SP Angel Morning View -Today’s Market View, Tuesday 20th August 2024

Gold breaks record high as market waits for Jackson Hole for Fed guidance

MiFID II exempt information – see disclaimer below

Aterian plc* (ATN LN) – Aterian prepares to drill for lithium in Rwanda

Antofagasta (ANTO LN) – Maintaining 2024 production guidance alongside longer term production growth plans

KEFI Gold and Copper* (KEFI LN) – Tulu Kapi development update

Rome Resources (RMR LN) – Drilling at Kalayi, DRC

Savannah Resources* (SAV LN) – Local investor ups their stake to 4% and a Board appointment

Sunrise Resources (SRES LN) – Garfield Royalty Interest Update

Strategic Minerals* (SML LN) – Board appointments

Sylvania Platinum (SLP LN) – Northern Limb exploration update as Volspruit scoping study delivered

WIA Gold (WIA AU) A$0.1, Mkt Cap A$120m – Drill results from gold exploration in Namibia

Gold ($2,525/oz) breaks record high as market waits for Jackson Hole for Fed guidance

• Prices hit $2,550/oz an ounce in Chicago last night with trading volumes averaging >$166bn ($163bn av in 2023) highlighting huge liquidity in gold trading.
• The hike in prices follow’s China’s PBoC issuance of new import quotas
• Chinese exporters and traders have been seen rushing to buy Yuan and probably gold in anticipation of further US dollar weakness
• The metal has also been buoyed by Chinese buying after the PBoC cracked down on local government bond buying.
• Troubles in the Chinese property has caused gold to become a preferred instrument for Individual savings in China.
• The PBoC will likely look to preserve stability amid a longer-term softening of the Yuan / Dollar rate to help exporters particularly with further tariffs on the horizon.
• Comments from the recent Politburo Third Plenum at end July emphasised a desire to hold the Yuan at a reasonable and balanced level.
• The market is waiting for comments from the Jackson Hole meeting where Fed governors are expected to comment on the potential for rate easing from September
• US Treasuries have also rallied, supporting gold prices.
• The 10 year has held below 3.9%, nearing the Yen panic lows.
• Traders are loading up on gold and bonds in advance of the Jackson Hole symposium.
• Some economists (Evercore) are speculating that Powell may hint towards a 50bp cut, with cuts of up to 200-250bp this year if NFP data shows further weakness.
• The market currently gives a 75% chance of a 25bp cut, with expectation of a 50bp cut sliding below 25%.
• This is a sharp repricing since the NFP print spooked investors over recession potential, when a 50bp cut was priced at 100% and commentators were calling for an intermeeting emergency cut.

Copper prices ($9,275/t) edge higher as dollar weakness persists and Caserones strike continues

• Copper prices have held steady, ticking up slightly despite Escondida avoiding a strike.
• Lundin’s Caserones mine is reportedly entering a second week of strikes, with 29% of the workforce downing tools on the 12^th August.
• Caserones is expected to produce 124-135kt of copper in 2024.
• A weaker dollar is likely supporting copper, with the greenback sliding against a basket of currencies as dovish speculation emerges over Jackson Hole.

M&A – Gran Tierra to Buy i3 Energy in £174.1m cash and stock deal

• Gran Tierra Energy has agreed to acquire i3 Energy in a cash and stock deal valued at about £174.1m.
• Each i3 Energy holder will get one new Gran Tierra share per every 207 i3 Energy shares held, 10.43 pence in cash and a cash dividend of 0.2565 pence
• Following completion, i3 Energy holders will own up to 16.5% of Gran Tierra
• The deal offers a premium of 49% to Monday’s closing price
• The deal highlights growing M&A opportunities in the oil and gas and mining sectors as companies seek greater scale to better access capital
• Click for PDF

*SP Angel provides research for i3 Energy plc

Shiveluch volcano erupts with 7.0 earthquake on Paramushir island, Kuril Chain, Petropavlovsk-Kamchatsky, Russia

• Ash clouds up to 3 miles into atmosphere briefly triggering a ‘code red’ warning for aircraft.
• The quake was at a depth of 6km under the seabed and 108km from the nearest city.
• The Ebeko volcano located on the Kuril Islands also spewed ash 2.5km (1.5 miles) high, the institute said. It did not explicitly say whether the earthquake set off the eruptions.
• Seismologists are forecasting potential for a 9.0 earthquake in Kamchatka within 24 hours which will be devastating for any nearby settlements.
• Petropavlovsk-Kamchatsky, a port city and home to a submarine base reported strong shaking.
• The earthquakes are expected to generate some cracking waves off the coast of Hawaii. Surfs up boys!

Economics

China – Chinese banks held prime rates that are used to price mortgages unchanged despite weak economic growth outlook

• The decision follows the central bank stance with PBOC Governor Pan Gongsheng saying last week that authorities will avoid adopting “drastic” measures despite their focus on official economic growth targets.
• Separately, Bloomberg reports that Chinese government is considering making local authorities to buy unsold properties funding purchases with so-called special bonds.
• Currently, special bonds’ proceeds are being invested into infrastructure and environmental projects.
• Local governments have used more than half the CNY3.9tn ($546bn) quota for special bond issuance this year.
• 1y Prime Rate (Current/Previous/Est): 3.35%/3.35%/3.35%
• 5y Prime Rate (Current/Previous/Est): 3.85%/3.85%/3.85%
• Property: price war developing in cities as developers move to raise funds (BNN).

China approval issued for 11 new nuclear reactors

• China continues to push to increase low-cost power production capacity while reducing future emissions.
• The authorities issued approvals for 11 new nuclear reactors across five sites yesterday.

Record flooding in China since 1998 when data was first collected.

• Chinese rainfall is now 10% higher than normal at 1833mm causing the number of rivers exceeding flood warning levels to rise by 120% with flood levels ~60% higher than normal.

China achieves new progress in building High Energy Photon Source (China.org)

• Major progress has been made in the construction of HEPS ‘High Energy Photon Source’, the first high-energy synchrotron radiation light source in China.
• The HEPS creates electron beams with currents reaching 12 mA stored in the HEPS storage ring using 1,776 magnets, >2,500 power supplies and 578 electron beam position monitors.

Israel/Hamas – PM Netanyahu is reported to be in support of the US led “bridging proposal” for a Gaza ceasefire-for-hostages deal, according to the US Secretary Antony Blinken

• “(Netanyahu) confirmed to me that Israel accepts the bridging proposal, that he supports it… its now incumbent on Jamas to do the same… the next important step is for Hamas to say yes,” Blinken said.

UK – Sterling rises to new high on expectations for lower US interest rates

• The move in Sterling may give the BoE Governor room for a further rate cut depending on inflation.
• Recent government wage agreements for doctors and train drivers look inflationary and may limit BoE room for manoeuvre.

Currencies

US$1.1074/eur vs 1.1042/eur previous. Yen 146.74/$ vs 145.76/$. SAr 17.757/$ vs 17.834/$. $1.299/gbp vs $1.296/gbp. 0.673/aud vs 0.669/aud. CNY 7.145/$ vs 7.142/$.

Dollar Index 101.93 vs 102.07 previous

Precious metals:         

Gold US$2,518/oz vs US$2,504/oz previous

Gold ETFs 82.4moz vs 82.3moz previous

Platinum US$960/oz vs US$957/oz previous

Palladium US$929/oz vs US$946/oz previous

Silver US$29.52/oz vs US$29.10/oz previous

Rhodium US$4,725/oz vs US$4,725/oz previous

Base metals:   

Copper US$ 9,245/t vs US$9,216/t previous

Aluminium US$ 2,463/t vs US$2,397/t previous

Nickel US$ 16,790/t vs US$16,610/t previous

Zinc US$ 2,798/t vs US$2,803/t previous

Lead US$ 2,055/t vs US$2,061/t previous

Tin US$ 32,590/t vs US$32,205/t previous

Energy:

Oil US$77.0/bbl vs US$79.3/bbl previous

• Crude oil prices fell on hopes for a possible Gaza ceasefire, following reports that Israeli Prime Minister Benjamin Netanyahu had accepted a “bridging proposal” presented by international mediators.
• The Eni-operated Argo Cassiopea field has been brought onstream offshore Italy with production from the first of four wells, which is expected to ramp-up to a peak of 1.5bcm gross annual output at plateau.
• While China has not officially purchased Iranian crude oil since June 2022, media reports the country imported 6.21mt of crude from Malaysia in July, which is equivalent to 1.47mb/d or almost triple its existing daily output.

Natural Gas €39.8/MWh vs €39.1/MWh previous

Uranium Futures $81.1/lb vs $81.2/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$94.0/t vs US$91.2/t

Chinese steel rebar 25mm US$479.4/t vs US$480.3/t

Thermal coal (1st year forward cif ARA) US$129.0/t vs US$130.9/t

Thermal coal swap Australia FOB US$152.0/t vs US$152.0/t

Coking coal Dalian Exchange futures price US$186/t vs US$187.3/t

Other:  

Cobalt LME 3m US$24,900/t vs US$24,900/t

NdPr Rare Earth Oxide (China) US$54,378/t vs US$53,903/t

Lithium carbonate 99% (China) US$9,728/t vs US$9,731/t

China Spodumene Li2O 6%min CIF US$810/t vs US$830/t

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

China Tungsten APT 88.5% FOB US$330/mtu vs US$330/mtu

China Graphite Flake -194 FOB US$462/t vs US$462/t

Europe Vanadium Pentoxide 98% 4.7/lb vs US$4.7/lb

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

China Ilmenite Concentrate TiO2 US$321/t vs US$321/t

China Rutile Concentrate 95% TiO2 US$1,393/t vs US$1,393/t

Spot CO2 Emissions EUA Price US$72.4/t vs US$69.9/t

Brazil Potash CFR Granular Spot US$295.0/t vs US$295.0/t

Germanium China 99.99% US$2,275/kg vs US$2,225/kg

China Gallium 99.99% US$445/kg vs US$445/kg

Battery News

Chinese EV makers are also expected to flood the UK and other non-EU countries as a way to avoid the tariffs

• Targeting non-EU countries like the UK, Norway, and Switzerland to avoid newly imposed EU tariffs, with the UK being particularly attractive due to its large EV market and strict ZEV mandate.
• The influx of Chinese EVs into the UK could benefit consumers with more affordable options, as Chinese brands tend to sell their cars at lower prices compared to European models.
• Geely-owned Zeekr has claimed to develop the world’s fastest-charging EV battery, further increasing the appeal of Chinese EVs in international markets.

Labour’s EV reforms could introduce National Scrappage Scheme and boost charger access

• Labour, supported by Transport Secretary Louise Haigh, is considering significant changes to EV laws to make ownership more affordable and accessible across the UK. (GBNEWS)
• Haigh has advocated for a trial of a national scrappage scheme, allowing people to trade in old cars for new or used EVs.
• Haigh also supports interest-free loans for low to middle-income earners to purchase EVs.
• The UK has a goal of installing 300,000 public chargers by 2030, addressing the current shortage with under 67,000 public chargers available – Labour plans to remove planning permissions to speed up the installation of on-street EV chargers, particularly in underserved areas.
• Labour also intends to reintroduce the 2030 deadline for banning the sale of new petrol and diesel cars, emphasising a faster transition to EVs.
• Rachel Reeves is expected to outline Labour’s EV support measures in the upcoming budget on 30^th October, focusing on helping drivers transition to EVs.

China launches large-scale vehicle-to-grid trial

• China initiated its first significant vehicle-to-grid (V2G) trial in Jiangsu province, involving over 1,000 EVs and 482 charging stations. (Xinhua)
• V2G involves using EVs as mobile power sources to support the grid by storing and supplying electricity, particularly during peak demand times
• The trial demonstrated the potential of V2G to reduce peak electricity consumption by 12,000kW daily, enough to power 2,100 households.
• By 2030, Jiangsu expects to have over 10m EVs and if 10% participated in V2G, it could provide a peak-shaving capacity of over 1GW.
• While there is some concern around battery degradation from V2G, the long-term durability of EV batteries and the financial incentives make V2G increasingly attractive to many EV owners – EV owners were incentivised with charging discounts to participate in this trial.
• China continues to lead in clean technology innovations, and this V2G trial could pave the way for even larger programs in the future.

Chinese EV sales in the EU see decline following high tariffs

• Chinese EV registrations in the EU dropped by 45% in July compared to June, following the implementation of higher tariffs. (Economic Times)
• The EU introduced temporary tariffs in June, increasing import duties on Chinese EVs up to 48%.
• Chinese automakers rushed to deliver vehicles to the EU before the tariffs took effect, inflating June’s registration numbers, leading to a sharp decline in registrations in the following month.
• In retaliation, China is considering imposing up to 25% tariffs on imported cars from the EU and the US and has announced export controls on certain aviation equipment and technologies.

Norwegian PM inaugurates Europe’s first gigawatt battery factory

• Norwegian Prime Minister Jonas Gahr Store on Friday inaugurated Europe’s first gigawatt-scale factory for Lithium Iron Phosphate (LFP) batteries. (Xinhua)
• The factory is owned by the start-up Morrow Batteries and can produce 3m battery cells annually, amounting to a capacity of 1GWh.
• Store applauded Morrow Batteries’ rapid rise as Europe’s top battery manufacturer, highlighting its pivotal role in Norway’s green transition and the increasing global demand for batteries.
• He also acknowledged Norway’s supportive policies for the industry but emphasized that the primary responsibility lies with private investors.

Nio Power Up 2024 event highlights

• Nio Power will build a new battery swap station manufacturing centre in Wuhan, targeting an annual output capacity for over 1,000 battery swap stations. (CnEVPost)
• Nio announced Power Up Partners, looking for partners to work together to build charging and battery swap facilities to speed up infrastructure development.
• The company aims to have its battery swap station network cover all of the 1,200-plus counties in 14 provincial administrative regions by June 30, 2025.
• They also unveiled a portable car-to-car charger with up to 40kW, a maximum output voltage of 1,000V and a conversion efficiency of 95%.

Electric truck fire believed to be Tesla Semi leads to shut down interstate

• Local reports indicated that an electric truck, believed to be a Tesla Semi, caught fire around 03:16 EST on the I-80 near the Sacramento metro area. (InsideEVs)
• The road was shut down whilst fire fighters delt with the blaze.
• As of 19:30 EST, the California Highway Patrol reported the I-80 was finally reopen in both directions.
• The cause of the fire is unknown.

Company News

 Aterian plc* (ATN LN) 60.5p, Mkt Cap £5.8m – Aterian prepares to drill for lithium in Rwanda

(Rio Tinto jv has the option to invest US$7.5m in two stages to earn up to 75% in the HCK lithium and tantalum hard rock prospect in Rwanda)

(Aterian holds a 70% interest in Kinunga Mining Limited which holds the HCK licence alongside HCK Mining Company Limited which has a 30% interest.

• Aterian Plc reports on work done under its jv on the HCK-1 project with Rio Tinto in Rwanda
• The team have been sampling and analysing soil samples for the key elements which indicate potential for lithium in spodumene
• Mapping of this data is matched with other geological data to work out the best place to drill the pegmatite below.
• Drilling will determine the grade, quality, type and purity of any spodumene-bearing lithium mineralisation.
• The main lithological units observed on the licence are granitic intrusions and deformed metasediments hosting intruded pegmatites.
  • “Most of the project comprises a NW striking SW dipping homocline of metasediments on one, right-way up limb of a regional scale fold (evident in regional magnetics and topography). The NE margin of the property coincides with a regionally significant NNW-SSE trending sinistral shear zone. Metasandstones are more dominant to the south of the fold structure, with thinly bedded, finely laminated phyllitic metamudstones and siltstones (locally graphitic schists) to the north.
  • Most pegmatites appear parallel or sub-parallel to the bedding/foliation and deformed by later folding. The ground geophysical surveys undertaken across the licence may not directly detect pegmatites but can potentially identify structural controls and lithological domains for targeting. Pegmatites do not appear to show an empirical relationship to litho-stratigraphic units, contacts, or magnetic intensity.”
• Work to prepare drill pads in readiness for drilling should start by end-August for drilling by late September.

Conclusion:  Drill core will be visible on the targets from early October with assays likely due in November. The true width of the pegmatites will be as important as the Li2O  grade.

*SP Angel acts as Broker to Aterian Plc

Antofagasta (ANTO LN) 1,877p, Mkt Cap £19bn – Maintaining 2024 production guidance alongside longer term production growth plans

• Announcing results for the six months to 30^th June Antofagasta reports a 4.8% increase in EBITDA to US$1.39bn (2023 – US$1.33bn) although pre-tax profit declined by 6.8% to US$0.71bn (2023 – US$0.76bn).
• The company reports an EBITDA margin of 47.2% (2023 – 46.%).
• Describing resilient H1 performance, CEO, Ivan Arriagada said that the “board of directors has approved an interim dividend … [of 7.9ȼ/share – 2023 11.7ȼ/share] … representing 35% of net earnings, in line with the Company’s dividend policy”.
• Mr. Arriagada confirmed that Antofagasta’s “ growth plan remains on track, with the Centinela Second Concentrator moving forward ahead of schedule and initial work starting at new Los Pelambres projects”.
• The company confirms its 2024 production guidance range of 670-710,000t of copper production although acknowledging that it “is expected to be at the low end” of the range.
• Costs for 2024 “before by-product credits are expected to be $2.40/lb and net cash costs expected to be $1.70/lb“.
• The company reports exploration expenditure of US$26.8m “mainly related to exploration activities in Cachorro and Encierro projects (Chile) as well as in international pre-feasibility stage explorations at Twin Metals Minnesota (USA)”.
• Antofagasta notes that continuing drought conditions at Los Pelambres are being ameliorated by the “inaugural desalination plant” which is delivering “approximately half of the water withdrawal at this operation … from sea water”.
• “Work is already underway to double the capacity of this facility (from 400 l/s to 800 l/s), which would largely remove Los Pelambres from continental water sources … [while] … In the north of Chile, Centinela and Antucoya operate on 100% raw seawater … [while] … Zaldívar has submitted an Environmental Impact Assessment Study to undertake a transition to sea water.”
• Antofagasta comments on a projected 2-3%pa demand increase for copper until 2030 in response to the wider pressures of energy transition initiatives while combatting “fundamental technical challenges … [of] … grade decline and rising ore hardness, while increasing permitting delays, infrastructure challenges and rising mine construction costs suggest a likely contraction or very measured growth in existing mine supply in the medium- to long-term”.
• Antofagasta says that its growth projects “will provide incremental growth in the medium-term, including the construction of the Centinela Second Concentrator Project, which is expected to provide a pathway to grow output to approximately 900,000 tonnes of copper production”.

Conclusion: Antofagasta remains on track to meet the lower end of its 2024 production guidance of 670-710,000t with cost guidance net of by-product credits  expected at US$1.70/lb.  The company outlines the supply pressures on copper as it indicates that it aims to increase production to ~900,000tpa though a range of growth projects

*An SP Angel mining analyst has previously visited a number of Antofagasta’s copper mines

KEFI Gold and Copper* (KEFI LN) 0.58p, Mkt Cap £36m – Tulu Kapi development update

• The Company updates on the progress at the Tulu Kapi Gold development project in Ethiopia.
• The team commenced building of construction camps following the installation of security camps.
• Drilling of water wells and geotechnical drilling for infrastructure layout commenced.
• Contractors are updating final infrastructure budget with international plant fabricators ahead of finalising fixed price construction agreement next month.
• Government security expanded around site.
• Government surveyed new host lands for resettlers within the Tulu Kapi community, a precursor for paying compensation.
• The Company is also studying a potential for a 20% increase in processing capacity to accommodate underground mine material with studies suggesting increased capacity can be achieved within existing capex and opex forecasts.
• Secured lenders site visit is planned ahead of the final credit approval expected the next month.

Conclusion: The update highlights preparatory works carried at the Tulu Kapi site ahead of senior debt approvals expected next month with first syndicate funding drawdowns expected in October allowing the start of development works.

*SP Angel act as Nomad and Broker to KEFI Gold and Copper

Rome Resources (RMR LN) 0.29p, Mkt Cap £13.9m – Drilling at Kalayi, DRC

• Rome Resources reports that its drillhole KBDD-005 at the Kalayi prospect in North Kivu Province, DRC has intersected tin mineralisation at a depth around 65m below the 12.5m wide intersection at an average grade of 1.03% tin reported from hole KBDD-003.
• Although assay results are not yet available from hole KBDD-005 the announcement says that visible tin mineralisation, in the form of the mineral cassiterite, was “intersected in 3 narrow zones associated with quartz veining and silica flooding at 88.5m, 114m and 125m”.
• Based on hand-held Niton XRF data, the cassiterite bearing intervals was seen within “a 30m wide interval from 84 to 114m … [which] … has the potential to host fine grained disseminated cassiterite”.
• The company confirms that “Mobilisation of the second and third drill rigs to site will be completed during this week”.
• The Kalayi prospect forms part of the Bisie North Project and is located “immediately north of Alphamin Resource Corporation’s Mpama North mine, which is the world’s highest-grade tin mine, currently producing mined material (run of mine) at an average grade of approximately 4.5% Sn and accounting for 3% of the world’s tin production”.

Savannah Resources* (SAV LN) 4.0p, Mkt Cap £87m – Local investor ups their stake to 4% and a Board appointment

BUY – 18.3p

• Grupo Lusiaves added to their stake in the Company acquiring ~22m shares.
• Grupo Lusiaves interest now stands at ~4.0% holding 87.7m shares.
• Separately, the Companby announced appointment of Mike Conor as a Non-Executive Director, a representative of AMG Critical Metals on the Board.
• Mr Conor has been with AMG from 2010 serving in various positions within the Group and currently acting as its Chief Corporate Development Oofficer and a Management Board member.

*SP Angel acts as Nomad and Broker to Savannah Resources

Sunrise Resources (SRES LN) 0.05p Mkt Cap £2.4m – Garfield Royalty Interest Update

• Sunrise provides an update on their Garfield Royalty Interest.
• Guardian Metal Resources reported yesterday that they have identified porphyry potential at Garfield project.
• The Company is now finalising drillhole locations before submitting a permit application to the BLM.
• Two deep seated magnetic bodies have been identified using magnetic surveys, coinciding with strong copper mineralisation at surface.
• Sunrise holds a 2% NSR over the asset.

Strategic Minerals* (SML LN) 0.2p, Mkt Cap £4.0m – Board appointments

• Yesterday, Strategic Minerals announced its intention to appoint Mr. Charles Manners as a director and Chairman and Mr Mark Burnett as a director.
• The proposed appointments follow the retirement of the former Chairman, Alan Broome which was announced in July.
• Mr. Manners is described as “the beneficial holder of approximately 4.8% of the Company’s issued share capital … [who] … has been the largest shareholder in SML for a number of years”.
• Mr. Burnett “of RAB Capital, represents Philip Richards who holds approximately 4% of the Company’s issued share capital”.
• The company says that “With these two proposed appointments, the Board has decided not to proceed with the appointment of Mr. Jonathan (Jon) Reynolds as a Non-Executive Director of the Company, as announced on 16 July 2024”.
• Commenting on the appointment of Messrs Manners and Burnett, Managing Director, John Peters, said that he is “pleased to see the involvement of major shareholders in the active management of the Company and both … [fellow director] … Peter Wale and I look forward to working closely with both Charles and Mark in the future”.

*SP Angel acts as Nomad and Broker to Strategic Minerals

Sylvania Platinum (SLP LN) 56p, Mkt Cap £144m – Northern Limb exploration update as Volspruit scoping study delivered

• Sylvania Platinum has announced the completion of a scoping study for its Volspruit project based on the February 2024 updated MRE ‘mineral resource estimate’.
• The MRE which describes a 28mt ‘Indicated & Inferred’ resource at an average grade of 2.36g/t 4E (platinum/palladium/rhodium and gold).
• The Volspruit study envisages production of 1.8mtpa from pits on the ‘North’ and ‘South’ deposits over 14 years. Sixty-five percent of the resource is hosted by the ‘North’ pit with the balance in the ‘South’ pit.
• The Scoping Study is an update on their October 2022 study, with an updated MRE from Feb 2024.
• Volspruit Scoping study:
  • 1.8mtpa production rate from north and south pits,
  • Pre-tax NPV12 of US$69m for an IRR of 17%.
  • Basket price assumed at $1,691/4Eoz
  • Average strip ratio of 6.3.
  • AISC of ZAR28.5k/4Eoz, or $1,603/oz.
  • 4E Recoveries expected at 72% at a 74g/t 4E grade
  • LOM of 14 years.
  • Payback 6 years
  • Peak funding requirement of US$238m.
•  The study includes the addition f further rhodium contributions.
• The CAPEX and OPEX increases reflect processing plant costs and infrastructure costs.
• Hacra exploration target shows:
  • 20-22.5mt at 4E grade of 2.18-3.32g/t 4E
  • Copper grade of 0.12-0.15%
  • Nickel grades of 0.08-0.10%.
• Aurora Project will require future drilling programmes once geophysical survey results are complete.
• Hacra Exploration Target: of 20-22.5mt at an “estimated 4E grade of between 2.18 g/t and 3.32 g/t” for its Hacra project which is also expected to host copper grades between 0.12-0.16% and nickel grades of between 0.08-0.10%.
• The company also confirms that it has completed reinterpretation of historical information over the full strike length of its Aurora exploration project and will now assess the “need for future drilling programmes …  based on the outcomes of both the geophysical survey as well as the processing test work”.

WIA Gold (WIA AU) A$0.1, Mkt Cap A$120m – Drill results from gold exploration in Namibia

• WIA Gold, which is progressing their 80% owned Kokoseb gold project in Namibia, reports drilling results from their Eastern zone.
• The Company reports they have extended mineralisation at the Central Zone, highlights including:
  • 22m at 2.54g/t Au from 362m
  • 21m at 1.53g.t Au from 288m
  • 5m at 3.38g.t Au from 353m
  • 26m at 2.06g/t Au from 165m
  • 28m at 1.86g/t Au from 236m.
• Mineralisation has also been identified at the Eastern Zone:
  • 7m at 1.29g/t Au from 60m
  • 26m at 1.08g/t Au from 101m
  • 4m at 4.95/t Au from 80m.
• Extension drilling at Southern and Gap Zones:
  • 10m at 1.2g/t Au from 306m
  • 12m at 1.26g/t Au from 119m
  • 19m at 1.18g/t Au from 245m.
• The Company continues to drill Kokoseb, seeing further gold ounces added to the MRE from the Eastern Zone from sub-parallel zones.
• WIA has now drilled 9,115m in this additional drilling programme.
• Management believes the deposit remains open in ‘all directions, at depth and with the newly discovered mineralisation in the Eastern Zone, there remains significant scope for growth.’
• Going forward, the company will target new mineralised zones in the Eastern section, targeting hidden mineralisation under the Southern thrust zone.
• They are also progressing the Central, Western and Gap infill drilling programme.
• Kokoseb currently holds an MRE of 66mt at 1g/t Au for 2.12moz, all in the inferred category using a 0.5g/t cut off grade.

No.1 in Base Metals: SP Angel mining team awarded No 1. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q1 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                                                            

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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.

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