SP Angel Morning View -Today’s Market View, Tuesday 6th August 2024

Gold recovers on greater volatility in global equity and US Treasury markets

MiFID II exempt information – see disclaimer below

Anglo Asian Mining* (AAZ LN) – Tailings dam wall raise authorisation secured allowing to restart agitation/flotation operations

Aterian plc* (ATN LN) – Imminent start of drilling in Morocco

Atlantic Tin (Unlisted) – Acquistion of Samine, Morocco

Bushveld Minerals* (BMN LN) – AGM statement reiterates business turnaround focus

Galan Lithium (GAL LN) – Non-Binding Proposal from EnergyX

Goldstone Resources* (GRL LN) – Homase operations update

KEFI Gold and Copper* (KEFI LN) – Update on extensive exploration programme carried by GMCO in Saudi Arabia

Petra Diamonds (PDL LN) – Sales tender postponed to address weakness of the rough diamond markets

Savannah Resources* (SAV LN) – Local investor buys more stock in the market

Gold ($2,414/oz) prices recover on greater volatility in global equity and US Treasury markets

• Gold prices have recovered ground from yesterday’s lows, where they touched $2,370/oz.
• The metal sold off despite a sharp rally in Treasuries, only recovering when the US government bonds pared some gains.
• The 10 Year fell to lows yesterday of 3.67% in the midst of the Japan/Non-farm payroll sell-off.
• The benchmark rate has since rebounded to 3.85% after concerns of an intermeeting rate cut have faded.
• US ISM data cooled recession nerves somewhat, beating expectations.

Copper prices ($8,860/t) hold lower as stockpiles rise on limited Chinese demand

• Copper prices fell to $8,730/t yesterday, before consolidating lower around the $8,850/t mark.
• Prices were pressured alongside other metals in yesterday’s global sell off.
• However, the trend has been down for copper over the summer, falling from its overextended highs of $11,000/t in May.
• LME inventories are up 50% ytd, at the highest point in three years.
• South Korean and Taiwanese inventories are seeing a major inflow of exported Chinese supply.
• Shanghai stocks are rising, at their highest seasonal level since records began.
• Slowing growth concerns are also weighing on copper, which is often considered a gauge of the health of the global economy.
• Other base metals sold off alongside copper, with tin nearing April lows, lead at two year lows, and zinc also suffering.

Iron ore prices shrug off global market weakness and seven-year rebar lows

• 62% Fe iron ore prices held over $104/t overnight, despite commodity weakness and steel slumping in China.
• Rebar prices fell near seven-year lows, down 13% this year.
• Improved China Caixin composite PMI data pointed to some green shoots in the manufacturing sector.

Lithium continues to suffer as China ramps up supply into surplus environment

• China battery grade carbonate prices are hovering in the mid $10,000s, despite last year’s expectations of a rebound to c.$20k/t.
• Spodumene prices have held below $1,000/t for several months now, putting pressure on Australian hard rock producers.
• Albemarle has called for government intervention to support the industry, as it announced cost-cutting plans last week.
• China LFP cathode output has disappointed analysts in Q2, whilst Argentina continues to add supply.
• Industry players still see deficits towards the end of the decade, as EV penetration rates continue.
• Western spodumene producers are working on cost cutting initiatives, with the larger players like Pilbara looking to ramp up additional capacity over the longer term.

Economics

Turnaround Tuesday – equity markets recover from yesterday’s sharp selloff

• Automated Algorithm trading almost certainly exacerbated yesterday’s sharp selloff in equity markets in Japan and elsewhere.
• The Nikkei closed 10% higher recovering much of yesterday’s 12.4% loss. Remember a 1% loss is greater than a 1% gain in real money terms so it’s not quite as good as it sounds.

US – Consumer confidence rises to 100.3 from 97.8 in July vs 99.8 forecast

• Consumers remain concerned over high prices and interest rates and remain uncertain over the future.
• S&P US Services PMI 55 (55 estimated/56 previous)
• S&P US Composite PMI 54.3 (55 previous)
• ISM Services Index 51.4 (51 estimated/48.8 previous)
• ISM Services Prices Paid 57 (55 estimated/56.3 previous)
• ISM Services Employment 51.1 (46.4 estimated/46.1 previous)
• ISM Services New Orders 52.4 (49.8 estimated/47.3 previous)

Iran / Israel – Truckloads of surface-to-surface ballistic missiles making way to southern Syria 

• Iran has vowed to overwhelm Israeli defense systems
• Weapons convoys are seen moving non-stop and unhindered from Iran through Iraq to Syria.
• Hezbollah: A missile will answer a missile, an attack at location x will be met with an attack inside Israel.
• Iran moving missile launchers (Wall Street Journal)
• Putin national security advisor in Tehran yesterday. Russia now supplying Iran with radar systems and air defense. Many Russians have Israeli connections but Putin appears to like conflict and chaos.
• Hezbollah leader Hassan Nasrallah due to speak today at 15:00BST
• Israeli Air Force eliminated a commander in the Hezbollah Radwan Force degrading their ability to conduct terror activities from Southern Lebanon.
• US warning Israel not to go for pre-emptive strikes and that a regional war will benefit no one.

Eurozone Q2 GDP rises 0.3% qoq beating expectations

• Ireland grew at the fastest rate at +1.2% followed by Lithuania at +0.9% and Spain with +0.8%
• France came in at 0.3% GDP growth
• The worst performers were Latvia at -1.1%, Sweden surprised at -0.8% lower and Hungary at -0.2% where Victor Orbán appears to be one of Putin’s useful stooges

• EU Retail Sales -0.3% MoM (0.1% estimated/0.3% previous)
• EU Retail sales -0.3% YoY (0.1% estimated/0.3% previous)

UK – Construction activity grows at fastest rate for 26 months

• Housebuilders are reporting a pick up in activity and new orders through July (S&P Global).
• PMI Construction rose to 55.3 in July from 52.2 in June its fastest rate of expansion since May 2022.
• Civil engineering expanded fastest, followed by commercial work and then housebuilding.
• The new Labour government is planning on ramming through the construction of 1.5m new homes this parliament.
• Does the country really need 1.5m new homes and can the nation afford them?

UK Chancellor could adjust debt-GDP-measure to release £17bn for next budget

• The chancellor has revealed a £22bn funding gap in the spending plans they inherited from the previous government

Malaysia issues a travel warning to the UK

• Malaysia issues a travel warning to the UK due to street riots against immigrants after multiple mass stabbings of children. In light of the riots in the UK, the government announced immediate funding of $37 million to.. wait for it.. secure mosques.

Currencies

US$1.0936/eur vs 1.0925/eur previous. Yen 145.62/$ vs 143.05/$. SAr 18.520/$ vs 18.507/$. $1.275/gbp vs $1.276/gbp. 0.651/aud vs 0.641/aud. CNY 7.148/$ vs 7.144/$

Dollar Index 103.01 vs 102.92. US dollar recovers following rise in volatility in major equity markets

Precious metals:         

Gold US$2,405/oz vs US$2,430/oz previous

Gold ETFs 82.6moz vs 82.5moz previous

Platinum US$920/oz vs US$934/oz previous

Palladium US$853/oz vs US$858/oz previous

Silver US$26.91/oz vs US$28/oz previous

Rhodium US$4,625/oz vs US$4,650/oz previous

Base metals:   

Copper US$ 8,856/t vs US$8,986/t previous

Aluminium US$ 2,253/t vs US$2,253/t previous

Nickel US$ 16,270/t vs US$16,225/t previous

Zinc US$ 2,631/t vs US$2,626/t previous

Lead US$ 1,967/t vs US$2,009/t previous

Tin US$ 29,320/t vs US$29,730/t previous          

Energy:           

Oil US$76.7/bbl vs US$76.1/bbl previous

• Energy prices stabilised following recent volatility with contrasting concerns over global demand growth for oil and Middle East tensions impacting LNG supply.
• Saudi Aramco reported average 2Q24 production down 9% y/y to 12.3mboe/d generating $31.1bn operating cash flow, which supports the quarterly $31bn cash dividend (~7.7% annualised yield).

Natural Gas €36.2/MWh vs €36.0/MWh previous

Uranium Futures $81.4/lb vs $82.4/lb previous           

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$104.4/t vs US$104.2/t

Chinese steel rebar 25mm US$501.2/t vs US$505.0/t

Thermal coal (1st year forward cif ARA) US$123.8/t vs US$123.8/t

Thermal coal swap Australia FOB US$144.5/t vs US$144.0/t

Coking coal Dalian Exchange futures price US$196/t vs US$199.0/t

Other:  

Cobalt LME 3m US$26,500/t vs US$26,500/t

NdPr Rare Earth Oxide (China) US$52,181/t vs US$52,140/t

Lithium carbonate 99% (China) US$10,562/t vs US$10,568/t

China Spodumene Li2O 6%min CIF US$940/t vs US$940/t

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

China Tungsten APT 88.5% FOB US$325/mtu vs US$325/mtu

China Graphite Flake -194 FOB US$465/t vs US$465/t

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

Europe Ferro-Vanadium 80% 25.15/kg vs US$25.15/kg

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

China Rutile Concentrate 95% TiO2 US$1,406/t vs US$1,407/t

Spot CO2 Emissions EUA Price US$67.6/t vs US$66.4/t

Brazil Potash CFR Granular Spot US$297.5/t vs US$297.5/t

Germanium China 99.99% US$2,145.0/kg vs US$2,145.0/kg

China Gallium 99.99% US$440.0/kg vs US$440.0/kg

Battery News

BYD sees record sales of new energy vehicles in July, but EV sales slipped

• In July, BYD sold a record 342,000 NEVs, marking 30% growth yoy.
• Fully electric sales saw a slight decline from August, but PHEV sales continued to grow, hitting record levels for the fifth consecutive month.
• For the first seven months of 2024, BYD sold 1,955,366 NEVs, up 29% from the same period in 2023.
• This includes 856,153 fully electric vehicles (a 14% increase) and over 1m PHEVs (a 44% increase).
• Internationally, BYD sold 30,014 vehicles in July, an 11% increase from June, and has plans to expand into Canada, challenging established North American EV brands.
• While BYD briefly overtook Tesla as the leading EV brand by sales last year, Tesla reclaimed the top spot in the first half of 2024.
• However, BYD is expected to regain this position through 2027, according to Bloomberg Intelligence.

EU sales of battery electric vehicles up 50% last year

• In 2023, the EU saw a 48.5% surge in BEV registrations, reaching a record 1.5m new cars and increasing the total to 4.5m.
• This growth boosted BEVs’ share of new car registrations to 14.6%, up from less than 1% in 2018.
• Denmark leads with 7.1% of all passenger cars being electric, followed by Sweden (5.9%), Luxembourg (5.1%), and the Netherlands (5.0%).
• However, 14 EU countries, including Cyprus, Greece, and Poland, report BEV shares below 1%.
• This growing trend towards EVs is expected to continue, driven by advancements in technology, supportive policies, and increased environmental awareness.

VW’s PowerCo to help produce QuantumScape solid-state battery cells

• Volkswagen’s battery company, PowerCo SE, and US-based QuantumScape have agreed to industrialise QuantumScape’s solid-state lithium metal battery technology.
• Initially, PowerCo can produce up to 40GWh per year, with the option to expand to 80GWh, enough to supply approximately 1m vehicles annually.
• This agreement replaces a previous joint venture and combines QuantumScape’s advanced technology with PowerCo’s manufacturing expertise.
• PowerCo’s CEO, Frank Blome, highlighted the companies’ long-term collaboration and expressed optimism about scaling this innovative technology for mass production.

UK carmakers to miss government targets on EV sales

• The UK car industry has downgraded its forecast for EV sales for 2024, despite 18.8% yoy growth in July.
• This is the latest sign of pessimism in the industry over its ability to meet government targets for shifting away from fossil fuels.
• The Society of Motor Manufacturers and Traders (SMMT) expects sales to grow more slowly for the rest of the year, revising its annual forecast that battery cars would account for 19.8% of totals sales in 2024, to 18.5%.
• Automakers are worried that they will miss EV targets set by the UK government – under the governments zero emission vehicle (ZEV) mandate, 22% of each carmaker’s sales must be pure battery cars in 2024, rising to 80% by 2030.
• SMMT chief executive Mike Hawes is worried the industry won’t meet government targets.
• “Weakening private retail demand, particularly for EVs and despite generous manufacturer discounts, is the overriding concern,” Hawes said. “More people than ever are buying and driving EVs but we still need the pace of change to quicken, or else the UK’s climate change ambitions are threatened and manufacturers’ ability to hit regulated EV targets is at risk.”

Lucid to get $1.5bn in funding to push electric SUV

• Lucid Group’s largest shareholder, Saudi Arabia’s Public Investment Fund, will inject up to $1.5bn in cash, as the EV maker looks to ramp up production of its new SUV.
• The deal comes just ahead of Lucid’s planned production of its much-awaited Gravity SUV later this year and keeps the EV maker sufficiently funded till Q4 2025.
• Lucid will use the funds for tooling to produce the Gravity SUV and to build its factory in Saudi Arabia, with an annual capacity of 150,000 vehicles per year.

US batteries poised for new lithium iron age

• The US is looking towards the battery technology that is dominant in China’s domestic EV market.
• Lithium iron phosphate (LFP) batteries accounted for about half of the capacity of EVs sold in China last year.
• US manufacturers could decide to look past its lower energy storage capacity in favour of its cheaper cost and greater safety.
• LFP accounted for only 9% of capacity in the US in 2022, and 0% in 2021.
• Battery startup Our Next Energy (ONE) will build LFP batteries in the US after opening a new $1.6bn battery plant.
• By 2027 ONE is aiming to supply enough LFP batteries for 200,000 EVs per year.
• Ford has also announced that is licensing technology from Chinese global battery giant CATL so it can offer customers lower-priced options for its EVs.

Battery swapping continues to boom in China

• A boom in autonomous vehicles is expected to boost the battery swapping sector in China further.
• Baidu, unveiled its 6^th-generation robotaxis in Wuhan, with the autonomous vehicles using battery swapping technology.
• Each vehicle autonomously schedules visits to these stations based on service status, location data, and battery levels, and completes a rapid battery swap upon arrival to maximise operational efficiency.
• The rapid commercialisation and deployment of autonomous ride-hailing and taxi services are expected to drive demand for battery swapping.
• Battery swapping offers advantages such as unmanned operation, high efficiency and lower costs from a reduced human workforce.
• CITIC Securities has forecast that the number of battery swapping stations will reach 27,500 by 2026, with a 93% CAGR from 2022 to 2026.

Company News

Anglo Asian Mining* (AAZ LN) 92p, Mkt Cap £102m – Tailings dam wall raise authorisation secured allowing to restart agitation/flotation operations

BUY

• The Company announced yesterday that the Government of Azerbaijan authorised to raise the wall of existing tailings dam at Gedabek operations.
• Construction works will start immediately.
• The team will now start preparations for a restart at the agitation and flotation processing facilities that is expected to take up to one week.
• Development works are ongoing with first production reiterated for 4Q24.
• The team will provide an updated production guidance for the year in due course.

Conclusion: Official authorisation for the tailings dam wall raise construction is great news allowing for a long awaited restart in milling operations to feed agitation leaching and flotation plants. Operations are expected to restart shortly (within a week) following an unfortunate one year long suspension allowing the team to ramp production, start generating cash and focus on developing its extensive growth pipeline.

*SP Angel acts as Nomad and Broker to Anglo Asian Mining

Aterian plc* (ATN LN) 61p, Mkt Cap £6m – Imminent start of drilling in Morocco

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

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

• Aterian reports that a 1,000-2,000m initial programme of reverse circulation drilling at its Agdz copper/gold/silver project in central Morocco is expected to start in the near future.
• The 10 hole programme will target structural and geophysical targets across eight priority targets at the Makarn-Makarn North; Amwaro; Miniere; and Daoud prospects.
• The project area is located “approximately 14 km southwest of the Bouskour copper-silver mine (53 Mt at 0.8 % Cu and 9 g/t Ag), with the world-class Imiter silver mine (131 Moz of silver at 500 g/t Ag) located 80 km northeast of the Project”.
  • At the Makarn-Makarn North prospect rock chip sampling included an assay of 8% copper and 448g/t silver taken from an area where NNE trending mineralised dykes, shears and veins extend over “a lateral distance of 2.8 km”.
  • The Amwaro prospect, where rock chip sampling of “4.82 % Cu, 189 g/t Ag and 1.91 g/t Au” are reported from “Multiple NNE and NNW trending structures within a zone up to 2 km long and 200 m wide, bound by extensional structures. Individual alteration zones are up to 33 m wide”.
  • The 150m long Miniere prospect hosts historical mine workings with spoil (waste) samples of “up to 13.05 % Cu and 12 g/t Ag and 0.8 g.t Au”.
  • North-northwest trending quartz veins at the Daoud prospect extend over 700m show historical “rock chip grades of 2.71 % Cu, 152 g/t Ag, and 2.96 g/t Au. Mineralisation at the surface coincides with a 900 m-long linear geophysical anomaly interpreted from IP data”.
• Chairman, Charles Bray, confirmed that the drilling will “test several geophysical and structural targets within four priority target areas defined to date across the project. The geophysical anomalies scheduled for testing represent near surface targets, varying from 300m to greater than 2.5 km in strike length”.
• He explained that “Agdz is well situated within an active mining district and is served by regional infrastructure, lying 2 km from a recently upgraded all-weather road, 35 km from the city of Ouarzazate and 40 km from the Noor-1 solar power plant”.
• Initial assay results are expected “by the end of Q3”.

Conclusion: Aterian plans to start initial reverse-circulation drilling shortly at the Agdz prospect in Morocco with results expected by the end of September.

*SP Angel acts as Broker to Aterian Plc

Atlantic Tin (Unlisted) – Acquistion of Samine, Morocco

• The unlisted Australian company, Atlantic Tin, reports that it has completed its acquisition of Société Anonyme d’Entreprises Minières (‘SAMINE’), the owner of the former El Hammam mine from Managem.
• El Hammam is located adjacent to Atlantic Tin’s Achmmach tin project and CEO, Simon Milroy, explained that “The SAMINE processing plant already has a two-stage crushing plant, milling, flotation, thickening and filtering in place as well as power, water and communications. This will result in a significant reduction in the capital cost to bring the Achmmach mine into production in comparison to building new infrastructure at Achmmach”.
• Today’s announcement explains that “Ore will be mined underground at Achmmach and transported by road 7km to the El Hammam mine for treatment to produce tin concentrate” with a definitive feasibility study already underway “based on an 18- month construction schedule with commercial tin production commencing in 2026 and ramping up to a sustained mining and processing rate of 900,000 tpa of ore”.
• Atlantic Tin confirms that it also plans to commence exploration of Samine’s 111km² “exploitation license along strike from the Achmmach project, which is highly prospective for tin”.

Bushveld Minerals* (BMN LN) 0.56p, Mkt Cap £15m – AGM statement reiterates business turnaround focus

• AGM statement reiterates the Company’s strategy on optimising its portfolio of assets to focus on its upstream production facilities at Vametco and effective cost controls.
• The Company continues to rationalise operations by cutting costs and reducing head count as part of a turnaround programme at Vametco.
• Vanchem disposal is expected to close in October while a potential sale of BELCO and Lemur holdings, subject to execution of binding documentation, is expected to reduce outstanding debt by ~$4m.
• Proceeds from Vanchem sale as well as an up to $10m funding facility agreed with Orion helps the business with working capital needs during the turnaround period.
• Improved liquidity should help the team significantly as operations can make use of better quality spares and consumables improving stability of mining and processing facilities.
• The management holds a positive outlook and highlights cyclical nature of commodities markets with vanadium prices expected to recover given increased demand from Chinese steel rebar producers as new quality standards become enforceable from September.
• The Company notes that the long term average price for vanadium is in the $40/kg range compared to current ~$25/kg.

*SP Angel act as nomad and broker to Bushveld Minerals

Galan Lithium (GAL LN) A$0.125, MCap, A$61m – Non-Binding Proposal from EnergyX

• Galan responds to speculation in the AFR that it had received a takeover bid.
• Galan holds the Hombre Muerto project, which was guided to produce 5.4ktpa LCE from 1H25.
• Galan has been progressing offtake funding discussions with Glencore for up to US$100m and 100% of offtake.
• The Company announces today it has received a non-binding indicative proposal from Energy Exploration Technologies Inc.
• The offer from EnergyX stood at US$50m in cash alongside US$50m in EnergyX shares, valued by the acquiring company.
• EnergyX is private and currently fundraising.
• The Company states it has a ‘breakthrough DLE technology capable of nearly instant separation with high recovery rates from essentially every global brine.’
• DLE remains a nascent technology, with commercial production limited to Chinese salt lake brines which produce at low recovery rates.
• EnergyX technology uses modular DLE units with a variety of technologies including membranes, solvents and sorbents. They state they hold ‘nearly 100 patents.’
• Galan will receive a 10% gross revenue royalty over 10 years from the start of commercial production.
• The proposal is dependent on ‘completion of satisfactory due diligence and negotiation and execution of definitive, binding transaction documentation.’

Conclusion: The offer may provide a lifeline to Galan, who have struggled to ramp up their unconventional lithium brine product from Argentina amid the current low pricing environment. EnergyX may be able to unlock increased recoveries from the Hombre Muerto West brines using their DLE technology, which has been tested at bench scale of 1ltr/hr and 60ltr/hr flow rates, although significant further testing will be required.

Goldstone Resources* (GRL LN) 1.6p, Mkt Cap £15m – Homase operations update

• The Company updates on the status of ramping up operations at the Homase Gold Mine.
• Construction of the fourth leaching pad is now complete with Pads 5,6 and 7 development is progressing on schedule and budget.
• Pad 5 construction is now well advanced with civil engineering works completed with the liner being laid.
• Development of additional heap leaching pads will help the team to deliver the planned 50kt of stacked ore within the six months supporting targeted 1kozpm production rate.

*SP Angel acts as broker to Goldstone Resources

KEFI Gold and Copper* (KEFI LN) 0.58p, Mkt Cap £36m – Update on extensive exploration programme carried by GMCO in Saudi Arabia

• The Company provides an update on operations carried by 25% owned JV GMCO in Saudi Arabia.
• At Jibal Qutman project area, works are focused on infill drilling and metallurgical/engineering studies of the existing resource as well as regional exploration in the remaining untested 75% of license areas.
• At the Jibal Qutman existing MRE area, GMCO completed 18,000m of diamond and 10,000 of RC infill drilling with assay results expected shortly.
• That takes total amount of drilling completed on the project to nearly 110,000m.
• Updated Jibal Qutman MRE is guided for this quarter (3Q24).
• Core samples were also sent to laboratories in Germany and the UK for metallurgical testing.
• On infrastructure for a potential project, GMCO expanded its reconnaissance programme for ground water sources within the recently expanded licenses areas and launched a review of available hybrid power generations options.
• A trade off study was completed over feasibility for heap leaching operation treating oxide mineralisation versus CIL plant.
• Regional exploration is ongoing focusing on extensions of the main system in the JQ North and JQ Southeast exploration licenses.
• At Hawiah, GMCO is in final stages of the 65,000m infill drilling programme this quarter taking total drilling completed at site to 120,000m.
• Additionally, drilling extended limits of known mineralisation down plunge by 270m to a vertical depth of 740m.
• Updated Hawiah MRE is targeted for YE24.
• The team expects to convert 85-90% of the ~30mt resource into the higher confidence Indicated Resource category to be used for eventual Ore Reserves calculation.
• Work is being carried on the metallurgical side assessing different treatment options including flotation, Albion Process SXEW and ion exchange resins.
• On regional exploration, 2H24 programmes include geophysical surveys at Al Godeyer and Al Godeyer East to extend the known mineralised areas, geophysical surveys at Abu Salal as well as trenching/mapping at Wadi Na’afa, Al Awja, Jabal Selm, Jadib al Qahtanah Jabal Hillit and Qunnah.

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

Petra Diamonds (PDL LN) 29.2p, Mkt Cap £58m – Sales tender postponed to address weakness of the rough diamond markets

• Petra Diamonds has announced the postponement of its first FY2025 sales tender for its South African diamond production “to support steps taken by major producers to restrict supply in this weaker demand period”.
• The company confirms its view that “supply discipline, together with the expected seasonally stronger demand as we head towards the festive season, will provide some pricing support later in the calendar year”.
• Sales from the company’s Williamson mine in Tanzania are expected to continue as planned.
• The company says that its “recent steps to create a stronger balance sheet have provided us with flexibility around the timing of our tenders to respond to prevailing market conditions and we have adequate liquidity, including available and undrawn balances on our existing revolving credit facility, to fund our working capital requirements”.

Savannah Resources* (SAV LN) 3.8p, Mkt Cap £83m – Local investor buys more stock in the market

BUY – 18.3p

• Grupo Lusiaves added to their equity position in the Company acquiring ~7m shares in the market.
• That brings its interest in the Company to ~66m shares or 3.0%.
• Grupo Lusiaves was diluted from 3.2% below 3% earlier in June following a $20m (~343m shares) investment by AMG in June this year.

*SP Angel acts as Nomad and Broker to Savannah Resources

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, 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