SP Angel Morning View -Today’s Market View, Monday 7th April 2025

Gold slides as liquidity tightens on sustained risk-off environment

MiFID II exempt information – see disclaimer below

Alba Mineral Resources (ALBA LN) – 1 ounce 24 carat gold coin from North Welsh gold realises 8.5x spot price at auction

Ferrexpo (FXPO LN) – 1Q production shows production cuts on VAT refund suspension

Great Southern Copper (GSCU LN) – Additional drilling from Mostaza, Chile

Guardian Metal Resources (GMET LN) – Progress report on Nevada tungsten projects

Phoenix Copper* (PXC LN) – £300,000 subscription

Serabi Gold (SRB LN) – Exploration progress report

Sigma Lithium (SGML US) – Production guidance met as expansion plans continue

Strategic Minerals* (SML LN) – Grant funds to support further exploration at Redmoor

Gold ($3,030/oz) slides as liquidity tightens on sustained risk-off environment

• Gold has fallen c.$100/oz over the past week, but continues to hold above $3,000/oz.
• The metal has reacted as traders and funds are forced to meet margin calls following last week’s US Tech market selloff.
• The Trump administration is holding firm on their tariff position, despite widespread market turmoil.
• Gold ETFs saw minor outflows this morning, but hare still at recent highs, albeit well off 2020 and 2022 levels.
• The 10-year yield fell below 3.9% but has since rebounded, as fears resurface of higher for longer inflation or a sovereign selling down.
• China’s 10-year yield continues to slide, now yielding 1.6% and adding further pressure to the yuan.
• Gold had been a primary beneficiary of China’s deflationary environment, with the metal gaining traction with retail investors looking for protection against a slumping housing market and weak equity markets.
• We continue to see gold as a beneficiary of deglobalisation and central banks diversifying their foreign reserves.

Conclusion: It is normal for gold to fall in the event of a market collapse. But gold is almost always the first instrument to rebound as more investors move to ‘cash’.

Our view is that gold is the go-to store of value as investors work out which currencies and jurisdictions to move their funds to.

Copper ($8,750/t) holds lower on wider market sell-off as global growth outlook weakens

• Copper is down 10% over the past week, settling this morning at $8,750/t on the LME.
• The metal opened overnight at $8,150/t but has since rebounded.
• CME copper prices are down 13% over the same period, with the spread between LME and CME prices narrowing following Trump’s liberation day.
• Copper physical premiums had risen to $500/t last month, with the curve now sliding out of backwardation as the trade unwinds.
• Copper had rallied into the tariff rollout on expectations of 25% tariffs and a rush to move metal into the US to prevent tariff impacts.
• Traders are dumping copper over concerns that the global tariff rollout by the US will weaken global copper usage.
• The escalating trade war between the US and China is also set to weigh on copper demand, with China’s currency weakening, limiting their purchasing power in international metals markets.
• The long term fundamental copper story remains constructive, with grade decline and increased capital intensity weighing on supply going forward.

Quantum Schrodinger cat market

• If Schrodinger’s box is turned upside down will the cat fall and then bounce ?
• What quantum state is the cat in and if we open the box where it will be?
• In theory our cat can be in the box and out of the box at the same time – but we still don’t know if will bounce?
• And if the cat appears after some time will it still bounce.
• We suspect this market move will accelerate Trump’s renegotiation process and we hope the world’s nations will form an orderly queue at the White House.
• We reckon market’s will start their recovery as Trump rolls back on some of his more aggressive import Tariffs.

Zinc – Korea Zinc agrees 52% cut in Tc/Rc fees on ores from Teck Resources

• The new fees are $80/t & 8c/lb down from $165/t and 1.65/lb a year ago and $230/t in 2022 (Bloomberg).
• Trafigura are also looking at the viability of their Nyrstar zinc / lead business in Australia while calling for government support.
• Teck’s Red Dog mine in Alaska produces ~550,000tpa of contained zinc
• Spot market treatment charges have collapsed in recent months, falling from approximately $230 per ton in 2022 to around $60 per ton in 2024..
• Glencore reviewing its smelting operations with their Canadian zinc business working at ~78% capacity.

Tin – MSC suspends smelting at Pulau Indah due to explosion in gas pipeline in Putra Heights

• MCS, the ‘Malaysia Smelting Corporation’ reports the suspension of production its Pulau Indah tin smelter following an explosion in a gas pipeline.
• MSC has been moving production to the to the new facility in Penang near Port Klang.
• MSC produced 16,300t of tin in 2024 and ranks as the world’s fifth largest tin refiner.

ii / interactive investor – video interviews:  

• Is China losing its grip on African mining, inc. Sovereign Metals*, Kefi*, Atlantic Lithium*, Goldstone*, Kodal*, Yellow Cake, Kazera Global, Aterian*: 
• Gold, inc. Goldstone*, Kefi, 
• Trump tariffs, China and critical metals, inc. Aterian*, Atlantic Lithium*, Sovereign Metals*, Yellow Cake, Kazera Global
• Five mining stocks to watch:  , inc. Sovereign Metals*, Kazera Global, Yellow Cake, Thor Explorations, Kodal Minerals*

*SP Angel acts for Sovereign Metals and Kodal Minerals

Sharepickers: Gold & Copper Small Caps: https://audioboom.com/posts/8693044-john-meyer-here-s-some-gold-copper-small-caps

• Gold, copper, 13:05 Orosur*, 13:38 Oriole*, 15:25 Resolute, 16:44 Goldstone*, 17:46 Antofagasta, 18:23 Central Asia Metals, 19:56 Kavango, 20:52 Power Metal Resources, 24:25 Kefi*, 25:18 Tertiary Minerals*
• Video:  https://www.youtube.com/watch?v=KG6furFO3n4X

* SP Angel act as nomad and or broker

Economics

US – Equity markets extend losses form last week as investors reprice risks of an escalation in trade wars and as President Trump said he would not back down from his trade policies.

• S&P 500 and Nasdaq futures are down 3.5% and 4.0%, respectively, this morning on top of nearly 6% drops on Friday.
• Both indices are now down more than 20% off their respective tops hit earlier this year.
• Scott Bessent, the US Treasury Secretary, and Howard Lutnick, the Commerce Secretary, defended announced trade policies as a necessary overhaul of global commerce despite a market sell off in a series of interviews over the weekend. (FT)
• The administration reiterated that a series of levies that are set to come into effect later this week would not be delayed.
• Bessent said he was sceptical that new trade deals can be reached quickly suggesting it can be a protracted stand off.
• “It’s not the kind of thing you can negotiate away in days or weeks… we’re going to have to see what the countries offer and whether it’s believable… After 20, 30, 40, 50 years of bad behaviour, you can’t just wipe the slate clean.”
• Separately, NFPs released on March showed stronger than expected growth in jobs even after accounting for downward revisions for previous months.
• Unemployment rate ticked up as labour force participation rate also climbed.
• Wages came slightly behind annual estimates.
• NFPs (Mar/feb/Est): 228k/ 117k(revised from 151k)/140k
• Unemployment Rate (Mar/Feb/Est): 4.2/4.1/4.1
• Av Hourly Earnings (%yoy, Mar/Feb/Est): 3.8/4.0/4.0

Trump extends the deadline to close the deal for ByteDance to sell US assets of TikTok by 75 days.

• The extension comes as China would not approve the deal after the announcement of new tariffs on China last week.
• Earlier the US said tat it will be willing to reduce tariffs on China to get a deal done.

China – Beijing announced retaliatory tariffs of 34% on US imports in a major escalation of a trade war.

• Additionally, China said it would impose more restrictions on the export of rate earths used in permanent magnets critical for such industries as EVs, renewable energy, robotics etc.
• The government also added 16 US companies to the export control list meaning that Chinese companies cannot do business with them.
• Responding to the announcement, President Trump wrote on Truth Social on Friday “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”.

EU – European leaders are set to announce own countermeasures after getting hit with 20% reciprocal US tariffs last week.

• In addition, the block is facing 25% import tariffs on steel, aluminium and cars.
• The EC will propose to its members a list of US products to hit with trade duties later today. (Reuters)
• Grman and French indices are down nearly 7% this morning while region wide Euro Stoxx 50 is off ~6.4%.

Taiwan – The financial regulator is imposing temporary limitations on short selling including limiting the number of shares and that can be sold short and raising the minimum short selling margin ratio to 130% from 90%.

• The US administration is set to implement a 32% tariff on Taiwan.
• The benchmark Taiwan stock market index is down 9.7% this morning marking the largest single day drop on record.
• Local stock market was closed last Thursday and Friday reopening today.

Currencies

US$1.1015/eur vs 1.1022/eur previous. Yen 145.45/$ vs 146.06/$. SAr 19.375/$ vs 19.072/$. $1.290/gbp vs $1.303/gbp. 0.601/aud vs 0.622/aud. CNY 7.309/$ vs 7.282/$.

Dollar Index 102.310 vs 102.072 previous.

Precious metals:

Gold US$3,023/oz vs US$3,094/oz previous

Gold ETFs 88.0moz vs 88.1moz previous

Platinum US$919/oz vs US$945/oz previous

Palladium US$909/oz vs US$930/oz previous

Silver US$30.0/oz vs US$31.2/oz previous

Rhodium US$5,450/oz vs US$5,625/oz previous

Base metals:

Copper US$8,690/t vs US$9,182/t previous

Aluminium US$2,350/t vs US$2,423/t previous

Nickel US$14,210/t vs US$15,630/t previous

Zinc US$2,592/t vs US$2,676/t previous

Lead US$1,869/t vs US$1,933/t previous

Tin US$34,000/t vs US$36,640/t previous

Energy:

Oil US$63.0/bbl vs US$68.8/bbl previous

Natural Gas €34.3/MWh vs €38.9/MWh previous

Uranium Futures $64.5/lb vs $64.9/lb previous

Bulk:   

Iron Ore 62% Fe Spot (China CFR) US$99.6/t vs US$102.5/t

Chinese steel rebar 25mm US$471.5/t vs US$473.3/t

HCC FOB Australia US$179.0/t vs US$177.0/t

Thermal coal swap Australia FOB US$98.0/t vs US$102.5/t

Other:  

Cobalt LME 3m US$33,700/t vs US$33,925/t

NdPr Rare Earth Oxide (China) US$60,474/t vs US$60,695/t

Lithium carbonate 99% (China) US$9,673/t vs US$9,873/t

China Spodumene Li2O 6%min CIF US$805/t vs US$805/t

Ferro-Manganese European Mn78% min US$1,005/t vs US$1,005/t

China Tungsten APT 88.5% FOB US$358/mtu vs US$358/mtu

China Graphite Flake -194 FOB US$435/t vs US$435/t

Europe Vanadium Pentoxide 98% US$5.1/lb vs US$5.1/lb

Europe Ferro-Vanadium 80% US$24.3/kg vs US$24.3/kg

China Ilmenite Concentrate TiO2 US$284/t vs US$285/t

Global Rutile Spot Concentrate 95% TiO2 US$1,506/t vs US$1,506/t

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

Brazil Potash CFR Granular Spot US$347.5/t vs US$337.5/t

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

China Gallium 99.99% US$390.0/kg vs US$390.0/kg

Battery News

Company News

Alba Mineral Resources (ALBA LN) 0.01p, Mkt cap £1.7m – 1 ounce 24 carat gold coin from North Welsh gold realises 8.5x spot price at auction

• On Friday, Alba Mineral Resources announced that it had sold a 1oz, 24 carat, gold coin from its historic Clogau St David gold mine in North Wales at auction realising £20,000.
• “The price fetched by the sale represents a premium of almost 8.5 times the spot price of gold, which currently stands at around £2,370 per ounce”.
• Executive Chairman, George Frangeskides, said that the “strong sale price achieved for this unique and beautifully crafted 1oz, 24-carat coin reflects the heritage and prestige of Welsh gold” which, partially reflecting its scarcity, has previously attracted premium prices.
• He said that the auction result validates “our strong belief in the commercial potential of the Clogau-St David’s Gold Mine, and of gold exploration and development across the North Wales Dolgellau Gold Belt generally”.

Ferrexpo (FXPO LN) 45p, Mkt cap £266m – 1Q production shows production cuts on VAT refund suspension

• High-grade iron ore producer Ferrexpo reports production data for 1Q25 at 2.1mt, up 20% from the prior quarter and 3%yoy.
• Pellet production fell 10%mom and 26%yoy whilst concentrate production rose 193%mom and 223%yoy.
• Management noted that two pelletiser lines were operated over the quarter, but they have now reduced to one owing to the suspension of VAT refunds.
• VAT refunds were suspended by the Ukraine tax authorities, ‘lowering the available liquidity to fund operations’ and forced them to ‘immediately downscale our operations.’
• Company notes sustained high input costs weighing on earnings alongside deteriorating pellet premiums and prices.

Great Southern Copper (GSCU LN) 3.4p, Mkt Cap £21m – Additional drilling from Mostaza, Chile

• Great Southern Copper has reported results from a further three holes (CNG25-DD007-DD009) from its drilling at the historic Mostaza mine located in its Cerro Negro copper/gold/silver target within its Especularita project.
• The company confirms that “All drill holes intersected zones of variably mineralised, structurally-controlled silicification over varying widths … [and that] … Mineralisation remains open in all directions including at depth”.
• Today’s announcement highlights the results of hole DD-007 which intersected:
  • 33m at an average grade of 1.96% copper and 60.6g/t silver from a depth of 87m including 3.58m averaging 5.21% copper and 318.2g/t silver from 88m depth and 5.00m averaging 5.90% copper and 99.2g/t silver from 115m depth
• Hole DD-007 was “drilled below Lens 3 … [which] … comprises silica-altered breccia clasts within a sulphide-rich matrix containing abundant chalcopyrite, bornite and pyrite … [and today’s announcement explains that] … highest grades correlate with zones of semi-massive bornite-chalcopyrite mineralisation”.
• Hole DD-008 “was drilled above and 20m to the north of DD007 to intersect the Lens 3 at a shallower depth. The hole intercepted a 21.4m zone of oxidised silicified breccia from surface with strong oxidised sulphides and anomalous Cu and Ag up to 0.51% Cu and 31.3 g/t Ag respectively. These results suggest that near-surface leaching has resulted in lower grades”.
• Drillhole CNG25 DD006 was drilled to test below and along strike to the north of Lens 4. It intercepted several oxidised and reduced grade silicified mineralised zones of “proto-lens” with anomalous Cu and Ag up to 0.16% and 24.9 g/t respectively.
• The results reported today form part of the company’s Phase 2 campaign at Mostaza which, so far, comprises 10 holes totalling 1,059m and the company confirms that “Within the Mostaza pit the Phase II drilling continues to intersect the high-grade Lens 2 mineralisation down to 100m below the DD001 intercept … [20m at an average grade of 3.31% copper and 270g/t silver from 27m depth] … with mineralisation remaining open in all directions”.
• The company “holds … [an] … option to own 100% of the Mostaza mine which includes the Mostaza mine”.
• Acknowledging that much work remains at Mostaza, CEO Sam Garrett, said that the “results for hole DD007 confirm that high-grade copper-silver mineralisation is continuing along trend south of the Mostaza mine … [and that so far] … all Phase II holes have intersected the mineralised lens to a vertical depth of 100m below the original hole 1 intercept”.

Conclusion: The latest of drilling at Cerro Negro continues to confirm the continuity of high grade mineralisation around the old Mostaza mine. We await further news as the exploration progresses.

Guardian Metal Resources (GMET LN) 38.5p, Mkt Cap £52m – Progress report on Nevada tungsten projects

Power Metals Resources* (POW LN) 13p, Mkt cap £15m – (Power Metals* holds a 19.5% stake in Guardian Metal Resources)

• Guardian Metal Resources has provided a progress report on its Pilot Mountain and Tempiute tungsten projects in Nevada.
• At Pilot Mountain, resource drilling at the Desert Scheelite deposit has been completed and results are awaited for the final 13 holes of the programme.
• Geotechnical drilling at Pilot Mountain “is well underway” with GCH-1 intersecting “multiple intervals of skarn-type mineralisation” while “Two of the six total planned geotechnical drillholes are scheduled for the Porphyry South area at the proposed southern open-pit edge … [where] … they will provide further details on the potential significance of the porphyry system”.
• Elsewhere at Pilot Mountain, the company has received permits for drilling at the Gunmetal tungsten zone and at the Garnet copper/silver/zinc mineralisation with the rig currently drilling the geotechnical holes at Desert Scheelite “to move to Garnet and then the Gunmetal zone”.
• At Tempiute, which is to be progressed in parallel with Pilot Montain, the geological potential is becoming clearer following site inspections which show extensions “to the known tungsten skarn mineralisation … along with a particular emphasis on the molybdenum rich nature of both the skarn and associated porphyry system as well as the identification of what appear to be mineralised hydrothermal breccias”.
• “Metallurgical samples … [have been] … taken from the six historical 1980s-era ore stockpiles present on site… [at Tempiute] … to gain a better understanding of the metals and grades present with a view to determine the viability of nearer term processing of this material”.
• CEO, Oliver Friesen, described the Pilot Mountain and Tempiute projects as “central to our mission of establishing Guardian Metal as a reliable, U.S.-based supplier of tungsten – a metal that’s increasingly essential to U.S. national security”.
• He also described their location in Nevada as “a domestic, tariff-free source”.

Conclusion: Guardian Metal Resources’ Nevada tungsten projects are potentially indigenous sources of a strategic commodity as the US Government moves to secure mineral supply chains.

*SP Angel acts as Nomad and Broker for Power Metals

Phoenix Copper* (PXC LN) 3.5p, Mkt Cap £6.9m – £300,000 subscription

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

• Phoenix Copper has announced that a single subscriber has injected £300,000 via the acquisition of 10m shares, representing 4.83% of the enlarged company, at a price of 3p.share.
• The company also announces that “10,000,000 existing warrants and options to subscribe for ordinary shares in the Company (the “Warrants” or the “Options”) have been allowed to lapse, enabling the Company to complete the Subscription”.
• “In total, 3,775,000 Warrants and 6,225,000 Options have lapsed. The Options were all held by directors, advisory board members and senior employees of the Company”.
• Phoenix Copper confirms that it “will continue to operate with minimal corporate overheads to ensure that it has sufficient working capital to allow it to conclude discussions with interested parties in the US and elsewhere regarding the issue of additional corporate copper bonds, to finance the ongoing construction of the Empire Mine”.
• Operationally, today’s announcement explains that the “detailed engineering work for the Empire copper-gold-silver open pit mine in Idaho, USA (the “Empire Mine”) is nearing completion, allowing the Plan of Operations for final permitting to be updated with the new crush-grind-flotation circuit”.
• Phoenix Copper also explains that “With the processing plant as well as the open-pit now being situated on private (patented) land, the permitting process should be significantly simplified”.

Conclusion: Additional £300,000 of funding from a single subscriber provides support while Phoenix Copper continues with engineering, permitting and financing work for its Empire open-pit mine project in Idaho.

*SP Angel acts as Nomad to Phoenix Copper

Serabi Gold (SRB LN) 121.5p, Mkt Cap £102m – Exploration progress report

• Serabi Gold has issued a report on the progress of its US$9m 2025 Phase 2 exploration programme at the Palito mining complex, the Coringa development project and Sao Domingos exploration project all in the Tapajos region of Pará State, Northern Brazil.
• “The plan includes 30,000m of diamond drilling (16,000m at Coringa Mine and 14,000m at Palito Complex) to test new IP geophysical targets at Palito, the extensions of known ore bodies in both sites, and anomalous geochemical/geophysical trends at Coringa, in addition to a 100km IP survey at Coringa in its southwestern and northern portions”.
• Drilling results highlighted from the drilling at Palito and Coringa include:

• • An interval of 0.6m on the Senna Vein at Palito at an average grade of 27.17g/t gold from a depth of 274m in hole 25 SE 001 which also intersected a second 1.05m wide zone of the Senna Vein averaging 6.42g/t gold from 276m depth; and
  • A 0.5m wide intersection of the Galena zone at Coringa averaging 52.07g/t gold from a depth of 150m in hole 25-GA-001; and
  • A 0.5m wide intersection of the Jatoba zone at Coringa averaging 22.78g/t gold from a depth of 120m in hole 25-JA-003.

• Highlighted results from the second phase of drilling at Sao Domingo, completed in February include:

• • An intersection of 1.65m at an average grade of 80.50g/t gold from a depth of 193m in hole 24 SD-016; and
  • An intersection of 1.35m at an average grade of 19.97g/t gold from a depth of 143m in hole 24 SD-023; and
  • An intersection of 0.60m at an average grade of 16.25g/t gold from a depth of 186m in hole 24 SD-024; and
  • An intersection of 1.50m at an average grade of 30.13g/t gold from a depth of 317m in hole 24 SD-026 which also intersected 0.75m at an average grade of 42.30g/t gold from 330m depth.

• The geological setting of Sao Domingo, which is “located only 12km from the São Chico mine infrastructure” at Palito is described as “a pipe-like shape with a thickness that varies from 20m to 30m and a known dip-length of 155m. The zone is still open at depth and due to its average thickness, which is significantly greater than that found in the Palito bodies, opens the opportunity for a mining method of greater volume”.
• Induced polarisation geophysics work at Palito identified anomalies “following the extension of the known orebodies at Palito Complex. Drilling into these targets is expected to start in Q2-2025”.
• Geochemical soil sampling “covering approximately 70% of Serabi’s permitted portfolio” has identified approximately “70 targets … for the different types of mineralisation and exploration focus that includes copper porphyries similar to Matilda”.
• Commenting on the results so far, CEO Mike Hidgson, said that the “results from the Senna orebody at the Palito Complex, as well as Jatobá and Galena in Coringa, confirm that we are progressing towards our goal of delineating a consolidated 1.5 to 2.0 million ounces in the coming years”.
• He also described the results from Sao Domingo as “positive” that the “exploration model shows a vertically oriented high-grade orebody that provides flexibility in the exploitation mining process, significantly increasing the mass and consequently the number of ounces produced. The planning team will evaluate the economics of the model, and we expect to have a reserve drilling and production plan soon”.
• Mr. Hodson commented that “In addition to the work being carried out on the brownfield targets, the exploration team is continuing interpretation work on the greenfield targets. An abundance of copper/gold targets found during the regional soil and drilling campaigns demonstrate the prospectivity of our property that is still underdeveloped and underexplored. We are in the final phase of maturing our targets to execute the regional exploration program in the oncoming years”.

Conclusion: Results from both brownfield and greenfield exploration at Serabi Gold’s projects in Brazil are encouraging as the company pursues a goal of delineating a 1.5-2.0moz resource base. We await further results from the US$9m exploration campaign with interest.

*An SP Angel analyst has visited the Serabi’s gold mining operations in Brazil

Sigma Lithium (SGML US) $7.6, Mkt cap $850m – Production guidance met as expansion plans continue

• Brazilian spodumene producer Sigma reports the sale of 68kt spodumene concentrate over 1Q25.
• Sigma reports that they expect ‘to continue generating consistent cash flows and maintain healthy margins.’
• Sigma is aiming to boost production to 520kt of spodumene concentrate from current capacity of 270ktpa.

Strategic Minerals* (SML LN) 0.38p, Mkt Cap £7.6m – Grant funds to support further exploration at Redmoor

• Strategic Minerals reports that it has secured UK Government grant funding for ~£764,000 in support of its continuing exploration of the Redmoor tungsten/tin/copper project in Cornwall.
• The UK’s Shared Prosperity fund “will fund 50% of the Project expenditure to advance Redmoor, matching the Company’s contribution up to a total aggregate investment of £1,529,701”.
• The planned works, over the next 12 months, will include around 5,000m of new drilling, described as the first “at Redmoor since 2018” as well as the completion of the relogging programme for the historic core “with the aim to produce a new, upgraded and enlarged mineral resource estimate (“MRE”) for Redmoor from the 2019 MRE”.
• The current estimate for Redmoor, based on Strategic Minerals’ 2017/2018 drilling (12 holes totalling 7,370m), is an ‘Inferred’ mineral resource of 11.7mt at an average grade of 0.56% tungsten trioxide, 0.16% tin and 0.50% copper.
• The new exploration is expected to enable Strategic Minerals to update its economic model.
• In 2019, the company released a Scoping Study, based on a tin price projection of US$22,000/t, a tungsten price of US$330/mtu and a copper price of US$3.18/lb which at an indicative 600ktpa production rate produced a total of 7.1mt grading 1.09% tin eq. over ten years.
• The 2019 study showed that a pre-production capital investment of US$89m with a further US$23m of sustaining capital through the project’s life and operating costs of US$75/tonne mined was expected to generate an after-tax NPV8% of US$94m and IRR of 19.4%.
• Current metal prices are over US$36,000/t for tin, US$9,000/t for copper and the current benchmark APT (ammonium paratungstate) price for tungsten is around US$350/mtu.
• Chairman, Charles Manners, thanked the project team at Cornwall Resources for their efforts and said that the “grant funding investment through the CIOS … [Cornwall and Isles of Scilly] … Good Growth Programme will seek to enable the accelerated development of Redmoor and improve our ability to highlight its world-class, high-grade, polymetallic tungsten resource”.
• Last week, the company announced that it was seeking to recruit additional exploration staff at Cornwall Resources and today’s announcement amplifies this statement confirming that it “is currently hiring five new, full-time, employees to augment its technical team”.

Conclusion: Grant funding will support additional exploration at Redmoor, including a further 5,000m of drilling to supplement the ~7,300m drilled in 2019/18, to update the MRE and economic modelling.  We look forward to news of the exploration programme as it advances.

*SP Angel acts as Nomad and broker to Strategic Mineral

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                                                            

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.

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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