SP Angel Morning View -Today’s Market View, Thursday 31st August 2023

Iron ore rises on low inventories as gold and copper climb ahead of US inflation data

MiFID II exempt information – see disclaimer below

Sarn Helen Gold (Private, full EIS tax relief) – Exploring for Gold in Wales and Scotland

www.sarnhelengold.wales

• Holds five Crown Option Agreements covering over 1,200 square kilometres of ground, 4 in Wales, in Carmarthenshire, around the historic Dolaucothi Gold Mine – the only gold mine in Roman Britain, Pembrokeshire plus 1 in Peeblesshire, Scotland
• The team led Mike Armitage, ex SRK, is as Welsh as a cawl stew and considered indigenous to the land of Cymru.
• Analysis is ongoing on soil and stream sediments, panning, mapping and rock chip sampling along with 120m of core from three historic boreholes.
• Three potential drill targets have been identified near to the Dolaucothi mine:
  • Target 1. Soil samples with grades of up to 0.9g/t over a 500m strike length.
  • Target 2. Outcropping rock chips up to 6.16g/t.
  • Target 3. High grade soil samples >1g/t.

• 3D modelling of historic drilling suggests the mineralisation at Dolaucothi may be geologically similar and have similar structural controls to the gold mineralisation at Bendigo, Australia
• Independent expert analysis of gold grains collected from steams in Pembrokeshire indicate a local source.
• Rock chip samples collected in Peeblesshire have graded up to 7.95g/t Au.

• The Company is looking for £150,000-200,000 to fund field and laboratory-based work to end Q2 2024 aimed at identifying sufficient targets to justify a drilling programme in 2025.
• 2023 marks a century of Welsh gold being used by members of the British Royal Family to create their wedding rings. Welsh gold is expected to sell at a premium. No gold has however been mined in Wales this century.

Please reply to this email if you wish to know more about Sarn Helen Gold

*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.

Beowulf Mining* (BEM LN) – Financial results for year ending 30^th June show healthy cash position

Gem Diamonds (GEMD LN) – Fewer large diamonds from Letšeng and lower diamond prices put a dent in H1 results

Glencore (GLEN LN) – Almost 200 investment funds including Fidelity, Vanguard, Legal & General, HSBC, Abrdn and Invesco are seeking damages from Glencore over allegations that the Company made misleading statements in past share prospectus covering up corrupt activities,

Kodal Minerals* (KOD LN) – Kodal agrees further extension with Hainan Mining for full financing of Bougouni jv

Power Metal Resources* (POW LN) – Exploration progress update as Athabasca progress delayed by wildfires

Serabi Gold (SRB LN) – H1 financial results benefit from higher gold output and prices and lower costs

Thor Explorations (THX LN) – Drilling results from Douta gold project in Senegal

URU Metals* (URU LN) – Convertible extended to end 2023

Iron ore extends gains as traders focus on low inventories

• Iron ore prices have climbed to $116/t, their highest level since July 26^th.
• Chin’s PMI for August rose to 49.7 vs 49.3, as sentiment improves following a month of downbeat economic data readings.
• The easing of mortgage curbs in Guangzhou and Shenzhen is also providing some positive sentiment to iron ore prices.
• However, any major gains have been capped by Baosteel’s expectations of a cap on growth on steel output this year.
• Iron ore inventories across Chinese steel mills are sitting at 85mt, down 13.5% yoy.
• Iron ore Chinese port inventories are down 15.5% at 118.6mt yoy.

Gold rally continues as eyes turn to today’s US inflation data

• The bounce in gold prices has continued to hold around the $1,944/oz mark.
• Prices were supported yesterday by a beat in ADP jobs numbers, down from 371k last month to 177kt vs 195k expected.
• Core PCE prices fell to 3.7% for the quarter vs 3.8% expected.
• Focus turns to today’s PCE Price Index data, the Fed’s main inflation gauge, where prices are expected to rise 3.3% for July yoy vs 3% in June on base effects.
• Tomorrow’s non-farm payroll data will provide an additional catalyst to gold prices.
• Expect slowing inflation and a jobs beat to provide a major tailwind to gold prices, whilst any signs of sticky inflation and continued strength in labour markets will likely push gold lower.

Economics

China – Country Garden reported a record loss of CNY 51.5bn ($7bn) for H1/23 compared to a CNY 1.9bn profit recorded in H1/22.

• Sales increased during the period, although, the Company acknowledged had to cut prices to shift its stock of unsold properties.
• The Company is planning to raise HK$270m ($34m) in new equity representing ~1.3% of the enlarged share capital to pay some of its outstanding debt.
• Country Garden faces a potential default on its previously missed two interest payments to international bondholders unless payments are completed next week while also negotiates with creditors to delay repayment of a $350m local bond due later this week until 2026, the New York Times reports.

PBOC supporting the Yuan to maintain stability despite

• weakening exports
• lower inward investment
• substantial regional local government debt issues,
• collapsing property developers (Evergrande, Country Garden and others)
• defaults on unrealistic investment products
• deflation
• rising unemployment

While the CCP is able to pull many levers it does not appear willing or able to inject substantial funds into economic support as seen in previous crises.

Germany – Inflation proves sticker than expected supporting the case for another rate hike at the upcoming meeting in September.

• Latest consumer spending and employment data meanwhile reflect deteriorating economic situation amid high borrowing rates and rising cost of living.
• CPI (%mom): 0.4 v 0.5 July and 0.3 est.
• CPI (%yoy): 6.4 v 6.5 July and 6.3 est.
• Retail Sales (%mom): -0.8 v -0.8 June and 0.3 est.
• Unemployment Claims (‘000): 18 v -4 July and 10 est.
• German economic policy appears designed to drive their economy into recession

France – Inflation accelerated more than forecast in August driven by energy costs ahead of the September ECB meeting.

• Executive Board member Isabell Schnabel earlier acknowledged “stubbornly high” inflation but also highlighted weakening growth prospects that are seen as more dire than predicted in June.
• Schnabel comments saw odds of a rate hike in September pulling back making the upcoming meeting decision too close to call.
• CPI (%mom): 1.1 v 0.0 July and 1.0 est.
• CPI (%yoy): 5.7 v 5.1 July and 5.4 est.

Shrinkflation – Burger King are being sued because the size of their Whopper is too small – Caveat emptor!

Currencies

US$1.0907/eur vs 1.0872/eur yesterday. Yen 145.95/$ vs 146.34/$. SAr 18.692/$ vs 18.543/$. $1.271/gbp vs $1.264/gbp. 0.648/aud vs 0.647/aud. CNY 7.290/$ vs 7.292/$.  Dollar Index 103.23 vs 103.60 yesterday.

Commodity News

Precious metals:

Gold US$1,945/oz vs US$1,936/oz yesterday

Gold ETFs 89.8moz vs US$89.7moz yesterday

Platinum US$978/oz vs US$979/oz yesterday

Palladium US$1,232/oz vs US$1,242/oz yesterday

Silver US$24.51/oz vs US$24.59/oz yesterday

Rhodium US$4,100/oz vs US$4,100/oz yesterday

Base metals:

Copper US$ 8,442/t vs US$8,421/t yesterday

Aluminium US$ 2,215/t vs US$2,170/t yesterday

Nickel US$ 20,600/t vs US$20,600/t yesterday

Zinc US$ 2,429/t vs US$2,440/t yesterday

Lead US$ 2,186/t vs US$2,183/t yesterday

Tin US$ 25,600/t vs US$25,355/t yesterday

Energy:

Oil US$85.9/bbl vs US$85.8/bbl yesterday

• Crude oil prices edged higher in thin trading as the EIA reported a 10.6mb w/w US crude draw and 1.2mb build to distillate stocks, with refinery utilisation falling by 1.2% to 93.3%.
• European energy prices edged lower as EU natural gas storage levels rose 0.7% w/w to 92.3% full (vs 79.7% 5-Yr average), with both Germany and France each adding over 2.5TWh to lift overall storage to 1,049TWh.
• Petronas’ CEO said access to external financing was becoming more difficult due to financial institutions prioritising sustainable projects, forcing it to rethink its capital strategy and build its cash reserves for growth.
• Oil & gas equity markets also continue to be difficult as evidence by Criterium Energy terminating a proposed C$22m equity raise as the proposed pricing is not attractive to the existing shareholders.
• Orsted shares fell ~25% yesterday after announcing it expects up to a $2.3bn 3Q23 impairment on its US wind portfolio after assessing the impacts relating to the supply chain, lower tax credits and higher interest rates.

Natural Gas US$2.790/mmbtu vs US$2.668/mmbtu yesterday

Uranium UXC US$58.25/lb vs US$58.25/lb yesterday

Bulk:   

Iron ore 62% Fe spot (cfr Tianjin) US$114.9/t vs US$112.9/t

Chinese steel rebar 25mm US$533.1/t vs US$533.5/t

Thermal coal (1st year forward cif ARA) US$128.8/t vs US$128.8/t

Thermal coal swap Australia FOB US$158.0/t vs US$161.3/t

Coking coal swap Australia FOB US$260.0/t vs US$252.0/t

Other:  

Cobalt LME 3m US$33,420/t vs US$33,420/t

NdPr Rare Earth Oxide (China) US$68,590/t vs US$68,570/t

Lithium carbonate 99% (China) US$26,819/t vs US$27,085/t

China Spodumene Li2O 6%min CIF US$3,010/t vs US$3,010/t

Ferro-Manganese European Mn78% min US$1,053/t vs US$1,049/t

China Tungsten APT 88.5% FOB US$310/mtu vs US$310/mtu

China Graphite Flake -194 FOB US$655/t vs US$667/t

Europe Vanadium Pentoxide 98% 7.3/lb vs US$7.4/lb

Europe Ferro-Vanadium 80% 31.25/kg vs US$31.55/kg

China Ilmenite Concentrate TiO2 US$309/t vs US$309/t

Spot CO2 Emissions EUA Price US$91.2/t vs US$92.1/t

Brazil Potash CFR Granular Spot US$355.0/t vs US$355.0/t

Battery News

Jaguar to build large-scale storage with second-life EV batteries

• Jaguar Land Rover and Wykes Engineering are building a 2.5MWh battery energy storage system with EV batteries taken from Jaguar I-PACE cars.
• The large-scale system will store wind and solar at an undisclosed location in the United Kingdom.
• “The batteries supplied have been taken from prototype and engineering test vehicles, and JLR aims to supply enough batteries to store a total of 7.5 MWh of energy – enough to power 750 homes for a day – by the end of 2023,” the company said.
• The I-PACE battery has a storage capacity of 90.2kWh. It weighs 610kg and measures 2,280mm x 1474mm x 300mm and the battery has retained 70% to 80% of its original capacity, according to Jaguar Land Rover.
• The company emphasised that no extra manufacturing processes or battery module removal is necessary.

Legacy automakers begin discontinuation ICE models to prepare for more EVs

• Ford has discontinued three internal combustion engine models – the Escape, Edge and Transit Connect – to make room for new EVs in its vehicle line-up.
• GM, said in March said that it would discontinue the Chevy Camaro gasoline-powered car at the end of the 2024 model year.
• Stellantis announced in March 2023 it would discontinue its classic gas-powered V-8 muscle cars, the Dodge Challenger and Charger, as well as its Chrysler 300 big sedan by the end of the year.

Company News

Beowulf Mining* (BEM LN) 1.35p, Mkt Cap £16m – Financial results for year ending 30^th June show healthy cash position

• Beowulf provides their unaudited financial results for the year ending 30^th June 2023.
• The Company raised £6.4m gross in February for the financing of the development of Kallak North, PFS workstreams and environmental permit applications.
• Funds are also being used to repay bridge loan financing and advancing the Grafintec and Vardar Minerals projects.
• Following the repayment of the c.£2m bridging loan principal and interest, Beowulf held £2.855m in cash as of the reporting period.
• Operationally, the Company continues to engage with stakeholders in Sweden to progress the Kallak project, reviewing transportation and logistical options and completing key environmental baseline studies.
• In Finland, Beowulf’s Grafintec delivered the PFS for the Graphite Anode Materials Plant, highlights include;
  • Post-tax NPV8 of $242m
  • Post-tax IRR of 39%
  • CAPEX of $117m
  • 2.4 year payback from commencement of operations.
  • Initial 10-year operating period with the potential for a lease extension.
  • Using a realised CSPG of $9,000/t..
  • Annual EBITDA of $79m.
• In Kosovo, Beowulf invested £250k into the Vardar project, increasing ownership to 61%, enabling low-cost field work in Q2 to support further exploration work.
• Kurt Budge stepped down in May and has been replaced by Ed Bowie this month.

*SP Angel acts as Nomad and Broker to Beowulf Mining

Gem Diamonds (GEMD LN) 17.05p, Mkt Cap £25m – Fewer large diamonds from Letšeng and lower diamond prices put a dent in H1 results

• Gem Diamonds reports a reduction in year-on-year revenues, EBITDA and profits during the six months to 30^th June 2023 citing a downturn in the global rough diamond market and lower volumes of processed ore in response to electricity supply disruption to its Letšeng mine in Lesotho.
• Revenues declined to US$71.8m (H1 2022 – US$100.0m) as output was reduced to 50,601 carats (H1 2022 – 55,157 carats) and the average price received fell to US$1,373/carat (H1 2022 – US$1,745/carat) as fewer diamonds larger than 10.8 carats were recovered at a time of “a downturn in the rough diamond market”.
• The company says that it recovered 318 diamonds larger than 10 carats (H1 2022 – 374 diamonds) and that the “highest price achieved was US$282 889 per carat for a 6.63 carat pink diamond, this being the third-highest price achieved to date for a Letšeng diamond. 12 diamonds sold for more than US$1.0 million each, generating revenue of US$21.0 million (H1 2022: 15 diamonds sold for more than US$1.0 million each, generating revenue of US$25.8 million)”.
• Underlying EBITDA fell to US$8.4m (H1 2022- US$20.9m) while profit at the pre-tax level was US$4.0m )H1 2022 – US$13.3m) and US$1.5m after tax (H1 2022 – US$8.3m).
• The company reports cash on hand at 30^th June of US$7.3m of which US$6.2m is attributable to Gem Diamonds “resulting in a net debt position of US$2.0 million (31 December 2022: net cash of US$3.3 million)”.
• Chief Executive, Clifford Elphick, said that the “downturn in the rough diamond market together with increased grid electricity interruptions which increased operating costs, negatively impacted our financial results for the Period”.
• He confirmed that Gem Diamonds’ “focus remains on stabilising our plants to improve large diamond recoveries and to critically review all operational and capital expenditure”.

Glencore (GLEN LN) 418p, Mkt cap £52bn – Almost 200 investment funds including Fidelity, Vanguard, Legal & General, HSBC, Abrdn and Invesco are seeking damages from Glencore over allegations that the Company made misleading statements in past share prospectus covering up corrupt activities, FT writes.

• Claimants are estimated to hold ~£3.7bn in the Company accounting for ~7% of outstanding shares.
• Allegations relate to false statements and omissions in Glencore’s 2011 IPO prospectus and 2013 Xstrata merger prospectus.
• Investors’ claims were filed in the High Court between October of last year and this spring saying that Glencore engaged in “widespread bribery, corruption and fraud” between 2006 and 2019.
• The investors’ claims were made public last year, but details of the case as well as the names of some of the growing number of investors have not been made public previously, FT reports.
• The Company agreed to plead guilty of a series of bribery and market manipulation charges last year paying $1bn in fines and forfeitures in the US, £280m in the UK and $40m in Brazil.

Kodal Minerals* (KOD LN) 0.50p, Mkt Cap £85m – Kodal agrees further extension with Hainan Mining for full financing of Bougouni jv

(Kodal / Hainan jv deal long-stop date to 31 August 2023)

• Kodal Minerals has agreed a further extension on its agreed jv with Hainan Mining for the full financing of the Bougouni lithium project in Mali.
• The long-stop date has now been extended to 30 September.
• Kodal recently reported the receipt of a $3.5m prepayment on the subscription agreement from Hainan indicating their commitment to complete the deal.
• Management have now completed most of the restructuring of the Company’s Mali subsidiary entities which hold the lithium interests.
• Kodal has completed full registration of the new mining company, Le Mines de Lithium de Bougouni SA, a 100% subsidiary of Kodal in the UK.
• In addition, the Company is finalising the transfer of the shareholding of Future Minerals SARL to also be 100% owned by KMUK.
  • “Kodal is continuing to work with the Mali Government to finalise the remaining compliance items that will complete the conditions precedent for the Funding Transaction.
  • Hainan and Xinmao have confirmed that all approvals obtained from the Chinese Government remain valid and are ready to complete the transaction as and when the outstanding conditions precedent are satisfied.”
• The Kodal team met with the new Minister of Mines for Mali, Professor Amadou Keita, in Bamako in August.
  • “The Minister of Mines acknowledged the progress and the investment the partners will be making in Mali and continued to express the Government’s support for the project and all assistance that the Ministry can provide.”
• Leo Lithium, which holds the  Goulamina Lithium Project next to Bougouni, remains suspended on the ASX having halted on 18 July due to “ongoing incomplete discussions with the government of Mali on correspondence it has received”.
  • “The Government of Mali has the right to a 10% free carry interest in the Goulamina Lithium Project through a prescribed process. Initial discussions have commenced, and this process remains at an early stage with no defined timetable. The Government continues to work towards the general elections scheduled to occur throughout 2023 and conclude with Presidential elections in February 2024.“
• Leo Lithium produced its first DSO spodumene on 20 June with support from Ganfeng.
  • “discussions are also advancing well with the Port of San Pedro in Côte d’Ivoire to act as an additional port option to the Port of Abidjan in Côte d’Ivoire.”
• Kodal also expects to receive £1.6m from the completion of the sale of Bougouni West to its near neighbour, Leo Lithium.

Conclusion: We look forward to Kodal’s completion of its restructuring and the receipt of the jv funds from Hainan Mining.

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

Power Metal Resources* (POW LN) 0.71p, Mkt cap £15m – Exploration progress update as Athabasca progress delayed by wildfires

• Power Metal provides an exploration and development update on several projects.
• At the North Wind Lithium Project, the Company has taken 389 soil geochemical samples, which are soon to be delivered to labs for Lithium-Caesium-Tantalum testing.
• The Team notes five pegmatite samples were collected at North Wind.
• At the Tati Gold Project, where focus is centred around the historic Cherished Hope mine, 280 individual samples have been taken over two grids.
• The two grids were differentiated by one high-resolution 2km northwest of the Cherished Hope Gold Mine, targeting a previous sample of 2.15g/t Au soil sample.
• The second grid is focused on a southwestern extension of the historic mine, where samples returned highs of .84g/t Au.
• Power Metal highlights inbound interest for a small-scale mining operation at the Cherished Hope project.
• At the Athabasc Uranium Project, the Power Team has begun field work at Tait Hill and expects to begin exploration at Soaring Bay and Perch River imminently.
• Adjustment has been made to several projects owing to the recent wildfires, and will now be completed later into the autumn and winter seasons.

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

Serabi Gold (SRB LN) 24.5p, Mkt Cap £17m – H1 financial results benefit from higher gold output and prices and lower costs

• Serabi Gold reports an after-tax profit of US$5.0m for the six months ended 30th June 2023 (H1 2022 – US$2.1m and a closing cash balance of US$13.3m (31^st December 2022 – US$7.2m).
• The result reflects the production of 16,524oz of gold (H1 2022 – 15,480 oz) at a cash cost of US$1,258/oz (H1 2022 – US$1,415/oz) and All-In Sustaining Costs of US$1,519 per ounce (H1 2022 : US$1,716 per ounce) which represents “an 11.5% improvement compared to the same period of 2022”.
• The financial results also benefitted from an improvement in the received gold price of US$1,940/oz (H1 2022 – US$1,869/oz).
• Chairman, Michael Lynch-Bell, confirmed that Serabi Gold remains on course to achieve its full year guidance of 33,500 to 35,000 ounces of gold production and said that “Operationally and financially it is pleasing to see the Company in such a strong position after a very encouraging quarter during which we have consistently improved our net cash position”.
• The company says that to “achieve production guidance for the rest of the year and in anticipation of increasing mine output from Coringa in 2024, the production plan anticipates further mine development activities.   At Coringa we intersected the veins on the next level at 260mRL shortly before the end of August and this will present further development and production options”.
• At Palito, Serabi Gold is “developing the G3 structure which in the past was a backbone of production. Re-establishing G3 as an additional production area is planned to provide further flexibility within the Palto orebody”.
• Mr. Lynch-Bell acknowledged that Serabi Gold still has “challenges ahead as we continue to grow the production base with the development of Coringa … [but he expressed confidence that] … the solutions being pursued will overcome these”.
• Referring to the copper exploration alliance with Vale following Serabi Gold’s identification of the Matilda copper porphyry, Serabi Gold explains that Vale will fund an initial US$5m of exploration to be managed by Serabi.
• The company has previously said that “Whilst the priority for Vale is to identify potential copper ore-bodies, the Phase 1 programme covers a number of Serabi’s gold targets as well and we will benefit directly from the exploration activities that are planned to be conducted over these areas”.

Conclusion: Improved H1 gold output, lower costs and higher gold prices have all contributed to a more than doubling of H1 profit to US$5.0m.

*An SP Angel analyst has visited the Serabi’s gold mining operations in Brazil

Thor Explorations (THX LN) 18.75p, Mkt cap £123m – Drilling results from Douta gold project in Senegal

• Thor Explorations has released drilling results from the 1.78m oz Makosa prospect and the Sambara prospect, which lies to the NE of Makosa, in its 70%-owned Douta project area in eastern Senegal.
• The announcement covers a programme of reverse-circulation (RC) infill drilling, which started in April 2023, targeting upgrading of inferred resources and diamond drilling to recover samples for metallurgical testing at Makosa as well as exploration at Sambara.
• Current mineral resources at Makosa comprise 20.2m tonnes at an average grade of 1.3g/t gold (~875,000oz) classed as ‘Indicated’ with a further 24.1mt at an average grade of 1.2g/t (~909,000oz) of ‘Inferred’ resources.
• Among the results from the infill drilling at Makosa, which included “the discovery of a new prospect, Makosa East”, highlighted in today’s announcement are:
  • An intersection of 3m at an average grade of 23.35g/t gold from a depth of 78m in hole DTRC-807; and
  • An intersection of 8m at an average grade of 8.08g/t gold from a depth of 36m in hole DTRC-0021; and
  • An intersection of 13m at an average grade of 4.59g/t gold from a depth of 96m in hole DTRC-848; and
  • An intersection of 9m at an average grade of 4.33g/t gold from a depth of 93m in hole DTRC-865; and
  • An intersection of 18m at an average grade of 1.82g/t gold from a depth of 25m in hole DTRC-842; and
  • An intersection of 16m at an average grade of 2.03g/t gold from surface in hole DTRC-0029; and
  • An intersection of 10m at an average grade of 3.00g/t gold from a depth of 45m in hole DTRC-844; and
  • An intersection of 6m at an average grade of 4.94g/t gold from a depth of 50m in hole DTRC-812
• The company says that the results “demonstrate the continuity of gold mineralisation both along strike and down dip … [and says that as well as providing the opportunity to upgrade the resource classification, the higher grade intersections] … could potentially have a positive effect in locally elevating the average resource grade”.
• Describing the geology, Thor Explorations says that at “Makosa, zones of gold mineralisation are developed either within a sheared gabbro intrusive or within a steep north-westerly dipping sequence of meta-sedimentary rocks that are in close proximity to the gabbro. Higher grade zones or shoots are suspected to occur along east-west oriented structures that cut across the main north-east trend of the mineralisation”.
• The exploration at Sambara RC holes were drilled “to test both the extremities of the Sambara deposit and a soil geochemical anomaly that was located in the north-western part of the exploration licence”.
• Confirming that it intends to continue drilling along strike at Sambara during the remainder of 2023, the company says that the best results it has obtained so far in the programme are “5m grading 1.35g/tAu … [from 42m depth] … in drillhole DTRC726 and 4m grading 1.43g/tAu … [from 16m depth]… in DTRC729”.
• Welcoming what he described as “further encouraging drilling results” from the Douta project, President & CEO, Segun Lawson, said that “Once all the drilling results are in, we look forward to updating our Mineral Resource Estimate to form the basis of a preliminary feasibility study”.
• He also said that “We are also pleased to add the new Makosa East prospect to our development plan. In the coming year we plan to maintain focus on project development in Senegal to meet our objective of bringing the Company’s second gold mine into production”.

Conclusion: Infill drilling at Makosa has identified additional mineralisation at Makosa East and provided the drilling density for a future uprating of existing ‘Inferred’ resources.  We look forward to an updated mineral resources estimate and, in due course, to a preliminary feasibility study for Douta.

URU Metals* (URU LN) 100p, Mkt cap £1.66m – Convertible extended to end 2023

(URU Metals holds a 73.81% interest in Zeb Nickel Corp. URU Metals acts as a technical advisor to the project)

• URU report the extension of their Boothbay Absolute Return Strategies LP convertible till end 2023 from 30 August.
• Boothbay has the right to convert funds due under the loan note at £0.85p/s.
• As at 31 August 2023 the total amount advanced by Boothbay was US$500,000.
• Convertible terms: If Boothbay is not repaid then their convertible loan note convert at or prior to the Maturity Date:
  • (i) at a price that is a 35% discount to the VWAP/s in the 5 trading days prior to the noteholder serving a conversion notice;
  • (ii) on completion of an equity fundraising by the Company, at a price that is a 35 per cent. discount to the price per share paid by investors on such equity fundraising;
  • (iii) on a share sale giving control of the Company a 35% discount to the price or
  • (iv) if there is no conversion notice served, equity fundraising or share sale prior to the Maturity Date, at a 35% discount to the VWAP/s in the 5 trading days prior to the maturity date..
• URU holds a 75% interest in Zeb Nickel, an owner of the Zebediela Nickel Project located in the Bushveld Complex in South Africa, a world class PGE-Ni district.
• The team is focused on confirmatory and exploration drilling at the project to potentially revise the historical resource (485mt at 0.25% Ni in Indicated and 1,115mt at 0.25% Ni in Inferred mineral resource) and revise the PEA..

*SP Angel acts as Nomad and Broker to URU Metals

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

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

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

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.

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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 of less than 15%