over 11m EVs sold in 2024 and now has roughly 1 in 10 cars on the road as electric.
- Europe held about a 20% EV share in 2024 as subsidies waned, while US EV sales grew about 10% yoy to more than 1 in 10 cars sold.
- In 2025, the IEA expects global EV sales to top 20m, ~25% of all car sales, with China projected to hit around a 60% EV share.
- The US outlook is uncertain but currently points to EVs reaching an 11% share in 2025 as buyers take advantage of existing tax credits.
- By 2030, EVs are set to exceed a 40% global sales share; China could approach 80%, Europe close to 60% and the US around 20% under today’s policies.
- Emerging markets accelerated in 2024, with EV sales up over 60% to nearly 600,000; Brazil more than doubled to 125,000 (over 6% share), and Chinese imports drove most of the increase across these markets.
IGTV – The Future of Mining: Gold, Copper, Rare Earths & M&A: https://youtu.be/-G59iOq6x2c?si=z4fVkyHNP9isbOTB
| Dow Jones Industrials | +0.47% | at | 44,176 | |
| Nikkei 225 | +1.85% | at | 41,820 | |
| HK Hang Seng | +0.08% | at | 24,878 | |
| Shanghai Composite | +0.34% | at | 3,648 | |
| US 10 Year Yield (bp change) | -2.7 | at | 4.26 |
Economics
US – JPM and BoA in firing line on news they declined to take on Trump as a customer
- Trump mentioned last week that JPMorgan Chase and Bank of America had previously rejected him as a customer in an interview with CNBC.
- JPM Chase had given him 20 days in which to move “hundreds of millions of dollars in cash” to another bank.
- Trump then said he approached Bank of America to “deposit a billion dollars-plus” and was told the bank couldn’t provide him an account.
- Trump claims ‘conservative’ clients were being unfairly denied accounts.
- The news is reminiscent of Nigel Farage being debanked by Coutts (NatWest) as a result of his leadership of the Reform party.
Nvidia and AMD agreed to give the US government 15% of the revenues from chip sales in China in exchange for export licenses.
- Allowing exports of previously restricted semiconductors is seen as easing of tensions between two countries with both notation in the middle of trade deal negotiations.
US/Russia – President Putin and President Trump to hold a face to face meeting in Alaska this Friday.
- President Trump paused any new sanctions on Russia with the latest round planned to have come last Friday ahead of the meeting.
- Brent is trading lower this morning on prospects of a ceasefire deal and a potential easing of restrictions on Russian supplies.
- It is currently unclear what would be final conditions of the ceasefire deal.
China – Weak inflation numbers released over the weekend reflect persistent deflationary pressure on the economy.
- Consumer prices growth dropped to zero following a brief increase in June.
- Factory gate prices remains in deflation for a 34th month.
- On a positive note, core CPI (ex food and energy) climbed for a third consecutive month reaching 0.8%, the highest since February 2024.
- CPI (%yoy, Jul/Jun/Est): 0.0/0.1/-0.1
- PPI (%yoy, Jul/Jun/Est): -3.6/-3.6/-3.3
Currencies
US$1.1657/eur vs 1.1663/eur previous. Yen 147.60/$ vs 147.27/$. SAr 17.731/$ vs 17.688/$. $1.346/gbp vs $1.345/gbp. 0.652/aud vs 0.653/aud. CNY 7.182/$ vs 7.182/$.
Dollar Index 98.16 vs 98.15 previous.
Precious metals:
Gold US$3,360/oz vs US$3,395/oz previous
Gold ETFs 92.1moz vs 91.9moz previous
Platinum US$1,319/oz vs US$1,338/oz previous
Palladium US$1,132/oz vs US$1,147/oz previous
Silver US$37.9/oz vs US$38.0/oz previous
Rhodium US$7,075/oz vs US$7,025/oz previous
Base metals:
Copper US$9,755/t vs US$9,715/t previous
Aluminium US$2,598/t vs US$2,618/t previous
Nickel US$15,260/t vs US$15,110/t previous
Zinc US$2,825/t vs US$2,825/t previous
Lead US$2,001/t vs US$2,003/t previous
Tin US$33,630/t vs US$33,835/t previous
Energy:
Oil US$66.5/bbl vs US$66.3/bbl previous
Natural Gas €32.8/MWh vs €32.8/MWh previous
Uranium Futures $71.9/lb vs $72.2/lb previous
Bulk:
Iron Ore 62% Fe Spot (cfr Dalian) US$110.5/t vs US$110.0/t
Chinese steel rebar 25mm US$478.8/t vs US$477.3/t
HCC FOB Australia US$192.0/t vs US$193.6/t
Thermal coal swap Australia FOB US$114.5/t vs US$115.0/t
Other:
Cobalt LME 3m US$33,335/t vs US$33,335/t
NdPr Rare Earth Oxide (China) US$72,605/t vs US$72,887/t
Lithium carbonate 99% (China) US$10,289/t vs US$9,983/t
China Spodumene Li2O 6%min CIF US$825/t vs US$800/t
Ferro-Manganese European Mn78% min US$1,005/t vs US$1,005/t
China Tungsten APT 88.5% FOB US$473/mtu vs US$463/mtu
China Graphite Flake -194 FOB US$410/t vs US$410/t
Europe Vanadium Pentoxide 98% US$5.0/lb vs US$4.9/lb
Europe Ferro-Vanadium 80% US$23.5/kg vs US$23.5/kg
China Ilmenite Concentrate TiO2 US$275/t vs US$275/t
China Rutile Concentrate 95% TiO2 US$1,093/t vs US$10,993/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$3,025.0/kg vs US$3,025.0/kg
China Gallium 99.99% US$395.0/kg vs US$395.0/kg
EV & battery news
GM to import CATL batteries for new Bolt despite tariffs
- General Motors (GM) will import lithium iron phosphate (LFP) batteries from CATL to power the next-generation Chevrolet Bolt, despite steep US tariffs on Chinese batteries.
- The plan serves as a two-year stopgap until GM and LG Energy Solution begin US-based LFP cell production targeted for 2027.
- Assembly of the new Bolt will take place in Kansas with a target price around $30,000, and first deliveries expected in 2026.
- LFP packs are about 35% cheaper than nickel- and cobalt-based chemistries, supporting GM’s affordability push for its entry-level EV.
- The move underscores China’s lead in LFP manufacturing, and follows peers such as Ford and Tesla tapping CATL technology in recent programmes.
| Overnight Change | Weekly Change | Overnight Change | Weekly Change | ||
| BHP | 1.6% | 3.2% | Freeport-McMoRan | 2.6% | 4.6% |
| Rio Tinto | 1.5% | 3.5% | Vale | 2.3% | 5.3% |
| Glencore | 0.8% | -2.8% | Newmont Mining | -0.1% | 10.2% |
| Anglo American | 0.3% | 5.3% | Fortescue | 3.0% | 6.4% |
| Antofagasta | 0.2% | 5.5% | Teck Resources | -0.4% | 1.0% |
Company news
Asiamet Resources (ARS LN) – 0.95p, mkt cap £31m – Appointment of experienced project manager to progress Stage 1 development of the BKM copper project
- Asiamet Resources reports the appointment of a project director to progress its BKM copper project in Kalimantan, Indonesia.
- Mr. Peter Oliver, who will operate in a non-board role, is described as having “over 30 years of global project delivery experience… [in] … major mining, energy, and infrastructure projects across Indonesia, Australia, South America, and the Pacific”.
- Among Mr. Oliver’s previous projects are BHP Billiton’s Haju Coal project, also located in central Kalimantan, as well as senior roles at the Ravensthorpe Nickel project in Australia where he was responsible for “overseeing infrastructure packages valued at over AUD500 million, including tailings dams, water pipelines, beneficiation plants and accommodation facilities”.
- Welcoming the appointment Chairman, Tony Manini, said that his “exceptional track record, and deep Indonesian project delivery experience, makes him an ideal appointment for the BKM Stage 1 copper project development”.
- Mr. Manini said that “With the project financing and strategic partner processes in full swing, it is positive step to see such strong in-country project execution capability and leadership in place”.
- Echoing the Chairman’s remarks, CEO, Darryn McClelland, described “Peter’s appointment … [as] …a major step in our transition from study and financing into execution”.
Caledonia Mining (CMCL LN) 1,760p, Mkt Cap £333m – H1 results maintain dividend
- Caledonia Mining reports production of 21,070oz of gold during the 3 months to 30th June (Q2 2024 – 20,773oz) bringing H1 production to 39,741oz (H1 2024 – 37,823oz) as previously reported.
- On mine cash costs for the quarter of US$1,123/oz (Q2 2024 US$1,013) and all-in-sustaining costs of US$ 1,805/oz (Q2 2024 – US$1,485/oz) in conjunction with an average received gold price for the quarter of US$3,188/oz contributed to H1 revenues of US$65.3m (H1 2025 US$50.1m) and an H1 operating profit of US$35.4m (H1 2024 – US$16.1m).
- The H1 2025 operating profit includes a US$8.5m profit derived from the sale of the solar energy plant at the Blanket mine in April.
- “During the half year ended 30 June 2025, Caledonia generated operating cash inflows of $41.3 million (Q2 2025: $28.1 million), driven by higher production at Blanket and a favourable gold price environment … [and today’s announcement explains that this] … strong cash generation supported continued investment in strategic growth”.
- Investments include “$17.7 million during the half year (Q2 2025: $10.5 million) in property, plant, and equipment on key infrastructure at Blanket. A further $3.1 million during the half year (Q2 2025: $1.8 million) was allocated to exploration and evaluation activities, primarily at Bilboes and Motapa”.
- Today’s announcement highlights the continuing success of its exploration drilling at the Blanket mine where high grades are reported from investigation of “the continuity of the mineralised zones on the Blanket, Eroica and Lima orebodies which comprise three of the main orebodies at Blanket Mine”.
- “Results from 6,976 metres of underground drilling from January 2025 to the end of April 2025 indicate that the existing Blanket and Eroica orebodies have grades and widths which are generally better than expected, while the Lima orebody is shown to continue below 22 level (750 metres) … [and a] … new potential orebody has been intersected in the Blanket orebody area of the mine, with impressive grades and widths”.
- Today’s announcement confirms that the feasibility study for the Bilboes project is “progressing well” and that “a $2.8 million exploration programme is underway at Motapa … [adjacent to Bilboes] … for 2025, targeting sulphide and oxide resources across the Motapa property”.
- Thanking the operational team for “their hard work and contribution … [Chief Executive, Mark Learmonth said that] … We are encouraged by the progress on the Bilboes feasibility study, and we continue to evaluate opportunities that could materially improve project economics. At the same time, our exploration programme at Motapa is advancing well, with a clear focus on identifying both sulphide and oxide resources that could support near-term production and longer-term growth”.
- He confirmed that “we remain focused on delivering our increased production guidance … [to 75-79,500oz of gold production from the previous 74-78,000oz guidance range] …at Blanket, and advancing our growth pipeline in a way that maximises long-term value for shareholders”.
- Caledonia Mining has declared a quarterly dividend of 14US¢/share. Payment is due on 5th September.
- The latest quarterly dividend maintains the level at 14US¢/share first announced in October 2021.
- Caledonia Mining is a consistent dividend payer making it one of a comparatively select group AIM listed mining companies and we are encouraged to see this now firmly-established trend continue.
- Conclusion: Caledonia Mining has delivered a strong operating and financial performance in H1 and remains focussed on delivering its upgraded annual production guidance. The continuing success of exploration drilling at its Blanket mine and exploration and feasibility work at Motapa and Bilboes is creating a solid project pipeline.
*SP Angel mining analysts have visited Caledonia’s mining operations in Zimbabwe
Cobra Resources (COBR LN) 3.1p, Mkt cap £25m – Test results on leaching rare-earths at Boland, South Australia
- Cobra Resources reports that testing by the Australian Nuclear Scientific Technology Organisation (ANSTO) of a bulk sample of material from three drillholes at its Boland paleochannel-hosted rare earths project has shown potentially economic leaching recovery rates at low acidities.
- The testing showed recovery of 46% of the neodymium/praseodymium ((Nd/Pr) and 44% of the dysprosium/terbium (Dy/Tb) using ammonium sulphate with a pH of 5 described by MD, Rupert Verco as “the equivalent acidity of black coffee”.
- Leaching using more acidic lixiviants with a pH of 3 achieved recovery rates of 70% Nd/Pr and 80% Dy/Tb with a pH of 4.5 achieving Nd/Pr recovery of 51% and 48% for Dt/Tb.
- Cobra Resources says that as it works towards defining a “Mineral Resource Estimate, such results have a material impact on the evaluation of grade economics”.
- Today’s announcement confirms that “Very low acid consumptions across the diagnostic leaches are in the process of being confirmed through larger acid consumption tests”.
- Mr. Verco described the resecnt results from ANSTO as “the highest recoveries from the weakest lixiviant acidity achieved by an Australian ionic clay project, highlighting the desirable ionic nature of Boland rare earth mineralisation”.
Conclusion: ANSTO’s tests demonstrate that rare earth recovery at the potential Boland in-situ recovery project can be achieved at low acidities.
Gemfields Group (GEM LN) 5.88p, Mkt Cap £98m – Proceeds of Fabergé sale to support mining operations at Montepuez and Kagem
- Gemfields reports the US$50m sale of its Fabergé luxury goods jewellery and objets d’art brand concluding its “strategic review in respect of Fabergé, which was first announced on 23 December 2024”.
- The company confirms that the “sale proceeds will provide additional working capital while the new processing plant at Montepuez Ruby Mining in Mozambique is operationalised, and mining at Kagem in Zambia is progressively expanded, having been suspended during H1 2025”.
- The announcement confirms that US$45m “is payable to Gemfields by the Buyer on completion of the sale … which is expected on 28 August 2025 … [with the] … remaining USD 5 million is payable to Gemfields by the Buyer by way of quarterly royalty payments at a rate of 8% of Fabergé’s revenue”.
Kavango Resources* (KAV LN) 1.05p, Mkt Cap £33m – Resource drilling underway at ‘Bill’s Luck’ prospect, Zimbabwe
(Kavango hold 100% of the Hillside license area in Zimbabwe)
- Kavango Resources reports that it has started mineral-resource drilling at the Bill’s Luck mine within its Hillside gold project in Zimbabwe.
- The initial phase of drilling, which aims to “define a gold resource that is mineable for a minimum of three years” is expected to include 1,400m of diamond drilling “in the vicinity of the Main Shaft and Roscor Shaft … to identify and characterise the multiple shear hosted gold zones along a 200m strike of the Bills Luck Mine area”.
- Infill reverse-circulation (RC) drilling comprising 10 holes (~1,400m) “will focus on supporting future life of mine planning by testing lateral continuity of the shear hosted gold zones along strike immediately to the northwest and southeast with potential down dip depth extensions”.
- “The Bill’s Luck area, situated in the southern portion of the Balmoral Magmatic Complex within the Upper Greenstone Belt of the Filabusi region, is structurally complex and highly prospective for gold exploration with several historic mines”.
- At the Bill’s Luck mine “a major shear zone with several minor parallel and splay structures” hosts structurally and hydrothermally controlled gold mineralisation “along the margins of these shear zones”.
- CEO, Bill Turney, said that “Our work suggests the gold mineralised strike at Bill’s Luck hosts a series of west plunging ore shoots. Kavango is now targeting the main shoot at Bill’s Luck Main Shaft and will also test potential ore shoots at Roscor and West Shaft”.
- He explained that “Roscor and West Shaft are currently being mined by local contract miners and their ore is being processed at our Hillside milling centre. This has provided useful exploration intelligence, ahead of drilling, and increases our confidence”.
- He confirmed that the “resource drill campaign at Bill’s Luck is strategically designed to give us a clear path to three years of production. This has the potential to generate sufficient free cash flow to fund our operations and drill out larger reserves”.
Conclusion: The start of drilling at Bill’s Luck aims to identify resources to support a minimum of 3 years initial production at a 200tpd treatment rate.
*Two SP Angel Analysts recently visited Kavango’s Hillside mines and licenses in Zimbabwe. An SP Angel analyst holds shares in Kavango
Many Peaks (MPK AU) A$0.88, Mkt Cap A$108m – Ferké drill results add to mineralised intrusion
- Many Peaks reports results from their Ferké gold project in Cote d’Ivoire.
- Assay results include:
- FNDC042: 75m at 6.1g/t Au from 427m
- FNDC046: 36m at 1.77g/t Au from 378m
- FNDC052: 87m at 1.5g/t Au from 340m
- FNDC053: 44m at 1.16g/t Au from 135m
- Company has now completed 13,200m over 46 holes since April, with 5,700m worth of drilling pending assay results.
- Gold mineralisation is believed to have extended down-dip and south along strike.
- Company planning a further 4,000m of diamond drilling aimed at defining the extent of gold mineralisation.
Lindian Resources (LIN AU) A$0.14, Mkt Cap A$160m – Stage 2 Expansion Mining Permits secured
- The Company secured an expansion of Mining License at the Kangankunde RE Project in Malawi.
- The permit increasingly expands licensed area from 900ha to 2,500ha.
- The license helps to potentially expand operations and run Stage 2 in parallel to Stage 1 plant development.
- Increased footprint supports a production expansion from envisaged ~15ktpa monazite con (Stage 1) to 75-100ktpa.
Sovereign Metals* (SVML LN) 37.2p, Mkt Cap £243m – Kasiya mine equipment selection for its Kasiya Rutile-Graphite Project in Malawi
(Sovereign currently holds 100% of the Kasiya project. Malawi has 10% free carry right. Rio Tinto holds 18.5% of Sovereign Metals)
- Sovereign Metals has established the mining equipment required following the Optimised PFS work which selected dry-mining for the Kasiya Rutile-Graphite Project in Malawi,
- The equipment selection, which forms part of the continuing Definitive Feasibility Study (DFS) work for the planned 25-year initial operation includes three 350t draglines, six 230t excavators and fifty-one ~200t capacity trucks as well as a fleet of front-end loaders and ancillary equipment.
- The selected equipment includes Caterpillar trucks, excavators and loaders from Komatsu, and draglines from Liebherr plus equipment from Hitachi and Volvo.
- Today’s announcement explains that its “multi-supplier approach ensures competitive procurement, equipment availability and ongoing support throughout the proposed 25-year project lifecycle, with strategic timing of equipment deployment to match production requirements and optimise capital efficiency”.
- The announcement also explains that the “dry mining fleet design directly supports the project’s targeting of industry-leading low operating costs and positions Kasiya as a long-life, large-scale operation capable of meeting growing global titanium feedstock and graphite demand”.
- Other aspects of the DFS, including “process plant design optimisation … infrastructure and logistics planning, and environmental and social impact assessments” are continuing.
- CEO, Frank Eagar, explained that “Our dragline-based dry mining method offers superior safety, operational flexibility and environmental outcomes, while our multi-supplier strategy ensures competitive procurement and ongoing support”.
- Mr. Eagar said that defining the required mining fleet for the Kasiya project “brings us closer to our DFS completion and demonstrates the systematic progress we are making across all work streams”.
Conclusion: Identification of the mining fleet and shortlist of blue-chip suppliers required for the Phase 1 development of Kasiya is a key component of the continuing DFS with work still underway on the process plant, logistics and ESIA aspects of the project.
*SP Angel act as Nomad and broker to Sovereign Metals. An SP Angel analyst has visited the Kasiya mine site. We highly recommend the Malawi coffee beans sold in Lilongwe airport
Tertiary Minerals* (TYM LN) 0.04p, Mkt Cap £1.7m – pXRF results from Mushima North drilling
- Tertiary Minerals have now completed a 16 hole, 1,116m AC and RC drilling programme at the A1 target at Mushima North, Zambia.
- The programme is intended to follow-up 2024’s encouraging silver, zinc and copper assay results from the prospect.
- Phase 2 highlights include:
- 24TMNAC-025: 57m at 0.24% Cu from 21m and 39m at 0.26% Zn from 39m
- 24TMNAC-026: 49m at 0.33% Zn from 22m
- 24TMNAC-028: 53m at 0.73% Zn from 19m
- 24TMNAC-038: 58m at 0.27% Cu from 7m and 0.21% Zn from 47m
- Tertiary has now extended known mineralisation 350m to the north over a 300m width, with management noting it remains open to the north and at depth.
- Company notes that pXRF results do not indicate reliable results for silver.
Conclusion: Tertiary has now identified polymetallic mineralisation over a footprint of 350 x 300m to depths of 82m. Zinc and copper mineralisation remains open-ended at depth and to the north. Silver results are incoming using traditional assay methods. We look forward to lab results in the coming weeks.
*SP Angel acts as Nomad and Broker to Tertiary Minerals
Versarien* (VRS LN) 0.012p, Mkt Cap £0.7m – update on its restructuring process and financial position
- Versarien report the unfortunate news that it is taking action to conserve cash, including starting the process to place Versarien Graphene Limited into administration along with starting a process of the voluntary liquidation for Cambridge Graphene Limited and 2-DTech Limited.
- The process of administration and liquidation will extend the forecast cash runway through to end-August to allow further time for the proposed strategic investment first announced on 5 March.
- Management continue to market Total Carbide Limited for sale.
- Leonard Curtis, administrators and insolvency practitioners, have been instructed to accelerate the sale process of the remaining Group assets including Versarien plc, Gnanomat SL and Total Carbide Limited.
- Leonard Curtis have been instructed to solicit offers by early September with asset sales to be concluded as soon as possible, should the strategic investment not be successfully completed.
- If the proposed strategic investment or sale of Total Carbide Limited does not come through by end August then the company will likely cease trading and be placed into administration.
- This will result in the suspension of the shares on AIM.
- Proceeds from assets sales are unlikely to cover the company’s liabilities indicating zero payout for shareholders.
Conclusion: There is no certainty of the proposed strategic investment with an unnamed third party coming through. The company was not able to renew its share capital authority in March and was not able to complete this potential strategic transaction at that time.
*SP Angel acts as Nomad and Broker to Versarien
Wishbone Gold (WSBN LN) – 0.42p, Mkt Cap £11m – Drilling at Red Setter prospect
- Wishbone Gold confirms that the first drillhole of its “hole deepening program” at its Red Setter exploration project in WA has intersected “mineralisation … with zones of quartz-carbonate veining and sulphides of chalcopyrite and pyrite observed down hole” at a depth of around 520m.
- Based on geophysical targeting, announced in April, the main target zone was “around 550 metres”.
- No assays are available yet
- Director, Ed Mead, said that “Seeing the quartz-carbonate veining and sulphides at the expected target depth is highly encouraging at this early stage of the drill program”.
- He said that “Progress has been a little slower than originally expected due to the drill rig only drilling on day shift, however, processing of core on site and geological and structural logging is giving us real time information on the domal structural we are successfully targeting”.
Zanaga Iron Ore (ZIOC LN) 8.5p, Mkt Cap £72m – Upgrading Zanaga price deck to reflect DRI-feed premiums
- High-grade iron ore developer Zanaga provide an update on the Zanaga project in the Republic of Congo.
- Zanaga recently reported metallurgical testwork results which showed the ability to produce high-grade DRI pellet feed.
- Management now envisages producing 12mtpa over stage 1 and 18mtpa during stage 2 of premium DRI grade pellet feed over 30 years.
- As a result of the premium product produced, management has boosted their DFS price expectations owing to lower impurities and higher grades.
- The product will grade 68.5-69.1% Fe
- Updated NPV10 increased 37% to $5.2bn for IRR of 27%.
- The upgraded DFS assumes US$130/t for 68% Fe concentrate, a 30% premium to $100/t 62% Fe prices.
- This factors a $15/t premium for 65% Fe and $15/t premium for additional DRI price premiums.
- Champion Iron Ore’s Kami project, currently being funded by Nippon Steel, Sojitz and the Company, assumed $120/t China CFR for their >67.5% Fe product.
- FOB costs including royalties retained at US$27/t.
- Zanaga is targeting further optimisation assessments of a potential pellet plant, utilising a single pipeline and using a dry TSF.
Conclusion: We are believers in the high-grade iron ore demand growth thesis and Zanaga has done well to produce a concentrate suitable for DRI-feed. This has enabled them to increase price expectations for the mine’s product, which has supported a material increase to NPV10 results. We will pay close attention to further updates on offtake discussions for validation of the concentrate’s suitability for EAF steelmaking.
LSE Group Starmine awards for 2025 / 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 for Q1 2025
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
Prince Frederick House
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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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