SP Angel Morning View -Today’s Market View, Thursday 22nd May 2025

US preliminary decision to impose up to 721% tariffs on natural and synthetic graphite active anode material from China

MiFID II exempt information – see disclaimer below

Anglo Asian Mining* (AAZ LN) – BUY – FY24 loss reflects weak output with a major rerating due in FY25/26 as operations and earnings recover

Atlantic Lithium* (ALL LN) – Discovery of lithium-bearing spodumene in Ivory Coast at Rubino and Agboville

EQ Resources (EQR AU) – A$18.8m fund-raising

Ironveld (IRON LN) –– Commissioning of DMS plant and offtake news

KEFI Gold and Copper* (KEFI LN) – £7.6m equity raise

Metals One (MET1 LN) – Exploration underway on US uranium projects

NGEX Minerals (NGEX CN) – Drilling intercepts new Copper-Gold porphyry at Lunahuasi

New Frontier Minerals (NFM LN) – Collaboration on processing may offer a route to copper production in Queensland

Solaris Resources (SLS CN) – US$200m streaming agreement from Royal Gold to advance Warintza copper project

Strategic Minerals* (SML LN) – Drilling planned in Cornwall for late June

West African Resources (WAF AU) – Deep drilling at Sanbrado to support 500kozpa long-term production target

Graphite – US preliminary decision to impose up to 721% tariffs on natural and synthetic graphite active anode material from China

• The US ITC ‘International Trade Commission’ has determined that China has suppressed the establishment of the graphite industry in the US and elsewhere through the export of subsidised graphite.
• The US Commerce department is also conducting its own antidumping investigation with the potential to add to any other tariffs to be imposed.
• Date for the final determinations on both investigations is the 5^th December this year,
• The trade case was filed by the American Active Anode Material Producers which includes four members of the North American Graphite Alliance
• A 25% tariff is already scheduled to take effect on 1 January 2026 on natural flake and synthetic graphite imports from China as part of the reinstated Section 301 tariffs.
• The ITC is also running a trade case alleging China is dumping artificially cheap graphite into the US at margins up to 920% according to NAGA ‘North American Graphite Alliance’.
• NAGA is seeking tariffs at that same rate to offset the dumping and level the pricing playing field for domestic producers.
• The ITC issued a preliminary finding in January that China is preventing the establishment of a domestic graphite industry, triggering a full investigation at Commerce under the jurisdiction of US antidumping and countervailing duty. The case is ongoing.
• Investors have shunned graphite due to China’s dominance making it difficult for companies to raise necessary funds to develop new graphite mines and production facilities.
• Battery manufacturers are also said to use more expensive synthetic graphite in their Active Anode Material due to its electrolyte compatibility, faster charging and longer battery life though we believe much of this is due to the shape of the graphite particles and the coatings applied.
• We also see the use of graphene as a composite material within graphite as beneficial for charging speeds and life cycles.

Friedland lobbies US to add high-grade iron ore to critical minerals list

• Robert Friedland has lobbied the US government to add high-grade iron ore to their critical minerals list.
• The mining entrepreneur has recently been promoting Ivanhoe Atlantic, which holds the Guinean Kwon Kweni  and Nimba projects, set to produce 2-5mtpa with potential to scale up to 25mtpa within seven years.
• Friedland was emphasising the role of steel in the defence sector.

We are believers in the high-grade iron ore story as steelmakers continue to build out their EAF capacity, and see Beowulf Mining* as a major beneficiary of the long-term tailwinds

*SP Angel acts as Nomad and Broker to Beowulf, an SP Angel analyst recently visited Beowulf’s Kallak project

Tin ($33,000/t) continue to climb whilst China’s top producer sees concentrate supply rebounding

• Tin prices have held their ground, despite the restart of the Bisie mine in North Kivu, DRC.
• However, the Man Maw mine in the Wa State, Myanmar, has yet to resume major operations, despite getting the greenlight from officials.
• Chinese smelters have reported a shortage in concentrate as a result, with GM at Yunnan Tin stating that it has weakened treatment fees and weighed on their downstream operations.
• However, the Company expects output from the DRC and Myanmar to return to normal levels by the end of the year. (Bloomberg)
• Despite this, the Company sees tin prices climbing to $42k/t in China by year-end, from current levels at $37k/t.

Copper – We’ve Never Seen This Before in the World: Video: 

Podcast: https://audioboom.com/channels/4099560-the-sharepickers-podcast-with-justin-waite

Economics

US – US retailer, Target, has revised their earnings outlook lower for the year baed on weaker Q1 sales, falling consumer confidence and tariffs. 

• Weaker Sales: fell 3.8% yoy in Q1 significantly worse than forecasts.
• Tariffs: tariff uncertainty has disrupted shipments and stock levels
• Consumer Confidence: worsening consumer confidence has hit sales
• Cost Pressures: higher discounting and the cost of digital ales and supply chain expenses

UK – Government debt sale delayed as Bloomberg terminal collapse leaves traders running blind

• A global outage of Bloomberg terminals yesterday caused the UK government to delay its latest sale of government debt.
• The global outage caused the bidding window to be extended for the auction of 4% 2031 Treasury Gilts which was concluded later in the day.
• The last major outage was in 2015.

Currencies

US$1.131/eur vs US$1.133/eur previous, Yen 143.10/$ vs 143.79/$, SAr 17.976/$ vs 17.943/$, US$1.342/gbp vs US$1.342/gbp, US$0.644/aud vs US$0.645/aud,

CNY 7.207/$ vs 7.201/$. Dollar Index 99.73 vs 99.68.

Precious Metals

Gold US$3,329/oz vs US$3,311/oz previous

Gold ETFs 88.7moz vs 88.7moz previous

Platinum US$1,088/oz vs US$1,053/oz previous

Palladium US$1,041/oz vs US$1,011/oz previous

Silver US$33.7/oz vs US$33.4/oz previous

Rhodium US$5,500/oz vs US$5,425/oz previous

Base metals:

Copper US$9,519/t vs US$9,595/t previous

Aluminium US$2,482/t vs US$2,491/t previous

Nickel US$15,507/t vs US$15,598/t previous

Zinc US$2,690/t vs US$2,732/t previous

Lead US$1,959/t vs US$1,994/t previous

Tin US$33,038/t vs US$33,038/t previous

Energy:

Oil US$64.2/bbl vs US$66.1/bbl previous

Henry Hub Gas US$3.34/mmBtu vs US$3.39/mmBtu yesterday

• Crude oil prices moved lower on media reports that OPEC+ member countries were discussing a third large monthly output increase in July production quota volumes.
• The EIA estimated w/w US inventory builds of 1.3mb to crude, 0.8mb to gasoline and 0.6mb to diesel stocks, with refinery utilisation up 0.5% w/w to 92.7 and domestic production remained flat at 13.4mb/d.
• European energy prices were flat as EU natural gas storage levels rose 1.7% w/w to 45.1% full (vs 55.9% 5-Yr average) with aggregate inventory at 511TWh and all countries now exceeding 30% full.

Natural Gas €36.8/MWh vs €37.1/MWh previous

Uranium Futures $71.6/lb vs $71.6/lb previous

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$100.1/t vs US$100.8/t

Chinese steel rebar 25mm US$469.5/t vs US$469.5/t

HCC FOB Australia US$189.5/t vs US$190.0/t

Thermal coal swap Australia FOB US$103.0/t vs US$102.5/t

Other:  

Cobalt LME 3m US$33,251/t vs US$33,700/t

NdPr Rare Earth Oxide (China) US$60,086/t vs US$60,207/t

Lithium carbonate 99% (China) US$8,601/t vs US$8,768/t

China Spodumene Li2O 6%min CIF US$655/t vs US$685/t

Ferro-Manganese European Mn78% min US$995/t vs US$1,113/t

China Tungsten APT 88.5% FOB US$397/mtu vs US$388/mtu

China Graphite Flake -194 FOB US$425/t vs US$430/t

Europe Vanadium Pentoxide 98% US$5.2/lb vs US$5.2/lb

Europe Ferro-Vanadium 80% US$24.4/kg vs US$24.4/kg

China Ilmenite Concentrate TiO2 US$287/t vs US$287/t

Global Rutile Spot Concentrate 95% TiO2 US$1,465/t vs US$1,513/t

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

Brazil Potash CFR Granular Spot US$365/t vs US$357.5/t

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

China Gallium 99.99% US$395.0/kg vs US$395.0/kg

Battery News

China’s heavy truck sales to be 50% EV by 2028

• CATL founder Robin Zeng expects China’s heavy truck industry to be 50% EV by 2028.
• In 2024, electric trucks accounted for 10% of heavy truck sales, so China could see an astronomical growth in electric trucks if Zeng’s prediction is to be realised.
• Sales are trending in the right direction, with December 2024 seeing 20.9% of heavy-duty truck sales.
• Diesel sales are also down, to 57%, from 70% in 2023.
• CATL are very much a driving force behind the change, with recent developments in charging capability with the launch of its 1MW charger.
• The battery maker has also launched its new 75# standardised battery module which will be compatible with 95% of electric trucks.
• CATL is planning to establish a battery-swapping network, with 300 swap stations planned for 2025, and one station able to handle 700,000kWh of battery swaps per day.

EV battery developments, April 2025 (Rho Motion)

• Passenger and light-duty EV sales globally were up 42% mom, with Europe seeing the biggest growth at 50%.
• LFP cathode chemistry share reached 50% globally – many automakers are reverting to LFP battery chemistry for its comparable affordability.
• April saw plenty of development in the EV and battery industries:

• • Sion Power commenced work on its automated production line for its Licerion lithium-metal cells, expected to be completed by 2028 – the technology claims to offer double the energy of traditional li-ion cells and reduce costs of 200kWh packs by 35%.
  • CATL launched three new batteries:

• • • Shenxing battery – super-fast charging battery with 800km and charging 520km in 5 minutes (12C rate)
    • Freevoy Dual-Power battery – dual energy system with self forming anode technology enabling up to 1500km range and 180kWh capacity, for use in EVs, trucks and aircraft.
    • Naxtra sodium-ion battery – works in extreme conditions (-40°C to +70°C), 175Wh/kg energy density, 500km range and 10,000+ charge cycles.

BYD launches 10^th model in Europe as it puts pressure on European automakers

• The Dolphin Surf is BYD’s 10^th model available in Europe.
• The car will retail from €22,950 (for 322km range), to €24,990 (for 507km range).
• BYD has said the three specifications will be discounted to €19,990+ until the end of June.
• The launch of another affordable EV puts the pressure on European automakers to offer more affordable EVs.
• There are only a handful of models on the market on sale in Europe for under €20,000, although 11 new affordable models, under €25,000, are expected to go on sale this year.

Company News

Anglo Asian Mining* (AAZ LN) 131p, Mkt Cap £149m – FY24 loss reflects weak output with a major rerating due in FY25/26 as operations and earnings recover

BUY

• Revenues US$40m (Fy23: $46m) as higher gold/copper prices partly compensated for weaker production.
• Production was 16.8koz GE (FY23: 31.8koz) affected by a temporary suspension of both agitation leaching and flotation circuits that restarted in 4Q24.
• Bullion sales (post PSA) totalled 15.3koz at an average realised price of $2,432/oz (FY23: 15.8koz at $1,951/oz).
• Concentrate sales (post PSA) generated $3m in sales from 1.5kt of copper/precious metals concentrate (FY23: $15m and 11.2kt).
• The Company is currently 100% exposed to gold/copper prices having delivered last 1.6koz into the 4.6koz hedging programme run in 2023-24; hedged gold sales generate only $30k in losses in 2024 with forward price close to market spot prices at the time.
• No AISC reported during the period with most of operations suspended through nine months of 2024 and, thus, not reflective of normal course of operations.
• Revenues (post 12.75% PSA) were $40m (FY23: $46m).
• EBITDA amounted to -$5m (FY23: -$1m).
• EBIT at -$19m (FY23: -$25m).
• PAT and EPS at -$18m and -15USc (FY23: -$24m and -21USc)
• FCF at -$2m (FY23: -$24m).
• Capex included PPE related spend of $9m (mostly Gilar mine development and Gedabek first phase tailings dam wall raise) and exploration related costs of $2m ($0.7m at Gedabek, $0.5m at Ordubad and $0.4m at Garadag), down on previous year (FY23: $18m and $6m, respectively) as the team aimed to reduce cash spend with most operations suspended.
• Net Debt climbed to $17m (FY23: $13m) including $7m in cash (incl $6m in restricted cash used as a security for a loan) and $24m in outstanding debt (incl leases).
• As of Mar/25, net debt stood at $14m ex leases (FY24: $15m ex leases).
• Debt includes $7.8m with International Bank of Azerbaijan repayable between May/25 and May/26, $5.0m payable in May/26, $5m owed to Trafigura under the $5-10m 3m revolving facility and $2.8m owed under Caterpillar vendor financing.
• The Company is in discussions for a further $7m loan to fund Demirli refurbishment and a $25m revolving prepayment facility with Trafigura (SOFR+4pp) for its copper from Demirli.
• On dividends, the Company is not paying a final dividend given negative FCF recorded in FY24 with the Board intending to resume dividend payments “once conditions allow”.
• Operationally, agitation leaching and flotation circuits resumed operations in 4Q24.
• The first phase of the Gedabek tailings dam wall raise (2.5m) was completed November 2024.
• The second phase that would take the dam to its maximum height is on schedule to be completed in 2H25.
• The Company launched production at the Gilar Gold/Copper underground mine in May helping the production profile at Gedabek as the team is looking to grow Group copper production by resuming operations at the Demirli brownfield mine and developing Xarxar and Garadag greenfield projects.
• At Demirli, the Company secured access to the site with preparatory to restart operations ongoing and first output targeted for 2H25.
• At Xarxar, maiden MRE released February 2024 estimating 25mt at 0.48% Cu in total resource (~90% in the M&I category).
• At Garadag, maiden MRE released September 2024 estimating 285mt at 0.31% Cu in total resource (30% in the M&I category).
• The Company plans to launch production at both projects by 2028.
• FY25 guidance is reiterated at 28.0-33.0koz gold and 6.5-6.8kt copper (ex Demirli).
• The team is planning to release an updated FY25 guidance later in the year once operations at Demirli restart.

Conclusion: FY24 results reflect weak production with agitation leaching and flotation circuits restarting in 4Q24. Earnings came below our estimates (FY24e FCF $EBITDA $4m, PAT -$2m) but largely in line on FCF basis (FY24e $2m) as higher costs and non cash charges were compensated by changes in working capital. The team has done well in managing cash during the period of mostly suspended production reducing capex to a minimum required to progress with Gilar development and restart of Gedabek operations. Net debt levels at $17m, up ~$4m on a year, are seen low and well managed in the light of guided $45-55m EBITDA for FY25 (at $2,800/oz and $9,000/t). With challenging period of 2023-24 behind, we believe the Company is well positioned to benefit from high commodity prices and growth in production profile with start of operations just announced at another greenfield discovery (Gilar) and preparatory works to restart flotation copper plant progressing at Demirli (Co targets 2H25 commissioning). We reiterate our BUY recommendation and will release updated earnings estimates shortly.

*SP Angel acts as Nomad and Broker for Anglo Asian Mining

Atlantic Lithium* (ALL LN) 6.92p, Mkt Cap £47.6m – Discovery of lithium-bearing spodumene in Ivory Coast at Rubino and Agboville

1. Atlantic Lithium report the discovery of up to 1.25% Li2O% in rock chip sampling from their Agboville and Rubino licences in the Ivory Coast.
2. Rock chip and float samples were taken from surface outcrop
3. Soil sampling at Rubino show lithium anomalies over 2.5km x 2.0km with potential for more to the northeast.
4. The licences are in a similar geological setting to Atlantic’s lithium project at Ewoyaa in Ghana.

Conclusion:  While the identification of relatively high-grade lithium in rock chips is positive these are still early days for the evaluation of the Rubino and Agboville licenses.

We look forward to further surface results to better enable drill targeting. From this we would hope to see some early definition of the potential scale and mineability of the pegmatites under investigation.

*SP Angel acts as Nomad and Broker to Atlantic Lithium

EQ Resources (EQR AU) A$0.039/s, Mkt cap A$92m – A$18.8m fund-raising

• EQ Resources, the operator of the Barruecopardo tungsten mine in Spain and the Mt. Carbine tungsten mine in Queensland reports that it has raised A$18.8m via the placing of 537.3m new shares at a price of 3.5A¢ / share.
• “Proceeds from the Placement and SPP will be used to fund capital projects primarily related to plant expansion, and optimisation works at both the Mt Carbine mine in Australia and the Barruecopardo mine in Spain, reducing debt financing and to provide working capital”.
• The company confirms that its “largest shareholder… Oaktree Capital Management … will participate, having committed to contributing $8.735M, subject to obtaining approval from the Foreign Investment Review Board and shareholder approval at an Extraordinary General Meeting”.
• In addition, a “loan provider has also agreed to convert the outstanding loan amount and interest into equity at the Placement raising price. A total of 34.3 million shares will be issued to extinguish the $1.2M outstanding amount”.
• Approximately 288m of the new shares “will be issued utilising EQR’s current placement capacity”

Ironveld (IRON LN) – 0.053p, Mkt cap £6.7m – Commissioning of DMS plant and offtake news

• Ironveld reports the commissioning of its DMS ‘Dense Media Separation plant in Limpopo Province, South Africa,
• The DMS is the first stage process for Ironveld’s HPI ‘High Purity Iron’, Vanadium, and Titanium project
• Commercial production of DMS grade magnetite is ramping-up from stockpiled material to supply into the offtake agreement with Sable Platinum Pty Ltd at required specifications.
• Other offtake agreements for DMS grade magnetite product are also advanced with potential to sell significant quantities into Mozambique and South Africa.
• Mining:

• • Overburden clearance of the first mining bench completed.
  • Drilling plan developed with first blast scheduled imminently by contractor.

• Smelting

• • Engineering study for a small-scale, water-based atomiser plant to produce high-purity iron powder completed.
  • “A comprehensive design data pack including engineering drawings, proposed procurement strategies, and a list of recommended suppliers for the pilot water-atomised high-purity iron powder plant is currently being reviewed by Ironveld’s team and its consultants.”
• “Demand for our material has exceeded expectations” according to the CEO, Kris Andersson
• Potential to sell DSO ore adds to potential future sales into international demand for vanadium, titanium, and iron.

KEFI Gold and Copper* (KEFI LN) 0.62p, Mkt Cap £55m – £7.6m equity raise

• The Company is issuing £7.6m at 0.55p in new equity to progress flagship Tulu Kapi Gold Project in Ethiopia.
• Proceeds to be used to cover project funding related legal and commitment fees, costs for securing fixed price components and scheduling as well as general working capital.
• The raise brings in £7.0m in gross cash proceeds with £0.6m covering labilities from three service providers that decided to take shares in lieu of payment.
• The placing price reflects a 5% discount to the closing price on Tuesday.
• The Company reports that a major new institutional shareholder participated in the placing.

Conclusion: The raise provides the Company required working capital to complete project funding with detailed definitive agreements planned to be finalised 2Q25.

*SP Angel act as Nomad and Broker to KEFI Gold and Copper

Metals One (MET1 LN) 0.42p, Mkt Cap £37m – Exploration underway on US uranium projects

• Metals One reports that it has started exploration for uranium in the Uravan belt of Colorado and that work will start at the Squaw Creek project in Wyoming when permits are finalised..
• Work in Colorado initially includes assessment of historical information and mapping and sampling of historically mined areas and a “detailed ground-based geophysical survey utilising a Radiation Solutions RS-125 spectral scintillometer for radiation measurement”.
• At Squaw Creek, “Historical gamma ray well logs report significant uranium readings of 1,500 CPS at a depth of 330 feet”.
• Chairman, Craig Moulton, described the initial work as “an important milestone as we advance these strategically significant uranium and vanadium projects in the United States”.

Conclusion: MetalsOne has now started exploration of the recently acquired US uranium projects.  We await further news.

NGEX Minerals (NGEX CN) C$14.2, C$2.9bn – Drilling intercepts new Copper-Gold porphyry at Lunahuasi

• Lundin-backed NGEX, reports drilling results from their Lunahuasi project in Argentina.
• DPDH027:

• • Entered a porphyry copper-gold deposit at 1,262m, with highlights including:

• • • 1,619.40m at 0.87% copper equivalent (“CuEq”) from 385.60m
    • This included 876m at 1.13% CuEq from 386m (inc. 205m at 2% CuEq from 590m) and 743m at 0.56% CuEq from 1,262m in porphyry-style mineralisation, with high-sulphidation zones including 18m at 2.68% CuEq from 1,343m and 18m at 1.23% CuEq from 1,495m
    • Hole ended in mineralisation at a depth of 2,005m

• DPDH029

• • Southernmost hole to date, intersected the porphyry system at 1,100m
  • 823.10m at 1.17% CuEq from 776.90m, including: 157.70m at 2.18% CuEq from 776.90m, 38.90m at 4.35% CuEq from 870.70m, 153.50m at 1.98% CuEq from 1,207.50m, including: • 9.00m at 7.33% CuEq from 1,352.00m

• Management notes that hole 27 ‘opens up an entirely new dimension of the Lunahuasi project,’ with the ‘possible presence of a large copper-gold porphyry system associated with the high-grade vein-hosted HS mineralisation
• Company will continue to target the high-grade vein system with drilling but state the ‘presence of a porphyry system significantly increases the long-term value of the project.’
• Drilling suggests the porphyry lies to the west of the end of hole 29, 500m south of hole 27.

New Frontier Minerals (NFM LN) 0.68p, Mkt Cap £9.8m – Collaboration on processing may offer a route to copper production in Queensland

• New Frontier Minerals reports that it has inspected Austral Resources’ Mt Kelly copper processing plant in Queensland which may be suitable for treating mineralisation from its NWQ production including the ‘Big One’ deposit.
• In January, the company announced plans to collaborate with Austral Resources on exploration and at that time the Mt Kelly plant was cited as a possible site to process ore from “the Big One Deposit (MRE: 2.1Mt @ 1.1% Cu), potentially expanding this to other satellite prospects within the NWQ Copper Project”.
• Today’s announcement confirms that bulk samples from stockpiles of historically mined material at the ‘Big One’ deposit have been collected “for copper processing evaluation at Mt Kelly Processing Plant”.
• Chairman, Ged Hall, commented that the collaboration with Austral Resources and the potential use of the Mt Kelly plant “marks a milestone in our growth strategy … [and offers} … a clear path to production for NFM”.

Conclusion: The collaboration with Austral Resources may provide a route to process material from the NWQ project at the Mt Kelly plant.  We await results from the test processing of bulk samples with interest.

Solaris Resources (SLS CN) C$5.8, C$960m – US$200m streaming agreement from Royal Gold to advance Warintza copper project

• Solaris, who is progressing the Warintza Copper Project, Ecuador, have agreed a financing package with Royal Gold.
• The streaming company will pay Solaris US$200m over three instalments:

• • US$100m upon close of transaction
  • US$50m on publication of a PFS
  • US$50m on ‘the first anniversary of the closing date and completion of all filings necessary to fully perfect Royal Gold’s security.’

• Stream:

• • Royal Gold will receive gold deliveries equivalent to 20oz Au for every 1mlb Cu
  • Royal gold will pay purchase 20% of the spot price to 90koz then 60% of the spot price.

• Royalty

• • Royal Gold to receive a 0.3% NSR on all metal produced from the specified zone, increasing by 0.0375% to max 0.6% until the first delivery of gold or eight years following transaction close.
• Funding will provide Solaris with liquidity through to FID, with a PFS due 3Q25, followed by a BFS. Updated MRE due 3Q25.
• Company also expects to submit exploitation permits by mid-year 2026 followed by a mid-2025 EIA submission.
• Funds will also support the repayment of the US$60m senior debt facility from Orion.

Strategic Minerals* (SML LN) 0.28p, Mkt Cap £6.6m – Drilling planned in Cornwall for late June

• Strategic Minerals reports that it plans to start a new drilling campaign at its east Cornwall properties in late June.
• The new campaign, which will be focussed on the Redmoor project, is expected to take around six months and comprise an additional 9 holes totalling ~5.300m intended to contribute to an updated mineral resource estimate (MRE) expected in Q1 2026.
• The existing ‘Inferred’ mineral resource is 11.7mt at an average grade of 0.56% tungsten trioxide, 0.16% tin and 0.50% copper is based on 12 holes totalling 7,370m completed in 2017/2018.
• The previous drilling is being reviewed with additional assaying of previously unsampled intervals and the company confirms that it expects this work to be completed in 2025 allowing this additional data to be included with the results of the new holes in the new MRE.
• Today’s announcement also confirms that an additional 328 soil samples have been taken “from within CRL’s Duchy of Cornwall licensed mineral rights area, in fields adjacent to CRL’s Redmoor Minerals licence, with the aim of identifying potential extensions of soil anomalies and mineralisation”.
• Project Manger for Strategic Minerals’ operating company, Cornwall Resources, Dennis Rowland, confirmed that the updated MRE will contribute to “an updated 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 ~US$33,000/t for tin, US$9,600/t for copper and the current benchmark APT (ammonium paratungstate) price for tungsten is around US$390/mtu.
• The announcement also confirms that “CRL has obtained Planning Permission and landowner consent for its drilling activities” and that it is liaising with local communities likely to be affected by the work.

Conclusion: The resumption of drilling at Redmoor will provide Strategic Minerals an opportunity to update the MRE and update its 2019 economic assessment to reflect the current commodity price regime.  We look forward to news of progress when the drilling campaign is underway.

*SP Angel acts as Nomad and broker to Strategic Minerals

West African Resources (WAF AU) A$2.6, A$3bn – Deep drilling at Sanbrado to support 500kozpa long-term production target

• West African report drilling results form their resource definition drilling programme at m1 South at the Sanbrado mine in Burkina Faso.
• The Company is currently delivering beneath the current ore reserves at M1S.
• Highlights include: 44m at 25.8 g/t Au . 44.5m at 17.1 g/t Au , 38.5m at 17.4 g/t Au, 21.5m at 24 g/t Au , 32.5m at 9.5 g/t Au , 29m at 9.3 g/t Au
• The Company will use the drill results to upgrade the current inferred resource to support a new ore reserve and 10-year production outlook.
• Management states the results support their ambitions of hitting 500kozpa by 2030.

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

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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

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