SP Angel Morning View -Today’s Market View, thursday 5th June 2025

Copper holds gains as supply disruptions rise in DRC and Canada

MiFID II exempt information – see disclaimer below

Ariana Resources (AAU LN) – Tavsan commissioning underway with initial gold-pour expected later this summer

Asiamet Resources (ARS LN) – Progress on BKM Stage 1 financing

Challenger Gold (CEL AU) – Placing for toll treating CAPEX in Argentina

East Star Resources (EST LN) – Exploration financing

FireFly Metals (FFM CN) – Capital raise to support further exploration and mining studies

Great Southern Copper (GSCU LN) – Geophysical campaign to help define drill targets at Cerro Negro

IperionX (IPX AU) – Receipt of US DoD Contract for titanium fasteners

Jubilee Metals Group (JLP LN) – Emphasis switching to Zambian copper business

Lindian Resources (LIN AU) – Kangankunde Project Update

Marimaca (FFM CN) – Equity placing to progress copper project

Mkango Resources* (MKA LN) – BUY– Songwe Hill recognised as strategic asset by the EC

Tungsten West (TUN LN) – EC recognises Hemerdon as a strategic project

Copper ($9,660/t) holds gains as supply disruptions rise in DRC and Canada

• Copper prices have held their higher ground hovering around $9,660/t.
• The metal has been supported by reignited concerns over Trump’s section 232, which is expected to hike tariffs on copper imports.
• Additionally, supply disruptions in the DRC, with Ivanhoe’s operations reduced following seismic activity, has hit already tight markets.
• Furthermore, Teck has reported production setbacks in Chile.
• LME stockpiles are down 75% this year to 66.3kt.
• Futures spreads flipped into backwardation, suggesting traders are seeing increased supply pressure in the physical market.

Gold ($3,373/oz) edges higher as US Treasury yields slide on weaker labour data

• Gold prices have continued to climb, sitting at recent highs over $3,370/oz.
• The metal is enjoying another attempt on all time highs, having hit $3,500/oz this year.
• A weak dollar is supporting buying, whilst US Treasury yields began to slide yesterday.
• The 10 year fell below 4.4% for the first time since early May, as ADP numbers spooked the market over the strength of the US labour market.
• ADP employment data recorded 37k additions vs 111k expected. The previous number was also revised lower.
• Focus now shifts to Friday’s NFP reading, which will be closely watched for signs of nearer rate cuts this year.

Automakers warn over China’s rare earth curbs

• Mercedes and BMW have raised concerns over rare earth supply as Beijing reportedly blocks output.
• Bloomberg reports they are discussing stockpiling certain items in preparation.
• Ford has also raised concerns over timings for accessing several Chinese products.
• Ford reportedly idled a factory in Chicago last month over a rare earths shortage.

European Commission selects 13 Strategic Projects in third countries to secure access to raw materials and to support local value creation

• https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1419
• The Strategic Projects will diversify the EU’s sources of supply and increase economic security while boosting local value creation in third countries.
• The list includes:

• • Pobuzhzhya’s Development LLC, Ukraine – Balakhivka Graphite
  • Eramet (Société Le Nickel, controlled by the French government), New Caledonia – CaledoNi
  • GreenRoc Strategic Materials Plc (GROC LN), Greenland – Graphite
  • Magneto Investments, Canada – Integrated Dumont Nickel Project
  • Rio Tinto (Rio Sava Exploration doo), Serbia – Jadar Lithiun
  • Kobaloni Energy, Zambia – Kobaloni Energy Zambia
  • EVION GROUP, Australia – Maniry Graphite Mine Project
  • Nussir ASA, Norway – Nussir
  • Jervois Brasil Metalurgia Ltda., Brazil – Nickel and Cobalt Refinery Restart Project
  • Sarytogan Graphite, Australia – Sarytogan Graphite Project
  • Mkango Resources* (MKA LN), Malawi – Songwe Hill Rare Earths
  • Tungsten West (TNU LN), UK – Hemerdon Mine
  • Frontier Rare Earths, South Africa – Zandkopsdrift (REEs)

• The initiative complements the list of 47 Strategic Projects in the EU, adopted on 25 March 2025.
• https://single-market-economy.ec.europa.eu/sectors/raw-materials/areas-specific-interest/critical-raw-materials/strategic-projects-under-crma/selected-projects_en
• While the European Commission does not appear to be offering any direct finance to the projects on the list the Commission suggest selected projects will benefit from:

• • “coordinated support by the Commission, Member States and financial institutions in the form of facilitating access to finance and contacts with relevant off-takers.”

• The 13 projects are estimated to need Capex of €5.5bn to get started.

Conclusion: The strategic project list focusses on critical raw materials for EVs and on materials where China has effective control of the market.

The focus and diversification of graphite production looks good. But for nickel the focus should be on the cost-effective production of nickel oxides.

We are surprised to see Jadar in the list due to large-scale local opposition within Serbia.

While there are lithium mines and project all over the world, China controls >70% the processing into Lithium hydroxide and carbonate.

*SP Angel acts for Mkango Resources

Economics

US – The landmark bill that President Turmp is urging Congress to approve will add $2.4tn to the US debt over the next decade.

• The Congressional Budget Office reported the estimate yesterday, a day after Elon Musk criticised the bill calling on legislators to kill it.
• The CBO estimates that the bill would reduce tax revenues by $3.75tn through to 2034 while cutting spending by $1.3tn.
• Trump is aiming to sign the bill into law by July 4 if passed by the Congress.

Average US effective tariffs are now standing at 13.5%, the highest level since WWII.

• Bloomberg estimates that the cumulative impact could cut US GDP growth by 1.6% while adding 1pp to inflation rates.
• Little progress seen in trade negotiations with a 90d pause for higher reciprocal tariffs due to expire July 9.
• S&P 500 and Nasdaq futures are little changed this morning 0.0% and 0.3%, respectively.

NFPs are due this Friday with estimates for 126k, down on 177k in April.

China

• Caixin Services PMI (May/Apr/Est):
• Caixin Composite PMI (May/Apr/Est): 49.6/51.1/NA

Japan – 30y bond auction saw the weakest demand since 2023 with a bid to cover ratio of 2.9 vs 12m average of 3.4.

UK – Property market reported its busiest month in over three years in May, according to Rightmove data.

• Nationwide sales were up 6%yoy while London registered only a 1% increase.
• Rightmove reported lower borrowing costs driving demand with an average five year fixed mortgage rate at 4.61%, down from a peak of over 6% in 2023.
• The increase came despite an increase in stamp duty charges that came into effect earlier in April.

The Office for National Statistics said that April inflation was overstated by 0.1pp in April due to an error in tax figures provided by a government department.

• In particular, the error came from “extract of the licensed vehicles data provided… by the Department for Transport, used to calculate the April 2025 Vehicle Excise Duty component of consumer prices inflation”.
• Annual inflation should have been 3.4%, rather than 3.5% reported earlier.
• That is still significantly up on 2.6% reported in March and over 3.3% forecast by markets.

Trump Travel Ban

• The executive order effectively excludes travel for nationals from countries where vetting and screening information is so deficient as to warrant suspension of admissions.
• Travel from the following countries to and from the US is therefore banned under this order:
• Most are failed states: Afghanistan, Myanmar, Chad, Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen.
• A partial travel ban also restricts travel to and from the US from: Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan and Venezuela.
• Problems with the issue of passports, screening and vetting nationals is the reason for the ban on: Afghanistan, Eritrea, Somalia, Sudan, Yemen, Libya and Venezuela.,
• High rate of immigrants overstaying their visas in the US is the reason for: Myanmar, Chad, RoC, Equatorial Guinea, Eritrea, Haiti, Burundi, Laos, Sierra Leone, Togo and Turkmenistan.

 Currencies

US$1.1423/eur vs 1.1393/eur previous. Yen 143.13/$ vs 143.82/$. SAr 17.813/$ vs 17.823/$. $1.357/gbp vs $1.354/gbp. 0.651/aud vs 0.647/aud. CNY 7.182/$ vs 7.187/$

Dollar Index 99.12 vs 99.12

Precious metals:         

Gold US$3,373/oz vs US$3,362/oz previous

Gold ETFs 88.5moz vs 88.5moz previous

Platinum US$1,108/oz vs US$1,085/oz previous

Palladium US$1,007/oz vs US$1,007/oz previous

Silver US$34.6/oz vs US$34.5/oz previous

Rhodium US$5,425/oz vs US$5,350/oz previous

Base metals:   

Copper US$9,658/t vs US$9,675/t previous

Aluminium US$2,476/t vs US$2,488/t previous

Nickel US$15,430/t vs US$15,525/t previous

Zinc US$2,696/t vs US$2,729/t previous

Lead US$1,979/t vs US$1,988/t previous

Tin US$31,925/t vs US$32,060/t previous

Energy:           

Oil US$65.1/bbl vs US$65.6/bbl previous

• Crude oil prices edged lower as the EIA estimated a w/w US inventory draw of 4.3mb to crude, offset by builds of 5.2mb to gasoline and 4.2mb to diesel stocks, as refinery utilisation rose 1.2% w/w to 93.4%.
• European energy prices are stable as weak LNG demand in China enabled EU natural gas storage levels to rise 2.7% w/w to 49.6% full (vs 60.4% 5-Yr average) with aggregate inventory at 562TWh.
• The IEA’s new World Energy Investment publication forecasts that global energy investment is set to increase in 2025 to a record $3.3tn, with 2/3 being invested in clean energy technologies – renewables, nuclear, grids, storage, low-emissions fuels, efficiency and electrification – and 1/3 spent on oil, natural gas and coal. The IEA expects overall upstream oil and gas investment for 2025 to be down 4% y/y to $570bn.
• Shell has taken FID on its Aphrodite gas project offshore Trinidad and Tobago, which is expected to produce first gas in 2027 and have a peak production of over 100mmcf/d via a new single sub-sea tieback to existing infrastructure in the Barracuda subsea network that feeds into the Atlantic LNG (ALNG) plant.

Natural Gas €36.2/MWh vs €35.7/MWh previous

Uranium Futures $71.0/lb vs $71.7/lb previous

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$95.5/t vs US$95.8/t

Chinese steel rebar 25mm US$466.9/t vs US$467.2/t

HCC FOB Australia US$186.0/t vs US$183.0/t

Thermal coal swap Australia FOB US$107.5/t vs US$106.5/t

Other:  

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

NdPr Rare Earth Oxide (China) US$60,985/t vs US$60,944/t

Lithium carbonate 99% (China) US$8,396/t vs US$8,390/t

China Spodumene Li2O 6%min CIF US$610/t vs US$610/t

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

China Tungsten APT 88.5% FOB US$408/mtu vs US$408/mtu

China Graphite Flake -194 FOB US$420/t vs US$420/t

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

Europe Ferro-Vanadium 80% US$24.8/kg vs US$24.8/kg

China Ilmenite Concentrate TiO2 US$361/t vs US$361/t

Global Rutile Spot Concentrate 95% TiO2 US$1,465/t vs US$1,465/t

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

Brazil Potash CFR Granular Spot US$365.0/t vs US$365.0/t

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

China Gallium 99.99% US$395.0/kg vs US$395.0/kg

Battery News

Car carrier sailing from China carrying EVs catches fire in Pacific Ocean

• A car carrier carrying 3,000 vehicles including 800 EVs caught fire of the coast of Alaska.
• The Morning Midas was evacuated after the crew were unable to bring the fire under control.
• The cause of the fire has yet to be determined, but according to reports, the first signs of smoke were coming from the loading deck.
• Fires on car carriers and containerships from lithium ion batteries are growing concern to the industry due to the difficulty in bringing them under control.

Tesla sales continue to plummet in both Europe and China

• Tesla saw a decline in sales for the fifth consecutive month in Europe, as the automaker continues to face the challenges of an outdated model line up and consumer consensus towards CEO Elon Musk.

• • Sales in Germany fell by more than 33% in May, the German road traffic agency KBA said on Wednesday, even though sales of fully-electric cars rose 44.9%.
  • In the UK, Europe’s biggest EV market, Tesla’s sales fell more than 45% in May.
  • In Italy, Tesla sales fell 20% in May, while industry-wide EV sales rose 40.8%.

• The automaker could see a boost to sales in June as the new version of the Model Y hits the market – in Norway, where the new model is already on sale, there has already been a slight uptick in sales.
• Tesla’s sales in China are in their eighth consecutive month of decline as the country continues to face a deepening price war.
• Deliveries of China-made Model 3 and Model Y vehicles, including both domestic sales and exports to Europe and other markets, fell 15% in May yoy to 61,662 vehicles, after a 6% fall in April, data from the China Passenger Car Association showed.

Company News

Ariana Resources (AAU LN) 1.18p, Mkt Cap £21m – Tavsan commissioning underway with initial gold-pour expected later this summer

• Ariana Resources reports the start of the ‘cold commissioning’ phase of its’ 23.5% owned Tavsan heap-leach gold project in western Turkey.
• The company expects to complete the cold-commissioning “in stages through June 2025, following recent connection to grid power … [and the] … Tavsan processing plant is expected to be fully operational from July, with gold production from the heap-leach underway”.

• According to the company’s website, Tavsan hosts a ‘Measured, Indicated & Inferred’ JORC (2012) resource of 0.3moz of gold and 1.1moz of silver in 7.65mt at an average grade of 1.26g/t gold and 4.49g/t silver

• Today’s announcement confirms that a programme of resource and exploratory drilling is continuing with “3,700m of an up to 15,000m programme … [to test] … the potential for increases in the life of mine”.
• Additional developments at Tavsan include the recent approval of a 2,555kW solar power project which is currently subject to “final planning and installation of which will commence immediately”.
• Managing Director, Dr. Kerim Sener, applauded the “monumental effort from the Zenit … [mine operating] … team and its contractors” at Tavsan.
• He explained that the recent connection of grid power “has now enabled the commissioning of the processing plant to commence … [and that] … Work on the heap-leach pads, which had been impeded due to inclement weather conditions, has accelerated rapidly since the onset of warmer and somewhat drier conditions from April and is currently on track for completion later in June”.
• Dr. Sener pointed out that Tavsan “will be our first heap-leach operation in Türkiye, which, by operating in parallel with the Kiziltepe CIL processing plant, provides Zenit with a large degree of operational flexibility … [with] … about a year’s worth of ore production ready for loading on the heap-leach pads at grades ranging from 1.2 to 0.7 g/t Au”.

Conclusion: Tavsan’s commissioning is now underway with an initial gold pour expected later this summer.

Asiamet Resources (ARS LN) – 0.9p, mkt cap £25m – Progress on BKM Stage 1 financing

• Asiamet Resources reports that, following completion of the optimised feasibility study for the stage1 development of its BKM copper project in Kalimantan, it has opened a data room to potential project finance lenders.
• Describing that this “marks the start of project finance due diligence … [Asiamet makes clear that it is] … distinct from the Company’s ongoing offtake discussions and any future strategic initiatives”.
• CEO, Darryl McClelland, commented that the start “of formal lender due diligence is a major milestone in the development of the BKM Copper Project. With both the OFS and ITE review now complete, we are well positioned to engage meaningfully with our selected group of project finance lenders”.
• The recently completed optimised feasibility study describes a Stage 1 project delivering ~10,000tpa of copper cathode from the processing of a total of 28.5mt of ore over 12.8 years.
• Initial capital investment of US$178m and an average LOM operating cash cost of US$1.79/lb of copper production are expected to generate an after-tax NPV8% of US$122.4m and IRR of 17.7% with a 4.5-year payback.
• The study uses a long-term copper price of US$4.30/lb (~US$9,500/t which is in line with current prices) with a cathode premium of US$40/t.
• In a recent presentation www.asiametresources.com/wp-content/uploads/2025/05/250519-Asiamet-Optimised-Feasibility-Study-Presentation-May-2025.pdf Asiamet Resources described the improvements delivered by the optimised development plan compared to the original 2023 study including:

• • Mine life increased to 12.8 years from 9.2 years
  • Capital cost reduced to US$178.4m compared to US$235.4m
  • Cash cost reduced to US$1.79/lb (previously US$1.91/lb)
  • Reduced LOM mining volumes of 48.5mt at an overall waste:ore ratio of 0.77:1 (previously 90.9mt at an overall ratio of 1.37:1).

• Mr. Mclelland confirms that “Asiamet is committed to progressing towards a final investment decision”.

Conclusion: The opening of a data room on the BKM project starts the project financing process towards a formal investment decision.

Challenger Gold (CEL AU) A$0.1, Mkt cap C$163m – Placing for toll treating CAPEX in Argentina

• Challenger has raised A$34.5m via a placing at a 17% discount to last close.
• The fundraise involved institutions including Helikon and L1 Capital.
• Funds will support CEL ‘through to first cash flow from the mill-tolling operation’ at the Hualilan Gold Project in Argentina.
• A$16m will be used for toll milling capex, whilst A$7.5m will be used for Hualilan drilling and feasibility study.
• A$9.2m in working capital.
• Funds will also be used to boost drilling at Hualian to develop a standalone mine, with a LOM plan due 1Q26.
• Production is expected later this year.

East Star Resources (EST LN) 1. 25p, Mkt Cap £5.3m – Exploration financing

• East Star Resources, reports that ahead of the planned mobilisation of a rig next week to drill the Rulikha, Talovskoye and Verkhuba projects, it “is proposing to raise £250,000 via a subscription … for 19,230,769 new Ordinary shares … at a price of 1.3 pence”.
• In addition, East Star Resources “also intends to conduct a retail offer … to existing shareholders for up to a further £200,000 at 1.3 pence per share”.
• The company explains that the additional financial resources “provide cost-effective optionality to immediately expand the current drilling programme at Rulikha, Talovskoye and Verkhuba, subject to drill results from each target”.

Conclusion: Additional finance provides the flexibility to expand the forthcoming drilling programme in Kazakhstan if initial results deliver sufficient encouragement.

FireFly Metals (FFM CN) C$0.96, Mkt cap C$516m – Capital raise to support further exploration and mining studies

• Firefly Metals is raising C$25.8m in Canada and C$41.2m in Australia.
• The bought deal will be purchased at C$0.86, a 10% discount to yesterday’s close.
• The Company is developing the Green Bay Copper-Gold Project in Newfoundland, which includes the Ming underground mine and the Little Deer project.
• Funds will be used for underground development, resource extension and infill drilling, alongside regional and near mine exploration.
• The resource holds:

• • 24.4mt at 1.7% Cu M&I
  • 34.5mt at 1.7% Cu Inferred
• Firefly expects to release an updated MRE in 2H25, with engineering studies underway.

Great Southern Copper (GSCU LN) 3.6p, Mkt Cap £19m – Geophysical campaign to help define drill targets at Cerro Negro

• Great Southern Copper reports the start of a geophysical exploration programme at its Cerro Negro prospect in the Especularita Especularita project in northern Chile.

• The geophysics, including induced polarisation and magneto-tellluric (AMT) programmes, aims to help “targeting Phase III exploration drilling at Cerro Negro up to two kilometres south of the Mostaza mine where Phase I drilling intersected significant Cu-Ag mineralisation including:

o   CNG25-DD001: 20.0m of 3.31% Cu, 269.89g/t Ag from 27m

o   CNG25-DD005: 12.0m of 4.24% Cu, 369.5 g/t Ag from 40m, and

o   CNG25-DD007: 33m of 1.96% Cu and 60.6 g/t Ag from 87m”.

• Further “Phase II drilling results for holes CNG25-DD010 to CNG25-DD025 are pending”.
• CEO, Sam Garrett, explained that “The IP survey is designed to detect the disseminated Mostaza-style sulphide mineralisation and resistivity contrasts of altered rocks down to some 200m depth”.

• He also commented that “The AMT survey is run in parallel and provides resistivity data down to many hundreds of metres depth. The four survey lines will test a two kilometre strike length of the Mostaza mineralised system, however, mineralisation remains open still further to the south”.

Conclusion: Great Southern Copper is applying additional geophysics to help define drill targets south of the recent intersections around the old Mostaza mine at its Cerro Negro prospect in northern Chile.

IperionX (IPX AU) A$4.8, Mkt cap A$1.5bn – Receipt of US DoD Contract for titanium fasteners

• IperionX has been awarded a Small Business Innovation Research Phase III Contract by the US Department of Defence.
• The contract will provide a funding mechanism capped at US$99m for titanium components.
• The programme is intended to support innovation.
• Iperion intends to begin titanium fastener production in the coming months.
• The Company states the contract ‘aligns with recent US Government funding priorities aimed at fortifying US critical material manufacturing capabilities.’
• Iperion is working on a patented production method for titanium metal.

Jubilee Metals Group (JLP LN) 4.1p, Mkt cap £120m – Emphasis switching to Zambian copper business

• Jubilee Metals confirms that it has received a conditional, binding offer for its South African chrome and platinum group metals (PGM) operations.
• The offer of “up to US$90 million … from … [an unnamed] … private mining and metals trading company … is subject to a number of customary conditions including entering into final agreements (Definitive Agreements) and obtaining shareholder approval for any agreed transaction”.
• “The total consideration of up to US$90 million is payable through a combination of  cash upfront and deferred cash payments over an approximate 3 year period”.
• “Jubilee will retain all current rights to the Tjate Platinum mining project offering Jubilee continued exposure to the potential upside of the PGM market, while focussing to further advance the Company’s copper strategy in Zambia”.
• Today’s announcement explains that the “chrome and PGM business has reached a high level of maturity, as an established processor of clients’ and strategic partners’ chrome ores. Further significant growth opportunities are limited, and mostly relate to co-investing into mining ventures requiring significant capital outlay”.
• Jubilee Metals contrasts this mature business with its opportunities in Zambia “where the directors believe there are material opportunities to deliver growth at the existing sites by expanding the portfolio of copper producing assets. Strong copper markets support higher earnings potential resulting in higher margins than that of chrome”.
• The announcement summarises that “Disposing of the chrome and PGM business allows the Group to wholly focus its efforts on Zambia” where recent processing trials “confirm the Roan concentrator’s capability to maintain a ROM feedstock run rate of between 35 000 to 40 000 tonnes per month (tpm) on the transitional reefs”.
• Elsewhere in Zambia, at the “Munkoyo mining operations a mine rate of approximately 80 000tpm is ongoing, of which 3 500tpm of high-grade ROM in excess of 2.5% Cu (equivalent to 88TCu per month) is delivered to the Company’s nearby Sable Refinery”.
• CEO, Leon Coetzer, explained that the “Board has reviewed the terms of the offer and feel it is an opportune time to accept a fair value offer for the chrome and PGM operations at a time when the two segments of the Company are on markedly divergent paths”.
• He clarified that “the South African business has reached a stage of maturity that would require a large capital outlay to achieve any step change in production going forward … [but that] … in Zambia, the potential capital returns and earnings growth offered from our exciting suite of assets could not be more evident. Execution of Jubilee’s copper strategy has gained significant traction with Roan now fully operational and the near surface mining opportunities, such as Munkoyo and Project G, which offer significant growth opportunities”
• Today’s announcement also discloses that Jubilee Metals has decided to add an additional “refining step on the back end of the Roan facility to increase the copper recoverability which, holds the potential to significantly further enhance operating margins of the high-grade copper ROM feed”.
• “The Company has also opportunistically secured further high-grade copper run-of-mine (ROM) stockpile grading in excess of 1.7% Cu which is in addition to the long term supply agreement for Roan announced on 6 February 2025. The stockpile is located near the Roan operations and can commence processing immediately”.

Conclusion: The disposal of a relatively low-growth South African chrome and PGM business aims to allow Jubilee Metals to concentrate its financial and management resources on its expanding copper interests in Zambia.

Lindian Resources (LIN AU) A$0.13, Mkt Cap A$139m – Kangankunde Project Update

• Preconstruction road and site works are ahead of schedule and under budget at the Kangankunde Rare Earth Project in Malawi.
• Award of EPC contract is expected in the coming weeks.
• Senior management and the Board is meeting with Malawian authorities to finalised the Kangankunde Mining Development Agreement.
• Power supply agreement to be finalised and awarded in June quarter.
• Tailings review and optimisation solutions for dry tailings underway.
• Next milestones include award of the construction contract, securing project funding and MDA conclusion ahead of construction start.

Marimaca (FFM CN) C$5.3, Mkt cap C$534m – Equity placing to progress copper project

• Marimaca has raised US$17.7m via a placing at C$4.6/share.
• The placing is being made to major shareholder Assore and Ithaki Ltd, both subscribing for C$10.35m.
• The Company will use the funds to progress the Marimaca copper project.
• The Chilean copper project holds 900kt Cu in M&I and 141kt in inferred at 0.45% Cu and 0.38% respectively.
• The Company  is targeting project financing this year and construction in 2Q26.
• Additionally, Marimaca is looking to deliver a Pampa Medina MRE this quarter.
• The Company is owned 25% by Greenstone and 15% by Assore, pre the placing, with Ithaki having held 9.5%.

Mkango Resources* (MKA LN) 16.7p Mkt Cap £56m – Songwe Hill recognised as strategic asset by the EC

BUY

• The Songwe Hill Rare Earth Project was designated as a Strategic Project by the European Commission under the Critical Raw Materials Act.
• New list of projects includes 13 assets covering various critical elements including lithium, nickel, cobalt, manganese, graphite, REE, copper, tungsten and boron.
• The announcement follows an EC decision to include the proposed Pulawy Separation Plant, Poland, into the list of strategic projects earlier in March 2025.
• Pulawy is envisaged to process MREC produced at Songwe Hill in Malawi with an integrated source of supply through to separated REOs now covered by Startegic Project designation.
• The selected Strategic Projects will benefit from coordinated support by the Commission, Member States and financial institutions in the form of facilitating access to finance and contacts with relevant off-takers.
• Full list of 13 projects can be found here: https://single-market-economy.ec.europa.eu/publications/commission-decision-recognising-certain-critical-raw-material-projects-located-third-countries_en

*SP Angel acts as nomad and broker to Mkango Resources

Tungsten West (TUN LN) – 7p, Mkt cap £12.3m – EC recognises Hemerdon as a strategic project

• Tungsten West has welcomed the European Commission’s decision to include the Hemerdon tungsten project on its list of strategic projects under the EU’s Critical Raw Materials Act.
• CEO, Jeff Court, said that inclusion as a European ‘Strategic Project’ “emphasises the potential significance that Hemerdon holds, not only to the UK but to the wider European market”.
• Mr. Court explained that, in the context of the “recent tightening of the tungsten market … [which puts] … increased importance on the creation of a secure supply chain of critical materials … the Strategic Project designation will enable us to have access to additional potential funding opportunities within the EU”.
• Last week, Tungsten West released details of its US$93m plan for the resumption of tungsten production from the Hemerdon mine in southwest England.
• The plan, which uses a base case commodity price of US$400/mtu for the benchmark intermediate ammonium paratungstate (APT) price (currently ~US$400/mtu) and tin price of US$32,500/t (currently ~US$32,500/t) also envisages the production and sale of 350ktpa of high specification aggregate products priced at £19/t through the operating life and for a further 12 years.
• Tungsten West’s new plan generates an after-tax NPV_7.5% of US$190m and IRR of 29.3% from the production of an average of 332,000 metric tonne units (mtu) of tungsten trioxide and 462t of tin annually over an 11-year period of mining followed by an additional 4 years processing of stockpiled material.
• The operation is expected to deliver unit costs of US144/mtu of tungsten trioxide, on an all-in-sustaining cost basis, under steady state operation processing 3.5mtpa and US$167/mtu over the full life of mine.
• Project development is underpinned by a ‘Measured & Indicated’ mineral resource of 163.7mt at an average grade of 0.34% tungsten trioxide and 0.03% tin with an additional ‘Inferred’ resource of 163.1mt at an average grade of 0.11% tungsten trioxide and 0.02% tin which may offer possible opportunities to extend the operating life.
• The overall ‘Proven & Probable’ mineral reserve is 70.7mt at an average grade of 0.15% tungsten trioxide and 0.03% tin including 36.9mt at an average grade of 0.17% tungsten trioxide and 0.03% tin within the ‘Proven’ class of reserve.
• As well as the EU, tungsten, in a global market dominated by China, is considered a strategically important mineral in other jurisdictions including the UK, US, Australia, and Japan.

Conclusion: European designation of Tungsten West’s Hemerdon project as ‘Strategic’ may ease access to funds to deliver the US$93m plan to resume production which was announced last week.

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

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