SP Angel Morning View -Today’s Market View, Tuesday 22nd July 2025

Gold prices hike higher as the impact of US Tariffs show inflation impact

MiFID II exempt information – see disclaimer below

Fulcrum Metals (FMET LN) – £1m fundraising

Metals One (MET1 LN) – Equity stake in Fulcrum Metals may unlock technical collaboration opportunities

Metals Exploration (MTL LN) – Development progress at La India as Runruno remains on track to achieve 2025 production guidance

Meteoric Resources (MEI AU) – A$35m proposed placing (AFR)

Oriole Resources* (ORR LN) – Oriole extends drill program at Mbe gold project in Cameroon, Central Africa

Osisko Development (ODV CN) – $450m loan facility with Appian

Premier African Minerals (PREM LN) – Shares issued for unpaid interest on loan

Q2 Metals (QTWO CN) – Cisco Lithium Project exploration target

Thor Explorations (THX LN) – Initial drilling results from the Guitry project

Gold ($3,389/oz) – prices hike higher as the impact of US Tariffs show inflation impact

• Further weakening of US dollar has helped gold to break out above $3,375/oz resistance
• The move appears to be supported by bullish US consumer confidence and higher inflation data.
• Traders await further news from the Fed Chairman, Jerome Powell and from the Bank of England’s Governor Andrew Bailey.

Copper ($9,880/t) – prices continue to climb despite LME inflows and strong production from Antofagasta

• Copper prices continue to rise this week.
• The LME reported a further 2,775t of copper into warehouses as expected due to Chinese smelters delivering on their hedging commitments.
• The LME has also opened new warehouses in HK and we suspect are using discounted rates to attract metal.
• Antofagasta reported remarkably strong copper production numbers for the first half led by strong output at the Los Pelambres mine in Chile due to higher grades and recoveries.
• The market continues to await details on the Section 232 investigation into copper by the US Administration. Trump has threatened 50% tariffs on copper imports though this does not make sense as a broad policy.
• We expect the market to ban or discourage US scrap exports and for favoured copper producers such as Chile to see lower tariffs.

Iron ore prices hit a five month high helped by proposed supply side reforms in China and the massive dam project.

• Earlier authorities mandated curbs on overcapacity in the steel sector.
• The mega dam project planned for a river in Tibet is expected to lead to a hike in the nation’s demand for steel and cement.
• Singapore iron ore futures hit an intraday high of ~$107/t earlier today.

Myanmar – Kachin Independence Army ceasefire supports Chinese rare earth supply

• Myanmar is thought to account for around half the world’s mining of ores for dysprosium and terbium with production focussed in the Chipwe/Pangwa area of Kachin State on the border with China.
• The KIA ‘Kachin Independence Army’ now appears to have taken control most if not all of the rare earth mining in Myanmar from the NDA-K militia, the ‘New Democratic Army-Kachin’ which was formerly collaborating with the Myanmar Army and Chinese corporates.
• The KIA sell REE concentrates to Chinese refiners enabling China to maintain control on global REE supply.
• We suspect the KIA might also be persuaded to sell their REE concentrate to Western buyers if the West had the buyers and the refineries to process the material.
• For the west, buying and stockpiling, is not much of an option as it would purely serve to reduce the amount of REE material available to refiners and to Chinese and global markets.
• The geology of the rare earth deposits in Pangwa are reported to be similar to deposits in China making the trade in concentrate material all the more lucrative for Chinese refiners who have been running short of domestic concentrate supply due to environmental restrictions and the closure of smaller, independent, rare earth mines.
• Some of the rare earth mines us a form of in-situ leaching to dissolve the rare earth material into solution that is collected in tunnels further down the hillsides with little regard for environmental protection.

Conclusion: While the west is desperately short of rare earth refining capacity companies will be wary of buying concentrates from an area where there is little environmental control and where the local KIA militia may benefit from transactions.

REEs – China Rare Earth exports rise in June on local customs data

• Total exports of REEs jumped to 3,188t from 1,238t in May.
• While this is very much higher month-on-month the total exported is still 38% lower yoy.
• H1 ’25 exports of rare earth magnets also fell 18.9% yoy to 22,319t highlighting the effective nature of China’s block on REE exports in oxide, metal and magnet form.
• Shipments to the US rose to 353t in June after Trump agreed a trade framework with Beijing when China agreed to deliver more rare earths as part of a pause in tariffs on each other for 90 days.
• The US has since consented to allow Nvidia to sell H20 AI chips to China again helping to ease tensions further.
• The situation highlights the interconnected nature of trading between the two nations, though we suspect each will move to reduce their dependence on the other over time.

IGTV – The Future of Mining: Gold, Copper, Rare Earths & M&A:  https://youtu.be/-G59iOq6x2c?si=z4fVkyHNP9isbOTB

Economics

US – Treasury Secretary Scott Bessent joined calls to an audit of “non-monetary policy operations” including renovations of its headquarters in Washington.

• The news reflects a growing pressure from the administration and policymakers on the Fed as the central bank resists calls to cut rates.

Japan – Central bank officials see little need to change their policy stance of gradually increasing rates following PM Ishiba’s election setback.

• Ishiba’s ruling coalition lost its majority in the upper house over the weekend opening the door more a rise in fiscal spending looking forward.
• In the wake of pro inflationary fiscal policy the central bank may need to step up rate hikes at an accelerated pace.

UK – Budget deficit came in higher than expected in June.

• The deficit came in at £20.7bn, £6.6bn more than last year and over £17.5bn forecast by markets.
• Capital Economics expects the deficit to deteriorate further requiring the government to raise £15-25bn at the Budget later this year.
• Gilts dropped on the news lifting UK 10y yield 3bp to 4.63%.

Currencies

US$1.1699/eur vs 1.1639/eur previous. Yen 147.62/$ vs 148.14/$. SAr 17.650/$ vs 17.716/$. $1.349/gbp vs $1.344/gbp. 0.651/aud vs         0.651/aud. CNY 7.175/$ vs 7.176/$.

Dollar Index 97.87 vs   98.28 previous.

Precious metals:

Gold US$3,389/oz vs US$3,364/oz previous

   Gold ETFs 91.3moz vs 91.1moz previous

Platinum US$1,448/oz vs US$1,452/oz previous

Palladium US$1,261/oz vs US$1,268/oz previous

Silver US$38.9/oz vs US$38.4/oz previous

Rhodium US$5,875/oz vs US$5,800/oz previous

Base metals:

Copper US$9,880/t vs US$9,872/t previous

Aluminium US$2,640/t vs US$2,649/t previous

Nickel US$15,510/t vs US$15,375/t previous

Zinc US$2,835/t vs US$2,849/t previous

Lead US$2,011/t vs US$2,013/t previous

Tin US$33,790/t vs US$33,645/t previous

Energy:

Oil US$68.6/bbl vs US$69.3/bbl previous

• Media reports that the Prax Lindsey oil refinery will move into a wind-down phase after the administrators were unable to find a buyer for the smallest of the UK’s five remaining refineries.
• A final investment decision has been reached on the £38bn Sizewell C nuclear plant in England by the UK Government (44.9% WI), La Caisse (20%), Centrica (15%), EDF (12.5%) and Amber Infrastructure (7.6%). EDF expects the two 1.6GW reactors at Sizewell C to commence operations by the mid to late 2030s.

Natural Gas €33.4/MWh vs €33.6/MWh previous

Uranium Futures $71.2/lb vs $71.2/lb previous

Bulk:

Iron Ore 62% Fe Spot (cfr Dalian) US$113.9/t vs US$111.9/t

Chinese steel rebar 25mm US$461.9/t vs US$460.5/t

HCC FOB Australia US$176.0/t vs US$176.3/t

Thermal coal swap Australia FOB US$110.0/t vs US$111.0/t

Other:  

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

NdPr Rare Earth Oxide (China) US$66,967/t vs US$66,685/t

Lithium carbonate 99% (China) US$9,672/t vs US$9,449/t

China Spodumene Li2O 6%min CIF US$770/t vs US$750/t

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

China Tungsten APT 88.5% FOB US$433/mtu vs US$433/mtu

China Graphite Flake -194 FOB US$410/t vs US$410/t

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

Europe Ferro-Vanadium 80% US$23.8/kg vs US$23.8/kg

China Ilmenite Concentrate TiO2 US$285/t vs US$286/t

China Rutile Concentrate 95% TiO2 US$1,094/t vs US$1,094/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$2,955.0/kg vs US$2,925.0/kg

China Gallium 99.99% US$395.0/kg vs US$395.0/kg

 EV and Battery news

Chinese automakers found to be inflating EV sales figures

• Chinese EV brands Zeekr and Neta have been found to have inflated sales figures by arranging insurance for unsold vehicles, allowing them to book “zero‑mileage used cars” as sales early.
• Between January 2023 and March 2024, Neta pre‑booked at least 64,719 vehicles, representing more than half of the 117,000 units it reported over that 15‑month period.
• Zeekr was also found to have used the method in late 2024 through its state‑owned dealer Xiamen C&D Automobile in Xiamen, prompting consumer complaints when buyers discovered they had purchased already insured cars.
• China’s commerce ministry will meet with industry bodies and automakers to discuss zero‑mileage used‑car sales, following reports of these inflated sales practices.

BYD reaches 13m NEV milestone

• Chinese automaker BYD has produced its 13 millionth NEV, marking that milestone only eight months after its 10 millionth unit rolled off the line.
• The 13 millionth vehicle was a U& sedan from the automaker’s ultra‑luxury sub‑brand Yangwang.
• The company reached the 1m NEV sales mark in May 2021 and 5m in August 2023.
• BYD ceased production and sale of internal combustion engine‑only cars in March 2022 to prioritise PHEV and BEV models.

Company News

Fulcrum Metals (FMET LN) 3.05p, Mkt Cap £3m – £1m fundraising

• Fulcrum Metals has raised £1.045m via a placing and subscription at a price of 3p/share.
• Twenty-nine million share have been placed to raise £870,000 with a warrant attaching to every two of the new shares exercisable at a price of 5p/share within 18 months.
• In addition, the company has placed ~5.8m shares with Metals One plc which has invested £175,000 for a 5.9% interest in the enlarged company.
• The additional funds will help progress the company’s Teck Hughes Mine tailings project near Kirkland Lake, Ontario with additional auger drilling expected to deliver an NI43-101 compliant mineral resource estimate (MRE) as well as an updated concept study and environmental baseline work.
• Today’s announcement also describes the potential for technical collaboration with MetalsOne and confirms that the company is also “in discussions with certain new sophisticated mining industry investors to raise an additional c.£150,000 through a further subscription”.
• The new funds will also partially repay the company’s ~£650k convertible loan note with ~£211k allocated to the repayment.

Metals One (MET1 LN) 11.22p, Mkt Cap £47m – Equity stake in Fulcrum Metals may unlock technical collaboration opportunities

• MetalsOne has invested £175,000 in Fulcrum Metals, described as “an AIM-listed technology-led natural resources company focused on the recovery of precious metals from mine tailings using innovative cyanide-free extraction technology”.
• The investment, which comes as part of Fulcrum Metals’ £1.045m equity raising priced at 3p/share, gives MetalOne a stake of approximately 5.9% in Fulcrum Metals.
• “Fulcrum has an exclusive licence to deploy cutting-edge, non-toxic leach technology from Extrakt Process Solutions (“Extrakt”) on historical gold mine tailings in the Timmins and Kirkland Lake regions of Ontario, Canada”.
• The company explains that it will explore possible collaboration with Fulcrum Metals to apply “Extrakt’s technology beyond Fulcrum’s current projects and assess whether the Extrakt process could be applied to base metal or battery metal tailings in jurisdictions where Metals One operates”.
• CEO, Jonathon Owen, described said that retreating tailings “is no longer just a clean-up exercise – it’s a strategic opportunity … [and said that the] … investment in Fulcrum represents a strategic move to benefit from this opportunity arising from environmentally responsible innovation in mining”.
• He said that partnership with Fulcrum Metals “provides Metals One with a stake in a unique project pipeline … [and] … opens the door for potential collaboration to apply this technology in other regions and metal systems”.

Conclusion: Equity investment in Fulcrum Metals may open opportunities for technological collaboration on the use of environmentally benign reprocessing of historic mine tailings.

Meteoric Resources (MEI AU) SUSPENDED – A$35m proposed placing (AFR)

• The Company is looking to raise A$35m to progress development of its ion-adsorption clay RE Caldeira Project in Brazil (Australia Financial Review)
• AFR reports that shares were offered at 14c or ~10% discount to the last traded price on Friday.
• The stock remains in suspension pending capital raise announcement.

Metals Exploration (MTL LN) 12.4p, Mkt Cap £356m – Development progress at La India as Runruno remains on track to achieve 2025 production guidance

• Metals Exploration reports the production of 40,985oz of gold at a cash cost of US$839/oz and all-in-sustaining cost of US$1.189/oz at its Runruno mine in the Philippines during the first six months of 2025 (H1 2024 – 42,535oz at a cash cost of US$780/oz and AISC of US$1.066/oz).
• Gold sales of 41,240oz (H2 2024 – 41,589oz) generated revenues of ~US$119m (H1 2024 – US$91m)
• Production derived from the processing of ~1mt of ore at an average grade of 1.34g/t, in line with H1 2024 performance with an average recovery rate of 91.4% improving on the 89.6% achieved in H1 2024.
• The company is debt free with cash of US$43.5m at 30^th June 2025.
• In the current quarter (Q3), the company expects Runruno to process predominantly oxide ore material resulting in an expectation of recovery declining “from approximately 90% to approximately 85%”.
• The company describes progress on the La India project in Nicaragua which it acquired in January, where the bulk earthworks were 30% complete by the end of the quarter and construction of “various buildings, including construction office, camp and fuel storage facility” is underway.
• “Disassembly of the purchased Rock Creek process plant … [for installation at La India] … is well advanced, with disassembled equipment parcels prepared for shipping and delivered to port. Activities are ahead of schedule to have the plant loaded for ocean transport departing Alaska before the end of July 2025”.
• “A gold resource extension and verification drill programme has commenced” at La India.
• CEO, Darren Bowden, describing a “record-breaking quarter for the Company … [said that] … At Runruno, we continue to demonstrate our operational discipline, achieving a gold recovery rate of 92.1% and reducing our AISC to US$1,098 p/oz” while maintaining safety and avoiding and lost-time injuries.
• He welcomed the strong support of the Nicaraguan Government at La India and confirmed that “We expect to commence a resource extension drill programme in Q3 2025, which will support the next phase of value creation at this highly prospective asset”.

Conclusion: Midway through 2025, Metals Exploration is on track to achieve its previously announced 2025 production guidance of 70-75,000oz with AISC costs expected between US$1,225-1,325/oz at Runruno while making important progress on the La India mine development in Nicaragua.

Oriole Resources* (ORR LN) 0.24p, Mkt Cap £9.3m – Oriole extends drill program at Mbe gold project in Cameroon, Central Africa

(Oriole Resources holds 90% of Mbe with BCM holding 10%. Oriole also holds and 90% of the Bibemi gold projects)

• Oriole Resources reports a number of gold intersections at the Mbe Gold project.
• Drilling which appears to be inclined at around 45^o show the following results
  • 1.10m at 9.35g/t gold from a depth of 65.9m in hole MBDD-017which also intersected 2.20m at an average grade of 2.47g/t from 32.2m depth: and 3.00m at 1.59g/t from 263.5m
  • Hole MBDD-014 intersected multiple mineralised intervals of >1g/t gold including 1.10m at an average grade of 3.32g/t gold from 309.7m depth within a 2.20m wide section averaging 1.77g/t gold from 308.6m depth; and
  • Hole MBDD-015 also intersected multiple mineralised intervals of >1g/t gold including 2m at an average grade of 2.19g/t gold from 164.2m depth including 1m wide grading 4.14g/t gold at the top of the mineralised zone; and
  • Similar mineralisation in hole MBDD-016 included 1.1m at an average grade of 3.4g/t gold from 71.1m depth and 2.20m at an average grade of 1.91g/t gold from 91.7m depth.
• We note the true-width of any results will vary according to how the drill holes have intersected the veins encountered and a cross-section cartoon of the Mbe mineralisation has been included to show how the team expect the drill-holes to have intersected the mineralisation.
• The team have increased the strike length of sub-surface mineralisation to 300m which they believe supports their estimated JORC Exploration Target of 33-44mt at 0.77-0.95g/t for 815-1,355koz of potential gold resource.
• The announcement confirms that these holes were drilled along a line which “was not covered by the 2024 trenching campaigns and so has provided greater data resolution over this part of system.  The results have extended the strike length of sub-surface mineralisation at MB01-S to 300m” as well as demonstrating that it “is up to 400m wide and has a vertical depth of at least 290m; … [and] … remains open in all directions and at depth”.
• Commenting on the recent results, CEO, Martin Rosser, said that they “support our expectation… of defining a resource of considerable scale at MB01-S … [he said that Oriole Resources has now]… delineated a substantial gold system which, importantly, remains open in all directions and at depth and we look forward to reporting the maiden MRE in Q4-2025”.
• Drill program: Management have since expanded the drill program to 25 holes covering 7,050m with 18 holes and 5,580.50m drilled to date.
• Management are looking to publish an independent, pit-constrained, Mineral Resource Estimate in the fourth quarter.
• Cameroon Mining Code (December 2023): The new mining code mandates state participation in mining companies and grants SONAMINES the National Mining Corporation exclusive rights to purchase and market gold and diamonds.
• The state is likely to ask for a 10% free carry and may negotiate an additional 25%.

Conclusion: Oriole Resources’ latest drilling expands the lateral and depth extent of mineralisation at its Mbe 01-S target in Cameroon and reinforces expectation that an initial MRE will be delivered in Q4 2025.

*SP Angel acts as Broker to Oriole

Osisko Development (ODV CN) C$3.4, Mkt Cap C$461m – $450m loan facility with Appian

• The Company secured a US$450m credit facility with Appian Capital to fund development and construction of the Cariboo Gold Project, BC Canada.
• $100m available for immediate drawdown to fund early works activities including infill drilling (13,000m), engineering, procurement and underground development.
• The Company will also repay outstanding US$25m term loan due to National Bank of Canada due October 2025.
• $350m available over a period of up to 36m after the initial draw on a project FID and subject to certain milestones.
• The facility is for 8y (3y if the Company completes only the initial draw).
• Interest 3M SOFR plus 0.10%pa adjustment and 9.50%pa margin (subject to a 2.0% SOFR floor) for initial draw only and
• Interest 3M SOFR plus 0.10%pa adjustment and 7.50%pa margin (subject to a 2.0% SOFR floor) for total facility.
• The facility is secured.
• Cariboo Gold Project FS released earlier 20025 included:
  • Underground operation running at 190kozpa over 10y LOM
  • Permitted and first production 2H27
  • Production of gold concentrate with LOM recovery of 92.6%.
  • TCC and AISC at US$947/oz and US$1,157/oz.
  • Development cost C$881m (~US$653m at 1.35 FX).
  • NPV5 (after tax) and IRR (after tax) C$943m and 22% (using US$2,400/oz) and
  • NPV5 (after tax) and IRR (after tax) C$2,066m and 38% (using US$3,300/oz).
  • Reserves 17.8mt at 3.62g/t for 2.7moz;
  • M&I (ex Reserves) 17.4mt at 2.88g/t for 1.6moz;
  • Inferred 18.8mt at 3.09g/t for 1.9moz.

Premier African Minerals (PREM LN) 0.02p, Mkt Cap £15m – Shares issued for unpaid interest on loan

• Yesterday afternoon, Premier African Minerals announced the issue of approximately 1,667m new shares, representing around 2.1% of the company’s equity, to George Roach, CEO.
• The new shares take Mr. Roach’s interest in Premier African Minerals to 3.8% and are issued “in settlement of accrued but unpaid interest amounting to £200,000 due on the 2023 loan advance made by George Roach to the Company”.
• The announcement makes clear that Mr. Roach “until the earlier of either 21 June 2026, or an agreement from a reputable buyer acceptable to Canmax Technologies Co., Ltd … that they will settle and/or manage the outstanding prepayment amount plus interest owed to Canmax … This Extension is conditional on there being no further default under the Loan”.

Conclusion: The CEO is converting unpaid, accrued interest on a loan to the company into shares

Q2 Metals (QTWO CN) C$0.67, Mkt Cap C$110m – Cisco Lithium Project exploration target

• The Company released an initial Exploration Target on the hard rock spodumene Cisco Lithium Project in James Bay, QC Canada.
• Exploration Target is for 215-329mt at 1.0-1.38% Li2O.
• The target is based on the first 40 holes drilled to date (~16,200m).
• Summer drilling programme is ongoing as the team is working on preparing maiden MRE (due 2026).

Conclusion: A Cisco exploration target reflect high prospectivity of Company’s license areas as well as the region in general. Earlier, a different Company (Patriot Battery Metals developing its Shaakichiuwaanaan Lithium Project in James Bay), put out an exploration target for 146-231mt at 1.0-1.5% Li2O in 2024 which was on top of MRE at the time (143mt at 1.38% Li2O).

Thor Explorations (THX LN) 41.5p, Mkt Cap £269m – Initial drilling results from the Guitry project

• Thor Explorations has reported initial drilling results from its Guitry exploration project in Cote d’Ivoire where it has now completed a 3,000m programme of reverse-circulation drilling.
• Explaining that the “objective of the program was to gain a better understanding of both the geometry and geological controls on gold mineralisation based on a new interpretation of the historic drilling results obtained by Endeavour Mining, the historical owner of the asset” the company highlights results including:
  • An intersection of 14m at an average grade of 2.59g/t from surface in hole GUR25-208; and
  • 10m at an average grade of 10.36g/t from a depth of 57m in hole GUR25-214; and
  • 14.5m at an average grade of 14.5g/t from a depth of 82m in hole GUR25-219; and
  • 13m at an average grade of 3.46g/t from a depth of 114m in hole GUR25-221; and
  • 17m at an average grade of 2.16g/t from surface in hole GUR25-229.
• The company plans additional step-out and infill drilling at the Krakouadiokro Prospect as well as drilling to follow up “numerous geochemical anomalies at both the Krakouadiokro and Gbaloukro Prospects, many of which remain untested or only partially tested”.
• President & CEO, Segun Lawson said that “We are particularly encouraged that the drilling confirmed our new interpretation of the orientation of these mineralised lodes which remain open. We also successfully intersected previously untested deeper bedrock mineralisation which also remains open at depth”
• He said that the “Guitry Project has scope to grow from here and we continue to target our maiden resource in the country by the end of this year”.

Conclusion: Continuing drilling and more assay results from the original drilling should help deliver an initial MRE for the Guitry project by the end of 2025.

LSE Group Starmine awards for 2025 / 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 for Q1 2025

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

George Krokos – george.krokos@spangel.co.uk – 0203 470 0486

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

SP Angel Corporate Finance LLP is authorised and regulated by the Financial Conduct Authority and is a Member of the London Stock Exchange.