SP Angel Morning View -Today’s Market View, Thursday 27th April 2023

Gold prices little changed ahead of US GDP data

MiFID II exempt information – see disclaimer below

Bushveld Minerals* (BMN LN) – First quarter sales boosted by catchup sales of inventory

Cornish Metals* (CUSN LN) – Valuation 48p/s – Moving ahead to start dewatering South Crofty this summer and a construction decision next year

Chaarat Gold (CGH LN) – 25% increase in reserves adds two more years to the life of mine at Kapan

Galantas Gold* (GAL LN) – Shares for debt transaction completed

Greatland Gold (GGP LN) – Progress report on the Havieron project

Kodal Minerals* (KOD LN) – Kodal extends long-stop date to 31 May

Orosur Mining* (OMI LN) – Q3 Results and healthy cash position

Power Metal Resources* (POW LN) – Drill Results from Molopo Farms Complex show presence of nickel sulphides and PGEs

Resolute Mining (RSG LN) – Q4 2022 delivers 6th consecutive quarterly production increase

Wishbone Gold (WSBN LN) –– Analysis of historical data sheds new light on the Cottesloe project

Gold – $2,002/oz –  Gold trades rangebound as traders await fresh US economic data before FOMC meeting

  • Gold prices pushed through $2,000/oz last night but remain in a tight range around the key level.
  • Banking concerns continue to fuel market pessimism, driving investors to gold as FRC tumbles towards collapse as regulators eye borrowing curbs.
  • US 10-year Treasury yields have been climbing since two week lows hit yesterday, but remain 20bp lower than levels reached on the 18th.
  • The dollar has yet to make a defined move in either direction, supporting gold’s recent sideways movement.
  • Traders turn to US economic data due this afternoon, whilst concerns over the US debt ceiling are still brewing, despite the House agreeing to raise the $31.4tn debt ceiling, with Biden and the Senate expected to block the move.

Base metals weaken on sustained China property depression

  • Copper prices weakened again below $8,500/t and iron ore prices remain weak around the $100/t mark.
  • China’s peak construction season, which runs between April and June, is showing consistent signs of disappointment vs analyst expectations.
  • China’s property starts are expected to fall 12.5% in 2023, (HK Real Estate Foresight) whilst some analysts are expecting over 35% declines.
  • Copper demand domestically remains weak, with premiums for refined Cu products remaining near 1-year lows.
  • Copper is also struggling under concerns over global economic prosperity, with the US banking crisis tightening credit availability.

Japanese government to subsidise battery metal mine and smelter projects

  • Japan’s Ministry of Economy, Trade and Industry is looking to subsidise mine development for critical minerals.
  • Lithium, manganese, nickel, cobalt, graphite, and rare earths will be prioritised.
  • Japan is aiming to diversify its supply chains away from reliance on China’s supply.
  • Japan is looking for sevenfold increase in domestic battery production capacity to 150GWh by 2030.
Dow Jones Industrials -0.68% at 33,302
Nikkei 225 +0.15% at 28,458
HK Hang Seng +0.27% at 19,810
Shanghai Composite +0.67% at 3,286


US – Core capital good orders drop more than forecast in March with previous month’s total revised lower reflecting waning business investment sentiment.

  • Core measure that excludes aircraft and military equipment dropped 0.4%mom posting a second consecutive monthly contraction.
  • Headline durable goods orders tracking items meant to last at least three years jumped 3.2%mom last month driven by an increase in orders for commercial aircraft.
  • Q1 GDP data is due this afternoon with estimates for a 1.9%qoq (annualised) reading, down from 2.6% in Q4/22.
  • Durable Goods Orders (%mom): 3.2 v -1.2 (revised from -1.0) February and 0.7 est.
  • Core Capital Goods Orders (%mom): -0.4m v -0.7 (revised from -0.1) February and -0.1 est.

First Republic Bank shares fall 30% on Wednesday extending YTD losses to >95% as doubts over lender’s refinancing built up.

  • The lender secured $30bn in deposits from 11 large banks in late March as a temporary measure to seek a more lasting refinancing or a potential sale.
  • The government was reluctant to step in so far hoping a private sector solution.
  • The lender had $233bn in assets as of Mar/23, the quarter when the bank recorded >$70bn outflow of deposits or ~40% of the total.

China – PBOC signals gradual reduction in stimulus

  • 1-year and 5-year LPR ‘One-year Loan Prime Rates held at 3.65% and 4.3%.

European commercial property dealmaking dropped to an 11-year low in Q1/23 on the back of higher borrowing costs, banking crisis risks and concerns over an economic slowdown, FT cites MSCI figures.

  • Total amount of deals came in at €36.5bn during three months, down 62% from the same period last year.
  • Paris overtook London as the top destination for investment.

Unilever results show us why inflation is so persistent

  • Unliever report today a 10.5% lift in Q1 underlying sales despite a 0.2% fall in sales volumes.
  • The group which owns a number of well-known multi-national brands selling a range of basic and luxury products.
  • Unilever says its price growth has accelerated in response to continued high input cost inflation and improved volume performance.
  • But the group also expects its NMI ‘Net Material Inflation’ to remain unchanged for 2023 at €1.5bn in H1 and significantly lower in H2.
  • “South East Asia grew mid-single digit, while Turkey delivered strong volume growth in a continued hyper-inflationary environment.
  • Developed markets increased by 8.7%, with 8.9% from price and (0.2)% from volume. Volumes held up better in North America than in Europe.”
  • We suspect Unilever, like many other producers, are ramping up product prices some way beyond inflation as volumes recover.
  • It will be interesting to read their half year results where the impact of rising costs will be revealed.


US$1.1046/eur vs 1.1024/eur yesterday. Yen 133.70/$ vs 133.56/$. SAr 18.311/$ vs 18.309/$. $1.247/gbp vs $1.246/gbp. 0.662/aud vs 0.662/aud. CNY 6.918/$ vs 6.919/$.

Dollar Index 101.40 vs 101.60 yesterday.

Commodity News

Precious metals:

Gold US$2,002/oz vs US$1,999/oz yesterday

Gold ETFs 93.6moz vs US$93.4moz yesterday

Platinum US$1,097/oz vs US$1,101/oz yesterday

Palladium US$1,523/oz vs US$1,517/oz yesterday

Silver US$25.07/oz vs US$25.06/oz yesterday

Rhodium US$8,500/oz vs US$8,100/oz yesterday

Base metals:   

Copper US$ 8,519/t vs US$8,610/t yesterday

Aluminium US$ 2,313/t vs US$2,351/t yesterday

Nickel US$ 23,610/t vs US$23,385/t yesterday

Zinc US$ 2,614/t vs US$2,629/t yesterday

Lead US$ 2,112/t vs US$2,108/t yesterday

Tin US$ 25,600/t vs US$25,750/t yesterday


Oil US$78.0/bbl vs US$81.0/bbl yesterday

Natural Gas US$2.308/mmbtu vs US$2.254/mmbtu yesterday

Uranium UXC US$52.00/lb vs US$51.00/lb yesterday


Iron ore 62% Fe spot (cfr Tianjin) US$103.8/t vs US$100.8/t

Chinese steel rebar 25mm US$554.2/t vs US$552.8/t

Thermal coal (1st year forward cif ARA) US$134.0/t vs US$134.0/t

Thermal coal swap Australia FOB US$190.0/t vs US$188.0/t

Coking coal swap Australia FOB US$247.0/t vs US$247.0/t



Cobalt LME 3m US$34,930/t vs US$34,930/t

NdPr Rare Earth Oxide (China) US$64,746/t vs US$66,486/t

Lithium carbonate 99% (China) US$22,762/t vs US$22,331/t

China Spodumene Li2O 5%min CIF US$4,090/t vs US$4,090/t

Ferro-Manganese European Mn78% min US$1,364/t vs US$1,361/t

China Tungsten APT 88.5% FOB US$325/mtu vs US$325/mtu

China Graphite Flake -194 FOB US$775/t vs US$780/t

Europe Vanadium Pentoxide 98% 8.4/lb vs US$8.5/lb

Europe Ferro-Vanadium 80% 33.75/kg vs US$33.95/kg

China Ilmenite Concentrate TiO2 US$340/t vs US$340/t

Spot CO2 Emissions EUA Price US$94.3/t vs  US$94.1/t

Brazil Potash CFR Granular Spot US$405.0/t vs US$405.0/t


Company News

Bushveld Minerals* (BMN LN) 4.08p, Mkt Cap £52m – First quarter sales boosted by catchup sales of inventory

Target under revision

  • Vanadium Q1 production fell 3% to 943mtV from 973mtV a year earlier.
  • C1 Cash costs fell 2.6% to $25.9/kgV from $26.6/kgV yoy
  • Vanadium sold rose 20% to 1,028mtV vs 857mtV as the company caught up on unsold shipments left over from last year.
  • Guidance:
    • Production maintained at 4,200 – 4,500 mtV.
    • C1 cash costs estimate:  $26.1 – 27.0/kgV
      • Vametco C1 cost estimate: $23.6  – 24.0/kgV
      • Vanchem C1 costs estimate: $29.7 – 30.8/kgV
  • Vametco:
    • Production of Nitrovan fell 8.9% yoy to 682mtV
    • C1 cash costs rose 20.1% yoy to ZAR404.7/kgV
    • C1 cash costs rose 3.2% yoy to $22.8/kgV – due to impact of weaker South African rand
    • Ore grades also fell 11.3% yoy and 18.4% mom to 0.71%.
    • Concentrate production fell 16.5% yoy to 83,175t.
    • Concentrate grades remained stable at 1.05% yoy and rose 5% mom
    • Recoveries from the kiln rose 3.3% yoy to 73.7%
  • Ore mined fell 21.1% yoy in Q1 with a substantial increase in waste moved. This will raise in-pit costs.
  • Vametco suffered disruption as a result of 10 days of high rainfall and work to replace the secondary crusher but performed consistently when compared with Q1 2022.
  • The division also suffered a one-week maintenance shutdown to replace the secondary crusher.
  • A further 30-day planned maintenance shutdown has been delayed till the third quarter “due to increased confidence in the Kiln’s current performance levels.”
  • Vanchem:
    • Total vanadium production rose 16.9% yoy to 261mtV
    • Mined ore to the kiln rose 94.3% to 64,848t
    • C1 cash costs rose 3% yoy to ZAR605.5/kgV
    • C1 cash costs fell 11.6% yoy to $34.1/kgV – as the rand fell
    • Ore grades in whole rock rose 3.7% yoy mom to 1.4%.
    • Milled ore grades fell 1.8% yoy to 0.95% yoy
    • Recoveries from the kiln rose 18% yoy to 71.5% – this is impressive
  • Vanchem adjusted its process towards greater production of ferrovanadium and vanadium flake at the cost of a 36% fall in vanadium chemicals.
  • The unit suffered the impact of a two week maintenance shutdown was covered by the sale of inventory from 2022
  • A new local low-silica vanadium feed for secured for Vanchem
  • Production focussed on Ferrovanadium at the expense of vanadium chemicals, though the group reported a significant 118% increases in vanadium flake.
  • BELCO:  (55% Bushveld Energy, and 45% IDC)
  • Belco, the vanadium electrolyte plant completed construction and cold commissioning with target capacity of 8mltrs pa of electrolyte.
  • The unit is in discussions with end users on sales and offtake agreements.
  • Vametco Mini Grid
  • Components for the 1 MW/4 MWh VRFB supplied by CellCube have been delivered to site with construction and commissioning of the 3.5 MW solar PV and 1MW / 4 MWh Mini grid project due for completion within the next few months.
  • Vanadium  prices
  • European ferrovanadium prices pulled back to $39.4/kgV in Q1 from $46.1/kgV yoy based on LMB figures
  • US prices fell to $42.5/kgV from $49.6kgV in Q2 last year according to Ryan’s notes
  • Chinese prices held relatively steady at $37.8/kgV vs $38.0/kgV in Q2 last year according to Asia Metals
  • Bushveld is prioritising ferrovanadium and chemical sales into North America due to higher prices in the region compared with Europe and China.

Conclusion:  Higher production at Vanchem supported by inventory sales should offset much of the fall at Vametco where Bushveld continues to balance ongoing maintenance and disruption from rainfall. Power disruption from ESKOM and the local municipality appears to have been lessened through negotiation.

*SP Angel act as nomad and broker to Bushveld

Cornish Metals* (CUSN LN) – 13.5p, Mkt cap £74m – Moving ahead to start dewatering South Crofty this summer and a construction decision next year

Valuation 48p/s


  • Cornish Metals has reported a loss of C$1.2m during the year to 31st January 2023 (2022 – C$2.9m loss) as it progresses its Cornish projects at South Crofty and United Downs.
  • The company reports a year end cash balance of C$55.5m following the £40.5m investment, including £25m by Vision Blue Resources, in May 2022.
  • Among the highlights of an eventful year, Cornish Metals says that the £6.5-7.0m Water Treatment Plant required to de-water the old South Crofty mine is nearing completion with the mechanical, electrical and instrumentation equipment being installed from April 2023 … [and commissioning] … planned for the summer of 2023”.
  • Drilling at Carn Brea on the southern edge of the South Crofty licence area and ESE of the mine and reported in January encountered a zone of mineralisation known as the ‘Wide Formation’ inferred to lie parallel to, north of, and beneath the more widely recognised ‘Great Flat Lode’.
  • Follow up drilling is required to determine the continuity of mineralization and to define the geometry and extent of the … [Wide Zone] … target, subject to the availability of exploration funding.
  • Additional drilling forming part of the Feasibility Study to collect samples for metallurgical testwork is underway at South Crofty and expected to be completed in the early summer of 2023.
  • The Feasibility Study remains scheduled for completion by the end of 2024.
  • At the United Downs project located approximately 8km east of the South Crofty mine, over 10,000m of exploration drilling was completed during the year to test targets including the UD Lode, United Mines, Mount Wellington and Trenares Lode, with all four targets returning results warranting further follow-up drilling.
  • Commenting on the progress achieved, CEO, Richard Williams, confirmed the strong support from the local community and Cornwall Council and said that a construction decision on South Crofty was expected by the end of 2024.

Conclusion: Cornish Metals has had a busy year as it progresses towards a construction decision on South Crofty in late 2024 and is likely to remain busy as it follows up exploration success at United Downs and to the south of the South Crofty mine.

*SP Angel acts as Nomad and Broker to Cornish Metals. The analyst holds shares in Cornish Metals.

Chaarat Gold (CGH LN) 10p, Mkt Cap £72m – 25% increase in reserves adds two more years to the life of mine at Kapan

  • The Company released an updated mineral reserve estimate at the Kapan Polymetallic Mine in Armenia.
  • Updated reserves include:
  • 3.1mt at 1.65g/t Au, 32g/t Ag, 0.36% Cu and 1.33% Zn for 330koz GE (3.28g/t GE).
  • Updated estimate include over 60,000m of drilling adding two more years to the life of mine.
  • New estimate represents an increase of 25% on the previous estimate and 2% improvement on the GE grade.
  • The Company continues with infill and stepout drilling to further derisk and expand the resource.

Galantas Gold* (GAL LN) 24p, Mkt Cap £25m – Shares for debt transaction completed

  • The Company completed a previously announced shares for debt transaction with a number of its creditors.
  • The transaction includes an issuance of 2.1m units C$0.36 each (1 share + 1 warrant with an exercise price of C$0.55 and expiry 26 April 2028) in lieu of C$0.7m.
  • Issued shares and warrants are subject to a four month hold period expiring 27 August.

*SP Angel act as Broker to Galantas Gold

Greatland Gold (GGP LN) 7.9p, Mkt Cap £408m – Progress report on the Havieron project

  • Greatland Gold has provided a progress report on the Havieron project in the Paterson region of WA following the release of its quarterly report by Greatland Gold’s partner, Newcrest Mining which has earned a 70 % interest in the project.
  • Advance on the main underground decline has now exceeded 1,600m with a total of over 2,025m of underground development achieved.
  • The company explains that “Drilling activities at Havieron have progressed on schedule with three drill rigs operating and four holes completed for a total of 4,550m … [taking] … the total at the project to 335 holes for 298,428m.
  • Assay results have now been received for six new holes including 3 located within the SE Crescent Zone and one from the Eastern Breccia Zone which “returned significant assay intercepts in excess of 50-gram metres of gold” and two from the Northern Breccia Zone.
  • Among the results highlighted in today’s announcement are:
    • An intersection of the SE Crescent Zone of 30m averaging 2.6g/t gold and 0.32% copper from a depth of 1,236m, including 14m averaging 4.7g/t gold and 0.39% copper from 1,236m in hole HAD-133W10 which also intersected 60m at an average grade of 2.6g/t gold and 0.03% copper from 1,284m depth and 54m at an average grade of 8.5g/t gold and 0.32% copper from 1,421m depth; and
    • An intersection, also of the SE Crescent Zone, of 79m averaging 0.6g/t gold and 0.11% copper from a depth of 1,598m, in hole HAD-152W6; and
    • Another intersection of the SE Crescent Zone over an 85.4m interval from 1,433m in hole HAD-171 which averaged 0.7g/t gold and 0.13% copper and included 12m at an average grade of 1.8g/t gold and 0.43% copper from 1,503m depth; and
    • Another intersection of the SE Crescent Zone in hole HAD-172 which averaged 10g/t gold and 0.07% copper from 1,336m and contained a second, deeper, interval, of 103m at an average grade of 2.0g/t gold and 0.23% copper from 1,433m; and
    • An intersection of the Eastern Breccia Zone over 31.1m from a depth of 1,635m in hole HAD-098W9 which averaged 4.9g/t gold and 0.13% copper and included 10m at an average grade of 13.4g/t gold and 0.14% copper from 1,656m; and
    • A second intersection of the Eastern Breccia over 48m from 1,598m depth at an average grade of 0.6g/t gold and 0.11% copper; and
    • An intersection of the Northern Breccia Zone over a 41m interval from from a depth of 1,424m in hole HAD-087W1 which averaged 0.5g/t gold; and
    • A second intersection of the Northern Breccia Zone in hole HAD-161 which averaged 0.59g/t gold and 0.05% copper over an interval of 77m from a depth of 1,134m.
  • The company explains that “It is expected that subsequent drilling will take advantage of underground drilling platforms once appropriate access is established”.
  • Commenting on the recent progress, Managing Director, Shaun Day, said that the recent drilling highlights “the high grade nature of the SE Crescent zone. In addition, drilling has delivered high grade intercepts outside of the present Havieron mine plan, including additional gold and copper mineralisation intersected at the northern limits of Eastern Breccia zone.

Conclusion: The envelope of mineralisation at Havieron is continuing to be expanded as drilling now approaches 300,000m completed in over 300 holes.  As the underground development is progressed, sites for further drilling from underground collars should start to become available reducing the meterage required to reach the zones of potential interest.

 Kodal Minerals* (KOD LN) 0.82p, Mkt Cap £140m – Kodal extends long-stop date to 31 May

  • Kodal Minerals reports the extension of the long-stop date for the consummation of its deal with Hainan Mining to 31 May 2023.
  • The extension should allow sufficient time for certain conditions precedent to be satisfied including the transfer of the Bougouni project into a new Mali mining company to be owned by Kodal’s new UK subsidiary KMUK..
  • Unfortunately the administration of the process can not be completed by the original 30 April deadline, hence the extension.
  • All parties are reported to remain fully committed to the completion of the funding transaction with Hainan and Xinmao receiving all necessary approvals..

*SP Angel acts as financial advisor and broker to Kodal Minerals.

 Orosur Mining* (OMI LN) 7p, Mkt Cap £13m – Q3 Results and healthy cash position

  • Orosur reports the results for its third quarter to Feb.28th.
  • In Colombia, Orosur is currently focusing on field mapping, sampling and trenching activities to define additional drilling targets at the Pepas prospect.
  • Orosur notes its new 49%-owned new Mining Company (announced Jan17th 2023) is underway with MMA and has received the Phase 2 $2m option payment.
  • Orosur has wound down exploration work at Anzá whilst the corporate restructuring takes place.
  • In Argentina, Orosur is continuing geological mapping, Geotech sampling and ground magnetic surveying and is looking to use IP whilst it progresses with environmental permitting.
  • In Brazil, Orosur is waiting for results from a large-scale regional sampling program using stream and drainage sediment samples from the Ariquemes district. The Company will look to use the resulting dataset for more targeted exploration.
  • Orosur had a cash balance of $4.15m as of Feb 28 and $3.9m as of today and are well positioned for exploration expenditure going forward.

*SP Angel acts as Nomad and Broker to Orosur Mining

 Power Metal Resources* (POW LN) 0.85p, Mkt cap £15m – Drill Results from Molopo Farms Complex show presence of nickel sulphides and PGEs

  • Power Metal have released the results from their 2022/23 drilling programme at the Molopo Farms Complex (MFC) in Botswana, where the Company is exploring for nickel and PGMs.
  • The Company completed five diamond drillholes, targeting four individual areas over a total of 2,400m.
  • The programme targeted geophysical conductors identified in 2022 through POW’s time-domain electromagnetic geophysics survey.
  • Highlights from the programme include:
    • DD1-6B returning 2.27m @ 0.56g/t Pt+Pd+Au & 0.17% Ni from 497.2m and 0.65m @ 0.38%
    • DDH1-6B(2) returning 1m @ 0.166g/t Pt+Pd+Au & 0.10% Ni from 63.
    • DDH1-3 returning 1.02m @ 0.52 g/t Pt+Pd+Au & 0.23% Ni from 381.m downhole and 1.0m @ 0.44 g/t Pt+Pd+Au & 0.30% Ni from 385.0m
    • DDH2-3 intersected the targeted ultramafic rocks at a depth of 280m, and showed the ultramafic formation extended further west than the team had previously believed.
  • Reassuringly, historical drill holes KKME1-14, KKME1-11A corroborate with POW’s DDH1-14B hole to support the team’s expectations of the presence of an ultramafic dyke following the Jwaneng-Makopong shear zone, which is potentially a magma conduit to the Molopo Farms Complex.
  • As a result, the team is confident of its Feeder Zone Model at MPC, with a similar magma conduit model, the Uitkomst intrusion, hosting the Nkomati nickel mine, with both MFC and the Uitkomst intrusion dating to the Bushveld age.
  • Going forward, the drilling campaign has helped POW confirm the presence of an ultramafic dyke-like intrusion with structural similarities to the Uitkomst intrusion and POW believes a vertical borehole to pass through the intrusion may be justified.
  • The team notes that ultramafic rocks in the Bushveld Complex show low grades such as 0.18% Ni at Volspruit North and 0.2% Ni at Sheba’s Ridge but have high tonnage and the capacity for open-pit mining.
  • However, the Company comments that ‘mineralisation in the generally moderately dipping layered ultramafic rocks is likely not a viable exploration target going forward – as per results obtained from drillholes KKME1-6, DDH1-6B and DDH1-6B(2)’
  • POW comments that Molopo Farms has ‘the required ingredients which could allow for the formation of a magmatic sulphide deposit.’
  • The Company believes that significant further exploration is warranted, given the underexplored nature of MFC owing to the complexities of exploring over Kalahari sand cover.
  • POW’s plan for MFC currently consists of:
    • Further analysis of drill programme-oriented core
    • A high-resolution MobileMT airborne geophysical survey at low cost to detect superconductors and provide clearer distinction between resistive units.
    • Prepare a more detailed analysis of all historical drilling and geophysical data to trace feeder dyke, which the company believes may be a possible magma conduit.
    • Following the above, POW will look to plan further drilling, targeting the feeder dyke and adjacent areas.
    • Drilling will look to target the NE outcrop explored KKME1-14 and DDH1-14B which hosts similarities to the Uitkmost intrusion.

Conclusion: Power Metals’ drilling programme at their 1,479km2 Molopo Farms Complex, relying primarily on geophysics, provides the team with a more comprehensive understanding of the project’s underlying geology. Whilst the initial programme did not yield economic grades, it confirmed the presence of both nickel sulfides and PGEs whilst also supporting the exploration team’s geological model. The improved understanding of the MFC offers POW the opportunity to execute more targeted drilling, with the project remaining prospective for nickel and PGE discovery. Botswana is renowned for high grade nickel projects, including Selebi Phikwe and the Phoenix and Selkirk Mines which our analysts have visited over the years, noting the country remains underexplored and ripe for nickel discoveries.

*SP Angel acts as Nomad and Broker for Power Metal Resources

 Resolute Mining (RSG LN) 24.2p, Mkt Cap £502m – Q4 2022 delivers 6th consecutive quarterly production increase

  • Resolute Mining reports that production of 92,259oz of gold at an all-in-sustaining cost of US$1,453/oz(AISC)  during the three months to 31st March 2023 was the 6th consecutive quarterly increase in output and keeps Resolute Mining on course to achieve its current 2023 guidance of 350,000oz at an AISC of US$1,480/oz.
  • Quarterly gold sales amounted to 88,151 oz at an average price of US$1,890/oz.
  • The sulphide operation at Syama produced 45% (41,142oz) of the gold produced during the quarter at an AISC of US$1,389/oz with both output and costs slightly lower than the preceding, December 2022, quarter at 43,508oz at an average AISC of US$1,400/oz.
  • Resolute Mining explains that the slightly reduced output resulted from “a planned seven-day roaster shutdown towards the end of the Quarter to complete minor maintenance work on the fluoseal return leg to the roaster”.
  • Oxide operations at Syama produced an additional 19% of the output (17,513oz at US$1,659/oz) and were also slightly lower in both total gold poured and unit costs than the 30,435oz produced in the December 2022 quarter at a cost of US$1,693/oz.
  • Improved oxide ore grades at Syama of 1.83g/t gold (December 2022 – 1.55g/t) were “partially offset by a lower recovery rate due to high organic carbon in the mill feed”.
  • Output at the Mako mine in Senegal increased during the quarter to 33,604oz (December 2022 – 30,435oz) with costs falling to US$1,307/oz compared to the US$1,520/oz achieved in the preceding quarter.
  • Higher grades at Mako of 1.99g/t (December 2022 – 1.68g/t) more than offset lower throughput “due to a mill reline during the Quarter”.  Resolute Mining also confirms that it “completed the acquisition of the Mako power plant during the Quarter. This purchase will reduce the ongoing operational overheads for power generation at the mine site”.
  • Prefeasibility work on the Syama North project remains on course for completion during Q3 2023.  The study is expected to “form the basis for the expanded Sulphide processing capacity … [which] … will be achieved by making modifications to the existing Oxide comminution circuit to enable it to process Sulphide ore and includes modifications to the roasting circuit and Calcine carbon-in-leach circuit to handle the increased throughput as well as expansions to non-process infrastructure”.
  • The company reports that, during the quarter it reduced net debt “by $11.7 million to $19.9 million”.
  • Summarising what he described as “another solid quarter for Resolute”, CEO, Terry Holohan, said that it saw “improved productivity at all three mines” and highlighted that “Costs for the Quarter improved 6% compared to the December quarter, benefiting from stockpile build up, as the Company mined more material than was processed across all sites”.
  • He confirmed that the “focus for the remainder of 2023 at Mako is on the planned pit extension, with mining for the remainder of the year through a lower grade section … [and that at] … Syama, the emphasis remains on progressing the Syama North PFS, with expected outcomes to be available mid-2023”.

Conclusion: Resolute Mining remains on course to meet its 2023 production guidance of 350,000oz after the sixth consecutive quarterly increase in gold output.  We await the findings of the Syama North prefeasibility study, due later this year, with interest.

Wishbone Gold (WSBN LN) – 2.55p, Mkt Cap £5.4m – Analysis of historical data sheds new light on the Cottesloe project.

  • Wishbone Gold reports that analysis of historical information, including 483 drillholes completed by the likes of Esso, Amax, Occidental during the 1970s and 1980s and subsequent follow-up exploration by Mt Isa Mines, City Resources and BHP covering its Cottesloe project area in the Paterson Range area of Western Australia has shown that it is “highly prospective for sediment hosted base metal mineralisation similar to that at nearby Nifty (Cu) and Maroochydore (Cu-Co) and also the Mt Isa style (Zn-Pb-Ag) deposits”.
  • The analysis demonstrates that the “stratigraphy is the same as that at the Nifty Copper project … [with] … a strong, consistent pattern of copper anomalism along the base of the Broadhurst Formation within drilling, rockchip, soil and lag sampling … [and with] … anomalous results … [occurring] … over a 15km strike”.
  • The company explains that much of the historic drilling targeted “Uranium anomalism rather than base metal” which may explain the previously unrecognised potential.
  • Soil sampling conducted by BHP “in the south-eastern area of the tenement… highlights a Cu anomaly over a 3km zone with results of up to 766 & 1440ppm”.
  • Chairman, Richard Poulden, explained that the historical analysis had provided “several years of data … [and that] … Coupled with our new experience of the MT technology we are pleased to be this far ahead before starting our own drill campaign. With silver, cobalt, lead and zinc grades this high in the targeted area this is hugely promising”.

Conclusion: Exploration information collected by major exploration operators in the past, combined with Wishbone Mining’s newly acquired advanced geophysical data highlights the potential of the Cottesloe project in WA and will guide future drilling. We await the results with interest.

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

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

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


John Meyer – [email protected] – 0203 470 0490

Simon Beardsmore – [email protected] – 0203 470 0484

Sergey Raevskiy –[email protected] – 0203 470 0474


Richard Parlons –[email protected] – 0203 470 0472

Abigail Wayne – [email protected] – 0203 470 0534

Rob Rees – [email protected] – 0203 470 0535

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

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London


*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.

Sources of commodity prices  
Gold, Platinum, Palladium, Silver BGNL (Bloomberg Generic Composite rate, London)
Gold ETFs, Steel Bloomberg
Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt LME
Oil Brent ICE
Natural Gas, Uranium, Iron Ore NYMEX
Thermal Coal Bloomberg OTC Composite
Coking Coal SSY
RRE Steelhome

Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite Asian Metal


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