SP Angel Morning View -Today’s Market View, Monday 1st July 2024

Copper demand to rise significantly with shift to cleaner energy sources in India

MiFID II exempt information – see disclaimer below

Anglo American (AAL LN) – Operations suspended at Grosvenor mine, Queenland

Ariana Resources (AAU LN) – Completion of merger with Rockover Holdings

Bluejay Mining* (JAY LN) – Potential for hydrogen and helium by the Geological Survey of Finland on Outokumpu licenses

Bushveld Minerals* (BMN LN) – Orion agrees to provide up to $10m buying Company more time to close on Vanchem disposal and FY23 accounts

Caledonia Mining (CMCL LN) – Quarterly dividend maintained

Eurasia Mining* (EUA LN) – Temporary suspension

Goldstone Resources* (GRL LN) – FY23 accounts

Karelian Diamonds (KDR LN) – £329k placing to fund exploration

Kore Potash* (KP2 LN) – US$1.3m fundraising

Mkango Resources* (MKA LN) – Long loop pilot plant commissioned at Tyseley

Oriole Resources* (ORR LN) – Renewal of gold exploration licenses in Cameroon

Orosur Mining* (OMI LN) – Orosur likely to regain 100% of Anzá project in Colombia for 1.5% NSR

Power Metals Resources* (POW LN) – Completion of initial exploration at the Balthaga lithium project

Rainbow Rare Earths (RBW LN) – Placing and royalty agreement with Ecora Resources

Copper demand to rise significantly with shift to cleaner energy sources in India

• Copper demand will rise significantly as the world shifts to cleaner energy sources, according to Hindustan Copper CMD Ghanshyam Sharma.
• Domestic refined copper demand growth in India is expected to remain strong at 11% in FY25, outpacing global growth due to infrastructure development and renewable energy transition.
• In India, 40% of copper is consumed by the infrastructure and construction sector, with 11-13% each in the automobile and consumer durables sectors.
• Government initiatives like affordable housing, smart city projects, the defense sector, and higher penetration of EVs are expected to boost domestic copper demand.
• Hindustan Copper is tasked with utilizing India’s copper resources efficiently and sustainably.

Economics

China – Manufacturing sector contracted for a second consecutive month in June with services sector growth slowing to a five month low, according to NBS PMIs tracking activity in major SOEs.

• Manufacturing PMI came in at 49.5, unchanged from May and in line with Reuters estimates.
• Services PMI dropped to 50.5 from 51.1 in May, the lowest since December.
• Construction PMI fell -2.1% mom to 52.3 in June, the lowest since July last year.
• On a more positive note, a private survey gauge came in at 51.8 for the manufacturing sector, up on 51.7 recorded in May.
• Land acquisition fell 35.8% YoY by China’s top 100 developers to CNY380bn despite stimulus
• The authorities have reduced mortgage rates and now require smaller deposits for first-time buyers.
• Some cities are encouraging the expansion of affordable housing programs
• Relocation of people from rural areas into the cities is to be subsidised in some areas to help drive ongoing urbanisation and property buying.
• Undeveloped land will be bought back and pushed out to new developers
• China Southern Power Grid fixed asset investment plan rises 23.5% yoy to CNY173bn for 194 projects.

South Africa – Cyril Ramaphosa, ANC president, forms new coalition to lead South Africa

• The ANC will work with 10 other parties in the Government of National Unity. They are:
• African National Congress, Democratic Alliance, Patriotic Alliance, Inkatha Freedom, Party, Good Party, Pan Africanist Congress of Azania, Freedom Front Plus, United Democratic Movement, Al Jama-ah, Rise Mzansi and the United Africans Transformation.
• The partnership between the GNU parties is guided by a Statement of Intent, which outlines fundamental principles and a minimum programme of priorities.
• All the parties have made a commitment to respect the constitution and to promote a accountable and transparent governance, evidence-based policy and decision-making, the professionalisation of the public service, integrity and good governance.
• The incoming government will prioritise rapid, inclusive and sustainable economic growth and the creation of a more just society by tackling poverty and inequality.
• Leaders are concerned over the effect of a protracted process on confidence and stability but have built a relatively quick consensus on the tasks of government.
• The ministries of Electricity and Energy will be merged.
• There will be a separate ministry of Mineral and Petroleum Resources.
• The ministry of Agriculture will be separated from the ministry of Land Reform and Rural Development.
• The ministry of Higher Education will be separated from the ministry of Science, Technology and Innovation.
• The ministry of Justice and Constitutional Development will be separated from the ministry of Correctional Services.
• There will no longer be a Ministry of Public Enterprises with the coordination of the relevant public enterprises will be located in the Presidency during the process of implementing a new shareholder model.
• We are hopeful the new coalition will help Ramaphosa to enact the anti-corruption and other reforms he has had so much trouble implementing.

Currencies

US$1.0722/eur vs 1.0701/eur previous. Yen 160.88/$ vs 160.88/$. SAr 18.083/$ vs 18.274/$. $1.265/gbp vs $1.265/gbp. 0.668/aud vs         0.664/aud. CNY 7.267/$ vs 7.266/$.

Dollar Index 105.87 vs 105.96 previous.

Precious metals:         

Gold US$2,327/oz vs US$2,327/oz previous

   Gold ETFs 81.0moz vs 81.0moz previous

Platinum US$996/oz vs US$1,002/oz previous

Palladium US$977/oz vs US$963/oz previous

Silver US$29.14/oz vs US$29/oz previous

Rhodium US$4,650/oz vs US$4,700/oz previous

Base metals:   

Copper US$ 9,599/t vs US$9,596/t previous

Aluminium US$ 2,525/t vs US$2,515/t previous

Nickel US$ 17,291/t vs US$17,230/t previous

Zinc US$ 2,938/t vs US$2,973/t previous

Lead US$ 2,224/t vs US$2,199/t previous

Tin US$ 32,739/t vs US$32,980/t previous

Energy:           

Oil US$85.0/bbl vs US$87.0/bbl previous

• The US Baker Hughes rig count fell by 7 units w/w to 581 rigs last week (-93 or 14% y/y), with oil rigs down 6 to 479 units (-66 y/y) and gas rigs down 1 to 97 units (-27 y/y) as Texas lost 5 units to 277 rigs (-64 y/y).
• Media reports that NEO Energy is in merger talks with Repsol’s UK business to create one of the largest UK E&Ps with 110kboe/d production that could make use of the latter’s material tax loss position. UK fiscal uncertainty makes cash-based deals more difficult than relative value trades (like Ithaca’s merger with Eni UK).
• The Iberdrola and Copenhagen Infrastructure Partners joint venture that is building the Vineyard Wind 1 wind farm offshore New England has commissioned 10 turbines generating 136MW of 62 turbines that will deliver 806MW when fully operational, which makes the facility the largest operating offshore wind farm in the USA.

Natural Gas €34.0/MWh vs €33.9/MWh previous

Uranium Futures $85.7/lb vs $84.5/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$106.3/t vs US$106.3/t

Chinese steel rebar 25mm US$521.8/t vs US$521.9/t

Thermal coal (1st year forward cif ARA) US$114.0/t vs US$115.5/t

Thermal coal swap Australia FOB US$133.0/t vs US$131.5/t

Hard Coking Coal Australia FOB US$249.4/t vs US$249.0/t

Other:  

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

NdPr Rare Earth Oxide (China) US$49,950/t vs US$49,821/t

Lithium carbonate 99% (China) US$12,040/t vs US$12,042/t

China Spodumene Li2O 6%min CIF US$1,060/t vs US$1,060/t

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

China Tungsten APT 88.5% FOB US$350/mtu vs US$350/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% 26.85/kg vs US$26.85/kg

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

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

Spot CO2 Emissions EUA Price US$65.9/t vs US$65.9/t

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

Battery News

Polestar 3 Deliveries Begin After Delays As New RWD Variant Debuts

• Polestar 3 deliveries have begun after previous delays, with the first units handed over to customers in Gothenburg, Sweden.
• Additional deliveries are scheduled for Germany and Norway, with the American states of California, Illinois, Indiana, and New York soon to follow.
• Polestar introduced a new rear-wheel drive variant called the 3 Long Range Single Motor, available for order in Europe, priced at €79,890 in Germany and £69,900 in the UK.
• This new variant will be produced in China and the U.S., with orders opening for North America and Australia later this year.

Company News

Anglo American (AAL LN) 2433.5p, Mkt cap £33bn – Operations suspended at Grosvenor mine, Queenland

• Anglo American reports the suspension of operations its Grosvenor steelmaking coal mine in Queensland following “an underground coal gas ignition incident on 29 June 2024”.
• The company confirms that “the workforce was safely evacuated from the mine without injury … [and that it] … is working with specialist teams from the Queensland Mines Rescue Service and the regulatory authorities to extinguish the underground fire, prior to being able to assess the steps towards a safe re-entry into the mine”.
• Anglo American says that during H1 2024 it expects to produce ~8mt of steelmaking coal with the Grosvenor mine producing ~2.3mt (or around 29% of the total).
• Revised production guidance will be issued later but will no doubt reflect the length of the operational suspension and, presumably, the extent of any remedial measures required to repair any fire damage.

Ariana Resources (AAU LN) 2.35p, Mkt Cap £43m – Completion of merger with Rockover Holdings

• Ariana Resources reports the completion of its share-based merger/acquisition of Rockover Resources which holds the 1.8moz Dokwe gold deposit in Zimbabwe.
• Ariana is issuing ~688m additional shares representing around 37.5% of the enlarged company to Rockover’s shareholders and is appointing Rockover’s Nicholas Graham, who will have a beneficial holding of “357,946,873 ordinary shares representing 19.52% of the Enlarged Group” to its board.
• Recently, reflecting Ariana Resources’ due diligence drilling and geological work, the company announced an updated JORC (2012) compliant mineral resource estimate (MRE) of 1.83moz hosted within 55.9mt at an average grade of 1.02g/t gold and including “the addition of Dokwe Central and revisions to the geological models at both Dokwe North and Central”.

Conclusion: The completion of the acquisition of Rockover Resources provides an opportunity to advance the potential development of a Zimbabwean gold project.

Bluejay Mining* (JAY LN) 0.35p, Mkt cap £5.2m – Potential for hydrogen and helium by the Geological Survey of Finland on Outokumpu licenses

(Bluejay Mining holds 100% of the Hammaslahti and Enonkoski projects and all its Greenland prospects)

• Bluejay Mining report the potential for the discovery of helium and hydrogen gases on its Outokumpu licenses in Finland.
• The GTK ‘Geological Survey of Finland’ have previously identified potential for helium and hydrogen within serpentinised ophiolites and associated geological formations, in the Outokumpu Belt.
• A review of historical government drill data indicates potential for helium and hydrogen with:

• • 100m at 5.6% helium (within an intersection of 1500m, at 1.5% helium).

• The structure is reported to be comparable in it’s formation and structure with the world’s largest known deposit of hydrogen which was recently discovered offering potential for 46mt of hydrogen in Lorraine, France.
• Other industrial gasses such as argon, xenon, krypton, hydrogen and helium are also seen in the drilling.
• Examination of historic drilling is planned with a view to re-entering these holes to undertake further testing using modern testing equipment.
• There will be considerable cost savings if the drill holes can be located and tested. Eg the holes have not closed over time. Some holes are >1000m in depth
• Bluejay has also acquired seismic data to help identify areas with the highest potential.
• Bluejay annual results released on Friday report a loss of -£1.81m last year vs -£1.66m in 2022
• This combined with currency translation differences rises to -£2.45m in 2023 vs £-3.16 in 2022.
• The company ended the year with £201k of cash vs £2m at end 2022.

Conclusion:  Bluejay’s new focus on helium and hydrogen has led it to reexamine other license areas for their industrial gas potential.  The work done by the GTK in Finland is prospective and interesting.

*SP Angel acts as nomad and broker to Bluejay Mining. The analyst has visited Dundas in Greenland and the Hammaslahti and Enonkoski projects in Finland.

Bushveld Minerals* (BMN LN) 0.7p, Mkt Cap £14m – Orion agrees to provide up to $10m buying Company more time to close on Vanchem disposal and FY23 accounts

• Orion agreed to provide up to $10m in new capital matching additional funding on a $ for$ basis received from SPR since 03 May 2024.
• Frist repayment of the Orion term loan facility ($28.3m) that was due 30 June 2024 (est. ~$7m payment) was deferred until 31 December 2025.
• Interest will be capitalised until the first repayment date with repayments to be made in 16 equal quarterly amounts thereafter.
• In addition, Orion royalty will be increased pro rata to the amount drawn under the $10m facility for the duration of the term loan.
• The royalty rate will be:

• • Between 0.264% and 0.5% with a realised vanadium price per kgV of less than US$47/kgV or
  • Between 0.216% and 0.405% with a realised vanadium price per kgV of greater than US$47/kgV.

• On the later of 30 June 2027 or the full repayment of the loan, royalty payment rates will be reduced by 50%.
• Orion will be entitled to nominate a director on the Company’s Board with the drawdown on the facility is subject to SARB approval.
• SPR has now received all necessary consents from Orion to allow the Company to dran on tranches two and three of additional working capital facility.
• Separately, the Company released FY23 accounts highlighting challenging operating environment at Vametco and Vanchem amid weak vanadium prices.
• Revenues totalled $137m (FY22: $148m) driven by lower realised prices of $33.9/kgV amid a slightly stronger sales volumes of 4.1ktV (FY22: $41.4kgV and 3.6ktV).
• EBIT amounted to -$83m (FY22: -$20m) including a $59m impairment loss (FY22: $24m) largely comprised of a writedown in value of Mokopane ($50m) and Vanchem ($8m) to reflect agreed divestment value with SPR.
• Unit costs that include sustaining capex for the period amounted to $51.0/kgV (FY22: $43.7/kgV).
• Adjusted EBITDA estimated at -$7m (FY22: $22m).
• PAT came in at -$104m (FY22: -$39m).
• FCF was -$12m (FY22: $2m).
• Closing cash balance stood at $1m with outstanding debt (incl lease) at $107m (FY22: $14m and $90m).
• Near term targets include completion of the 100% Vanchem divestment, streamlining operations at Vametco to reach cash generation status, achieve 240mtV run rates at Vametco by Q4/24 and complete the sale of non-core assets (incl Cellcube, Lemure, electrolyte facility).

Conclusion: Annual accounts reflect a 18% drop in vanadium prices taking operating cash flow into the negative that combined with cost inflation, working capital constraints, high interest costs on the back of high leverage and impairment costs from revaluation in Vanchem and Mokopane led to a >$100m FY23 loss. The team plan is to streamline operations at Vametco, close on Vanchem disposal as well as divest non core assets to reduce cash burn that once vanadium prices recover should help the Company turn its fortunes.

*SP Angel act as nomad and broker to Bushveld Minerals

Caledonia Mining (CMCL LN) 780p, Mkt Cap £150m – Quarterly dividend maintained

• Caledonia Mining has declared a quarterly dividend of 14US¢/share. Payment is due on 26^th July.
• The latest quarterly dividend maintains the level at 14US¢/share first announced in October 2021.
• As we have alluded to in the past, Caledonia Mining 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.

*SP Angel mining analysts have visited Caledonia’s mining operations in Zimbabwe

Eurasia Mining* (EUA LN) SUSPENDED – Temporary suspension

• Trading in shares on AIM has been temporarily suspended from today pending the Company releasing its FY23 annual accounts.

*SP Angel act as Nomad and Broker to Eurasia Mining

Goldstone Resources* (GRL LN) 0.7p, Mkt Cap £7m – FY23 accounts

• Revenues amounted to $2.2m (FY22: $8.9m) with 1.3koz of gold produced and shipped (FY22: 5.2koz).
• The Company reports 1.4koz in production in H1/24 implying a running rate of 225oz per month.
• The Board believes it can maintain production at least at these levels over the coming months.
• EBIT came in at -$1.4m (FY22: -$0.5m) reflecting low levels of production, working capital constraints and cost inflation.
• PAT totalled -$2.7m (FY22: -$0.7m)
• FCF was -$2.9m (FY22: -$1.0m) funded with a £2.4m convertible loan note issued in Jan/23 to Blue Gold International (8%pa, 3.25p conversion price, due 30 Nov/24).
• Closing cash balance stood at $0.1m with $8.1m in outstanding debt as of YE (FY22: $0.1m and $3.8m, respectively).
• Post period end the Company agreed to extend the standstill agreement with Asian Investment Management by two years to 31 December 2025 regarding the outstanding gold loan (~1.9koz) while also completing an equity raise.
• The Company highlights in accounts that it may, in due course, seek to raise additional capital to support increasing its rate of production and additional exploration activities to increase the Company’s resource base, and to reduce creditors.

*SP Angel acts as broker to Goldstone Resources

Karelian Diamonds (KDR LN) 1.63 pence, Mkt Cap £2.6m – £329k placing to fund exploration

• Karelian Diamonds has announced a placing of shares at 1.5p/share to raise £328,747 for exploration of the nickel/copper/PGM potential in Northern Ireland and further exploration of its diamond targets in Finland.
• Director support for the fundraising amounts to an aggregate ~£55k or approximately 17% of the total.
• In Finland, the company says that it “appears close to discovering … [the] … source … [the source of a green diamond discovered in till] … at Lahtojoki”.
• Highlighting a recent report on the nickel/copper/PGM potential in Northern Ireland, Chairman, Prof. Richard Conroy, said that the “fundraising comes at an exciting time for the Company”.

Kore Potash* (KP2 LN) 1.4p, Mkt Cap £59m – US$1.3m fundraising

• Kore Potash reports that it has raised US$1.28m via the issue of ~91.8m additional shares at a price of 1.1p/share “to certain existing shareholders as well as new institutional and high net worth investors”.
• 87.5m will be issued within the Company’s existing ASX listing rules capacity while the balance of 4.3m shares is subject to shareholder approval.
• Use of proceeds “will be used to further advance the work that is expected to lead to the signing of an EPC contract for the Kola Potash Project” in the Republic of Congo.
• David Hathorn intends to subscribe for $60k.
• Harlequin Investments, a 12.9% investor in the Company, will be subscribing for $115k.
• The additional shares represent approximately 2% of the enlarged capital of Kore Potash.

*SP Angel acts as Nomad and Broker to Kore Potash

Mkango Resources* (MKA LN) 6.1p, Mkt Cap £17m – Long loop pilot plant commissioned at Tyseley

• The Company has successfully commissioned a long loop recycling pilot plant at Tyseley Energy Park in Birmingham.
• The process involves processing of NdFeB magnet scrap to produce rare earth carbonates and oxides via a chemical route.
• The process complements the short loop HyProMag magnet recycling technology that treats spent equipment to directly recover NdFeB containing magnets.
• The plant is run by Mkango Rare Earths UK, a 100% owned subsidiary of Maginito that is in turn owned by Mkango (79.4%) and CoTec (20.6%).]
• The project was 70% funded by the UKRI’s Driving Electronic Revolution Challenge as part of the grant funded programme “Secure Critical Rare Earth Magnets for the UK” (SCREAM).
• Project partners include HyProMag, Bowers & Wilkins, European Metal Recycling (EMR), GKN Automotive, Jaguar Land Rover, and the University of Birmingham.
• The plant will be used to optimise long loop pilot operations studying the cost structure and carbon footprint of the baseline process.

Conclusion: The team delivers on its plans to commission long loop pilot plant complementing patented HPMS technology. The long loop process expands recycled product range to include rare earth carbonates and oxides in addition to recycled magnets produced using HPMS as well as allows to treat NdFeB HPMS powder not suitable for short loop recycling or for processing of magnet swarf (i.e. the powder produced form grinding and finishing magnets).

*SP Angel acts as nomad and broker to Mkango Resources

Oriole Resources* (ORR LN) 0.36p, Mkt cap £14m – Renewal of gold exploration licenses in Cameroon

(Central Licence Package 90% owned by Oriole Cameroon SARL. Mbe is 80% owned in Eastern CLP)

CLICK FOR PDF

• Oriole Resources reports the renewal of its five gold exploration licences in the Eastern Central Licence Package in Cameroon.
• The licenses are located in the Adamawa and North regions and represent a contiguous, district-scale land package covering 2,266km2.
• Mbe: BCM International, a mining contractor is currently funding up to US$4m exploration expenditure to earn up to a 50% interest on the Mbe prospects.
• A 5,500m trenching programme is underway on MB01 with results anticipated in the third quarter
• Drilling should start at Mbe in Q4.
• There are three targets at on the MB01 prospect:

o  A 1.15km x 0.75km soil anomaly showing ‘pervasive gold deposition’

o  A 0.95km x 0.75km anomaly showing over 50ppb Au in soils

o  A 0.5km x 0.5km anomalous zone along strike to the northeast.

• Pit sampling has provided results up to 260g/t Au from 556 samples with 160 samples from artisanal pits showing grades over 0.5g/t Au.
• A 100m x 50m sampling programme is expected to highlight further parallel mineralised trends in the licence with results are due in Q3.

*SP Angel acts as Broker to Oriole Resources

Orosur Mining* (OMI LN) 4.2p, Mkt Cap £8.3m – Orosur likely to regain 100% of Anzá project in Colombia for 1.5% NSR

(Anzá 100% indirect ownership proposed)

• Orosur Mining are in negotiations to regain control of effective 100% ownership of the Anzá project in return for a 1.5% Net Smelter Royalty and potential deferred cash payments.
• The Anzá project is currently held within a local vehicle, Minera Monte Águila SAS, 50:50 joint venture between Newmont and Agnico Eagle

• • “The parties continue to work in good faith to finalise the details of the share purchase agreement and the negotiation of ancillary agreements that form the basis of the proposed transaction.
  • There are no material changes to the terms of the transaction as set out in the LOI. However, finalisation of details and determination of the need for approvals will continue in July.”

• Orosur management have been working on planning and community consultations in preparation for taking over as operator on the project.
• Conclusion:  It is typical for major companies to drop peripheral projects when merging. The work done by Newmont / Agnico Eagle will help move the project forward while the concentration of the project within Orosur should enable management to move more quickly in terms of new work programs.

*SP Angel acts as Nomad and Broker to Orosur Mining

Power Metals Resources* (POW LN) 17.25p, Mkt cap £19m – Completion of initial exploration at the Balthaga lithium project

1. Power Metal Resources reports the completion of its initial exploration programme at the Balthaga lithium project located around 450km east of Jeddah, Saudi Arabia.
2. The work is part of an agreement with RIWAQ Al Marawid allowing Power Metals to earn a 30% interest in the 1200km² exploration area in the eastern part of the Saudi Arabian Shield.
3. Work comprised a desktop review of historical information as well as an initial site visit by the company’s geological team, including the collection of rock chip samples.
4. The company says that “Once results are received and a more detailed interpretation of all the newly acquired data is processed, Power Metal will be in a position to plan the next stage of exploration to advance the project”.

*SP Angel acts as Nomad and Broker for Power Metals

Rainbow Rare Earths (RBW LN) 9.75p, Mkt cap £59m – Placing and royalty agreement with Ecora Resources

• Placing: Rainbow Rare Earths report the placing of US$1.5m through the placing of 10.4m new shares at 11.3652p
• Royalty: Rainbow have also signed of a royalty agreement with Ecora Resources for US$8.5m.
• The Gross Revenue Royalty is for 0.85% on future rare earths production from the Phalaborwa project in South Africa.
• The GRR increases to:

• • 0.95% if production does not occur prior to 1 October 2027
  • 1.1% if production does not occur prior to 1 July 2028
• Use of funds: completion of the Phalaborwa DFS in H1 2025 and all other Company financing requirements up to June 2025..

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.

DISCLAIMER

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

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

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

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

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

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

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

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

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

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

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