SP Angel Morning View -Today’s Market View, Monday 15th July 2024

Gold prices hold >$2,400/oz following fall in US inflation and prospect for Fed rate cuts 

MiFID II exempt information – see disclaimer below

Aura Energy* (AURA LN) – receipt of the remaining material permit to allow the construction and operation of the Tiris Uranium Project in in Mauritania

Atalaya Mining (ATYM LN) – Updated 2024 production guidance

Guardian Metal Resources (Formerly Golden Metal Resources) (GMET LN) – Strengthening the management team

Power Metals Resources* (POW LN) (Power Metals* holds a 51% stake in Golden Metal Resources)

Mkango Resources* (MKA LN) – HyProMag USA status update

Premier African Minerals (PREM LN) – Update on the Zulu lithium project.

SolGold* (SOLG LN) – US$750m financing for Cascabel

Sunrise Resources (SRES LN) – Drilling starts at Pioche Sepiolite Project

Thor Explorations* (THX LN) – Q2 Operating update

Gold prices ($2,412/oz) edge higher as traders look to tomorrow’s retail sales data

• Gold prices have settled >$2,400/oz holding their recent rally following the release of US CPI data.
• Traders boosted their bets on a rate cut in September, now pricing in three cuts this year.
• Prices jumped to $2,425/oz last Thursday marking a new phase in its price progression.
• The 10-year yield fell to 4.16% but has since ticked back up to 4.2%.
• Lower US yields have seen ETF holdings climb, as safe haven seekers rotate from government bonds into gold.
• The PBoC says it has put gold buying on hold for a second month but we believe there are many Chinese savers who are buying gold having lost confidence in domestic financial institutions.
• Compared to the world of cryptocurrency trading we see gold as a generally respectable trade.
• Gold sales also support hundreds of thousands of artisanal miners around the world who often have no other apparent means of support.

Global EV sales could hit 10 million in 2024

• EV sales are expected to reach 10m in 2024, according to a Counterpoint report.
• China continues to dominate the EV market, with sales projected to be four times higher than those in the US in 2024.
• China will maintain over 50% of global EV sales until 2027 and is expected to outpace the combined sales of the US and Europe by 2030.
• Europe and the US will become major growth drivers for EV sales from 2025 onwards according to the report.
• BYD’s market share is predicted to overtake Tesla’s EVs this year.
• Automakers like Volkswagen, Ford, and General Motors are revamping supply chains and producing affordable EVs priced below $35,000 to compete with market leaders.
• Hybrid vehicles, including plug-in hybrids and hybrid-electric vehicles, will continue to dominate the electrified vehicle segment in the near term according to the report.
• In 10 years-time we will wonder why the world didn’t convert to EVs so much earlier and why anyone would ever want to buy a combustion engine for anything other than a long-distance and remote application.
• News flow on new developments in motors, electrical systems, charging rates, battery capacity,  regenerative braking etc… indicates substantial improvement to come over the next 5-10 years.
• AI in motor design is already leading to new and potentially more efficient motor designs which, once tested, could lead to significant enhancement to vehicle range and efficiency.

Copper M&A heats up as Rio looks to Teck and Lundin looks to join forces with BHP for Filo Mining

• Rumours over the weekend suggested Rio Tinto is eyeing a bid for Teck. (Sky News)
• Teck recently sold its steelmaking coal division to Glencore and has been ramping up their QB2 copper project, set to produce 301-344ktpa Cu on average over the next five years.
• Reuters also reported a potential joint bid for Filo Corp from Lundin backed by BHP.
• Lundin has reportedly approached BHP to acquire the Company, which holds the Filo project in the Vicuna district.
• The Lundin family own 33% of Filo and have significant interest in the neighbouring NGEX copper exploration company.
• Shares in filo climbed 12% on the news before being halted.
• Lundin Mining is set to produce 366-400kt Cu this year, boosting its stake in the Caserones operation.
• BHP’s bid for Anglo American, which was believed to be driven by copper, fell through, leaving the Company hungry for alternative opportunities.
• Copper concentrates:
• CSPT ‘Chinese Smelter Purchase Team’ set Q3 Tc/Rc rates at $30/t and 3c/lb. Given that this is above spot market levels we wonder how well it will work.
• Remember China prefers to work on spot market pricing whereas Japan and most other nations appear to prefer the stability of longer-term price negotiations.

Sharepickers (12.07.24):  You Can Do an Awful Lot with a Ton of Tin! Video: https://www.youtube.com/watch?v=z8wc2MB5fG8

           Podcast: https://audioboom.com/posts/8540602-john-meyer-you-can-do-an-awful-lot-with-a-ton-of-tin

 Economics

China – GDP growth underperforms in 2Q24 on the back of struggling consumer demand an ongoing real estate slowdown.

• The economy grew 4.7%yoy last quarter, down from 5.3%yoy in 1Q24 and 5.1%yoy forecast (Reuters).
• The data comes ahead of the start of a Central Committee third plenum, a four day meeting of the Communist Party leadership to discuss long term economic reforms.
• The plenum is reported to focus on development of advanced manufacturing, revisions to the tax system, property market crisis, ways to bost domestic consumption and revitalise the private sector, Reuters reports.
• The third plenum was initially planned to be held in the autumn of 2023, but with no explanation the decision was taken to postpone.

China – Property price fall accelerates

• New home prices are falling in China at their fastest rate for nine years according to Reuters.
• New home prices dropped 4.5% yoy following a 3.9% yoy reduction in May NBS data.
• Further property developer defaults seem likely without further government intervention.

ECB – Eurozone inflation expectations are easing with the ECB survey of local businesses showing that selling prices are likely to grow 3.0% over the next year, down from 3.3% expected before.

• Businesses highlight that wage growth had slowed to 3.3% from 3.8%.
• The ECB is expected to leave unchanged at the coming meeting this Thursday after a 25bp cut in June.
• Markets are assigning a 85% chance of another rate cut in September, FT reports.

US

• CME Fed Watch contract is predicting a Spt FOMC rate cut at 90%.
• Preliminary Jul Uni of Michigan consumer expectations 66.0 (Jne 68.2).

Alliance of Sahel States – A new confederation formed by the military leaders Mali, Burkina Faso and Niger breaks with ECOWAS.

• The new confederation covers 72m people
• The leaders have avowed to “wipe the scourge of jihadist violence from their countries, but to build a new economic alliance that will reshape West Africa.”
• While we are concerned about the occasional kidnapping and robbery of gold transports from mines in Burkina Faso, jihadi fighters have been causing far greater trouble for these nations.
• There is some concern over the leaders ties to Russia and Iran but we suspect these ties will change if Russia is forced from Ukraine and as Iran’s hard-line regime softens.

Botswana – IMF cuts Botswana GDP growth forecast as fall in diamond prices and sales hits nations account

• The IMF has reduced Botswana’s 2024 growth forecast to 1% from 3.6% based on reduced diamond sales.
• The nation’s budget deficit is also forecast to expand to 6% from 3.45%.
• Some 35% of all government tax revenue and around 75% of foreign exchange earnings come from diamond sales.

Currencies

US$1.0889/eur vs 1.0867/eur previous. Yen 157.93/$ vs 159.23/$. SAr 18.089/$ vs 17.975/$. $1.287/gbp vs $1.298/gbp. 0.678/aud vs 0.676/aud. CNY 7.263/$ vs 7.265/$.

Dollar Index 104.23 vs 104.54 previous.

Precious Metals

Gold US$2,405/oz vs US$2,403/oz previous

Gold ETFs 81.6moz vs 81.6moz previous

Platinum US$1,005/oz vs US$995/oz previous

Palladium US$962/oz vs US$972/oz previous

Silver US$30.93/oz vs US$30.74/oz previous

Rhodium US$4,600/oz vs US$4,600/oz previous

Base metals:   

Copper US$9,847/t vs US$9,725/t previous

Aluminium US$2,470/t vs US$2,466/t previous

Nickel US$16,816/t vs US$16,805/t previous

Zinc US$2,950/t vs US$2,917/t previous

Lead US$2,195/t vs US$2,178/t previous

Tin US$33,695/t vs US$33,805/t previous

Energy:           

Oil US$84.8/bbl vs US$85.9/bbl previous

• Crude oil prices were stable last week as geopolitical tension in the Middle East offset weak demand data from China and BP’s 2024 Energy Outlook.
• The US Baker Hughes rig count fell by 1 unit w/w to 584 rigs last week (-91 or 14% y/y), with oil rigs down 1 to 478 units (-66 y/y) and gas rigs down 1 to 100 units (-33 y/y) as miscellaneous rigs gained 1 to 6 units.
• Allseas’ Pioneering Spirit vessel successfully completed the single-lift removal of Shell’s 31,000-tonne Brent Charlie platform topsides from the UK North Sea, which represents the heaviest offshore lift ever performed.
• Henry Hub Gas US$2.26/mmBtu (~$13/boe)

Natural Gas €31.4/MWh vs €31.1/MWh previous

Uranium Futures US$86.1/lb vs US$86.0/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$109.1/t vs US$105.3/t

Chinese steel rebar 25mm US$514.7/t vs US$514.3/t

Thermal coal (1st year forward cif ARA) US$108.5/t vs US$110.4/t

Thermal coal swap Australia FOB US$134.5/t vs US$134.0/t

Coking coal Dalian Exchange futures price US$216/t vs US$214.0/t

Other:  

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

NdPr Rare Earth Oxide (China) US$50,104/t vs US$49,784/t

Lithium carbonate 99% (China) US$12,044/t vs US$12,033/t

China Spodumene Li2O 6%min CIF US$990/t vs US$990/t

Ferro-Manganese European Mn78% min US$995/t vs US$995/t

China Tungsten APT 88.5% FOB US$335/mtu vs US$340/mtu

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

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

Europe Ferro-Vanadium 80% 26.75/kg vs US$26.75/kg

China Ilmenite Concentrate TiO2 US$315/t vs US$313/t

China Rutile Concentrate 95% TiO2 US$1,397/t vs US$1,396/t

Spot CO2 Emissions EUA Price US$69.6/t vs US$69.6/t

Brazil Potash CFR Granular Spot US$307.5/t vs US$307.5/t

Battery News

The EV charging boom could attract $1tr by 2040

• The EV charging sector is projected to attract $1tr in investments by 2040, according to Bloomberg New Energy Finance.
• This growth presents significant opportunities for hardware manufacturers, site developers, charging operators, and software providers.
• Slow chargers, currently a quarter of investments, are expected to grow to 50% by 2038 due to increased home charger sales and a saturated fast-charging network.
• The demand for fast chargers will decline in the 2030s, especially in China, as old infrastructure is replaced.
• China leads in charger installations, Europe is on track for its 2030 goals, and the US needs a sixfold increase in public charging installations by 2030.
• Significant grid investment will be needed in the late 2030s.
• Public charging revenues could exceed $100bn by 2030, with profitability impacted by competition, grid connections, and electricity costs.

Germany set to abstain from vote for EU tariffs on Chinese EVs

• Germany is set to abstain in today’s vote by European Union member states on imposing provisional tariffs on Chinese EVs. (Reuters)
• The provisional tariffs of up to 37.6% on EVs imported from China do not require the member states’ support, but the final tariffs could be blocked if a qualified majority of the EU’s 27 members is opposed.
• We feel sure PRC diplomats and industry leaders will be lobbying hard behind the scenes.

Company News

Aura Energy* (AURA LN) 7.4p, Mkt Cap £57m – receipt of the remaining material permit to allow the construction and operation of the Tiris Uranium Project in in Mauritania

• Aura Energy reports the receipt of the remaining material permit to allow the construction and operation of the Tiris Uranium Project in in Mauritania, West Africa.
  • The authorisation to develop, mine and produce Uranium Oxide Concentrate (“UOC”) was issued by the National Authority for Radiation Protection, Safety and Nuclear Security (L’Autorité Nationale de Radioprotection de Sûreté et de Sécurité Nucléaire (“ARSN”)) on the 12 July 2024.
• The permit allows Aura to move forwards towards a FID, Final Investment Decision which is targeted to be done by Q1 next year.
  • Approvals for the export of uranium will be granted as part of a routine export monitoring program and in accordance with international safeguards for monitoring the movement of radioactive materials.
  • There are no limits on the volumes of future uranium production, which will allow significant flexibility for the operation including the potential for future expansion of production rate beyond 2Mlbs pa U3O8. Production rates are currently being investigated on the back of the significant 55% increase in Mineral Resources to 91.3Mlbs U3O8[1] announced last month.
• Aura has contracted a major international company specialising in the transportation of radioactive materials for the future seaborne transportation of UOC produced from Tiris to international converters.
• The Mauritanian Government has created an inter-ministerial committee to facilitate and support the development of Tiris and the uranium mining industry in Mauritania by order of Prime Minister Mohamed Ould Bilal.
• The committee will be headed by the National Authority for Radiation Protection and will be a central point of contact for all ministries to facilitate and support the rapid development of the future Tiris Uranium Mine.

FEED study economics updated for new contract pricing:

• • NPV@8% = US$388m
  • IRR 36%
  • AISC US$ 34.5/lb
  • Payback 2.5 year pay-back
  • Assumes U3O8 price of US$ 80/lb
  • Ore grade: 255ppm U3O8
  • Concentrate grade: 1,743ppm of U3O8
  • Production: 2m lbs pa of U₃O₈.
  • Life of Mine : 17 years
  • Capex : US$230m
  • Offtake contract: 150,000lbs pa U₃O₈ under fixed price terms averaging US$74.75/lb U₃O₈ and 150,000lbs U₃O₈ per annum at spot less 4% discount over 7 years.
    • Offtake contracted volumes 2.1mlbsover 7-year term.
• Total mineral resource at Tiris host 91.3m lbs of contained U₃O₈.
• Current ore reserves total 40.3mt at an average grade of 254ppm U₃O_8, inc.
  • Proven Reserves of 19.3mt averaging 257ppm U₃O₈
  • Probable Reserves of 21.3mt at an average grade of 251ppm U₃O_8.
  • Discovery cost of US$0.14/lb”.

Conclusion:  Tiris is moving closer to its Final Investment Decision with the full support of the Mauritanian government

*SP Angel acts as Nomad and Broker to Aura Energy

Atalaya Mining (ATYM LN) 399p, Mkt Cap £612m – Updated 2024 production guidance

• Atalaya Mining reports its Q2 and H1 2024 production and updates its full year production guidance.
• Production of 11,583t of copper in concentrate during Q2 added to the 10,666t Q1 output brings H1 output to 22,249t of contained copper and prompts a revision of full year production guidance to 45-50,000t of contained copper (previously 51-53,000t).
• The quarterly output reflects the processing of 4.1mt of ore at an average grade of 0.33% copper (Q2 2023 – 4.1mt at 0. 40% copper)
• Issuing the revised guidance Atalaya Mining says that H2 will show “improved grades in H2 2024 as well as strong plant performance”.
• CEO, Alberto Lavandeira, explained that during the quarter “our production was affected by grades that were lower than expectation and as a result, we have adjusted our full-year production guidance. While this is disappointing, we anticipate improved grades and strong plant performance in the second half of 2024”.
• He also said that Atalaya Mining is continuing “to make progress at San Dionisio, which is expected to deliver higher grade material in the coming years”.
• The company continues to advance its strategy to substitute higher grade ore from the San Dionisio deposit for ore from the Cerro Colorado deposit and explains that waste stripping is continuing and it “continues to advance the permitting process associated with the San Dionisio final pit, which represents a key component of the integrated mine plan”.
• Also the longer term strategy is reflected by preparatory work for “an infill and step-out drilling programme” at the San Antonio deposit.
• Atalaya Mining also confirms that its 50MW solar power plant which is “expected to provide approximately 22% of Riotinto’s current electricity needs” is on course to start “in late 2024”.

Conclusion: Atalaya Mining has adjusted its 2024 production guidance to reflect weaker grades in the first half of the year while also progressing its plans to substitute higher grade ore supply to its 15mtpa plant at Rio Tinto though the development of the San Dionisio and San Antonio deposits.

Guardian Metal Resources (Formerly Golden Metal Resources) (GMET LN) 30.5p, Mkt Cap £34m – Strengthening the management team

Power Metals Resources* (POW LN) 19p, Mkt cap £20m

(Power Metals* holds a 51% stake in Golden Metal Resources)

1. Guardian Metal Resources (formerly Golden Metal Resources) reports the appointment of an Operations Manager and a ‘Strategic Advisor’ as it progresses its exploration portfolio in Nevada.
2. Winnemucca based metallurgical engineer, Jeff Snyder, has an industry career of more than 40 years largely spent in Nevada, where he has worked for “many major mining organizations, including most recently with Centerra Mining, as well as McEwen Mining & Newmont Mining Corporation” is appointed Operations Manager.
3. Mining strategy and finance specialist R. Michael Jones who is a geological engineer, and was recently “CEO and President of TSX-V listed Los Andes Copper Ltd” is appointed as a Strategic Advisor.
4. Welcoming the appointments, CEO, Oliver Friesen, stressed the importance of attracting a “group of highly skilled people in place” as it accelerates its exploration programmes including the Pilot Mountain tungsten project and gold and lithium projects.

*SP Angel acts as Nomad and Broker for Power Metals

Mkango Resources* (MKA LN) 5.2p, Mkt Cap £12m – HyProMag USA status update

• The Company reports on the status of the Feasibility Study for HyProMag USA, a 50/50 JV between CoTec and Maginito (79%/21% Mkango/CoTec).
• The study is now 50% complete and expected to be completed in 4Q24.
• Subject to a positive Final Investment Decision post FS completion, permitting is expected to commence 1Q25 with completion targeted within nine months (ie 4Q25).
• First recycled US magnet production is expected in 2H26.
• The team studies engineering and design requirements from the ongoing commissioning of the HyProMag facility in Tyseley, UK.
• Production is targeted for a minimum of 500tpa NdFeB with the option to expand to 800tpa.
• Project capital cost will be confirmed in 4Q24.
• Four potential ‘hub’ sites for the magnet production facility were selected in Fort Worth, Texas, with final selection expected in 4Q24.
• Initial ‘spoke’ facilities that will use HPMS vessels to recover NdFeB from spent equipment are considered in South Carolina and Nevada.
• High level discussions with potential feedstock suppliers and offtakers have commenced.
• The team also in discussions with US Federal and State authorities regarding potential funding and incentive opportunities.
• Under JV agreement, CoTec is covering the cost of the Feasibility Study and project development costs in the form of a shareholder loan to HyProMag US.

Conclusion: The team provides a status report on its JV with CoTec for permanent magnets recycling facilities in the US with FS related work now 50% complete and the report due 4Q24. FID is expected to follow shortly after with a view to complete permitting in 2025 and launch first production in 2H26. In parallel, JV is in discussions with authorities regarding potential government related funding to establish rare earth magnet recycling using HPMS technology in the US.

*SP Angel acts as nomad and broker to Mkango Resources

Premier African Minerals (PREM LN) 0.08p, Mkt Cap £25m – Update on the Zulu lithium project.

• Premier African Minerals provides an update on their Zulu lithium plant in Zimbabwe.
• The Company has now installed the additional conditioning tanks and commissioning is underway.
• Ore feed reportedly began on Friday.
• Management expects to increase spodumene recoveries from the float circuit modification.

SolGold* (SOLG LN) 9.6p, Mkt Cap £264m – US$750m financing for Cascabel

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• SolGold reports a US$750m gold streaming agreement to progress the Cascabel project in Ecuador.
• The funds are being provided jointly by Franco Nevada (70%) and by Osisko (30%) and will be made up of an initial US$100m, to be paid in three tranches the first US$33.4m of which will be paid today, followed US$33.3m in 2025, subject to milestones including “completion of the geotechnical drilling, and finalization of the tailings storage facility (“TSF”) design sufficient for a minimum of 10 years of operation” and a final US$33.3m, which is expected by the end of 2025 “upon certain conditions precedent being met, including, but not limited to, submission of all final permit applications for the construction and operation of the Project and the TSF” (Tailings Storage Facility).
• The balance of the funding (US$650m), the ‘Construction Deposit’ is subject to “certain conditions precedent having been met, including, but not limited to, a board-approved Final Development Investment Decision and evidence of the availability of all equity and other sources of funds for full funding to completion”.
• Franco Nevada and Osisko will receive 20% of the gold in concentrate from the project “until 750,000 ounces of gold have been provided, after which the percentage will reduce to 12% for the life of the mine”.
• “The Syndicate will make ongoing production payments to SolGold equivalent to 20% of the spot gold price at the time for each ounce of gold delivered to the Syndicate under the Agreement”.
• The company’s pre-feasibility study describes an underground block-caving operation with an initial 28-year mine life generating an after-tax NPV_8% of US$3.2bn and IRR of 24% from the production of an average of 123,000tpa of copper, 277,000ozpa of gold and 794,000ozpa of silver.
• Based on the pre-feasibility study, the first 750,000oz of gold due under the agreement looks likely to be delivered within the first 3 years of operations.
• The planned mine is based on a ‘Proven and Probable’ ore reserve of ~540mt at an average grade of 0.60% copper, 0.54g/t gold and 1.6g/t silver containing 3.2mt of contained copper, 9.4moz of gold and 28moz of silver with 85% of the reserve tonnage falling within the high-confidence, ‘Proven’ classification of the CIM reporting codes.
• The ore reserves are contained within 3.01bn tonnes of ‘Measured and Indicated’ resources at an average grade of 0.35% copper, 0.28g/t gold and 0.94g/t silver (reported as 0.52% on a copper equivalent basis) and we imagine that the conversion of at least some of these resources, and the possible identification of additional resources during the mining could trigger the need to extend the agreement beyond the initial 33 years term.
• Following a two-year ramp-up, the mine plan builds to producing 12mtpa of high-grade ore averaging 1.5% on a copper equivalent basis with a doubling of the production rate to 24mtpa in year 6.
• Costs, on a net basis after precious metals by-product credits, are estimated to average US$0.25/lb with life-of-mine costs on an all-in-sustaining (AISC) basis of US$0.69/lb and the project is expected to require a further US$2.57bn of sustaining capital during its life.
• Today’s announcement confirms that “management continues to review additional funding options for Project development to fully fund the US$1.55 billion required for the Cascabel Project”, including off-take agreements with smelters and funding by international development banks.
• President & CEO, Scott Caldwell, noted that the streaming agreement “not only secures a significant portion of the capital required to fund the construction of Cascabel but also validates the vast potential of the Cascabel Project. The US$100 million dedicated to de-risking and technical work is crucial for the next steps in our project development.”
• The CEOs of both Franco Nevada and Osisko expressed their continuing support for the project with Jason Attew of Osisko describing Cascabel as “one of the most significant copper-gold discoveries in recent history” and Paul Brink of Franco Nevada saying that it “will be amongst the next generation of large copper development projects”.

Conclusion: The US$750m gold streaming agreement by well-established names in the industry provides an important element of the US$1.55bn required for the Cascabel project and may encourage others to become involved in financing the development of what Franco-Nevada’s CEO describes as one of the next generation of large copper mines.

*SP Angel acts as broker to Solgold

Sunrise Resources (SRES LN) 0.05p Mkt Cap £2.4m – Drilling starts at Pioche Sepiolite Project

• Sunrise reports it has received approval for Phase 2 drilling and trenching at the Pioche Sepiolite Project in Nevada.
• A rig is being mobilised to site and will begin immediately. to extend known deposits of sepiolite.
• Tolsa is funding and managing the drilling programme.
• Tolsa holds an option to purchase $1.4m with future payments of 3% revenue-based royalty on production.

Thor Explorations* (THX LN) 14.75p, Mkt cap £100m – Q2 Operating update

• Nigerian gold producer Thor reports 2Q24 production results.
• The Company poured 21.7koz over the period, milling 174kt ore at an average grade of 3.42g/t.
• Mine production of 492kt at an average grade of 1.78g/t Au. Gold recoveries of 94.6% for 18koz.
• Thor reports they hold 38.3koz Au in ore stockpiles, at an average grade of 1g/t.
• The team released 3,652oz in circuit by implementing the carbon in leach circuit upgrade.
• Thor also paid down $7.9m to its Senior Debt Facility, leaving $7.9m remaining due to be repaid by the end of 2024.
• Underground expansion exploration at Segilola continues, with structural studies. End of the quarter to see the completion of Phase 1 underground drilling.
• 15,000m drilling programme begun in Senegal, with highlights including 24m at 3.5g/t Au.
• Focus on drill target delineation at Douta West, Sofita and boosting the Makosa East oxide resource.
• PFS for Douta due 2H24, to include updated MRE.
• Mapping, soil sampling and drilling for lithium at Thor’s Nigerian spodumene targets.
• Guidance maintained at 95-100koz Au at AISC of $1,100-1,200/oz for FY24.

*A member of the SP Angel research team holds shares in Thor Explorations

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, 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