SP Angel Morning View -Today’s Market View, Tuesday 24th September 2024

Metals rise as China cuts rates by 50bp in bid to support stock and property market

MiFID II exempt information – see disclaimer below

Anglo Asian Mining* (AAZ LN) – Maiden Garadag MRE hosting ~900kt at 0.32% Cu

Beowulf Mining* (BEM LN) – FLASH NOTE – PFS met test work confirms high-quality concentrate potential

Cora Gold (CORA LN) – Sanankoro exploration identifies further targets in Mali

Hummingbird Resources (HUM LN) – CEO expects challenging H1 to improve in H2 following refinancing

Mkango Resources* (MKA LN) – Participation in £11m grant funded PULSE project

Petra Diamonds (PDL LN) – FY 2024 results confirm Cullinan mine’s dominance

Rome Resources (RMR LN) – H1 results highlight Rome Resources acquisition and £4m fundraising for DRC exploration

Sovereign Metals* (SVML LN) – UN General Assembly presentation with Rio Tinto

Thor Energy (THR LN) – US drilling update

China eases rates by 50 bp in bid to support stock and property market

• The PBoC has reduced the central bank’s reserve requirement ratio by 50bp overnight.
• The Central Bank guided to another 20-50bp cut by year-end.
• Short-term seven-day RRP rate lowered to 1.5% from 1.7%.
• PBoC governor Pan stated that these measures would add $142bn in liquidity to the banking system.
• $71bn has been released to help brokers and insurance companies buy stocks, with $43bn also being provided to support share buybacks.
• In a bid to support the property market, Beijing has also lowered mortgage downpayments for second homes to 15% from 25%.
• The Central Bank will also support local governments to buy up unsold inventory from defaulting property developers.

Gold – prices hit another new high of $2,640.5/oz

Copper ($9,710/t) rallies as China easing fuels optimism over beleaguered property sector

• Copper has rallied back to June levels, climbing above $9,700/t.
• The metal had bottomed in August, before rallying as Chinese buyers restocked on lower prices and a strengthening Yuan.
• Today’s stimulus measures have fuelled bets on a revived property sector, with iron ore and other industrial metals also rallying.
• Copper inventories have been sliding over the past month, whilst import premiums have risen, suggesting the recent rally is driven more by fundamentals than speculation.
• The May rally was fuelled by bullish speculative positions, which then triggered a short squeeze on COMEX as Trafigura and IXM were rumoured to have been unable to deliver physical in time.
• Prices are also rallying after First Quantum suspended its Zambian Kansanshi operations after a fatality.
• Aurubis issued a profit warning yesterday as it suffers from lower treatment and refining charges for concentrates.
• The major European smelter also highlighted expectations of lower metal prices into 2025.

• Copper concentrate spot range:  minus -20/2 to – 38/3.8 TcRc
• Chinese smelters may struggle to make up for the negative TcRc cost on the value of byproduct metal

Lithium carbonate prices rally whilst China looks to add Zimbabwe supply with Kuvimba

• Lithium carbonate prices have risen above $10,000/t in China, having fallen over 90% since 2022.
• The market enthusiasm after CATL reportedly suspended lepidolite operations has faded, although last night’s stimulus lifted Chinese lithium equities.
• Today Bloomberg reports that Zhejiang and Tsingshan are working with Zimbabwe state miner Kuvimba to develop a new deposit.
• The asset is expected to produce 500ktpa lithium concentrate from the Sandawana deposit, which was previously held by Rio Tinto.
• The deposit has been divided into three blocks, with this project representing one of those.
• Huayou has invested over $700m into the Arcadia mine, and Tsingshan operates the Gwanda project.
• CRU estimate Zimbabwe will supply 10% of global lithium output in 2024.

Video: This is Why Gold is Rising and It Will Probably Continue: https://www.youtube.com/watch?v=EsA7ICSVku8

• Podcast: https://audioboom.com/posts/8547593-john-meyer-this-has-one-of-the-lowest-risk-profiles-i-ve-seen-for-a-long-time

Economics

US – Chicago Fed President suggests there may be many more rate cuts over the next year as the Fed moves to focus on employment concerns from inflation.

• The Chicago Fed President is looking for a more proactive approach to avoid potential disruptions in the labor market.
• US PMI Manufacturing fell to 47.0 from 47.9 – a 15-month low.
• PMI Services fell to 55.4 from 55.7
• Composite PMI fell to 54.4 from 54.6
• The data indicates potential for GDP growth of 2.2% in Q3

German – Ifo Business Climate Index fell to 85.4 in September from 86.6 in August – significantly worse then expected adding to the impending prospect of recession

• Recaro, the seat manufacturer finally collapsed into administration leaving a number of local automotive manufacturers short.
• The knock-on impact of stalled production lines from a lack of seats will be felt across France, Germany and the UK
• Current Assessment Index fell to 84.4 from 86.5 – again significantly worse than the 86.0 estimate.
• Expectations Index fell to 86.3 from 86.8 as expected
• Manufacturing fell to -21.6 from -17.8
• Services fell to -3.5 from -1.3
• Trade fell hard to -29.8 from -27.4
• Construction gained to -25.2 from -26.8 though its still very negative.

Japan – Input cost inflation easing as manufacturing and services companies report lower cost pressures

• PMI manufacturing (Sep/Aug/Est): 49.6/49.8/49.9
• Services PMI (Sep/Aug/Est): 49.6/49.8/49.9

Australia

• RBA holds rates steady at 4.35%, in line with expectations
• States need to ‘remain vigilant to the upside risks to inflation.’

Currencies

US$1.112/eur vs 1.111/eur previous. Yen 144.64/$ vs 143.66/$. SAr 17.282/$ vs 17.462/$. $1.336/gbp vs $1.327/gbp. 0.683/aud vs 0.680/aud. CNY 7.035/$ vs 7.057/$.

Dollar Index 100.97 vs 101.05 previous

Precious metals:         

Gold US$2,629/oz vs US$2,616/oz previous

Gold ETFs 83.4moz vs 83.3moz previous

Platinum US$970/oz vs US$962/oz previous

Palladium US$1,058/oz vs US$1,043/oz previous

Silver US$30.9/oz vs US$30.8/oz previous

Rhodium US$4,750/oz vs US$4,750/oz previous

Base metals:   

Copper US$9,694/t vs US$9,422/t previous

Aluminium US$2,520/t vs US$2,424/t previous

Nickel US$16,660/t vs US$16,401/t previous

Zinc US$2,943/t vs US$2,840/t previous

Lead US$2,068/t vs US$2,044/t previous

Tin US$32,575/t vs US$31,823/t previous

Energy:           

Oil US$74.8/bbl vs US$73.9/bbl previous

Natural Gas €36.2/MWh vs €35.0/MWh previous

Uranium Futures $80.0/lb vs $79.3/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$94.7/t vs US$91.9/t

Chinese steel rebar 25mm US$483.2/t vs US$480.8/t

Thermal coal (1st year forward cif ARA) US$118.2/t vs US$113.3/t

Thermal coal swap Australia FOB US$139.5/t vs US$136.8/t

Coking coal Dalian Exchange futures price US$173/t vs US$172.0/t

Other:  

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

NdPr Rare Earth Oxide (China) US$60,546/t vs US$58,995/t

Lithium carbonate 99% (China) US$10,020/t vs US$9,998/t

China Spodumene Li2O 6%min CIF US$740/t vs US$740/t

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

China Tungsten APT 88.5% FOB US$335/mtu vs US$330/mtu

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

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

Europe Ferro-Vanadium 80% 24.55/kg vs US$24.55/kg

China Ilmenite Concentrate TiO2 US$320/t vs US$323/t

China Rutile Concentrate 95% TiO2 US$1,372/t vs US$1,383/t

Spot CO2 Emissions EUA Price US$63.4/t vs US$63.4/t

Brazil Potash CFR Granular Spot US$285.0/t vs US$290.0/t

Germanium China 99.99% US$2,675.0/kg vs US$2,625.0/kg

China Gallium 99.99% US$455.0/kg vs US$455.0/kg

Battery News

Plug-in Hybrids continue to gain momentum as current alternative to EVs

• PHEVs are rapidly growing in popularity due to extended driving ranges and reduced charging needs compared to EVs.
• Recent advancements have increased the electric range of PHEVs, making them more suitable for long-distance and city driving, with prices dropping due to innovations from Chinese automakers like BYD.
• China leads the PHEV market, accounting for 74% of global sales, with nearly 1.91m units sold, while the US saw a 20% increase to 160,000 units.
• Declining PHEV prices, led by BYD’s Qin L and Seal 06 models priced around £11,000 are boosting competitiveness.
• Automakers like General Motors and Lamborghini are shifting focus back to PHEVs, with GM planning a new PHEV for 2027 and Lamborghini releasing its first PHEV, the Urus SE.

China’s Leapmotor to take first orders in Europe for affordable EV

• Leapmotor will start taking orders in Europe for a city car and an SUV, according the automaker and its European partner Stellantis as they expand their budget EV offering in the region.
• Stellantis holds a 51% stake in their Leapmotor International joint venture and has exclusive rights to build, export and sell Leapmotor products outside China.
• The T03 compact car will start at around €18,900.

Automakers continue to scale back EV targets amid slowing demand despite Biden-Harris subsidies

• Automakers are retreating from ambitious EV targets due to sluggish consumer demand, despite significant subsidies from the Biden-Harris administration
• Volvo, Ford, and Mercedes-Benz have scaled back or dropped EV production plans, citing concerns over consumer reluctance due to range limits, lack of charging infrastructure, and high costs.
• Despite billions in government support, including tax credits and subsidies for EV production, EV adoption is not meeting expectations.
• EV sales grew by 50% in early 2023 and 31% in early 2024, down from a 71% increase in 2022.
• High costs remain a major barrier, with EVs being 10% more expensive than gasoline-powered cars on average. Ford’s electric F-150 costs $20,000 more than the gas version.
• Ford cancelled plans for a new electric SUV and reduced F-150 Lightning production, following a $4.7bn loss on its EVs in 2023.
• Tesla and Lucid Motors both announced workforce reductions, laying off 10% and 6% of their employees.
• Mercedes-Benz and Volvo revised their all-electric targets, reducing their EV goals from 100% by 2030 to 50% and 90%-100% electric or hybrid vehicles, respectively.

India and Southeast Asia’s EV market projected to need $1.3 trillion by 2030, according to report

• A joint report by Singapore state investor Temasek and LeapFrog Investments, forecasts that India and Southeast Asia will need $1.3tr in investments to meet EV demands by 2030.
• India is expected to require $900bn, while Southeast Asia will need $365bn for EV-related investments.
• Asia contributes 42% of global greenhouse gas emissions, but the mobility sector accounts for only 10%, significantly lower than Europe (25%) and the US (30%).
• In India, two- and three-wheeler EVs have already become cost-competitive due to lower operational costs, maintenance, and government subsidies, making them increasingly appealing.

New UK Tax could impact EV adoption says SMMT

• Owners of luxury cars, costing over £40,000, will need to pay £410, in addition to the standard Vehicle Excise Duty (VED), for the first five years in which the vehicle is registered in the UK
• Currently, two-thirds of EVs are priced above £40,000, making them luxury vehicles, and therefore subject to the extra charge.
• EVs do offer benefits in total cost ownership, potentially making them more economical than petrol cars despite the tax.
• The Society of Motor Vehicles and Manufacturers (SMMT) has called for a fairer tax system to encourage EV adoption and avoid classifying zero-emission vehicles as “luxuries” subject.

Company News

Anglo Asian Mining* (AAZ LN) 86p, Mkt Cap £105m – Maiden Garadag MRE hosting ~900kt at 0.32% Cu

BUY

• The Company released a maiden JORC compliant mineral resource estimate for the copper porphyry Garadag deposit, located on the 344sqkm Garadag Contract Area and next to another greenfield Xarxar project (4km away).
• Total resource is estimated at 285mt at 0.32% Cu for 897kt contained Cu (0.13% COG) including:
  • 87mt at 0.35% for 304kt in the Indicated category and
  • 198m at 0.30% for 593kt in the Inferred category.
• Mineralisation domains are comprised of enrichment zone (chalcocite, covellite and bornite) and primary zone (chalcopyrite).
• The oxide zone accounts for only minor part of the mineralisation and is not included in the MRE.
  • Enriched zone is estimated at 115mt at 0.43% Cu for 492kt contained Cu.
  • Primary zone is estimated at 170mt at 0.24% Cu for 405kt.
• The mineralisation is 1,650m long (NE-SW) and 920m wide (NW-SE) with the block model extending to a maximum of 540m at depth.
• Enriched mineralisation starts at a minimal depth of 30m.
• The study assumed an open pit operation.
• The estimate is based on ~30,700m of diamond core drilling completed by previous operators of the project including AIMROC and AzerGold.

Conclusion: The Company released maiden JORC MRE on the greenfield copper porphyry Garadag deposit in a major milestone of derisking the project and estimating a lower grade but large tonnage resource hosting a little shy of 1mt of contained copper. The resource does not host any meaningful oxide with transition zone accounting for ~55% and the balance represented by primary sulphide minerals. The Company is studying options for best processing route for Garadag sulphide mineralisation including bacterial leaching that offers a number of advantages compared to conventional flotation including lower capex, no need for tailings and production of copper cathode as opposed to concentrate. The project is instrumental to the Company’s strategic organic growth plans with preliminary projections guiding for >20ktpa Cu operation from 2028.

*SP Angel acts as nomad and broker to Anglo Asian Mining

Beowulf Mining* (BEM LN) 27p, Mkt cap £10.3m – FLASH NOTE – PFS met test work confirms high-quality concentrate potential

BUY – 270p NPV

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• We issue an update note on Beowulf Mining, which is developing the high-grade Gállok iron ore project in Sweden.
• Beowulf is progressing a PFS on the project, with recent workstreams including crucial metallurgical test work.
• Testing shows Gállok’s ability to deliver a high-grade, low impurity iron ore concentrate that is competitive with current concentrate products sold by miners including Rio Tinto, Champion Iron Ore and Fortescue.
• Beowulf will also hold the option to upgrade the concentrate further, to a >70% product suitable for the DRI steelmaking route, which enjoys considerable premiums in price but will require additional CAPEX/OPEX.
• Trade off studies are now being conducted before the delivery of the PFS.
• Whilst iron ore prices are currently under pressure, the transition to EAF has seen strong premiums for high quality products like Gállok’s. We expect this trend to continue, supporting the economics of the project over the long term.
• We highlight the limitations of high-grade, DRI-quality iron ore feed available on the market despite the continued addition of DRI-hungry EAF steel capacity.
• We update our valuation to reflect recent metallurgical test work findings, increased high-grade premium forecasts and to factor in the recent 50:1 stock split.
• Our heavily discounted NPV, which factors in the unfunded and early-stage nature of the project, stands at £2.70, vs today’s share price of 27p, implying c.900% of upside.
• We see Gállok as a strategically positioned asset to feed into the growing European green steel industry.

*SP Angel acts as Nomad and Broker to Beowulf Mining

Cora Gold (CORA LN) 1.85p, Mkt Cap £8.1m – Sanankoro exploration identifies further targets in Mali

• Cora Gold reports that its recently completed sampling programme to expand the existing 920koz mineral inventory at Sanankoro in southern Mali has identified additional targets along approximately 50km of cumulative strike length.
• The “4 primary and 4 secondary gold bearing structures … [host] … 20 new and existing greenfield exploration targets … which are being ranked to prioritise future drill programmes”.
• Cora Gold says that the results “give good confidence on the ability to extend resource inventory and life of mine”.
• Among the targets highlighted in the announcement are

• • Berebogoni – Woyodakoun which is described as “one of the largest and most promising new exploration targets due to its proximity to existing Mineral Resources at Selin and Zone B”; and
  • Dakounkoura and Dakounkoro which is thought to have “Potential to host large mineral resource tonnage”; and
  • Dako “Located approximately 8km south-east of existing Mineral Resources at Zone A with a strike length of 2.4km and up to 150m wide”; as well as
  • Djolibadakoun where mineralisation up to approximately 75m wide remains open laterally along 850m of strike length.

• Cora Gold confirms that its “geologists are systematically collecting data and advancing the remaining 13 greenfield targets towards reconnaissance drill evaluation status”.
• The company confirms that all the targets “are soft oxide rock and within trucking distance of the proposed Sanankoro Gold processing plant”.

Conclusion: Identification of additional early-stage exploration targets within trucking distance of the planned Sanankoro plant provides potential for resource expansion and/or mine life extension. We await results of follow-up exploration with interest.

Hummingbird Resources (HUM LN) 8.5p, Mkt Cap £73m – CEO expects challenging H1 to improve in H2 following refinancing

• Reporting on the six months to 30th June Hummingbird Resources announces a pre-tax loss of US$29.6m (2023 – profit of US$4.1m) and a closing net debt of US$153.5m.
• The results reflect six month production of 29,064oz of gold from the Yanfolila mine in Mali at an all-in-sustaining cost of US$2,015/oz “driven by lower grade through-put and increased waste stripping in preparation for H2-2024 operations” and 13,657oz of gold from the Kouroussa gold mine in Guinea.
• Sales of 30,687oz of gold from Yanfolila generated US$62.8m revenue at an average price of US$2,048/oz
• Hummingbird Resources says that the “ramp-up of operations … [at Kouroussa] … faced challenges through the period. Following the restart of mining by the mining contractor, volumes progressively increased with the mining of high-grade fresh material mining commencing in late Q2-2024”.
• The company reports a US$25m refinancing package in August with “its principal lender, Coris Bank International … [and says that the] … financing covers existing obligations and is repayable over two years with a one-year payment and interest deferral, offering the Company financial flexibility during this crucial phase of ramp-up at the Kouroussa”.
• CEO, Dan Betts, described “a challenging period for us and our stakeholders, with operational and market headwinds to navigate”.
• He said however that “Despite these hurdles, we have made significant strides in positioning the Company for a stronger future. Our focus on advancing key projects, particularly the ramp-up at Kouroussa and the implementation of strategic initiatives at Yanfolila, is laying the groundwork for improved performance in the second half of the year and beyond”.
• He emphasised the importance of the financial support of Coris Bank which, he said “was another crucial step… as we progress towards our goal of becoming a 200 Koz pa producer”.

Mkango Resources* (MKA LN) 5.9p, Mkt Cap £20m – Participation in £11m grant funded PULSE project

• HyProMag (79.4%/20%.6 Mkango/CoTec) is participating in the £11m grant funded Power Electronics Upscale for Localisation and Sustainable Electrification (PULSE) project.
• The project is funded by the UK government and is set to deliver the first In-Wheel Motor (IWM) using recycled magnets produced with HyProMag patented HPMS technology.
• The IWM design generates power directly to the wheel resulting in improved torque response, enhanced handling, faster acceleration, less charging and greater range.
• Among other industrial partners are IWM manufacturer Protean Electric, Unipart Manufacturing, fuel cell EV powertrain experts Viritech and sensor technology specialists Transense.
• HyProMag will receive £43k in grant funding.

Conclusion: Participation in the PULSE project helps to validate patented HPMS permanent magnets recycling technology in innovative applications as well as establish relationships with leading industrial and academic partners.

*SP Angel acts as nomad and broker to Mkango Resources

Petra Diamonds (PDL LN) 28.1p, Mkt Cap £55m – FY 2024 results confirm Cullinan mine’s dominance

• Reporting results for the year to 30^th June 2024 Petra Diamonds has announced a post-tax adjusted loss of US$46m (2023 – US$2m loss) and adjusted EBITDA of US$66m (2023 – US$113m).
• The results stem from the sale of ~3.2m carats of diamonds (2023 ~2.3m carats) generating a 13% rise in revenue to US$367m (2023 – US$325m).
• Profit from mining is dominated by the US$68m contribution of the Cullinan mine (2023 -US$101m) bolstered by a further US$12m from the Finsch mine (2023 – 28m) offset by a loss of US$7m from the Williamson mine in Tanzania (2023 – US$6m loss).
• Consolidated net debt rose by 14% to US$201m (2023- US$177m) although finished the FY lower than the US$212m reported at 31^st December 2023.
• The company reports a “build-up of diamond inventory in FY 2023 of US$34 million and a subsequent release in FY 2024 of US$37 million … [contributing] … to adjusted mining and processing costs increasing from US$202 million in FY 2023 to US$296 million”.
• CEO, Richard Duffy, commented that “In FY 2024, Petra demonstrated its agility in responding to a weaker pricing environment”.
• He explained that the Finsch mine had moved from “a 2.8Mtpa to a 2.2Mtpa operation with greater emphasis on planning and maintenance … [and both of]… our two South African mines starting to access fresh ore from newly developed project areas and Willamson at full production, we remain confident in meeting our FY 2025 guidance”.
• Mr. Duffy commented on the “difficult market conditions through FY 2024” and expressed the view that “that prices will stabilise through to the end of CY 2024 with some improvement expected in CY 2025”.
• He said that “Ongoing discipline by producers is expected to assist in rebalancing inventory across the pipeline. We continue to see supportive market fundamentals in the medium and longer term”.

Rome Resources (RMR LN) 0.24p, Mkt Cap £11.7m – H1 results highlight Rome Resources acquisition and £4m fundraising for DRC exploration

• Rome Resources reports a loss for the six months to 30^th June £99k (2023 – loss of £235k).
• The company highlights the completion on 26^th July of its “acquisition of Rome Resources Ltd” and its AIM Admission “alongside completion of a £4 million fundraise (before expenses) for the Company’s drilling campaign”.
• The company’s exploration consists of “two mineral exploration permits in the North Kivu region of the DRC, both of which have significant tin, copper and other metal soil anomalies and have been drilled in an initial campaign confirming similarities between Rome Resources’ project and the Alphamin Resources Corporation (“Alphamin”) tin mine, some 8 kilometres (“km”) to the southeast”.
• A follow-up drilling campaign to aid in resource definition at Kiyali “is currently being executed throughout the second half of 2024 and is expected to complete in the fourth quarter of 2024”.
• Assay results from the initial drilling are still awaited although preliminary indications from hand-held XRF data, reported in recent announcements, confirms the presence of tin mineralisation.

Sovereign Metals* (SVML LN) 36.25p, Mkt Cap £216m – UN General Assembly presentation with Rio Tinto

(Sovereign currently holds 100% of the Kasiya project. Malawi has 10% free carry right. Rio Tinto acquired an initial strategic interest of 15% for A$40m mid 2023 and has recently invested a further A$19.2 to move up  to 19.9%)

STRONG BUY – Valuation 55p

• Sovereign Metal’s ceo Ben Stoikovich presented alongside Rio Tinto ceo Jakob Stausholm at the UN General Assembly in NY yesterday.
• The discussion focussed on how factors which attract major mining companies and investment and initiatives like the MSP ‘Minerals Security Partnership’ which support investment into resource-rich countries.
• Initiatives like MSP highlights how investment into mining help developing nations stimulate economic development.
• Attendees included representatives from:
  • U.S. Department of Energy, Export-Import Bank of the U.S, United States Trade and Development Agency, Japan Bank for International Cooperation, Government of Japan Ministry of Economy, Trade and Industry, Japan Organization for Metals and Energy Security (JOGMEC), Republic of Korea Ministry of Foreign affairs, Export-Import Bank of Korea (KEXIM), and Ministry of Trade and Industry, Malawi.
  • Rio Tinto, BHP, Anglo American, Glencore, BlackRock, and General Motors.

• September 2023 PFS results highlights:

• • NPV (8%) post-tax US$1,605m ,NPV (10%) post-tax US$1,205m
  • IRR of 28% ungeared
  • Operating costs US$8.74/t mined
  • Total operating costs including royalties US$404/t of concentrate – FoB Nacala port, Mozambique.
  • Assumptions – pricing:
    • Rutile price US$1,484/t – average over the life of mine. (Rutile price is now $1,347-1,390/t TiO2 95% min in port China)
    • Graphite – US$1,290/t – average over the life of mine.

Conclusion:  The attendance and presentation of Sovereign Metals at the UN General Assembly is testament to the quality of Sovereign’s Kasiya rutile and graphite project and the cooperation of Rio Tinto in plans for its future development.

*SP Angel act as Nomad and broker to Sovereign Metals. The analyst has recently visited the Kasiya mine site. We highly recommend the Malawi coffee beans sold in Lilongwe airport.

Thor Energy (THR LN) 0.83p, Mkt Cap £3.1m – US drilling update

• Thor Energy reports that site preparation is underway for its 2024 drilling campaign at its Rim Rock and Groundhog sites within the Wedding Bell and Radium Mountain Projects in the Uravan Mineral belt, southwest Colorado.
• Infill reverse circulation drilling at the Groundhog site “will be centred around high-grade uranium and vanadium mineralisation intercepted in 23WBRA020 … [including a 4.9m wide zone averaging 0.12% U₃O₈ and 0.63% V₂O₅ from 82m depth] … with extension holes up to 300m to the north and east”.
• Work at Rim Rock is Expected to “be centred around 23WBRA011 … [6.1m at an average grade of 0.06% U₃O₈ and 0.9% V₂O₅] … 23WBRA012 and 23WBRA016 … with extension drilling toward the open areas to the east and south”.
• Managing Director, Nicole Galloway Warland, confirmed that the forthcoming drilling in Colorado “highlights the Company’s direction in focusing on our main priority in the Thor portfolio, our uranium and vanadium prospects at the Wedding Bell and Radium Mountain Projects”.

Conclusion: The forthcoming US drilling programme coming after the tungsten JV at Molyhil Australia which was announced in Augustin underlines Thor Energy’s commitment to pursue its US exploration agenda. We await developments with interest.

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                                                            

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.

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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