SP Angel Morning View -Today’s Market View, Tuesday 17th June 2025

Gold slides further amid waning haven demand

MiFID II exempt information – see disclaimer below

Andrada Mining (ATM LN) – Sourcing additional tin ore feed close to the Uis mine, Namibia

Atlas Metals Group (AMG LN)  – Acquisition of Pozzolanic Silica Alumina Project

Arkle Resources* (ARK LN) – Encouraging drilling at Stonepark with Group Eleven

Augusta Gold (G CN) – EXIM US$50m LOI

Barrick Gold (B US) – Arbitration update following Loulo-Gounkoto provisional administration

Celsius Resources (CLA LN) – Loan drawdown for the MCB project, Philippines

Critical Metals (CRML US) – EXIM US$120m LOI

East Star Resources (EST LN) – Drilling underway at Rulikha, Kazakhstan

Giyani Metals (EMM CN) – EXIM US$225m LOI

Kavango Resources* (KAV LN) – Assays from Steenbok (Prospect 4) at the Hillside Gold project in Zimbabwe

Metals One (MET1 LN) – Wyoming uranium exploration

Phoenix Copper* (PXC LN) – Looking forward to developing the Empire open-pit copper project

Rainbow Rare Earths (RBW LN) – Rainbow start Economic Assessment on Uberaba phosphate tailings project in Brazil with Mosaic

Strategic Minerals* (SML LN) – Final results emphasise improved fortunes at Cobre and a renewed emphasis on Redmoor

The Metals Company (TMC US) – Strategic equity investment from Korea Zinc

Zinnwald Lithium (ZNWD LN) – £3.2m equity raise

Gold ($3,378/oz) slides further amid waning haven demand

• Gold prices fell further from the $3,450/oz mark, just off the April 2025 record highs.
• Gold has been consolidating higher, having broken out of its recent $3,320/oz range on escalating conflict in the Middle East.
• Traders reduced gold bets on a WSJ article stating Iran is open to ceasefire discussions.
• However, hostilities continue, with Israel eliminating Ali Shadmani, a top level official who replaced his predecessor two days ago after his death on Friday.
• Discussions over the US’ future involvement in the conflict continue, with Trump stating he is ‘working on something bigger’ than a ceasefire.
• Oil prices have risen slightly this morning, suggesting the likelihood of de-escalation is fading.
• Treasuries are seeing limited haven demand inflows, with the 10 Year yield holding above 4.3%.
• The dollar is green this morning, but remains around 2022 lows, supporting gold prices.

US EXIM bank signs raft of LOIs

• Augusta Gold  – EXIM US$50m LOI
• Critical Metals  – EXIM US$120m LOI
• Giyani Metals  – EXIM US$225m LOI

Trade IG: Trading Experiences with Angeline Ong: 

 Vox Markets: Mining Matters: https://www.voxmarkets.co.uk/articles/mining-matters-sp-angel-s-john-meyer-on-commodities-capital-and-change-7c82c6d/

SharePickers: Copper – We’ve Never Seen This Before in the World: Video: 

Podcast: https://audioboom.com/channels/4099560-the-sharepickers-podcast-with-justin-waite

Economics

US – President Trump leaves G7 summit early as tensions in the Middle East rise.

• Speaking to journalists, Trump said he needed to be in Washington to help manage the US response to the crisis.
• Earlier, Trump issued increasingly hawkish statement directed at Iran and urged US citizens to evacuate from Tehran.
• Two day FOMC meeting kicks today with estimates for the Fed expected to keep rates unchanged at 4.25-4.50%.
• NY Fed’s Empire State manufacturing index fell to -16 in June vs -9.2 in May and vs +20 in November ’24

Japan – The central bank leaves rates unchanged at 0.5% while forecasting to reduce its withdrawal from bond the bond market in a sign of caution over increased market volatility.

• The pace of monthly bond purchases will be reduced from next fiscal year starting April 2026.
• Monthly rate will come down to JPY200bn from current JPY400bn.
• The rate decision was largely expected while 2/3 of Bloomberg survey respondents expected the BOJ to slow its reduction in bond purchases.
• The yen was little changed this morning with yields on short term bonds rising slightly and on super long debt moving a touch lower.

EU – Q1 labour cost index rose 3.4% yoy vs 3.8% in Q4

• Wage growth rose 3.4% yoy vs 4.1% yoy

Currencies

US$1.1552/eur vs 1.1571/eur previous. Yen 144.76/$ vs 144.36/$. SAr 17.841/$ vs 17.866/$. $1.356/gbp vs $1.358/gbp. 0.653/aud vs 0.650/aud. CNY 7.184/$ vs 7.181/$

Dollar Index 99.12 vs 99.12

Precious metals:         

Gold US$3,388/oz vs US$3,412/oz previous

Gold ETFs 89.0moz vs 88.9moz previous

Platinum US$1,246/oz vs US$1,237/oz previous

Palladium US$1,030/oz vs US$1,044/oz previous

Silver US$36.4/oz vs US$36.4/oz previous

Rhodium US$5,475/oz vs US$5,575/oz previous

Base metals:   

Copper US$9,710/t vs US$9,679/t previous

Aluminium US$2,520/t vs US$2,506/t previous

Nickel US$15,005/t vs US$15,265/t previous

Zinc US$2,655/t vs US$2,643/t previous

Lead US$1,988/t vs US$1,996/t previous

Tin US$32,560/t vs US$32,750/t previous

Energy:           

Oil US$73.9/bbl vs US$74.7/bbl previous

• Energy prices stabilised as fears of an escalation in the Israel-Iran conflict impacting global energy flows receded.
• The IEA’s June oil market report marginally revised global oil demand growth forecasts of ~0.73mb/d in 2025 and 2026 that is more than offset by oil supply growth of 1.8mb/d to 104.9mb/d in 2025 and by 1.1mb/d in 2026.
• OPEC’s June monthly oil report expects non-OPEC+ oil supply growth of 0.8mb/d in 2025 and 0.7mb/d (down 70kb/d m/m) in 2026 mainly from the Americas, with global oil demand y/y growth unchanged at +1.3mb/d.
• An environmentalist group’s report (link) estimates that the 65 largest global banks increased fossil fuel financing by 23% to $869bn in 2024, bucking two years of double-digit declines as several banks walked back on prior climate commitments and ESG pledges.

Natural Gas €38.5/MWh vs €38.4/MWh previous

Uranium Futures $75.5/lb vs $69.8/lb previous

Sprott Physical Uranium Trust doubled its planned raise to US$200m sending uranium stocks higher.

• The trust will use proceeds to acquire physical uranium in the form of uranium oxide in concentrated and uranium hexafluoride.

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$94.5/t vs US$95.2/t

Chinese steel rebar 25mm US$461.6/t vs US$462.0/t

HCC FOB Australia US$178.0/t vs US$180.5/t

Thermal coal swap Australia FOB US$108.8/t vs US$110.3/t

Other:  

Cobalt LME 3m US$33,335/t vs US$33,335/t

NdPr Rare Earth Oxide (China) US$61,808/t vs US$61,413/t

Lithium carbonate 99% (China) US$8,366/t vs US$8,369/t

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

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

China Tungsten APT 88.5% FOB US$418/mtu vs US$418/mtu

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

Europe Vanadium Pentoxide 98% US$5.0/lb vs US$5.0/lb

Europe Ferro-Vanadium 80% US$24.6/kg vs US$24.6/kg

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

Global Rutile Spot Concentrate 95% TiO2 US$1,687/t vs US$1,687/t

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

Brazil Potash CFR Granular Spot US$362.5/t vs US$362.5/t

Germanium China 99.99% US$2,865.0/kg vs US$2,865.0/kg

China Gallium 99.99% US$400.0/kg vs US$400.0/kg

Battery News

US Senate Republicans pushing to remove $7,500 EV tax credit

• The US Senate Republicans have proposed a tax-and-budget bill that would eliminate the $7,500 credit on the sale of new EVs 180 days after it is signed into law.
• The credit would also be immediately terminated for leased EVs manufactured outside of North America.
• Republicans are continuing to target EVs in a variety of ways, reversing former president Joe Biden’s policies that encouraged the use of EVs and renewable energies to combat climate change and reduce emissions.
• Last week, President Donald Trump signed a congressional resolution to block California’s historic plan to stop selling gasoline-only cars by 2035.

Chinese automakers continuing to pull away in global zero-emission vehicle market

• Chinese automakers are rapidly pulling ahead in the global zero-emission vehicle (ZEV) market, according to the latest research from research firm International Council on Clean Transportation (ICCT).
• China now accounts for over 11m EVs sold annually, which is more than half of global EV sales, ICCT said.
• China-based automakers hold 5 of the top 6 positions for EV sales share, with companies like Geely and SAIC already reaching 50% EV sales share achieving their 2025 goals a year sooner than planned.
• BYD exceeded Tesla in global battery electric vehicle (BEV) sales for the first time in 2024, with a 25% increase in BEV sales and 47% increase in combined BEV and plug-in hybrid electric vehicle (PHEV) sales compared to 2023.

Company News

Andrada Mining (ATM LN) 2.9p, Mkt Cap £48m – Sourcing additional tin ore feed close to the Uis mine, Namibia

• Andrada Mining reports that it has agreed to source additional tin ore from a tin deposit at Goantagab close to its Uis mine in Namibia.
• The deposit “was extensively drilled by Gold Fields Namibia in the 1980’s confirming, at the time, a non-JORC compliant resource with tin grades of greater than 1%”.
• Gold Fields reported “an initial non-JORC compliant resource at Goantagab of over two million tonnes with an average grade of 0.95% tin … [including] …  higher tin grade zones of up to 1.75%”.
• The company explains that the “relatively high historic tin grades position this deposit as a potential source of high-margin feedstock that is expected to materially enhance throughput at Uis”
• “Andrada has the option to acquire 100% of Goantagab Mining shares for USD15 million subject to certain conditions”.

Atlas Metals Group (AMG LN) 20p, Mkt Cap £1.4m – Acquisition of Pozzolanic Silica Alumina Project

• Atlas Metals has signed a LOI to acquire Universal Pozzolanic Silica Alumina (UPSA).
• UPSA’s reserve in Australia holds 250mt worth of extraction rights held by the Company’s partner, William Clift.
• Clift also holds a further 1.35bnt of PSA reserves, which UPSA will have the rights to extract.
• Company reports that UPSA is in discussions with several off-takers on a non-binding basis to supply up to 270kt of PSA.
• Pozzolanic Silica Alumina is used to reinforce concrete and provides a lighter alternative to cement clinker.
• Acquisition Terms:

• • Atlas shareholders to secure a minority interest in the Enlarged Group.
  • The Acquisition would constitute a reverse takeover.
  • Conditional on approval by Atlas Shareholders
  • Enlarged Group to publish a prospectus
• Elsewhere, Atlas has sold its Gold Ridge asset in Arizona for US$550k in cash.

Arkle Resources* (ARK LN) 0.35p, Mkt Cap £2m – Encouraging drilling at Stonepark with Group Eleven

• Arkle provides an update from its 22.4% owned Stonepark Zinc Project in Ireland.
• The Company is in JV with Group Eleven at Stonepark, who drilled three holes in 2024 at the Carrickittle West area of the licence package.
• The JV has now identified a large breccia body, which lies across the Stonepark licence.
• Carrickittle West lies near Glencore’s Pallas Green deposit which hosts an MRE of 45.4mt at 8.4% Zn+Pb.
• The recently identified Kilteely Prospect lies across Arkle’s Stonepark JV and Group Eleven’s PG West.
• G11-450-04

• • Planned to test north side of Kilteely fault, intersected the south side which held dolomite similar to Ballywire (Group Eleven’s discovery) and breccias similar to those hosting mineralisation at Pallas Green and Lisheen.

• G11-449-03

• • Intersected Waulsortian Limestone similar to that seen at Ballywire, with indications of hydrothermal fluid flows.

• G11-2531-02

• • Similar pyritic brecciation seen at Stonepark discovery

• Group Eleven intends to drill one hole in 2025 and additional holes in 2026 to target the Kilteely prospect.

Conclusion: The Stonepark JV has furthered their understanding of the licence via the drilling of three additional holes at Stonepark. This has identified an encouraging prospective base metals target, named Kilteely. This has shown a large breccia body with geological similarities to mineralisation seen at Glencore’s Pallas Green.

*SP Angel acts as Nomad and Broker to Arkle

Augusta Gold (G CN) C$1.0, Mkt Cap C$84m – EXIM US$50m LOI

• The Company received an LOI from the US Export-Import Bank to an up to US$50m for the Reward Gold Project, Nevada, US.
• US EXIM is the official Export Credit Agency to the US government.
• The Reward Project is a fully permitted and construction ready gold project in Nye County, Nevada.
• 2024 FS envisaged a conventional open pit heap leaching operation running at ~39kozpa over 8y LOM.
• Reward Reserves are estimated at 15mt at 0.86g/t for 370koz.
• Development capital cost estimated at $90m.
• There is a potential to integrate the operation with the larger Bullfrog project located 11km to the NW.
• Bullfrog hosts 71mt at 0.53g/t for 1.2moz in Measured and Indicated and 17mt at 0.48g/t for 0.3moz in Inferred resource categories.

Barrick Gold (B US) $29, Mkt Cap $50bn – Arbitration update following Loulo-Gounkoto provisional administration

• Barrick reports an update on its arbitration process with the State of Mali.
• Barrick has submitted a request for provisional measures to safeguard its rights under the Mining Conventions with the State of Mali.
• The State of Mali yesterday placed Loulo-Gounkoto under provisional administration, with operational control transferred to an external administrator.
• Reuters reports Loulo-Gounkoto will be operated by former Malian health minister for six months.
• Barrick states it ‘cannot accept terms that would compromise the legal integrity or long-term viability of the operations.’
• Barrick employees remain detained by the State of Mali.
• Loulo has been suspended since January and had contributed c.15% of the group gold production, also one of its highest margin assets.
• Barrick and Mali have been in negotiations since 2023 over the transfer to the new mining code.
• Barrick’s Loulo licence is set to expire in February 2026 (Reuters).

Celsius Resources (CLA LN) 0.33p, Mkt Cap £10.2m – Loan drawdown for the MCB project, Philippines

• Celsius Resources reports its first drawdown of its previously announced ‘OLSA loan’ to progress the updating of the Feasibility study for its at its Maalinao-Caigutan-Biyog (MCB)Copper-Gold Project located on Luzon approximately 320km north of Manila.
• The project hosts a December 2022 “JORC compliant Mineral Resource Estimate … [of] … 338 million tonnes @ 0.47% copper and 0.12 g/t gold” with a planned mine life of 25 years treating 2.25mtpa of ore. to produce an average of around 16,000tpa of copper and 19,000oz pa of gold.
• A 2021 study on the project described an initial investment of US$253m delivering a post-tax NPV_8% of US$464m and an IRR of 31%. The study was based on assumed copper price of US$4:00/lb (~US$8,800/t – currently ~US$9,700/t) and a gold price of US$1,695/oz (currently ~US$3,400/oz).
• Executive Chairman, Julito R Sarmiento, welcomed the initial drawdown and said that “Increasing our focus on the MCB Project will help us deliver long-term value for shareholders, while advancing a sustainable development approach that supports both the community and the environment”.
• Today’s announcement also confirms that Celsius Resource is making progress with “the disposal of the Company’s projects in Namibia and Australia”.
• The company recently announced that it was starting start a programme of geotechnical and hydrogeological drilling aimed at helping “to generate detailed subsurface models and data to further optimise the underground mine plan, process plant layout, and surface infrastructure design” of the MCB project.

Conclusion: Initial drawing of the loan and the recently started geotechnical and hydrogeological drilling is an important step in the development of the MCB project providing design data to the updated feasibility study and front-end engineering design phases of the project.

Critical Metals (CRML US) US$3.0, Mkt Cap $314m – EXIM US$120m LOI

• The Company received an LOI from the US Export-Import Bank for the Tanbreez rare earths project in Greenland.
• The loan considered is up to $120m and a 15y repayment schedule.
• The Company owns a 42% interest in the Project with European Lithium holding a 7.5% stake in the Project.
• The Company has an option to take its stake to 92.5% upon spending $10m.
• European Lithium holds ~68% interest in Critical Metals.
• 2016 MRE was estimated at ~45mt at 0.38% TREO including ~27% HREE with the main REE hosting mineral is eudialyte.
• Wolfsberg Lithium Project in Austria is another asset of the Group.
• The FS stage project hosts ~12mt at 0.64% Li2O in the underground reserve and ~13mt at 1.00% Li2O in total resource.

East Star Resources (EST LN) 1. 3p, Mkt Cap £5.8m – Drilling underway at Rulikha, Kazakhstan

• East Star Resources confirms the start of drilling at its Rulikha volcanogenic massive sulphide copper target in eastern Kazakhstan.
• The first hole “is targeting the northern most IP anomaly (in the approximately 1,550m west to east and 1,040m north to south anomaly) immediately north of the Rulikha Deposit” with mineralisation expected to start around 100m below surface and currently remaining open at depth.
• Once the drilling at Rulikha is completed, “the rig will move to the Talovskoye target”.
• CEO, Alex Walker, explained that “We’re now ready to find out if the Rulikha Deposit continues to the north, creating another significant deposit in the East Region”.
• Earlier this month, East Star Resources raised equity in an oversubscribed offer stating that they would be used to “provide cost-effective optionality to immediately expand the current drilling programme at Rulikha, Talovskoye and Verkhuba, subject to drill results from each target”.

Giyani Metals (EMM CN) C$0.1, Mkt Cap C$26m – EXIM US$225m LOIfor the

• The Company received an LOI from US Export-Import Bank e K.Hill Battery-Grade Manganese Project in Botswana.
• The LOI includes an up to US$225 million long-term debt with a repayment period of up to 15 years for construction of the Project.
• A key requirement to secure binding terms for the EXIM funding is agree offtake contracts with US companies.
• The Company is using proprietary hydrometallurgical process to produce battery grade manganese (HPMSM and HPMO), a lithium ion battery cathode precursor material for EVs and ESS.
• The team is commenced offtake discussions and is working on a FS that is expected to be completed 1Q26.

Kavango Resources* (KAV LN) 0.94p, Mkt Cap £29m – Assays from Steenbok (Prospect 4) at the Hillside Gold project in Zimbabwe

• Kavango Resources report High-grade assays from Steenbock, Prospect 4 at the Hillside Gold project in Zimbabwe
• Kavango has drilled another 3,232m at the prospect on the back of previous high-grade mineralisation seen in drill hole SKDD001 reported in April 2024 of 2.53m @ 29.08g/t.

• • 7 out of 8 holes intersected gold mineralisation.
  • 41 intersections carried >1g/t gold with 69 gold intersections at >0.7g/t gold.

• Drilling targeted 400m of strike out of a potential strike length of up to 1.5km at Prospect 4.
• Best holes reported:
• SKDD002:

• • 1.5m @ 5.41g/t from 76m inc. 0.8m @ 7.25g/t Au from 76.7m,
  • 2m @ 6.36g/t Au from 81m,
  • 1.25m @ 7.72g/t Au from 122.16m (including 0.4m @ 19.29g/t Au).

• SKDD002B:

• • 1m @ 9.28g/t Au from 9m,
  • 1m @ 3.19g/t Au from 88m,
  • 1.7m @ 2.44g/t from 165.3m,
  • 1m @ 2.94g/t Au from 268m.

• SKDD004:

• • 2m @ 1.37g/t Au from 359m.

• SKDD006:

• • 1.92m @ 6.21g/t Au from 138.83m (including 0.5m @ 17.78g/t),
  • 5.75m @ 3.42 g/t from 143.7m (including 1m @ 13.29g/t Au),
  • 1m @ 2.49g/t Au from 243.4m.

• SKDD007:

• • 3m @ 3.03g/t from 91m (including 1m @ 7.78g/t Au),
  • 1m @ 6.3g/t Au from 272.5m

• Mineralisation is structurally controlled by a related network of shear zones which appear to have acted as feeders and traps for hydrothermal alteration and related gold mineralisation.
• Renaming of Prospects
• Kavango has reverted to historic names of its first four gold prospects at the Hillside Project

• • Prospect 1 = Bill’s Luck
  • Prospect 2 = Britain
  • Prospect 3 = Nightshift
  • Prospect 4 = Steenbok

• The historic mine names are used locally by Kavangos’ field teams

Conclusion: We are encouraged by the gold grades and intersections from the first eight holes of drilling at Steenbok, Prospect 4 in Zimbabwe and we look forward to the results of some basic resource estimation. The team are now working on a plan to test for mineralisation along the rest of the 1.5km strike.

The team will continue to gather more data on the gold mineralised system to build on the current drilling and structural model.

“Further updates on the Hillside Project, including additional assay results and drilling progress, will follow shortly.”

*Two SP Angel Analysts recently visited Kavango’s Hillside mines and licenses in Zimbabwe. An SP Angel analyst holds shares in Kavango

Metals One (MET1 LN) 15p, Mkt Cap £19m – Wyoming uranium exploration

• Metals One reports that it has started geophysical surveying at the Squaw Creek uranium project in the Shirley Basin, Wyoming.
• Although the company cautions that the project acquisition “remains subject to certain conditions … [it confirms that ] … it has received all the respective County Claim numbers for the … Squaw Creek claims, and all claim documents were sent to the Bureau of Land Management (“BLM”) in Wyoming”.
• The initial phase of field exploration is expected to include “geological mapping, reconnaissance prospecting, surface sampling of historic mine dumps, and relocation mapping of adits and other workings, aimed at validating and expanding historical exploration data … in one of Wyoming’s most prolific uranium-producing regions”.
• The company also plans a “broader regional survey … to assess potential claim expansion opportunities, which includes extending geophysical survey lines and assessing adjacent target areas outside the current claim boundary”.
• Chairman, Craig Moulton, said that Metals One is “encouraged by progress made during Phase 1 exploration at Squaw Creek. We have now commenced Phase 1 exploration work”.
• He commented that “Uranium is crucial for the U.S. energy transition, and with growing energy demands and climate targets, domestic uranium projects will be vital in supporting the country’s energy security. The initial exploration work being undertaken will ensure that we are well positioned to contribute to the next generation of domestic uranium supply in the U.S.

Conclusion: Exploration is underway on MetalsOne’s Wyoming uranium project at Squaw Creek. We await further news.

Phoenix Copper* (PXC LN) 4.5p, Mkt Cap £9.4m – Looking forward to developing the Empire open-pit copper project

• Yesterday afternoon Phoenix Copper reported a 2024 loss of US$6.27m (2023 -loss of US$1.57m) and a closing cash balance of ~US$0.88m.
• The annual loss includes a US$4.60m impairment charge “in respect of bond-issue expenses”.
• The report highlights the publication of an inaugural mineral reserve estimate for the Empire open-pit project in Idaho with a ‘Proven & Probable’ reserve of ~109.5mt at an average grade of 0.49% copper, 0.32g/t gold and 14.34g/t silver which the company reports as a ‘copper equivalent’ grade of 0.66%.
• The reserve estimate incorporates “assay data from 485 drill holes, extensive geological modelling, metallurgical recovery test work, geotechnical evaluation, and mine design”.
• Yesterday’s announcement also highlights the results of the 2024 preliminary feasibility study (PFS) which envisages an initial capital investment of ~US$69m generating an after tax NPV_7.5% of ~US$74m and IRR of 40% from the production of a total of ~40,400t of copper, @40,000oz of gold and 1.76moz of silver over an 8-year mine life.
• The PFS uses assumed metal prices of US$4.45//b for copper (~US$9,800/t – currently ~US$9,700/t)), US$2,325/oz for gold (currently ~US$3,400/oz) and US$27.25/oz for silver (currently ~US$36/oz).
• Executive Chairman, Marcus Edwards-Jones. Welcomed the recent signing of “a Letter of Intent with an accredited US investor to subscribe for the additional $75 million … [of corporate copper bonds which, he said] … will enable us to complete construction and proceed into production at the Empire open-pit mine”.
• He said that Phoenix Copper is optimistic that “we will be able to commence drawdown on this additional funding later this month or early next”.

Conclusion: Subject to a successful conclusion, the recent progress on the company’s US$75m corporate bond issue should provide the financial resource to implement development of the Empire open-pit copper project in Idaho.  We look forward to Phoenix Copper moving to development of the project.

*SP Angel acts as Nomad to Phoenix Copper

Rainbow Rare Earths (RBW LN) 11p, Mkt cap £71m – Rainbow start Economic Assessment on Uberaba phosphate tailings project in Brazil with Mosaic

• Rainbow reports the start of work on an Economic Assessment for the recovery of rare earths from the Uberaba Project in Brazil with Mosaic (MOS N), Mkt cap US$11bn.
• Mosaic is the world’s leading producer and marketer of concentrated phosphate and potash crop nutrients.
• The EA is on the recovery of REEs from the Uberaba phosphoric acid plant which produces ~4.3mtpa of phosphogypsum.
• The Uberaba phosphogypsum tailings are at least twice as large as Rainbow’s Phalaborwa residue project in South Africa.
• A preliminary process flowsheet for REE recoveries is based on work done by Mosaic with support from Rainbow.
• The average grade from the Uberaba tailings is ~0.58% total rare earth oxides with ~24.5% high-value REEs, e.g. Nd/Pr with economic quantities of dysprosium and terbium
• Assays on the Mosaic phosphogypsum returns grades of 0.45 – 0.79% TREO with most of the REE present in the phosphate slurry feed.
• EA Assumptions:

• • The EA assumes a grade of 0.58% TREO.
  • Production of ~4.3mtpa phosphogypsum in two ~2.15mtpa modules ~2x the scale of Phalaborwa.
  • The chemically processed and cleaned phosphogypsum stream will be returned to the Mosaic Uberaba process facility.
  • The EA is based on a single hydrometallurgical plant at site with the separation of REEs oxides of +99% purity.
  • Project life = 15 years. The Uberaba phosphoric acid plant is expected to extend for a far longer.
  • EA development cost ezt. US$230,000 split 50:50 between Rainbow and Mosaic.

• Rainbow is currently optimising process test work in South Africa for the Phalaborwa residues with Mincon.
• The team are currently working on the performance of the leaching, ion exchange, precipitation and separation circuits for the optimisation of REE recoveries:

• • A primary leaching circuit to recover the rare earths from the leach solution.
  • CIX to reduce impurities and produce a low impurity feed stream for separation.

• The Uberaba phosphoric acid plant produces ~1,000tpa of monoammonium phosphate (MAP) and 1,100 metric tons of triple phosphate (TSP).

Conclusion:  Much depends on the success of the performance of the back end REE oxide recovery operations. We await further news on the performance, capital and operating cost estimates of this end of the circuit.

Strategic Minerals* (SML LN) 0.29p, Mkt Cap £6.7m – Final results emphasise improved fortunes at Cobre and a renewed emphasis on Redmoor

• Strategic Minerals reports after tax profits of $1.3m in 2024 reversing a loss of $9.2m in 2023.
• The company highlights a rise of ~200% in revenue to $4.7m (2023 – $1.6m) “following the return of a major client to the Cobre magnetite operation”.
• Following investment of $531,000 in development projects, the company reports a 31^st December cash balance of $621,000, subsequently replenished by the £1m fundraising announced in April “to accelerate development of the Redmoor Tungsten-Tin-Copper Project in Cornwall”.
• Summarising the improved performance of the Cobre magnetite operation, today’s announcement confirms the sale of 70,658t of product (2023 – 17,965t) generating revenue of $4.7m (2023-$1.6m) as well as the securing of a “purchase order of up to 30,000 tonnes from one of SMG’s major clients for 2025”.
• Extension of access to the Cobre magnetite stockpile has been secured for a further 2 years “31 March 2027 to 31 March 2029”.
• The company outlines progress at its Redmoor tungsten/tin/copper project where it has previously announced plans to recommence drilling later this month.
• Further analysis and relogging of core drilled at Redmoor in 2019 has identified “four new mineralised zones and high-grade tungsten, copper and tin intercepts within and beyond the Redmoor deposit’s Mineral Resource Estimate” of 11.7 Mt at 1.17 Tin equivalent (0.56% WO₃, 0.16% Sn, 0.50% Cu)”.
• Strategic Minerals also confirms the expansion of its mineral exploration rights in the Redmoor area with an agreement with the Duchy of Cornwall increasing its holding “nearly fourfold to 87.95 km²”.
• Today’s announcement also confirms the post-year end signing of “a non binding heads of agreement to grant a purchaser a call option to acquire” the Leigh Creek copper project in South Australia.
• Management changes, include the appointment of non-executive director, Mark Burnett and non-executive Chairman, Charles Manners who said that he was looking forward to updating the Redmoor mineral resources estimate “data flowing through to an updated economic model. By the time of our next annual report, we expect to have formed an investment ready business case for mining at Redmoor”.
• Mr. Manners closed his remarks saying that “we look forward to a significant increase in news output from Redmoor as well as a continued strong performance from Cobre”.

Conclusion: Increased sales from the Cobre magnetite operation in New Mexico and a renewed focus on the Redmoor project in the UK during 2024 are expected to continue and accelerate into 2025.

*SP Angel acts as Nomad and broker to Strategic Minerals

The Metals Company (TMC US) $5.6, Mkt Cap $2bn – Strategic equity investment from Korea Zinc

• Deep-sea mining development company TMC reports a strategic equity investment from Korea Zinc.
• Korea Zinc will subscribe for 19.6m shares at $4.34/share for $85m (5% of TMC’s outstanding shares)
• The Company will also receive a three year warrant for 6.9m shares (0.35 for 1) exercisable at $7/share.
• Korea Zinc is aiming to use TMC’s nodule-derived materials as feedstock in their South Korean facilities.
• Korea Zinc has received a bulk sample of TMC-supplied nodule material and is validating processing routes.
• PFS for the commercial production system is due in 3Q25.

Zinnwald Lithium (ZNWD LN) 5.2p, Mkt Cap £26m – £3.2m equity raise

• The Company raised £3.2m issuing ~63m new shares at 5p.
• 40m (£2m) is taken up by AMG Critical Materials, an existing shareholder that increased its stake from 25% to just under 30%.
• Mark Tindall subscribed for 8.4m (£0.4m) increasing his interest in the Company to 5.2% from 4.2%.
• Henry Maxey subscribed for 10m (£0.5m) largely maintaining his interest at ~15%.
• The placing price represents a ~9% discount to the closing mid-price on Monday.
• The Company also launched a retail offer on same terms as main equity raise (5p) with the book closing 18 June.
• Proceeds to be used for ongoing permitting at the wholly owned Zinnwald Lithium Project(Germany), further engineering work, negotiations to secure required land as well as working capital.
• 2025 PFS guided for a €1.0bn development cost and an integrated production facility to supply 18ktpa (Phase 1) and 35ktpa (Phase 2) of lithium hydroxide.
• The Project generated €2.2bn and ~20% in post tax NPV8 and IRR using a ~€26,000/LHM price assumptions.

LSE Group Starmine awards for 2024 commodity forecasting:

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

No.2 in Base Metals: SP Angel mining team awarded No 2. ranking for Base Metals forecasting in LSEG Annual Starmine Award for Reuters Polls 2024

Analysts

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

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

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

Arthur Parish – Arthur.Parish@spangel.co.uk – 0203 470 0476

Sales

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

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

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

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

SP Angel                                                            

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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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