SP Angel Morning View -Today’s Market View, Monday 16th October 2023

China struggles to contain CNY outflows as Bank of Cangzhou suffers run on Evergrande rumours

Metals climb as Beijing boosts liquidity support to banking system

MiFID II exempt information – see disclaimer below

Anglo Asian Mining* (AAZ LN) – BUY – Q3/23 production dips amid a Micon environmental audit

Corcel Plc (CRCL LN) – Sale of Mambare nickel / cobalt interest

First Class Metals (FCM LN) – Ontario exploration

Galantas Gold* (GAL LN) – Fifth hole returns a good close to surface gold/copper intersection

GreenRoc Mining* (GROC LN) – GreenRoc expands license area around Amitsoq graphite project

Liontown Resources (LTR Au) – Albemarle withdraws bid after Gina Rhinehart complicates takeover

Orosur Mining* (OMI LN) – JV Agreement in Nigeria for lithium pegmatite exploration

Savannah Resources* (SAV LN) – BUY, 21.1p – CEO maiden acquisition of shares

Scotgold Resources (SGZ LN) – Funding discussions update

Sovereign Metals* (SVML LN) – Frank Eagar and Julian Stephens join Sovereign board

Tertiary Minerals* (TYM LN) – BUY– Mushima North Soil Sampling Results

IGTV:  New lower lows in base metals keep coming – why? https://youtu.be/1KWgI2HTUGw?si=VlVfQtpW-mrI7slD

           Copper will still move up despite a gear shift down in carbon-zero targets  https://youtu.be/jbywf2hmEU8?si=yxJcwGiE1_V121Ok

VOX:  06/10/23:  https://audioboom.com/posts/8379837-john-meyer-on-diamond-price-weakness-petra-anglo-asian-bushveld-power-metal-resources

           29/09/23:  https://audioboom.com/posts/8375969-john-meyer-on-china-s-property-implosion-plus-atlantic-lithium-bushveld-sovereign-metals

*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.

Gold prices hover higher as traders eye Middle East contagion and Treasury yields

• The gold price is hovering above the $1,900/oz mark following a near $100/oz rally over the past week.
• The move reflected hopes of a peak in US long-duration interest rates and geopolitical concerns after Hamas attacked Israel and Netanyahu declared war.
• Speculators turned net-short gold for the first time in 11 months in October, with the 3% rally last week likely part-explained by short covering.
• If tensions with Iran escalate, expect additional inflows to safe-haven assets.
• US data this week includes today’s Empire State Survey, tomorrow’s Industrial Production and retail sales data from September and Thursday’s leading indicator report.
• The US economy remains strong, however gold and bond traders are eyeing any sign of weakness for the potential of a peak in US rates.

 Economics

China – Yuan under pressure as state and PBoC continues to move to restrict cash outflows as carry trade draws funds towards West

• China’s total social financing climbed to CNY4.12tn in September from CNY3.12tn in August

• Carry trade continues to draw capital out of China and into the US dollar with a US-China yield gap of 1.9% on in the 10-year treasuries
• This may explain the reticence for the Chinese authorities to lower domestic rates further in their stimulation of the Chinese economy.
• CPI inflation fell 0.0% yoy in September vs 0.1 August and US inflation running at 3.7% yoy

Beijing boosts liquidity measures to banking system

• The PBOC has conducted medium-term lending facility operations of $108bn to add liquidity to the banking system
• The Bank kept the one-year policy loan rate unchanged at 2.5% as expected.
• Analysts see the move as an effort to relieve stress on the banking sector.

Evergrande – Evergrande Debt sparks bank run on Bank of Cangzhou in Hebei province

• Chinese officials are appealing for order following the development of a crowd of people looking to withdraw funds from the Bank of Cangzhou in Hebei province.
• Social media posts claim the Bank of Cangzhou has lent billions of Yuan to Evergrande which first defaulted on its bonds 20 months ago.
• Evergrande now faces liquidation following the failure of restructuring plans on $329bn of debt.
• Bank of Cangzhou is reported to have assets of > CNY246bn ($34bn) at end-September
• While Evergrande has missed interest on some dollar bonds the group has is reported to have not yet defaulted on its total debt of $192bn.

Conclusion: In many respects Evergrande and Country Garden are too big and too important to fail. We expect the Chinese state to avoid its ‘Sub-Prime, Lehman Bros’ moment put in new management along with significant state support. This may look little different to the UK bailout of RBS after Lehman Bros. went down due to the systemic risk presented by the collapse.

Sweden – Sweden recorded lowest level of business activity in manufacturing in last 3 years in September

• Manufacturing activity has fallen over the last 10 consecutive months since sanctions were imposed on Russia.

Poland – Polish chemical plant Grupa Azoty S.A. incurred net losses of more than $125m in Q2 due to high natural gas prices caused by sanctions against Russia.

Currencies

US$1.0525/eur vs1.0538/eur previously. Yen 149.58/$ vs149.66/$. SAr 18.899/$ vs19.002/$. $1.217/gbp vs$1.219/gbp. 0.632/aud vs 0.632/aud. CNY 7.312/$ vs7.308/$.

Dollar Index 106.53 vs 106.47 previously.

Commodity News

Precious metals:

Gold US$1,910/oz vs US$1,878/oz previous

Gold ETFs 86.8moz vs 86.8moz previous

Platinum US$886/oz vs US$871/oz previous

Palladium US$1,154/oz vs US$1,141/oz previous

Silver US$22.7/oz vs US$22.1/oz previous

Rhodium US$4,750/oz vs US$4,750/oz previous

Base metals:

Copper US$ 7,984/t vs US$7,992/t previous

Aluminium US$ 2,199/t vs US$2,201/t previous

Nickel US$ 18,600/t vs US$18,600/t previous

Zinc US$ 2,457/t vs US$2,443/t previous

Lead US$ 2,040/t vs US$2,055/t previous

Tin US$ 25,087/t vs US$25,095/t previous

Energy:

Oil US$90.4/bbl vs US$87.2/bbl previous

• Crude oil prices moved higher over the weekend after Iran warned of a new front opening up in the conflict between Israel and Hamas if the blockade of Gaza continued.
• The US Baker Hughes rig count was up 3 units to 622 rigs last week (-147 or 19% y/y), with oil rigs rising by 4 to 501 units (-109 y/y) and gas rigs down 1 to 117 units (-40 y/y) and US oil production hitting a record 13.2mb/d.
• The US Department of Energy announced $7bn of funding on Friday to launch seven Regional Clean Hydrogen Hubs (H2Hubs) and accelerate the commercial-scale deployment of low-cost, clean hydrogen across the L48.

Natural Gas €55/MWh vs €56/MWh previous

Uranium

Uranium UXC US$69.00/lb vs US$69.00/lb previous

China’s Nuclear developments

• China has just completed a 600 Megawatt fast neutron reactor with Russian assistance, aiming for uranium, plutonium, and nuclear energy independence.
• The CFR-600 reactor, part of China’s plan for nuclear energy self-sufficiency, is operational in Fujian Province.
• The China Institute of Atomic Energy (CIAE) projects fast reactors to reach 200 GWe by 2050 and 1,400 GWe by 2100, significantly surpassing the US.
• Plans involve regular reactors, fast reactors, and offsite reprocessing facilities to minimize nuclear waste.
• Fast reactors generate neutrons splitting even-numbered isotopes of uranium, minimizing unburned nuclear fuel.
• Closing the fuel cycle aims to eliminate nuclear waste and unburned fuel, potentially allowing China to phase out coal power significantly by 2040.
• China plans to develop a commercial CFR1000 1000-1200 MWe fast reactor by the mid-2030s, with further plans for 350 GWd/t burnup reactors.

Core Power (Bill Gates) Begins Coolant Tests on Molten Salt Reactor Prototype

• Core Power, backed by Bill Gates, has initiated tests on a prototype molten salt reactor at a shore-based experimental plant in Everett, Washington.
• The consortium includes startups Core Power and TerraPower, along with Southern Company and the U.S. Department of Energy, aiming to develop fast-spectrum molten salt reactor technology for maritime applications.
• The reactor design uses solid uranium fuel mixed into a chloride salt that melts at high temperature, offering inherent safety advantages.
• The technology could provide enough energy to power a ship for 30 years without refueling, eliminating mid-life refueling challenges associated with traditional nuclear propulsion.
• Project partner TerraPower plans to use the technology for shore-based utility-scale power and has purchased land for a trial Natrium power plant in Wyoming, featuring a 345 MW sodium-cooled fast reactor.
• Most compact reactor designs currently rely on HALEU, with Rosatom being the only commercial vendor. Delays have occurred due to the unavailability of Russian HALEU products in the United States.

Bulk:   

Iron ore 62% Fe spot (cfr Tianjin) US$115.4/t vs US$113.1/t

Chinese steel rebar 25mm US$538.9/t vs US$540.1/t

Thermal coal (1st year forward cif ARA) US$133.0/t vs US$128.4/t

Thermal coal swap Australia FOB US$149.5/t vs US$144.5/t

Coking coal swap Australia FOB US$321.0/t vs US$321.0/t

Other:  

Cobalt LME 3m US$33,420/t vs US$33,420/t

NdPr Rare Earth Oxide (China) US$72,460/t vs US$72,554/t

Lithium carbonate 99% (China) US$21,690/t vs US$21,307/t

China Spodumene Li2O 6%min CIF US$2,230/t vs US$2,230/t

Ferro-Manganese European Mn78% min US$1,017/t vs US$1,030/t

China Tungsten APT 88.5% FOB US$300/mtu vs US$300/mtu

China Graphite Flake -194 FOB US$635/t vs US$635/t

Europe Vanadium Pentoxide 98% 6.5/lb vs US$6.6/lb

Europe Ferro-Vanadium 80% 28.25/kg vs US$28.75/kg

China Ilmenite Concentrate TiO2 US$315/t vs US$316/t

Spot CO2 Emissions EUA Price US$83.7/t vs US$84.3/t

Brazil Potash CFR Granular Spot US$345.0/t vs US$345.0/t

Battery News

China’s BYD Lands Order for 2,000 Electric Buses for Tashkent

• BYD, the Chinese EV and battery maker, has secured an order for 2,000 electric buses from the municipal government of Tashkent, Uzbekistan.
• The deal aims to promote the electrification of Tashkent’s public transport system, with the supply including BYD’s 12-meter eBus K9UD model.
• The first 200 electric buses are set to go into operation next year, although financial details of the agreement were not disclosed.
• BYD plans to provide tailor-made products and comprehensive after-sales service adapted to Tashkent’s climate and road conditions.
• As a global leader in electric buses, BYD has delivered over 78,000 buses to more than 400 cities in 70+ countries and regions.

Electric car manufacturers are making mistakes that are slowing EV adoption

• US automakers like Ford, GM, and Rivian are attempting to electrify pickup trucks. However, data shows that pickup truck buyers are the least likely to adopt EVs, with only 12% of full-sized and 8% of mid-sized truck buyers willing to go electric.
• Concerns include charging infrastructure, range, and most significantly, the higher price of EVs compared to gas-powered models.
• EV pickup models like Ford’s F-150 Lightning start at higher prices (closer to $50,000) compared to their gas-powered counterparts (around $35,000), deterring potential buyers.
• Most EV buyers are interested in midsize and compact cars rather than pickup trucks, according to data.

The Need for More Electric Vehicle Charging Stations in the US

• Currently, there is only one publicly available charger for every 26 electric vehicles, posing a challenge for EV owners who rely on these stations for convenient charging.
• The shortage of charging stations is attributed to factors such as lack of infrastructure, power availability, and limited parking spaces.
• Nxu Energy’s Nxu One Megawatt+ Charging System can charge various types of vehicles quickly and efficiently and aims to have charging stations available in every location people visit so EV owners can top without needing a full charge every time.

Indian Auto Billionaire Anand Mahindra Bets $1.2 Billion On Electric SUVs

• The chairman of Mahindra & Mahindra, plans to invest $1.2bn in electric SUVs over the next seven years.
• Mahindra, India’s largest SUV maker by revenue, started selling its first electric SUV, the XUV 400, in January with 10,000 bookings taken over a single weekend.
• Production of the ‘Born Electric’ range of SUVs is planned for 2024 with five models expected by 2027.
• Mahindra aims for green SUVs to constitute between 20% and 30% of its total SUV sales by 2027 helped by a new factory in Maharashtra with 200,000 EV capacity.
• Mahindra is a leading maker of electric three-wheelers in India and plans to expand by converting its tractor factory in Telangana to electric three-wheelers next year.
• EVs account for only 2% of total cars sold in India, but the government aims to increase this to 30% by 2030 but growth is hampered by a lack of charging infrastructure.

Mercedes-Benz to support EV customers with 50% road tax

• Mercedes-Benz India plans to support customers in states that levy road tax on EVs by covering 50% of the road tax cost.
• The support will be available to customers in states such as Assam, Jharkhand, Haryana, Telangana, Gujarat, Kerala, and Madhya Pradesh.
• This initiative is applicable for customers purchasing any of the three Mercedes-Benz EV models: EQB, EQS, and EQE SUV, during the month of October 2023.
• Additionally, the company is offering a sustainability loyalty bonus to customers across India who are transitioning from ICE vehicles to EVs.
• Mercedes-Benz reported 11% growth in overall sales from January to September 2023, delivering 12,768 cars during this period.

Company News

Anglo Asian Mining* (AAZ LN) 50p, Mkt Cap £57m – Q3/23 production dips amid a Micon environmental audit

BUY

• Q/23 production came in at 5.3koz GEOs (Q3/22: 14.3koz) as flotation and agitation leaching operations were suspending since the start of August 2023.
• 9M23 production amounted to 28.7koz (9M22: 43.1koz).
• Heap leaching production continued uninterrupted through the quarter.
• Production breakdown included:
• 4.2koz gold including 4.0koz produced by heap leaching;
• 251t copper reflecting roughly a month of flotation plant operations
• The Company is in discussions as to the protocol for the restart of operations at Gedabek.
• Q3/23 sales totalled 2.9koz at an average realised price of $1,949/oz and $3.1m (ex PSA) generated from sales of 2.4kt copper concentrate.
• FY23 production guidance reiterated at 30-34koz GEOs based on production from heap leaching operations through the remainder of the year only.
• The guidance will be adjusted should flotation and agitation production is resumed before year end.
• Net cash balance fell to $1.6m (Jun/23: $9.6m) with a further $7.0m held in inventory including $5.9m in gold and silver bullion and $1.1m worth of copper concentrate.
• Gross cash balance stood at $10.8m as of quarter end with additional $10m drawn form the International Bank of Azerbaijan under the revolving credit facility in early October 2023.

Conclusion: The quarter reflects results of flotation and agitation leaching operations’ suspension in August as Micon carried environmental review of Gedabek tailings and processing facilities. Encouragingly the review confirmed no contamination at Gedabek with the team now in discussions with authorities to resume operations as soon as possible. Meanwhile, the Company secured ample liquidity to keep operations on stand by while bringing forward maintenance works ready to restart once everything is agreed with authorities.

*SP Angel acts as Nomad and Broker to Anglo Asian Mining

Corcel Plc (CRCL LN) – 0.41p, Mkt cap £6.1m – Sale of Mambare nickel / cobalt interest

• Corcel plc reports that it has sold its 41% interest in the Mambare nickel/cobalt project in PNG to Integrated Battery Metals (IBM) for “up to US$4.1M”.
• The agreed consideration comprises
  • US$1.6m on completion with a further “US$1.4M payable in cash or the issuance of 1.5M shares of IBM at an issue price of USD1 per share at the discretion of Corcel”
  • A further US$1m in cash or shares is payable after 24 months with an additional US$0.148m “for the sale and purchase of Corcel’s gross smelter royalty in respect of the Mambare nickel/cobalt project”.
• Today’s announcement explains that IBM will “will provide Corcel an unsecured loan of US$1.6M which will be interest free and repayable upon either the completion of the sale of Corcel’s 41% interest” to help ensure that Corcel “is properly capitalised for its near term operations in Angola”.
• In June 2023, Corcel announced the sale of its Wo Wo Gap nickel project, also in PNG, to IBM requiring that the disposal of Mambare announced today will be subject to shareholder approval.

First Class Metals (FCM LN) 8.15p, Mkt Cap £6.4m –Ontario exploration

1. First Class Metals has provided a review of progress on its exploration projects in northern Ontario where it reports that is commencing systematic exploration of its Zig-Zag lithium project following receipt of assays of over 1% Li20 from sampling.
2. The company says that it has received “Preliminary results from thirty-nine samples … [at Zig-Zag]… with numerous results over 1% Li₂O … [and ]… full results pending”.
3. Today’s announcement explains that an “Extensive channel sampling campaign now completed with assays awaited … [from over 80 samples taken from over 250m of sampling] … visual observations of coarse spodumene evidenced across many of samples taken”.
4. The company confirms that it is aiming to bring one of its four principal exploration projects in Ontario (Zig-Zag, North Hemlo, Sunbeam and Esa) to a ‘drill ready’ position this season.
5. The Sunbeam and North Hemlo projects show gold potential with visible gold in samples from both properties reported in today’s announcement while soil sampling results are still awaited from a programme covering “eleven lines on average 400m apart, orthogonal to an inferred 4km shear” at the Esa prospect.
6. Commenting on the progress of exploration, CEO, Marc Sale, confirmed that two exploration teams remain on the ground and that both the “Sunbeam and Zigzag properties are permitted for drilling and with the support of the First Nations either of these properties or indeed North Hemlo … are veritable maiden drill targets” for the company.

Galantas Gold* (GAL LN) 12p, Mkt Cap £14m – Fifth hole returns a good close to surface gold/copper intersection

• The Company released assay results from its fifth exploration drill hole at the Gairloch Polymetallic Project in Scotland.
• 23-GL-05: 34m at 1.87g/t gold, 1.17% copper and 1.20% zinc from 10m.
• True width is estimated at 22m.
• The hole was completed 22m east of the last hole #4 (31m at 4.42g/t gold and 0.71% copper from 10m including 7m at 15.46g/t gold and 0.80% copper from 12m).
• The vertical hole was designed to test geophysical anomaly and acted as a stratigraphic hole.
• Previously, unknown areas of mineralisation were identified 100m below the main mineralised zone down to a depth of 144m, albeit, at lower grades (0.13g/t gold and 0.08% copper).
• The team is planning to carry a geophysics study over the 10km known mineralisation to prioritise drilling targets for a new planned drilling programme.

Conclusion: Drilling results from the fifth hole returned good close to surface intersections at the Kerry Road VMS type deposit that together with historical drilling delineating a mineralised trend of over 1km in strike and to a depth of 250m. The team is planning a geophysics study to identify priority drilling targets to extend the mineralised area.

*SP Angel acts as Broker to Galantas Gold

GreenRoc Mining* (GROC LN) 3.9p, Mkt Cap £5.7m – GreenRoc expands license area around Amitsoq graphite project

• GreenRoc has expanded the exploration license area around it’s historic Amitsoq Graphite mine in south Greenland.
• Ministerial approval was given just two weeks after signing the licence documents, with the whole licensing process taking three months.
• The new license area adds 24.52sqkm to the existing 48sqkm Amitsoq license and gives GreenRoc access to flat ground for infrastructure, such as buildings, storage, depot sites, and port facilities.
• Amitsoq is one of the highest-grade graphite projects in the world with potential for significant expansion within the local area.
• The Government of Greenland were happy to grant the license extension to GreenRoc based on the good work being done at Amitsoq and in the UK on potential future graphite anode development.
• The enlarged license area also ‘secures access to an area that will become important when we develop infrastructure around the mining operation’
• The additional area is also prospective for high-grade graphite similar to that at Amitsoq.
• The Amitsoq mine lies 20km to the Northeast of the Nanortalik town
• GreenRoc Resource Estimate and parameters for upcoming PEA:
  • 400,000t of ore output for
  • ~80,000t of graphite concentrate
  • 1.26mt of Measured Resource @ 22.05% Cg,
  • 6.12mt Indicated Resource @ 21.04% Cg from 2.04mt – a 200% increase over the 2022 MRE,
  • 15.67mt Inferred Resource @ 20.04% Cg from 6.24mt – a c.150% increase over the 2022 MRE,
  • Total: 23.05mt grading 20.41% Cg at a cut-off grade of 0% Cg JORC inferred.

Conclusion:  Its good to see the Government of Greenland moving so fast to issue new mineral exploration licenses to help advance the reopening of the Amitsoq graphite mine.  The new ground also includes metamorphic rock complexes similar to those hosting the Amitsoq and Kalaaq graphite deposits and nearby graphite mineralisation.

*SP Angel acts as broker to GreenRoc Mining

Liontown Resources (LTR Au) A$2.79, Mkt Cap A$6.6bn – Albemarle withdraws bid after Gina Rhinehart complicates takeover

• Albemarle reported yesterday that it is withdrawing its non-binding offer for Liontown Resources at A$3/share.
• The deal valued the Company at A$6.6bn, with their Kathleen Valley project the primary target.
• Gina Rhinehart’s Hancock Prospecting had been acquiring a sizeable position since the offer was announced, taking her stake up to 19.9%.
• Albemarle report that ‘moving forward with the acquisition is not in Albemarle’s best interests.’
• As a result of the withdrawal, Liontown has requested a suspension from trading and is currently working alongside Greenhill & CO and UBS, with an equity financing round expected.

Orosur Mining* (OMI LN) 2.3p, Mkt Cap £3.4m – JV Agreement in Nigeria for lithium pegmatite exploration

• Orosur announces its recent decision to begin lithium exploration in Nigeria.
• The Company has signed an exploration JV with a Nigerian company Jurassic Mines.
• Orosur holds the right to earn up to 70% equity in the Project via two phases:
  • Phase 1 – the Orosur subsidiary can earn 51% equity via a $3m spend over three years
  • Phase 2 – An additional $2m investment will take the Orosur ownership to 70% equity.
• Over the past 12 months, Orosur has been leveraging its management’s relations in Nigeria to acquire several interests in Nigeria’s lithium pegmatite districts.
• The Group has mobilised a team of geologists to begin preliminary reconnaissance work immediately.
• The Project currently covers 322km² over four licences on Nigeria’s primary pegmatite belt.
• The prospects lie over lithostructural corridors with known lithium pegmatite mineralisation on a regional scale.
• A wide-scale mapping programme in 2018 by the Nigerian Ministry of Mines and Steel Development has highlighted the substantial lithium pegmatite potential in country, with a dominance of pegmatites noted in the south.
• Nigeria is supportive of the development of a larger mining industry as it looks to diversify its economy’s reliance on oil production.
• The Company believes that its target areas bear similarities to the prolific pegmatite fields in northeastern Brazil.
• Artisanal miners currently exploit lithium-bearing minerals in Nigeria for high-value gemstones and tantalum.

Conclusion: This is an exciting time for Orosur as it expands its exploration portfolio to Nigeria, adding lithium prospectivity to its current suite of tin and precious metals assets in South America. Nigeria is relatively untapped for lithium, despite the swathes of pegmatites.We note Thor Explorations’ recent lithium discoveries in the south-west, where initial drill results recorded results including 11m @ 2.61% Li20 and 9m @ 2.42% Li20. We look forward to further updates from Orosur as they waste no time in beginning preliminary reconnaissance work before more targeted exploration programmes.

*SP Angel acts as Nomad and Broker to Orosur Mining

Savannah Resources* (SAV LN) 3.1p, Mkt Cap £57m – CEO maiden acquisition of shares

BUY – 21.1p

• New CEO, Emanuel Proenca, acquired £15k worth of shares in the market.
• Following maiden acquisition of shares CEO now holds 525k shares representing 0.03% of issued share capital.

*SP Angel acts as Nomad and Broker to Savannah Resources

Scotgold Resources (SGZ LN) SUSPENDED – Funding discussions update

• The Company is reporting that it is in advanced discussions with a new strategic investor regarding an emergency capital injection in the business.
• The news follows the announcement released earlier this month that a different prospective investor withdrew from a potential deal.
• The Company reports that should the current deal fail to materialise the team may nee d to appoint administrators.

 Sovereign Metals* (SVML LN) 21.45p, Mkt Cap £121m – Frank Eagar and Julian Stephens join Sovereign board

• Sovereign Metals have brought in Frank Eagar and Julian Stephens
• Frank Eagar is promoted to Managing Director and CEO from his previous role as General Manager in Malawi.
• Dr Julian Stephens, the existing Managing Director moves to a Non-Executive Director role
• Eagar is a chartered accountant and joins from AMED Funds a private equity group focussed on Africa where he was CFO for Central Copper Resources PLC.
• He was also CEO at Baobab Steel Limited, also controlled by AMED Funds where he completed a DFS and jv with the IFC.
• Eager also raised the project finance for Baobab’s US$1bn, permitted and integrated 500ktpa Steel and Vanadium Project in Mozambique.
• Julian first identified rutile mineralisation in Malawi in 2016 leading the team to the discovery of the Kasiya, world-class, rutile-graphite deposit.

Conclusion:  Frank Eager will oversee the optimisation of the Kasiya rutile, graphite project in Malawi in joint venture with Rio Tinto. The management change brings new expertise and talent into the group while retaining the experience and knowledge of the project gained within Julian’s tenure.

*SP Angel act as Nomad and broker to Sovereign Metals.  

Tertiary Minerals* (TYM LN) 0.15p, Mkt cap £2.95m – BUY– Mushima North Soil Sampling Results

CLICK FOR PDF

• Tertiary provides additional results from their Mushima North Copper Project in Zambia.
• 248 samples were taken at the A1 and A2 targets, focusing on sediment-hosted mineralisation, prolific to the Copperbelt.
• 311 additional infill samples were taken at A1 over a 100m x 100m grid.
• pXRF results at A1 have revealed an open-ended copper anomaly with results averaging 80ppm and peaking at 280ppm Cu.
• The Company notes a more localised anomaly over 400m x 150m at A1 with values ranging averaging 231ppm.
• A2 recorded higher copper-in-soil values, up to 1,239ppm, however the proximity to a marsh suggests this was transported, potentially from A1.
• The Company also reports the discovery of a new prospect west of A1, where values of 4,300ppm were recorded from pXRF targeting visible oxide copper mineralisation at surface.
• Tertiary will complete follow-up mapping and sampling on the aforementioned target, where malachite and chrysocolla have been found.

Conclusion: Target delineation in Zambia continues for Tertiary and it is encouraging to see the Company have now completed their goal of soil sampling all five of their Mwashia-linked targets. This is an exciting time for Tertiary as they begin to prioritise drill targets. Konkola West is currently under term sheet negotiations for a JV with an international mining company and management reports that ‘other projects have been subject to unsolicited JV interest from major companies.’

*SP Angel acts as Nomad and Broker to Tertiary Minerals

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

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*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)

+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

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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%