SP Angel Morning View -Today’s Market View, Thursday 27th March 2025

Gold poised to break new all-time high as physical gold stocks continue to build in US

MiFID II exempt information – see disclaimer below

Antofagasta (ANTO LN) – 2024 Annual Report highlights production growth plans in the context of a widening global copper supply deficit

Beowulf Mining* (BEM LN) – Updated presentation outlines roadmap to project development

Caledonia Mining (CMCL LN) – Bilboes feasibility study extended to allow thorough examination of optimisation opportunities

Capital Drilling (CAPD LN) – Results show CAPEX cycle to grow assay lab division

Ecora Resources (ECOR LN) – Full year results following acquisition of Mimbula and Phalaborwa streams

Katoro Gold (KAT LN) – Expansion of Iva lithium project area in Ontario

Rockfire Resources (ROCK LN) – Additional drilling and metallurgical work expected from Plateau project as earn-in partner raises A$3m

Savannah Resources* (SAV LN) – BUY, 18.1p – Phase 2 return good grades with six drill rigs on site

Gold ($3,052/oz) poised to break new all-time high as physical gold stocks continue to build in US

• Gold prices have jumped 1.1% this morning, nearing record highs.
• The US continues to import gold at record levels, with stockpiles surging over the past two months over Trump tariff fears.
• New York gold inventories climbed 25% last month, having jumped 43% in January, with COMEX inventories at 42.6m oz on Tuesday, double the inventory in December 2024. (Bloomberg)
• Trump’s announcement on tariffs on all auto imports yesterday has been a key catalyst, reigniting concerns that Trump may not roll back his tariff plans.
• The escalating trade war, combined with the US taking a less active role in global defense, is fueling concerns over a shifting geopolitical dynamic, the end of ‘Pax Americana.’
• Central Banks continue to accumulate holdings of gold, reflecting increasing anxiety over holding significant dollar reserves on their balance sheets.
• Gold has shrugged off the recent spike in US Treasury yields, with the 10 year rising back to 4.4%, up 24bp since the beginning of the month.
• This spike in US borrowing costs has failed to halt ETF inflows, with physical gold holdings rising again overnight.
• Gold remains vulnerable to easing geopolitical tensions and a peace deal in the US, although it seems China’s Central Bank’s buying is the primary tailwind behind the ongoing gold bull market.
• Note the pullback in October, before reports surfaced that China resumed buying in November, supporting a 14% rally.

Copper $9,884/t – Continued wide arbitrage between US and LME prices amid pre-emptive tariff planning

• Provisional pricing adjustments to lead to substantial gains on December, January and February shipments of copper concentrates
• Copper cathode repricing adjustments also likely to lead to significant pricing adjustments February shipments.
• Anyone shipping copper cathode into the US this month should be in for happy days. 
• Unfortunately, most copper contracts are based on LME prices. 
• Will be interesting to see how much copper is being bought by US consumers at these premium prices.
• Tariffs are expected on copper within weeks with US tariffs are already applied steel and aluminium imports into the US.

Trafigura chief calls for the West to nationalize parts of the metals processing industry to compete with China

• Richard Holtum, ceo, Trafigura has called for western governments to nationalize parts of the metals processing industry to compete with China.
• Holtum called for mineral processing facilities to be considered “a national security issue” at the FT Commodities Global Summit.
• We agree, western governments need to support existing processors and fund the creation of new processing facilities particularly for rare earths and other critical metals.
• Glencore is currently scaling back its smelting operations due to difficult market conditions despite much cost cutting.
• We have observed and worked with a number of smelters over the years which have struggled to compete with ever lower cost smelters in China.
• Chinese smelters, refiners and feedstock processors benefit from:
  • Low and often subsidised energy costs
  • Low labour costs
  • Lax health and safety
  • Poor environmental practices
  • State subsidies, normally directed thorough local provincial governments
  • Strong focus on metallurgy in state education
  • Critical mass in terms of the numbers of specialist smelting businesses in certain regions
• New investment in hydrometallurgy and recycling should help arrest a small portion of the decline but manufacturers need to prepare for shortages of critical materials if more smelters and refiners are not supported in the west.

Economics

Trump confirms 25% tariffs on auto imports

• President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US.
• Charges will be applied to car parts as well as fully assembled vehicles but are expected to come in May or later.
• Almost half of vehicles sold in the US are imported and cars assembled in the US contain ~60% of foreign sourced parts.
• The tariffs will come into effect on 2^nd April, with taxes on vehicle importers starting 3^rd April and taxes on parts starting in May.
• Trump has said the move would lead to “tremendous growth” for the industry and spur jobs and investments in the US.
• However, industry analysts generally believe the new tariffs will heavily impact car production in the US, increase prices and strain the countries relationship with allies.
• The US imported almost 8m vehicles last year, roughly $240bn of trade and accounting for almost half of the country’s overall sales.
• Mexico is the top supplier of cars to the US, followed by South Korea, Japan, Canada and Germany.
• Canada and Mexico are exempt for car part tariffs while US customs and border patrol set up a system to assess the duties, the Trump administration has said.
• According to the Anderson Economic Group, the new tariffs could add $4,000-$10,000 to the cost of a vehicle using parts from Mexico and Canada.
• The response from other governments and industry leaders has been fairly unanimous that the tariffs would have a significantly negative impact on the industry.
  • UK Chancellor Rachel Reeves told the BBC the new tariffs would be “bad for the UK, and bad for the US as well”, adding the UK was involved in “extensive” talks to avoid them being imposed in Britain.
  • European Commission president Ursula von der Leyen said the bloc would consider the measures before any potential response.
  • Canadian Prime Minister Mark Carney called Trump’s announcement a “direct attack” on his country and its auto industry.
  • Ford and General Motors among other major car firms urged Trump to exempt the industry from any further duties following the tariffs on steel and aluminium announced earlier this month.
• Trump has doubled down on the new tariffs and has threatened “far larger” tariffs if the European Union and Canada worked together to do “economic harm” to the US.

India – Modi government looking to cut $23bn in tariffs on US imports in an effort to reduce reciprocal tariffs into the US

• The move is designed to help save Indian exports into the US.
• The reciprocal tariff system is exposing the use of Tariffs by other countries to restrict US imports into its trading partners.
• Reciprocal tariffs are expected to hit 87% of Indian exports to the US.
• The US trade deficit with India is around $45bn according to the WTO.
• The US has previously applied a modest 2.2% trade-weighted average tariff on imports from India vs 12% applied by India onto US goods into India.

China – Industrial profits off to a weak start with earnings in the first two months down 0.3%yoy.

• Profits recorded a 3.3% drop for CY24.

US adds >50 Chinese tech firms to export control blacklist

• The US has added dozens of firms working on the development of technology for the Chinese military. (Asiafinancial.com)
• Over 50 are based in China. Others are in Taiwan, Iran, Pakistan, South Africa and the United Arab Emirates.
• More than 1,000 organisations and people are now on the Entity List with BAAI, the ‘Beijing Academy of Artificial Intelligence’, a Chinese new research and development institution also added.
• Many of the firms are thought to be working on AI and supercomputers.

EU – Belgian ECB governing council member says a rate pause should be on the table

• Pierre Wunsch also highlighted how tariff-induced stagflation poses a policy dilemma.
• The Latvian member suggested if the ECB baseline holds then a gradual reduction in rates could be expected.
• We suspect the impact of US tariffs on the EU will accelerate ECB rate cuts.

UK – Chancellor Rachel Reeves restored a fiscal buffer of £9.9bn by a reduction in spending and welfare payments as well as addressing tax avoidance, Spring Budget statement showed.

• Underperformance on economic growth or an increase in borrowing costs risk puts pressure on the fall budget raising prospects for more tax hikes later in the year.
• Taxes are already at the highest level since late 1940s (37.7% of GDP).
• Commenting on the budget, the OBR said that all of the buffer will be gone should President Trump raise tariffs with 20% or if borrowing costs increase 0.6pp.
• 10y yields finished the day little changed around 4.73% but have been trending higher this morning amid news of US auto tariffs.

Zambia – Protests by contractors and suppliers to Mopani Copper Mines

• MCM ‘ Mopani Copper Mines’ is 51% owned and controlled by IHC ‘International Holding company’ who are based in Dubai.
• IRH is reported to have invested $1.1bn into the complex with $620m of equity and $400m as a shareholder loan.
• Protestors representing local contractors and suppliers have accused MCM of favoring Indian-owned companies over Zambian businesses.
• MCM is also accused of late payment and favouring foreign companies over long-term contracts.
• One accusation indicates that an underground development contract was awarded to an Indian company which had not participated in the tendering process with the Indian company then subcontracting to a Chinese firm to execute the work.
• The mine and smelting complex was previously owned by Glencore who sold the operation back to ZCCM-IH in 2021 for a peppercorn $1.

Currencies

US$1.0761/eur vs 1.0798/eur previous. Yen 150.56/$ vs 150.08/$. SAr 18.246/$ vs 18.247/$. $1.291/gbp vs $1.291/gbp. 0.631/aud vs 0.633/aud. CNY 7.266/$ vs 7.264/$

Dollar Index 104.482 vs 104.232 previous

Precious metals:         

Gold US$3,036/oz vs US$3,020/oz previous

Gold ETFs 87.7moz vs 87.8moz previous

Platinum US$976/oz vs US$977/oz previous

Palladium US$973/oz vs US$956/oz previous

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

Rhodium US$5,775/oz vs US$5,675/oz previous

Base metals:   

Copper US$9,890/t vs US$9,935/t previous

Aluminium US$2,611/t vs US$2,611/t previous

Nickel US$16,155/t vs US$16,165/t previous

Zinc US$2,944/t vs US$2,951/t previous

Lead US$2,083/t vs US$2,087/t previous

Tin US$35,110/t vs US$35,015/t previous

Energy:           

Oil US$73.6/bbl vs US$73.4/bbl previous

• Brent crude oil prices fell by over $1/bbl overnight after President Trump announced new import taxes of 25% on cars and car parts coming into the US, heightening concerns for a trade war dragging on economic growth.
• The EIA estimated a US inventory w/w draw of 3.3mb to crude (smaller than API), compounded by draws of 1.4mb to gasoline and 0.4mb to diesel stocks, with refinery utilisation up 0.1% w/w to 87%.
• European natural gas prices were stable as EU natural gas storage levels fell by 0.6% w/w to 33.7% full (vs 45.2% 5-Yr average) with aggregate inventory at 387TWh and Germany flipping to a small 0.1TWh w/w gain.
• Schroders Greencoat has agreed to acquire a 49% stake from Repsol in a 400MW Spanish portfolio of eight wind farms and two solar plants, which is valued at €580m and expected to be fully operational during 1H25.

Natural Gas €41.0/MWh vs €41.0/MWh previous

Uranium Futures $64.3/lb vs $64.3/lb previous

Bulk:   

Iron Ore 62% Fe Spot (China CFR) US$103.4/t vs US$102.3/t

Chinese steel rebar 25mm US$477.2/t vs US$477.7/t

HCC FOB Australia US$174.0/t vs US$174.0/t

Thermal coal swap Australia FOB US$100.0/t vs US$100.8/t

Other:  

Cobalt LME 3m US$33,610/t vs US$33,610/t

NdPr Rare Earth Oxide (China) US$60,559/t vs US$60,913/t

Lithium carbonate 99% (China) US$9,910/t vs US$9,843/t

China Spodumene Li2O 6%min CIF US$805/t vs US$805/t

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

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

China Graphite Flake -194 FOB US$435/t vs US$435/t

Europe Vanadium Pentoxide 98% US$5.0/lb vs US$5.0/lb

Europe Ferro-Vanadium 80% US$24.3/kg vs US$24.3/kg

China Ilmenite Concentrate TiO2 US$299/t vs US$299/t

Global Rutile Spot Concentrate 95% TiO2 US$1,506/t vs US$1,506/t

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

Brazil Potash CFR Granular Spot US$335.0/t vs US$335.0/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

Antofagasta (ANTO LN) 1,843.5p, Mkt Cap £18.6bn – 2024 Annual Report highlights production growth plans in the context of a widening global copper supply deficit

• In its 2024 Annual Report, released today, Antofagasta highlights a projected 2%pa growth rate in copper demand between 2023-2030 in the context of projections that global copper supply will remain flat over the same period.
• The company says that, with China representing -55-60% of global copper demand, in September 2024 its government introduced measures to stimulate the construction industry, a major source of copper consumption, by releasing “liquidity … [introducing] … lower mortgage rates and … [using] … fiscal measures to alleviate debt-related pressures on local government”.
• In North America and Europe, which represent “15% and 10% of global copper demand respectively” Antofagasta says that “Future growth in demand in these regions is likely to be spurred by policies designed to onshore manufacturing (in the case of the US) and the phased unveiling of the EU’s Carbon Border Adjustment Mechanism, which began in late 2023”.
• Antofagasta explains that “Grade decline and ore hardness are common technical constraints that affect primary copper production as mining progresses to deeper sections of a copper deposit”.
• The company elaborates that “Rising ore hardness results in increasing energy requirements to maintain existing production levels, with investments in greater processing capacity required as a result. In tandem, lower grades at depth are a second factor also requiring companies to increase processing capacity, and this trend of declining copper grades is expected to affect a significant proportion of global copper mines in the next decade”.
• Combining its views on supply and demand, Antofagasta highlights “expectations of a market deficit in future years … [and says that] … Wood Mackenzie estimates that an additional 790 kt per annum of new supply is required to fill this deficit, with a 5.5 Mt deficit forecast for 2034”.
• Reiterating its 2025 production guidance range of 660-700kt of copper production, the company describes a potential 30% growth in copper output from a pipeline of projects including further development at Los Pelambres, primary sulphide production at Zaldivar as well as further expansion of the Centinela concentrator and development of Cachorro and Enciero.
• Describing the growth plans in his letter to shareholders, Chairman, Jean-Paul Luksic, explained that the US$2bn Phase 1 investment at Los Pelambres is already delivering “increased ore processing capacity and water availability … [and that] … Construction is already underway on the next phase, to further expand desalination capacity and a new concentrate pipeline … [and he confirmed that] … this work is continuing in line with expectations”.
• CEO, Ivan Arriagada, also confirmed that “in Q4 2024 we submitted our Environmental Impact Assessment for the Los Pelambres Development Options Project, which is critical to extending the mine life by a further 15 years after 2035”.
• Mr. Arriagada commented that approval of this submission brings “into production a significant amount of existing mineral resources which would otherwise remain unexploited … [and that it will require] … an increase in the capacity of the tailings storage facility, and the option for additional ore processing and desalination plant capacity. If approved, construction work is expected to commence in the early 2030s”.
• Mr. Luksic also explained that “Centinela has now begun full construction of the Second Concentrator Project, which will add 170,000 copper-equivalent tonnes of production from 2027” which he described as “one of the largest copper projects in construction in the world today”.
• Mr. Arriagada also described the potential of Antofagasta’s ‘Cuprochor’ technology “to maximise Zaldívar’s potential … [by] … the leaching of primary sulphides, as well as a transition away from continental water sourcing”.
• He said that “Work has continued with all … [Zaldivar’s] … stakeholders, including national and regional authorities, workers and the community, on this operation’s Environmental Impact Assessment, which is being reviewed by the relevant environmental Chilean authorities”.
• Mr. Arriagada outlined Antofagasta’s belief that “copper markets are facing a structural shortage due to supply-side constraints, coupled with rising demand from global economic growth, electrification, the rise in the digital economy, and energy security … [and he said that Antofagasta is] … pursuing growth ahead of others, and we have positioned ourselves as a responsible producer of copper”.

Conclusion: Antofagasta reports copper production growth plans in response to a widening deficit of global supply.

Beowulf Mining* (BEM LN) 18.5p, Mkt cap £7.2m – Updated presentation outlines roadmap to project development

• Swedish high-grade iron ore developer Beowulf has published an updated presentation available here: LINK
• The Company is currently completing a fundraise, with a UK placing of £1m, (Management and associates subscribing for £0.27m), alongside a Swedish Rights Issue up to £2.9m.
• Additionally, the Company is conducting a retail offer for up to £0.7m.
• Total proceeds from the fundraise aimed at £4.5m, which will enable the completion of the Kallak PFS, submittal of the Environmental Permit Application, alongside working capital into 2026.
• Fundraise subscription period ends 5^th May.
• Kallak has the potential to produce 2.7mtpa of high-grade Fe concentrate over 70% Fe to feed into the growing EAF steelmaking sector.
• The Company is now aiming to slurry the product to the rail terminal, although this remains subject to further technical and environmental studies.
• The pipeline is expected to support a considerable reduction in OPEX vs the initial Scoping Study, offsetting increased CAPEX.
• The pipeline is also expected to accelerate and simplify permitting.
• Beowulf is currently focused on derisking Kallak through the Environmental Permit Application and PFS.
• Additionally, Beowulf has also recently completed the updated PFS for the GAMP project in Finland, which showed a post-tax NPV8 of €2.2bn for an IRR of 38% for its CSP graphite product.
• Company is aiming for FEED, financing, and construction in 2027-2028 for the GAMP plant following the completion of the DFS and ESIA.

Conclusion: Beowulf’s updated presentation outlines the Company’s path to development for their high-grade Fe concentrate mine, Kallak, alongside the outlined roadmap for the GAMP project in Sweden. The concentrate pipeline is expected to positively impact Kallak economics given lower OPEX and be a positive tailwind to the permit application. We are strong believers in the high-grade iron ore product demand growth trajectory. Note Hyundai’s announcement this week to invest US$5.8bn into a new EAF-based steel mill in the US, as the industry continues to transition to DRI-intensive steel production.

*SP Angel acts as Nomad and Broker to Beowulf Mining

Caledonia Mining (CMCL LN) 915p, Mkt Cap £168m – Bilboes feasibility study extended to allow thorough examination of optimisation opportunities

• Caledonia Mining reports that it will extend the timetable for its feasibility study on the development of its Bilboes project located approximately 75km north of Bulawayo, Zimbabwe.
• The company’s original intention to complete the study “in Q1 2025 … [has been extended so that it can] … fully explore several material optimisation opportunities that have the potential to enhance project economics and reduce upfront capital requirements”.
• In particular, Caledonia Mining will assess:
  • “the potential sale of concentrate, which could significantly reduce upfront capital expenditures by deferring the capital expenditure on a BIOX processing circuit, at least in the first few years of production”; and
  • Review the location for tailings disposal “to a more efficient site … where the topography could lead to lower initial construction costs”; and
  • Possibilities to incorporate the adjacent Motapa project area in the Feasibility Study. In November 2024, Caledonia Mining reported that almost 13,000m of trenching and over 4,000m of diamond drilling and 5,000m of reverse-circulation drilling had “highlighted the presence of widespread gold mineralization over a combined strike length of more than 9km”.
• In a Preliminary Economic Assessment (PEA), released in June last year, Caledonia Mining described “an initial ten year mine life, Bilboes is expected to produce ~1.5moz of gold at an overall, all-in-sustaining cost averaging US$968/oz from a revised pit design intended “to reduce upfront capital”.
• The June 2024 announcement explained that at a conservative gold price of US$1,884/oz, capital investment of US$403m at Bilboes was expected to generate an after-tax NPV10% of US$309m and an IRR of 34%.
• We welcome Caledonia Mining’s efforts to ensure that the feasibility work delivers the most effective project possible at Bilboes and provides the most efficient use of capital.
• We consider that additional time taken at this stage will be well rewarded if it achieves these objectives.
• Today’s announcement explains that the current feasibility study work “continues to confirm the project’s attractive fundamentals. Against the backdrop of a strong gold price, Bilboes remains both compelling and financeable”.
• Chief Executive, Mark Learmonth, described the Bilboes project as providing an opportunity to transform the company and “to significantly reshape Caledonia’s growth profile”.
• Mr. Learmonth has previously described the Bilboes project’s potential to deliver the company’s aspiration to evolve into mid-tier gold producer based in Zimbabwe.

Conclusion: Caledonia Mining’s continuing feasibility stage work on the Bilboes project aims to incorporate the adjacent Motapa project and ensure efficient deployment of development capital. We look forward to the Feasibility Study for insight into the technical and financial character of the project.

*SP Angel mining analysts have visited Caledonia’s mining operations in Zimbabwe

Capital Drilling (CAPD LN) 61p, Mkt Cap £119m – Results show CAPEX cycle to grow assay lab division

• Drilling company Capital report a 9.3% increase in revenues to $348m, with EBITDA at $80m
• EBITDA fell 13% and adjusted operating profit down 21.5% to $47m.
• Company reports an EBITDA margin of 23% vs 28% in 2023, and NPAT margin of 4.1% vs 11.2% 2023.
• Company declared a dividend of 2.6c/share, down from 3.9c/share last year.
• Capital holds net debt of $76m and an investment portfolio of $30.3m, having sold down their $31.2m stake in Predictive Discovery.*
• Capital’s contract at Sukari ended in September 2024 and their Gabon contract with Belinga ended 4Q24.
• Conversely, they secured a new contract with Barrick at Reko Diq, also comprising civil works and TSF services.
• Guidance
  • Revenue between $300-320m 2025
  • Nevada Gold Mines a key growth area.
  • CAPEX guided at $45-55m FY25 vs $67m 2024 and $69m 2025.
• Capital is progressing a growth strategy aimed at establishing more consistent margins through the cycle.
• Company aiming for ‘significant growth’ from their MSALABS production.

*An SP Angel analyst holds shares in Predictive Discovery

Ecora Resources (ECOR LN) 61.7p, Mkt Cap £163m – Full year results following acquisition of Mimbula and Phalaborwa streams

• Royalty/Streaming company Ecora reports profit before tax of $5.9m, with royalty and metal stream-related revenue of $59.6m ($61.9m 2023)
• Company reported net debt of $82m, up from $74.5m last year, and paid a total dividend over the year of 2.81c/share.
• Primary portfolio contribution over 2024 from Kestrel stream, seeing $41.4m vs $35.9m year prior.
• Voisey’s Bay contributed $6.2m ($5.6m 2023) and Mantos Blancos contributed $5.8m ($6.1m 2023)
• Subsequent to year end, Ecora acquired a stream over Moxico’s* Mimbula copper mine for US$50m.
• Going forward, Ecora expects to benefit from the Voisey’s Bay ramp up to boost Ecora’s attributable cobalt production by 60-90% on 2024.
• Moxico* expects 15-20kt of copper production in 2025, ramping up to near nameplate capacity of 56ktpa by mid-2026.
• Cash flow ‘expected to support meaningful deleveraging over the next 12-24 months.’
• Company highlights the DRC export ban lifting cobalt prices by 70%, set to benefit Ecora given their Voisey’s Bay cobalt exposure.
• Rainbow is targeting first production from Phalaborwa In 2027, whilst Capstone Copper’s Santo Domingo FID due 1Q26.

*An SP Angel analyst holds shares in Moxico Resources

Katoro Gold (KAT LN) 0.05p, Mkt Cap £1.0m – Expansion of Iva lithium project area in Ontario

• Katoro Gold reports that it has expanded its Iva lithium project area in Ontario from 6.4km² to 11.3km² extending the target area for prospective lithium-bearing pegmatites over a 5.5km trend.
• The announcement explains that the “number of known, historically mapped pegmatites and newly inferred pegmatites interpreted from LiDAR², on the property has doubled … [to] … More than 28”.
• Geological mapping shows a suite of “felsic intrusive rocks and metasedimentary gneisses … interpreted as the upper portion of a large intrusive body … [which may concentrate] … elements like lithium and potentially forming late-stage economic LCT-style … [lithium-caesium-tantalum] … pegmatite mineralisation”.
• Katoro Gold confirms that it “is currently in discussion with service providers, including reputable firms based in nearby Thunder Bay, to support the forthcoming exploration on the Company’s critical mineral portfolio. Contracts to complete mapping and geological sampling are expected to be awarded shortly and fieldwork expected to commence as early as end of April or mid-May depending on prevailing temperatures and snow melt”.
• Commenting on the project’s location “170 kilometres west along the Trans-Canada Highway from the City of Thunder Bay … [CEO, Patrick Cullen said that it is] … an excellent location to make a lithium discovery at an economic scale and grade”.
• He also said that the “geological setting is highly prospective in terms of the local intrusive types and structure, the numerous pegmatites mapped in the 1970s, and supported by elevated anomalous lithium and other elements from lake sediments reported in 2001”.

Conclusion: Expansion of the Iva lithium project area brings in additional potential exploration targets, now more that 28.  We await news when field exploration gets underway when weather conditions allow in late April/May.

Rockfire Resources (ROCK LN) 0.11p, Mkt Cap £4.6m – Additional drilling and metallurgical work expected from Plateau project as earn-in partner raises A$3m

• Rockfire Resources has highlighted an A$3m placement by Sunshine Metals which is earning a 75% interest in the company’s Plateau project in Queensland.
• Sunshine Metals plans to spend the additional funds on “accelerating drilling, metallurgical test work and mining studies on the shallow oxide gold Resources at Liontown and Plateau, and advanced targets at Tigertown and Coronation” where it is targeting “shallow (<50m), oxide gold resources for processing at potential, nearby toll treating mills during a time of high gold prices”.
• Currently, the Plateau project hosts an ‘Inferred’ resource of 49,000oz of gold at an average grade of 2g/t and the announcement says that around 1,000m of drilling is required to “advance the Resource classification” and upgrade metallurgical work.  “These activities are expected to commence in May 2025”.
• Welcoming Sunshine Metal’s plans, Rockfire Resources’ CEO, David Price, explained that there are “several processing plants under care and maintenance within a radius of 50km of Plateau” and said that shareholders could expect “news flow from this drilling as results come to hand, alongside news of the metallurgical test results”.

Savannah Resources* (SAV LN) 4.8p, Mkt Cap £103m – Phase 2 return good grades with six drill rigs on site

BUY – 18.1p

• The Company reports first assays from the Phase 2 drill programme at the Barroso Lithium Project in Portugal.
• The team completed 48 holes for ~4,800m so far with six drill rigs (3 DD and 3 RC) active on site at Pinheiro, Reservatorio and Grandao.
• Phase 2 drilling programme is budgeted for ~13,000m in 117 holes as part of the FS related work covering infill, geotechnical and metallurgical drilling as well as a series of step out holes.
• Assay results from 20 holes have been received to date (7 at Pinheiro, 10 at Reservatorio and 3 at Grandao).
• At Pinheiro, infill drilling returned thicker and higher grade mineralised intersections than originally modelled while step out holes showed mineralisation continued along strike to the north and south in both the Western and Eastern Pegmatites.
• Selected results include:
  • 21m @ 1.26% Li2O from 95m in hole 25PNRRC026
  • 26m @ 1.40% Li2O from 70m in hole 25PNRRC027
  • 29m @ 1.33% Li2O from 47m in hole 25PNRRC028
  • 24m @ 1.17% Li2O from 11m and 28m @ 1.21% Li2O from 38m in hole 25PNRRC030
• At Reservatorio, drilling confirmed good continuity of mineralisation at depth.
• Selected results include:
  • 20m @ 1.06% Li2O from 127m including 13m @ 1.27% Li2O in hole 25RESRC046
  • 33m @ 0.84% Li2O from 132m in hole 25RESRC047
  • 21m @ 1.10% Li2O from 68m in hole 25RESRC053
  • 23m @ 1.28% Li2O from 99m in hole 25RESRC054
• At Grandao, assay received so far confirmed mineralisation continuity with selected results including
  • 9m @ 1.38% Li₂O from 2m in hole 25GRARC136

Conclusion: The Company is actively progressing its Phase 2 drilling programme with nearly 40% of meters completed and six drill rigs operating on site. First assays demonstrate good continuity of mineralisation as the team is infill drilling the resource for maiden reserve and FS related work. In some areas, like Pinheiro, drilling returned thicker and higher grade intersections than previously modelled. Additionally, step out drilling point to further upside potential to the current resource. Results will be used to update the geological model and the final life of mine plan with FS to be released later CY25.

*SP Angel acts as Nomad and Broker to Savannah Resources

LSE Group Starmine awards for 2024 commodity forecasting:

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Precious Metals forecasting in LSEG Annual Starmine Award for Reuters Polls 2024

No.2 in Base Metals: SP Angel mining team awarded No 2. ranking for Base Metals forecasting in LSEG Annual Starmine Award for Reuters Polls 2024

Analysts

John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490

Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484

Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk – 0203 470 0474

Arthur Parish – Arthur.Parish@spangel.co.uk – 0203 470 0476

Sales

Richard Parlons –Richard.Parlons@spangel.co.uk – 0203 470 0472

Abigail Wayne – Abigail.Wayne@spangel.co.uk – 0203 470 0534

Rob Rees – Rob.Rees@spangel.co.uk – 0203 470 0535

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

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

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

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

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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.

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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