SP Angel Morning View -Today’s Market View, Tuesday 25th June 2024

Chinese traders hold back metal buying as Yuan slides against strong US dollar

MiFID II exempt information – see disclaimer below

American West Metals (AW1 AU) – $12.5m royalty package funding from Taurus on Storm Copper Project

Aston Bay Holdings (BAY CN) – C$3.425m of funding from Taurus royalty agreement on Storm Copper Project

Asiamet Resources (ARS LN) – Asiamet team cut upfront capital cost of BKM copper project in Central Kalimantan, Indonesia

American West Metals (AW1 AU) – $12.5m royalty package funding from Taurus

Beowulf Mining* (BEM LN) – Supreme Court upholds Exploitation Concession decision for Kallak Iron Ore project

Empire Metals* (EEE LN) – Industry presentation highlights growing appetite for natural rutile products

EQ Resources (EQR AU) – Record production rates from tungsten operations as prices rise

Bushveld Minerals* (BMN LN) – Working capital constraints weigh on operations at Vanchem and Vametco, a potential suspension in stock trading

Great Western Mining* (GWMO LN) – Placing to support porphyry exploration and precious metal processing

Kodal Minerals* (KOD LN) – Drilling to extend Bougouni lithium project shoes ongoing high-grade results

Mayur Resources (MRL AU) – US$50m ACAM investment to replace Vision Blue for the CLP project

Rare Earths Norway (Private) – Discovery of significant Rare Earth carbonate deposit in Telemark county, Norway

Victoria Gold (VGCX CN) – Heap leach pad failure

Copper ($9,680/t) holds lower as weak Yuan weighs on Chinese buying capacity

• Copper prices continue to hover below $9,700/t as traders hold fire and Chinese end user concern mounts.
• Copper prices have climbed 13% ytd, but remain well below the record highs of May at $11,000/t.
• Contango levels on LME have grown as inventory levels reach December highs and global inventories hit four year highs.
• The Yuan is suffering against the dollar, hovering at a seven month low as the PBOC seeks to stabilise the currency.
• A weaker currency is limiting China from boosting purchases on the international market, although their faltering property sector isn’t helping demand.

Lithium prices continue to slide as inventories remain high

• Lithium prices have fallen, with battery-grade carbonate hovering just over $12,000/t in China.
• Albemarle’s recent auction on 19^th June fell 7% from the June 5^th auction.
• Prices saw a recovery from New Year lows, but have since weakened as an expected restocking cycle in China failed to materialise.
• Bloomberg reports that lithium carbonate inventories are rising, with cathode maker supplies up 8% last week and trader inventories up 32%.
• Lithium equities are suffering as a result, with Ganfeng down 32% ytd, Pilbara down 21% and Albemarle down 35% over the same period.
• However, industry players continue to invest in supply growth projects, with Pilbara announcing yesterday its plans to ramp up Pilgangoora to 2mtpa of spodumene concentrate 5.2% by 2029.
• Occidental Petroleum and Equinor have both been boosting their interests in upstream supply, whilst Chinese midstream players are locking in additional offtake agreements.
• The lithium price has taken analysts by surprise given the likelihood of Chinese lepidolite producers operating at negative margins.
• However, it is likely Chinse producers, especially those integrated suppliers like CATL, are ramping up output to add further pressure to western operators and gain further market share.
• Development projects such as Liontown and Core are struggling, with Liontown now down 70% since Gina Rheinhart blocked a deal with SQM in October.

Economics

PMIs

Currencies

US$1.0728/eur vs 1.0710/eur previous. Yen 159.47/$ vs 159.66/$. SAr 18.099/$ vs 18.062/$. $1.269/gbp vs $1.265/gbp. 0.667/aud vs 0.665/aud. CNY 7.262/$ vs 7.262/$

Dollar Index 105.52 vs 105.34 previous.

Precious metals:         

Gold US$2,326/oz vs US$2,330/oz previous

Gold ETFs 80.9moz vs 80.9moz previous

Platinum US$1,004/oz vs US$1,006/oz previous

Palladium US$991/oz vs US$940/oz previous

Silver US$29.53/oz vs US$30/oz previous

Rhodium US$4,750/oz vs US$4,700/oz previous

Base metals:   

Copper US$ 9,678/t vs US$9,685/t previous

Aluminium US$ 2,512/t vs US$2,509/t previous

Nickel US$ 17,275/t vs US$17,166/t previous

Zinc US$ 2,852/t vs US$2,846/t previous

Lead US$ 2,167/t vs US$2,193/t previous

Tin US$ 32,735/t vs US$33,800/t previous

Energy:           

Oil US$86.0/bbl vs US$84.4/bbl previous

Natural Gas €34.7/MWh vs €33.8/MWh previous

• Natural gas prices moved higher as higher temperatures swept across Europe and North America leading to an increase in cooling demand.

Uranium Futures $83.6/lb vs $85.7/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$102.6/t v US$107.0/t

Chinese steel rebar 25mm US$526.7/t vs US$530.2/t

Thermal coal (1st year forward cif ARA) US$118.8/t vs US$125.8/t

Thermal coal swap Australia FOB US$132.0/t vs US$135.0/t

Hard Coking Coal Australia FOB US$326.0/t vs US$326.0/t

Other:  

Cobalt LME 3m US$27,150/t vs US$27,150/t

NdPr Rare Earth Oxide (China) US$49,845/t vs US$49,924/t

Lithium carbonate 99% (China) US$12,048/t vs US$12,326/t

China Spodumene Li2O 6%min CIF US$1,060/t vs US$1,080/t

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

China Tungsten APT 88.5% FOB US$350/mtu vs US$350/mtu

China Graphite Flake -194 FOB US$470/t vs US$470/t

Europe Vanadium Pentoxide 98% 5.1/lb vs US$5.2/lb

Europe Ferro-Vanadium 80% 26.85/kg vs US$26.85/kg

China Ilmenite Concentrate TiO2 US$313/t vs US$313/t

China Rutile Concentrate 95% TiO2 US$1,411/t vs US$1,412/t

Spot CO2 Emissions EUA Price US$66.9/t vs US$69.4/t

Brazil Potash CFR Granular Spot US$310.0/t vs US$310.0/t

Battery News

Tata Motors surpasses 150,000 EV sales in India

• The company experienced a significant sales surge, selling over 73,800 EVs in FY2024, which represents a 48% yoy growth.
• Popular electric models include the Nexon EV, Punch EV, Tiago EV, and Tigor EV, which appeal to a wide range of customers, from budget-conscious buyers to those seeking premium electric SUVs.
• Tata Motors plans to launch four new electric models by 2026: Curvv EV (an electric SUV coupe to compete with the MG ZS EV and Hyundai Creta EV), Harrier EV (targeting the growing demand for electric SUVs), Sierra EV, and Avinya EV.

Türkiye’s (Turkey) EV sales jump 257% in first 5 months

• Turkey’s fully electric car sales rose by 257.3% in the first five months of 2024, totalling over 27,600 units, and increasing market share to over 7%.
• Total vehicle sales in Türkiye grew by 6% to 471,743 units by the end of May, with car sales up 10.25% to 375,097 units and light commercial vehicle sales down 7.9% to 96,646 units.
• Market share shifts: gasoline cars fell from 67.8% to 66.1%, diesel from 17.3% to 10.5%, LPG from 1.3% to 0.7%. Fully electric cars rose from 2.3% to 7.4%, hybrids from 10.6% to 14.4%.
• In May 2024, 7,349 fully electric cars were sold, making up 9.2% of sales that month.
• Turkey’s electric car sales topped 65,000 in 2023, ranking sixth in Europe, driven by nearly 20,000 units of the domestic Togg EV.

FlyingBasket partners with Molicel to develop batteries for next-generation cargo drones

• Over the past two years, both companies have collaborated on R&D prototypes to enhance drone battery technology.
• The partnership aims to extend the range and reliability of the FB3 cargo drone, especially for offshore energy applications.
• The new battery packs, made of customizable lithium-ion P50B cells, will increase the FB3’s flight range by 9% for a full 100kg payload.
• FlyingBasket specialises in heavy-payload cargo drones for industries such as energy, logistics, and construction.
• Molicel has over 40 years of experience in rechargeable lithium-ion technology, supplying leading global brands in various high-power applications.

Fire at South Korean lithium battery plant kills 22

• The factory in South Korea was set on fire after multiple batteries exploded on Monday, killing 22 workers, most of them Chinese nationals, fire officials said.
• It remains unclear what caused the explosions and the fire was brought under control in about six hours.

Ola Electric facing investor pushback on IPO valuation

• The company is aiming for a $7bn valuation in its Mumbai listing, while initial investor feedback suggests a lower valuation of about $5bn.
• Ola Electric plans to raise $659m by selling new shares in the IPO.
• The IPO is part of Ola’s strategy to expand into battery-powered cars and EV cells – founder Bhavish Aggarwal aims to build the world’s largest EV hub in southern India.
• Part of the IPO proceeds will expand the manufacturing capacity of its EV cell factory from 5.0GWh to 6.4GWh.

Rivian targets production simplification in search of turning first profit

• The EV maker has removed over 100 steps in its battery making process, 52 pieces of equipment from the body shop and over 500 parts from the design of its SUVs.
• The retooling of its manufacturing process has resulted in a 35% reduction in cost of materials for vans and savings of “similar magnitude” for its other lines, said CEO RJ Scaringe, speaking to Reuters.

Global investment in battery technology booms amid EV surge

• The global battery market is rapidly growing, driven by the adoption of electric vehicles.
• Valued at approximately $127 billion in 2023, it is projected to reach $450 billion by 2032, with a CAGR of 15%.
• Vehicle manufacturers are leading investments to secure stable, long-term battery supplies and foster innovation.
• Examples: BMW with Northvolt, Ford with Solid Power, Volkswagen with QuantumScape, and Daimler with Farasis.

Company News

American West Metals (AW1 AU) A$0.13, Mkt cap A$70m – $12.5m royalty package funding from Taurus on Storm Copper Project

Aston Bay Holdings (BAY CN) C$0.12, Mkt cap C$27m – C$3.425m of funding from Taurus royalty agreement on Storm Copper Project

(Aston Bay hold 20% of the Storm copper and Seal Zinc projects. American West Metals Limited hold 80%)

• Aston Bay Holdings will receive an unrestricted C$3.425m of cash funding from the sale of a royalty on the Storm Copper project to The Taurus Mining Royalty Fund L.P.
• American West Metals will use it’s royalty proceeds to accelerate the Storm 2024 resource expansion and exploration programs, and process assays from this season’s 20,000m drill program.
• Funds will also be used to bring in supplies for the 2025 field season in the 2024 sealift offering significant cost savings on shipping.
• Aston Bay is receiving 20% of the royalty funding negotiated by American West Metals Limited (AW1 AU) under a total US$12.5m royalty (C$17.1m) with Taurus.
• Royalty is for a 0.95% gross override on all production from the Storm Copper Project
• Schedule of advances by Taurus:

• • US$5m (C$6.85m) upon signing of formal documentation and financial close
  • US$3.5m (C$4.80m) upon delivery of a PFS for Storm and submission of permitting documents for a development at Storm
  • US$4m (C$5.48m) upon announcement of an increase in the JORC compliant resource to at least 400,000 tonnes of contained copper at a resource grade of at least 1.00% Cu

• Royalty

• • A 0.95% GOR on the sale of all product from Storm.
  • A 0.50% GOR over any additional mineral rights acquired by American West within 5km of the current extents of the Storm Project (“AOI Royalty”).

• Taurus also acquired a historical 0.875% GOR from Commander Resources Inc, earlier this year giving Taurus a total 1.825% GOR over Storm.
• Commander Resources have agreed to cancel a $4m clawback on 0.4% of the royalty.
• Storm Copper project (Somerset Island, Nunavut, Canada)
• High-grade sediment-hosted copper discovery

• • 110m* @ 2.5% Cu from surface
  • 56.3m* @3.1% Cu from 12.2m
  • 29m at an average grade of 1.1% copper from a depth of 59.4m in hole SR-23-02; and
  • 67.1m also at an average grade of 1.1% copper from a depth of 54.9m in hole SR-23-03; and
  • 6.1m, again at an average grade of 1.1% copper from a depth of 50.3m in hole SR-23-04, which also intersected 19.8m at an average grade of 1.1% copper from 77.7m depth; and
  • 21.3m at an average grade of 1% copper from a depth of 41.23m in hole SR-23-05; and
  • 7.6m at an average grade of 1.1% copper from a depth of 53.3m in hole SR-23-06 which also intersected 3.1m grading 2% copper from 54.9m and 6.1m averaging 1.2% copper from 82.3m

• Seal Zinc Deposit (Somerset Island, Nunavut, Canada)

• • 14.4m* @ 10.6% Zn, 28.7g/t Ag from 51.8m
  • 22.3m* @ 23.0% Zn, 5.1g/t Ag from 101.5m

• 120-kilometre strike length of the mineralized trend inc. Tornado copper prospect with grab samples assaying >1% Cu up to 32% Cu in gossans.

Conclusion: It is expensive drilling so far north with a need to plan and fund exploration and drilling programs at least six months in advance. The Taurus royalty payment not only funds the 2024 drilling and logistics but also prepares the 2025 program at reduced cost through the sharing of logistics, eg. containers onto and off Somerset Island. Fortunately, when you are that remote there is nobody around who is able to steal your stuff.

Asiamet Resources (ARS LN) – 1.28p, mkt cap £32.4m – Asiamet team cut upfront capital cost of BKM copper project in Central Kalimantan, Indonesia

• The team at Asiamet Resources have been working hard to cut the up-front cost of the BKM heap leach copper mine in Central Kalamantan.
• The team had previously changed the Heap Leach Facility location to enable a staged construction of the HLF pad.
• The change cuts the upfront capital cost and should accelerate the time to first production taking the HLF pads off the critical path.
• The BKM team will now focus on the development of a smaller, higher-grade and more profitable mine.
• A smaller initial open pit design will also cut the upfront capital cost, improving operating efficiencies and lowering the construction risk.
• Optimisation results:

Table 1: Comparison of Key Production Physicals

1. Future expansion will require the construction of a process plant to treat primary sulphide copper ores.

1. 1. “Updated cost estimates for the project will flow through from the detailed design and engineering currently underway with Rexline Engineering and BGRIMM.”

Conclusion:  The optimisation of the BKM project should substantially reduce the cost of its financing while accelerating its time to production. Once in production, the management team can re-optimise again to increase the production rate with lower cost financing. The electrowinning circuit will have an initial 11,000tpa capacity in Stage 1.

Beowulf Mining* (BEM LN) 49p, Mkt cap £18m – Supreme Court upholds Exploitation Concession decision for Kallak Iron Ore project

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• Beowulf provides an update on their Supreme Administrative Court process for the Gállok/Kallak Iron Ore Project.
• The Supreme Administrative Court announced this morning that it is upholding the Government’s decision to award the Exploitaiton Concession for Gállok/Kallak.
• The Company continues to progress the Gállok project with a PFS and an EIA.

Conclusion: Gállok is well positioned to feed into the European green steel sector, benefiting from rising premiums as it looks to develop a high-grade iron ore concentrate operation. Today’s decision from the Swedish Supreme Administrative Court is a very positive one for the Company and goes some length to further derisk the asset from permitting constraints. Management can now look forward to developing and derisking the asset with the pre-feasibility study and Environmental Impact Assessment as they progress towards an FID.

*SP Angel acts as Nomad and Broker to Beowulf Mining

Empire Metals* (EEE LN) 8.8p, Mkt Cap £53m – Industry presentation highlights growing appetite for natural rutile products

(Empire holds 70% of Pitfield, Century Minerals, which is run by two geologists holds the other 30%. One of these geologists works for Empire.)

• Empire Metals hosted a ‘Titanium Breakfast’ presentation last week, with industry expert Gerry Colamarino.
• Managing Director Shaun Bunn provided an update on the Company’s large-scale, sedimentary hosted Pitfield titanium project.
• The Company has recently identified a shallow-lying, weathered body dominated by Rutile and Anatase.
• The TIO2 minerals are believed to have been weathered into form from titanite, which makes up the majority of mineralisation in the lower-lying bedrock.
• Empire’s focus is currently on developing a processing route for the higher-value rutile/anatase, given its easy access for cost-effective strip mining at bulk scale.
• The sector presentation highlighted the various products utilized in the industry, ranging from sulfate and chloride feedstocks and titanium metal sponge.
• Whilst chloride feedstock is dominated by integrated producers such as China, Tronox and Eramet, ilmenite feedstock supply remains vulnerable from a fragmented group of juniors in higher risk jurisdicitons.
• The longer term supply of pigment industry feedstock remains challenged by a limited number of projects in challenging jurisdiction.
• Whilst short term supply of sulfate ilmenite products is expected to suffice, longer term tightness is anticipated.
• However, synthetic rutile producers in China are driving increasing demand for ilmenite which remains limited by climbing OPEX costs and declining rutile/zircon reserves and persistent grade decline.
• As a result, Empire is in a strong position to develop its product for a feedstock-hungry downstream industry, with management looking to various end product options from Pitfield.
• They also highlighted the optionality of producing a titanium sponge product to feed into the higher-value aerospace industry, which is dominated by Japanese producers.
• A key thematic of the presentation was the dwindling supply of natural rutile products, which hold a 95% TIO2 concentration vs Chloride Ilmenite products at c.60% and chloride slag at 85% TIO2.
• Alternatives such as synthetic rutile are expected to see supply constraints as emissions controls and carbon taxes weigh on smelting profitability.
• As a result, Empire’s Pitfield project is well positioned to feed a growing and hungry market, assuming the team is able to prove a processing route at scale.
• Management has highlighted their expected processing route in a recent presentation:

• • “Rutile, anatase and titanite considered to be “non-refractory” minerals and should dissolve readily under low temperature acidic conditions.
  • An initial mineral separation stage followed by acid leach is likely to produce a high-quality TiO2 product (>95% TiO2).
  • The flowsheet will not require an energy intensive, smelting process as used by the igneous sourced “hard rock” ilmenite miners.
  • Aim is to make a pigment quality product for marketing directly to the end users for use in the manufacture of paints and coatings, plastics and paper.
  • Potential exists to further refine the TiO2 product to produce titanium metal (sponge).”

Conclusion: Empire is well positioned to take advantage of a growing desire for long-life, alternative supply of titanium product feedstocks as supply becomes increasingly constrained by depleting reserves and deteriorating economics. The Company is exploring routes to maximise value for its shallow-lying rutile/anatase deposit alongside its substantial titanite exploration target which lies below. The team is well supported by several titanium industry specialists and is currently looking to develop a fully integrated process to produce either a high-value TIO2 pigment product or titanium metal. Pitfield benefits from accessible infrastructure, including gas pipelines,p powerlines and port infrastructure. We look forward to metallurgical results to come over the next few months as the team continues to develop the new discovery.

*SP Angel acts as nomad and broker to Empire Metals. Partners of SP Angel hold shares in Empire Metals

EQ Resources (EQR AU) A$0.046/s, Mkt cap A$95m – Record production rates from tungsten operations as prices rise

• EQ Resources reports that Mt Carbine has produced 70.4t of 50% WO3 concentrate over the past week, up 16% wow.
• The increase came primarily as a result of higher-grade ore being mined from the Andy White pit, alongside benefits gained from the XRT ore sorter.
• Saloro reported weekly production of 50t of 50% WO3 concentrate, with improvements stemming from higher recoveries and processing plant debottlenecking following equipment improvements.
• The Company notes a 10% price increase for tungsten prices over the June quarter to date

Bushveld Minerals* (BMN LN) 0.3p, Mkt Cap £7m – Working capital constraints weigh on operations at Vanchem and Vametco, a potential suspension in stock trading

• The Company could not receive $1.5m in working capital funding from Southern Point Resources as consents from Orion, a major creditor and shareholder, are taking longer than expected.
• The Company reported yesterday that should the funding fail to come through within the next two days Vanchem will have to be ramped down.
• Additionally, a shortage of working capital funding is affecting Vametco operations due to inability to secure critical spares.
• The team and Orion continue to engage in discussions for a timely resolution.
• Lack of working capital funding also affects Company’s accounts that are due for release before the end of the month and failure to file those on time will see Company’s shares getting suspended on 01 July (Monday).

*SP Angel act as nomad and broker to Bushveld

Great Western Mining* (GWMO LN) 0.04p, Mkt Cap £2.9m – Placing to support porphyry exploration and precious metal processing

1. Great Western, explorer and processing developer in Nevada, has raised £500k in an equity raise.
2. The company issued 1,250m shares at a price of 0.04p.
3. Funds will be used for a range of activities, including transporting first precious metal material to the processing plant for initial gravity separation.
4. At the Company’s copper porphyry target, West Huntoon, the team will conduct geochronological analysis to age-date and correlate data on the porphyry with the neighbouring prospects.
5. GWM will also conduct trenching over the porphyry target’s granites as well as the high-grade silver soil samples identified last year.
6. Geophysics will also be conducted on the Company’s Rhyolite Dome target which lies to the south of Olympic Gold, with the aim of delineating drill targets.
7. Soil sampling will also be conducted at Rock House and Jack Springs to further explore previously identified gold and silver mineralisation.

*SP Angel act as Broker to Great Western Mining, an SP Angel Analyst has visited Great Western’s Nevada claim blocks.

Kodal Minerals* (KOD LN) 0.63p, Mkt Cap £127m – Drilling to extend Bougouni lithium project shows ongoing high-grade results

BUY – Target 0.97p

(Hainan Mining holds a 51% stake in KMUK which holds the Bougouni Lithium Project in Mali with Kodal holding 49%. The Mali government has the right to a free carry on 10% of the project and an option to acquire a 10% stake)

• Boumou extension: Kodal Minerals report results from extension drilling on the Bougouni lithium project in the south of Mali, West Africa.
• Initial reverse circulation drill assays show a new extension of wide, high-grade mineralisation to the main Boumou Mineral Resource Estimate of 13.1mt grading 1.04% Li2O.
• The strike length at Boumou has been extended to 970m from 500m previously and remains open along strike making this an impressive pegmatite structure.
• Diamond drilling is ongoing at Boumou with plans for a metallurgical test work programme to help optimise the Stage 2 floatation process plant design and to optimise the mining schedule over the Boumou and Sogola-Baoule Prospects.
• Assays have been received for 10 out of the 18 RC holes drilled (3,234m) with 1,200 samples tested, representing ~60% of the programme.
• Key results are:

• Ngoualana mine construction: Stage 1 mine and Dense Media Separation plant progress is ongoing with the pouring of concrete foundations for the DMS and crushing circuits. The DMS units, crushing circuit, steelwork and other items are being shipped to the Abidjan Port in Côte d’Ivoire from China and should arrive within weeks.
• The contractors are stripping topsoil ahead of starting the Ngoualana open pit construction.

Conclusion:  The ongoing construction of the Ngoualana open pit and process plant is good news on a number of fronts.

*SP Angel acts as financial advisor and broker to Kodal Minerals. The analyst holds shares in Kodal Minerals.

Mayur Resources (MRL AU) A$0.22, Mkt Cap A$85m – US$50m ACAM investment to replace Vision Blue for the CLP project

• ACAM LP signed a non binding exclusive term sheet to invest US$50m in the Company and its subsidiary replacing the proposed US$40m Vision Blue capital commitment.
• ACAM will have six weeks of exclusivity to close on the transaction and enter into definitive legally binding agreements.
• Under the agreement, Vision Blue was to hold a 49% interest in the CLP project with Mayur retaining controlling 51%.
• The capital allocation of the proposed US$50m and associated percentage equity ownership split in the Company and its subsidiary shall be agreed between the Investor and MRL prior to the closing of definitive transaction documents.
• In addition, the Company is raising A$5m with existing shareholders.
• Investment is provided along the proposed $70m base debt facility offered by Appian Capital Advisory.
• The Central Lime Project (CLP) is a PNG based envisaged as a staged development of a vertically integrated lime operation with a potential to replace raw lime, lime, hydrated lime and other building material requirements imports into the country and the ability for exports into Australia and APAC.

Rare Earths Norway (Private) – Discovery of significant Rare Earth carbonate deposit in Telemark county, Norway

• The rare earth discovery is in the Fen Carbonatite Complex in a 580 million year old Norwegian volcano around 62 miles southwest of Oslow.
• REN is looking to produce a ‘pure mixed rare earth concentrate’ which would still need processing into the rare earth metal oxides required for processing into rare earth magnets.
• The resource extends to a depth of 468m below sea level and could extend to over 1km deep and is described as a “transformative asset that can underpin a secure rare earths value chain for Europe.”
• REN are working a number of partners such as Montanuniversität Leoben in Austria, to develop the deposit.
• The project has a Maiden Inferred Mineral Resource estimated at 559mt grading 1.57% TREO ‘Total Rare Earth Oxides’ indicating the complex could contain 8.8mt of contained rare earths of which 1.5mt may be magnet-related REEs.
• Funding: REN is now working on localization and full financing of the pilot project with NOK20m has already committed by Telemark Utviklingsfond (TUF).
• Exploration, development of new technologies, and test mining are expected to lead to an investment decision of NOK10bn for the first stage of mining by 2030.
• REN aims to cover 10% of the demand for rare earths, in line with European Union goals under the Critical Raw Materials Act (CRMA).
• It will be interesting to see if the Norwegian authorities will consider full processing of the REE concentrate in Norway or if this material will need to be shipped to somewhere with less onerous environmental restrictions.

Victoria Gold (VGCX CN) C$7.4, Mkt Cap C$503m – Heap leach pad failure

• The Company reports a failure of the heap leach pad at the Eagle Goldd Mine in Yukon.
• No injuries to personnel are reported, although, there has been damage to infrastructure with part of failure leaving containment.
• Operations are suspended as investigations by natural resource officers are underway.
• The Eagle Gold Mine hosts a bulk low grade gold deposits that delivered 167koz treating ~9mtpa at 0.72g/t using heap leaching in 2023.
• Mineral Reserves and Resources are estimated at 114mt at 0.63g/t for 2.3moz and 270mt at 0.60g/t for 5.2moz, respectively.
• Before the incident operations were guided for 165-185koz in gold production at US$1,450-1,650/oz AISC for 2024.

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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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 of less than 15%