SP Angel Morning View -Today’s Market View, Thursday 5th September 2024

Gold resumes uptrend as job openings and Fed beige book boost recession trades

MiFID II exempt information – see disclaimer below

Aura Energy* (AURA LN) – Häggån polymetallic project exploitation permit application lodged as Sweden softens anti-mining stance

BeMetals* (BMET CN) – Restart of drilling at Pangeni to follow up on previous copper intersections

Beowulf Mining* (BEM LN) – PFS met testwork confirms high-quality concentrate potential

Blencowe Resources (BRES LN) – Examining the production of a high value SPG product in Uganda

Gem Diamonds (GEMD LN) – Letšeng yields 11^th >100 carat diamond so far this year

Gemfields Group (GEM LN) – Auction of lower value ‘commercial’ quality product from Montepuez mine, Mozambique

Kodal Minerals* (KOD LN) – Long-lead time items arrive at port of Abidjan in the Ivory Coast. Bougouni site remains above high-water level despite heavy rains.

Mkango Resources* (MKA LN) – £1.25m equity raise closed

Oriole Resources* (ORR LN) – Interim results as gold progress continues in Cameroon

Rome Resources (RMR LN) – Stepping up drilling to deliver a resource estimate at Kalayi, DRC

Thor Explorations* (THX LN) – Douta exploration update

Gold ($2,515/oz) resumes uptrend as job openings and Fed beige book boost recession trades

• Gold prices have climbed to $2,515/oz in the spot market, having sold off yesterday to $2,475/oz.
• The metal has been supported by a sharp rally in US Treasuries, pushing yields to yearly lows.
• The 10 year is sitting at 3.77%, following a disappointing job openings report yesterday which showed negative revisions.
• The Fed Beige Book, which surveys regional contacts, suggests a slowing economy with firms cutting shifts and hours to protect margins.
• The reading showed a theme of weakening demand for hiring and rising potential of layoffs.
• NFP data will be closely watched tomorrow, with the odds of a 50bp cut rising to 41% yesterday vs 30% on Monday.
• Expect gold to benefit from further dovish repricing of Fed rate cuts if the US labour market continues to weaken.
• However, a stronger number combined with a hotter-than-expected CPI reading next week could keep rates elevated, weighing on gold prices.

POSCO to buy 20% stake in Black Rock Mining for $40m

• POSCO, the South Korean steel and battery metals group is acquiring 20% in Black Rock Mining Ltd for US$40m.
• Black Rock Mining hold 84% of the Mahenge graphite project in Tanzania which is reported to hold around 6mt of natural graphite.
• The acquisition marks a move into the natural graphite market which we believe produces better quality graphite for Li-ion battery anodes.
• POSCO has, in recent years, been seen diversifying its portfolio into lithium, cobalt, nickel and other battery metals.
• We look forward to seeing further acquisitions and investments in this area.
• Other graphite companies to consider are: Sovereign Metals* (SVML LN), Talga (TLG AU), Renascor (RNU AU), GreenRoc Mining (GROC LN) , Beowulf Mining* (BEM LN), Gratomic* (GRAT CN), Mineral Commodities (MRC AU)

Lithium pain continues as prices fall further as Arcadium readies Mt Cattlin for care and maintenance

• Lithium carbonate prices fell over 4% last night, slumping below $10,000/t in China as inventories remain ample.
• Arcadium is set to place Mt Cattlin in care and maintenance by mid-2025 as spodumene prices continue to fall, down to $750/t today.
• Greenbushes is likely the only profitable spodumene mine in Australia currently, suggesting further projects may come offline should prices remain depressed.
• MinRes continues to suffer from a highly levered balance sheet, with expectations of a slowdown in spodumene production from their lossmaking Mt Marion, Wodgina and Bald hill operations.
• Mt Cattlin produces 140-150ktpa spod con, whilst MinRes’ operations produce c.1650ktpa SC6eq.
• Chinese lithium producers are boosting their hedging capacity with trading desks to reduce the impact of volatile prices.
• As a result, the Guangzhou futures market is becoming more liquid.
• China holds 70% of global refining capacity and is likely suppressing the price to consolidate dominance in the EV battery making and lithium refining space.

Iron ore slumps again as more Chinese steelmakers ring alarm bells

• The 62% Mysteel index fell to $92/t last night, whilst Singapore futures are sitting below $91/t.
• The China Iron and Steel Association expects a steel recovery in September and October, but warns marginal steelmakers to hold off on increasing production.
• Steel prices have been depressed by weak margins as China’s property sector continues to implode.
• China inventories are elevated, sitting over 150mt.

Economics

US – Lower than expected job openings, an indicator for labour demand, as well as revisions to the previous month saw US bond yields pulling back adding to speculation for more rate cuts this year.

• NFPs that are more up to date numbers covering August will be watched closely to gauge the state of the labour market before the FOMC meeting later this month.
• JOLTS Jobe Openings (Jul/Jun/Est): 7,673k/7,910k(revised from 8,184k)/8,100k

Democrat Presidential Nominee Kamala Harris watered down proposed capital gains tax increases for the wealthiest Americans to 28%.

• Long term capital gains are currently taxes at 20% which increases to 23.8% for the highest earners because of a surtax on investment income.
• President Biden earlier proposed to raise the top capital gains tax rate to 39.6%, in effect taxing capital gains as ordinary income, FT writes.
• The current administration also suggested to increase the surtax from 3.8% to 5%.
• Harris did not comment on potential changes to surtax nor considered tax on unrealised capital gains.

Japan – Wages growth slowed in July, although, not as strongly as was expected.

• Stronger than forecast labour earnings will speak in favour of further monetary tightening by the central bank.
• Labour Cash Earnings (%yoy, Jul/Jun/Est): 3.6/4.5/2.9
• Real Cash Earnings (%yoy, Jul/Jun/Est): 0.4/1.1/-0.6

Germany – Factory orders unexpectedly climbed for a second month in July representing a rare piece of positive news in a struggling sector.

• The increase is reported to have been driven by large scale orders that once excluded take the gauge into a negative territory.
• Separately, a downturn accelerated in the construction sector in August with the sector weighed down by high borrowing costs.
• Factory Orders (%mom, Jul/Jun/Est): 2.9/4.6(revised from 3.9)/-1.7
• HCOB Construction PMI (Aug/Jul/Est): 38.9/40.0/NA

Egypt – The central bank is monitoring the effect of recent subsidy cuts on inflation in light of monetary policy outlook.

• Monetary authorities will announce their rate’s decision later today with expectations for no change in the deposit rate currently standing at 27.25%.
• Inflation slowed to 25.7% in July after hitting a record high of 38% in September last year.
• The cabinet cut fuel and power subsidies that saw an increase in respective prices earlier.

Singapore – Tax take rises 17% to $80bn

• The figure represents 1.9% of Singapore GDP.
• Strong corporate earnings enabled corporate income tax to rise to $29bn vs $5.9bn a year earlier.
• Stamp Duty fell by $100m to $5.8bn due to a lower number of property transactions.

Currencies

US$1.1081/eur vs 1.1057/eur previous. Yen 143.64/$ vs 145.00/$. SAr 17.839/$ vs 17.963/$. $1.314/gbp vs $1.311/gbp. 0.672/aud vs 0.671/aud. CNY 7.102/$ vs 7.112/$.

Dollar Index 101.28 vs 101.65

Precious metals:         

Gold US$2,506/oz vs US$2,485/oz previous

Gold ETFs 83.0moz vs 83.0moz previous

Platinum US$919/oz vs US$905/oz previous

Palladium US$940/oz vs US$937/oz previous

Silver US$28.4/oz vs US$27.9/oz previous

Rhodium US$4,650/oz vs US$4,625/oz previous

Base metals:   

Copper US$ 8,944/t vs US$8,960/t previous

Aluminium US$ 2,374/t vs US$2,400/t previous

Nickel US$ 16,145/t vs US$16,310/t previous

Zinc US$ 2,733/t vs US$2,817/t previous

Lead US$ 2,000/t vs US$2,040/t previous

Tin US$ 30,165/t vs US$30,505/t previous

Energy:           

Oil US$73.1/bbl vs US$73.2/bbl previous

• Crude oil prices remain weak ahead of an OPEC+ decision on whether to start reversing output cuts from 4Q24, supported by the API reporting a higher than expected 7.4mb w/w draw (-0.9mb exp) to US crude stocks.
• European energy prices fell as EU natural gas storage levels rose 0.6% w/w to 92.6% full (vs 85.4% 5-Yr average), with all countries over 90% full and aggregate storage now at 1,061TWh.
• Media reports that the headquarters for Great British Energy, a new UK Government-backed energy company, will be located in Aberdeen.

Natural Gas €36.0/MWh vs €36.5/MWh previous

Uranium Futures $79.4/lb vs $79.4/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$92.9/t vs US$100.8/t

Chinese steel rebar 25mm US$473.4/t vs US$473.5/t

Thermal coal (1st year forward cif ARA) US$117.9/t vs US$120.9/t

Thermal coal swap Australia FOB US$138.5/t vs US$141.3/t

Coking coal Dalian Exchange futures price US$174/t vs US$176.8/t

Other:  

Cobalt LME 3m US$24,300/t vs US$24,300/t

NdPr Rare Earth Oxide (China) US$59,841/t vs US$58,355/t

Lithium carbonate 99% (China) US$9,927/t vs US$10,054/t

China Spodumene Li2O 6%min CIF US$750/t vs US$770/t

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

China Tungsten APT 88.5% FOB US$333/mtu vs US$333/mtu

China Graphite Flake -194 FOB US$440/t vs US$443/t

Europe Vanadium Pentoxide 98% 4.6/lb vs US$4.6/lb

Europe Ferro-Vanadium 80% 24.75/kg vs US$24.75/kg

China Ilmenite Concentrate TiO2 US$320/t vs US$320/t

China Rutile Concentrate 95% TiO2 US$1,373/t vs US$1,371/t

Spot CO2 Emissions EUA Price US$72.4/t vs US$72.4/t

Brazil Potash CFR Granular Spot US$290.0/t vs US$290.0/t

Germanium China 99.99% US$2,545.0/kg vs US$2,545.0/kg

China Gallium 99.99% US$445.0/kg vs US$445.0/kg

Battery News

Reliance Industries wins bid from Indian Government to build EV batteries

• Reliance Industries has won a bid to build a 10GW battery gigafactory under India’s production-linked incentive (PLI) program to manufacture EV batteries. (Bloomberg)
• Reliance outbid six competitors, including Amara Raja Energy and Mobility and JSW Energy, for the project.
• The PLI scheme, with a budget of $434.4 million, aims to boost local battery production to support India’s growing EV market.
• India, the world’s third-largest car market, aims to increase EV adoption from 2% of car sales to 30% by 2030.
• As its grid expands and its transport system electrifies, India may see battery demand rise to as much as 260GWh by 2030, according to government projections.

Volvo abandons target to go EV-only by 2030

• Volvo Cars has abandoned its target of selling only electric cars by 2030 amid a global slowdown in growth for battery-powered vehicles.
• The company now expects to be selling some hybrid models by the 2030 date.
• Volvo’s CEO, Jim Rowan, has blamed changing market conditions and consumer worries over charging infrastructure for its revised target.
• “We will be ready to go fully electric this decade, but if the market, infrastructure and customer acceptance are not quite there, we can allow that to take a few more years,” Rowan said.
• The automaker has also slashed its margin and revenue ambitions for the second time this year.

Mercedes-Benz EV completes 747m journey on single charge

• Mercedes’ concept electric car, the Vision EQXX, travelled 747m (~1200km) on a single charge, breaking its previous efficiency record. (FleetNews)
• The vehicle made a journey from Stuttgart, Germany, to Silverstone, UK, using innovative aerodynamic design and a lightweight 100kWh battery.
• The Vision EQXX’s battery is 30% lighter and takes up half the space of a standard EV battery, despite similar capacity.
• Mercedes ran the air conditioning for eight hours of the 14.5-hour trip, and completed the journey experiencing real world conditions, demonstrating the car’s impressive efficiency.

Lithium Australia sign recycling agreement with BYD

• Lithium Australia has signed an agreement with BYD Auto to provide battery recycling services for its new energy vehicles in Australia.
• Under the terms of the initial three-year deal, Lithium Australia will receive a service fee for the collection of BYD’s end-of-life lithium iron phosphate (LFP) batteries.
• The company achieved collection volumes of 445 tonnes for recycling during Q2 2024, including a record 242t of large-format lithium-ion batteries, up 392% yoy.

BYD pushing to break into Japanese EV market

• As part of its global expansion plan, BYD is ramping up plans to tackle the Japanese auto market.
• Japan has been tough market for foreign automakers to penetrate, and the government has again changed EV subsidies reducing them for BYD and other foreign rivals.
• To counteract lower subsidies, BYD has accelerated its roll out of EV charging stations and increased its marketing presence in Japan.
• BYD are also offering discounts on the first 1000 cars of its newest model.
• Some Japanese consumers are wary of buying Chinese products due to quality concerns.
• EVs accounted for just a little more than 1% of the 1.47m passenger cars sold in Japan in the first seven months of this year, according to industry data.

Company News

Aura Energy* (AURA LN) 7.5p, Mkt Cap £63m – Häggån polymetallic project exploitation permit application lodged as Sweden softens anti-mining stance

(Aura Energy hold 100% of Tiris Uranium and 100% of the Häggån Project in Sweden, Häggån hosts 2.5bnt of vanadium, SOP ‘sulphate of potash’ and uranium resource)

• Aura Energy report the lodging of the Häggån polymetallic project exploitation permit application which if granted will secure tenure over the project for 25 years.
• Häggån hosts 2bnt of polymetallic ore containing vanadium, potassium, nickel, zinc, molybdenum, and uranium.
• The permit application process confirms certain matters about the project from an environmental and social perspective.
• The Swedish Government is looking to lift its ban on uranium extraction which would vastly improve the economics of the Häggån project and help Sewden towards self-sufficiency in nuclear fuel for its domestic reactors.
• Häggån’s 800mlbs uranium resource was formerly excluded from its Scoping Study which just considered ~3% or 65mt of the resource.
• Management anticipate further drilling will enhance the economics of the project and have submitted an application for a new exploration license, Häggån no 2 to cover the original Häggån no 1 exploration license and allow Aura to apply for the new Häggån no 2 license.
• See: https://auraenergy.com.au/investor-centre/investor-presentations/

*SP Angel acts as Nomad and Broker to Aura Energy

BeMetals* (BMET CN) – C$0.080, Mkt cap C$18m – Restart of drilling at Pangeni to follow up on previous copper intersections

• BE Metals have restarted drilling at Pangeni in Zambia following the raising of C$4.8m to fund the new campaign in August and C$7m in June.
• The team have traced copper mineralization, under the sand cover which generally prevails in the West of Zambia for ~1.7km with a higher-grade zone identified >1.2 km at the D-Prospect within the Nakala Zone.
• While the sand cover significantly reduces surface outcrop obscuring potential mineral discoveries it is generally relatively shallow in this end of Zambia.
• The team are now drilling a further 5,000m of shallow aircore and 2,000m of diamond drilling to “further expand the footprint of the copper mineralization”.
• Aircore drilling is quick enabling the surface sampling of the bedrock underneath the Kalahari sand giving.
• Promising aircore results will be followed up with diamond drilling which will recover longer intersections and hopefully some promising assay results.
• The idea is to identify multiple intercepts with similar widths and grades to other major copper mines in the region.
  • “This drilling will also further assess the continuity of the Nkala Zone and Ingwe Shoot and test satellite targets close to the D-Prospect.”
• BE Metals also report results from two previous holes drilled earlier this year.
• Nkala Zone: D-Prospect assay results:
  • D2-C3:  15.71m @ 0.31% Cu, inc. 8.08m @ 0.37% Cu
  • D14-C2  31.50m @ 0.33% Cu, inc. 17.10m @ 0.40% Cu
  • These results confirm intersection width and grade continuity within the Nkala Zone to the east northeast.
• Previous results, below, show copper grades and mineralised widths similar to certain large-scale copper mines in the Domes region of the Zambian Copperbelt.
  • D24-C1:  16.16m @ 0.74% Cu with 533 ppm Co, inc. 5.50m @ 0.93% Cu with 701ppm Co
  • D11-C3:  23.20m @ 0.54% Cu with 263ppm Co, inc. 7.90m @ 0.92% Cu with 453ppm Co
  • D22-C2:  14.78m @ 0.42% Cu, inc. 4.88m @ 0.65% Cu
• Copper mineralisation remains open along strike towards the south west and north east.
• Supporting shareholders:
  • JOGMEC, The Japan Organization for Metals and Energy Security continue to fund their pro-rata 27.8% share of the exploration.
  • B2 Gold founded and run by the hugely successful Bema Gold team also continue to support BeMetals and effectively hold 24.5% of the company

Conclusion:  The BE Metals team led by John Wilton, a former Antofagasta geologist are working their way towards a potential future discovery. While this can not be guaranteed, their work following the in-ground copper towards areas of greater copper accumulation will hopefully lead the team towards their first significant discovery.

*SP Angel formerly acted as UK broker to BE Metals. The SP Angel mining analyst holds shares in BE Metals

Beowulf Mining* (BEM LN) 25p, Mkt cap £10m – PFS met testwork confirms high-quality concentrate potential

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• Beowulf provides an update from its ongoing PFS workstream, with today’s results highlighting encouraging progress with metallurgical testwork.
• The Company has confirmed its ability to produce a high-grade, low impurity iron ore concentrate.
• Testwork was conducted on over 60t of samples from trenches across the Gállok deposit, which grades at 29.5% Fe and is split 3.4:1 magnetite to hematite respectively.
• Beowulf is targeting a conventional magnetite process flowsheet using milling and low-intensity magnetic separation pre-concentration, followed by ball mill re-grinding.
• 2024 testwork has seen more detailed analysis using mineralogical studies with TESCAM TIMA studies to support previous QUEMSCAN work.
• This is intended to gain a more comprehensive understanding of liberation, which confirmed previous work suggesting the magnetite and maghemite liberates at P(80) 40 microns.
• Comminution test-work points to either a Fully Autogenous Grinding or Semi-Autogenous Grinding crushing route.
• Samples were then processed via Wet Low-Intensity Magnetic Separation to produce a concentrate grading 68.8% Fe, 3.41% SiO2 and 0.22% Al₂O_3, from magnetite, and a similar result from maghemite.
• Management believes the samples can be upgraded to a <70% Fe product with c.2% SiO2, expected to fetch elevated premiums given likely suitability for DRI feedstock.

Flowsheet

• Beowulf sees today’s results as confirming Gállok’s potential for a conventional magnetite flowsheet.
• This will likely entail crushing and grinding alongside WLIMS units.
• The final product is expected to be a single concentrate grading 68.8%.
• Gállok will likely either produce c.2.7mtpa of 68.8% Fe with <3.7% SiO2 and < 0.23% Al₂O₃ concentrate.
• It is reassuring to see limited alumina content confirmed in the concentrate, given the complications in removing it from ore during processing.
• Elevated alumina and silica by-products are unpopular with steelmakers given increased slag formation in furnaces.
• Alternatively, 2.7mtpa at >70% Fe is also a possibility, with c.2% SiO2.
• A trade-off study will now be completed considering the potential to upgrade to a 70% Fe concentrate via LJC Technology.
• LJC technology is a physical process which combines hydro separation with gravity and magnetic separation and has been utilised with Chinese magnetite orebodies.
• Upgrading will require additional CAPEX/OPEX considerations.
• Conclusion: Beowulf’s more detailed metallurgical testwork in advance of the updated Gállok PFS confirms expectations to produce a high-quality iron ore concentrate product. Beowulf expects to receive a premium to the 65% Fe index, which averaged $152/t on a three year trailing basis from the beginning of this year, and $136/t on a five year trailing basis. Beowulf will also hold the option to upgrade the concentrate further, to a >70% product suitable for the DRI steelmaking route, which enjoys considerable premiums in price but will require additional CAPEX/OPEX. Trade off studies are now being conducted before the delivery of the PFS. Whilst iron ore prices are currently under pressure, the transition to EAF has seen strong premiums for high quality products like Gállok’s. We expect this trend to continue, supporting the economics of the project over the long term.

Blencowe Resources (BRES LN) 5.25p, Mkt Cap £11m – Examining the production of a high value SPG product in Uganda

• Blencowe Resources reports that it has secured a Memorandum of Agreement (MoU) with a Singapore based graphite sales and marketing specialist Triessence Limited and ‘a leading Asian SPG (spheronised purified graphite) and Anode material producer’ for a plant in Uganda, the site of the company’s Orom Cross deposit.
• The proposed graphite beneficiation facility would produce “99.95% purified graphite for lithium-ion batteries … and provides a life-of-mine offtake partner near the Orom-Cross Project”.
• Today’s announcement confirms that “Blencowe and Triessence will each hold a 50% stake in in the SPG facility, with the SPG Partner providing operational expertise … [and also that] … Blencowe retains 100% ownership of Orom-Cross”.
• The company also highlights the potential commercial benefits of the “Upgrading 96% graphite concentrate to high-value battery ready 99.95% uncoated SPG” as well as the “political, commercial and funding advantages … [of sales] … to OEMs outside China via Triessence”.
• The announcement also confirms that “Triessence will fund 50% of capital costs for the SPG facility” and that Blencowe and Triessence will start a feasibility study “for the SPG facility, using Orom-Cross concentrate … [drawing on] … the SPG Partner’s experience for costing and design work, with Blencowe handling in-country requirements”.
• Explaining the “substantial advantages downstream upgrading of graphite in-country can offer” Executive Chairman, Cameron Pearce, welcomed the MoU and the benefits of “securing experienced partners who have the expertise to help us deliver successful SPG production”.

Conclusion: In-country processing and beneficiation of concentrates from Orom Cross potentially offers commercial benefits and is likely to be well received by Government and regulators in Uganda.

Gem Diamonds (GEMD LN) 12.65p, Mkt Cap £17.5m – Letšeng yields 11^th >100 carat diamond so far this year

• Gem Diamonds reports the recovery of a 122.2 carat Type II white diamond, from its 70% owned Letšeng mine in Lesotho.
• This is the eleventh diamond larger than 100 carats recovered from the mine this year.
• The latest large diamond maintains the mine’s established history of producing large diamonds which have included the 910 carat ‘Lesotho Legend’ recovered in 2019, and understood to be the fifth largest gem quality diamond ever discovered at that time, which realised US$40m when sold in Antwerp.

Gemfields Group (GEM LN) 11.5p, Mkt Cap £134m – Auction of lower value ‘commercial’ quality product from Montepuez mine, Mozambique

• Gemfields reports that a sale of commercial – quality rubies, sapphires and corundum from its 75% owned Montepuez mine in Mozambique held over three days in September realised US$2.3m.
• The company confirms that all of the 10 lots (5.7m carats) offered were sold at an average price of US$0.41/carat.
• Commenting that “Despite the commercial nature of these goods, the auction saw strong attendance and robust demand”, Adrian Banks, Managing Director of Product & Sales, said that “the significant volume of the lower-priced rough sold, will support the factories in the cutting centres of Chanthaburi, Thailand and Jaipur, India”.

Kodal Minerals* (KOD LN) 0.53p, Mkt Cap £108m – Long-lead time items arrive at port of Abidjan in the Ivory Coast. Bougouni site remains above high-water level despite heavy rains.

BUY – Target 0.97p

(Hainan Mining holds a 51% stake in KMUK which holds the Bougouni Lithium Project in Mali with Kodal holding 49%. The Mali government has the right to a free carry on 10% of the project and an option to acquire a 10% stake)

• Kodal Minerals report the arrival of the first two shipments carrying critical long-lead time items into the port of Abidjan Port in the Ivory Coast.
• A first convoy of trucks have arrived at the Bougouni customs post and are awaiting final clearance.
• Having previously visited border crossings between Mali and the Ivory coast we expect this to be a relatively rapid process.
• Civil construction works are reported to be 85% complete at Bougouni.
• The Ngoualana pit is being cleared of overburden with three blasts into the exposed hard rock and pegmatite bodies to start stockpiling ahead of the DMS process plant in Q4.
• Ongoing drilling at the Boumou prospect show:
  • 7m at 1.16% Li2O from 147m in drill hole KLRC223;
  • 13m at 1.07% Li2O from 71m in drill hole KLRC224;
• The team continued to work through heavy rains in July and August with completion of the foundations for the DMS units, processing infrastructure and crushing circuit.
• The processing plant, office buildings and open pit have remained outside the high-water level indicating mining and other operations should continue year round.

*SP Angel acts as financial advisor and broker to Kodal Minerals. The analyst holds shares in Kodal Minerals.

Mkango Resources* (MKA LN) 6.8p, Mkt Cap £17m – £1.25m equity raise closed

• The Company closed the previously announced £1.25m equity raise through an issue of 25m shares at 5p.
• In addition, the Company issued 25m warrants with a strike price of 7p exercisable for thee years.
• 1.25m broker warrants were also issued with a strike price of 5p and exercisable for three years.
• Raised funds will fund development of the recycling part of the group including new equipment at Tyseley, UK, and Pforzheim, Germany, facilities.

*SP Angel acts as nomad and broker to Mkango Resources

Oriole Resources* (ORR LN) 0.32p, Mkt cap £12.6m – Interim results as gold progress continues in Cameroon

• Oriole reports six-month results to 30^th June 2024.
• The Company has agreed transformative agreements with BCM International over the period, funding exploration and drilling programmes at their high-priority Mbe and Bibemi projects.
• Oriole reported a cash balance of £840k at the end of the period.
• Oriole is expected to receive a $1m cash payment upon the release of a 1moz JORC resource for Bibemi, increasing by $1m for every 1moz up to 3moz.
• At Mbe, where drilling is set to begin in the upcoming field season, 10 JORC payments are expected on the release of every 1moz JORC resource up to 5moz, with a cumulative maximum resource payment of $20m upon a 10moz delivery.
• Mbe is an increasingly exciting prospect for Oriole, with recent trenching results showing wide intercepts of consistent gold mineralisation, including 50m at 1.11g/t Au.
• The Company is awaiting 6 additional trenching results, due over the next few weeks.
• At Bibemi, the Company is drilling out the Bakassi Zone 1 JORC resource to expand and upgrade the resource.
• Feasibility studies are also ongoing at Bibemi to analyse the potential for open pit mining with satellite deposits.
• At Senala, the Company’s legacy asset in Senegal, Managem has boosted their stake to 59%, with oriole holding an effective 35% stake.
• The licence has been renewed for a further three years and

*SP Angel acts as Broker to Oriole Resources

Rome Resources (RMR LN) 0.27p, Mkt Cap £13.2m – Stepping up drilling to deliver a resource estimate at Kalayi, DRC

• Rome Resources reports that its third drillhole at the Kalayi tin prospect within the Bisie North project in North Kivu Province, DRC has reached a depth of 103m and that a second rig has started a new hole targeting an area 50m below the mineralised intersection in hole KBDD006 which was announced on 27 August 2024.
• The company also reports that a third rig has started drilling at the Mont Agoma target to investigate “anomalous tin mineralisation intersected previously in the top 50m of MADD009  and the copper/tin/silver zone at deeper levels”.
• The company confirms that it is aiming to produce “a resource mineral estimate by the start of 2025”.
• CEO, Paul Barrett, said that Rome Resources is “poised to accelerate further. The positive results we are receiving support the initial work undertaken at the Project which indicated it has the potential to be an exciting, high-grade tin deposit”.

Conclusion: Acceleration of the drilling programme at Kalayi aims to deliver a mineral resource estimate by early 2025.

Thor Explorations* (THX LN) 18p, Mkt cap £116m – Douta exploration update

• Thor reports drilling results from their exploration programme at their 70% owned Douta Gold Project in Senegal.
• The Company is looking to expand the oxide section of the resource, which currently stands at 21.2mt at 1.3g/t Au for 875koz indicated and 24mt at 1.2g/t Au for 909koz inferred.
• Shallow drilling has been targeted parallel to the main mineralised Makosa trend, at Makosa East.
• Highlights include:
  • 32m at 1.76g/t Au from surface
  • 14m at 1.2g/t Au from 26m
  • 12m at 1.51g/t Au from 40m
  • 8m at 1.9g/t Au from 16m
• These results lie outside the current 1.8moz resource.
• The Company is aiming to use the oxide material for the initial mining period of the Douta operation.
• Thor has also been conducting infill drilling at the current known deposit, in advance of the PFS due this year.
• Douta lies near Endeavour’s Sabodala-Massawa gold mine, where EDV recently constructed a BIOX plant to process 1.2mtpa of refractory ore.
• The Company has further additional targets that are yet to be drill tested, including Mansa, Maka and Sambara.
• The exploration team is currently conducting target generation via geochemical sampling.

*A member of the SP Angel research team holds shares in Thor Explorations

No.1 in Base Metals: SP Angel mining team awarded No 1. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q1 2024

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

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

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

Analysts

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

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

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

Sales

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

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

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

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

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

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

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

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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

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