Copper rally resumes as traders bet stimulus to coincide with rising seasonal demand
MiFID II exempt information – see disclaimer below
Adriatic Metals* (ADT1 LN) 186p, Mkt cap £328m – Mineral Resource Estimate upgrade at Rupice
Anglo American (AAL LN) 2,478p, Mkt Cap £30bn – Weaker commodity prices weigh on earnings despite stronger sales volumes
Beowulf Mining* (BEM LN) 1.6p, Mkt Cap £18.5m – Agreement made with former CEO Kurt Budge
Galantas Gold* (GAL LN) 18p, Mkt Cap £19m – Second drill hole at Gairloch returns wide close to surface high grade polymetallic intersection
GreenRoc Mining* (GROC LN) 4.34p, Mkt Cap £5.8m – Update highlights bulk sample and test work for potential offtake partner
Resolute Mining (RSG LN) 21p, Mkt Cap £454m – Production results show normalising cost pressures and growth potential at Syama
Pre-IPO financing for High-Purity Alumina project
Li-ion batteries use a separator membrane made out of High-Purity Alumina
- High-Purity Alumina (HPA) is an inert chemical with high thermal stability. It gives good heat resistance and insulation making it ideal as a coating for separator membranes.
- The project alumina has been shown to be suitable for Li-ion batteries, LED lighting and synthetic sapphire for smartphones and tablets,
- The resource contains a JORC inferred resource sufficient for 10,000 – 20,000tpa of HPA >30 years
- The process uses an innovative process flowsheet combining commercial proven technologies with recent metallurgical tests producing 99.995% alumina.
- CRU estimate demand for HPA powder could reach 187,000t in 2028 from 19,000t in 2018.
- CRU predict substantial demand growth led by Li-ion battery and LED production,
- Price: High-purity alumina sells for ~$30,000/t today up from $24,000/t in 2018,
- The company looking to fund HPA studies, metallurgical work, working capital and listing costs
*SP Angel’s role is limited to making introductions and interested parties should be aware that investment in a private company can present certain risks not present in listed companies (e.g. limited or no liquidity and no rules compelling disclosure of information to investors). This offer is open to professional investors only and is not offered to retail investors.
Gold strengthens as dollar weakens following uneventful Fed meeting
- Gold prices ticked higher to $1,980/oz before receding slightly after the Fed raised rates by 25p.
- The move followed weakness in the US dollar, which fell as traders were unconvinced in Powell’s suggestion of a potential hike in September.
- Euro strengthened against the dollar, with the ECB expected to provide more hawkish guidance at today’s meeting.
- Powell stuck to the script in a fairly dull Fed presser, stating there remains a long way to go to reach the Fed’s target and the central bank remains data-driven.
- His comments that real rates are currently in ‘meaningfully restrictive territory’ raises the potential that yesterday’s hike may be the last, although his statement that the Fed no longer forecasts a recession.
- 10-year treasury yields were flat, with traders likely focusing on PCE and jobless numbers due at 1:30 this afternoon. These are more likely to impact gold prices.
Copper rally resumes as traders bet stimulus to coincide with rising seasonal demand
- Copper prices picked up again, pushing toward $8,670/t following some weakness yesterday afternoon.
- Prices continue to reflect anticipation of incoming stimulus, although clear-cut measures have yet to be rolled out by Chinese policymakers.
- Import data doesn’t suggest domestic demand for copper products has picked up yet, with yangshan premiums sitting at May lows of $34.5/t.
- Additional signs of weakness are showing in China industrial data, with profits extending declines as slowing global economic demand weighs on factory margins.
- Industrial earnings fell 8.3% in June yoy from a 12.6% slump in May.
Cargo ship catches fire, considered to originate from electric vehicle
- The vessel was carrying 2,857 vehicles from Germany to Egypt, with 25 EV onboard.
- This is the tenth major incident on car carriers since 2002 though most were not down to electric vehicles.
- Two suspected EV fires on ships over the past month both with fatalities is an extremely serious matter for shippers and insurers.
- We are concerned insurers may begin to limit availability for EV makers/vendors to insure their cargoes going forward.
- A reduction in cobalt utilisation in cathodes is raised as a potential reason for rising EV fires.
VOX Markets:
*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts. We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate.
| Dow Jones Industrials | +0.23% | at | 35,520 | |
| Nikkei 225 | +0.68% | at | 32,891 | |
| HK Hang Seng | +1.38% | at | 19,632 | |
| Shanghai Composite | -0.20% | at | 3,217 |
Economics
US – The Fed raised the benchmark rate by 25bp, in line with expectations, to 5.25-5.50% while leaving the door open for further rate hikes.
- Commenting on the state of the economy, the central bank said that inflation remained “elevated”, labour market was “robust” and economic activity was expanding “at a moderate pace”.
- Regarding further rate increases in the future, the Fed decided to leave all options on the table highlighting the decision will be incoming data driven,
- “I would say it is certainly possible that we would raise funds again at the September meeting if the data warranted… and I would also say it’s possible that we would choose to hold steady at the meeting… we’re going to be making careful assessments… meeting by meeting,” Jerome Powell said at the press conference.
- The announcement saw markets little changed with trades betting a roughly 50-50 chance of another rate hike in September, FT writes.
Eurozone – The ECB will announce its interest rate decision later today with expectations for a 25bp taking the main refinancing rate to 4.25%.
Niger – Military announces toppling of Bazoum’s government as President thought to be placed under house arrest.
Currencies
US$1.1113/eur vs 1.1066/eur yesterday. Yen 139.90/$ vs 140.68/$. SAr 17.557/$ vs 17.599/$. $1.297/gbp vs $1.289/gbp. 0.681/aud vs 0.677/aud. CNY 7.141/$ vs 7.151/$.
Dollar Index 100.83 vs 101.26 yesterday.
Commodity News
Precious metals:
Gold US$1,979/oz vs US$1,968/oz yesterday
Gold ETFs 91.7moz vs US$91.7moz yesterday
Platinum US$972/oz vs US$971/oz yesterday
Palladium US$1,262/oz vs US$1,290/oz yesterday
Silver US$25.02/oz vs US$24.68/oz yesterday
Rhodium US$4,100/oz vs US$4,100/oz yesterday
Base metals:
Copper US$ 8,640/t vs US$8,578/t yesterday
Aluminium US$ 2,233/t vs US$2,229/t yesterday
Nickel US$ 21,650/t vs US$22,095/t yesterday
Zinc US$ 2,514/t vs US$2,478/t yesterday
Lead US$ 2,158/t vs US$2,158/t yesterday
Tin US$ 29,160/t vs US$28,650/t yesterday
Energy:
Oil US$83.6/bbl vs US$83.4/bbl yesterday
- Crude oil prices edged higher after the EIA reported a small 0.6mb w/w US crude draw, as well as a 0.8mb draw on gasoline stocks, and refinery utilisation falling by 0.9% to 93.4%.
- European energy prices moved lower as natural gas storage levels rose 2% w/w to 84.3% full (vs 69.1% 5-Yr average), with the three largest storage nations above 85% and overall EU storage of 951TWh.
- Russia reported that 1H23 natural gas production fell 15% y/y to 267bcm (52bcf/d), with June production falling 12% y/y to 34.6bcm (41bcf/d), as gas flows to Europe continue to tumble in the wake of the Ukraine war.
- Iberdrola announced the sale of a 49% stake in the 476MW Baltic Eagle offshore wind farm development to Abu Dhabi’s Masdar for €375m, which the Company commented values the full project at $1.6bn ($3.4m/MW). Iberdrola will operate (51% WI) the development of 50 wind turbines off Germany’s northeastern coast, which is set to commence operations by YE24 under a minimum regulated tariff of €64.6/MWh for the first 20 years.
Natural Gas US$2.615/mmbtu vs US$2.727/mmbtu yesterday
Uranium UXC US$56.15/lb vs US$55.75/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$115.5/t vs US$115.3/t
Chinese steel rebar 25mm US$538.4/t vs US$537.2/t
Thermal coal (1st year forward cif ARA) US$133.3/t vs US$133.3/t
Thermal coal swap Australia FOB US$148.0/t vs US$148.5/t
Coking coal swap Australia FOB US$237.0/t vs US$237.0/t
Other:
Cobalt LME 3m US$33,420/t vs US$33,420/t
NdPr Rare Earth Oxide (China) US$65,468/t vs US$66,068/t
Lithium carbonate 99% (China) US$37,880/t vs US$38,522/t
China Spodumene Li2O 6%min CIF US$4,040/t vs US$4,060/t
Ferro-Manganese European Mn78% min US$1,095/t vs US$1,090/t
China Tungsten APT 88.5% FOB US$310/mtu vs US$313/mtu
China Graphite Flake -194 FOB US$675/t vs US$675/t
Europe Vanadium Pentoxide 98% 7.5/lb vs US$7.5/lb
Europe Ferro-Vanadium 80% 32.05/kg vs US$32.05/kg
China Ilmenite Concentrate TiO2 US$312/t vs US$311/t
Spot CO2 Emissions EUA Price US$100.2/t vs US$99.7/t
Brazil Potash CFR Granular Spot US$340.0/t vs US$340.0/t
Battery News
Volkswagen Group targeting Chinese markets with strategic investments
- VW Group is looking to reinforce its position in the Chinese automotive market and advance its electrification strategy through investments and collaborations with Chinese automakers.
- Volkswagen has agreed a strategic collaboration with Chinese EV maker XPeng – the agreement will see the companies jointly develop two EV models under the Volkswagen brand for the Chinese mid-size car market.
- As a key part of this long-term strategic partnership, Volkswagen Group is to invest approximately US$700m in XPeng, acquiring about 4.99% stake in the Chinese company.
- VW Group brand, Audi, has also signed a strategic memorandum of understanding to further their existing collaboration.
- Audi plans to enter previously untapped niche markets in China by introducing new electric models.
Evergrande EV unit reports $10bn loss for 2021 and 2022
- China Evergrande New Energy Vehicle Group reported a combined net loss of 71.12b yuan (US$9.95b) for 2021 and 2022 as it posted its long overdue financial results.
- The NEV company, has been under pressure since its parent China Evergrande group got caught up in a debt crisis in mid-2021 and had warned in March it would have to wind up operations unless it obtained new funding.
- In 2022, the company had to delay mass production of its first flagship model, Hengchi 5.
- As of May 2023, it had delivered more than 1,000 units of the EV since sales started in October last year.
Leading battery maker CATL posts slower growth as competition intensifies
- Chinese battery giant CATL posted slower growth in net profit for Q2, as the company scrambled to maintain its industry leadership amid intensifying competition in the EV battery market.
- Net profit for the three months ended June came in at 10.895b yuan ($1.53b), up 63.22% from a year earlier. This compared with a 558% surge in its net profit in the Q1.
- China’s battery makers, including CATL, are facing challenges of weakening demand and bigger cost reduction pressure from EV makers amid a price war and a slowdown in auto sales this year.
- The EV battery market has grown at a much slower pace this year with a 36.8% increase in battery installation volume in H1 compared with the 176.4% growth in the same period in 2022, data from China Automotive and Battery Alliance showed.
Company News
Adriatic Metals* (ADT1 LN) 186p, Mkt cap £328m – Mineral Resource Estimate upgrade at Rupice
- Adriatic Metals reports an updated JORC Mineral Resource Estimate for its 100%-owned Rupice silver-zinc-lead-gold deposit in Bosnia and Herzegovina.
- The updated MRE now stands at:
- Indicated: 18.3mt @ 168g/t Ag, 4.6% Zn, 2.9% Pb, 1.3g/t Au, 0.4% Cu
- Inferred: 2.8mt @ 75g/t Ag, 2.4% Zn, 0.5g/t Au 1.6% Pb, 0.2% Cu
- Total: 21.1mt @ 156g/t Ag, 4.3% Zn, 1.2g/t Au,0.2% Cu
- The updated resource contains:
- 105Moz Ag, 789koz Au, 913kt Zn, 581kt Pb, 88kt Cu, 39kt Sb.
- (Using a cut-off grade of 50g/t AgEq.
- The upgrade now represents a 93% in indicated tonnes, with 87% of the MRE now classified as Indicated.
- The MRE excludes tonnage from new drilling completed after the end of May 2023.
- Management notes that continued exploration drilling at the asset is identifying further high-grade mineralisation, expected to be included in the Rupice MRE when possible.
Conclusion: Adriatic continues to shore up and expand the MRE at Rupice following the initial delivery in 2020. It is reassuring to see both additional tonnage, and an increase in definition. Alongside promising exploration development at Rupice, Adriatic expects to begin production of concentrate at the Vares Project in November. ‘Aggressive’ exploration of Rupice is scheduled throughout the rest of 2023, with additional tonnage expected.
*An SP Angel mining analyst has visited Adriatic Metals operations in Bosnia
Anglo American (AAL LN) 2,478p, Mkt Cap £30bn – Weaker commodity prices weigh on earnings despite stronger sales volumes
- Revenue amounted to $15.7bn (H1/22: $18.1bn) reflecting a drop in commodity prices amid ongoing macro headwinds and underperformance of a recovery in China, in particular.
- Production volumes increased 10%yoy on a CuEq basis on the back of a successfully completed ramp up at the new Quellaveco Copper Mine in Peru, strong operation performance at iron ore assets in Brazil and SA, as well as higher production from our steelmaking coal underground and open cut operations in Australia.
- Lower grades impacted productions at Los Bronces and Collahuasi in Chile as well as Mogalakwena and Nickel.
- Production was marginally lower at De Beers as the Venetia mine transitions from open pit to underground operations.
- Group copper equivalent unit costs increased by 1% as inflationary pressures, particularly labour and electricity, were offset by the benefit of favourable exchange rates and production from Quellaveco which started operations in July 2022.
- Excluding the favourable impact of foreign exchange, unit costs increased by 7%.
- Underlying EBITDA generated of $5.1bn (H1/22: $8.7bn) on the back of lower commodity prices and global cost inflationary pressures.
- Price was the major contributor among main segments of the group with a drop in local currencies providing only marginal relief.
- Average market prices for the Group’s basket of products dropped by 19%yoy including PGMs (-29%), iron ore pellets (-22%), hard coking coal (-31%) and copper (-11%).
- Attributable FCF came in at -$0.5bn (H1/22: $1.6bn) after accounting for $2.7bn in capex (H1/22: $2.6bn).
- Development capex dropped to $0.6bn (H1/22: $0.8bn) after the delivery and commissioning of the Quellaveco
- Project in Jul/22 with the operation reaching commercial production in Jun/23.
- Growth capex is forecast at $1.5bn for FY23 with Woodsmith Polyhalite Project accounting for $0.7bn of the total where the service shaft reached ~500m while the mineral transport system reached ~24km of the planned 37km length.
- PAT attributable to shareholders totalled $1.3bn (H1/22: $3.7bn).
- Interim dividend declared of $0.55/share (H1/22: $1.24/share) in line with a 40% of underlying earnings payout policy.
- “We are on track to deliver on our full year production guidance, which includes a significant anticipated step-up in volumes in the second half,” the Company commented on results.
Beowulf Mining* (BEM LN) 1.6p, Mkt Cap £18.5m – Agreement made with former CEO Kurt Budge
- Beowulf has entered into a compromise agreement with Kurt Budge, previous CEO of Beowulf.
- Kurt will receive recognition for his long-serving tenure in Beowulf’s leadership in the form of 12,250,000 options exercisable immediately at a strike price of 2.06p.
- The options are exercisable for up to five years.
- Kurt will also receive £3k in support of legal fees and pay in lieu of the remainder of his notice period.
- It is reassuring to see Kurt will assist Ed Bowie, incoming CEO to Beowulf, before he joins he board on the 7th of August.
*SP Angel acts as Nomad and Broker to Beowulf Mining
Galantas Gold* (GAL LN) 18p, Mkt Cap £19m – Second drill hole at Gairloch returns wide close to surface high grade polymetallic intersection
- The Company released assay results form the second exploration drill hole at the 100% owned Gairloch Project, Scotland.
- 23-GL-02 results include:
- 33m at 1.88g/t gold, 1.23% copper and 0.51% zinc from 17m including higher grade interval of
- 19m at 2.55g/t gold and 1.72% copper and 0.80% zinc from 30m.
- Results reflect an estimated 99.6% true width of intersects.
- The location of the hole is a 50m step back from hole 23-GL-01 completed earlier with the mineralised horizon found within same host rock represented by a quartz-carbonate rich unit.
- 23-GL-01 returned 17.9m at 2.87% Cu, 0.77g/t Au, 0.46% Zn along with some cobalt and silver.
- Second hole was completed next to a historic drill hole from GreeOre Gold (2018) that returned 8m at 1.8g/t gold, 1.4% copper and 0.7% zinc from 22m.
- Sulphide mineralisation within the intersected horizon is predominantly massive and semi-massive pyrrhotite and chalcopyrite.
- Results are reported to have been higher grade and wider in terms of mineralised intersections than expected.
- The team completed four holes of the six holes programme with results from holes 3 and 4 are expected in the coming weeks.
- Hole 5 is a deep hole currently drilling below the known deposit.
Conclusion: Second drill hole at the Gairloch Polymetallic Project returned wide close to surface high grade intersections. The team is testing historical drilling at the Kerry VMS deposit
as well as extensions to the known mineralisation with results from two further holes due in coming weeks.
*SP Angel act as Broker to Galantas Gold
GreenRoc Mining* (GROC LN) 4.34p, Mkt Cap £5.8m – Update highlights bulk sample and test work for potential offtake partner
- GreenRoc Mining report significant progress at their Amitsoq graphite mine in the south of Greenland in Europe.
- ProGraphite is concentrating a 700kg bulk sample of Amitsoq graphite material for testing along with the preparation of spheronised graphite samples.
- at UVF-FIA in Germany
- Management are also making good progress with the EIA and SIA for the reopening of the mine for larger scale production.
- Both studies are due next year with further ecological fieldwork planned for August.
- A draft of the SIA Terms of Reference has been submitted to the Greenlandic Ministry of Mineral Resources for comments.
- A PEA ‘Preliminary Economic Assessment’ is advanced and is due this Autumn from SLR Consulting in the UK.
- The PEA is based on 400,000t of ore output for ~80,000t of graphite concentrate and will help with financing discussions with investors and anode and battery manufacturers.
- Surveys are being done to find the best location for tailings storage.
- The GEUS ‘Geological Survey of Denmark and Greenland’ “has delivered a detailed study testifying to the uniformity of the Amitsoq ore.”
- Interest in offtake from the mine
- BioApp biologists are due to visit in August to completed the main field sampling programme for the EIA.
- Negotiation with the Greenland government have effectively started with the submission of the Terms of Reference of the SIA to the Ministry of Mineral Resources.
- We expect the permitting process to be relatively quick and simple give the proposal is to reopen and expand an existing historic graphite mine.
- Thesis: GreenRoc has sponsored a thesis at the University of Bologna, Italy, on the origins of Amitsoq graphite ore.
- The thesis demonstrates how metamorphic fluids have combined with a biotic carbon source to create a remarkable grade and consistency of grade. The thesis will be presented the Society of Economic Geologists 2023 Conference entitled in London in August.
- Amitsoq: JORC Inferred Mineral Resource to be 23.05mt grading 20.41% Gc ‘Graphitic Carbon’ with a total graphite content of 4.71mt including:
- 1.26mt of Measured Resource,
- 6.12mt Indicated Resource from 2.04mt – a 200% increase over the 2022 MRE,
- 15.67mt Inferred Resource from 6.24mt to – a c.150% increase over the 2022 MRE,
- Total: 23.05mt grading 20.41% GC at a cut-off grade of 0% Gc.
- The LGL ‘Lower Graphite Layer’ contains some 16.88mt, @ 21.51% for 3.634mt of contained graphite representing >77% of the total resource with the rest in the UGL ‘Upper Graphite Layer’.
Conclusion: Work on the Amitsoq graphite continues to progress towards the verification of value for the mine and its economic potential.
*SP Angel acts as broker to GreenRoc Mining
Resolute Mining (RSG LN) 21p, Mkt Cap £454m – Production results show normalising cost pressures and growth potential at Syama
- Resolute provides their quarterly production report.
- Total gold poured fell 8.5% qoq to 84,372oz, whilst 1H23 saw a 3.33% increase in production to 176,631oz vs same period last year.
- Total production for the year is expected in line with guidance at 350koz with an AISC of $1,480.oz.
- AISC for the quarter rose 2% to $1,489/oz qoq.
- Gold sales stood at 84.9koz for the quarter, with a slight slide in production offset by higher gold prices.
- The company generated $17.3m in cash ex. Interest and working capital, with net debt sliding 14% to $17.2m.
- Resolute holds $85.7m in cash and bullion.
- Syama Phase I Expansion is hoped to increase production at Syama to over 250koz pa and reduce AISC by $200/oz.
- Expansion of Syama Phase I, costing $52m, is aimed to increase margins through modifying the Oxide Plant for treatment of sulphide ores whilst giving management the option to treat oxide ores.
- Resolute anticipates that Syama Phase 1 expansion will be funded through existing cash flows and expects commissioning in 1H25.
- The Company expects full year CAPEX to slide below previous guidance of $88m.
Conclusion: Production across Resolute’s projects continues to stabilise and it is encouraging to see management retain guidance for 350koz production by year end, despite a slowdown in Q2. Cost inflation is slowing, as evinced by a 2% increase in AISC, with management emphasising their commitment to cost control over the second half of this year whilst ramping up Syama production. CAPEX in over the first six months of the year fell 44% vs same period last year following a period of investment in longer-term growth.
No.1 in Copper: “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”
No1. In Gold: “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”
The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020
Analysts
John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490
Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484
Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk – 0203 470 0474
Sales
Richard Parlons –Richard.Parlons@spangel.co.uk – 0203 470 0472
Abigail Wayne – Abigail.Wayne@spangel.co.uk – 0203 470 0534
Rob Rees – Rob.Rees@spangel.co.uk – 0203 470 0535
Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471
SP Angel
Prince Frederick House
35-39 Maddox Street London
W1S 2PP
*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)
+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.
| 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 |
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 of less than 15%
