SP Angel Morning View -Today’s Market View, Tuesday 11th February 2025

Copper pulls back on trade war escalation concerns

MiFID II exempt information – see disclaimer below

Cleantech Lithium (CTL LN) – £2.4m equity placing

ECR Minerals (ECR LN) – Gold targets identified at the Lolworth project, Queensland

Kodal Minerals* (KOD LN) – First spodumene concentrate production from Bougouni

Largo Inc (LGO CN)  – 4Q24 and CY24 operational update highlight low pricing environment pressures

Rockfire Resources (ROCK LN) – New geochemical anomaly identified in Greece

Rome Resources (RMR LN) – Relocation of operating base in response to unrest in the Goma area, DRC

Power Metals Resources* (POW LN) – (Power Metals* holds a 45% stake in Guardian Metal Resources) Proposal for partial disposal of stake in Guardian Metal Resources

Strategic Minerals* (SML LN) – Further progress on re-assessment of historical drilling at Redmoor

Maaden, a state owned Saudi Arabian mining company, raised $1.25bn in its debut Islamic bond sale as it embarks on a growth programme over the next five years.

• The raise is reported to have attracted over $11.5bn in orders with the issue split between 2030 ($750m and 5.25% yield) and 2035 ($500m and 5.50% yield) maturities.
• Around half of the demand came from the US with the remainder split between Europe, Asia and the Middle East.
• The Company is looking at expanding its gold, phosphate and aluminium businesses as well as ramping up exploration activities for copper in Saudi Arabia.

Economics

Eurozone – EC President Ursula von der Leyen said the EU will respond to 25% tariffs imposed by the US on steel and aluminium imports.

• The EU is said to have prepared a list of American goods that will be hit with retaliatory tariffs.
• “Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures,” she said.
• In a speech on Tuesday German Chancellor Olaf Sholz added that if the US “leaves us no other choice, then the European Union will react to this as one… As the largest market in the world with 450 million citizens, we have the strength to do so.”

Mali – Gold production is down 23% to 51t (1.6moz) in 2024 amid a push by authorities to switch producers to new mining code.

• The data excluded operations at Loulo-Gounkoto mining complex in December after Barrick suspended operations.
• Four of Barrick employees have been detained since November.
• Barrick remained the largest gold producer in the country (19.4t) following by B2Gold (13.7t) and Resolute (7.2t).
• The junta government said that mining companies including Barrick have not paid their fair share of taxes.
• New mining code increases gold royalties as well as raises government participation in assets among other things.

Currencies

US$1.0307/eur vs 1.0319/eur previous. Yen 151.73/$ vs 152.38/$. SAr 18.478/$ vs 18.490/$. $1.235/gbp vs $1.240/gbp. 0.628/aud vs 0.627/aud. CNY 7.306/$ vs 7.308/$.

Dollar Index 108.358 vs 108.311previous.

Precious metals:         

Gold US$2,913/oz vs US$2,898/oz previous

Gold ETFs 83.7moz vs 83.6moz previous

Platinum US$986/oz vs US$989/oz previous

Palladium US$976/oz vs US$974/oz previous

Silver US$31.8/oz vs US$32.2/oz previous

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

Base metals:   

Copper US$9,367/t vs US$9,417/t previous

Aluminium US$2,651/t vs US$2,640/t previous

Nickel US$15,395/t vs US$15,755/t previous

Zinc US$2,827/t vs US$2,840/t previous

Lead US$1,986/t vs US$1,993/t previous

Tin US$31,025/t vs US$31,200/t previous

Energy:           

Oil US$76.6/bbl vs US$75.1/bbl previous

• Crude oil prices edged higher on rising geopolitical tensions after both Hamas and Israel accused each other of violating the terms of a six-week ceasefire deal.

Natural Gas €57.8/MWh vs €58.5/MWh previous

Uranium Futures $68.1/lb vs $69.4/lb previous

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$106.4/t vs US$107.4/t

Chinese steel rebar 25mm US$484.7/t vs US$484.6/t

HCC FOB Australia US$187.0/t vs US$188.0/t

Thermal coal swap Australia FOB US$108.5/t vs US$110.5/t

Other:  

Cobalt LME 3m US$21,550/t vs US$21,550/t

NdPr Rare Earth Oxide (China) US$60,018/t vs US$58,157/t

Lithium carbonate 99% (China) US$9,992/t vs US$9,989/t

China Spodumene Li2O 6%min CIF US$815/t vs US$815/t

Ferro-Manganese European Mn78% min US$1,005/t vs US$1,005/t

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

China Graphite Flake -194 FOB US$430/t vs US$430/t

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

Europe Ferro-Vanadium 80% US$24.8/kg vs US$24.8/kg

China Ilmenite Concentrate TiO2 US$294/t vs US$294/t

Global Rutile Spot Concentrate 95% TiO2 US$1,588/t vs US$1,588/t

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

Brazil Potash CFR Granular Spot US$315.0/t vs US$315.0/t

Germanium China 99.99% US$2,725.0/kg vs US$2,725.0/kg

China Gallium 99.99% US$385.0/kg vs US$385.0/kg

Battery News

Company News

Cleantech Lithium (CTL LN) 15.3p, Mkt Cap £13m – £2.4m equity placing

• The Company conditionally raised £2.4m through a placing of 15m new shares at 16p.
• The placing price represents little discount to the previous close price of 16.25p with new shares accounting for 15.2% of the enlarged share capital.
• Each new share will carry a warrant with a 11p exercise price, a 31% discount to the placing price, exercisable over three years one year after admission.
• Placing net proceeds are to be directed towards:
  • Capital programmes which are critical path for the award of the Special Lithium Operating Contract (CEOL) at Laguna Verde in Chile;
  • Complete Laguna Verde PFS by end 1Q25;
  • Fund the listing on the ASX;
  • Complete the first stage DLE pilot plant conversion process and produce samples of battery grade lithium carbonate for potential offtakes and strategic partners.
• Additionally, the Company issued a broker option to place up to 12.5m new shares with an attached warrant for a total of additional £2.0m to accommodate potential additional demand.
• Broker option is exercisable up until 25 February.

ECR Minerals (ECR LN) 0.28, Mkt Cap £6.3m – Gold targets identified at the Lolworth project, Queensland

• ECR Minerals reports that early stage panned samples of alluvial sediments at its Lolworth gold exploration project covering 946km² in three exploration permits in Queensland, have extended the area of interest “eastward beyond the previously examined regions of Gorge Creek and Dagwood”.
• The company says that the “most significant results came from creeks in the headwaters of Fat Hen Creek, situated one mile east of the Dagwood Prospect. These findings indicate the potential presence of undiscovered gold sources in the surrounding hills”.
• “A high gold anomaly detected in creeks north of the Uncle Terry Prospect area suggests that mineralisation extends beyond the currently mapped prospect boundaries”.
• Today’s announcement also confirms that “five samples yielded Niobium-Tantalum concentrations exceeding 1,000 ppm of Nb (0.1%)”.
• The exploration has focussed attention on “five key gold prospects including Gorge Creek West, Butterfly Creek, Uncle Terry, Gorge Creek Diggings and Woolshed Creek … [which] … have been identified for sub-surface evaluation by drilling”.
• Chief Geologist, Adam Jones, said that the “discovery of high-grade gold samples in new areas, along with potentially significant niobium-tantalum values, highlights the untapped potential of this under-explored region. We look forward to further defining these targets through drilling in 2025”.

Conclusion: Early-stage exploration results from the Lolworth project in Queensland have extended the target area and identified five key gold prospects for further exploration, including drilling. We await further news as the exploration progresses.

Kodal Minerals* (KOD LN) 0.42p, Mkt Cap £80m – First spodumene concentrate production from Bougouni

(Hainan Mining holds a 51% stake in KMUK which holds the Bougouni Lithium Project in Mali with Kodal holding 49%. Mali will hold 35% of the jv company with KMUK)

(Kodal Minerals Plc now, effectively, hold 49% of 65% of the Bougouni project with Mali holding 35% through LMLB and 65% of LMLB held by the Kodal jv with Hainan Mining within KMUK)

• Kodal Minerals reports the production of the first spodumene concentrate from its Bougouni lithium project in southern Mali.
• The concentrate, which grades 5.53% Li₂O and has been delivered ahead of schedule, results from commissioning of the Dense Media Separation (DMS) plant and “paves the way for the ramp up of the DMS processing plant to nameplate capacity in the coming weeks”.
• Today’s announcement confirms that the commissioning is continuing and that “Construction costs remain within the US$65 million capital development budget, with only minor optimisation works remaining”.
• The announcement also confirms that open-pit mining at the Ngoualana deposit has built a 350,000t stockpile of ore available for processing at an average grade of 1.17% Li₂O.
• Commenting on reaching the milestone of initial concentrate production, CEO, Bernard Aylward, acknowledged the “entire team for this achievement, which wholly reflects the dedication and effort of all those involved”.
• Mr. Aylward also expressed confidence “that this progress will continue into the commercial production phase and our project team will continue to work towards our 10,000 tonnes per month target at Bougouni … [and said that Kodal Minerals is looking forward to] … ” our first shipment of lithium spodumene concentrate to Hainan in China by the end of this quarter.
• Kodal Minerals also reports that “the mining licence transfer has been lodged and accepted by the Mali Mines Department (the “DNGM”) and the final stages of compliance are near completion; and the issue of the new mining decree is pending final signature from the President of Mali”.
• Previously disclosed highlights of the agreement with the Mali Government include:

• • The transfer of 35% of the mining project to the Mali government and will be held in the LMLB jv company comprising:
  • A 10% free carry which is a long-standing practice in Mali; plus
  • 25% of new equity for ~US$4.3 million,
  • The resulting 35% equity interest of the Mali Government cannot be diluted below 35% in the event of any capital increases in LMLB,
  • KMUK partners are able to recover all capital investment and intercompany loans from the operation as a priority.
  • 65% of LMLB will be held by the Kodal jv with Hainan Mining within KMUK.
  • 10-year term for the mining license with renewal likely but subject to conditions in the mining code.
  • Customs and duties exemptions during construction continue including the temporary admission of vehicles, machinery and other property under the regime and in the mining list.
  • Including all tools, oils and greases for machines necessary for their activities, petroleum products, spare parts, materials and equipment, machinery and appliances.
  • LMLB will have at least four directors representing Mali including two independent directors.
  • US$15m cash payment to the government of Mali relating to the Hainan Transaction with US$7.5m paid and a second US$7.5m due by 31 March 2025.
  • “Upon completion of transfer of the mining licence the MoU confirms that the Bougouni mining licence will be in full compliance with all legal requirements and in good standing.”

Conclusion: Initial concentrate production from Bougouni is a landmark for Kodal Minerals and implies that plant commissioning is going well.  An initial shipment of spodumene concentrate to China is expected later this quarter.

*SP Angel acts as financial advisor and broker to Kodal Minerals.

Largo Inc (LGO CN) C$3.0, Mkt Cap C$192m – 4Q24 and CY24 operational update highlight low pricing environment pressures

• 4Q24 production amounted to 1.8kt V2O5 (4Q23: 2.8kt) with the decrease attributed to planned kiln and cooler maintenance at the Maracas Menchen Mine in Brazil.
• CY24 production was 9.3kt V2O5 (CY23: 9.7kt) in line with the guidance of 9-11kt.
• CY24 sales were 9.6kt V2O5 including 0.4kt of third party material and 1.2kt related to t vanadium inventory supply agreement (CY23: 10.4kt).
• Ilmenite circuit ramp up is ongoing with 10.3kt of concentrate produced in 4Q24 and 44.9kt in CY24.
• CY24 ilmenite concentrate sales amounted to 42.9kt.
• Benchmark pentoxide and ferrovanadium prices averaged $5.37/lb and $25.38/kg as at Dec/24 (Dec/23: $6.53/lb and $28.70/kg).
• Spot demand remained soft in 4Q24 on the back of weak orders from Chinese and European steel industries while US steel market remained stable.
• CY25 demand is expected to remain soft in Europe and Asia while aerospace sector projected to see increased demand, particularly in 2H25.
• China’s energy storage is expected to be a key driver of vanadium demand.
• CY25 guidance is for
  • 9.5-11.5kt in production;
  • 7.5-9.5kt in sales (ex third party material and vanadium inventory supply agreement related tonnages);
  • $4.5-5.5/lb cash operating costs (ex royalties).

Rockfire Resources (ROCK LN) 0.16p, Mkt Cap £5.7m – New geochemical anomaly identified in Greece

• Rockfire Resources reports that a soil survey has identified a new anomaly with a similar geochemical signature and extent to that overlying the resource area at its Molaoi zinc project in Greece.
• The new, Gkagkania anomaly, defined by a 50x25m sampling programme “is approximately 250m x 200m in size. This is comparable to the main zinc resource area, (Kalamaki), which has a surface signature of 300m x 300m”.
• Today’s announcement explains that historical drilling by the Greek Government at Gkagkania intersected mineralisation including:

• • A 6m wide intersection at a grade of 7.4% zinc at an undisclosed depth in hole B-048; and
  • A 13m wide intersection at a grade of 8.2% zinc also at an undisclosed depth in hole BG-011; as well as
  • A 3.85m wide intersection at a grade of 16.8% zinc also at an undisclosed depth in hole BG-012.

• The company confirms that “A tenement-scale pXRF survey has now commenced on a 200m x 25m grid density to cover the remaining 4km zinc trend, even further to the north of Gkagkania”.
• Confirming that “Gkagkania is a known zinc prospect with historic workings, including several old prospecting shafts up to 30m deep … [CEO, David Price, confirmed Gkagkania as] … a high-priority target for future drilling … [and said that Rockfire Resources will continue its geochemical] … survey to cover the entire licence to establish how many more of these targets exist”.
• The Molaoi resource is currently 15m ‘Inferred’ tonnes at an average grade of 9.96% on a zinc equivalent base which the company has previously said “places Molaoi within the top 20 undeveloped zinc resources globally in terms of tonnage, grade and zinc equivalent metal content”.

Rome Resources (RMR LN) 0.3p, Mkt Cap £16m – Relocation of operating base in response to unrest in the Goma area, DRC

• Rome Resources reports that it has relocated its logistical base for its exploration of the Bisie North project around 200km north of the project to the regional capital, Kisangani in response to the unrest in the Goma area.
• The company confirms that its drilling at Bisie North “continues uninterrupted, with transport to and from the site directly supported by BAC Helicopters”.
• Today’s announcement confirms that Rome Resources “remains focused on advancing exploration activities and expects to announce further assay results from Bisie North within the next 10 days, specifically results from the northernmost MADD018 drill hole at Mont Agoma where over 100m of visible copper was identified”.

Conclusion: A precautionary relocation of logistics support seems a prudent response to the security unrest around Goma and it is encouraging to receive confirmation that drilling at Bisie North is currently able to continue unaffected.  We suspect that there may, however, be cost implications for the exploration budget resulting from increased use of helicopter support.

Power Metals Resources* (POW LN) 13p, Mkt cap £15m – (Power Metals* holds a 45% stake in Guardian Metal Resources) Proposal for partial disposal of stake in Guardian Metal Resources

• Power Metal Resources has announced its intention to dispose of a portion of its interest in Guardian Metal Resources via the sale of ~29.8m shares and ~0.99m warrants to UCAM Limited for a cash consideration of ~£9.23m.
• The proposed sale, which is subject to the completion of a fundraising by UCAM, would reduce Power Metals’ holding in Guardian Metals from the current ~45% to ~19.2%.
• Today’s announcement explains that the “proceeds will be used to redeem the £2 million loan note issued to ACAM LP on 10 June 2024, with accrued interest, and for general corporate purposes”.
• Confirming a commitment to retaining its remaining interest in Guardian Metals, CEO, Sean Wade, explained that “GMET has been a very successful investment for Power Metal and if the Proposed Transaction is completed, we will have realised a return on this part of our investment of 966%, or close to 10 times”.

Conclusion: Partial realisation of its holding in Guardian Metal Resources crystalises a near ten-fold return for Power Metals while still retaining a meaningful interest in its Nevada projects.

*SP Angel acts as Nomad and Broker for Power Metals

Strategic Minerals* (SML LN) 0.25p, Mkt Cap £4.5m – Further progress on re-assessment of historical drilling at Redmoor

• Strategic Minerals has provided a progress report on the work of its local operating subsidiary, Cornwall Resources )CRL), at its Redmoor project in eastern Cornwall.
• The company confirms that it has now relogged over half of the drill core produced during the 2017/18 exploration campaign with 7,375m completed and a “further 338m of the 2017 drill core has so far been relogged with a further 6,684m remaining, with additional new samples already selected for analysis”.
• Strategic Minerals says that its review has identified “new tungsten, copper and tin mineralisation within and external to the Sheeted-Vein-System (SVS)” which hosts the 2019 JORC compliant, mineral ‘Inferred’ resource estimate of 11.7 Mt at 0.56% Tungsten Trioxide (WO₃), 0.16% Tin, & 0.50% Copper at Redmoor.
• These additional results “further validate potential upside to the existing JORC (2012) compliant Redmoor Mineral Resource Estimate”.
• Among the results highlighted in today’s announcement are:

• • Single metre intersections of 0.33% and 0.30% tungsten trioxide from depths of 393.5m and 440.95m in hole CRD-025; and
  • Intersections of 4m averaging 0.34% copper from 384m depth in hole CRD-022 and of 1.29m averaging 0.42% copper from 326.9m depth in hole CRD-024; and
  • “Elevated tin concentrations up to 0.36% Sn over 1.3m from 270.7m in CRD027”

• The company confirms that it is now relogging core drilled in 2017 which, in conjunction with the work completed already, it expects “to significantly de-risk future drilling programmes at Redmoor and support remodelling of the deposit and any future MRE update”.
• CRL’s Project Manager, Dennis Rowland, said that “these results further validate the potential upside within the Redmoor deposit through the reassessment of CRL’s existing drill core … [and deliver a cost-effective means to mitigate] … risks for future exploration programs at Redmoor”.
• A further 7,022m of core still remains to be reassessed.
• We comment that the relogging of historic drilling is relatively inexpensive exploration which should help to squeeze the maximum amount of information from existing sources and help to guide future exploration plans.
• The company is also continuing “exploration activities in the Tamar Valley and Redmoor Licence areas, with particular focus on base-line soil sampling programmes aimed at identifying potential new exploration targets”.

Conclusion: Strategic Minerals is continuing its evaluation of historic drilling results and exploration data at Redmoor and its geochemical soil sampling in the recently extended licence areas to help identify areas for further work in 2025. We look forward to the results of the review of the drill core and to seeing its impact on the mineral resource estimate.

*SP Angel acts as Nomad and Broker to Strategic Minerals

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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