SP Angel Morning View -Today’s Market View, Thursday 12th September 2024

Copper prices rise alongside iron ore as China restocks

MiFID II exempt information – see disclaimer below

Andrada Mining (ATM LN) – Initial drilling results from Brandberg West

Atlantic Lithium* (ALL LN) – EPA permit approved

B2 Gold (BTO CN) – Agreement reached with Mali government for Fekola

Critical Metals plc (CRTM LN) – NIU Invest SE invests further £350,000

Griffin Mining (GFM LN) – Half year results as lower base metal grades offset by gold and silver

Oriole Resources* (ORR LN) – Initial drill results from Bibemi phase 5 programme

Resolute Mining (RSG LN) – Tomboronkoto resource upgrade and expansion may extend mine life at Mako in Senegal

Base metals rebound as sell off cools and Codelco output slows

• Base metals rebounded yesterday amid improving global risk sentiment, with copper rallying 2% to $9,300/t.
• Aluminium, nickel, zinc, lead and tin were all green, whilst platinum and palladium also ticked higher.
• BHP has recorded a ramp up of output from Escondida, whilst Codelco is reporting slowing production yoy at 111kt for July.
• Lead is rallying on China smelter output cuts after weak lead acid battery demand weighed on margins this year.
• Refined lead production down 2% in China over the first seven months this year, as treatment charges went negative.

Iron ore bounces as marginal supply tested whilst Vale upgrades production guidance

• Iron ore prices have bounced off recent lows, climbing to $94/t.
• Vale reported expectations to produce 323-330mt, vs 310-320mt before.
• This had largely been factored in following a strong 1H24.
• Analysts reporting restocking in advance of China’s mid-Autumn festival holiday.
• Steel production data for August due this weekend, with reports suggesting a significant step down in output amid low profitability.

Lundin Mining said there is a lot of interest in its two copper and zinc mining assets in Europe as the Group aims to divest Zinkgruvan in Sweden and Neves-Corvo in Portugal in six to twelve months.

• “We don’t want to drag on the process, because it’s distracting and takes time,” CEO Jack Lundin said.
• Two copper and zinc operations are Lundin’s oldest assets and accounted for ~19% of the Company’s revenue last year.
• The Group is turning its focus on its development assets in South America.

China’s commerce minister to meet with EU officials over EV tariffs

• China’s Commerce Minister Wang Wentao will visit Europe in the coming days to discuss EV tariffs before they officially come into effect.
• Wang will hold talks with Valdis Dombrovskis, the European Commission Vice President and trade commissioner on the 19^th September to consult on the EU’s anti-subsidy investigation case against Chinese EVs.
• Following the anti-subsidy investigation the EU announced provisional tariffs of up to 37.6% in June.
• The tariffs have been adjusted several times over the last few months, with reports from Bloomberg this week reporting another small cut in proposed tariff rates.
• Tesla could see their tariff rate of 9% reduced to 7.8% following the latest revisions.
• The 27 member states of the European Union will vote on the proposed tariffs in October, and if passed, the provisional tariffs will become a five-year policy.
• Wang’s visit to Europe follows Spanish Prime Minister Pedro Sanchez’s visit to China, where he changed stance on the EUs proposed tariffs.
• Spain had been one of the more vocal supporters of the tariffs, but speaking on Wednesday, Sanchez said, “We don’t need another trade war. If you ask me, we need to reconsider our position.”

Economics

US – Inflation data came in broadly in line yesterday suggesting the Fed is likely to stick with a widely expected 25bp cut next week.

• Market odds of a greater 50bps cut has been nearly completely discounted following the release.
• 2y bond yields picked up after hitting a low of 3.55% and currently trading at around 3.65%.
• CPI (%yoy, Aug/Jul/Jun): 2.5/2.9/2.5
• Core CPI (%yoy, Aug/Jul/Jun): 3.2/3.2/3.2

Japan – Naoki Tamura, a more hawkish BOJ Board member, indicated that the central bank needs to raise the benchmark rate to 1% or higher from current 0.25%.

• “I believe that we need to raise the short-term rate to at least around 1% in the second half of the bank’s projection period through fiscal 2026,” Tamura told at the conference in Okayama on Thursday.
• Tamura is the most hawkish member of the nine persons’ Board.

Eurozone – The central bank is expected to cut the deposit rate by 25bps to 3.5% later today.

• Inflation has been coming off hitting 2.2% the lowest since pandemic last month.
• Core measure has been also slowing down although progress somewhat stalled over the summer with the lates reading at 2.8%.
• Labour market has been resilient with unemployment rate at multi decade lows of 6.4%.
• Markets are currently pricing in 2-3 cuts before year end.

Russia – President Putin asked the government to consider potential export quotas of some of its commodities like nickel, titanium and uranium in retaliation to western sanctions.

• “Russia is the leader in strategic raw materials reserves like uranium, titanium, nickel,” Putin said during the meeting with the government.
• “I am not saying that this needs to be done tomorrow, but we could think about certain restrictions on supplies to the foreign market not only of the goods I mentioned, but also of some others,” Putin added.
• VSMPO-Avisma, one of the largest producers of titanium used in aviation industry, and Norilsk Nickel did not comment on the news.
• Russia is the world’s top exporter of nuclear fuel and controls almost half the global enrichment capacity.

Ukraine – Ukraine takes war to Moscow with drone and missile attacks

• Western officials openly debate potential to allow Ukraine to use Western missiles to attack Russia
• We suspect the open ‘media’ discussion on this issue is designed to offer Putin a chance to avoid further attacks by Ukraine on Moscow.
• Maybe the hardliners behind Putin will opt to avoid further strikes on Moscow offering a slim chance to sue for peace.

Currencies

US$1.1007/eur vs 1.1045/eur previous. Yen 142.87/$ vs 141.41/$. SAr 17.954/$ vs 17.859/$. $1.304/gbp vs $1.309/gbp. 0.668/aud vs 0.666/aud. CNY 7.124/$ vs 7.113/$.

Dollar Index 101.80 vs 101.36previous

Precious Metals

Gold US$2,515/oz vs US$2,525/oz previous

Gold ETFs 83.1moz vs 83.0moz previous

Platinum US$957/oz vs US$949/oz previous

Palladium US$1,024/oz vs US$987/oz previous

Silver US$28.8/oz vs US$28.8/oz previous

Rhodium US$4,825/oz vs US$4,825/oz previous

Base metals:   

Copper US$9,226/t vs US$9,140/t previous

Aluminium US$2,415/t vs US$2,365/t previous

Nickel US$16,170/t vs US$15,940/t previous

Zinc US$2,846/t vs US$2,751/t previous

Lead US$2,023/t vs US$1,984/t previous

Tin US$31,325/t vs US$31,270/t previous

Energy:           

Oil US$71.6/bbl vs US$70.3/bbl previous

• Crude oil prices edged higher as Hurricane Francine forced ~40% of production in the US Gulf of Mexico offline, with the EIA forecasting that global oil inventories will draw down by 0.9-1.0mb/d through to 1Q25.
• The EIA reported an unexpected 0.8mb build to crude inventories (-2.8mb expected), as well as 2.3mb builds to both motor gasoline and diesel stocks in the US, with refinery utilisation falling 0.5% to 92.8%.
• European energy prices were stable as EU natural gas storage levels rose 0.6% w/w to 93.2% full (vs 86.7% 5-Yr average), with all countries over 91% full and aggregate storage now at 1,068TWh.
• The €120m onshore Drumnahough wind farm project has been awarded a 60MW Contract for Difference for up to 16.5 years in the Irish Government’s RESS-4 auction. The weighted average for wind was €90.47/MWh.

Natural Gas €35.7/MWh vs €35.3/MWh previous

Uranium Futures $80.1/lb vs $79.5/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$94.7/t vs US$92.7/t

Chinese steel rebar 25mm US$470.2/t vs US$470.6/t

Thermal coal (1st year forward cif ARA) US$117.3/t vs US$117.0/t

Thermal coal swap Australia FOB US$135.8/t vs US$136.0/t

Coking coal Dalian Exchange futures price US$171/t vs US$171.0/t

Other:  

Cobalt LME 3m US$24,300/t vs US$24,300/t

NdPr Rare Earth Oxide (China) US$57,832/t vs US$59,400/t

Lithium carbonate 99% (China) US$9,896/t vs US$9,771/t

China Spodumene Li2O 6%min CIF US$740/t vs US$740/t

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

China Tungsten APT 88.5% FOB US$330/mtu vs US$333/mtu

China Graphite Flake -194 FOB US$440/t vs US$440/t

Europe Vanadium Pentoxide 98% 4.6/lb vs US$4.6/lb

Europe Ferro-Vanadium 80% 24.55/kg vs US$24.55/kg

China Ilmenite Concentrate TiO2 US$319/t vs US$320/t

China Rutile Concentrate 95% TiO2 US$1,369/t vs US$1,371/t

Spot CO2 Emissions EUA Price US$72.4/t vs US$72.4/t

Brazil Potash CFR Granular Spot US$290.0/t vs US$290.0/t

Germanium China 99.99% US$2,575.0/kg vs US$2,575.0/kg

China Gallium 99.99% US$445.0/kg vs US$445.0/kg 

Battery News

Global EV sales up, despite 19 month low in Europe

• Global sales of fully electric and plug-in hybrid vehicles rose by a yearly 20% in August, driven by record high sales in China, and despite a 33% drop in Europe to its weakest month since January 2023. (Rho Motion)
• Rho Motion expects this year’s sales in China to be up 33% from last year to 10.5m vehicles, while it predicts European sales to be roughly in line with last year’s 3.1m units.
• EV sales reached 1.47m globally in August, driven by record sales in China of over 1m vehicles.
• North American sales were also up 8% to 160,000 vehicles.
• YTD sales in Europe were down 4%, mostly due to a 23% decrease in Germany after a cut of subsidies.

Texas and California lead way in US battery pipeline

• Texas and California are leading the way on grid-scale battery systems, accounting for 72% of the battery networks in operation.
• The two states also account for 65% of battery development in the pipeline.
• According to the US Energy Information Administration (EIA), California has the largest network of 9,920MW of deployed utility battery capacity.
• Texas has the next largest grid-scale battery system of 4,832MW.
• The US has a total of 20,521MW of battery storage across 29 states, with a further 28,600MW expected to be online by mid-2026.
• California currently supplies around 17% of its peak demand energy from batteries, according to gridstatus.io.
• In 2024, the average price for US utilities has almost halved to around $148/kWh for a 20ft container system, compared to around $270/kWh for the same unit in 2022. (Clean Energy Associates)

Stellantis to invest $406m in Michigan plants for joint EV and hybrid platform

• Stellantis will invest $406m in three of its facilities in Michigan to develop a platform that can be shared between electric and hybrid vehicles.
• One of its facilities, the Sterling Heights Assembly Plant, would become its first in the US to build full EVs.
• The automaker will also look to spend more than $55bn within the decade in its aim to reach 100% passenger car battery electric vehicles sales (BEV) mix in Europe and 50% passenger car and light-duty truck BEV sales in the US by 2030.

Company News

Andrada Mining (ATM LN) 3.6p, Mkt cap £60m – Initial drilling results from Brandberg West

• Andrada Mining has released initial results from the first 10 holes (1,471m)  of its 20 hole, 2,975m drilling campaign at the historic Brandberg West mine in Namibia which closed during the 1980s.
• The site is located around 100km from Andrada Mining’s principal asset, the Uis tin mine and the inaugural drilling campaign comprises a series of angled holes aimed at steeply dipping vein structures containing tin, tungsten and copper.
• “The mineralisation occurs within multiple generations of quartz veins that trend east – west and northwest – southeast” and the drilling aims to “provide an initial indication of the grade potential and geology of the historical open pit area and to investigate the potential mineralisation of the northern extensions”.
• The company confirms that “All drill holes intersected mineralisation representing the primary metals of interest, namely tin (“Sn”), tungsten (“W”) and copper (“Cu”)” and highlights intersections including:
  • A downhole intersection of 2.88m (apparent width) at an average grade of 0.78% tin, 2.65% tungsten and 0.80% copper from a depth of 65.28m in hole AT3-10 which contained other intersections including 1.02m at an average grade of 0.12% tin, 2.54% tungsten and 0.62% copper from 100.63m depth; and
  • An intersection of 4.22m at an average grade of 1.12% tin, 0.83% tungsten and 1.40% copper from a depth of 110.88m in hole AT3-21; and
  • An intersection of 0.49m at an average grade of 4.47% tin, 1.65% tungsten and 0.91% copper from 107.51m in hole AT3-03 which also contained other mineralised sections including 1.22m averaging 0.95% tin, 1.15% tungsten and 0.99% copper from 10.02m and 0.40m at an average grade of 2.01% tin, 1.65% tungsten and 0.66% copper from 68.87m depth; and
  • An intersection of 0.84m at an average grade of 4.17% tin, 0.12% tungsten and 0.53% copper from a depth of 10.02m in hole AT3-05
• The company says that, in addition to the main target metals the drilling has shown anomalous “concentrations of silver and gallium … in several of the analysed samples” and that their economic significance will “be investigated as the project evolves”.
• Andrada Mining also says that results of this programme “will be utilised to produce an updated geological model which will form the basis of any follow-up exploration programmes”.
• Commenting on the initial results, CEO, Anthony Viljoen, said that “These intersections, with grades of up to 4% for tin, over 2% for tungsten and typically 0.5% – 2% for copper, underscore the licence’s commercial potential”.
• He also said that “Brandberg West expands Andrada’s portfolio of critical metals to include tungsten and copper”.

Conclusion: The initial drilling at Brandberg West has intersected steeply dipping veins containing tin, tungsten and copper mineralisation as expected from the evidence of historic mining.  We look forward to results from the balance of the drilling and to the company’s plans for progressing its exploration.

Atlantic Lithium* (ALL LN) 13.17p, Mkt Cap £85m – EPA permit approved

(Ewoyaa Ownership:  Atlantic 62.9% falling to 40.5% if Piedmont fund their share of Ewoyaa, Piedmont 18.2% rising to 40.5% on project funding, MIIF Sovereign Wealth fund 6%, Ghana 13%)

(Piedmont are contracted to pay $70m + 50% of the total Capex to raise their stake to 40.5%. Total cost would be $135m to Piedmont on a $200m capex.)

• The Environmental Protection permit for the Ewoyaa Lithium Project has been approved and granted by Ghana’s EPA ‘Environmental Protection Agency’.
• The EIS ‘Environment Impact Statement’ detailed the EPA setting out all the environmental protection and issues relating to the proposed mine and plant along with feedback from the EPA on the draft EIS.
• The document included details of local public hearings with attendance of very large numbers from local communities.
• The local Nkusunkum Traditional Council is reported in the Ghana press to have appealed to the President to ensure the development and commissioning of the Ewoyaa lithium mine before the end of the President’s tenure.

*SP Angel acts as Nomad to Atlantic Lithium. Two mining analysts from SP Angel recently visited the Ewoyaa mine site in Ghana and drove onto Takoradi to check the quality of the road to port. Our analysts also visited the Ministry of Minerals Commission and MIIF, the Ghana Minerals Income Investment Fund

B2 Gold (BTO CN) C$3.7, Mkt cap C$4.9bn – Agreement reached with Mali government for Fekola

• B2 has reached an agreement with the State of Mali over Fekola.
• The state owns 20% of the Mine and associate exploration prospects.
• The Government has granted exploitation permits for Fekola Regional, from early 2025, which is expected to support 80-100koz of additional production from satellite pits.
• Fekola to remain under Mali’s 2012 minng code until 2040, whilst Fekola Regional under 2023 Mining Code.
• B2 will settle ‘any and all income tax assessments for the period from 2016 through 2033.’
• They will also settle ‘any and all customs disputes and assessments that are currently outstanding.’
• Mali’s 20% interest in Fekola will take the form of a 20% preference share interest from the current 10% ordinary share interest. This will enable priority dividends going forward.
• Reimbursement of VAT will also be acknowledged.
• Taxes will also begin to be paid on Fekola Mine fuel imports.
• B2 states that the agreement ‘settles any and all existing tax assessments, customs disputes and other assessments currently outstanding.’

Critical Metals plc (CRTM LN) 2.4p, Mkt Cap £1.6m – NIU Invest SE invests further £350,000

• NIU Invest SE which has agreed a term sheet to invest £2.5m into CRTM Critical Metals Plc has announced the investment of a further £350,000 into the company.
• NIU invested £1m via a convertible loan note in April plus £105,000 as bridge financing using convertible notes.
• The notes are convertible at 2p/s and may be converted following publication of an FCA approved prospectus.
• Critical Metals plc has also issued 1.9m warrants exercisable at 0.5p/s and will issue a further 12.1m warrants subject to the completion of the NIU investment.
• Critical Metals has a 70% indirect holding in the Molulu copper mine in the DRC with a renewed offtake agreement with O.M Metal and Resources S.A.R.L for copper oxide ore.
• Testing by O.M. Metals on the stockpiled ore shows copper grades of 3.56%, 1.97%, and 1.11% from the Molulu mine.
• The company started mining at Molulu in January last year and has recently completed 28km of road rehabilitation necessary to restart trucking of supplies and ore.
• The team are looking to restart production of copper ore, to install a concentrator at site, create a better quality mine plan and to make further acquisitions in the region.
• Further drilling is expected to extent the Molulu mine with three separate copper zones identified, including a possible ROAN hosted copper zone in the south identified in trenching, soil chemistry analysis, and 3-D modelling.
• Management recently submitted paperwork for a five-year licence renewal to the Ministry of Mines.
• Discussions are ongoing for financial support with US Export-Import Bank, DFC ‘Development Finance Corporation’, and the USAID ‘US Agency for International Development’.

Griffin Mining (GFM LN) 154p, Mkt cap £284m – Half year results as lower base metal grades offset by gold and silver

• Griffin reports revenues of $86m for the period to 30^th June 2024, up from $70m same period last year.
• After tax profit of $11.3m vs $5.2m same period last year.
• Company produced 26.2kt Zn vs 28.1kt same period last year.
• 731t of lead vs 697t last year.
• 11.3koz Au vs 8koz last year, alongside 165koz vs 152koz silver last year.
• Zinc ore grade decline reported, 3.98% down to 3.76% yoy.
• Gold grade improved from 0.53g/t Au to 0.73g/t Au.
• Silver grade up to 14.8g/t from 14g/t last year.
• Zinc recoveries fell whilst gold and silver recoveries improved.
• Cost of sales down 1% yoy, whilst mined tonnage up 5.8%.
• Cash increased from $60m at year end to $65m in June.
• Share buybacks of $11.3m reported over the period.

Oriole Resources* (ORR LN) 0.36p, Mkt cap £14m – Initial drill results from Bibemi phase 5 programme

• Oriole reports assay results from ongoing drilling at their 82.2% owned Bibemi gold project.
• The Company has now drilled 2,814m over 22 holes of the 7,060m over 62-hole programme.
• The campaign is targeting the Bakassi Zone 1 prospect, where the current 375koz resource is held.
• Today’s results include 11 vertical holes and 10 inclined holes.
• Highlights from drilling include:
  • 4.1m at 8g/t Au from 17m
  • 2.7m at 14.7g/t Au from 45m
  • 2m at 12.5g/t Au from 109m
  • 2m at 10g/t Au from 99m
  • 1m at 8.53g/t Au from 90m
  • 1.2m at 5.4g/t Au from 22m
• The Company sees scope for additional near surface ounces given several intercepts within 50m of surface but outside of the MRE wireframes.
• Oriole notes that ‘true widths are variable due to difference in vein orientation, but are typically 60% of the reported downhole interval.’
• High-grade gold is related to laminated and brecciated quartz-tourmaline veins.
• Oriole is drilling a further 15 holes within the BZ1-MRE, to expand and upgrade the current Inferred Resource.
• Additionally, 25 holes are planned along-strike from the current resource, at prospects BZ1-NE and BZ1-SW.
• The targets along strike have been identified from Oriole’s surface exploration work
• The Bibemi drilling programme is expected to be completed in 4Q24.

Conclusion: Oriole is drilling out the Bibemi licence, where it currently holds a JORC MRE containing 375koz Au. Today’s results are predominantly infill and expected to upgrade the resource from its current inferred category. However, high-grade intercepts near surface outside the MRE wireframes raise the prospect of adding ounces within the current pit shell. 25 holes are targeted at two new prospects along strike from the current MRE, and we are looking forward to results due over the coming months.

*SP Angel acts as Broker to Oriole Resources

Resolute Mining (RSG LN) 34.4p, Mkt Cap £698m – Tomboronkoto resource upgrade and expansion may extend mine life at Mako in Senegal

• Resolute Mining has provided an updated mineral resource estimate (MRE) for its Tomboronkoto deposit in Senegal as well as outlining progress at its Bantaco exploration project, also in Senegal and an initial MRE for the Mansala project in Guinea.
• The company says that the Senegal drilling “has been focusing on three potential satellite deposits – Tomboronkoto, Bantaco and Laminia – that could extend the life of the Mako mine”.
• Infill drilling at the most advanced of these projects, Tomboronkoto, located around 16km east of the plant at Mako, has expanded and upgraded the initial, December 2023 MRE delivering a 30% increase in contained gold to “over 343 koz (initial MRE: 264 koz) grading 2.1g/t Au at 1g/t cut off or 571 koz (initial MRE: 403 koz) grading 1.1 g/t at 0.5 g/t cut-off”.
• The new estimate, at a 0.5g/t cut-off, contains a total of 15.5mt at an average grade of 1.1g/t for a total of 571koz of contained gold.
• We note that while the December 2023 MRE (10.2mt at an average grade of 1.2g/t hosting 403koz of gold) was all classified as ‘Inferred’ and that today’s MRE consists of an ‘Indicated’ portion of 13.2mt at an average grade of 1.2g/t hosting 496koz plus 2.3mt averaging 1g/t hosting a further 75koz classed as ‘Inferred’.
• Resolute Mining confirms that the mineralisation at Tomboronkoto, described as “a relatively simple geometry comprising a zone that varies from 30 to 60m in width, along the 1,700m strike length drilled to date … remains open down dip and along strike to the southwest” which we interpret as offering scope for a further resource expansion as the drilling progresses.
• The company also comments that “Preliminary metallurgical test-work performed by Resolute on samples from Tomboronkoto show the mineralisation is free milling with recoveries exceeding 90% from both weathered and fresh material”.
• At Bantaco, a wide-spaced reverse circulation drilling programme, started in June, is progressing “to traverse the outcropping gold mineralisation and coincident geochemical anomalies … [and an update on progress ] … is expected in Q4 2024”.
• In Guinea’s Siguiri Basin, “Drilling to date … [at the Mansala project] … has outlined a gold mineralised shear zone over 1.5km long and an Inferred Mineral Resource of 6.6Mt grading 1.6 g/t Au for 343 koz at a cut-off of 1 g/t”.
• The company confirms that this “Mineral Resource remains open along strike and down dip and future work will focus on expanding this resource”.
• CEO, Terry Holohan, welcomed the progress on “our priority of extending the life of the Mako operation with further drilling success and a significant increase in the Mineral Resources at the Tomboronkoto project which is close to the Mako processing facility … [and said that] … Engineering work is progressing in parallel to ensure an investment decision can be made on this project in early 2025”.
• He explained that the work at Bantaco is “starting to intersect mineralisation close to surface and we will publish these results in due course”.
• Mr. Holohan also disclosed that Resolute Mining has “recently agreed terms of an earn-in for a project in Cote D’Ivoire and this will be announced soon subject to finalising our due diligence”.

Conclusion: The successful upgrading and expansion of the Tomboronkoto MRE could provide an opportunity to extend the operational life of the Mako mine in Senegal where other satellite targets are also being actively being explored.  An initial resource at Mansala in Guinea and an earn-in to a project in Cote d’Ivoire expand Resolute Mining’s West African project portfolio.

No.1 in Base Metals: SP Angel mining team awarded No 1. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q1 2024

No.1 in Copper:  “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”

No1. In Gold:  “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”

The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020

Analysts

John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490

Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484

Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk – 0203 470 0474

Sales

Richard Parlons –Richard.Parlons@spangel.co.uk – 0203 470 0472

Abigail Wayne – Abigail.Wayne@spangel.co.uk – 0203 470 0534

Rob Rees – Rob.Rees@spangel.co.uk – 0203 470 0535

Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)

+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

DISCLAIMER

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

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

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

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

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

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

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

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

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

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

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