SP Angel Morning View -Today’s Market View, Monday 6th November 2023

Weak US Non-Farm Payrolls support Fed rates pause helping equities higher

MiFID II exempt information – see disclaimer below

We are looking for investors for a private exploration opportunity on a newly discovered copper / moly porphyry system in South-East Asia

• Annamite Resources has an ongoing joint venture with a Rio Tinto and is currently drilling its principal copper porphyry in Hinherb District, Laos
• >2,000m in 9 holes already drilled with intersections of visible chalcopyrite and molybdenite both disseminated and in B-veins
• Positive indications of grade at shallow depths. Total funding $2.34m to date. Current implied valuation $4.4m. Best drill result:
  • 60m grading 0.4% copper, 0.2% gold plus molybdenum from 24m eg. below the leached cap
  • 3m grading 0.51% copper, 9.2g/t gold, and 49g/t silver from 64m down hole
  • 2m grading 0.3% copper, 6% zinc and 9g/t gold, 40 g/t silver from 33m down hole related to a massive pyrite-magnetite-sphalerite-chalcopyrite vein
• Annamite also has two gold and silver epithermal structures with low capital potential.
• The projects are within 100km of the capital near the border with Thailand.
• The company is led by Chris Goss and Didier and Didier Fohlen ex IFC. See more info at: https://www.annamite-resources.com/

*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.

Bushveld Minerals* (BMN LN) – BUY,  9.1p (from 9.0p) – Q3/23 production climb as operations stabilise with FY23 guidance reiterated

Celsius Resources* (CLA LN) – BUY – Renewal of the Opuwo prospecting licence, Namibia

Eurasia Mining* (EUA LN) – Response to speculation

Greatland Gold (GGP LN) – Recent drilling shows continuity of mineralisation between the SE Crescent and Eastern Breccia zones at Havieron

Northern Graphite (NGC CN) – Resumption of graphite production as demand improves

Power Metal Resources* (POW LN) – Sale of Kavango shares raises £556k

Savannah Resources* (SAV LN) – BUY, 21.1p – Barroso strategic investors and partners selection process

Talga Group (TLG AU) – Equity raise for fund A$15m to develop Vittangi graphite Anode Project

Tertiary Minerals* (TYM LN) – BUY – Zambian project updates

Iron ore presses higher as China steelmaking accelerates

• Iron ore prices rose again to $122.4/t.
• The steelmaking ingredient rose 3% last week following renewed optimism over China infrastructure stimulus.
• Beijing vowed to shore up support for the property sector last week at its bi-decadely policy meeting.
• Mills are running hot, with average metal output over 2.4mt on a daily basis.
• Coking coal and coke prices are high and steel products are also rising in cost.

Gold prices slide as yields tick higher after Friday’s US Treasury rally

• Gold prices have ticked down to $1,986/oz following a spike over $2,000/oz in the spot market on Friday.
• The rally followed a series of weaker-than-expected US data points in the US, which supported a sharp rally in US Treasuries.
• Treasury yields and gold prices have an inverse relationship.
• The US 10 year fell to 4.5% having touched highs of 5% in October as the market consensus shifted to no recession.
• A miss in Non-farm payrolls on Friday supported bets in Treasuries as investors looked to lock in higher rates following a slowdown in hiring.
• The move seems to have normalised now, with the 10-year yield ticking higher towards 4.6%.

Economics

US – Weaker than expected employment numbers released last Friday support the case for a pause in rate hikes lifting market risk sentiment.

• Odds for a rate hike before year end dropped from ~20% to ~5% post announcement with market now expecting the first cut by May-June.
• Evidence of a cooling economy sent yields and US$ lower lifting gold prices past the $2,000/oz mark on Friday.
• NFPs (‘000): 150 v 297 September (revised from 336) and 180 est.
• Unemployment Rate: 3.9% v 3.8% September and 3.8% est.
• Av Hourly Earnings (%mom): 0.2 v 0.3 September (revised from 0.2) and 0.3 est.
• Av Hourly Earnings (%yoy): 4.1 v 4.3 September (revised from 4.2) and 4.0 est.

ISM non–manufacturing 51.8 in October vs 53.6 in September

• US S&P services 50.6 in October vs 50.1 in September
• composite 50.6 in October vs 50.1 in September
• Nonfarm payrolls slowed 150k in October vs 297 in September
• unemployment rose 3.9% in October vs 3.8% in September
• private employment 99k in October vs 246k in September
• manufacturing employment fell 35k reflecting the recent auto industry strikes (+14k),
• government employment again rose 51k
• The participation rate 62.7% in October vs 62.8% in September
• weekly hours worked 34.3 in October vs 34.4 in September
• weekly earnings 4.1% yoy in October vs 4.3% in September
• US 10year bond yield 4.52 from last Fri 4.87% vs -7% previously
• US$ index 105.05 from 106.5 – 2.5%
• S&P index 4351 from 4117 – 5.5%

China – First Deficit in Foreign Investment in 25 years in Q3

• Preliminary data show first ever direct investment deficit of $11.8bn since records began in 1998 (asiafinancial).
• The reshoring of manufacturing back into the US and the West in general continues as companies move to strengthen critical supply chains
• Chinese threats against Taiwan remain a major concern as an invasion would likely precipitate hash sanctions against China.
• Covid has demonstrated the dependence of the west on transport and just-in-time supplies from China
• High US interest rates are attracting capital into lower risk US Treasuries.
• China’s basic balance, which includes current account and direct investment balances and less volatile investments also saw a $3.2bn deficit.
• Yuan-dollar trading fell 73% in October on August hitting a new record low in October as the PBoC restricted trading and persuaded banks and their clients not to buy US dollars.
• FOREX outflows from China rose to $75bn in September its highest rate for eight years.
• Huge investment in EV manufacturing and internal debt concerns drives China leadership closer to Western markets

• China needs firm exports more than ever to support domestic manufacturing as the nation strives to upgrade the value of its produce.
• China is not in a great place to withstand more sanctions and fears being shut out of Western markets as its EV manufacturers roll out new models.
• Canton Fair: export orders fall short of US$7bn pre-Covid trade.
• 198,000 overseas buyers visited the Canton Fair.

Japan – Services PMI finalised at 51.6 from 53.9 highlighting a slowdown in services activity

• A stagnation of new orders last month ended eight months of growth.
• BoJ Governor confirms commitment to monetary easing
• The BoJ will maintain its stance: “We will patiently maintain monetary easing,”.
• Last week the BoJ relaxed its 1% cap on the 10-year JGB yield enabling a more flexible approach and more movement in long-term borrowing costs.

South Korea – Short-selling ban reimposed to enable regulator to actively improve rules and systems

• Short selling is to be banned until end June 2024.

Singapore – General PMI 53.7 in October vs 54.2 in September

ECB – Lagarde committed to reducing inflation to 2%

• ECB President Christine Lagarde, reckons inflation will fall to 2% in 2025.
• Judging by comments from the US we suspect it will take longer to control inflation unless there if further collapse in the main European economies.
• The ongoing wars in Ukraine and Israel/Gaza are likely to be more inflationary.

Eurozone – Sentix rises to -18.6 on easing inflation concerns

• Sentix Investor Confidence Index rose to -18.6 in October from -21.90 in November well ahead of expectations at -22.5.
• The Current Situation Index also improved to -26.8 from -27.0.
• While falling inflation expectations may have reduced expectations for the rate of slowdown in the Eurozone, industry is, at least, encouraged by lower local inflation.

India  – Non–manufacturing PMI 58.4 in October vs 61.0 in September

• Composite PMI 58.4 in October vs 61.0 in September

Turkey – Inflation rose 3.4% in October vs 4.75% in September

• Inflation rose 61.3% yoy in October vs 61.5% yoy in September

Kazakhstan – Putin is to visit Kazakhstan on Thursday to meet president, Kassym-Jomart Tokayev in Astana

• Putin and Tokayev will also join a Kazakh-Russian business conference Kostanai.

• Tokayev appears to have maintained his distance from Putin till now since the attempted Coup by supporters of the previous president.
• It seems unlikely that Tokayev will enforce the International criminal court arrest warrant on Putin given Kazakhstan’s boarders between Russian and China.
• Kazakhstan has a small army of around 45,000-77,000 active servicemen which is dwarfed by the armies of its larger neighbours.

Currencies

US$1.0756/eur vs 1.0629/eur previous. Yen 149.42/$ vs 150.35/$. SAr 18.169/$ vs 18.403/$. $1.241/gbp vs $1.220/gbp. 0.652/aud vs 0.644/aud. CNY 7.275/$ vs 7.315/$.  Dollar Index 104.94 vs 106.09 previous.

Commodity News

Precious metals:

Gold US$1,987/oz vs US$1,988/oz previous

Gold ETFs 87.2moz vs 87.2moz previous

Platinum US$934/oz vs US$928/oz previous

Palladium US$1,129/oz vs US$1,119/oz previous

Silver US$23.22/oz vs US$23/oz previous

Rhodium US$4,150/oz vs US$4,200/oz previous

Base metals:

Copper US$ 8,210/t vs US$8,200/t previous

Aluminium US$ 2,269/t vs US$2,237/t previous

Nickel US$ 18,135/t vs US$18,100/t previous

Zinc US$ 2,559/t vs US$2,503/t previous

Lead US$ 2,189/t vs US$2,141/t previous

Tin US$ 24,440/t vs US$24,130/t previous

Energy:

Oil US$85.7/bbl vs US$87.3/bbl previous

Natural Gas €46.250/MWh vs €48.700/MWh previous

Uranium UXC US$74.00/lb vs US$73.00/lb previous

Bulk:

Iron ore 62% Fe spot (cfr Tianjin) US$122.4/t vs US$122.3/t

Chinese steel rebar 25mm US$540.0/t vs US$536.3/t

Thermal coal (1st year forward cif ARA) US$119.8/t vs US$118.0/t

Thermal coal swap Australia FOB US$124.5/t vs US$128.5/t

Coking coal swap Australia FOB US$318.0/t vs US$323.0/t

Other:  

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

NdPr Rare Earth Oxide (China) US$70,314/t vs US$69,923/t

Lithium carbonate 99% (China) US$21,101/t vs US$21,120/t

China Spodumene Li2O 6%min CIF US$1,990/t vs US$2,010/t

Ferro-Manganese European Mn78% min US$1,038/t vs US$1,026/t

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

China Graphite Flake -194 FOB US$625/t vs US$625/t

Europe Vanadium Pentoxide 98% 6.2/lb vs US$6.2/lb

Europe Ferro-Vanadium 80% 26.25/kg vs US$26.25/kg

China Ilmenite Concentrate TiO2 US$313/t vs US$311/t

Spot CO2 Emissions EUA Price US$82.4/t vs US$82.2/t

Brazil Potash CFR Granular Spot US$335.0/t vs US$342.5/t

EV & Battery news

Nio lays off 10% of workforce in China

• Nio has laid off around 700 as part of a restructuring (SCMP).
• China produces around 60% of all EVs produced worldwide and plans for 60% of all new vehicles sold to be electric by 2030.
• Prices for premium EVs are falling in China as local consumers opt for cheaper models.
• Nio has >40% market share for Pure Battery EVs priced over CNY300,000 (US$41,000) so far this year
• Nio sales rose 75.4% to 55,432 vehicles in Q3, shipping 16,074 vehicles in October.
• Nio has delivered 126,067 EVs in the first 10 months of the year but is still behind its 240,000 2023 target.
• Xpeng and Li Auto delivered 101,445 and 284,647 vehicles through the same period.

Tesla to build €25,000 vehicle at German factory

• The move is a long-awaited development for the EV maker which is aiming for mass uptake of its cars.
• The source, speaking to Reuters, did not give a timescale on when production would begin.
• Expanding into the mass market is critical to meeting Tesla’s goal of increasing vehicle deliveries to 20m by 2030.
• Creating a more affordable model has been the goal of many EV manufacturers to increase adoption and compete with the Chinese automakers who are no targeting new markets.

China’s October NEV wholesale sales estimated to be a record 890,000

• If the figure is accurate, it would represent a 32% yoy increase and 7% increase from September, the China Passenger Car Association said.
• Figures were largely propped up by EV giant BYD, who recorded 301,000 sales across the month, a 38% increase yoy.
• China’s yearly sales figures are estimated at 8.5m units, 36% of all passenger vehicles sold.

Pepsi makes largest pre-order of Tesla Semi Trucks

• PepsiCo has pre-ordered 100 units of the Semi Truck and is the largest public order known.
• The Tesla Semi Truck comes with Enhanced Autopilot and has 804km EV range; can do 0-96kmph in just five seconds without the trailer.
• It has been built to focus on the 30% of all trucking jobs involving regional trips between 100 and 200 miles with the semi.

Why aren’t more car buyers going electric?

• Despite new models, with longer ranges and lower prices, as well as generous tax credits lowering costs for buyers, the demand for EVs has slowed.
• In response for reduced demand automakers are continually making changes:
  • Tesla have aggressively cut costs as other automakers make ground on them – in the US the average price of a Tesla is down 24.7% from this time last year.
  • Ford has reduced production of its F-150 Lightning and are set to postpone $12bn of investment in their EVs.
  • GM has delayed three new models and altered their goal of producing 400,000 EVs by mid-next year.

Bidirectional charging should be a top consideration when purchasing an EV

• When buying an EV, cost, range, charging speed, etc. are all consumers’ first consideration.
• Another consideration should be bidirectional charging.
• Automakers are now building EVs equipped with bidirectional charging, that could be used to power the home during power outages.
• Bidirectional charging could also have a wider impact on the grid, using EVs as a significant sources of energy storage, particularly from renewable sources.
• There are ~2.1m EVs on US roads with a combined battery capacity of 126GWh according to nonprofit Small Electric Power Alliance.
• That is 5 times the capacity of battery storage currently connected to the grid.

Company News

Bushveld Minerals* (BMN LN) 1.5p, Mkt Cap £23m – Q3/23 production climb as operations stabilise with FY23 guidance reiterated

BUY – 9.1p (from 9.0p)

CLICK FOR PDF

• Group production totalled 1,000mtV (Q2/23: 840mtV) taking 9M output to 2.8ktV (9M/22: 2.7ktV).
• Cash costs averaged $26.5/kgV (Q2/23: $27.4/kgV) with 9M/23 costs coming at $26.4/kgV (9M/22: $28.9/kgV).
• Q3/23 sales were 849mtV (Q2/23: 1,068mtV) and 9M sales totalled 2.9kt (9M/22: 2.7ktV).
• FY23 Group guidance reiterated at 3.7-3.9ktV and $26.6-26.9/kgV (R481-487/kgV) using ~18.0 ZARUSD exchange rate.
• At Vametco, production amounted to 545mtV (Q2/23: 485mtV) taking 9M output to 1.7ktV (9M/22: 1.9ktV).
• Cash costs pulled back too $26.5/kgV (Q2/23: $27.5/kgV) led by stronger production with 9M/23 costs averaging $25.3/kgV (9M/22: $24.8/kgV).
• Production averaged ~200mtV per month in July and August as leach plant issues were addressed.
• 10d planned maintenance shutdown recorded in Q3/23 with no further stoppages planned before year end.
• Vametco produced 209mtV in October and are expected to run at 200mtV per month in November and December implying FY23 coming in within guidance.
• FY23 guidance reiterated at 2.3-2.4ktV and $25.6-25.9/kgV (R463-469/kgV).
• At Vanchem, production totalled 455mtV (Q2/23: 355mtV) with 9M output at 1.1ktV (9M/22: 0.8ktV).
• Cash costs dropped slightly to $24.6/kgV (Q2/23: $27.2kgV) again on better production while 9M/23 costs averaged $28.3/kgV (9M/22: $39.1/kg).
• 9d shutdown to repair the refractory in September meant that production dipped in the last month of the quarter to 120mtV vs 160-175mtV in July-August, although, the team expects previously planned 25d maintenance stoppage in Q4/23 will not be required now and to be replaced with a 4d shutdown in November instead.
• Production recovered in October already with 178mtV delivered and output in November and December expected to come in at 150mtV (accounting for 4d maintenance) and 180mtV suggesting that Vanchem operations should comfortably come within guidance if not slightly ahead.
• FY23 guidance reiterated at 1.4-1.5ktV and $28.1-28.5/kgV (R509/kgV-516/kgV).
• BELCO, a vanadium electrolyte production facility, completed plant construction in August with initial samples of electrolyte produced and being distributed to potential battery producers for qualification purposes.
• Tests by potential customers are expected to take a few months.
• Vametco 1MW/4MWh VRFB mini grid supplied by CellCube and that is expected to generate 10% of Vametco power requirements is undergoing site acceptance and grid compliance testing.
• Vanadium prices pulled back during the quarter in line with general economic activity, although, specialty alloy markets and chemicals continued to attract premium.
• US, European and Asian prices are reported at $36.0/31.5/31.0, respectively (Q2/23: $40.2/33.5/29.3).

Conclusion: Production delivered in line with estimates with marginally better than expected cash costs in Q3/23. FY23 guidance reiterated at 3.7-3.9ktV and $26.6-26.9/kgV as operations seem to have stabilised at 200mtV and 180mtV per month run rates at Vametco and Vanchem. Focus remains on the $45m Orion convertible loan restructuring before the 21 December due date followed by SPR investment completion.

*SP Angel act as nomad and broker to Bushveld Minerals

Celsius Resources* (CLA LN) 0.6p, Mkt Cap £13.5m – Renewal of the Opuwo prospecting licence, Namibia

Click Link for SP Angel research report PDF note – MCB project NPV@8% US$463m, IRR of 34.3%

BUY

• Celsius Resources reports that it has been granted a two-year renewal of its Opuwo prospecting licence in northern Namibia.
• The 683km² Opuwo copper/cobalt project is located approximately 730km NW of Windhoek and close to the Angolan border
• In July 2021, Celsius Resources reported mineral resources of 225mt at an average grade of 0.12% cobalt, 0.43% copper and 0.54% zinc at Opuwo.
• Approximately 20% of the resources (45.3mt at an average grade of 0.11% cobalt, 0.44% copper and 0.51% zinc) are classed as ‘Indicated’ with the balance (180.2mt at an average grade of 0.12% cobalt, 0.43% copper and 0.55% zinc) defined as ‘Inferred’.

• Welcoming the licence renewal, Managing Director, Peter Hume, confirmed that Celsius Resources is “currently reviewing the Opuwo Project to understand how we can strategically unlock its potential value given the high demand for Cobalt from the electric vehicles sector … [and said that following] … the renewal of the permit and recent positive metallurgical test work results, we anticipate this will attract potential partners in the project”.

• The company has previously indicated that it is progressing mining and metallurgical studies “with the objective to produce a revised Scoping Study for the Opuwo project during 2024”

Conclusion: Renewal of the exploration licence for the Opuwo cobalt project in Namibia and continuing metallurgical and mining investigations ahead of a revised scoping study in 2024 may attract the interest of potential partners to develop the project.  We await further news as the various technical programmes continue.

*SP Angel acts as broker to Celsius Resources.

Eurasia Mining* (EUA LN) 2.1p, Mkt Cap £60m – Response to speculation

• The Company made an announcement on Friday following speculation regarding a winding up notice on or around 25 October by Gowling, the Company’s former legal advisers.
• The Company confirmed that it receive the winding up petition relating to unpaid invoices for a total of ~£108k that is currently in dispute.
• The team hopes the matter can be resolved amicably and is taking legal advice in relation to the matter.

*SP Angel act as Nomad and Broker to Eurasia Mining

Greatland Gold (GGP LN) 9.3p, Mkt Cap £489m – Recent drilling shows continuity of mineralisation between the SE Crescent and Eastern Breccia zones at Havieron

• In its annual report for the year to 30^th June 2023, Greatland Gold reports a pre- and post-tax loss of £21.1m (2022 – loss of £11.4m) and a closing cash position of £31.1m and debt balance of £41.5m.
• The company highlights continuing progress at its principal (30% owned) Havieron gold/copper deposit in the Paterson region of WA where the main decline has now advanced to over 2km in length and total underground development is over 2.8km.
• In his statement to the company’s shareholders, Chairman, Mark Barnaba, outlines recent drilling progress which “improves our understanding of the South East Crescent which extends for more than 1,100 metres … [and confirms] … continuous mineralisation through the link zone which connects the South East Crescent with the Eastern Breccia” zones.
• Mr. Barnaba says that the latest results, which brings the total drilling at Havieron to over 300,000m, will be included in “the optimised Feasibility Study together with several value enhancing options to maximise value and further derisk the project”.
• The annual report also discusses progress at the company’s wider exploration portfolio of projects in the Paterson region where it has the right to earn a 75% interest in Rio Tinto’s >1,500km² Paterson South licences through “spending at least A$21.1 million and completing 24,500 metres of drilling as part of a two-stage farm-in over seven years” as well as outlining advances at its own projects in the region.
• At Paterson South, initial exploration drilling started at the Stingray and Decka prospects in “late June 2023” targeting geophysical targets located 10km and 20km respectively from Havieron.
• Greatland Gold says that at depths “within 250 metres of surface” both targets are shallower than Havieron and may exhibit similar mineral origins
• In the wider Paterson South area, Greatland Gold is “reviewing historic work across the remainder of the … Paterson South Tenements and developing access to several other tenements to allow on-ground work to commence as statutory and heritage approvals are obtained”.
• Initial work at the 49% owned Juri prospect, where Greatland Gold’s partner at Havieron, Newcrest Mining, has the right to earn a 75% interest, a two-phase initial drilling programme tested targets at the Tama, A9 and Black Hills North/A27 prospects with anomalous levels of gold associated with geochemically anomalous bismuth intersected in hole BHRD-004 at the Black Hills site.
• Greatland Gold’s wholly owned projects at Scallywag, Canning, and Citadel Hill are “located adjacent to and around Havieron”.
• Exploration at Scallywag “is focused on the discovery of intrusion related gold-copper deposits similar to Havieron, Telfer and Winu”.
• The Canning propect, approximately 175km SE of Havieron hosts “two large magnetic ‘bullseye’ anomalies similar to the Havieron deposit magnetic signature” while the Citadel Hill licence application 145km NW of Havieron is described as “a regional anomaly as part of an internal Pilbara prospectivity analysis”.
• Analysis of historical data from the Panorama prospect in the Pilbara suggest they are “prospective for gold, nickel and cobalt” while agreement with Native Title Holders has been reached at the Bromus prospect near Norseman.

Conclusion: We await the optimised feasibility study for Havieron with interest and for its insights into the links between the mineralisation at the SE Crescent zone and that within the Eastern Breccia

Northern Graphite (NGC CN) C$0.24, Mkt cap C$30m – Resumption of graphite production as demand improves

• Northern Graphite announced plans on Friday to resume processing at its Lac des Iles project.
• The Company will resume ore processing, after sales volumes picked up in the wake of China’s export ban announcement.
• Management notes ‘customers were really coming off the sidelines to secure supply for the year,’ in Q3.
• They note sales volumes are up 25% qoq.,
• Northern Graphite placed the Lac Des Iles on care and maintenance over Q2 and Q3 this year on weak downstream demand.

Power Metal Resources* (POW LN) 0.62p, Mkt cap £13m – Sale of Kavango shares raises £556k

• Power Metal reports the disposal of its total holding of Kavango Resources at 0.8p/share.
• The sale raised £556k for deployment in exploration activities.
• POW retains 60m warrants, half of which are exercisable at 4.25p and half at 5.5p, expiring on 8^th January 2025.
• The Company retains a 1% NSR over the Kavango Kalahari and Ditau Camp projects.

*SP Angel acts as Nomad and Broker for Power Metal Resources

Savannah Resources* (SAV LN) 3.2p, Mkt Cap £59m – Barroso strategic investors and partners selection process

BUY – 21.1p

• The team comments on strong strategic interest the Barroso Lithium Project received since launching A Strategic Partnering Process in July.
• Interested parties were invited to submit proposals outlining how they could assist the Company with financing of the Project along terms of a potential commercial partnership.
• The Company has also engaged Barclays and Barrenjoey to assist the team with the selection process.
• The process is now focused on preparing a short list of potential strategic partners with further updates to be provided as appropriate.

Conclusion: Attractive lithium project economics see strong demand from potential strategic investors and partners regarding funding and offtake proposals with

the team working on preparing a shortlist of successful candidates to assist with Barroso project financing and development.

*SP Angel acts as Nomad and Broker to Savannah Resources

Talga Group (TLG AU) A$1, Mkt cap A$368m – Equity raise for fund A$15m to develop Vittangi graphite Anode Project

• Talga announced plans to raise A$15m through an equity issue under a non-underwritten Share Purchase Plan.
• The raise will support the progression of the Vittangi Anode Project, primarily Refinery site establishment costs.
• The funds will also support general working capital.
• Results will be announced on the 29^th December.

Tertiary Minerals* (TYM LN) 0.12p, Mkt cap £2.6m – BUY – Zambian project updates

CLICK FOR PDF

• Tertiary has published an updated Company presentation: CLICK FOR LINK
• Tertiary’s has generated copper-in-soil anomalies over all of its Zambian projects through recent soil sampling.
• They have now produced priority drill targets at Jacks, Mukai and Mushima North.
• Tertiary has decided not to exercise its option over the Lubuilda project owing to the dominance of laterite enrichment.
• Drill sites are currently being identified with a multinational company following the signing of a JV earn-in agreement.
• The JV will target deep drilling at the Konkola West Project, where the team is looking for extensions to the Konkola-Musoshi deposit.

*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

SP Angel                                                            

Prince Frederick House

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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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%

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