SP Angel Morning View -Today’s Market View, Tuesday 19th November 2024

Gold prices rebound as Treasury sell-off cools and Goldman calls for $3,000/oz

MiFID II exempt information – see disclaimer below

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80 Mile Plc* (80M LN) – Acquisition of White Flame Energy for hydrogen and helium licenses in Greenland completed

Alphamin Resources* (AFM CN) – Abu Dhabi sovereign wealth fund in talks with Denham over Bisie stake

Arc Minerals (ARC LN) – Injunction against Handa Resources in Zambia

Atalaya Mining (ATYM LN) – Exploration projects in Sweden

Bushveld Minerals* (BMN LN) SUSPENDED – Business rescue team appointed

Condor Gold* (CNR LN) – £475,000 loan facility

Great Southern Copper (GSCU LN) – Initial drilling targets identified at Viuda, Chile

Katoro Gold (KAT LN) – Progress at the White Pine uranium exploration project

Oriole Resources* (ORR LN) – Drilling begins at Mbe gold project

Sayona Mining (SYA AU) SUSPENDED – Merger with Piedmont Lithium and conditional equity raise

Piedmont Lithium(PLLAU) SUSPENDED

Atlantic Lithium* (ALL LN) – Piedmont holds a major stake in Atlantic Lithium’s Ewoyaa Project

Savannah Resources* (SAV LN) – BUY, Target 18.1p –Third largest shareholder acquires more shares

Gold ($2,632/oz) prices rebound as Treasury sell-off cools and Goldman calls for $3,000/oz

• Gold prices have rebounded from a 7% sell-off in recent weeks, touching $2,562/oz before bouncing over the past 24 hours.
• The price has been buoyed by a rally in US Treasuries, with the 10-year sliding from 4.5% to 4.36% today.
• However, the dollar remains strong, pressuring gold buyers.
• Goldman reiterated their call for $3,000/oz by December 2025, likely encouraging some further retail buying.
• Alongside gold, silver, platinum and palladium all staged sharp rallies yesterday, perhaps reflecting a resurgence on a weakening dollar trades.
• Focus will be on the Fed’s December meeting, with renewed inflation concerns encouraging increased positions on no rate cuts at the next meeting.
• Market currently anticipates a 35% chance of a Fed hold come December.
• Trump’s selection for Treasury secretary will likely be closely watched by gold traders, with Polymarket currently seeing a 43% chance of Kevin Warsh, and a 24% chance of the more hawkish Scott Bessent.

Chinese lithium producers rally limit-up as lithium futures rise on improving sentiment and supply cuts

• Ganfeng, Tianqi and Sinomine all rallied limit up at 10% overnight as buyers continue to take advantage of beaten down lithium equities.
• SMM battery-grade carbonate rose again to $10,900/t, whilst CIF SC6 up to US$801/t.
• Chinese carbonate prices now sitting at three-month highs, with Guangzhou futures up 13% this week.
• Various theories are circulating, including that Chinese EV makers are stockpiling lithium in expectations of Trump tariffs.
• Chinese subsidies are also boosting demand.
• S&P Global reports that ‘a number of cathode makers have returned to the market to replenish inventories that have gradually been whittled down over the past few months.’
• Depressed prices have weighed on supply, with CRU reporting that 190kt LCE has been curtailed since 2023, with an additional 50kt delayed.
• CRU has cut its supply forecast by 14% for 2025, stating that the market has ‘significantly tightened’ whilst a surplus is still expected in 2025.

Economics

Russia – President Putin signed an updated nuclear arms doctrine in an escalation of the conflict in Ukraine.

• Doctrine includes a possibility of a nuclear response to “aggression” by non-nuclear states that is supported by other nuclear powers.
• Russia may use nuclear weapons upon receiving information about a launch of ballistic missiles attacking Russian or its allies, Bloomberg writes.
• The decision follows the US permission to use its long range missiles to hit Russian territories.

Kazakhstan – The central bank and government will issue an order in coming days for state firms to sell half of their FX revenue to support depreciating tenge.

• Government owned companies were required to sell part of their FX revenues before until that requirement was lifted in August 2023, Bloomberg writes.
• Tenge is trading just below 500 the weakest it has been since a sell off recorded around the Russian invasion into Ukraine in 1Q22 when the currency hit nearly 525.
• The currency is down ~8% YTD.

Ukraine – National military forces are reported to have carried the first ATACMS strike inside Russia following the US providing a limited permission for the use of long range missiles to strike Russia.

Hong Kong – 45 pro democracy activists have been sentenced for up to 10 years by the national High Court on charges under the 2020 national security law.

• The charges related to the organising of an unofficial “primary election” in 2020 to select the best candidates for an upcoming legislative election, Reuters reports.
• Arrests followed mass pro democracy protests in 2019.

Uranium – Rosatom, a state owned nuclear fuel producer in Russia and the world’s largest supplier of enriched uranium, said yesterday all deliveries of uranium to its customers continue as usual while supplies to the US may take place under a special regime.

• “Supply of Russian uranium products to other countries continues unchanged, under terms agreed upon with our customers and in compliance with applicable laws and regulations,” Rosatom said.
• “Indeed, a ban has been introduced, but in cases where it is in our interests, the Federal Service for Technical and Export Control of Russia may decide to exclude from this list of prohibitions,” government spokesman commented.
• Comments follow Russian government announcement Friday last week to temporarily suspend shipments of enriched uranium into the US.
• The ban follows the US decision to restrict Russian enrichment uranium imports earlier this year, although, shipments may continue under special waivers if there are supply concerns.

Currencies

US$1.0584/eur vs1.0543/eur previous. Yen 153.90/$ vs 154.7/$. SAr 17.979/$ vs 18.144/$. $1.267/gbp vs $1.262/gbp. 0.651/aud vs 0.645/aud. CNY 7.239/$ vs 7.245/$.

Dollar Index 106.26 vs 106.64 previous

Precious Metals

Gold US$2,621/oz vs    US$2,585/oz previous

Gold ETFs 82.8moz vs 83moz previous

Platinum US$967/oz vs US$953/oz previous

Palladium US$1,007/oz vs US$969/oz previous

Silver US$31.2/oz vs US$30.6/oz previous

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

Base metals:   

Copper US$9,084/t vs US$9,009/t previous

Aluminium US$2,629/t vs US$2,636/t previous

Nickel US$15,830/t vs US$15,640/t previous

Zinc US$2,967/t vs US$2,974/t previous

Lead US$1,997/t vs US$1,984/t previous

Tin US$29,145/t vs US$28,950/t previous

Energy:           

Oil US$73.1/bbl vs US$71.4/bbl previous

• Crude oil prices moved higher on higher geopolitical tensions following the US decision to allow the Ukraine to use its long-range missiles at targets inside Russia and on the potential sabotage of a Finnish subsea cable.
• Media reports that YTD24 power demand in Europe is up ~2% y/y, but is still over 5% down on the equivalent power demand in 2021 with gas power generation declining by ~25% and from coal by ~35% during that period.

Natural Gas €46.7/MWh vs €45.4/MWh previous

Uranium Futures $81.0/lb vs $82.6/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$101.1/t vs US$99.3/t

Chinese steel rebar 25mm US$506.3/t vs US$506.8/t

HCC FOB Australia US$204.0/t vs US$204.3/t

Thermal coal swap Australia FOB US$143.5/t vs US$144.0/t

Other:  

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

NdPr Rare Earth Oxide (China) US$57,958/t vs US$57,973/t

Lithium carbonate 99% (China) US$10,569/t vs US$10,559/t

China Spodumene Li2O 6%min CIF US$790/t vs US$790/t

Ferro-Manganese European Mn78% min US$985/t vs US$985/t

China Tungsten APT 88.5% FOB US$338/mtu vs US$343/mtu

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

Europe Vanadium Pentoxide 98% US$4.8/lb vs US$4.8/lb

Europe Ferro-Vanadium 80% US$25.6/kg vs US$25.6/kg

China Ilmenite Concentrate TiO2 US$307/t vs US$307/t

China Rutile Concentrate 95% TiO2 US$1,140/t vs US$1,139/t

Spot CO2 Emissions EUA Price US$64.9/t vs US$64.9/t

Brazil Potash CFR Granular Spot US$277.5/t vs US$277.5/t

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

China Gallium 99.99% US$430.0/kg vs US$440.0/kg

Battery News

China begins first transport of lithium batteries by rail

• China has seen the first rail transport of lithium-ion batteries by CATL which marked a huge milestone for battery transportation in the country and is expected to reduce the cost of the battery industry as a whole
• The first trial train, loaded with CATL’s lithium-ion batteries, debuted from Guiyang, Guizhou province and Yibin, Sichuan province to Shanghai.
• Over 90% of China’s li-ion batteries are transported by road due to safety concerns.
• Europe and North America already transport around 20% of li-ion batteries by rail.

Nio hopes to expand global presence to 25 countries in 2025

• The Chinese automaker has plans to expand into 25 countries and regions in 2025, having focused its recent growth domestically and in Europe.
• “I hope that we can expand to up to 25 different countries or regions by the end of next year,” Nio’s co-founder and president Qin Lihong said in an interview with Chinese state-run media.
• The company initially announced the goal three years ago, but has revived the plans as it seeks to accelerate the pace of its international expansion.
• Nio has spent the last few years overseas focusing on five markets in Europe; Norway, Germany, the Netherlands, Sweden and Denmark.
• Prospects for entering the US market are slightly less clear as the US has tightened restrictions on China and following Donald Trump’s victory.

CATL announces second-gen sodium battery operational at -40°C

• CATL has unveiled its second-generation sodium battery at the World Young Scientists Summit, with an official launch touted for 2025 and commercial production in 2027.
• The second-gen battery can operate ‘normally’ at extremely low temperatures, as low as -40°C.
• The batteries have also exhibited better safety performance and low-temperature resistance while maintaining energy density.
• Currently, the official energy density of the new sodium-ion battery has not been reported; however, it is known that CATL is aiming to exceed 200Wh/kg.

Company News

80 Mile Plc* (80M LN) – 0.32p, Mkt cap £6.8m – Acquisition of White Flame Energy for hydrogen and helium licenses in Greenland completed

(Bluejay Mining holds 100% of the Hammaslahti and Enonkoski projects and all its Greenland prospects)

• 80 Mile plc reports the completion of its acquisition of White Flame Energy along with its hydrogen and helium gas licenses in Greenland.
• White Flame Energy has also been granted a four-year extension to its first licensing sub-period.
• 80 Mile now holds 95% of White Flame Energy and will move to acquire the remaining 5%.
• White Flame Energy shareholders will each receive 4.74 shares in 80 Mile resulting in the issue of an initial 834,444,325 new shares on completion.
• The total acquisition cost for 100% of White Flame Energy is £2.75m to be satisfied via the issue of 879,490,831 new shares representing around 30% of the combined company based on a price for 80 Mile plc shares of £0.003127/s.
• White Flame has three exploration and exploitation licences adjacent to Pulsar Helium’s Tunu project covering 8,429 km² in Greenland.
• The Jameson Land project has had >50 years of exploration and evaluation estimated at ~ US$125m by ARCO and the Danish & Greenland Governments.
• Work includes ±1800km of seismic surveys, airborne surveys, permeability & porosity studies, construction of the Constable Point airport as well as advanced production feasibility studies.
• The basin has anomalous helium and white hydrogen occurrences, as well as working liquid-rich hydrocarbon reservoirs with potential resources estimated by management to contain in excess of +2.4 – 8.1bn barrels of liquid hydrocarbon equivalents in place but this is not to a recognised standard.
• Location: The Project is the west mid Atlantic post rifted, onshore, eastern half of the gas and hydrocarbon bearing North Sea basin located in East Greenland.
• 80 Mile plc has also identified natural hydrogen and helium in historic drill holes at Hammaslahti in Finland with helium concentrations of 7.10% in one drill hole.
• The company is also exploring downstream opportunities to maximise value from its helium, hydrogen, natural gas and liquid hydrocarbons.

*SP Angel acts as nomad and broker to 80 Mile Plc (formerly Bluejay Mining). The analyst has visited Dundas in Greenland and the Hammaslahti and Enonkoski projects in Finland.

Alphamin Resources* (AFM CN) C$1.23, Mkt cap C$1.6bn – Abu Dhabi sovereign wealth fund in talks with Denham over Bisie stake

• Bloomberg reported yesterday that Denham Capital, the 57% owner in Alphamin, is in talks with Abu Dhabi’s International Resources Holdings.
• Alphamin holds the Bisie tin mine in the North Kivu province of the DRC, which produces c.20ktpa of tin in concentrate, c 6% of global production.
• Denham commented that it has been exploring an investment vehicle ‘to continue the investment in Bisie… which has solicited considerable interest from a number of parties.’
• The Abu Dhabi IRH invested into Zambia’s Mopani copper project last year and has committed to invest over $1bn.

Conclusion: We are bullish tin given the limited selection of development projects currently in Western hands. As a result, we are not surprised to see Middle Eastern interest, given the critical nature of the metal to the global electrification and semiconductor trends. We would expect an investment in Bisie to provide a positive read across to Cornish Metals*, which holds the South Crofty tin project in Cornwall and provides investors with an alternative to the DRC for tin exposure.

*SP Angel acts as Nomad and Broker to Cornish Metals, *An SP Angel analyst holds shares in Alphamin

Arc Minerals (ARC LN) 1.32p, Mkt cap £19m – Injunction against Handa Resources in Zambia

(Handa Resources Limited is owned 70% by Anglo American and 30% by Arc Minerals with Arc’s interest held by Unico Minerals Ltd. Unico is owned 67% by Arc Minerals and 33% held by Kopara Investments.. Arc’s resulting ownership of Handa is therefore 20%. Handa Resources Limited holds two subsidiaries in Zambia, Zaco (99%) and Afrimin (80%) and holds assets previously held by Zamsort.)

(Arc also holds 75% in Alvis-Crest (Proprietary) Limited which holds two licenses in the Kalahari Copper Belt, known as Virgo covering >210km2, around 10km southeast the recently commissioned Khoemacau Copper in Botswana.)

• Arc Minerals reports that it has been informed by a subsidiary of Anglo American of a legal injunction against sale and mining or exploration activities on one of the licences held by Handa Resources Limited. Arc reported on 5 November the Handa Resources mining license had been re-instated.
• Fortunately for Arc and its joint venture partner there is no current work ongoing on these licenses.
• The injunction appears to be based on historic claims against Handa by Zamsort which we believed had been previously settled by Arc.
• Handa Resources Limited is seeking to set aside the injunction and an application to dismiss the case will be filed imminently.
• Arc has also filed a case for breach of the afore mentioned Zambian Settlement Agreement.
• Arc reported the confirmation of copper mineralisation in drilling last week at its Virgo Project in Botswana.
• Management reported an intersection of 3m grading 1.29% copper equivalent within a 6m intersection grading 0.82% copper equivalent.
• The intersection is from 3,000m of drilling in eight drill holes.
• Arc appears to have omitted to state the depth of the intersection.
• This ommission is significant in our view as most mineralised intersections are reported at substantial depth under the Kalahari sand cover in Botswana.
• On 5^th November Arc also reported “Copper mineralisation observed at all targets drilled” in its joint venture in Zambia.
• We note there appear to be no figures on the depth of the start of mineralisation or any estimation of the intersection lengths.
• We await details on how many meters, holes or targets are to be drilled.

Atalaya Mining (ATYM LN) 343p, Mkt Cap £488m – Exploration projects in Sweden

• Atalaya Mining reports that it has agreed to earn a 75% interest in two large exploration areas in Sweden.
• Under the terms of a binding agreement with Mineral Prospektering i Sverige AB (MPS). Atalaya Mining will earn an initial 75% in the Skellefte Belt land package  and the Rockliden land package both of which “host many large-scale volcanogenic massive sulphide (“VMS”) deposits and mines owned by Boliden AB, including the operating Kristineberg and Renström mines”.
• In each of the areas, Atalaya will fund “US$3 million within 24 months and elections of up to a further US$9 million that allow Atalaya to reach an initial 75% interest in each land package”.
• The Skellefte Belt project in northern Sweden “consists of six granted exploration licences and one valid application, covering approximately 224 km² in the central core portion of the Skellefte Belt VMS mining district”.
• Today’s announcement confirms a mining history in the Skellefte area dating back to the 1920s and that Boliden’s Kristineberg and Renström mines have current mineral reserves of 10.4 Mt at 1 g/t Au, 84 g/t Ag, 0.5% Cu, 5.1% Zn and 0.8% Pb and that their nearby Kankberg operation, 10km to the east,  hosts reserves of 3.8 Mt at 3.9 g/t Au, 9.5 g/t Ag and 194 g/t Te.
• At Rockliden, also in northern Sweden, 130km² of exploration licences host potential VMS mineralisation surrounding Boliden’s Rockliden deposit “which has an Inferred Resource of 9.2 Mt at 1.7% Cu, 3.9% Zn and 47 g/t Ag (plus an Indicated Resource of 0.8 Mt) according to Boliden’s 2023 Annual Report”.
• Atalaya Mining confirms that in “2023 and 2024, MPS completed two drill holes on Target 1, returning 12.5m at 1.1% Cu and 17 g/t Ag, including 3.3m at 2.6% Cu and 38 g/t Ag, from 23RCK001” at Rockliden.
• Atalaya Mining brings particular in-depth expertise to VMS style mineralisation as its Pyrite Belt mines and projects in Spain are also VMS deposits and we would expect this knowledge to benefit its exploration efforts in Sweden.
• CEO, Alberto Lavandeira amplified on “Atalaya’s roots in the Iberian Pyrite Belt, one of the largest VMS districts globally … [and said that]… we believe there is significant potential to make new discoveries by using modern exploration techniques … [in Sweden’s] … world-class Skellefte Belt”

Conclusion: Atalaya Mining’s foray into Swedish exploration should be boosted by its long experience of a similar mineralisation style in its core Spanish operations.  The historic mining in the new Swedish projects provides encouragement that further, previously undiscovered, deposits remain to be found also echoing the situation in southern Spain where mining in the Riotinto district has a history dating to the pre-Roman era.  We await initial results with interest.

Bushveld Minerals* (BMN LN) SUSPENDED – Business rescue team appointed

• The Company appointed business rescue practitioner for its principal operating subsidiaries.
• Business rescue initiatives provides its subsidiaries protection from legal action while their future is assess and potential plans to rescue the business are implemented.
• The team is in discussions with its advisors including Guernsey insolvency practitioners regarding further courses of action.
• The Company reports that the decision was driven by a continuing weakness in vanadium prices leading to operations running at a loss for an extended period of time, liquidity constraints restricting necessary maintenance works and unsuccessful efforts to secure funding from existing investors and third parties.

*SP Angel act as nomad and broker to Bushveld Minerals

Condor Gold* (CNR LN) 20.5p, Mkt Cap £42m – £475,000 loan facility

(Condor Resources holds 100% of the La India gold mining project)

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• Yesterday afternoon Condor Gold reported a £475,000 loan facility from Galloway Limited which holds 26.13% of its shares and is connected to the company’s Chairman, Jim Mellon via his wholly owned company Burnbrae Group.
• An initial tranche of £200,000 is “available from the 4 November 2024 and £275,000 is available from 2 December 2024” and the announcement confirms that the “unsecured term loan facility carries an interest rate of 20%”.
• “The use of proceeds for the money borrowed under the Facility is for general working capital purposes”.
• Condor Gold’s principal asset is its La India gold project in Nicaragua and the surrounding exploration ground.
• The 2022 feasibility study for La India describes the development of an open-pittable mineral resource of “8,693 kt at 3.2 g/t gold for 893,000 oz gold in the indicated mineral resource category and 3,026 kt at 3.0 g/t gold for 291,000 oz gold in the inferred mineral resource category … [with an additional] … underground MRE … [of] … 979 kt at 6.2 g/t gold for 94,000 oz gold in the indicated mineral resource category and 5,615 kt at 5.0 g/t gold for 98,000 oz gold in the inferred mineral resource category”.
• The 2022 Feasibility Study for the development of an open-pit mine at La India showed that, at a gold price of US$1,600/oz (currently ~US$2,580/oz), an initial capital investment of US$105.5m generates an after-tax NPV_5% of US$86.9m and IRR of 23% from a project producing an average of over 81,000oz of gold annually for the first six years of an 8.4year mine life.
• Sensitivity analysis disclosed by the company in September 2022 indicated that at a higher gold price of US$2,000/oz, still well below current levels, post-tax NPV_5% increases by around 2.4x, to US$205.2m generating an IRR of 43%.
• Condor Gold is currently soliciting interest in the Nicaraguan assets, which are already permitted and effectively development ready and, in September, the company confirmed that there “continues to be significant interest in the sale of the Company’s assets” which was announced in in November 2022 and that it “remains in discussion with a number of interested parties”, including some new candidates.
• The September announcement confirmed that eight companies had concluded non-disclosure agreements (NDAs) and that Condor Gold had received “five non-binding offers … and three site visits … [had been] … completed”. Condor Gold asserted its intention to secure a fair price.
• La India also offers underground mining potential and additional gold exploration opportunities in the broader area around the planned open-pit mine.

Conclusion: Condor Gold has secured loan facilities from entities connected to its Chairman as it progresses plans to dispose of its development-ready gold assets in Nicaragua.  The company has previously disclosed interest from a range of potential acquirers and we await developments with interest.

*SP Angel acts as a broker to Condor Gold

Great Southern Copper (GSCU LN) 1.6p, Mkt Cap £7.9m – Initial drilling targets identified at Viuda, Chile

• Great Southern Copper reports that mapping, sampling and drone magnetic surveying at its Viuda prospect in the coastal metallogenic belt of Chile has identified targets for initial scout drilling.
• The 16km² prospect forms part of Great Southern Copper’s Especularita project area and the preparatory exploration has located “Oxidised quartz-sulphide stockwork, sheeted vein swarms and breccia systems … [which represents an] … initial drill target for porphyry copper-gold type mineralisation”.
• Commenting on the exploration since acquiring Viuda in May 2024, CEO, Sam Garrett, explained that the “alteration footprints of porphyry systems are typically very large, in this case 4km², and as such work at Viuda will now focus on vectoring toward potential mineralised centres which are often more difficult to identify at surface due to the effects of oxidation, weathering and erosion”.
• Mr. Garret confirmed that drilling permits have been received for Viuda and said that “Scout RC drilling is being planned to initially test areas of visible stockwork alteration plus assist with on-going geological interpretations and exploration in areas of deeper weathering with limited outcrop”.

Conclusion: Encouraging early exploration results put Viuda on a path to initial scout drilling ‘at the earliest opportunity’.

Katoro Gold (KAT LN) 0.07p, Mkt Cap £1.0m – Progress at the White Pine uranium exploration project

• Katoro Gold has outlined the progress of its exploration of the recently staked White Pine uranium project located 25 kilometres northwest of the town of Ignace in northwest Ontario.
• Interim CEO, Patrick Cullen, confirmed that field reconnaissance has started to help verify “public domain historical and government data”.
• Field and documentary evidence shows a “variety of outcropping geology … including predominantly coarse-grained to pegmatitic leucogranites and pegmatites consistent with intrusive-style uranium deposits supporting White Pine’s underlying prospectivity”.
• Among the historical information are “a series of radiometric maps” and “a high-resolution magnetic survey … [which outlines] … two major structural trends”.
• In addition, Katoro Gold has “recently compiled high-resolution LiDAR data … [which provides] … meaningful input to geological interpretations (especially structure) as well as delineating areas of outcrop and access”.
• Mr. Cullen commented that the “field reconnaissance work provides important context to the ongoing analysis of the data we have and gives us the inputs we need to design the most appropriate and cost-effective exploration and sampling strategies going forward”.

Conclusion: Initial field reconnaissance of the White Pine uranium project validates historical documents and helps provide a framework for future exploration.

Oriole Resources* (ORR LN) 0.32p, Mkt cap £12m – Drilling begins at Mbe gold project

• Oriole have begun a maiden drilling programme at Mbe, their highly prospective gold prospect in central Cameroon.
• Oriole owns 80% of Mbe, with BCM International earning into 50% of the project via a $4m funding programme.
• Mbe covers 312km² within a wider 2,266km² LICENCE PACKAGE.
• The Company has completed successful trenching programmes at MB01-N and MB01-S.
• The fully funded maiden programme will now cover 6,590m over 24 diamond drill holes.
• Drilling will be focused at MB01-S, which is considered the most prospective target given the wide trenching intercepts and significant soil anomaly.
• Fence lines will be oriented east to west.
• The initial four holes will be paired scissor holes, to support the Team’s understanding of the structural orientation of potential mineralisation.
• This will then guide the optimal drilling azimuth.
• Drilling at MB01-N will be conducted in later in the field season, should it be considered appropriate.
• Mineralisation at MB01 is believed to benefit from increased dilation at structural intersections, enhancing gold deposition.
• Geology is dominated by sulphide-rich quartz veins and veinlets in contact with a mineralised felsic unit.

Conclusion: This is an exciting time for Oriole, who have begun drilling at Mbe, a greenfield gold prospect in Cameroon. The Company has identified two priority targets from successful trenching programmes, and will begin with MB01-S. The 24 hole programme is fully funded and we look forward to further updates as and when they are ready.

*SP Angel acts as Broker to Oriole Resources

Sayona Mining (SYA AU) SUSPENDED – Merger with Piedmont Lithium and conditional equity raise

Piedmont Lithium(PLLAU) SUSPENDED

Atlantic Lithium* (ALL LN) 12.5p, Mkt Cap £85m

• Piedmont and Sayona announced an all-stock merger this morning, with the MergeCo owned 50% Piedmont and Sayona shareholders respectively.
• The MergeCo board will consist of 4 directors from both companies.
• The Transaction is expected to close within 1H25.
• Alongside the transaction, the Group is looking to raise US99m via pre-completion equity raises in both pre-merger companies, alongside a US$45m post-merger conditional placement.
• The Company expects to hold US$164m in cash following the conditional placement, backed by Resource Capital Funds.
• Use of Funds:
  • US$39m in operating and sustaining expenditure
  • US$33m in growth expenditure, including NAL brownfield and process improvements.
    • US$14m of this will be directed to Ewoyaa ‘land acquisition and design’
  • US$32m in one-off expenses
    • US$22m to merger costs
    • $10m in ‘upfront cost of synergies.’
  • US$60m for a cash buffer/general working capital
• As a result, the NAL offtake will be consolidated.
• The MergeCo will hold the NAL project, which was previously owned 25% by Piedmont, and is ramping up to 226ktpa at SC5.4 over a 20 year LOM.
• Other projects held by the MergeCo will include Authier and Moblan, both also in Quebec, alongside the Carolina Lithium Project.
• Additionally, Piedmont’s 40.5% interest in Ewoyaa will be consolidated in the MergeCo. Atlantic Lithium* holds the other 40.5% stake in the project.
• The MergeCo will have the right to earn a 50% interest in the Ewoyaa Project ‘prior to potential dilution’ alongside the right to ‘50% offtake of LOM production.’
• Combined MergeCo Lithium reserves to stand at 70.4mt at 1.15% Li20.

*SP Angel acts as Nomad and Broker to Atlantic Lithium

Savannah Resources* (SAV LN) 4.0p, Mkt Cap £87m – Third largest shareholder acquires more shares

BUY – 18.1p

• Mario Ferreira acquired ~21m shares in the market (~£0.8m worth at 4p).
• This takes his investment in Savannah to 217m shares or 10%, the third largest interest behind AMG (16%) and Al Marjan (13%).

*SP Angel acts as Nomad and Broker to Savannah Resources

LSE Group Starmine awards for Q3 commodity forecasting:

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Previous Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q3 2024

No.2 in Base Metals: SP Angel mining team awarded No 2. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q3 2024

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

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

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

Analysts

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

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

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

Sales

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

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

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

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

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

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

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

DISCLAIMER

This note is a marketing communication and comprises non-independent research. This means it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.

This note is intended only for distribution to Professional Clients and Eligible Counterparties as defined under the rules of the Financial Conduct Authority and is not directed at Retail Clients.

This note is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose.

This note has been issued by SP Angel Corporate Finance LLP (‘SPA’) to promote its investment services. Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. The information contained herein is based on sources which we believe to be reliable, but we do not represent that it is wholly accurate or complete. All opinions and estimates included in this report are subject to change without notice. It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. SPA is not responsible for any errors or omissions or for the results obtained from the use of such information. Where the subject of the research is a client company of SPA we may have shown a draft of the research (or parts of it) to the company prior to publication to check factual accuracy, soundness of assumptions etc.

Distribution of this note does not imply distribution of future notes covering the same issuers, companies or subject matter.

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