SP Angel Morning View -Today’s Market View, Thursday 24th April 2025

Gold rebounds following sharp decline on easing US-China tensions

 MiFID II exempt information – see disclaimer below

Anglo American (AAL LN) – Quarterly production reports highlights progress on simplifying the business

Asiamet Resources (ARS LN) – Electrical power supply study for BKM

Aston Bay Holdings (BAY CN) – Review of historic drillhole extends potential footprint at the Storm project, Nunavut

Cobra Resources (COBR LN) – Sonic drilling programme at the Boland rare-earths project in South Australia

East Star Resources (EST LN) – Resumption of geophysical survey in Kazakhstan

First Quantum (FQM CN) – Quarterly results show impact of rainy season and investment into Kansanshi expansion

GreenRoc Strategic Materials Plc (GROC LN) – Results highlight substantial progress over past year

Guardian Metal Resources (GMET LN) – Encouraging early-stage exploration results potentially expand the Garfield project, Nevada

Power Metals Resources* (POW LN) –  (Power Metals* holds a 19.5% stake in Guardian Metal Resources)

Liontown Resources(LTR AU) – Quarterly results show preparation for underground spodumene mining

Newmont Mining (NEM US) – Q1 results as Nevada Gold Mine costs continue to rise

Resolute Mining* (RSG LN) – Quarterly production performance leaves 2025 guidance intact and highlights exploration success in Senegal

Strategic Minerals* (SML LN) – Potential sale of the Leigh Creek copper project

Gold ($3,332/oz) rebounds following sharp decline on easing US-China tensions

• Gold has recovered much of its recent sell-off, after Trump implied that he is looking to relax tariffs against China.
• This has coincided with increasing talk of a cease-fire on the Russia-Ukraine border, although no formal agreement has been made.
• The combination of cooling tensions between Washington and Beijing and Kiev and Moscow has reduced safe-haven appetite, with gold hit by profit taking.
• Shanghai gold futures saw their sharpest drop since 2013 yesterday, with trading volumes jumping to record highs.
• Treasury Secretary Bessent noted yesterday that there was still a long way to go before a resolution could be reached with China.
• Meanwhile, Poland has further boosted its Central Bank holdings, with gold now account for >20% of their foreign exchange reserves. (Reuters)

Tungsten – Tungsten prices rise as China cutback in quotas indicates potential squeeze in export tonnages

• Prices are rising on lower quotas for tungsten mines in China.
• Also, more long-term contracts within China are squeezing export tonnages.
• Mining quotas are 4,000t lower at 58,000t for 65% tungsten trioxide according to the Ministry of Natural Resources.
• Five tungsten producers are said to have cut output in March (Asianmetal.com)
• Six APT producers stopped operations in China with 28,700t of capacity idled in total
• Tungsten prices (Asianmetal.com):
  • Ore WO3 50% min FOB Africa US$268-273/mtu
  • APT WO3 88.5% min FOB China US$355-360/mtu
  • APT WO3 88.5% min in warehouse Rotterdam US$360-370/mtu

Conclusion: The situation with tungsten is of substantial concern with Chinese miners cutting back and a potential increase in demand for munitions from the US and Europe.

Economics

US – Private business activity slowed to a 16-month low as confidence slumps.

• A marked drop in export orders reported amid trade policy tensions.
• Final goods prices inflation is reported climbed at the fastest rate in over a year.
• Respondents highlighted inflationary effect of tariffs on manufacturers.
• “These higher prices will inevitably feed through to higher consumer inflation, potentially limiting the scope for the Federal Reserve to reduce interest rates at a time when a slowing economy looks in need of a boost,” S&P Global PMI report read.
• S&P Global flash composite PMI fell to 51.2 in April vs from 53.5 in March, a 16-month low.

• Manufacturing PMI rose to 50.7 in April vs 50.2
• Services PMI collapsed back to 51.4 in April vs from 54.4.

Trump considering a potential reduction to auto tariffs as carmakers highlight that latest trade barriers may cost the industry profits and jobs.

• The administration may exempt auto parts bought from China from a 20% tariff applied to the country, FT reported.
• Components that comply with the USMCA trade agreement may also be exempted.

Treasury Secretary Scott Bessent added to uncertainty over a potential resolution to the US-China trade war saying that Trump has not yet offered to take US tariffs on China down on a unilateral basis. (Bloomberg)

• Bessent said that the government is looking at multiple factors regarding China beyond tariffs including non tariff barriers and government subsidies.
• A full rebalancing of trade may take two to three years, he added.

ECB – Lagarde reckons US tariffs may be more disinflationary than inflationary for Europe. We agree.

• The ECB may have to cut interest rates further on tariff uncertainty and disruption according to another governing council member.

European car sales recover on robust demand for EVs int eh UK.

• New-car registrations rose 2.8% in March to 1.42m (European Automobile Manufacturers’ Association).
• UK sales rose 12% followed by strong demand in Italy and Spain.
• EV sales jumped 24% due to sales promotions though the EU has now decided to give automakers more time to meet new CO2 emissions targets.
• PEVs made up 17% of total sales

Germany – Business sentiment remained weak amid growing trade policy uncertainty, although, headline numbers came in better than expected.

• “Uncertainty among the companies has increased… the Germany economy is preparing for turbulence,” the IFO report said.
• The IMF in its lates economic growth estimates forecast cut its GDP estimates for Germany to just 0.3% in 2025 implying stagnation with the economy struggling to grow for the third consecutive year.
• IFO Business Climate (Apr/Mar/Est): 86.9/86.7/85.2
• IFO Current Assessment (Apr/Mar/Est): 86.4/85.7/85.4
• IFO Expectations (Apr/Mar/Est): 87.4/87.7/85.0

UK – Labour looking to charge households in the south more for electricity

• Ed Miliband is reported to be poised to approve higher charges for electricity for people who live in the south of England (The Telegraph).
• The separate zoning of power charges for different regions will upset allot of people.
• Supporters suggest the change will reduce the need for grid upgrades, but we assume that is at the expense of freezing pensioners in the South of England.

Ukraine/Russia – US administration puts pressure on President Zelensky to move forward with the peace deal.

• President Trump critiqued Zelensky for refusing to recognise Russia’s occupation of Crimea.
• “We are very close to a Deal, but the man with “no cards to play” should now, finally, GET IT DONE,” Trump wrote in his True Social post.
• “I will say that I think Russia is ready . . . I think we have a deal with Russia… I thought it might be easier to deal with Zelenskyy… So far, it’s been harder,” Trump commented on progress of negotiations later.

Currencies

US$1.1373/eur vs 1.1399/eur previous. Yen 142.68/$ vs 141.76/$ previous. SAr 18.613/$ vs 18.576/$ previous. $1.329/gbp vs $1.332/gbp previous. 0.638/aud vs 0.641/aud previous. CNY 7.297/$ vs 7.296/$ previous

Dollar Index 99.45 vs 99.068 previous

Precious metals:         

Gold US$3,335/oz vs US$3,314/oz previous.

Gold ETFs 89.5moz vs 89.4moz previous.

Platinum US$978/oz vs US$967/oz previous.

Palladium US$942/oz vs US$941/oz previous.

Silver US$33.4/oz vs US$32.9/oz previous.

Rhodium US$5,400/oz vs US$5,375/oz previous.

Base metals:

Copper US$9,384/t vs US$9,420/t previous.

Aluminium US$2,443/t vs US$2,411/t previous.

Nickel US$15,672/t vs US$15,815/t previous.

Zinc US$2,654/t vs US$2,625/t previous.

Lead US$1,940/t vs US$1,927/t previous.

Tin US$31,189/t vs US$31,210/t previous.

Energy:

Oil US$66.7/bbl vs US$68.5/bbl previous.

• Crude oil prices slumped after media reports that OPEC+ plans to accelerate output hikes to punish members like Kazakhstan not abiding by their respective quotas.
• The EIA estimated a US inventory w/w build of 0.2mb to crude, offset by draws of 4.5mb to gasoline and 2.4mb to diesel stocks, with refinery utilisation up 1.8% w/w to 88.1% and domestic production at 13.5mb/d.
• European energy prices edged lower as EU natural gas storage levels rose 1.5% w/w to 37.5% full (vs 47.9% 5-Yr average) with aggregate inventory at 424TWh and a proposed EU vote today on storage targets.

Natural Gas €34.1/MWh vs €34.9/MWh previous.

Uranium Futures $65.2/lb vs $65.5/lb previous.

Bulk:   

Iron Ore 62% Fe Spot (China CFR) US$100.2/t vs US$99.8/t

Chinese steel rebar 25mm US$463.4/t vs US$444.1/t

HCC FOB Australia US$185.5/t vs US$180.0/t

Thermal coal swap Australia FOB US$94.0/t vs US$96.8/t

Other:  

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

NdPr Rare Earth Oxide (China) US$56,683/t vs US$56,897/t

Lithium carbonate 99% (China) US$9,258/t vs US$9,300/t

China Spodumene Li2O 6%min CIF US$800/t vs US$800/t

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

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

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

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

Europe Ferro-Vanadium 80% US$24.2/kg vs US$24.2/kg

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

Global Rutile Spot Concentrate 95% TiO2 US$1,513/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$355.0/t vs US$355.0/t

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

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

Company News

Anglo American (AAL LN) 2,093.5p, Mkt Cap £28bn – Quarterly production reports highlights progress on simplifying the business

• Reporting its Q1 production results for the three months to 31^st March 2025, Anglo American reports progress on simplifying its business including plans for the disposal of its platinum metals, steelmaking coal and nickel businesses.
• The company also explains that during the quarter it “finalised a new long-term diamond sales agreement with the Government of Botswana and we continue to pursue a dual track process to divest our interest in De Beers, which we are committed to completing at the right time and when market conditions allow”.
• Chief Executive, Duncan Wanblad, explained that, notwithstanding the uncertainty surrounding the “impact of tariffs on the global economy … [Anglo American’s] … restructuring and cost savings programme remains on track, giving us confidence that we are well on our way to reshaping our business and embedding far greater resilience, both through the cycle and in the current volatile macro environment”.
• Among the core businesses, quarterly copper output of 169kt (Q1 2024 – 198kt) saw increased production from Peru including an 11% rise from Quelllaveco offset by lower Chilean production “reflecting the planned lower ore grade at Collahuasi and planned lower throughput at Los Bronces”.
• Copper production guidance for the year is maintained in the range 690-750kt with cost guidance also confirmed in the range US$1.51/lb including US$1.85/lb at the Chilean operations and US$1.10/lb in Peru.
• Production of 15.4mt of iron ore was in line with the 15.1mt produced in Q1 2024 comprising ~9mt from Kumba in S Africa reflecting “a flexible production approach to managing Sishen and Kolomela as one integrated complex” and ~6.5mt from the South American operations of Minas Rio with record Q1 output delivering a 10% rise.
• Full year production guidance remains at 57-61mt with unit cost guidance intact at US$36/t.
• Manganese output declined by 60% to 317kt (Q1 2024 – 784kt) “primarily due to the ongoing temporary suspension of the Australian operations following the damage caused by tropical cyclone Megan in March 2024 … [although] … Export sales are expected to resume in the June 2025 quarter”.
• Production of PGMs declined by 17% to 696,000oz (Q1 – 2024 834,000oz) with production “affected by heavy rains and widespread flooding, primarily at Amandelbult”.
• PGM production guidance is maintained in the range in the range 3-3.4moz with cost guidance intact at ~US$970/PGM oz.
• “Rough diamond production decreased by 11% to 6.1 million carats, reflecting the continued production response to the prolonged period of lower demand”.
• Full year diamond production guidance remains intact in the range 20-23m carats and cost guidance is also unchanged at ~US$94/carat.
• “Steelmaking coal production decreased by 41% to 2.2 million tonnes, primarily impacted by the suspension of mining at the Grosvenor longwall operation following the underground fire in June 2024 and the sale of our minority interest in Jellinbah which completed in January 2025”.
• Anglo American confirms its previous announcements that it “has entered into definitive agreements to sell the remaining portfolio of Steelmaking Coal assets in Australia to Peabody Energy, subject to relevant approvals, with the transaction expected to complete by Q3 2025”.
• Nickel output was 3% higher at 9,800t (Q1 2024 – 9,500t) “reflecting operational stability at Barro Alto, despite lower grades” with 2025 production guidance maintained at 37-39,000t and costs unchanged at ~US$5.05/lb.

Conclusion: Anglo American highlights progress on the streamlining of its portfolio while maintaining 2025 cost and production guidance across all its major commodity sectors.

Asiamet Resources (ARS LN) – 0.9p, mkt cap £28m – Electrical power supply study for BKM

• Asiamet reports the completion of its electrical power supply study for the optimised feasibility study for its BKM copper project in Kalimantan.
• The power supply study is “the last major technical input required for the Optimised Feasibility Study (“OFS”), which is now undergoing internal review ahead of publication”.
• Optimisation of BKM aims to deliver “a lower-capex project focused on near-surface, higher soluble copper material. The Project targets annual copper cathode production of circa 10,000 tonnes” in the first stage of development with “substantial upside potential from the broader KSK Contract of Work as part of Asiamet’s staged development strategy”.
• Describing the stage 1 development at BKM as “a de-risked, construction-ready project targeting approximately 10ktpa of copper cathode … [CEO, Darryn McClelland said] … it reflects the benefit of early lender engagement ensuring that our study aligns with the expectations of our financing partners and positioning us to move quickly into financing”.
• He explained that completion of the power supply study clears the way to shift “our immediate focus … to publication of the Optimised Feasibility Study and the transition to project financing”.
• Mr. McClelland also confirmed that Asiamet “continues to receive inbound interest from groups looking to engage once the final OFS is published”.

Conclusion: We look forward to the optimised feasibility for insight into Asiamet’s development plan.

Aston Bay Holdings (BAY CN) C$0.05, Mkt cap C$13m – Review of historic drillhole extends potential footprint at the Storm project, Nunavut

• Yesterday, the Canadian explorer, Aston Bay, reported that a 2018 drillhole (AB18-04) located around 5km west of the Storm resource area intersected “more than 58m in total of intermittent visual copper sulfides, but has yet to be sampled and assayed”.
• The company says, however, that the intersection includes “two intervals with up to 2.5% of sulfide mineralization … typical of Storm-style mineralization locally and sediment hosted copper deposits in general”.
• The intermittent nature of the mineralisation in the 2018 hole, in an area now designated ‘Midway’ may explain why it was not assayed originally but Aston Bay now explains that it is located in a 20km long portion of the “110km-long copper-mineralized belt … along the Storm Graben Faults, known conduits for copper-mineralizing fluids and confirmed settings for high-grade copper mineralization” including the Storm and Tornado prospects.
• Earlier this month, the company released an initial Mineral Resource Estimate for the Storm Copper Project including:

• • An ‘Indicated’ 8.2mt resource at an average grade of 1.47% copper and 4.5g/t Ag; and
  • An ‘Inferred’ resource of 3.4mt at an average grade of 1.30% copper and 3.1g/t Ag, for 43kt and 333.6koz Ag

• The company also explains that “Reinterpretation of historical electromagnetic (EM) and induced polarization (IP) surveys, including the airborne GeoTEM survey completed by Noranda in 2000, has identified numerous large-scale targets for potential copper mineralization”.
• The new analysis of the geophysical data highlights anomalous areas of the central graben “are interpreted to be at a deeper stratigraphic level (~100-300m depth) than the known copper deposits and located in an area of no drilling … [and including] … the Corona and Cirrus Deposits, as well as the Thunder, Lightning Ridge, and The Gap Prospects”.
• Outlining its exploration plans for 2025, the company says that it will focus on drilling “along the highly prospective Midway-Storm-Tornado corridor … [which] … is controlled by the large-scale and laterally extensive Storm Graben … [where there] … is strong geological and geophysical support for the prospectivity of this area and for potential expansion of the known copper mineralization”.
• Exploration plans also include a “regional-scale Mobile Magneto-Telluric … survey … to cover the Storm and regional exploration areas during the 2025 program”.  Aston Bay explains that it plans to start the survey in “the Midway-Storm-Tornado area as an orientation survey to determine the response of the known deposits before extending the survey into more regional areas”.
• The new survey “is potentially very useful for deeper(>200m) occurrences of copper sulfide at Storm where the resistive host rocks result in a decreased signal-to-noise ratio (and decreased confidence in interpretation) with depth in the historical geophysics”.

Conclusion: Aston Bay and it partner, American West Metals (20:80), have an ambitious 2025 exploration programme for the Storm project area on Somerset Island.  Re-examination of historic drilling and geophysical information offers the potential to expand the mineralisation within the Storm graben beyond the recently announced mineral resource.  We await news as the 2025 field work progresses.

Cobra Resources (COBR LN) 1.15p, Mkt cap £9.7m – Sonic drilling programme at the Boland rare-earths project in South Australia

• Cobra Resources has started a 10-hole, 500m programme of sonic drilling at its Boland rare-earths in South Australia.
• The 8-10 day programme aims to recover “40-80kg of sample material … [which] … will be used from recovered core to facilitate optimisation metallurgical studies”.
• Managing Director, Rupert Verco, said that the drilling “is an important process in project advancement, contributing to resource definition, ISR infield testing and optimised metallurgical studies. This drilling will inform our funded and ongoing resource-focused drilling programme”.
• Results are expected within 4-6 weeks.
• The company has previously said that of drilling will “support a forthcoming … [initial] … Mineral Resource Estimate” and we assume that this work will also contribute to delivering the estimate.

East Star Resources (EST LN) 1.35p, Mkt Cap £5.2m – Resumption of geophysical survey in Kazakhstan

• East Star Resources, reports that it has restarted an induced polarisation (IP) survey in the Rudny Altai belt of Kazakhstan.
• The survey will focus on the “Rulikha and Talovskoye anomalies and is designed to delineate these high impact 2025 drill targets”.
• These two targets host volcanogenic massive sulphide (VMS) mineralisation “in a similar geological setting to, and around 33 km from, East Star’s Verkhuba Copper Deposit” which hosts an ‘Inferred’ resource of 20.3mt at an average grade of 1.16% copper, 1.54% zinc and 0.27% lead.
• CEO, Alex Walker explained that the “IP survey we have restarted this week is the last stage in finalising the targets for drilling this season”.

Conclusion: Resumption of geophysical work in the Rudny Altai belt of Kazakhstan aims to identify drilling targets for 2025.

First Quantum (FQM CN) C$18.2, Mkt Cap C$15.2bn – Quarterly results show impact of rainy season and investment into Kansanshi expansion

• Copper miner First Quantum reports 99.7kt copper production over the quarter, with Kansanshi producing 46.5kt and Sentinel 46.4kt.
• Lower production, down 11%qoq, on rain impacts.
• Gold production reported at 40.2koz, with Kansanshi producing 30koz and Guelb Moghrein producing 9.8koz.
• Nickel production at 4.65kt.
• Copper AISC reported at $2.9/lb, with AISC exc.Cobre Panama reported at $2.82/lb.
• Company received $1,190m in revenue, with gross profit of $331m and EBITDA at $377m.
• Net debt increased qoq to $5.8bn from $5.5bn on CAPEX at the Kansanshi S3 expansion project.
• Company notes they have boosted their liquidity position with an additional $750m notes offering and another $500m prepayment agreement with Jiangxi.
• Company is awaiting official communication over the next steps at Cobre Panama after the President agreed to the export of copper concentrate stockpiled at Punta Rincon.

GreenRoc Strategic Materials Plc (GROC LN) 2.47p, Mkt Cap £6.4m – Results highlight substantial progress over past year

• GreenRoc full-year accounts highlight the solid performance of graphite from the Amitsoq mine in battery cell testing.
• In January “GreenRoc representatives visited several of China’s leading manufacturers of spheronisation equipment and graphite processing plants.”
• In April, management received approval on the application for the enlargement of its mineral exploration licence to incorporate ground within the Nanortalik Graphite District known to host high-grade graphite mineralisation.
• LOI: the company received a Letter of Interest from US EXIM Bank for the financing of up to US$3.5m of US export contracts.
• PFS reported for the Active Anode Material plant to the mine creates a NPV@8% of US$942m pre-tax, IRR 35.4% on total gross revenue of US$6.5bn over a 22-year period, with a four-year payback period
• Placings: £238k at 1.8p/s in May ’24, £100,000 at 1.9p/s in June ’24, £735,000 in February 2025 at 1.3p/s inc. a 1 for 2 warrant exercisable at 2p/s including £500,000 from a new institution.
• Strategic Project designation under the EU’s Critical Raw Materials Act has been applied for and announcement of successful applicants is expected shortly.
• Exploitation Licence for the Amitsoq graphite mine applied for with the Statutory public consultation starting in H2 2025.
• International Mineral Security Partnership has given Project status to the Amitsoq graphite mine in collaboration with the US, UK, South Korea and Japan and the EU.
• MoU with Morrow Batteries ASA with respect to Active Anode Material to Morrow’s lithium-ion gigafactory, once fully operational.
  • Morrow Batteries is gearing up to be the first European GWh manufacturer of prismatic LFP batteries with test production starting in September 2024 and aiming for first commercial production in 2025.
  • Delays in obtaining work permits for technical experts from Asian equipment suppliers has delayed work at Morrow’s Arendal factory by four months.
• ESG: Digbee, initial ESG BB rating gives the company a degree of ESG credibility.
• ProGraphite to conduct a series of extended tests to optimise purification techniques for Amitsoq graphite.
• P&L FY 2024
  • Admin: £830k vs 903k yoy
  • Op loss: £830k vs 1.7m yoy.
  • Post tax loss £658k vs £1.7m.
• Amitsoq PFS (11 July 2024):
  • NPV of US$621m – post tax
  • IRR 26.5%
  • Capex $340m
  • Opex $1,872/t
  • Production 80,000tpa of concentrate – remains the same
  • Production 39,700tpa active anode material – remains the same
  • Includes: onsite production of de-ionised water and construction of a plant for the production of nitrogen.
• Potential to cut OP costs to US$1,662 using sodium hydroxide (NaOH) instead of hydrofluoric acid (HF) could increase Capex cutting post-tax NPV8 to US$601m with an IRR of 23.7%.
• Graphite purification: Testing to achieve >99.9wt% graphite from alternatives to hydrofluoric acid leaching have been done with positive results.
• Almost any alternative route to the use of hydrofluoric acid should reduce capital and operating costs while improving ESG and reducing risk within the project.
• China graphite export restrictions: starting December 1, 2023 restrictions apply to natural, synthetic graphite and related products.
• Chinese graphite exports collapsed 77.66% for flake graphite and 64.54% yoy from January-February 2024 highlighting the impact of the restrictions following a massive 161.9% yoy rise in November 2023 before the restrictions came in force.
• China controls more than 90% of the world’s spherical graphite and anode active and produces >60% of the world’s flake graphite and ~80% of global synthetic graphite.
• Graphite prices: Spherical graphite prices have slipped recently to US$1,332-1,401/t for 99.95%min 17um max EXW China.
  • Flake graphite vary from a low of ~$277/t for -190 EXW China to ~US$1,100/t for +895% EXW China.

Conclusion:  GreenRoc has made great progress with very little funding over the past year. Trade tensions with China have substantially increased the risk of potential shortages of Active Anode Material (eg graphite precursor material) for Li-ion battery factories. The US and EU are moving to diversify supply chains away from China with the Amitsoq mine well placed in Greenland for supply to the proposed Morrow Batteries plant in Norway.

Guardian Metal Resources (GMET LN) 39.5p, Mkt Cap £51m – Encouraging early-stage exploration results potentially expand the Garfield project, Nevada

Power Metals Resources* (POW LN) 12.5p, Mkt cap £14m – (Power Metals* holds a 19.5% stake in Guardian Metal Resources)

• While confirming its focus on progressing its Nevada tungsten projects at Pilot Mountain and Tempiute, Guardian Metal Resources reports exploration progress from its wholly-owned Garfield project located within Nevada’s Walker Lane mineral belt.
• “Recent surface sampling at Garfield has revealed high-grade gold, silver, base-metals as well as strong antimony values”.

• CEO, Oliver Friesen, said that during a recent site visit the company’s “retained expert geologist Dr. Carter” ‘had identified “a significant epithermal corridor … [at the] … previously underexplored … Freeze and Pamlico zones”.
• He explained that following “the recent completion of staking, this entire trend at these zones is now 100% owned by Guardian Metal and is royalty-free … [and that a] … strike distance of over 4km is now covered by the Pamlico Zone, Freeze Zone, and Freeze East Zones highlighting the potential scale of epithermal mineralisation that exists at Garfield”.
• Guardian Metal Resources “continues discussions in regard to potential joint-venture or option agreement arrangements covering the Project”.

Conclusion: Continuing early-stage exploration results from the Garfield project show encouraging results expanding the zone of interest over a 4km strike length. We look forward to further results as the programme advances and news of potential third-party interest in the project.

*SP Angel acts as Nomad and Broker for Power Metals

Liontown Resources(LTR AU) A$0.56, Mkt Cap A$1.4bn – Quarterly results show preparation for underground spodumene mining

• Spodumene producer Liontown, who operates the Kathleen Valley lithium project in WA, reports quarterly results.
• Liontown report 95.7kt of spodumene concentrate produced over the quarter, at an SC6e operating cost of US$512/t FOB (down 18%)
• Lithia recovery at 64%, up 10%qoq.
• Average Li20 grade shipped at 5.2%, with 253t of tantalite concentrate produced.
• Company reports revenue of A$104m, cash down 10% to A$173m.
• AISC reported at US$678/t SC6e, down 11% from previous quarter.
• Average realised price of US$815/t on an SC6e basis.
• Company now focusing on ‘seeking operational efficiencies’ and is currently preparing for underground production, with stoping production beginning in April.
• Open pit mining reported average ore grade processed at 1% Li20.
• Company reports underground ore trials suggest litha recovery over 70%, supporting expectations of reaching 70% target by 3Q26.

Newmont Mining (NEM US) $53, Mkt Cap $60bn – Q1 results as Nevada Gold Mine costs continue to rise

• Newmont produced 1.54moz over the quarter, vs 1.68moz same period last year.
• Newmont reports an AISC of $1,651/oz vs $1,439/oz same period last year and $1,516/oz FY24.
• Company reports net cash from operating activities of $2bn, and free cash flow of $1.2bn after $826m in CAPEX.
• Gold production fell 19%qoq on reduced contributions from non-core operations following sale of Musselwhite, Eleonore and CC&V, alongside lower production from Nevada Gold Mines and Cerro Negro.
• Company reports attributable gold production from Nevada Gold Mines JV with Barrick down 23% to 216koz, with AISC up 20%qoq to $1,789/oz.
• Adjusted EBITDA down 14% to $2.6bn.
• Barrick reports net debt of $3.2bn, down from $5.3bn in December.
• Company on track to meet 2025 guidance of 5.9moz at AISC of $1,630.oz.
• Production expected to be weighted towards 2H25, with a ramp up from Nevada Gold Mines, Pueblo Viejo and the bringing online of Ahafo North to commercial production.
• Company reports free cash flow in 2Q25 expected to be impacted by higher tax payments, non-core assets divestments, and increased development capital at Ahafo North and Cadia.
• Newmont has repurchased $755m worth of stock in 2025, completing $2bn of the $3bn authorised programme.

Resolute Mining* (RSG LN) 22.4p, Mkt Cap £476m – Quarterly production performance leaves 2025 guidance intact and highlights exploration success in Senegal

• Resolute Mining reports the production of 75,497oz of gold at a cost (on an all-in-sustaining cost basis) of US$1,708/oz in the 3 months to 31st March (76,351oz at US$1,487/oz).
• The company confirms that it remains on track “for group production guidance of 275-300 koz at a Group AISC of $1,650 -1,750/oz”.
• The production includes production of 48,234oz of gold at an AISC of US$1,835/oz from the Syama operations in Mali and 27,263oz at US$1,274/oz from the Senegalese operation at Mako.
• At Syama, “the Syama sulphide conversion project remains on track and on budget for mid-2026 start up … [with]… the earth and civils work … effectively completed and the CCIL tanks and pebble crusher are expected to be completed next Quarter”.
• The announcement confirms the continuation of its exploration campaigns in Senegal, Mali and Cote d’Ivoire incurring US$3.8m expenditure during the quarter.
• Resolute Mining confirms a closing cash balance of US$100m and “Operating cash flow generation of $75.4 million (operating cash flow, before capital expenditure, exploration and working capital)”.
• CEO, Chris Eger, described the quarterly performance as “a strong start to the year … [and commented that Resolute Mining’s] … net cash position has increased by $34 million over the Quarter to end at $100.3 million”.
• Mr. Eger said that “Since the beginning of the year, we have had positive and productive engagement with the Malian Government on implementation of the new Mining Code as well as discussing opportunities for future cooperation. We remain fully focused on creating value at Syama and working collaboratively with the Malian Government in order to create long-term value for all stakeholders”.
• He also described exploration success at the Bantaco prospect in Senegal located around 20km east of the Mako mine “adjacent to Tomboronkoto”.
• He said that, after starting drilling at Bantaco in early 2024, the prospect now “looks to be another potential satellite deposit, that we believe will be able to extend the Mako mine, and, unlike at Tomboronkoto, it does not require significant resettlement”.
• “Resolute also continues to focus exploration activities in Côte d’Ivoire as a key growth jurisdiction for the Company with an ongoing drill program at La Debo aimed at expanding the Mineral Resources at a number of prospects there”.

Conclusion: Resolute Mining is maintaining its 2025 production and cost guidance while exploration success in Senegal offers the potential of mine life extension at Mako.

*SP Angel analysts hold shares in Resolute Mining

Strategic Minerals* (SML LN) 0.34p, Mkt Cap £6.6m – Potential sale of the Leigh Creek copper project

• Strategic Minerals reports that it has reached a non-binding agreement for the potential disposal of its Leigh Creek (LCCM) copper project in South Australia.
• The company has secured ‘Heads of Agreement’ with Axis Mining & Minerals under which Axis will make an initial, non-refundable, cash payment of A$100,000 over the next 30 days for an exclusive option to acquire Leigh Creek.
• A further A$1.9m cash payment, within six months from Axis is required to secure the right to “acquire 100% of LCCM”.
• The announcement makes clear that Axis Mining & Minerals “anticipates completing a listing on the Australian Securities Exchange upon which it will issue shares to Strategic Minerals equivalent to 19.9% of the listed vehicle up to a maximum value limit of A$3 million”.
• In addition, on “commencement of commercial production at the Project … [Axis] … will pay an earn-out to Strategic Minerals equivalent to A$4 million … to be paid on a half yearly basis … equivalent of 20% of net free cash flows from the prior period”.
• Executive Director, Mark Burnett, explained that the “sale of Leigh Creek, if completed, would deliver total consideration of up to A$9 million from a non-core asset and mark a further step in concentrating our focus on the accelerated development of the high-grade Redmoor Tungsten-Tin-Copper Project in Cornwall”.

Conclusion: Strategic Minerals’ plans to dispose of Leigh Creek provide an opportunity for the company to focus on the continuing exploration of its Redmoor project in Cornwall. We await further news on Axis’s proposed acquisition.

*SP Angel acts as Nomad and broker to Strategic 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                                                            

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

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

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