SP Angel Morning View -Today’s Market View, Monday 2nd June 2025

Gold rises as Trump hikes steel tariffs, dollar slides and the US and China argue in public over violations on trade agreements

MiFID II exempt information – see disclaimer below

Aura Energy* (AURA LN) – Positive indications for Swedish Government easing of uranium mining ban

Empire Metals* (EEE LN) – Starting Maiden MRE drilling programme

Ferro-Alloy Resources (FAR LN) – Framework Agreement for Balasausqandiq

GreenRoc Strategic Materials Plc (GROC LN) – Funds raised to advance Amitsoq graphite project in South Greenland

Focus Xplore – formerly Katoro Gold (FOX LN) – Initial field work at the Bay Road prospect validates the exploration model

Mkango Resources* (MKA LN) – 1Q25 update highlighting progress at its RE recycling, upstream and midstream portfolio of projects

Resolute Mining (RSG LN) – Ravenswood Gold sale called off

Rockfire Resources (ROCK LN) – NED appointment brings mineral resource expertise

Rome Resources (RMR LN) – Resource estimation started for Bisie North project, DRC

SolGold* (SOLG LN) – Application to delist from the TSX

Gold ($3,350/oz) rises as Trump hikes steel tariffs, dollar slides and the US and China argue in public over violations on trade agreements

• The news pushed gold prices 2% ($58/oz) higher to $3,350/oz on increased trade tensions seeing rising haven demand.
• The US 10-year yield rose 2bp to 4.42%
• The US dollar index fell to 98.82 this morning vs 99.82 on Friday.
• The Yen strengthened slightly 143.03/$ vs 144.03/$,

• Trump has vowed to hike import tariffs on foreign steel and aluminium to 50%, pushing Canada to warn of retaliation.
• The US-China truce may potentially be at risk as a result, with China a major exporter of metal products.
• A major drone strike from Ukraine on Russian military airfields has knocked ~40 bombers used to launch missiles into Ukraine. Some think this may have reduced the potential for a peace deal.

Copper – We’ve Never Seen This Before in the World: Video: 

Podcast: https://audioboom.com/channels/4099560-the-sharepickers-podcast-with-justin-waite

Currencies

US$1.416/eur vs US$1.334/eur previous, Yen 143.03/$ vs 144.03/$, SAr 17.914/$ vs 17.872/$, US$1.356/gbp vs US$1.348/gbp, US$0.648/aud vs US$0.642/aud, CNY 7.199/$ vs 7.195/$

Dollar Index 98.82 vs 99.82.

Precious Metals

Gold US$3,355/oz vs US$3,297/oz previous

Gold ETFs 88.7moz vs 88.7moz previous

Platinum US$1,053/oz vs US$1,073/oz previous

Palladium US$978/oz vs US$974/oz previous

Silver US$33.6/oz vs US$33.3/oz previous

Rhodium US$5,500/oz vs US$5,425/oz previous

Base metals:

Copper US$9,614/t vs US$9,555/t previous

Aluminium US$2,469/t vs US$2,443/t previous

Nickel US$15,379/t vs US$15,257/t previous

Zinc US$2,656/t vs US$2,662/t previous

Lead US$1,975/t vs US$1,955/t previous

Tin US$30,304/t vs US$31,334/t previous

Energy:

Oil US$64.1/bbl vs US$63.5/bbl previous

Henry Hub Gas US$3.57/mmBtu vs US$3.54/mmBtu last Friday

• Oil prices stabilised after OPEC+ announced another 411kb/d output hike for July, following similar increases in May and June, as part of an agreement to gradually return 2.2mb/d of voluntary additional cuts to the market.
• The US Baker Hughes rig count was down 3 to 563 units last week (-37 or 6% y/y), with oil rigs down 4 to 461 units (-35 y/y) and gas rigs up 1 to 99 units (-1 y/y), with Canada also dropping 2 rigs to 112 units (-16 y/y).
• EOG Resources has agreed to acquire 675,000 acres of adjoining Utica acreage from the Canada Pension Plan Investment Board and Encino Energy for $5.6bn, inclusive of net debt. EOG plans to fund the acquisition through $3.5bn of debt and $2.1bn of cash on hand and generate over $150m of synergies in the first year.

Natural Gas €34.4/MWh vs €35.4/MWh previous

Uranium Futures $71.6/lb vs $71.6/lb previous

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$100.1/t vs US$100.8/t

Chinese steel rebar 25mm US$469.5/t vs US$469.5/t

HCC FOB Australia US$189.5/t vs US$190.0/t

Thermal coal swap Australia FOB US$103.0/t vs US$102.5/t

Other:  

Cobalt LME 3m US$33,251/t vs US$33,700/t

NdPr Rare Earth Oxide (China) US$60,086/t vs US$60,207/t

Lithium carbonate 99% (China) US$8,601/t vs US$8,768/t

China Spodumene Li2O 6%min CIF US$655/t vs US$685/t

Ferro-Manganese European Mn78% min US$995/t vs US$1,113/t

China Tungsten APT 88.5% FOB US$397/mtu vs US$388/mtu

China Graphite Flake -194 FOB US$425/t vs US$430/t

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

Europe Ferro-Vanadium 80% US$24.4/kg vs US$24.4/kg

China Ilmenite Concentrate TiO2 US$287/t vs US$287/t

Global Rutile Spot Concentrate 95% TiO2 US$1,465/t vs US$1,513/t

Spot CO2 Emissions EUA Price US$65.1/t vs  US$65.1/t

Brazil Potash CFR Granular Spot US$365/t vs US$357.5/t

Germanium China 99.99% US$2,825.0/kg vs US$2,825.0/kg

China Gallium 99.99% US$395.0/kg vs US$395.0/kg

Battery News

Automakers must build cars in the US says President Trump

• Automakers, including Tesla, must build their vehicles and all parts in the US rather than manufacturing abroad, President Donald Trump said on Friday.
• Trump made the comments during a press conference marking Elon Musk’s final day as a senior adviser to the White House.
• “He’s going to end up building his whole car here. Pretty much he does,” Trump said referring to Musk. “All of the manufacturers will build their parts here too.”
• Earlier this year the Trump administration imposed a 25% tariff on imported vehicles and auto parts that the auto industry has said will disrupt supply chains and raise car prices.
• Trump continued in his press conference saying it “bothered” him that automakers had parts manufactured in different places, “…but over the next year, they’ve got to have the whole thing built in America. That’s what we want.”

BYD targeting 15,000 1MW fast charging stations in China

• BYD will build 15,000 of its 1MW ultra-fast charging stations in China.
• The automaker will collaborate with Xiajou to build 10,000 of the stations and 5,000 with LongShine.
• BYD unveiled its ultra-fast charger supporting up to 1-MW charging power on March 17, claiming it can add 2km of range to an EV in one second or 400 kilometers in five minutes.

Company News

Aura Energy* (AURA LN) 6p, Mkt Cap £55m – Positive indications for Swedish Government easing of uranium mining ban

(Aura Energy hold 100% of Tiris Uranium and 100% of the Häggån Project in Sweden, Häggån hosts 2.5bnt of vanadium, SOP ‘sulphate of potash’ and uranium resource)

• Aura Energy reports that its management has held discussions in Sweden with members of the governing coalition on the potential reversal of Sweden’s current ban on uranium mining.
• Today’s announcement explains that “Sweden currently generates one-third of its electricity from nuclear power but relies entirely on imported uranium… [and that the] … Swedish Government has planned to double the production of low-cost, reliable nuclear power by at least twice the current capacity. Allowing uranium extraction from Sweden’s natural resources will enhance energy security, create jobs, and promote economic growth”.
• The company explains that it “welcomes the clear direction of government policy in removing the ban and the strong commitment shown by politicians to attract investment into the country’s mining industry … [and reminds readers that its] … Häggån deposit is one of the largest undeveloped uranium resources globally with an Inferred Mineral Resource of 800Mlbs of contained U₃O₈”.

• Chairman, Phil Mitchell, welcomed the “Swedish Government’s step towards lifting the uranium mining ban … [and said that] … Aura Energy is proud to playing a leadership role in advancing Sweden’s uranium sector”.

• Aura Energy also confirms that it will invest “A$100,000 for a minority stake in Neu Horizon Uranium Ltd and collaborate with Neu Horizon in several areas including:

o   Government and regulatory engagement”; and

o   “Technical cooperation on uranium extraction and processing”; and

o   “Administrative synergies to enhance operational efficiency”; and

o   “Joint participation in a 2025 investor symposium in Stockholm”.

• Neu Horizon Uranium is described as “an Australian based unlisted public company focused on advancing Sweden’s uranium resources”. The company holds a portfolio of high potential uranium projects including, the Vilhelmina Shale-Hosted Uranium Project, the 12,000 hectare Ravenberget Shear-Hosted Uranium Project in Norrbotten County and the Gillberget Shear-Hosted Uranium Project – also covering 12,000 hectares in central Sweden
• Mr. Mitchell said that the collaboration with Neu Horizon Uranium “positions us to capitalise on the country’s exceptional geological endowment and support its uranium ambitions”.

Conclusion: Aura Energy reports positive indications of a relaxation of Sweden’s ban on uranium mining which may provide a development avenue for the company’s Häggån deposit.  Aura is also expanding its uranium exposure in Sweden via collaboration with New Horizon Uranium.

*SP Angel acts as Nomad to Aura Energy

Empire Metals* (EEE LN) 11p, Mkt Cap £73m – Starting Maiden MRE drilling programme

• Empire announces today it has begun a drilling programme at the Thomas Prospect to deliver a maiden JORC MRE.
• The MRE will target the higher-grade titanium mineralisation hosted within the in-situ weathered cap.
• 164 holes are planned, split between 124 AC holes over 6,700m and 40 RC holes over 4,000m for a total of 10,700m.
• The Company has chosen to target Thomas for the maiden MRE owing to the thicker and higher-grade mineralisation over the prospect.
• Thomas drilling has returned intercepts averaging 6.2% TiO2 over 54m on average.
• The programme is expected to take four/five weeks.
• Empire Metals has recently raised £4.5m, with funds to be used for both MRE drilling and metallurgical testwork, followed by mining studies.

*SP Angel acts as nomad and broker to Empire Metals

Ferro-Alloy Resources (FAR LN) 8p, Mkt Cap £42m – Framework Agreement for Balasausqandiq

• Ferro-Alloy, developing the Balasausqandiq project vanadium deposit in Kazakhstan, reports a non-binding, non-exclusive framework agreement.
• The Agreement is with China National Chemical Engineering Sixth Construction to design and construct Phase 1 of the Balasausqandiq project.
• CC6 and the company will negotiate with the aim of reaching the award of the EPC contract.
• CC6 specialises in engineering, design and constructing industrial processing plants and has completed over 4,000 projects, including working on c.50 vanadium related projects.

GreenRoc Strategic Materials Plc (formerly GreenRoc Mining) (GROC LN) 2.8p, Mkt Cap £7.07m – Funds raised to advance Amitsoq graphite project in South Greenland

• GreenRoc report the raising of £450,000 from an institution at 2.5p/s ~7% discount to the previous day’s bid price not including the value of the warrants issued.
• The company issued 18,000,000 new shares
• Warrants: The company issued a warrant for every two shares issued. Eg 9,000,000 warrants with an exercise price of 3.75p/s and a term of two years.
• Warrant accelerator:  if at any time over the next two years the 10-day volume-weighted average price of GreenRoc shares exceeds 5.0p the company can force the warrant holders to exercise.
• Funds use: General working capital for business development:

• • Collect a 10-20t graphite ore bulk sample from underground at the Amitsoq mine;
  • Fees for the application for exploitation licence submitted last summer;
  • Base-line studies for EIA.

• GreenRoc recently receive a non-binding LoI ‘Letter of Interest’ from the EIFO ‘Export and Investment Fund of Denmark’ for funding on the Amitsoq Graphite Project in South Greenland.

Conclusion:  The funds are useful for advancing the Amitsoq graphite project.

Focus Xplore – formerly Katoro Gold (FOX LN) 0.05p, Mkt Cap £1.1m – Initial field work at the Bay Road prospect validates the exploration model

• Focus Xplore reports that interpretation of LIDAR data from its Bay Road rare earth element (REE) project in Ontario has identified “linear geological features across the project area” currently interpreted as “potential felsic intrusive rocks and pegmatites”.
• These features are considered analogous to “a 6 kilometre-long felsic dyke … interpreted by Focus Xplore’s technical team to be related to nearby lake sediments that are highly anomalous for REE dysprosium and neodymium”.
• The 425 hectare Bay Road site is located “directly south of the fertile White Otter Batholith and is prospective for REE. The property is centred around a 6 kilometre-long felsic dyke mapped by the Ontario Geological Survey”.
• Today’s announcement confirms that “Geologists in the field have confirmed that multiple pegmatitic features within felsic intrusive rocks are associated with linear features identified from the LiDAR data. These have been mapped and sampled as part of the ongoing field programme”.
• CEO, Patrick Cullen, welcomed the success in “making the connection between our desktop interpretations and observations made in the field”.
• He explained that “The next step is to gather all the field data together and perform further analyses of samples back in Thunder Bay. I look forward to providing further updates on this and the activities at our other projects”.

Conclusion: Early-stage geological field assessment of LiDAR data from the Bay Road prospects supports Focus Xplore’s office-based interpretations and we look forward to the results of continuing field exploration.

Mkango Resources* (MKA LN) 17p, Mkt Cap £53m – 1Q25 update highlighting progress at its RE recycling, upstream and midstream portfolio of projects

BUY

• The Company released its quarterly operational and financial update.
• Operationally, the team continued to advance its portfolio of projects focused on recycling, upstream and midstream segments of RE value chain.
• On recycling, HyProMag USA, a 50/50 JV between HyProMag (79% Mkango) and CoTec, will study a potential to expand proposed magnet recycling and manufacturing facility in the US.
• Additionally, the JV will study a potential for an integrated long loop chemical processing to complement short loop or magnet to magnet operation.
• On upstream and midstream, the team continues to work on a potential spin out of the Songwe Hill Project in Malawe and the Pulawy Separation Project in Poland via a merger with a NASDAQ listed SPAC.
• The proposed Separation Plant was designated a strategic status by the European Commission in late March as Europe recognises the importance to secure the supply of critical minerals key for such sectors as transport electrification, renewables, consumer electronics, robotics and defence.
• EBIT -US$1.3m (1Q24: -$1.0m) mostly reflecting G&A costs of $1.3m.
• PAT -$2.4m (1Q24: -$1.0m) with $1.1m relating to a non cash charge recognised in relation to outstanding warrants.
• CFO -$0.9m (1Q24: -$0.3m).
• FCF -$1.1m (1Q24: $0.5m).
• Closing cash balance stood at $3.0m and no bank debt as of 1Q25 end.
• The Company raised ~$3.0m in February at 8p with proceeds to fund ongoing recycling business development costs in the UK and German.

Conclusion: Mkango offers a potential source of permanent magnets in the West using patented HPMS magnet to magnet recycling process. We are looking forward to commissioning of HPMS facilities in the UK, Germany and the US. Once running at commercial scale the process opens up another source of supply of critical minerals in the market dominated by China. The importance of secure sources of RE supply was further highlighted by the news late last week that the latest US/China trade truce is at risk of falling apart as the latter is limiting RE exports.

*SP Angel acts as nomad and broker to Mkango Resources

Resolute Mining (RSG LN) 29p, Mkt Cap £640m – Ravenswood Gold sale called off

• Media reports that the Ravenswood Gold sale has been called off as bidders failed to meet owners’ price expectations. (AFR)
• The biggest gold operation in Queensland sold 179koz generating A$528m in 2024.
• That is up on 68koz produced in 2019, the final year Resolute run the operation.
• Resolute sold Ravenswood to a consortium of EMR Capital, a PE fund, and Golden Energy and Resources, Singapore-listed mining/energy Group, in 2020.
• Total consideration was A$300m with A$200m in performance based payments including A$50m linked to a performance of the gold price (paid) and up to A$150m linked to the result of a divestment of the mine.
• Resolute also holds a A$64m promissory note relating to the sale that is due for repayment December 2027.
• Sales in 2024 would imply ~US$2,000/oz realised gold price compared to ~$2,400/oz average spot prices.
• The mine is reported to have reported A$76m in losses because of its “hedge” contracts selling gold at lower prices.
• EMR said it will keep the mine and spend around A$100m this year expanding a tailings dam and opening up new zones for mining.
• EMR and Golden Energy may attempt another sale in ~18months of two year’s time.

Rockfire Resources (ROCK LN) 0.1p, Mkt Cap £4.3m – NED appointment brings mineral resource expertise

• Rockfire Resources reports the appointment of former Rio Tinto executive, Steven Hunt as a non-executive director.

• During a career of over 26 years with Rio Tinto, Mr. Hunt, who is currently “Chair of the Australasian Joint Ore Resource Committee (“JORC”) and has been for the last 11 years … [served as its] … Chief Advisor Orebody Knowledge and 5 years as Chief Advisor Resources and Reserves, both global roles”.
• Today’s announcement confirms that Rockfire Resources is currently awaiting “the approval of its planned resource upgrade drilling program by the Greek government” for its Molaoi zinc project in Greece.  Mr. Hunt’s expertise will, no doubt, be particularly valuable in the planning and execution of the forthcoming campaign.

Rome Resources (RMR LN) 0.3p, Mkt Cap £17.7m – Resource estimation started for Bisie North project, DRC

• Rome Resources reports that the MSA Group has started mineral estimation work on its Bisie North project, comprising the Kalayi and Mont Agoma prospects in the North Kivu Province, DRC.
• “Completion of the maiden MRE is targeted for around the end of June 2025 … [and the company confirms that as well as an MRE] … an assessment will be made of the prospects for eventual economic extraction”.
• Today’s announcement confirms continuing exploration drilling at Mont Agoma where three rigs are deployed “targeting deeper tin mineralisation beneath the shallower copper-zinc zones”.
• CEO, Paul Barrett, explained that the rapid progress of drilling at Mont Agoma is progressing “what we believe is a large-scale, high-value copper-tin-zinc-silver system”.
• He said that the “geology is shaping up as we had hoped – with copper and zinc dominant near surface and tin strengthening at depth – confirming the zonation model we are targeting. This resource will be our first formal step in defining scale and value at Bisie North, and we plan to follow it with a further updates once assay results from our current deeper drilling campaign are available”.
• With drilling continuing in parallel with the resource estimation, Rome Resources explains that “an update to the initial maiden MRE is expected following receipt of new assay results from the current campaign”.

Conclusion: We forward to the initial mineral resource estimate for insights into the geological setting, extent and tenor of the mineralisation and a first look at its potential economic viability.

SolGold* (SOLG LN) 7.17p, Mkt Cap £212m – Application to delist from the TSX

1. Solgold reports that it has applied to delist its shares from the TSX and confirms that “shares in the Company will continue to trade on the Main Market of the London Stock Exchange”.

• Explaining the background to the decision, the company says that TSX trading “only accounted for less than 3% of the aggregate trading volume on both platforms … [and consequently Solgold] … believes that the financial costs and administrative requirements associated with maintaining its TSX listing are no longer justified”.
• Today’s announcement confirms that “Shareholder approval is not required for the delisting because the Company’s ordinary shares trade on the LSE, which is an acceptable alternative market in accordance with Section 720(b) of the TSX Company Manual”.

*SP Angel acts as broker to Solgold

LSE Group Starmine awards for 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 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

SP Angel                                                            

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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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