SP Angel Morning View -Today’s Market View, Tuesday 4th March 2025

Gold rallies on Trump-fuelled volatility as China FX policy comes into focus

MiFID II exempt information – see disclaimer below

Ariana Resources (AAU LN) – Dokwe upgrades mineral resources estimate

Aston Bay Holdings (BAY CN) – Storm Copper MRE

Galileo Resources (GLR LN) – Geophysics identifies potential drilling targets in the Kalahari Copper Belt, Botswana

Greatland Gold (GGP LN) – Interim report highlights promising start to ownership of Telfer and feasibility work at Havieron

Kavango Resources* (KAV LN) – Drilling completes at Hillside Gold Project, Prospect 3 in Zimbabwe

New Frontier Minerals (formerly Castillo Copper) (NFM LN) – Harts Range geophysical survey results

Rome Resources (RMR LN) – Mont Agoma drilling results, DRC

SolGold* (SOLG LN) – Management restructuring and strategic evolution

Gold ($2,920/oz) rallies on Trump-fuelled volatility as China FX policy comes into focus

• Gold rallied yesterday and overnight, rising nearly $100/oz after recent weakness to $2,833/oz.
• Trump’s press conference yesterday, combined with various stagflationary data weighed on markets and triggered a rally in US treasuries.
• The 10-year yield has now fallen from 4.8% to 4.14% as traders brought forward rate cut expectations amid growth slowdown concerns.
• Soft manufacturing data is adding further fuel to growth concerns, with tariffs set to accentuate any growth slowdown.
• China retaliated to Trump’s tariff imposition with 15% duties on various American farmed goods.
• We note Trump’s comments on China weakening their Yuan as adding further fuel to the gold rally.
• Chinese buyers have been a major propellant of gold’s move from $2,000/oz last year to c.$3,000/oz today.
• Trade tensions continue to mount between China and the US, escalated yesterday and likely supporting the move higher.
• Speculation is rising that China will let the yuan depreciate to blunt the impact of tariffs and support exporters.
• Analysts expect the PBoC to continue to hold the yuan steady, but any further weakness against the dollar is expected to push Chinese buyers further into gold as a haven.

Copper ($9,383/t) slides as China ramps up output despite collapsing smelting fees

• Copper prices have fallen further, now down nearly $200/t since Trump called for an inquiry into the market.
• This triggered wide spreads across the Atlantic, with CME copper trading at a 10% premium to reflect tariff expectations.
• However, copper market fundamentals remain somewhat shaky.
• There has been a substantial ramp up in refined copper recently, expected to grow 4.9% to 12.5mt in 2025.
• This follows a 3.1% growth last year.
• This is a result of a mass rollout in smelter capacity, predominantly driven by China, which is currently being reflected in near record low TCRC fees.
• China demand is relatively flat, as renewable energy/grid spending offsets the downturn in construction.
• State-backed Chinese smelters are sustaining output whilst smaller smelters are struggling with unprofitability.
• A similar dynamic occurred in the Chinese steel market, where large mills outlasted smaller, higher-cost operations, creating a widespread industry consolidation.
• Copper prices may be vulnerable to a return to production of Cobre Panama (previously 1.5% of global output), which could add concentrate to global supply.

Lithium – Chinese operators ramping up supply to meet EV demand growth and maintain market dominance

• CATL announced plans to bring back its giant Jiangxi lepidolite operation in China which produces 6% of global supply.
• Chile saw its third largest export month for lithium products in January, up 56% yoy.
• Additionally, Ganfeng is boosting output from its Mariana brine operation, whilst Sigma is aiming to double output by 2026 whilst the Manono project in the DRC is brought online by Zijin.
• Spodumene operators are also cutting costs, with the AFR reporting that the global spodumene AISC fell 14%yoy in 2024.
• However, demand continues to accelerate, and we suspect energy storage solutions will provide an additional demand tailwind.
• Additionally, Western producers continue to struggle to generate cash at these levels, with SQM set to report a c.40% decline in lithium revenue today.
• Meanwhile Australian spodumene producers continue to operate at losses. We question MinRes’ ability to continue operating Mt Marion and Wodgina at current levels being called into question.
• We see China securing long-term lithium supply as a sign of substantial future demand growth expectations.
• We highlight CATL’s recent IPO prospectus: CLICK LINK
  • Global NEV sales volume expectations
    • 55.6m units in 2030 vs 17.5m in 2024
  • Global NEV market penetration
    • 55.7% vs 17.5% in 2024
  • China NEV sales volume expectations:
    • 32.1m units in 2030 vs 11.5m units in 2024
    • Penetration rate rises from 43% to 90.1% between 2024 and 2030
  • Global EV battery shipments to increase from 974GWh to 3,758Gh, a CAGR of 25.2% to the end of the decade.
  • Energy Storage Battery Shipments to rise from 300GWh in 2024 to 1,400GWh in 2030E

Economics

Recession trade is back as investors prepare for impact of Trump tariffs

• US bond yields continue to fall to 4.15% from 4.8% since Trump’s inauguration indicating concern over a potential slowdown in the US economy.
• Bitcoin has also fallen 10% over the past 24 hours and ~20% since Trump’s inauguration
• Gold has risen 8% since Trump’s inauguration to $2,924/oz today.

US – President Trump imposed 25% import tariffs on Canada and Mexico and a 20% levy on shipments from China.

• Duties are estimated to affect more than $900bn of US imports from Canada and Mexico.
• Canada said it would immediately retaliate with a 25% tariff on $30bn of US imports followed by a similar action against a furth $125bn of US goods 21 days later.
• Mexico also promised to retaliate.
• China said it would impose fresh tariffs on a series of agricultural imports from the US next week
• An escalation in trade wars saw investors shunning risk and bidding safe haven assets with S&P500 and Nasdaq posing 1.8% and 2.6% drops on Monday.
• Separately, ISM data showed that manufacturing activity slower to stagnation while orders and employment contracted.
• At the same time prices paid for materials surged to the highest level since June 2022 on tariffs concerns.
• “Demand eased, production stabilized, and destaffing continued as panellists’ companies experience the first operational shock of the new administration’s tariff policy,” ISM commented on the data.
• ISM Manufacturing (Feb/Jan/Est): 50.3/50.9/50.7
• ISM Prices Paid (Feb/Jan/Est): 62.4/54.9/56.0
• ISM New Order (Feb/Jan/Est): 48.6/55.1/54.6
• ISM Employment (Feb/Jan/Est): 47.6/50.3/50.1

TSMC, the world’s largest semiconductors manufacturer, said it would invest at least $100bn in chip production facilities in Arizona, US. (FT)

• The amount is in addition to previously committed $65bn.
• Investment into the US may see the Company avoiding potential import tariffs that the US administration previously suggest could be as high as 50%.

European nations are considering available options for more than €200bn of Russian frozen assets.

• France is discussing a potential to seize assets in case of a future ceasefire deal violation by Russia.
• Europe has been using interest earned on assets as a repayment of Ukraine related aid while leaving principal amount untouched.
• Paris, Berlin and Brussels have previously pushed back against the idea of an outright seizure of assets worrying that it may be a dangerous precedent and undermine the euro’s status as a safe haven option for foreign reserves.

Ukraine/US – The US is reported to have suspended military ais as White House puts pressure on Ukraine to start negotiating a ceasefire.

• US accounts for a third of total military supplies to Ukraine and for the majority of air defence missiles and long range precision strike equipment.
• The US also a major provider of military intelligence that other NATO allies do not have capabilities to match.
• It is unclear if the decision to suspend military aid affects intelligence and logistical support.
• Commenting on a potential ceasefire deal President Trump said that “it should not be hard a deal to make… it could be made very fast”.
• “Now maybe somebody doesn’t want to make a deal, and if somebody doesn’t want to make a deal, I think that person won’t be around very long,” he added.

Currencies

US$1.0496/eur vs 1.0405/eur previous. Yen 149.05/$ vs 150.09/$. SAr 18.618/$ vs 18.674/$. $1.270/gbp vs $1.259/gbp. 0.621/aud vs         0.622/aud. CNY 7.283/$ vs 7.292/$.

Dollar Index 106.501 vs 107.354 previous.

Precious Metals

Gold US$2,908/oz vs US$2,868/oz previous

Gold ETFs 85.8moz vs 85.5moz previous

Platinum US$955/oz vs US$952/oz previous

Palladium US$935/oz vs US$935/oz previous

Silver US$31.8/oz vs US$31.3/oz previous

Rhodium US$4,775/oz vs US$4,725/oz previous

Base metals:   

Copper US$9,364/t vs US$9,335/t previous

Aluminium US$2,604/t vs US$2,609/t previous

Nickel US$15,780/t vs US$15,630/t previous

Zinc US$2,816/t vs US$2,822/t previous

Lead US$1,989/t vs US$1,990/t previous

Tin US$31,675/t vs US$31,310/t previous

Energy:           

Oil US$70.7/bbl vs US$72.6/bbl previous

• Crude oil prices moved lower after OPEC+ confirmed it would commence in April the roll back of 2.2mb/d of voluntary additional output cuts at a rate of 138kb/d per month for the next 18M.
• Saudi Aramco reported average FY24 production down 3% y/y to 12.4mboe/d (83% oil) generating $85.3m free cash flow after $50bn of capex, but has reduced the total expected payout to $85bn (~5% yield) in 2025 from $124bn last year, which had flipped the Company’s balance sheet into a $21bn YE24 net debt position.
• Tullow announced it has repaid in full its $493m outstanding bonds that matured on 1 March, which was funded from a combination of drawing down the Glencore debt facility and cash on the balance sheet.

Natural Gas €43.8/MWh vs €46.6/MWh previous

Uranium Futures $65.0/lb vs $65.0/lb previous

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$106.9/t vs US$106.9/t

Chinese steel rebar 25mm US$485.0/t vs US$485.4/t

HCC FOB Australia US$184.0/t vs US$185.5/t

Thermal coal swap Australia FOB US$103.5/t vs US$99.0/t

Other:  

Cobalt LME 3m US$24,215/t vs US$23,985/t

NdPr Rare Earth Oxide (China) US$61,042/t vs US$60,999/t

Lithium carbonate 99% (China) US$9,888/t vs US$9,892/t

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

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

China Tungsten APT 88.5% FOB US$343/mtu vs US$343/mtu

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

Europe Vanadium Pentoxide 98% US$4.8/lb vs US$4.8/lb

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

China Ilmenite Concentrate TiO2 US$299/t vs US$299/t

Global Rutile Spot Concentrate 95% TiO2 US$1,543/t vs US$1,543/t

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

Brazil Potash CFR Granular Spot US$322.5/t vs US$322.5/t

Germanium China 99.99% US$2,775.0/kg vs US$2,775.0/kg

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

Battery News

Honda to build new Civic in Indiana over Mexico due to new tariffs

• Japanese automaker Honda will build its new hybrid Civic in Indiana, rather than Mexico, so that it avoids tariffs of one of its top selling models, according to people familiar with the matter. (Reuters)
• Several automakers have expressed concern about new 25% tariffs on Mexico and Canada brought in by Donald Trump.
• Honda had selected Guanajuato, Mexico as the location for its new plant, with production slated for 2027.
• It is now expected that the new Civic model will be produced in Indiana from May 2028 with an annual production of around 210,000.
• Honda sold some 1.4m cars and trucks in the US last year, with 40% imported from Mexico and Canada.

BYD raises $5.59bn in Hong Kong primary share sale

• Chinese EV maker BYD has raised $5.59 billion in a primary share sale in Hong Kong.
• The company said it sold 129.8m primary shares in the deal, up from the original 118m million shares planned when the deal launched on Monday.

Company News

Ariana Resources (AAU LN) 1.98p, Mkt Cap £36m – Dokwe upgrades mineral resources estimate

• Ariana Resources has issued a revised mineral resource estimate for its Dokwe gold project located 110km west of Bulawayo in Zimbabwe showing a 9% increase in the overall in-pit resource compared to July 2024 estimates.
• The new estimate, based on a 0.3g/t gold cut-off, is an overall 44.9mt at an average grade of 0.98g/t gold hosting 1.42m oz.
• Almost 70% of the in-pit resource (0.98moz) is classed as ‘Measured & Indicated’ with 19.7mt at an average grade of 1.54g/t gold at the higher cut-off of 0.6g/t.
• In detail, the new estimate, at a 0.6g/t COG comprises:
  • A ‘Measured’ resource of 10.22mt at an average grade of 1.50g/t hosting ~0.49moz of gold; and
  • An ‘Indicated’ resource of 9.47mt at an average grade of 1.59g/t hosting ~0.48moz of gold; and
  • An ‘Inferred’ resource of 3.22mt at an average grade of 1.35g/t hosting ~0.14moz of gold.
• The Dokwe North deposit hosts around 93% of the total contained gold (1.32m oz) in an overall 42.97mt at an average grade of 0.95g/t with the balance at the Dokwe Central deposit.
• The company explains that the new resource estimate, which is based on 141 diamond drill holes and 57 percussion drillholes, supports “a Feasibility Study investigating a 2Mtpa processing plant and a production rate of up to 100,000 ounces per annum over a ten-year mine life”.
• Ariana Resources comments that “It is considered reasonable to expect that some of the Inferred Mineral Resources could be re-classified as Indicated Mineral Resources with continued exploration … [but cautions that] … due to the uncertainty of Inferred Mineral Resources, it should not be assumed that such upgrading will always occur”.
• Today’s announcement explains that the resource growth since the estimate of 1.31m oz released in July 2024 reflects “a new geological model, which constrains mineralisation within three geologically defined domains at Dokwe North, leading to a more robust mineralisation model. Improved confidence in the new model has enabled the more advanced Ordinary Kriging estimation method to be employed, in preference to the previous Inverse Distance Weighting Squared methodology”.
• Managing Director, Dr. Kerim Sener, commented that “As part of the Feasibility Study, we are looking to stage our development pathway to minimise up-front capital expenditure, maximise early revenue and maintain significant long-term optionality across the production schedule”.
• Taking the opportunity to recognise the contribution of the technical team, Dr. Sener explained that the new estimate “is supported by improved confidence in the underlying geological model. This outcome resulted from the work undertaken by our technical team, which dedicated several months to an extensive reappraisal of the geology and other technical details of the Dokwe deposit”.
• We note that, since Ariana Resources first became involved at Dokwe last year, the resource base has been upgraded apparently as a result of improved understanding of its geological context and structure, hence the plaudits to the technical team.
• Dr. Sener also commented that “Based on our current understanding of the broader exploration opportunity in the region, we fully expect Dokwe can be developed into a major mining hub in the longer term and as one of the most significant developments of its kind in Zimbabwe”.

Conclusion: The revised MRE for Dokwe supports the current feasibility work examining production of up to 100koz pa over a 10-year open-pit mine life.  We await the outcome of the feasibility study and of the continuing wider regional exploration with interest.

Aston Bay Holdings (BAY CN) C$0.05, Mkt cap C$13m – Storm Copper MRE

• Yesterday, Aston Bay, Canadian explorer, reported an initial MRE from the Storm Copper Project in Nunavut, Canada.
• The MRE holds six copper/silver deposits within the wider Storm project.
• Aston Bay holds 20%, whilst American West is the Project Operator and holds 80%.
• Aston Bay is free-carried to the decision to mine post-FS.
• The MRE holds
• • Indicated: 8.2mt at 1.47% and 4.5g/t Ag for 121kt Cu and 1.19moz Ag.
  • Inferred: 3.3mt at 1.30% and 3.1g/t Ag for 43kt and 333.6koz Ag.
• Open-pit mining reportedly accounts for 90% of contained metal, with 100% of the MRE consisting of fresh, chalcocite-dominant copper sulphide.
• Company aiming to use ore sorting to support the production of a DSO product with a copper grade of 54% Cu.
• Company notes that all six deposits are open, and Company notes that ‘<5% of the 110km long copper belt has been adequately explored.’
• The Gap, which reported 20m at 2.3% Cu from 38m, will be targeted for resource definition drilling.

Galileo Resources (GLR LN) 0.8p, Mkt Cap £9.3m – Geophysics identifies potential drilling targets in the Kalahari Copper Belt, Botswana

• Galileo Resources reports that induced polarisation (IP) geophysical surveying has identified potential drilling targets within its PL039/2018 and PL040/2018 prospecting licences in the Kalahari Copper Belt (KCB), Botswana.
• The company highlights one “compelling drill target” on ‘Line 1’in licence PL039 located “on the crest of the ‘Galileo’ Fold, analogous to the adjacent Mowana Fold which has been shown to be copper mineralised in drilling carried out by Khoemacau and Arc Minerals”.
• The site also has a coincident geochemical anomaly “lying directly over the up-dip part of the chargeability anomaly … [and previous] … Galileo drilling in the area … has provisionally identified traces of copper mineralisation in several of the holes at the target horizon level”.
• “A follow-up drill programme will be prepared which will test both the PL039/2018 Line 1 target and other geophysical targets supported by the planned pXRF analytical work on earlier drill core with reported copper traces”.
• Explaining that “previous work undertaken by the Company on these two licences identified anomalies based on soil geochemical surveys located close to the southeastern basin margin of the Kalahari Copperbelt … [Chairman & CEO, Colin Bird said that] …  the latest results provide powerful motivation to pursue the newly confirmed geophysical targets with vigour”.

Conclusion: Coincident geophysical and geochemical anomalies within Galileo Resources’ KCB prospecting licences in Botswana provide drilling target. We look forward to results from the exploration drilling await results as the programme progresses.

Greatland Gold (GGP LN) 8.75p, Mkt Cap £1,104m – Interim report highlights promising start to ownership of Telfer and feasibility work at Havieron

• Reporting interim results for the six months to 31^st December 2024, Greatland Gold announces a pre-tax loss of £4.16m (2023 – £5.47m loss) offset by a £22.19m tax benefit to deliver an overall profit after tax of £18.03m (2023 – £5.47m loss).
• The company also reports a closing cash balance of £71.9m (30^th June 2024 – £4.8m) and nil debt (30^th June 2024 – £41.5m).
• Describing the period, during which Greatland Gold “completed the consolidation of 100% ownership of Havieron and Telfer, establishing us as a gold-copper producer of significance” as transformational. Managing Director, Shaun Day, said that Greatland Gold had delivered a “strong start to production in December and the combination of a high Australian dollar gold price, very substantial mined stockpiles at surface”.
• He also highlighted the identification of “Telfer mine life extension targets, and the approaching development of the world class Havieron gold-copper asset”.
• The company has previously announced that an initial programme of 19 drillholes at the West Dome area of its Telfer gold mine has confirmed the presence of high-grade mineralisation, in a geological setting similar to that at the mine’s Main Dome underground mine, around 800m below the West Dome open pit where it has also “confirmed near term extension opportunities at the West Dome Open Pit in both Stage 7 and Stage 8 extension”.
• Havieron, which Greatland Gold discovered in 2018, and the company describes as “one of the largest high-grade gold discoveries in Australia of the last 20 years and … the second largest undeveloped gold project by Mineral Resource in Australia” is located approximately 45km east of Telfer.
• Feasibility work on the development of a 2.8mtpa mine at Havieron producing “an average 258koz gold equivalent per annum in steady state (first 15 years) at lowest quartile costs, utilising the Telfer processing infrastructure” over a 20-years mine life is expected to be available later this year.
• Mr. Day also confirmed that “Preparations for our ASX cross listing are well underway and we continue to target listing in the June 2025 quarter”.

Conclusion: The acquisition of Telfer and consolidation of Havieron ownership in December 2024 transforms Greatland Gold into an operating gold producer with an advanced near term development nearby.

Kavango Resources* (KAV LN) 0.65p, Mkt Cap £10m – Drilling completes at Hillside Gold Project, Prospect 3 in Zimbabwe

• Kavango Resources plc report the completion of drilling at Prospect 3, within the larger Hillside Gold Project.
• Management plan to collate the drill results into a new resource for the project for the probable development of an open cast mine.
• Two rigs were running when we were at the site including a Chinese drilling team who were using a new type core barrel for better core collection.
• The rigs have drilled 34 (2,109m) diamond drill holes on a 25m x 25m grid inclined at -60° to an average depth of 60m.
• Mapping shows local miners formerly produced gold from:
  • “12 workings with at least 2 different vein orientations, from shear zones hosting gold bearing quartz-veins in both granodiorite and oxidized meta-sediments”.
• Sufficient material has been collected for metallurgical test work to support the maiden resource at Prospect 3.
• Geology of Prospect 3:
  • “Drilling has confirmed the presence of shear zones hosting quartz veins below the artisanal miners surface workings, within the diorite, granodiorite, metasediments and metavolcanics.
  • The mapped and interpreted shear zones display a WNW-ESE trend, dipping generally towards the NNE.
  • The artisanal workings on surface appear to correlate well with the mineralised zones observed in the logged drill cores”

• The map above shows the location of the drill holes across artisanal workings and interpreted structural features.
• The downhole geology is also logged and shown along the borehole trace though it is difficult to see in the RNS map.
• Greenstone belt: Kavango has two projects on the same greenstone belt in Zimbabwe at Hillside and Nara.
• Geologists see similarities between the Zimbabwe Zimgarn Craton (2.6bn years old) and the Yilgarn Craton in Western Auatralia near Perth.
• The reasoning suggests Zimbabwe’s Filabusi greenstones may host similar scale gold deposits to those found in the West Australian  Archaean  greenstone belts.
• Mining license: Rather unusually, the Hillside prospects are permitted for mining due to the presence of so much local, informal mining activity.
• The workings by the informal miners appear well formed and structurally solid. The local miners blast daily to develop their workings with some veins followed to >100m depth.
• We expect many of these local miners will find gainful employment with Kavango as it develops more modern and more efficient mining across the Hillside prospects.

Conclusion:  There is much to be found at Hillside with so many parallel veins identified across the prospects. Prospect three contains multiple veins >800m of identified strike

While we are hopeful for the results at Prospect 3 we should wait for the drill results before taking a view on the possible scale of the resource estimate.

*Two SP Angel Analysts recently visited Kavango’s Hillside mines and licenses in Zimbabwe. An SP Angel analyst holds shares in Kavango

New Frontier Minerals (formerly Castillo Copper) (NFM LN) 0.85p, Mkt Cap £12.4m – Harts Range geophysical survey results

• New Frontier Minerals – formerly Castillo Copper, reports that its recently completed helicopter based radiometric and magnetic geophysical survey at its Harts Range project northeast of Alice Springs in the Northern Territory, Australia has “identified numerous discreet uranium anomalies – a path finder to heavy rare earths mineralisation”.
• Today’s announcement confirms that “At the key Bobs and Cusp Prospects, enhanced imagery shows discreet Uranium anomalies coincident with mineralised pegmatites that are prime targets for drill testing”.
• The announcement also explains that “enhanced magnetics (RTP 1VD) imagery shows Bobs and Cusp sit on an ENE trending structure, which is interpreted to repeat to the north and south”.
• Commenting on the geophysical results, Chairman, Ged Hall, said that they “are beyond the Board’s expectations, with multiple targets for uranium anomalies lighting up across the entire Harts Range Project. Even better, is the Uranium anomalies are a pathfinder for high value Heavy Rare Earths mineralisation”.
• Mr. Hall said that “the Cusp and Bobs Prospects are now clearly prime targets. Overall, the exploration potential at the Harts Range Project has increased significantly, and the geology team are set to return to site imminently to work on systematically identifying prime targets to drill-test”.
• Following the initial results from the geophysics “detailed integrated interpretation of the magnetics and radiometric data is being undertaken with more comprehensive targets expected in mid-March 2025”.
• Before the field exploration season starts, the company’s “geology team will utilise the integrated geophysical and geological datasets to identify and target key areas for ground truthing which will include geological mapping and sampling to validate and identify targets for drilling”.

Conclusion: Initial results from a helicopter based geophysical survey at Harts Range have surpassed the company’s expectations with radiometric anomalies highlighting the potential of an ENE trending structure in the Bobs and Cusp Prospects. We await further news of the company’s plans with interest.

Rome Resources (RMR LN) 0.27p, Mkt Cap £16.7m – Mont Agoma drilling results, DRC

• Rome Resources reports a 148m long intersection at an average grade of 0.35% copper from 73.6m depth in hole MADD-018 at the Mont Agoma prospect in North Kivu Province, DRC.
• The broader intersection contains “a 62.25m cumulative higher-grade zone at 0.61% Cu”.
• The company also says that recent “drilling has identified visible tin across a 40m interval in hole MADD024 and an associated visible copper zone totalling 179m. MADD024 is approximately 70m beneath the earlier hole MADD012, which reported a c40m wide zone of tin with zones of tin grading at between 0.1-0.3% tin”.
• Rome Resources also explains that the “scale and continuity of the tin, copper, zinc and silver mineralisation identified within the broad 200m wide mineralised corridor is aligned with the Company’s board of directors’ … view that Mont Agoma hosts a robust polymetallic mineralised system in which copper and zinc dominate the shallow, near surface levels and that tin mineralisation identified within broad zones increases at depth”.
• Today’s announcement also confirms that mineralisation at Mont Agoma remains “open along strike and at depth … [and that] … these intercepts provide a strong foundation for continued deeper drilling to define the full extent of this growing discovery”.

SolGold* (SOLG LN) 6p, Mkt Cap £186m – Management restructuring and strategic evolution

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1. Solgold reports management and strategy changes as it seeks to accelerate the development of its flagship Cascabel project in Ecuador.
2. Mr. Dan Vujcic is appointed CEO with Scott Caldwell moving to become a non-executive Director while Paul Smith assumes the non-executive Chairmanship of Solgold.
3. Mr. Vujcic is described as having “extensive experience in the resource industry holding senior executive positions across the industry and in investment banking including Jefferies, Morgan Stanley and Citi advising companies on mergers and acquisitions and public fundraises for the development of large mining projects”.
4. He was “most recently … the Chief Development Officer of MAC Copper Limited”.
5. Mr. Smith is “a highly experienced resources sector executive, adviser and investor. His career has included investment banking, fund management and corporate executive roles. Mr Smith was previously the Head of Strategy at Glencore plc”.
6. Strategically, Solgold is creating a “Technical Committee … to oversee the Cascabel development project”.  The Committee is tasked with progressing the permitting of Cascabel and the completion of the Definitive Feasibility Study (DFS) as well as investigating “programs to potentially enhance and accelerate aspects of the project”.
7. Specific tasks of the Technical Committee include:

• • “Operational plant location and design”; and
  • “Optimisation of tailings storage strategy” as well as looking at the
  • “Early commencement of access tunnelling to the Alpala ore body”: and
  • The “Definition of reserves at Tandayama beside the Alpala ore body with a view to early open cut development and early copper gold production”
  • “Metallurgical investigations to determine copper and gold recovery Tandayama and to improve recoveries at Alpala”; and
  • “Refinement of the opportunity for Hydro power supply at Cascabel to reduce modelled operating costs”.

1. The feasibility study will build on the existing prefeasibility study, released in March last year which describes an underground block-caving operation with an initial 28-year mine life generating an after-tax NPV8% of US$3.2bn and IRR of 24% from an initial pre-production investment of US$1.55bn.
2. Solgold will also progress its extensive Ecuador exploration “portfolio of 89 licences covering over 3000km² of highly prospective copper gold exploration targets. The portfolio covers eighteen exploration targets of which twelve are high priority … [via the establishment of] … a distinct exploration subsidiary to hold these tenements”.
3. The new exploration subsidiary “will include Porvenir, in southern Ecuador, which will be assessed at scoping study level internally to assess best value add strategies (the project currently has a resource of 493.7Mt @ 0.43% CuEq) … [as well as] … Blanca, which lies 8 kms north of Cascabel and shows an alteration footprint of similar size to Cascabel”.

Conclusion: Senior management changes at Solgold and a renewed strategic focus on accelerating Cascabel should provide added impetus to the completion of the DFS whic seems likely to include open-pit development at Tandayama to bring forward initial production.  We are encouraged to learn of the renewed exploration focus which delivered Cascabel and a large portfolio of projects throughout Ecuador.

*SP Angel acts as broker to Solgold

LSE Group Starmine awards for 2024 commodity forecasting:

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Precious Metals forecasting in LSEG Annual Starmine Award for Reuters Polls 2024

No.2 in Base Metals: SP Angel mining team awarded No 2. ranking for Base Metals forecasting in LSEG Annual Starmine Award for Reuters Polls 2024

Analysts

John Meyer –John.Meyer@spangel.co.uk – 0203 470 0490

Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484

Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk – 0203 470 0474

Arthur Parish – Arthur.Parish@spangel.co.uk – 0203 470 0476

Sales

Richard Parlons –Richard.Parlons@spangel.co.uk – 0203 470 0472

Abigail Wayne – Abigail.Wayne@spangel.co.uk – 0203 470 0534

Rob Rees – Rob.Rees@spangel.co.uk – 0203 470 0535

Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471

SP Angel                                                            

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.

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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.

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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