SP Angel Morning View -Today’s Market View, Monday 4th September 2023

Risk sentiment picks up post US NFPs and Chinese property sector related news

MiFID II exempt information – see disclaimer below

Fundraising request for ChildFund Rugby charity

• RusselI Lamming Chairman of Keras Resources is cycling to the Stade Francais in Paris from Twickenham to deliver the whistle for the Rugby World Cup.
• Russell is raising funds doe ChildFund Rugby.
• Please donate art: https://www.givengain.com/ap/russell-lamming-raising-funds-for-childfund-rugby/

Sarn Helen Gold (Private, full EIS tax relief) – Exploring for Gold in Wales and Scotland

www.sarnhelengold.wales

• Sarn Helen holds five Crown Option Agreements covering over 1,200sqkm in Wales around the historic Dolaucothi Gold Mineand in Peeblesshire, Scotland.
• The Sarn Helen team is led by geologist, Mike Armitage, formerly of SRK.
• Analysis is ongoing on soil and stream sediments, panning, mapping and rock chip sampling along with 120m of core from three historic boreholes.
• Three potential drill targets have been identified near to the Dolaucothi mine:
  • Target 1. Soil samples with grades of up to 0.9g/t over a 500m strike length.
  • Target 2. Outcropping rock chips up to 6.16g/t.
  • Target 3. High grade soil samples >1g/t.

• Rock chip samples collected in Peeblesshire have graded up to 7.95g/t Au.

• Management are looking for £150,000-200,000 to fund field and laboratory-based work to end Q2 2024 for targets to justify a drilling programme in 2025.

*SP Angel’s role is limited to making introductions and interested parties should be aware that investment in a private company can present certain risks not present in listed companies (e.g. limited or no liquidity and no rules compelling disclosure of information to investors). This offer is open to professional investors only and is not offered to retail investors.

Beowulf Mining* (BEM LN) – Update on Grafintec strategy as management looks to feasibility study

BHP (BHP LN) – Court ratifies Samarco’s reorganisation plan

Blencowe Resources (BRES LN) – Bulk sample completion confirms high-grade concentrate from Uganda

Conroy Gold and Natural Resources (CGNR LN) – Additional drilling targets identified in the Longford Down Massif

Leo Lithium (LLL AUL) -– Leo Lithium shares resume trading as company reports suspension on DSO shipments

Kodal Minerals* (KOD LN)

Liontown Resources (LTR AU) – Liontown board accepts Albemarle’s ‘best and final’ offer of A$3/share

Phoenix Copper* (PXC LN) – Metallurgical test results from the Empire mine, Idaho

Resolute Mining (RSG LN) – Infill drilling delivers increased resource at Syama North

Nickel prices climb as Indonesia supply concerns mount

• Nickel prices have bounced off their sub-$20k/t lows, climbing towards $20,850/t.
• The move follows reports of tightening ore supply out of Indonesia, China’s primary supplier.
• Indonesia has been hit by a delay in mine production, causing the country to start buying ore from the Philippines. (Reuters)
• Jakarta has also suspended operations at state miner Aneka Tambang over corruption concerns.
• Stronger steelmaking data is also supporting prices.

Gold prices hold steady following volatile trade on US labour data

• Gold prices flattened at $1,945/oz after a volatile day on Friday following the release of US nonfarm payroll data.
• Data came in at 187k jobs added vs 170k expected by economists.
• Gold initially climbed owing to a number of revisions to previous data showing weakening labour markets, and a higher unemployment rate, hitting $1,955/oz in the spot market.
• Yields subsequently climbed again in US Treasuries, causing gold to pare any gains made on the initial move.
• Whilst markets in the US are closed today, focus turns to factory orders tomorrow, the Bank of Canada’s rate decision on Wednesday and labour and consumer data due on Thursday and Friday.

Economics

Ryanair air traffic hit a new record in August in the busiest month of the year.

• The Company which is the Europe’s largest airline by passenger volume flew 18.9m passengers in August, up from 16.9m a year earlier and 14.9m recorded in the pre-Covid summer of 2019.

US – Labour numbers released on Friday showed a moderation in the pace of labour earnings with unemployment rate picking up to .8% on the back of an increase in the labour force.

• NFPs climbed by 187k in August after climbing 157k in the previous month.
• Job gains averaged 150k per month over the past three months compared to 238k in the three months to May.
• Labour earnings climbed 0.2%mom marking the smallest increase since Feb/22 and down from 0.4%mom in July.
• Wages climbed 4.3%yoy compared to 4.4%yoy in July.
• Numbers follow news earlier last week that job openings, an indicator for labour demand, dropped to the lowest in almost 2.5 years in July.
• Expectations are currently the Fed will hold rates unchanged this month with markets pricing in a 63% chance that the tightening cycle is over, Reuters reports.
• The market also expects over 100bp of rate cuts next year, up from around 90bp seen early last week.

China – Hang Seng and mainland China stock indices are up this morning as Country Garden agreed an extension to onshore debt repayments worth CNY 3.9bn (US$537m) providing local property sector some respite, Reuters reports.

• Country Garden shares climbed as much as 19% to their highest since mid August and were set for the biggest single day increase since November.
• Hang Seng mainland properties index climbed more than 9%.
• Separately, the government approved the establishment of a special bureau to promote the development and growth of the private economy.
• Private sector that is responsible for 80% of new urban jobs has been struggling lately on the back of weakening local demand.

PBoC cut RRR ‘reserve requirement ratio’ for exchange accounts to 4% from 6%.

• The central bank also cut mortgage rates for first time buyers and reduced deposit ratios in some cities.
• Xi’s policy of ‘Dual Circulation’ to encourage domestic consumption is back on the agenda, and it needs to be with exports falling.
• Chinese consumption was just 40% of GDP in 2021 vs the US at 68% in 2022
• In theory it should be relatively simple to encourage Chinese citizens to spend more and save less, in practice people are reluctant to spend when factories are cutting hours, staff, wages and productivity bonuese.
• Deflation in China is also persuading consumers to wait for cheaper prices, particularly for new property purchases.
• Chinese consumer savings are estimated at ~10% of GDP vs US consumer saving of ~4.7% of income..

Germany – Exports dropped 0.9%mom in July offering further evidence of a weak start to Q3/23, FT writes.

• Shipments to EU countries were up 0.5% while exports to non-EU destinations were down 2.5%.
• Exports to the US and China were up 5.2% and 1.2%.

Russia – President Erdogan and Putin are meeting in Sochi today to discuss a resumption of the grain deal that Russia pulled earlier in July.

Ukraine – President Zelensky replaces his defence minister, Oleksiy Reznikov, in a move that marks the biggest change to his government since Russia invaded Ukraine, according to FT.

• Reznikov is expected to be appointed as Ukraine’s new ambassador to the UK, according to local news reports.
• Rustem Umerov, an incoming minister, is an ethnic Crimean Tatar, a successful businessman and served as head of a state agency that oversaw privatisation of government assets.

Currencies

US$1.0806/eur vs1.0849/eur last week. Yen 146.34/$ vs145.48/$. SAr 18.780/$ vs18.786/$.$1.263/gbp vs$1.267/gbp.0.647/aud vs0.646/aud.CNY 7.267/$ vs7.263/$.

Dollar Index 104.05 vs 103.62 last week.

Commodity News

Precious metals:

Gold US$1,943/oz vs US$1,941/oz last week

Gold ETFs 89.8moz vs US$89.8moz last week

Platinum US$961/oz vs US$976/oz last week

Palladium US$1,226/oz vs US$1,229/oz last week

Silver US$24.11/oz vs US$24.51/oz last week

Rhodium US$4,100/oz vs US$4,100/oz last week

Base metals:

Copper US$ 8,466/t vs US$8,525/t last week

Aluminium US$ 2,210/t vs US$2,241/t last week

Nickel US$ 20,785/t vs US$20,630/t last week

Zinc US$ 2,475/t vs US$2,479/t last week

Lead US$ 2,218/t vs US$2,266/t last week

Tin US$ 25,935/t vs US$25,715/t last week

Energy:

Oil US$88.6/bbl vs US$87.0/bbl last week

• Crude oil prices strengthened into the weekend as traders cautiously positioned themselves ahead of the US Labor Day holiday today as we await further details on the OPEC+ supply cut agreement.
• The US Baker Hughes rig count was down 1 unit to 631 rigs last week (-129 or 17% y/y), as Texas dropped 1 unit to 319 rigs, with oil rigs unchanged at 512 units (-84 y/y) and gas rigs down 1 to 114 units (-48 y/y).
• The EIA reported last week that total US crude and condensates production rose to 12.8mb/d in June, up from 12.6mb/d in May, and fast approaching the record 13.0mb/d set in November 2019. US liquids production is expected to peak in 2H23 with gas production expected to peak a few months later due to falling rig numbers.
• Eni announced the sale of its onshore Nigeria E&P and power generation business to Oando, subject to the authorisation of all relevant local and regulatory authorities. Eni commented that the deal is consistent with the Company’s 2023-26 plan, which aims to divest assets that offer greater value and opportunities to new owners.
• Media reports that TotalEnergies plans to cut North Sea expenditures by 25% due to the Energy Profits Levy windfall tax, citing the need for greater fiscal stability in the UK.
• Media reports that state-owned PetroSA plans to sell half of its 20% stake to CNOOC in the offshore Block 5/6/7 in the Orange Basin, South Africa in order to fund its share in a planned wildcat exploration well.

Natural Gas US$2.704/mmbtu vs US$2.755/mmbtu last week

Uranium UXC US$58.25/lb vs US$58.25/lb last week

Bulk:   

Iron ore 62% Fe spot (cfr Tianjin) US$114.3/t vs US$113.5/t

Chinese steel rebar 25mm US$534.2/t vs US$534.5/t

Thermal coal (1st year forward cif ARA) US$125.5/t vs US$126.0/t

Thermal coal swap Australia FOB US$159.0/t vs US$159.5/t

Coking coal swap Australia FOB US$261.0/t vs US$261.0/t 

Other:  

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

NdPr Rare Earth Oxide (China) US$68,804/t vs US$68,841/t

Lithium carbonate 99% (China) US$26,902/t vs US$26,917/t

China Spodumene Li2O 6%min CIF US$2,910/t vs US$2,960/t

Ferro-Manganese European Mn78% min US$1,043/t vs US$1,047/t

China Tungsten APT 88.5% FOB US$310/mtu vs US$310/mtu

China Graphite Flake -194 FOB US$655/t vs US$655/t

Europe Vanadium Pentoxide 98% 7.1/lb vs US$7.1/lb

Europe Ferro-Vanadium 80% 31.25/kg vs US$31.25/kg

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

Spot CO2 Emissions EUA Price US$90.1/t vs US$90.5/t

Brazil Potash CFR Granular Spot US$355.0/t vs US$355.0/t 

Battery News

VW rollout of EV fast chargers making good progress

• The German automaker has installed half of the 40,000 fats chargers it has planned to install before 2025.

Tesla to begin construction of Mega Shanghai in near future

• The automaker is scheduled to begin construction in Q3 this year and start production in the Q2 ’24.
• The megafactory will produce its energy storage product Megapack.
• Tesla announced plans in April, but there have been no updates since then.
• Tesla’s Megapack is a rechargeable lithium-ion battery used for large-scale stationary energy storage.

Company News

Beowulf Mining* (BEM LN) 1.35p, Mkt Cap £17m – Update on Grafintec strategy as management looks to feasibility study

• Beowulf provides an update on its Grafintec graphite processing facility in Finland.
• Grafintec’s Graphite Anode Materials Plant (GAMP) will process graphite towards a final product tailored for anode manufacturing.
• The Company has secured a facility in the prime GigaVaasa area in Finland, a government-backed zone targeting energy storage facilities.
• The Company reported a positive feasibility study in July, with highlights including:
  • Post-tax NPV8 of $242m
  • Post-tax IRR of 39%
  • CAPEX of $117m
  • 2.4 year payback from commencement of operations.
  • Initial 10-year operating period with the potential for a lease extension.
  • Using a realised CSPG of $9,000/t..
  • Annual EBITDA of $79m.
• Recently, Grafintec appointed AFRY Finland Oy to conduct an Environmental Impact Assessment on the project, due for completion in 1Q24.
• The EIA will support Grafintec’s progress towards a Feasibility Study, with management expecting to provide investors with more detail over the forward-looking timeline over the next few months.
• As regards the Company’s upstream graphite project, Aitolampi, Grafintec notes that Steinert GmbH has been appointed to conduct sorting test work on the ore and waste materials.
• Testwork is intended to explore the potential for lower-cost processing for a pre-concentrate, high-grade graphite product.

*SP Angel acts as Nomad and Broker to Beowulf Mining

BHP (BHP LN) 2,348p, £49bn – Court ratifies Samarco’s reorganisation plan

• BHP reports that the Second Business Court of Belo Horizonte in Brazil has ratified the plans for Judicial Reorganisation of its 50% owned Samarco iron ore operations in Minas Gerais (Vale -50%) where a major tailings dam failure occurred in 2015.
• “The Judicial Reorganisation is an insolvency proceeding in Brazil and Samarco’s operations have continued during the Judicial Reorganisation proceeding” while Samarco faces “multiple enforcement actions by certain financial creditors which threatened Samarco’s operations” in the aftermath of the dam problem.
• BHP says that Samarco will now be able to “restructure its financial debts and establish a stable financial position to rebuild its operations and strengthen its ability to meet its Renova funding obligations”.

• The Renova Foundation was established “between Samarco, Vale and BHP Brasil and the Federal Government of Brazil, the states of Espirito Santo and Minas Gerais, and certain other public authorities in March 2016 … [to] … implement environmental and socio-economic programs to remediate and provide compensation for damage caused by the Samarco dam failure”.
• “Samarco will continue to have primary responsibility to fund the Renova Foundation and each of Vale and BHP Brasil will continue to have secondary responsibility to fund 50% of the Renova Foundation if Samarco does not meet its funding obligations under the Framework Agreement”.
• The restricting sanctioned by the Court “contains the terms of the debt restructure plan and under these terms, Samarco’s existing financial debt will be exchanged for up to US$3.7 billion of long-term unsecured debt. The new long-term debt will remain non-recourse to Samarco’s shareholders, BHP Brasil and Vale”.
• Today’s announcement confirms that “The restructure of Samarco’s debt, including payments to employees and suppliers and the issue of new unsecured debt to Samarco’s financial creditors, is expected to be completed in the first half of FY2024”.

Blencowe Resources (BRES LN) 5.3p, Mkt Cap £11m – Bulk sample completion confirms high-grade concentrate from Uganda

• Blencowe reports the completion of pre-qualification metallurgical test work from 100t bulk samples to China.
• The Company reports that the testing confirms a high-grade, low impurity concentrate at 95-97% TGC from the Orom-Cross project in Uganda.
• The testing highlights an increased coarse flake percentage in the product mix and higher recoveries.
• Blencowe reports positive feedback from end users as offtake agreements progress.

Conroy Gold and Natural Resources (CGNR LN) 14p, Mkt Cap £6.3m – Additional drilling targets identified in the Longford Down Massif

• Conroy Gold reports that a programme of deep overburden (DOB) sampling conducted as part of Demir Export’s earn-in programme has identified “new drilling targets over five licence areas. 4 new anomalous gold areas have been identified in the vicinity of the newly discovered Creenkill gold target, in Co Armagh”.
• The company says that a “total of 1,519 DOB samples have been collected over 5 separate areas (Creenkill 470 samples, Dunraymond 363, Rackwallace 137, Rockcorry 422 and Avalbane 127) within the Longford-Down Massif on a c.50m grid basis. 500 samples returned results greater than, or equal to, 10 ppb Au (samples of 10 ppb Au, or higher, tend to be associated with the presence of underlying bedrock gold). 11 samples returned results greater than, or equal to, 100 ppb Au”.
• Conroy Gold says that “A further DOB sampling programme is planned to extend the current coverage of DOB sampling to the Northeast … [and that] … Drilling is ongoing at Creenkill”.
• As well as the identification of the new drilling targets, Conroy Gold confirms that “over 6,000 metres of drilling has been completed to date in Phase 1 of the Company’s joint venture with Demir Export Drilling is ongoing at Creenkill”.
• Commenting on the progress of its exploration, Chairman, Prof. Richard Conroy, explained that the “DOB programme has substantially raised the prospectiveness of each of the five areas surveyed”.

Leo Lithium (LLL AUL) A$0.56, Mkt cap A$1.1bn -– Leo Lithium shares resume trading as company reports suspension on DSO shipments

Kodal Minerals* (KOD LN) 0.50p, Mkt Cap £95m

(Kodal / Hainan jv deal long-stop date to 31 August 2023)

• Leo Lithium shares resumed trading on the ASX following news that the government of Mali had suspended DSO shipments from the Goulamina lithium mine.
• Somehow we suspect the shipment of unprocessed DSO ‘Direct Shipping Ore’ was perhaps no part of the plan agreed with the government and can understand why the authorities have put a hold on this ‘unapproved’ activity as the idea of shipping unprocessed raw ores does not sit well with governments.
• In theory, the restriction should not delay the main Goulamina project with spodumene concentrate production on schedule for the Q2 2024.
  • “Mining continues as per the preexisting plan and mined ore is being stockpiled ahead of first spodumene concentrate production in Q2, 2024, which remains on schedule.”
• Leo Lithium also reports it sold 5% of the Goulamina jv to Ganfeng for $137m raising Ganfeng’s stake to 55% giving Ganfeng a seat at the negotiating table.
• Representatives of Ganfeng are now expected to take a more involved role in the government negotiations.
• Ganfeng also bought 9.9% of Leo Lithium equity for A$106.1 in May.
• Mali adopted a new mining code on 8 August which allows the government to buy an additional 20% stake in resource projects in addition to tis existing free carry on all mining projects of 10%.
  • https://investmentpolicy.unctad.org/investment-policy-monitor/measures/4352/mali-adopts-new-mining-code-increasing-the-state-and-local-participation-in-new-projects-
• The government also gets to appoint two government directors.
• Leo Lithium also previously reported: “The Government of Mali has the right to a 10% free carry interest in the Goulamina Lithium Project through a prescribed process. Initial discussions have commenced, and this process remains at an early stage with no defined timetable. The Government continues to work towards the general elections scheduled to occur throughout 2023 and conclude with Presidential elections in February 2024.“

*SP Angel acts as financial advisor and broker to Kodal Minerals

Liontown Resources (LTR Au) A$2.85, Mkt Cap A$6.3bn – Liontown board accepts Albemarle’s ‘best and final’ offer of A$3/share

• Liontown received a conditional and non-binding indicative proposal from Albemarle to acquire all shares of Liontown for $3/share in cash.
• The offer was Albemarle’s ‘best and final proposal.’
• The Liontown board has recommended the proposal to shareholders.
• Liontown had previously rejected a $2.50/share offer made by Albemarle in March.
• Liontown holds the Kathleen Valley project which expects to begin production in mid-2024, with committed spend currently standing at 60% by end of year.
• Kathleen Valley will proceed with DSO, with an on-site crushing operation secured and initial DSO shipment expected by the end of 2023.
• Liontown has a downstream agreement with Sumitomo and offtake agreements with LG Energy, Tesla and Ford.
• Kathleen Valley has a total MRE of 156mt @ 1.4% Li20 for 5.4mt LCE at a 0.55% COG.
• Albemarle already holds a 50% stake in Wodgina with 7.5mt LCE and a 49% stake in Greenbushes with 6.5mt LCE.

Conclusion: Despite recent lithium market weakness, Albemarle’s commitment to securing additional spodumene supply at premiums to market prices highlights their long-term commitment to hard-rock lithium projects. Spodumene continues to be targeted by major producers for development projects. Should the deal go through with shareholders, we wonder how the cash rich ex-Liontown investors will deploy their capital. Savannah Resources*, Atlantic Lithium* and Kodal Minerals* all hold promising spodumene development projects and may benefit from today’s Southern Hemisphere deal.

**SP Angel acts as Nomad to Atlantic Lithium, *SP Angel acts as Nomad and Broker to Savannah Resources *SP Angel acts as financial advisor and broker to Kodal Minerals.

Phoenix Copper* (PXC LN) 23.25p, Mkt Cap £29m – Metallurgical test results from the Empire mine, Idaho

(Phoenix holds 80% of the Empire mining property in Idaho)

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• Phoenix Copper has reported metallurgical results from crushing, grinding, flotation and leaching tests on composite drill core samples from the planned oxide open-pit at its Empire mine in Idaho.
• The company confirms that the test work has “identified two potential processes which merit further optimisation, namely flotation plus ATS … [ammonium thiosulphate] … and flotation plus sulphuric acid leach … [with both processes] … confined in agitated tanks”.
• The use of the ATS reagent, which the company has previously described as offering environmental advantages in recovering precious metals compared to the more widely used cyanide, to leach the flotation product recovered 92.7% of the gold and 73.0%% of the silver with 66.5% of the contained copper.
• The alternative acid leaching process is reported to recover 48.8% of the gold and 44.6%of the silver but delivered 87.8% recovery of the copper.
• Based on assumed commodity prices of US$1,875/oz for gold, US$18.75/oz for silver and US$4/lb (US$8,818/t) for copper the company says that flotation plus ATS leaching delivers revenue of US$64.42/t while flotation and acid leaching equates to US$57.80/t.
• CEO, Ryan McDermott, confirmed that “Additional optimization and costing of the flotation plus leaching scenarios will define the best process design for the Empire open pit. Continued test work and mine plan development will also determine whether it will be possible for the Company to minimize the Project’s footprint by constructing the agitated leach tanks on private property adjacent to the pit, which may offer significant environmental and economic benefit”.
• He also announced that “the drilling campaign on our Navarre Creek property is well underway … [with] …a total of 9,825 feet” (~2,995m) drilled so far and assay results expected “in early Q4”.

Conclusion: Metallurgical testing on core samples indicate that leaching using the ATS reagent, although delivering lower recovery rates for copper than the alternative acid leaching recovers sufficient precious metals that, at the company’s assumed metal prices, the ATS route delivers higher revenues per tonne.  Further analysis and optimisation is underway to identify the best process design.

*SP Angel acts as nomad to Phoenix Copper

Resolute Mining (RSG LN) 18.5p, Mkt Cap £394m – Infill drilling delivers increased resource at Syama North

• Resolute Mining reports a 47% increase in ‘Measured & Indicated’ mineral resources at its Syama North project in Mali following a programme of infill drilling during the first six months of 2023.
• The new estimate contains a total of 2.72moz of gold contained within 28.32mt of ‘Measured & Indicated’ resources at an average grade of 3.0g/t gold.
• Approximately 90% of the contained gold (2.46moz) is classified as ‘Indicated’ (25.77mt at an average grade of 3.0g/t) with the balance of 0.26moz (2.55mt at 3.2g/t) falling within the ‘Measured’ category.
• The “Global Mineral Resource Estimate (MRE) for Syama North has increased to 37.9 million tonnes, at an unchanged grade of 2.9g/t, for 3.53 million ounces of gold representing an increase of 11%” implying that the infill drilling campaign has successfully upgraded meaningful parts of the resource previously identified as ‘Inferred’.
• Our analysis suggests that between 2019 and 2022, Resolute Mining added a net 2.5moz of ‘Measured & Indicated’ resources after the production of around 1moz of gold at its Syama operations.

• The company confirms that the “majority of the Mineral Resource is located within 200m of surface highlighting the open pit potential of the deposit … [and that the] … deposit remains open down-dip over the entire 6km strike length with ‘step-out’ drilling resuming in the second half of 2023 with further increases in the Global Mineral Resource expected”.
• Resolute Mining explains that “Syama North is key to underpinning the 250,000 ounces per annum Phase I Expansion at Syama with high-grade open pit ore”. The Phase 1 programme also aims to “reduce the cost profile by up to $200/oz … by modifications to the oxide comminution circuit to enable it to process sulphide ore increasing overall sulphide processing capacity at Syama by 60% from 2.4Mtpa to 4.0Mtpa”.
• Chief Executive, Terry Holohan, said that the infill drilling and resulting resource increase at Syama North had been “an outstanding success … [and that] … recent shallow discoveries confirm the Syama Greenstone Belt under our control … remains vastly under-explored and capable of further significant expansions”.
• Drilling is continuing at Syama North and “is expected to extend throughout 2023 with the expectation of increasing the Mineral Resources … [focussing] … on open pit extractable Mineral Resources and will generally be restricted to mineralisation within 200m of the surface”.
• Sulphide “mineralisation remains open at depth and appears to be contiguous along the entire 6km strike length of the Alpha to A21 deposits”.

Conclusion: Infill drilling at Syama North has continued Resolute Mining’s record of mineral resource replenishment outstripping production and added an additional 47% (~1.8moz) to ‘Measured & Indicated’ resources and helping to underpin the current 250,000oz pa Phase 1 Expansion programme at Syama.

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                                                            

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35-39 Maddox Street London

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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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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%