SP Angel Morning View -Today’s Market View, Thursday 20th February 2025

Gold hits another record high amid growing tension between Europe and the US

MiFID II exempt information – see disclaimer below

Anglo American (AAL LN) – Restructuring reflected in the increasing prominence of the copper and iron-ore businesses

B2Gold (BTO CN) – Production slides as Goose first pour looms

Blencowe Resources (BRES LN) – Potential hydropower options for the Orom Cross graphite project, Uganda

Equinox Gold (EQX CN) – Record gold production as Greenstone comes online

First Tin (1SN LN) – Positive results from Taronga crushing tests

Greatland Gold (GGP LN) – Mineralisation identified at depth beneath Telfer’s West Dome pit

Ivanhoe Mines (IVN CN) – Record production from Kamoa Kakula

Lundin Mining (LUN CN) – Record production in 2024 following year of M&A

Rio Tinto (RIO LN) – Results as earnings impacted by weaker iron ore prices

Tertiary Minerals* (TYM LN) – Update on Konkola West drilling with KoBold

Gold ($2,954/oz) hits another record high amid growing tension between Europe and the US

• Gold prices have soared higher, now hovering at further all time highs.
• The move has been supported by escalating tensions between Europe and the US, with Trump increasing criticism of Zelenskiy.
• Meanwhile, the dollar has weakened after a rally in the Japanese Yen overnight, pushing the dollar index lower.
• Additionally, Trump stated intentions to audit the gold in Fort Knox after calls from Rand Paul and Elon Musk.
• He stated that “We hope everything’s fine with Fort Knox, but we’re going to go to Fort Knox — the favorite Fort Knox — to make sure the gold is there.”
• Further reports are surfacing of gold shortages in London, with gold being flown to the US in pre-emption of potential US tariffs.

Africa tour site visits:

• The full team is now back from touring mines, exploration sites and farms in Zimbabwe and Zambia
• We visited Moxico Resources*, Kavango Resources* (KAV LN), Prospect Resources (PSC AU) and Midnight Sun Mining (MMA CN)
• Visiting mines is as much about the journey, logistics and management as the assets in the ground as well as the general chat on what is going on in country.
• Moxico: We were very pleased to see so much progress at Moxico’s Mumbula copper mine with significant expansion underway.
• The rate and progress at Mimbula is extraordinary with >$1bn of contained copper is already sitting in stockpiles awaiting processing.
• Mimbula has a resource of 76.4mt grading 1.19% cu with target copper production of 56,000tpa in Phase 1 of the development with 46.000tpa of LME-grade copper cathode.
• Moxico is a private company with the stock trading in the grey market with the assistance of Moxico management.
• Kavango are awaiting on drill assays before taking decisions on how to expand their mines and prospects at the Hillside Gold project near Bulawayo in Zimbabwe.
• The team currently support a number of local small-scale miners through the use of local crushing and simple processing facilities with the locals taking the free (visible) gold and Kavango recovering everything the locals are not able to recover.
• The sheer number of parallel veins being mined along with new understanding of the mineralisation of the host rock suggests the prospects offer good potential to expand into much larger gold mines.
• Prospect Resources’ Mumbezhi copper project lies surprisingly close to the old Equinox Lumwana copper mine, now owned by Barrick Gold but the mineralised cores are very different.
• A new theory suggests the resources at Mumbezhi represent the host rock which fed into Lumwana suggesting a very substantial resource may be developed at the Mumbezhi prospects.
• Midnight Sun’s Kazhiba is easy to reach off the road to FQM’s Kanshanshi mine. A further 13 drill holes are planned at Kazhiba in the new field season to follow up on the 54 RC holes (2,005m) already drilled into the Kazhiba oxide copper target. 2024 drill highlights include: 10.69% cu over 21m, 5.60% cu over 26m, and 3.01% cu over 15m, and 4.66% cu over 7m.

Conclusion:  There is so much exploration and mining activity west of Solweizi in Zambia.

What was once a difficult and remote area is now teeming with geologists and mining services making access and geological investigation very much easier.

There are regular flights into the major mining centres of Ndola, Chingola and Solwezi and Starlink gives teams access to high-speed internet.

The rush to develop new copper resources is developing new momentum with strong support from the Zambian President, local chiefs and population who value the well-paid jobs created by the copper and gold mines.

Please feel free to contact us if you would like further details on any of the above. *The analyst holds shares in Moxico and Kavango

Ps we do not recommend visiting analysts use Waze for navigation, unless you really want to get stuck in the undergrowth!

Trump set to impose 25% tariffs on vehicles, pharmaceuticals and chips

• Donald Trump has cited 2 April for more details on tariffs that he intends to impose on the import from a range of industries.
• Speaking on Tuesday, Trump said he intends to impose auto tariffs “in the neighbourhood of 25%.”
• Trump has been vocal against what he calls the unfair treatment of US automotive exports in foreign markets.
• The EU collects a 10% duty on vehicle imports, four times the current US passenger car tariff rate of 2.5%.
• Trump said that tariffs on pharmaceuticals and semiconductor chips would also start at “25% or higher”, rising substantially over the course of a year.
• He did not provide a date for announcing those duties, but said he wanted to provide some time for drug and chip makers to set up US factories so that they can avoid tariffs.

70 Christians found beheaded in church in Kasanga, DRC

• Reports are emerging of a major atrocity by the ADF rebels in a church in Kasanga in the East of the DRC.
• 70 Christians are reported to have been decapitated using machetes in a protestant church by the ADF who are said to be linked to ISIS.
• M23 rebels, a larger group have recently entered the towns of Goma, Kavumu. Kazingu and Bagira in South Kivu.
• The rebels are alleged to be supported by the Rwandan government with the killing of some 2,000 people and >350,000 displaced.
• The authorities are uncertain as to who controls the Kavumu airport which lies ~30km from Bukavu, the capital of South Kivu.

Economics

US – Minutes from the latest FOMC meeting in January highlighted concerns over sticky inflationary pressures among policymakers who voted to leave rates unchanged at 4.25-4.50%.

• Policymakers said that the Fed “was well positioned to take time to assess the evolving outlook for economic activity, the labor market, and inflation.”
• The Fed wants to see how potential President Trump trade tariffs and tighter immigration controls are to affect the economy and inflation.
• President Trump said yesterday the administration will announce new tariffs on lumber, cars, semiconductors and pharmaceuticals “over the next month or sooner”. (Reuters)

China – China calls on ricer regions to raise consumption and domestic demand to drive GDP Growth

• Qiushi, the CCP main journal has called on the key economic regions of China to raise domestic demand as the US raises trade tariffs.
• 15 provincial authorities cut 2025 GDP growth targets on anaemic domestic demand and concerns over the impact of US tariffs.

The central bank left benchmark loan prime rate unchanged, in line with expectations, as authorities await the progress on US/China trade discussions.

• 3y and 5y rates were kept at 3.1% ad 3.6%, record lows following cuts over the past two years.

Ukraine/Russia – President Trump is putting pressure on Kyiv to start discussing ceasefire with Russia calling President Zelensky “a dictator without elections”.

• “Zelensky better move fast or he is not going to have a country left”, Trump wrote in his social media post.
• Carrying elections at this point may be complicated by the fact ~20% of Ukrainian territory is controlled by Russian forces while >6m people are estimated to have fled the country into Europe.
• US administration is considering agreeing a simplified minerals deal with Ukraine first to follow with more detailed terms.
• President Zelensky earlier refused to sign the deal over 50% of the nation’s critical minerals including REE, titanium, uranium and lithium among others.
• Ukrainian administration said they need more time to study the proposal and draft its own proposal with President Zelensky also seeking security guarantees as part of the deal.

Japan – The currency reached its strongest level since the start of the year on expectations for more BOJ rate hikes.

• The currency briefly crosse the 150 mark earlier this morning.
• The central bank raised rates by 25bp to 0.5% earlier in January.
• Markets are currency pricing in a 84% chance of another rate increase at the July meeting, compared to ~70% at the start of the month.
• January CPI numbers to be released this Friday and to be followed closely.

Currencies

US$1.0438/eur vs 1.0452/eur previous. Yen 150.37/$ vs 151.79/$. SAr 18.499/$ vs 18.338/$. $1.261/gbp vs $1.263/gbp. 0.637/aud vs 0.636/aud. CNY 7.263/$ vs 7.285/$

Dollar Index 106.923 vs 106.993 previous.

Precious metals:

Gold US$2,953/oz vs US$2,940/oz previous

Gold ETFs 83.9moz vs 83.7moz previous

Platinum US$978/oz vs US$983/oz previous

Palladium US$979/oz vs US$985/oz previous

Silver US$33.0/oz vs US$33.0/oz previous

Rhodium US$4,650/oz vs US$4,650/oz previous

Base metals:   

Copper US$9,524/t vs US$9,458/t previous

Aluminium US$2,709/t vs US$2,680/t previous

Nickel US$15,670/t vs US$15,360/t previous

Zinc US$2,913/t vs US$2,892/t previous

Lead US$2,006/t vs US$1,982/t previous

Tin US$33,190/t vs US$32,750/t previous

Energy:           

Oil US$76.2/bbl vs US$76.3/bbl previous

• Crude oil prices were stable as the API estimated a 3.3mb/d w/w build to US crude inventories, vs consensus expectations for a 2.2mb build.
• European energy prices edged lower on Ukraine peace dialogue despite EU natural gas storage levels falling by 4.6% w/w to 42.6% full (vs 53% 5-Yr average) with aggregate inventory now at 489TWh.

Natural Gas €47.2/MWh vs €49.8/MWh previous

Uranium Futures $65.3/lb vs $65.4/lb previous

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$107.6/t vs US$106.8/t

Chinese steel rebar 25mm US$487.1/t vs US$485.8/t

HCC FOB Australia US$187.5/t vs US$187.8/t

Thermal coal swap Australia FOB US$107.0/t vs US$106.5/t

Other:  

Cobalt LME 3m US$21,550/t vs US$21,550/t

NdPr Rare Earth Oxide (China) US$59,749/t vs US$59,577/t

Lithium carbonate 99% (China) US$9,981/t vs US$9,952/t

China Spodumene Li2O 6%min CIF US$815/t vs US$815/t

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

China Tungsten APT 88.5% FOB US$343/mtu vs US$343/mtu

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

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

Europe Ferro-Vanadium 80% US$24.8/kg vs US$24.8/kg

China Ilmenite Concentrate TiO2 US$295/t vs US$294/t

Global Rutile Spot Concentrate 95% TiO2 US$1,543/t vs US$1,543/t

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

Brazil Potash CFR Granular Spot US$317.5/t vs US$317.5/t

Germanium China 99.99% US$2,725.0/kg vs US$2,725.0/kg

China Gallium 99.99% US$385.0/kg vs US$385.0/kg

Battery News

Northvolt sells heavy industry battery business to truckmaker Scania

• Swedish battery maker Northvolt has agreed to sell its business that produces battery pack for the heavy duty industry, to Scania, as part of its restructuring.
• While Northvolt did not mention Scania by name in the announcement, the truckmaker confirmed to Reuters that it was the buyer.
• Northvolt Systems Industrial was one of the struggling battery makers only profitable branches.
• The companies both declined to disclose the sale price.

Company News

Anglo American (AAL LN) 2,440.5p, Mkt Cap £31.7bn – Restructuring reflected in the increasing prominence of the copper and iron-ore businesses

• Anglo American reports what it describes as “Strong operational and cost performance” and underlying EBITDA of US$8.46bn for the year 31st December 2024 (2023 -US$9.96bn).
• Underlying earnings declined by US$1bn to US$1.94bn (2023 – US$2.93bn) with a “Loss attributable to equity shareholders of $3.1 billion – recognising net impairments of $3.8 billion” (2023 attributable profit – US$0.28bn).
• Closing net debt of US$10.6bn is comparable with the US$10.6bn reported at the end of 2023.
• Results reflect what the company describes as “Strong cost savings performance across the Group … [and] … a 10% reduction in the Group basket price, lower volumes and the impact of inflation … [with all businesses delivering] … their full year production guidance”.
• The US$3.81bn (45%) contribution from copper dominates the underlying EBITDA (2023 – US$3.23bn (32%) at an overall margin of 50%, with US$2.66bn from iron-ore (2023 – US$4.01bn) contributing a further 31% at a 40% margin.
• The platinum operations, the demerger of which is to be put to shareholders at April’s AGM, delivered a further US$1.11bn (13%) to the EBITDA (2023 – US$1.21bn).
• Chief Executive, Duncan Wanblad emphasised Anglo American’s transformation to “a far higher margin and more valuable mining company focused on exceptional copper, premium iron ore and crop nutrients assets”.
• Commenting on the 2024 performance, he said that it “saw us transform our performance, with strong operational and cost delivery, $1.3 billion of costs removed on a run rate basis in 2024 with a further $0.5 billion to come by the end of 2025, and major progress with our portfolio simplification”.
• On the streamlining of the portfolio, he described “excellent progress” and said that Anglo American has “agreed the sale of our steelmaking coal business for up to $4.8 billion in gross cash proceeds and have this week agreed the sale of our nickel business for cash consideration of up to $500 million”.
• Commenting on the proposed demerger of the platinum business he said that “we intend to retain a 19.9% interest in AAP to help manage flowback post demerger and which we expect to exit responsibly over time. All of the above will deliver a step-change in our balance sheet flexibility.”
• Further restructuring includes “work to separate De Beers is well under way, with action taken to strengthen cash flow in the near term and position De Beers for long-term success and value realisation. Given prevailing diamond market conditions, we have reduced our carrying value of De Beers by $2.9 billion”.
• In a separate announcement today, Anglo American reports a MoU with Chilean copper miner Codelco “to implement a joint mine plan for the two companies’ respective, adjacent copper mines of Los Bronces and Andina in Chile”.
• Mr. Wanblad said that “Los Bronces and Andina present obvious and significant adjacency benefits and together represent approximately 2% of global copper Resources and Reserves, with approximately 60 million tonnes of contained copper”.
• He said that “By putting in place a joint mine plan and optimising the use of our respective processing plants, we believe we can unlock an additional 2.7 million tonnes of copper production over a 21-year period from 2030 alongside other operational synergies made possible by coordinating our activities across the site”.

Conclusion: 2024 results reflect the increasing focus on copper and iron-ore, which now represent ~75% of EBITDA, as Anglo American streamlines its business with disposals of its coal and nickel operations, a planned demerger of the platinum business and De Beers.

B2Gold (BTO CN) C$3.8., Mkt Cap C$5bn – Production slides as Goose first pour looms

• B2 Gold produced 804koz Au over 2024, down from 1.1moz in 2023.
• The Company reported AISC of $1,465/oz over 2024, up from $1,201/oz in 2023.
• Fekola production fell from 590koz in 2023 to 393koz.
• Fekola AISC rose from $1,194/oz to $1,723/oz.
• Otjikoto in Namibia produced 198koz Au in 2024 vs 209koz 2023, AISC down to $951/oz.
• Company held $337m and $421m in debt.
• Company reports major growth project Goose is set for first gold pour in 2Q25, before commercial production in 3Q25.
• Total Goose CAPEX estimated at C$1.5bn before first production.
• Goose is set to produce 120-150koz Au in 2025, followed by average annual production of 310koz Au between 2026-2031.
• Company had previously guided to 220-260koz in 2025, with Goose Capex previously revised up from C$1bn.

Blencowe Resources (BRES LN) 4p, Mkt Cap £12m – Potential hydropower options for the Orom Cross graphite project, Uganda

• Blencowe Resources reports the availability of “abundant, low-cost, and renewable hydropower from the Ugandan national grid” for its Orom Cross graphite deposit in Uganda.
• Hydropower is available from the Nile sourced at both the “Bujagali Hydroelectric Dam in Jinga and the other from the Isimba Hydroelectric Dam” and the announcement confirms that there is adequate capacity to meet “Orom-Cross’s power demand of 12MW (Phase 2) rising to 40MW at full production”.
• Blencowe Resources is “now working towards securing a long-term PPA with Uganda Electricity Transmission Company Limited (UETCL) to formalise the supply of low-cost hydroelectricity for the Project”.
• Executive Chairman, Cameron Pearce said that “Access to abundant, low-cost hydropower directly from Uganda’s national grid represents a major strategic advantage for Orom-Cross. This will enable us to operate sustainably with one of the lowest carbon footprints in the graphite sector while keeping production costs highly competitive”.
• Today’s announcement reiterates Blencowe Resources’ commitment to “delivering a world-class graphite project with industry-leading sustainability credentials”.

Conclusion: Availability of adequate, sustainable, hydropower for Orom Cross should help to contain project costs.  We await the outcome of the continuing discussions on a long term power purchase agreement with interest.

Equinox Gold (EQX CN) C$9.7, Mkt Cap C$4.4bn – Record gold production as Greenstone comes online

• Equinox Gold reports full year production of 622koz Au.
• AISC over 2024 at $1,870/oz.
• Company guides to 635-750koz Au with AISC of $1,455-1,550/oz in 2025.
• 2025 SUSEX forecast at US$310m, non-sustaining expenditures at US$102m.
• EBITDA over 2024 of US$458m/
• Company refrains from issuing cost and production guidance for Los Filos amid ongoing negotiations with local communities.

First Tin (1SN LN) 5.25p, Mkt Cap £22m – Positive results from Taronga crushing tests

• First Tin reports that crushing tests on mineralised material from its Taronga tin project in New South Wales have shown that a high proportion of the contained tin can be recovered from a relatively coarsely crushed product without the need for more costly ore-sorting.
• Today’s announcement explains that “it is possible to obtain up to 89.5% of the contained tin into the minus 2.8mm fraction after coarse crushing, with an average of 87.1% across seven samples”.
• The results reported today are from samples retrieved from “the old Newmont adit …  [and] … from the recent trial blast area”.
• Testwork is continuing, but commenting on the results so far, CEO, Bill Scotting, explained that Taronga’s “unique mineralisation with the coarse cassiterite grains residing in sub-vertical quartz veins allows the liberation of much of the tin into the minus 2.8mm fraction after simple crushing to a relatively coarse size”.
• He said that the “new crushing testwork confirms that up to 90% of the tin (average 87%) is liberated into the minus 2.8mm fraction after crushing to 12mm and then passing the crushed material through a series of Vertical Shaft Impact (VSI) crushers to simply knock the exposed cassiterite off the host rock”.

Conclusion: High tin liberation rates from simple coarse crushing is likely to be positive for the future operating costs at Taronga.  We await results from the continuing test programme with interest.

Greatland Gold (GGP LN) 8.9p, Mkt Cap £1,073m – Mineralisation identified at depth beneath Telfer’s West Dome pit

• Greatland Gold reports that an initial programme of 19 drillholes at the West Dome area of its Telfer gold mine has confirmed the presence of high-grade mineralisation, in a geological setting similar to that at the mine’s Main Dome underground mine, around 800m below the West Dome open pit.
• The announcement confirms that 16 of the 19 holes completed at this stage along around 3km strike length, intersected mineralisation “with the average down hole intercept from these 16 holes of 23.2m @ 2.95g/t Au and 1.07% Cu” which the company reports as 4.23g/t on a gold equivalent (AuEq) basis.
• Among the results highlighted are:

• • An intersection of 14.3m at an average grade of 9.06g/t gold and 8.57% copper (19.34g/t AuEq) from a depth of 290.4m in hole WUC4550022; and
  • An intersection of 59.0m at an average grade of 2.83g/t gold and 0.71% copper (3.68g/t AuEq) from a depth of 259.0m in hole WUC4550007

• The announcement explains that mineralisation has been identified “over 700m of strike and remains open along strike and down dip” and that planning is underway for further drilling aimed at “both infill of the existing mineralisation and continued extensions along strike and down dip, to support definition of a maiden Mineral Resource estimate”.
• Welcoming the “exceptional drilling results from the maiden underground drilling campaign … [Managing Director, Shaun Day said that they] … confirm that key geological units hosting the Main Dome Underground mineralisation are present in the West Dome Underground. Mineralisation remains open along strike and down dip, and we intend to increase our confidence of the initial body as well as continue to test extensions in our further work”
• Mr. Day explained that a “primary focus for us at Telfer is mine life extension, and these results confirm the West Dome Underground Project as a very high priority target for us”.
• The company’s announcement explains that “The Main Dome Underground is situated below the Main Dome Open Pit, and to date has produced more than 75Mt for 3.1Moz gold and 210kt copper … [and that the] … West Dome Underground Project … emerged from the recognition that key geological structures hosting mineralisation in the Main Dome Open Pit repeat in the West Dome Open Pit”.

Conclusion: Drilling beneath the West Dome open-pit at Telfer has intersected extensive mineralisation similar to that seen beneath the Main Dome pit.  Further drilling is planned to help define an initial mineral resource estimate which could, potentially extend Telfer’s life.  We await further news as the exploration progresses.

Ivanhoe Mines (IVN CN) C$16, Mkt Cap C$21bn – Record production from Kamoa Kakula

• Ivanhoe produced 437kt Cu over 2024, up 11% from 2023 following the Phase 3 concentrator ramp up.
• Kamoa guided for 520-580kt Cu in 2025, before ramping up to 600kt Cu in 2026.
• C1 guided for $1.65-1.85/lb vs 2024 C1 costs of $1.65/lb.
• Kipushi 2025 production guidance of 180-240kt Zn concentrate before ramping up to 250kt Zn in 2026.
• Ivanhoe EBITDA over 2024 at US$625m.
• Company completed the construction of the direct-to-blister smelter, with commencement expected in 2Q25.
• Company has signed an offtake agreement for copper anodes with Zijin for 80% of the smelter’s anode production.

Lundin Mining (LUN CN) C$12.3, Mkt Cap C$11bn – Record production in 2024 following year of M&A

• Lundin Mining produced 369kt Cu over 2024, generating adj. EBITDA of US$1.7bn and free cash flow of US$873m.
• Company holds net debt of US$1.3bn, expected to fall with closing of sale of Neves-Corvo and Zinkgruvan.
• The Company acquired a 50% stake in Filo Corp alongside BHP over the period.

Rio Tinto (RIO LN) 5,068p, Mkt Cap £82bn – Results as earnings impacted by weaker iron ore prices

• Rio’s underlying profit fell c.8% to $10.9bn, EBITDA fell $0.6m to $23.3bn.
• Iron ore EBITDA down 19%, aluminium EBITDA up 61% and copper EBITDA up 75%.
• Group cash flow from operations up 3% to $15.6bn.
• Net debt of $5.5bn.
• Lower iron ore prices partially offset by stronger copper, bauxite and aluminium prices.
• Iron ore free cash flow down 25% to $8.6bn.
• Copper free cash flow of $526m, after $2.1bn in CAPEX.
• Copper volumes rose 3% driven by Oyu Tolgoi ramp up and improved grades at Escondida.
• Stripping investment at Kennecott to continue through to 2027.
• Oyu Tolgoi underground expected to produce 500ktpa Cu from 2028 to 2036.
• Minerals division reports EBITDA of $1.1bn
• Rincon greenlit with $2.5bn in CAPEX and first production due 2028 followed by three year ramp up to full capacity of 57ktpa.
• Company spent $0.9bn on exploration expenditure over the period, down from $1.4bn on Simandou capitalisation.
• First production from Simandou expected 2025, ramping up to 60mtpa (27mt Rio share) over 30 months.
• Zulti south mineral sands project remains on indefinite suspension.
• 2024 Production and 2025 guidance:
  • Pilbara iron ore: 329mt (2025E: 323-338mt)
  • Bauxite: 59mt (2025E: 57-59mt)
  • Alumina: 7.3mt (2025E: 7.4-7.8mt)
  • Aluminium: 3.3mt (2025E: 3.25-3.45mt)
  • Copper: 793kt (2025E: 780-850kt)
  • Tio2 Slag: 1mt (2025E: 1-1.2mt)
  • IOC pellets and concentrate: 9.4mt (9.7-11.4mt)
• Commodity Outlook:
  • Company notes finished steel demand has increased 1% in China between 2019-2024, whilst copper demand has increased 20% and aluminium demand up 21%.
  • Rio note property weakness offset by energy transition demand from EVs, power/grid investment and new growth drivers like data centres.

Tertiary Minerals* (TYM LN) 0.08p, Mkt Cap £2.9m – Update on Konkola West drilling with KoBold

• Tertiary has provided an update on their Konkola West progress, where KoBold is drilling to target deep dipping extensions of the high-grade ore shale seen at Konkola and Lubambe.
• The first hole has now been drilled past 2,600m down-hole, and has hit the Kitwe Formation.
• The Kitwe Formation usually lies c. 25m-225m above the targeted Lower Roan Subgroup, which hosts the Zambian Copperbelt ore shale.
• KoBold is targeting completion of the hole at 3,000m.
• KoBold has advised Tertiary it will start drilling a second hole at Konkola West after the completion of the first hole.
• The second hole will target Lower Roan zones suspected to be closer to surface.
• KoBold state they are ‘using the data collected… to update our regional models and predictions and design our next hole at Konkola West.’

Conclusion: KoBold has now drilled what is likely the Zambian copperbelt’s deepest hole on record. The Company will use the information gained from the drilling to further boost their understanding of the stratigraphy and structural geology of the region. We look forward to information on the second hole which is due to start imminently.

*SP Angel acts as Nomad and Broker to Tertiary Minerals

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