SP Angel Morning View -Today’s Market View, Tuesday 15th August 2023

Metal prices pull back on weaker than expected Chinese economic data

MiFID II exempt information – see disclaimer below

Amur Minerals* (AMC LN) – Update on cash shell as management reviews opportunities

Atlantic Lithium* (ALL LN) – Feldspar feasibility on production from Ewoyaa lithium mines

Andrada Mining (ATM LN) – Signing of US$25m funding package

Ariana Resources (AAU LN) – Kiziltepe drilling and forthcoming resources review

Celsius Resources* (CLA LN) – Feasibility study approval for the MCB project

Kenmare Resources (KMR LN) – Half year results, tender offer and increased dividend on sustained titanium product pricing

Lucara Diamonds (LUC CN) – Appointment of new CEO

Copper slides past June lows as China home sales continue to slide as debt crisis intensifies

• LME copper futures have slumped past $8,200/t following a release of Chinese data overnight.
• The slight cut in rates by the PBOC this morning has failed to provide ample support to copper prices.
• The Yuan continues to weaken against the dollar, adding further pressure
• Property investment in China reportedly fell for the 17^th consecutive month, down 17.8% yoy in July following a 28.1% decline in June.
• Sales by floor area fell for the 25^th straight month.
• The collapse of Country Garden, long-considered the more conservative peer of debt-laden Evergrande, has raised alarm bells across the developer sector.
• New construction starts by floor area fell 24.5% yoy in July, with developer funds raised falling 11.2% yoy.
• Missed payments by Zhongrong International Trust which has funnelled client funds into real estate, equities, bonds and commodities is seen as a major concern.
• The trust had >270 investment products with an average guaranteed rate to investors of close to 7%.
• In China as in the US, citizens must save for their retirement and healthcare with relatively little social support on offer turning the loss of funds into a disaster of long-term proportions
• China’s authorities will take this failure seriously as Zhongrong International Trust has been a substantial investor and lender into the real estate market which is also struggling to meet commitments.
• Buyers are said to be holding back on property purchases as prices fall and on concerns over the quality recently finished developments.
• John Browning of Bands financial in Shanghai says:
• “In the new build market, it’s the reluctance of buyers to place large deposits which are then used to complete projects is causing the developers liquidity and cash flow problems. Consequently, Country Garden sales in 1H 2023 are down 30% year on year. Buyers are wary and rightly so. The big building compounds come with sports facilities and swimming pools etc, which may come low down on the list of developers’ priorities to complete, deliver or maintain. Indeed, buyers may find the upper floors of their hi-rise residential building unfinished, or the build quality compromised through the use of cheaper materials. Either way, new-build buyers, may receive a lot less than advertised, so they are cautious.”

Gold slides as Treasury yields climb to November highs and dollar strengthens

• Gold prices are hovering around the key $1,900/oz mark, holding around $1,905/oz.
• The move lower has been supported by a continued sell-off in the US Treasury market, with 10-year yields pushing past 4.2%.
• Investors traditionally rotate from gold ETFs to Treasuries as yields climb, owing to both asset’s status as a safe haven.
• The dollar is also pressuring gold prices, with weakness in the JPY and CNY both providing support to the Greenback.
• The Yen is nearing ‘intervention range,’ at 145 per dollar, with the yield gap with the US continuing to rise, weighing on the Japanese currency.
• Today’s retail sales and tomorrow’s US FOMC minutes may provide a catalyst to gold in either direction.

Graphite market players expect China supply glut to ease, boosting import demand

• Bloomberg reports Syrah Resources’ CEO, Shaun Verner, anticipates that the graphite may be nearing an inflection point following a glut of Chinese synthetic supply.
• Syrah was forced to halt production in Mozambique earlier this year on high Chinese graphite inventories and weaker anode material demand.
• Verner notes the seasonality effect with Chinese graphite production, suggesting that year-end ‘demand tends to increase because there isn’t ongoing supply from Chinese operations.’
• He states that over the long term, China’s dominance in graphite ‘is also the biggest opportunity, because of the need for supply diversification from battery manufacturers and automakers outside China.’

Tin prices slide as stockpiles jump following Myanmar supply panic

• Tin futures are down 4% today at $25,325/t.
• Tin contango levels have risen to their highest level in two decades in nominal terms at $280/t, following extreme levels of backwardation earlier this year.
• Shanghai stockpiles are sitting at multiyear highs , with soldering demand weakening and buyers ramping up purchases in anticipation of the Myanmar Junta’s mining crackdown.

LGD ‘Lab Grown Diamonds’ – Pandora raises outlook as sales on LGDs rise

• Pandora, the Danish, multinational, jeweler has raised its sales outlook on rising LGD sales and margins
• The jeweller is pushing LGDs as more eco-friendly than mined diamonds though we wonder how this compares with the low carbon footprint of artisanal miners across Africa who will go increasingly hungry with lower natural diamond prices.
• Pandora plans to increase its LGD sales area into Mexico, Brazil and Australia with sales already in the US, UK and Canada
• Pandora is charging up to $4,450 for a 2-carat LGD stone.
• Pandora is focussed on affordable jewellery but the higher margins and 8.4% growth in the $6.6bn LGD market looks like too good an opportunity to miss.
• Consumers might be interested to know that the PLA of China is a major producer of LGDs through NORINCO which produces military equipment for the PLA and manufacturers LGDs for guided missiles radar, laser weapons etc… We suspect profits from LGDs are reinvested into military research.
• Norinco remains under US sanctions in relation to sale of missile related goods to Iran and the import of firearms and munitions into the US.
• LGDs are used to cool and protect missile components with diamond films used for infrared windows for guidance sensors.
• Pandora sells around 100m pieces of jewellery a year so let’s hope they are sure they are not buying any military offcuts.

VOX Markets:  

11/08/2023: https://audioboom.com/posts/8348497-john-meyer-on-china-deflation-atlantic-lithium-aterian-celsius-resources-cla

31/07/2023: https://audioboom.com/posts/8341813-john-meyer-on-lab-grown-diamonds-bushveld-minerals-power-metals-res-wh-ireland

*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts. We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate.

Economics

US – Donald Trump along with his top administration officials and associates were indicted in Atlandta yesterday on efforts to overturn the results of the 2020 election defeat in Georgia.

• This marks the fourth criminal case against the former president.
• The indictment includes Donald Trump and 18 other defendants charging involved with racketeering and other crimes.

China – Economic data released this morning disappoints with growth in industrial output consumer spending slowing down and coming in below market expectations.

• The National Bureau of Statistics said domestic demand remains “insufficient” and the “economy’s recovery foundation still needs to be strengthened”, Bloomberg writes.
• China needs to “step up macroeconomic policy adjustment, and focus on expanding domestic demand, lifting confidence and preventing risks,” the NBS said in a statement.
• The central bank cut its rate on its one year loans by 15b to 2.50%, in line with expectations.
• The move comes on the back of a series of weak economic data released earlier including numbers showing the economy is slipping into deflation, a sharp drop in exports and the lowest level of new loans since late 2009.
• That is the second rate cut this year following a 10bp reduction in June.
• The decision was announced shortly before the release of disappointing economic activity data for July.
• Industrial Production (%yoy): 3.7 v 4.4 June and 4.3 est.
• Retail Sales (%yoy): 2.5 v 3.1 June and 4.0 est.
• FAI (%yoy YTD): 3.4 v 3.8 June and 3.7 est.
• Property Investment (%yoy): -8.5 v -7.9 June and -8.1 est.

Authorities will “temporarily” stop publishing numbers of youth unemployment to review the methodology after the measure surges to record highs of more than 21%, FT reports.

• Some commentators reckon youth unemployment is substantially higher than the official figure.
• The government will continue to publish the overall unemployment rate, that was reported at 5.3% for July.

Japan – Growth beat estimates in the second quarter of the year as strong exports offset a contraction in consumer spending.

• Q2 GDP (%qoq, annualised): 6.0 v 3.7 (revised from 2.7) Q1/23 and 2.9 est.
• Q2 GDP (%qoq): 1.5 v 0.9 (revised from 0.7) Q1/23 and 0.8 est.

Germany – Investor sentiment remained subdued in August as measured by ZEW Institute.

• Heavily reliant on exports, the economy is struggling amid weakening overseas demand and tight monetary policy conditions.
• ZEW Expectations: -12.3 v -14.7 July and -14.9 est.
• ZEW Current Situation: -71.3 v -59.5 July and -63.0 est.

UK – Unemployment ticked up in June, albeit, accelerating wage growth points to a continuing tightness in the labour market.

• Average pay excluding bonuses increased 7.8% in the three months through June marking the highest increase since records began in 2001.
• The pound is little changed against the US$ on the news.
• Employment Change (‘000): 97 July v -9 June and -12 est.
• Av Weekly Earnings (3m %yoy): 8.2 v 7.2 (revised from 6.9) May and 7.4 est.
• Unemployment Rate (3m): 4.2 v 4.0 May and 4.0 est.

Russia/Ukraine – Nearly 30 missiles hit western areas of Ukraine overnight with only half of those intercepted.

• The strike left three people killed and several hospitalised according to preliminary reports Reuters writes.
• Russia’s central bank raised rates by 3.5pp to 12% in an extraordinary meeting on Tuesday to arrest a fall in the national currency.

Russia Rubbleises Ruble – Central bank to hold emergency meeting following collapse of the rouble

• The rouble passed 100/US dollar yesterday. Now 98/USD.
• Is this the beginning of the end of the Russian economy as we know it.
• Some had forecast the Russian economy to collapse in Q1 2024 under western sanctions despite strong discounted oil & gas exports to India and China.

Ukraine – German finance minister offers Ukraine verbal support on first visit since Russian invasion

• Lindner says Germany has provided Ukraine with €22bn in humanitarian, financial and military aid.

Norway – Torrential rain causes bridge collapse over the Laagen River as central bridge foundations gave way

Currencies

US$1.0922/eur vs 1.0949/eur yesterday. Yen 145.72/$ vs 144.89/$. SAr 19.188/$ vs 18.934/$. $1.270/gbp vs $1.270/gbp. 0.648/aud vs 0.650/aud. CNY 7.284/$ vs 7.255/$.

Dollar Index 103.04 vs 102.88 yesterday.

Commodity News

Precious metals:

Gold US$1,904/oz vs US$1,914/oz yesterday

Gold ETFs 90.6moz vs US$90.7moz yesterday

Platinum US$898/oz vs US$916/oz yesterday

Palladium US$1,259/oz vs US$1,303/oz yesterday

Silver US$22.52/oz vs US$22.72/oz yesterday

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

Base metals:

Copper US$ 8,275/t vs US$8,304/t yesterday

Aluminium US$ 2,158/t vs US$2,154/t yesterday

Nickel US$ 19,980/t vs US$20,220/t yesterday

Zinc US$ 2,346/t vs US$2,357/t yesterday

Lead US$ 2,098/t vs US$2,105/t yesterday

Tin US$ 25,000/t vs US$25,595/t yesterday

Energy:           

Oil US$86.3/bbl vs US$86.4/bbl yesterday

• Crude oil prices were stable after China reported strong refinery output in July, despite industrial output and retail sales data pointing to slower m/m growth.
• Chesapeake Energy agreed to sell its remaining liquids-rich Eagle Ford assets to SilverBow Resources for $700m plus $50m contingent on prices, which generated 29kboe/d (60% liquids) and $50m EBITDAX in 2Q23.

Natural Gas US$2.858/mmbtu vs US$2.799/mmbtu yesterday

Uranium UXC US$56.75/lb vs US$56.75/lb yesterday

Bulk:   

Iron ore 62% Fe spot (cfr Tianjin) US$100.1/t vs US$102.2/t

Chinese steel rebar 25mm US$508.7/t vs US$513.3/t

Thermal coal (1st year forward cif ARA) US$123.0/t vs US$123.0/t

Thermal coal swap Australia FOB US$153.8/t vs US$149.5/t

Coking coal swap Australia FOB US$236.0/t vs US$236.0/t

Other:  

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

NdPr Rare Earth Oxide (China) US$65,422/t vs US$65,677/t

Lithium carbonate 99% (China) US$32,059/t vs US$33,149/t

China Spodumene Li2O 6%min CIF US$3,460/t vs US$3,560/t

Ferro-Manganese European Mn78% min US$1,043/t vs US$1,046/t

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

China Graphite Flake -194 FOB US$675/t vs US$675/t

Europe Vanadium Pentoxide 98% 7.6/lb vs US$7.6/lb

Europe Ferro-Vanadium 80% 31.85/kg vs US$31.85/kg

China Ilmenite Concentrate TiO2 US$310/t vs US$311/t

Spot CO2 Emissions EUA Price US$93.5/t vs US$91.3/t

Brazil Potash CFR Granular Spot US$345.0/t vs US$345.0/t

Battery News

New concrete could be breakthrough way to store electricity

• British scientists have developed a new concrete that is construction safe but can store electricity in what could be a breakthrough in energy storage.
• The technology means that walls could be used to invisibly store energy from renewables without the need for banks of lithium batteries.
• Energy storage is currently one of the biggest barriers to renewable energy – the greater the proportion of the electricity they provide, the more risk this poses to blackouts across the grid.
• The concrete works using potassium ions, in a fly ash additive – the ions move through the crystalline structure during charging and accumulate on one side.
• Energy storage is significantly less by volume than a traditional battery, but there is a lot more volume available.

Global EV sales of 1.1m units for July 2023 up 39% yoy

• Last month’s sales saw total sales of Passenger Cars and Light-duty vehicles reach 7m in 2023.

US EV startup, Nikola, recalls all battery-electric trucks after recent fires

• The automaker said on Friday it was recalling all the battery-powered electric trucks that it has delivered to date and is suspending sales after an investigation into recent fires found a coolant leak inside a battery pack as the cause.
• 209 battery-powered electric trucks in the marketplace will be recalled.
• Struggling with supply chain bottlenecks and weaker demand, Nikola only makes battery-electric trucks only to order and has switched its focus to hydrogen fuel cell trucks.

Company News

Amur Minerals* (AMC LN) 0.125p, Mkt Cap £2m – Update on cash shell as management reviews opportunities

• Amur provides an update on its acquisition/reverse takeover process following the disposal of the AO Kun-Manie project.
• As an AIM Rule 15 cash shell, Amur is required to either acquire an asset pursue an AIM Rule 14 RTO.
• Amur is reviewing a number of RTO opportunities and will update the market when appropriate.
• If Amur fails to complete a necessary transaction by September 7^th, the Company will be forced to suspend.
• They will subsequently have six months to complete the necessary transaction, or the shares will be cancelled on 8^th March 2024.

*SP Angel act as Nomad and Broker to Amur Minerals

Atlantic Lithium* (ALL LN) 20.3p, Mkt Cap £123m – Feldspar feasibility on production from Ewoyaa lithium mines

(Piedmont can earn into up to 50% of the Ewoyaa lithium project through the expenditure of around 70% of the project capex)

• Atlantic Lithium have signed an MOU for a feasibility study into the production of by-product feldspar from the Ewoyaa lithium mine.
• The MoU is for a DFS on the by-product feldspar with The University of Mines and Technology at Tarkwa, Ghana
• The DFS will consider the potential market for feldspar, quartz (silica) and muscovite, by-products from the Ewoyaa process plant which could feed into Ghana’s ceramics sector.
• The DFS should determine:
  • The market for weathered (Kaolin) and fresh feldspar in Ghana and its surrounding nations;
  • The technical feasibility of processing feldspar in Ghana;
  • A comprehensive financial model to indicate potential costs and revenues;
  • A risk analysis and the identification of risk mitigation measures.
• Feldspar resource: The team have already started analysis for sodium in the pegmatite over the Ewoyaa Main, Ewoyaa South-2 and Ewoyaa North-East deposits.
• It should be relatively simple to sample existing cores and reverse circulation chippings for the quality and quantity of the feldspar contained for a resource.
• Production of feldspar from the Ewoyaa plant should help growth in the ceramics industry in Ghana while adding value to the Ewoyaa project.
• The local production of feldspar could feed into local producers who have historically contributed 1-2% of Ghanian GDP and employed a significant workforce.

Conclusion: The supply of local feldspar along with a new and more reliable power supply could help regenerate the once, thriving Ghanian ceramics industry to recreate jobs and support related services.

*SP Angel acts as Nomad to Atlantic Lithium. Two mining analysts from SP Angel recently visited the Ewoyaa mine site in Ghana and drove onto Takoradi to check the quality of the road to port and see the infrastructure for the potential new Livista refinery site. Our intrepid analysts also visited the Ministry of Minerals Commission and MIIF, the Ghana Minerals Income Investment Fund.

Andrada Mining (ATM LN) 6.75p, Mkt cap £105m – Signing of US$25m funding package

• Andrada Mining reports that it has signed the previously announced US$25m funding package with Orion Resource Partners.
• The funding comprises:
  • US$2.5m of equity at 6.39p/share; and
  • US$10.0m of Convertible Loan Notes at a 12%interest rate with a 4 year term convertible at a price of 9.45p/share; and
  • US$12.5m as an unsecured tin royalty “for the sole purpose of increasing Andrada’s tin production as it ramps up its capital programmes over the next 2 years”.
• The company says that it expects the funding to be “completed around the end of September 2023”.
• Andrada Mining also confirms that the “financing facility from the Development Bank of Namibia also remains on track with drawdown of funds expected in due course pending satisfaction of final conditions”.
• CEO, Anthony Viljoen, said that “the Orion financing agreement will provide sufficient capital to complete our expansion programmes at our flagship Uis operation”.
• He also confirmed that it “will expedite our lithium implementation programme, expand our tin production, and concurrently bring a highly respected new investor onto our register”.
• Mr. Viljoen also explained that “the conclusion of the Development Bank of Namibia c.US$5.8 million debt facility will further provide considerable strength to the Company’s balance sheet”.
• Commenting on behalf of Orion, Managing Partner, Philip Clegg, said that “We regard Andrada as a high-quality investment opportunity presenting extensive optionality, with a series of value-creative projects across multiple future-facing commodities. We are excited to begin our partnership with Anthony and his team”.
• The Orion financing is subject to the approval of Andrada Mining’s shareholders at a forthcoming meeting.

Ariana Resources (AAU LN) 2.6p, Mkt Cap £29m – Kiziltepe drilling and forthcoming resources review

• Ariana Resources has described the progress of its drilling at its 23.5% owned Kiziltepe mine in Turkey.
• The company says that its recent drilling has “defined the likely economic limits of the known vein systems” at Kiziltepe and identified “some additional resource upside … particularly at the northwest ends of both Arzu South and Arzu North”.
• Geophysical surveying has “identified several priority drilling targets, one of which lies beneath cover to the northeast of the Arzu vein system and is currently under review to design a well-planned deep drilling programme. This has the potential to represent a capped vein system, which has been preserved beneath cover”.
• In addition, drilling “remains underway at Karakavak, with progression onto Kepez and with a separate programme ongoing at Kizilcukur”.
• Noting that “Successive drilling programmes conducted in recent years … [at the Kiziltepe mine] … have already yielded success, extending mine life at a time when milling capacity was doubled … [Ariana Resources says that] … Opportunities to further extend mine life to nine years, through to 2025, and potentially beyond are being assessed”.
• Managing Director, Dr. Kerim Sener, said that the company is “now looking to identify additional resources in the wider area and at several satellite locations such as Kizilcukur and Ivrindi. In addition, we remain excited by the potential for further discovery at Kepez, and we are now preparing for a new drilling programme to test this area appropriately”.
• He confirmed that “Once the drilling programmes across the Kiziltepe Sector are completed, including the active programmes in the Karakavak and Kepez areas and the programme recently started at Kizilcukur, we will be undertaking a further review and reassessment of our resources and reserves”.
• Conclusion: Successful exploration at Kiziltepe has already extended the life of Kiziltepe beyond the original plan despite increasing the plant capacity.  With additional targets currently being drilled and geophysics identifying further potential areas for investigation, we look forward to the review of mineral resources and reserves.

Celsius Resources* (CLA LN) 0.7p, Mkt Cap £16m – Feasibility study approval for the MCB project

Click Link for SP Angel research report PDF note – MCB project NPV@8% US$463m, IRR of 34.3%

BUY

• Celsius Resources has announced that its Feasibility Study for the development of the MCB copper/gold project in the Philippines has been approved by the Mines and Geosciences Bureau opening the way for a mining permit to be issued and a Mineral Production Sharing Agreement (MPSA) with the Government.
• The Mines and Geosciences Bureau’s ratification that the project is “technically and economically feasible after consideration of the environmental, social, and fiscal requirements prescribed under the Philippine Mining Act of 1995” is an important milestone for the project and is the latest of a series of 7 approvals detailed in today’s announcement including the Environmental plan and the plan for the final rehabilitation and closure arrangements which were approved earlier this year.
• The company’s plan envisages development of the 338mt resource at MCB over a 25 year mine life as “an underground mining operation and processing facility to produce a saleable copper-gold concentrate”.
• Initial investment of US$253m is expected to deliver an after-tax NPV8% of US$464m and IRR of 31% at a copper price of US$4.00/lb (~US$8,800/t) and a gold price of US$1,695/oz.
• The plan is to process an average of around 2.3mtpa of ore at an average grade of 1.14% copper and 0.54g/t gold during the initial 10 year of the project delivering cash costs of cash costs of US$0.73/lb net of gold credits.
• An offer from the Canadian company Silvercorp Metals to acquire Celsius Resources recently fell away as the terms offered ““did not have reasonable prospects of being approved by the requisite majorities of shareholders at the initial proposed price” of A$0.03/share.
• Celsius Resources will now require alternative finance to develop the MCB project, however, there is a global scarcity of development ready copper projects and a growing awareness of impending demand growth to supply carbon reduction technologies which recently saw the US Department of Energy add copper to its ‘Critical Minerals’ list.
• Welcoming the approval, Chairman, Julito Sarmiento, thanked the Philippines authorities for “creating a supportive and favourable climate for the mining companies in the Philippines while ensuring that we adhere to the national standards on responsible mining”.

Conclusion: Approval of the MCB project feasibility study is an important milestone towards project development and we look forward to news of mining permit approval and agreement of the MPSA.

*SP Angel acts as broker to Celsius Resources.

Kenmare Resources (KMR LN) 430p, Mkt Cap £408m – Half year results, tender offer and increased dividend on sustained titanium product pricing

• Titanium minerals and zircon producer Kenmare reports interim results for the six month period to 30^th June 2023.
• Kenmare operates the Moma Titanium Minerals Mine in Mozambique.
• Mineral product revenue rose 26% yoy, following a 31% rise in shipments after drawing down finished product stockpiles.
• Heavy Mineral Concentrate production at 633.9kt, down 14% yoy following a combination of the lightning strike impacts and lower grades.
• Kenmare have removed the need for trucking of HMC to the Mineral Separation Plant, utilizing pumping instead.
• Recoveries of ilmenite in the HMC at the WCP B has been noted.
• Finished product production for the period was 472.6kt, down 10% vs 1H22.
• Total shipments jumped 31% to 556.8kt vs same perio last year.
• Cash operating costs for ilmenite rose to $137/t, up 25% vs same period last year.
• Total cash operating cost for finished product at $230/t, up 25% as production fell and sector-wide cost inflation came into effect.
• EBITDA for the period was $110m, up 6% vs same period last year.
• The Company increases its interim dividend by 59% and is initiating a $30m tender offer to purchase 5.9% of the issued share capital.
• Titanium Product Market
  • Kenmare notes sustained strength in product demand over 1H23, with ilmenite prices steady.
  • Zircon and rutile products noted slightly higher vs 1H22.
  • Zircon demand is being hit by lower ceramic production, despite weakening spot prices to China and India.
  • Overall, an average price decrease was reported over the period for Kenmare, owing to their increased shipments of ilmenite.
  • Management notes weak downstream titanium pigment demand out of China, stating that ‘lower global demand for titanium pigment is likely to continue in the short term.’
  • However, they state, as regards Chinese ilmenite demand, that ‘continued disruption to and depletion of supply means that underlying market fundamentals remain supportive.’

Lucara Diamonds (LUC CN) C$0.38, Mkt Cap C$173m – Appointment of new CEO

• Lucara Diamonds reports its intention to appoint William Lamb as CEO and President to replace the co-founder, Eira Thomas who has fulfilled these roles since 2018.
• Mr. Lamb, who is well known in the diamond industry “has over 25 years’ experience in mining project development and operations … [and served] … as Chief Executive Officer of Lucara Diamond Corp. from May 2011 to February 2018 … [where he] … was responsible for the highly successful construction of the original Karowe mine and its facilities”.
• Additional diamond industry experience includes “projects, process engineering and operations with De Beers”.
• Investors should note that William Lamb recently led ‘Newgen Resources Lending’ which held loan notes over Rambler Metals & Mining and the Ming Mine.
• We believe, the non-cooperation of the loan note holders ultimately led to the closure of the Rambler Metals & Mining Ming Mine.
• Paul Conibear, Chair of Lucara, acknowledged Eira Thomas’s “leadership and the integral role she has played in the success of the Karowe Diamond Mine”.
• He applauded her “commitment, excellent team leadership skills, focus on operational excellence and her ability to see how innovation and technology can be harnessed to strengthen our Company … [which, he said] … have been invaluable”.

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                                                            

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35-39 Maddox Street London

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

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

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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%