Copper prices climb over $10,000/t after sell-off
MiFID II exempt information – see disclaimer below
Ariana Resources (AAU LN) – Completion of the technical assessment of the Dokwe project
European Lithium (EUR AU) – $15m secured under the LiOH offtake agreement
Gemfields Group (GEM LN) – Initial gold resource estimate for Nairoto project, Mozambique
Oriole Resources* (ORR LN) – Chair purchases more shares as gold exploration progresses well in Cameroon
Phoenix Copper* (PXC LN) – Initial drawdown of copper bond funds
SolGold* (SOLG LN) – Cascabel Exploitation Contract secured
Versarien* (VRS LN) – Interims highlight growth in core product graphene sales
Copper ($10,010/t) strengthens whilst Trafigura warns over detached fundamentals
- Copper prices climbed back over $10,000/t having hit $9,875/t yesterday.
- A weaker dollar has provided some respite to the sell-off, which has been triggered by speculative flows drying up following a record rally.
- Traders continue to fight for concentrate amid tight feedstock markets, with Bloomberg reporting a scramble for contracts.
- For example, ERG is reportedly seeking an upfront payment of $1bn from traders including Trafigura and Mercuria for future concentrate.
- ERG’s Metalkol and Frontier operations produce c.200ktpa and Glencore is reportedly boosting its offtake agreement with the Company. (Bloomberg)
- Capstone Copper sold 380kt of copper concentrate for 2025-2027 delivery and Hudbay are offering production from Peru for 2025-2027 delivery, according to Bloomberg.
- Whilst copper concentrate fundamentals remain tight, Trafigura suggests the refined market remains well supplied.
- Chinese refined copper imports rose 17.7% yoy in April to 305,800t with a rise of 19.2% yoy in imports to 1.3mt seen from January to April.
- This is in marked contrast with last year when refined copper imports fell 10.2% in April and 11.1% for the January-April period.
- There are mixed views in the market over reports that China has not been an active buyer of refined goods recently, though record low Yangshan import premiums and elevated contango levels indicate a pull back in import levels.
- While Copper’s recent spike appears to have been largely driven by speculative flows some believe China may be preparing to stock up to meet new demand in green technology manufacturing.
Iron ore holds lower as Cargill stops steel trading in China on property slowdown
- Iron ore prices have held around the $107/t 62% Fe mark in China having fallen 12% in a fortnight.
- Bloomberg reports Cargill, major commodity trader, has closed its steel trading business in China on slow activity.
- Cargill has reportedly been struggling with limited steel activity in China since 2022 on the back of the construction slowdown.
- Iron ore fundamentals have been weak, with steel mills struggling with thin margins.
- Buyers in China have been stockpiling iron ore recently.
- Stockpiling may return following the Dragon Boat Festival as steel demand picks up.
- Traders have told Reuters that steel consumption data is ‘worse than we expected.’
- An index of China property developer shares fell 4% today, now down 20% this month.
- Optimism over a Beijing support package has faded, with questions remaining over solutions to the property glut.
Gold prices ($2,363/oz) climb as ETF buying continues on lower Treasury yields
- Gold prices have pushed up to $2,363/oz as US Treasury yields continue to slide.
- Weaker JOLT data on Tuesday triggered a rally in government bonds, exacerbated by Wednesday’s slowing private ADP data.
- The Fed’s focus will now be on Friday’s nonfarm payroll data, with bond traders now looking for a miss to support the bullish momentum.
- US 10-year yields fell below 4.3%, down 30bp from mid-May levels.
- Chinese traders have been buying gold in international markets, with onshore prices elevated, offering an arbitrage opportunity.
- Chinese households and traders have been driving gold prices in 1H24 given slumping yuan, falling property prices and downtrodden equities.
- However, gold imports to China fell 136t in April, down 30% mom, hitting ytd lows.
| Dow Jones Industrials | +0.25% | at | 38,807 | |
| Nikkei 225 | +0.55% | at | 38,704 | |
| HK Hang Seng | +0.16% | at | 18,455 | |
| Shanghai Composite | -0.54% | at | 3,049 | |
| US 10 Year Yield (bp change) | 2.3 | at | 4.30 |
Economics
Canada – First G7 nation to cut interest rates from 4.75% 5% – first cut in four years
China – Property stocks are on course to enter a technical bear market with losses from a mid-May high reaching around 20%, Bloomberg estimates.
- The sector benefited from a raft of support measures announced mid May including softer mortgage rules and urging government to buy unsold properties.
- The central bank committed CNY 300bn ($42bn) to help government backed companies to buy excess inventory from developers with acquired real estate to be converted into affordable housing.
- Announced measures sent an index of developer shares up nearly 10% at the time with momentum now seen dwindling.
- Property prices and new sales have been falling for more than two years now while new construction is currently at the lowest in more than a decade.
Chinese unrest and dissent grows on rising unemployment and increasing financial uncertainty
- The longer-term detention of some protestors, protesting over the Zhengzhou bank fraud is causing growing concern in China. (Asia Financial)
- Three of the protesting and defrauded depositors are reported to be still in jail.
- The authorities appear to be concerned over increasing protests over financial issues with the China Dissent Monitor (Washington) reporting a 127% jump in economic protests for Q4 2023.
- Some 600,000 depositors lost their savings in the $4.2bn fraud involving four banks in Henan province causing concern over rural lenders.
- Some investors have since turned to buying gold as a more secure way to protect their wealth.
Shenzhen-Zhongshan Link, $6.7bn, 24km sea crossing set to open to traffic after seven years of construction.
- The bridge and tunnel combination will cut the time from Shenzhen to Zhongshan to 30 mins from two hours
Longi Green Energy Technology Co. Ltd. to cut solar manufacturing in South East Asia as US tariff exemption expires. (Caixin)
- US officials had granted a two-year tariff exemption in 2022 for solar products imported from Malaysia, Cambodia, Thailand and Vietnam causing Longi to move manufacturing into these regions.
CATL leads in corporate subsidy receipts according to Wind, a Chinese information provider
- CATL received around ~CNY5.7bn, (~$790m) in subsidies last year doubling the previous year’s financial support as the government prioritised EV production growth.
- The annual subsidies are disclosed under nonrecurring items that count toward a given year’s net profit, under Chinese accounting standards..
- CATL leads other technology companies in terms of state support:
- CATL 5.7bn,
- SAIC Motor ~4.1bn,
- BOE Technology ~3.8bn,
- Sinopec ~3.6bn,
- TCL ~2.8bn,
- China Mobile ~2.7bn,
- PetroChina ~2.5bn,
- BYD ~2.1bn,
- Great Wall Motor ~2bn,
- SMIC ~1.7bn.
- For CATL, the 2023 support amounted to 13% of its net profit. The Shenzhen-listed company did not disclose what it used the money for in its latest annual report, and it did not respond to queries from Nikkei Asia.
- But CATL is not the only example that signals a shift in how the Chinese state is doling out subsidies: Four of the top 10 recipients were EV-related.
- We expect the European Commission investigation into Chinese state subsidies to result in high tariffs for Chinese EVs of potentially 100% as seen in the US.
- We believe China can manufacture EVs around 25-30% cheaper than their Western rivals.
- We also reckon the Chinese EVs may well prove to be better in terms of real-world range vs advertised range.
- China is working to gain a meaningful advantage in this area and continues to incentivise and subsidise growth in its EV and green technology industries as ordered by President Xi.
- While we do not welcome tariffs, we understand the West risks the loss of millions of automotive jobs if consumers move en masse to buy cheaper and possibly better Chinese EVs.
Germany – Industrial orders unexpectedly contract in April undermining hopes for a recovery in the sector.
- Factory Orders (%mom, Apr/Mar/Est): -0.2/-0.8(revised from -0.4)/0.6
- Factory Orders (%yoy, Apr/Mar/Est): -1.6/-2.4(revised from -1.9)/0.3
India – Narenda Modi secured the backing of his political partners to form a government and is expected to be sworn in over the weekend.
Currencies
US$1.0882/eur vs 1.0879/eur previous. Yen 156.18/$ vs 155.98/$. SAr 18.885/$ vs 18.717/$. $1.279/gbp vs $1.278/gbp. 0.666/aud vs 0.666/aud. CNY 7.247/$ vs 7.246/$.
Dollar Index 104.21 vs 104.26 previous.
Precious metals:
Gold US$2,364/oz vs US$2,331/oz previous
Gold ETFs 80.9moz vs80.9moz previous
Platinum US$996/oz vs US$991/oz previous
Palladium US$937/oz vs US$925/oz previous
Silver US$30.33/oz vs US$29/oz previous
Rhodium US$4,700/oz vs US$4,725/oz previous
Base metals:
Copper US$ 10,014/t vs US$9,920/t previous
Aluminium US$ 2,642/t vs US$2,635/t previous
Nickel US$ 18,470/t vs US$18,730/t previous
Zinc US$ 2,893/t vs US$2,899/t previous
Lead US$ 2,238/t vs US$2,229/t previous
Tin US$ 31,710/t vs US$31,615/t previous
Energy:
Oil US$78.9/bbl vs US$77.6/bbl previous
- Crude oil prices oil prices bounced off lows after Canada’s interest rate cut boosted hopes that other G7 nations would likely follow with their own rate cuts, which would act to fortify demand growth in 2H24.
- The EIA reported a 1.2mb w/w build to US crude and 2-3mb builds to gasoline and distillate stocks as refinery utilisation climbed 1.2% to 95.4%.
- European energy prices were flat as EU natural gas storage levels gained 1.4% w/w to 70.7% full (vs 59% 5-Yr average) with aggregate storage now at 801TWh.
- TotalEnergies has agreed to pay £450m to EIG for the 1.3GW West Burton B CCGT power plant that also includes a 49MW battery unit. The Company subsequently plans to divest a ~50% interest in the facility to satisfy its demand for 700MW exposure that adequately mitigates intermittency from its UK renewable portfolio.
- The IEA expects global upstream oil and gas investment to increase by 7% in 2024 to reach $570bn, which is led by Middle East and Asian NOC’s increasing their investments in oil and gas by 50% since 2017. However, this is surpassed for a second year running by combined investment in renewables and grids.
- Wood Group announced that, following feedback received from its shareholders, the Board has entered negotiations with Sidara to determine if a firm cash offer of 230p/sh can be realised.
Natural Gas €33.5/MWh vs €33.9/MWh previous
UK NBP Futures 81p/therm vs 81p/therm yesterday
TTF Dutch Futures €34/MWh vs €34/MWh yesterday
Henry Hub Gas US$2.75/mmBtu vs US$2.64/mmBtu yesterday
Uranium Futures $88.4/lb vs $89.4/lb previous
Bulk:
Iron Ore 62% Fe Spot (cfr Tianjin) US$107.0/t vs US$107.7/t
Chinese steel rebar 25mm US$536.9/t vs US$539.9/t
Thermal coal (1st year forward cif ARA) US$118.0/t vs US$124.8/t
Thermal coal swap Australia FOB US$136.5/t vs US$139.5/t
Hard Coking Coal Australia FOB US$326.0/t vs US$326.0/t
Other:
Cobalt LME 3m US$27,150/t vs US$27,150/t
NdPr Rare Earth Oxide (China) US$50,023/t vs US$50,928/t
Lithium carbonate 99% (China) US$13,593/t vs US$13,595/t
China Spodumene Li2O 6%min CIF US$1,180/t vs US$1,180/t
Ferro-Manganese European Mn78% min US$972/t vs US$972/t
China Tungsten APT 88.5% FOB US$360/mtu vs US$360/mtu
China Graphite Flake -194 FOB US$470/t vs US$470/t
Europe Vanadium Pentoxide 98% 5.2/lb vs US$5.2/lb
Europe Ferro-Vanadium 80% 26.85/kg vs US$26.85/kg
China Ilmenite Concentrate TiO2 US$318/t vs US$318/t
China Rutile Concentrate 95% TiO2 US$1,414/t vs US$1,415/t
Spot CO2 Emissions EUA Price US$71.4/t vs US$71.4/t
Brazil Potash CFR Granular Spot US$310.0/t vs US$310.0/t
Battery News
Company News
Ariana Resources (AAU LN) 2.65p, Mkt Cap £29.2m – Completion of the technical assessment of the Dokwe project
- Ariana Resources reports that it has completed its technical assessment of the 1.3moz Dokwe gold project in Zimbabwe.
- The work included the drilling of four diamond drill holes totalling 1,222m which confirmed the “historical drilling results, the distribution and nature of gold mineralisation within the Dokwe North and Central deposits and their geological controls, including new insights into the structural controls on mineralisation” and Ariana Resources is currently revising resource estimates for “both Dokwe North and Dokwe Central”.
- Today’s announcement highlights results from the recent drilling including:
- 45m at an average grade of 2.75g/t gold from a depth of 86m in hole DPD-129 including 15m averaging 4.55g/t from 86m depth and a lower section of 12.1m averaging 4.15g/t gold from 104.9m depth; and
- 22m at an average grade of 1.57g/t gold from a depth of 136m also in hole DPD-129; and
- 14m at an average grade of 4.44g/t gold from a depth of 247m in hole DPD-130, including a single metre at a grade of 35.47g/t gold at 250m depth; and;
- 20m at an average grade of 1.39g/t gold from a depth of 71m in hole DPD-131 including a 5m wide section averaging 4.27g/t gold from a depth of 76m
- As well as the confirmatory drilling Ariana Resources’ technical verification work included “Re-logging and portable X-ray Fluorescence (“pXRF”) analysis of 21,662 metres of historic drill core” as well as reviewing “density data, historic collar verification, grade checks and structural analysis”.
- In May, Ariana Resources said that over a 13-year mine-life the development of the Dokwe North project would produce an average of 60,000oz of gold annually at an all-in sustaining cost of US$1,144/oz by processing 1.5mtpa of ore from an open pit mine feeding a CIL plant generating an after tax NPV10% of US$160m and an IRR of 41% at a gold price of US$2,000/oz.
Conclusion: We look forward to the new mineral resource estimate for Dokwe and news on progress of the merger with Rockover Resources, the owner of the project.
European Lithium (EUR AU) A$0.06, Mkt Cap A$80m – $15m secured under the LiOH offtake agreement
- The Company reports that Bayerische Motoren Werkte Aktiengesellschaft transferred US$15m to ECM Lithium AT GmbH under agreed binding LiOH offtake agreement signed in Dec/22.
- ECM Lithium is a wholly owned subsidiary of Critical Metals (Nasdaq listed, Mkt Cap $839m) that is 83% owned by European Lithium.
- Under original conditions of the agreement $15m prepayment will be offset against future LiOH deliveries with pricing based on market spot prices with a discount applied.
- Additionally, offtake agreement conditions included a successful start of commercial production and full product qualification and certification.
- First production of LiOH was expected to start in 2026.
- The Company released a DFS on the Wolfsberg Lithium Project 2023 with highlights including:
- 11.5mt at 0.64% Li2O mineral reserve for an underground operation;
- ~15y life of mine running at 780ktpa and delivering 8.8ktpa LiOH;
- US$873m capex (including LiOH refinery) with ~$19,400/t LiOH opex;
- NPV6 and IRR (both post tax) of $,1.5bn and 33% using $48,600/t LiOH price assumption.
Gemfields Group (GEM LN) 12.5p, Mkt Cap £150m – Initial gold resource estimate for Nairoto project, Mozambique
- Gemfields has announced an inferred, JORC (2012) compliant resource of 1.58mt at an average grade of 2.02g/t gold hosting 103,000oz for its 75% owned Nairoto gold project located in Cabo Delgado, northern Mozambique.
- Nairoto is located “about 30 kilometres to the north of the MRM concession” where Gemfields mines rubies at its Montepuez mine.
- The estimate, prepared by the consultants, SRK Exploration, is based on “20 Reverse Circulation (“RC”) drillholes totalling 1,464 metres”.
- The resource relates to the ‘TL5’ Prospect area “covering less than 0.1 square kilometres of the full 1,957 square kilometre licence area”.
- Managing Director for Mozambique, Kartikeya Parikshya, welcomed the definition of the shallow resource hosted within 80m of the surface but confirmed that “our gold project remains outside of our core focus of responsibly mining and marketing coloured gemstones. Gold mining is not part of Gemfields’ long-term strategy and we will in due course, once we have further understood the resource, look for a purchaser or suitable partner for the project”.
Oriole Resources* (ORR LN) 0.36p, Mkt cap £13.4m – Chair purchases more shares as gold exploration progresses well in Cameroon
- Eileen Carr, Oriole’s Non-Executive Chair, has increased her stake in Oriole with the purchase of 6m new shares at 0.33p/shr.
- The new shares represent 0.15% of the issued share capital in Oriole.
- It takes her stake to 4.32% of the Company.
Conclusion: Oriole has been making strong progress in laying foundational exploration work in Cameroon having secured funding from BCM in the New Year. It is always encouraging to see management eating their own cooking and Oriole’s Chair continues to increase her holding in the Company. We refer to the linked Flash Note for the most recent update from Cameroon. Encouraging soil and pit sampling has yielded high priority gold targets and metallurgical results support the prospect of simple leach extraction. Oriole’s drilling programme at its more developed Bakassi licence is underway, with drill rigs mobilising to site. Two separate diamond campaigns are planned over 4,560m and 2,500m, aimed at defining and expanding the current 375koz JORC MRE.
*SP Angel acts as Broker to Oriole Resources
Phoenix Copper* (PXC LN) 21.5p, Mkt Cap £32m – Initial drawdown of copper bond funds
Phoenix holds 80% of the Empire mining property in Idaho)
- Yesterday afternoon, Phoenix Copper announced that it had received the first US$5m of its US$80m corporate copper bond reported on 15th May.
- The bond, “from NIU Invest SE … will be used to fully fund the construction of the Company’s Empire open pit mine in Idaho, USA for the production of copper, gold and silver”.
- Phoenix Copper is issuing ~33.9m shares and warrants over a further ~22.6m shares to NIU and the company says that “the Warrants will vest pro-rata over drawdown of the first US$30 million of Bonds, and remain valid for a period of five years from Initial Drawdown. Following the issue of the New Ordinary Shares, the Bonds Investor will have an interest in approximately 18.36% of the total issued share capital of the Company”.
- The principal shareholder of NIU Invest, Cevdet Caner, expressed support for Phoenix Copper saying that it “has solid fundamentals and experienced leadership and NIU Invest has great confidence in the team’s ability to deliver”.
- Chairman, Marcus Edwards-Jones described “NIU Invest … [as] … a strategic investor who shares our vision of creating a new clean metals producer in the western United States and has participated in this innovative form of financing linked to the copper price, giving us a clear path to production”.
Conclusion: The initial drawdown of funds from the recent copper bond is a milestone in the development of the Empire open-pit mine in Idaho.
*SP Angel acts as Nomad to Phoenix Copper
SolGold* (SOLG LN) 9.36p, Mkt Cap £272m – Cascabel Exploitation Contract secured
- Solgold reports the signing of the Exploitation Contract (EC) for the development of its Cascabel copper/gold project with the Government of Ecuador.
- The EC provides tenure for 33 years and is available for renewal if necessary for the full life of mine.
- The updated pre-feasibility study, released in February, currently envisages a 28-year mine life but it is helpful that the EC recognises the possibility that through that life extension opportunities may arise to continue operations.
- Today’s announcement explains that “the Government of Ecuador’s share of cumulative discounted benefits derived from SolGold’s Cascabel Project will be at least 50% … calculated as the present value of the cumulative sum of taxes paid, including corporate income taxes, royalties, labour profit sharing paid to the State, non-recoverable VAT, and any previous sovereign adjustment payments”.
- Solgold will make an advance payment of royalties amounting to US$75m with “the first payment of $25 million due upon the concentrator construction start date” . Two further payments, “each of $25 million, will be made on the first and second anniversary, respectively, from the date of the first payment”.
- The advance will be deductible against the normal royalties which will “follow a variable percentage rate from 3% to 8%, depending on the type of mineral and its price”.
- Solgold explains that “One of the most crucial principles that the EC develops is the autonomy and freedom of the Company to make its commercial decisions. The technical design of the mine, investment amount, production capacity, etc., are decisions of the Company and respond to its business strategy”.
- Describing the agreement as “a landmark achievement for SolGold”, CEO, Scott Caldwell, acknowledged that “his success would not have been possible without the invaluable collaboration and support from the Government of Ecuador, regional administrations, and local communities”.
- Diego Ocampo, Vice Minister of Mines stressed the Government’s support for “the Cascabel Project, which will bring substantial long-term benefits to our country’s economy and local communities through significant investment, job creation, and sustainable growth”.
- The pre-feasibility study describes an underground block-caving operation with an initial 28-year mine life generating an after-tax NPV8% of US$3.2bn and IRR of 24% from the production of an average of 123,000tpa of copper, 277,000ozpa of gold and 794,000ozpa of silver.
- The planned mine is based on a ‘Proven and Probable’ ore reserve of ~540mt at an average grade of 0.60% copper, 0.54g/t gold and 1.6g/t silver containing 3.2mt of contained copper, 9.4moz of gold and 28moz of silver with 85% of the reserve tonnage falling within the high-confidence, ‘Proven’ classification of the CIM reporting codes.
- The ore reserves are contained within 3.01bn tonnes of ‘Measured and Indicated’ resources at an average grade of 0.35% copper, 0.28g/t gold and 0.94g/t silver (reported as 0.52% on a copper equivalent basis) and we imagine that the conversion of at least some of these resources, and the possible identification of additional resources during the mining could trigger the need to extend the agreement beyond the initial 33 years term.
- Following a two-year ramp-up, the mine plan builds to producing 12mtpa of high-grade ore averaging 1.5% on a copper equivalent basis with a doubling of the production rate to 24mtpa in year 6.
- Costs, on a net basis after precious metals by-product credits, are estimated to average US$0.25/lb with life-of-mine costs on an all-in-sustaining (AISC) basis of US$0.69/lb and the project is expected to require a further US$2.57bn of sustaining capital during its life.
- Last month, Solgold announced that it was in discussion with potential financiers for the US$1.55bn development of Cascabel and now that the project has received its Exploitation Contract we look forward to further news on the progress of these talks.
Conclusion: The signing of the EC clears the way for the development of Cascabel and we look forward to further news on the financing discussions which were likely to have been conditional on the Exploitation Contract among other conditions.
*SP Angel acts as broker to Solgold
Versarien* (VRS LN) 0.085p, Mkt Cap £1.19m – Interims highlight growth in core product graphene sales
- Versarien Plc report results for the six months to end March 2024.
- Graphene revenues rose to £0.28m vs £0.09m yoy at the interim showing a marked pick up in sales in the group’s graphene products.
- Group revenues came in at £2.50m vs £2.62m yoy due to the sale of non-core units were sold off.
- Versarien continues to benefit from ongoing grant income with £200,000 received in H1 vs £60,000 yoy million)
- The group reduced its Loss before income, tax and depreciation to just £790,000 vs £2m yoy and £1m in H2 2023
- The plan is for the business to become EBITDAE positive in H2 2025.
- The total loss before tax was halved a the interim to £1.77m vs £3.40m last year
- Cash: stands at £700,000 vs £600,000 last September indicating better management of cash resources and the income from graphene and equipment sales.
- Progress:
- Versarien completed licensing agreements with MCK Tech in Korea for the exclusive licence of five CVD patents.
- MCK Tech also acquired Versarien’s South Korean CVD ‘Chemical Vapour Deposition’ plant and equipment for £604,000.
- The MCK deal allows Versarien to continue to work in graphene business in collaboration with MCK.
- Versarien are also supporting the development of international standards for graphene and 2D materials, funded by the Korea Evaluation Institute of Industrial Technology (KEIT) until December 2028.
- Montana Quimica LTDA in Brazil also signed a know-how and manufacturing licence agreement for the production of paints and wood finishing products.
- Building for Humanity: Versarien have also entered into a mutual letter of commitment to provide 3D concrete printed materials for social housing in Accrington, Lancashire.
- Stephen Hodge’s, the new CEO is part way through the group’s turnaround program re-focussing towards its core graphene technology in a manufacturing-light strategy.
- Ongoing interest in graphene licensing and know how along with progress in strategic relationships in core areas particularly construction including 3D concrete printing should continue to improve the business.
- Management will continue to drive technological advances while streamlining the business.
- The Chairman’s statement reports ongoing progress in the intended disposal of two of the group’s mature businesses with talks at an advanced stage.
- 3D construction printing: Versarien have recently delivered a “Physical and Mechanical Properties of 3D Printed Concrete” report to the Office for Product Safety and Standards to support the “Charter Street Accrington” social housing project led by Building for Humanity.
- The Accrington 3D housing construction project starts this year and should provide a good showcase of Versarien’s product capabilities.
Conclusion: Versarien is making good progress in the development and commercialisation of its graphene products. The business plan is evolving towards a mix of licensing partnerships focussing on CVD and 3D concrete materials. The business is making steady progress towards its goal of becoming EBITDAE positive in H2 2025.
*SP Angel acts as Nomad and Broker to Versarien
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The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020
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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.
| Sources of commodity prices | |
| Gold, Platinum, Palladium, Silver | BGNL (Bloomberg Generic Composite rate, London) |
| Gold ETFs, Steel | Bloomberg |
| Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt | LME |
| Oil Brent | ICE |
| Natural Gas, Uranium, Iron Ore | NYMEX |
| Thermal Coal | Bloomberg OTC Composite |
| Coking Coal | SSY |
| RRE | Steelhome |
| Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite, Rutile | Asian Metal |
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Where the investment is traded on AIM it should be noted that liquidity may be lower and price movements more volatile.
SPA, its partners, officers and/or employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s).
SPA is registered in England and Wales with company number OC317049. The registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP. SPA is authorised and regulated by the UK Financial Conduct Authority and is a Member of the London Stock Exchange plc.
MiFID II – Based on our analysis we have concluded that this note may be received free of charge by any person subject to the new MiFID II rules on research unbundling pursuant to the exemptions within Article 12(3) of the MiFID II Delegated Directive and FCA COBS Rule 2.3A.19.
A full analysis is available on our website here http://www.spangel.co.uk/legal-and-regulatory-notices.html. If you have any queries, feel free to contact our Compliance Officer, Tim Jenkins (tim.jenkins@spangel.co.uk).
SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return of less than 15%
