SP Angel Morning View -Today’s Market View, Tuesday 6th June 2023

US Fed expected to maintain rates as China considers cut to borrowing costs to support demand

MiFID II exempt information – see disclaimer below

African Pioneer (AFP LN) – Copper exploration targets on the Western Foreland of NW Zambia.

Ariana Resources (AAU LN) – 2022 reported as the company’s most successful operating year in its 20 year history

Golden Metal Resources (GMET LN) – Geophysical data identifies additional exploration potential at Pilot Mountain, Nevada

Great Southern Copper (GSCU LN) – Aeromagnetic survey underway at Especularita , Chile

Great Western Mining* (GWMO LN) – Update on gold and silver processing mill and special use permit granted

Phoenix Copper* (PXC LN) – Metallurgical results from Empire oxide mineralisation

Rainbow Rare Earths (RBW LN) – Phalaborwa pilot plant front end commissioned

Tertiary Minerals* (TYM LN) – KoBold Metals provides geophysical data package for Konkola West licence

Copper climbs alongside base metals as China calls on banks to slash deposit rates to stimulate economy

• Copper prices have climbed again to $8,277/t as China looks to stimulate lacklustre economy.
• Beijing is reported to have asked major banks to cut deposit rates to alleviate lending pressure and inject liquidity to the economy. (Bloomberg)
• Copper demand in China has been muted as the property sector continues to struggle on weaker demand and sliding prices.
• New loans weakened in April, as business reduced borrowing appetite.
• Households remain cautious and prefer to save and pay down mortgages than investing in new properties, weighing on base metal demand.
• Peruvian copper output is reported to have jumped 30% in April yoy, with monthly output hitting 222kt s Southern Copper ramped up Las Bambas and Cerro Verde production.
• Inventories are sliding in LME warehouses as South Korea is increasing buying.
• Contango levels are weakening, suggesting supply is getting tighter as spot demand increases. May had been the weakest since records began in the 90s.
• Marex reports Chinese copper smelting activity improved in May, taking advantage of increased concentrate supply from South America.
• Nickel and zinc are seeing recoveries having fallen 12% and 22% respectively in Q2.

Gold – $1,958/oz – Price bounces as US economic data disappoints, supporting Fed pause bets

• Gold strengthened from yesterday’s weekly lows after US ISM data disappointed.
• The market is looking for further confidence in a Fed rate pause next week, with gold continuing its inverse relationship with Treasury yields.
• The 10-year Treasury yield weakened to 3.67% after US ISM service data came in lower than expected at 50.3 in May vs 51.9 in April and expectations of 52.6.
• The report showed slowing business activity and weakening orders alongside softer prices, supporting expectations of a Fed hike pause.
• The dollar fell as traders continue to weigh the strength of the US economy.

China reported to stimulate Yunnan aluminium smelters with additional power grants

• SMM report Yunnan officials are set to grant 2m kw worth of power grants to aluminium smelters imminently.
• The move follows increased rainfalls in the region, boosting hydropower generation.

EV – manufacturing

• Yesterday we visited a UK-based EV manufacturer highlighting how innovation and knowhow in the UK continues to create jobs and growth opportunities .

Economics

China – Authorities are asking nation’s largest lenders to lower their deposit rates in an effort to support waning growth momentum, Bloomberg reports.

• State owned banks including Bank of China, Industrial & Commercial Bank of China and Bank of Communications were last week advised to cut rates on its deposits by 5bp on demand deposits (0.25% currently) and 10 bp on three- and five-year deposits (2.6% and 2.65%, respectively).
• As deposit rates come down, banks will be able to reduce their lending rates over time.
• The news follows the data showing credit and new loans softened significantly lately as consumers and businesses cut on spending and borrowing.

ECB – President Lagarde reaffirmed expectations that the central bank is not ready to pause the tightening cycle yet.

• “The latest available data suggest that indicators of underlying inflationary pressures remain high and, although some are showing signs of moderation, there is no clear evidence that underlying inflation has peaked,” Lagarde said.
• Inflation in the Eurozone dropped to 6.1% in May from 7.0% the previous month while core prices, which exclude volatile food and fuel and are closely watched by the ECB, rose by just 5.3% from 5.6%.
• The policy rate announcement is due next Thursday with expectations for rates to go up 25bp to 4.0%.
• This is in contrast to the Fed stance with markets expecting the US central bank to remain put next week keeping rates at 5.00-5.25%.

Germany – A disappointing read on factory orders for April as demand dropped again highlighting challenging economic outlook.

• Tighter monetary policy to fight inflation contributing to the softening demand, Bloomberg writes.
• Factory Orders (%mom): -0.4 v -10.9 (revised from -10.7) March and 2.8 est.
• Factory Orders (%yoy): -9.9 v -11.2 (revised from -11.0) March and -8.4 est.

Australia – The central bank raised rates for a 12^th consecutive time in little more than a year with the governor suggesting that further monetary tightening may be required, FT reports.

• While inflation passed its pear current 7% levels remained “too high”.
• Rate increased by 25bp to 4.10%.

Ukraine/Russia – The Kakhovka dam in the Ukrainian region of Kherson was destroyed overnight with the water level in the reservoir used to power hydropower station rapidly decreasing.

• The dam also supplies water the Crimea peninsula and to the Zaporizhzhia nuclear plant.
• Authorities launched an evacuation programme from potential flooding areas with ~22,000 people living across 14 settlements in southern Kherson region are at risk of flooding.
• The UN nuclear watchdog, the International Atomic Energy Agency, said it is closely monitoring the situation but that there was “no immediate nuclear safety risk at the plant”.
• Ukrhydroenergo, Ukraine’s state owned hydropower company, said the blast came from the inside the engine room suggesting it were Russian forces that blew up the dam.
• Russian side claims the dam was destroyed as a result of Ukrainian shelling of the area causing it to collapse.
• The flooding following the incident may slowdown the counteroffensive across the left bank of the Dnipro river.

Russian paramilitary group loyal to Ukraine seizes Russian soldiers in daring cross-boarder raid in Russia

• The anti-Kremlin fighters, known as the RVC ‘Russian Volunteer Corp’ captured a dozen Russian soldiers in Belgorod, just 400 miles from Moscow.
• The pro-Ukraine militia also claims to have captured more Russian troops and plans to hand the men over to Ukraine.
• It will be interesting to see if more Russian paramilitary groups pop up alongside the RVC and Free Russia Legion to challenge Putin’s regime.

Oil – Russia is pumping as much oil as it can and selling it to whoever will take it, albeit with hefty discounting

• Electric Vehicles are slowly eroding diesel and gasoline consumption with >1m EVs sold last month adding to a total EV fleet of .
• The total number of EVs in the world is now estimated at around 20m vehicles with around 10.6m EVs sold in 2022
• While this represents around 1.5% of the global passenger vehicle fleet we reckon new vehicles account for a greater proportion of miles driven
• EVs drive around 11,000 – 13,000 miles a year versus gasoline cars which are driven ~9,000 – 11,000 a year

Apple shares trade lower in after-market hours after closing 0.8% lower on Monday as the Company unveiled its first VR headset.

• Priced at $3,499 and to be available “early next year”, Vision Pro, combines virtual reality with augmented reality and is said to have been the most anticipated hardware product launch since iPad presented by Steve Jobs in 2010.
• Revealing the product Tim Cook said the headset is used for “seamlessly blending the real world with the digital world” and was ”the first Apple product you look through and not at”.

Currencies

US$1.0718/eur vs 1.0686/eur yesterday. Yen 139.25/$ vs 140.44/$. SAr 19.195/$ vs 19.463/$. $1.244/gbp vs $1.239/gbp. 0.667/aud vs 0.659/aud. CNY 7.108/$ vs 7.120/$.

Dollar Index 103.85 vs 104.28 yesterday.

Commodity News

Precious metals:

Gold US$1,958/oz vs US$1,942/oz yesterday

Gold ETFs 94.0moz vs US$94.1moz yesterday

Platinum US$1,032/oz vs US$1,010/oz yesterday

Palladium US$1,409/oz vs US$1,437/oz yesterday

Silver US$23.45/oz vs US$23.41/oz yesterday

Rhodium US$6,400/oz vs US$6,400/oz yesterday

Base metals:   

Copper US$ 8,277/t vs US$8,211/t yesterday

Aluminium US$ 2,225/t vs US$2,251/t yesterday

Nickel US$ 21,000/t vs US$20,875/t yesterday

Zinc US$ 2,302/t vs US$2,280/t yesterday

Lead US$ 2,035/t vs US$2,027/t yesterday

Tin US$ 25,740/t vs US$25,650/t yesterday

Energy:           

Oil US$75.6/bbl vs US$77.6/bbl yesterday

• Crude oil prices gave up most of its OPEC+ gains as market sentiment see-sawed back to concerns regarding demand outlook, with traders hoping to see positive signs following the start of the US driving season.
• European energy prices edged higher as French nuclear reactor operating levels reported as decreasing from 57% to 54% of capacity w/w from 30 available reactors (from 32) out of 56 units.

Natural Gas US$2.248/mmbtu vs US$2.218/mmbtu yesterday

Uranium UXC US$54.60/lb vs US$54.60/lb yesterday

Bulk:

Iron ore 62% Fe spot (cfr Tianjin) US$106.1/t vs US$104.6/t

Chinese steel rebar 25mm US$526.2/t vs US$527.8/t

Thermal coal (1st year forward cif ARA) US$100.0/t vs US$96.0/t

Thermal coal swap Australia FOB US$143.5/t vs US$134.5/t

Coking coal swap Australia FOB US$225.0/t vs US$225.0/t

Other:  

Cobalt LME 3m US$29,525/t vs US$29,525/t

NdPr Rare Earth Oxide (China) US$69,044/t vs US$68,813/t

Lithium carbonate 99% (China) US$41,131/t vs US$41,077/t

China Spodumene Li2O 6%min CIF US$4,030/t vs US$4,030/t

Ferro-Manganese European Mn78% min US$1,259/t vs US$1,266/t

China Tungsten APT 88.5% FOB US$323/mtu vs US$323/mtu

China Graphite Flake -194 FOB US$755/t vs US$760/t

Europe Vanadium Pentoxide 98% 7.1/lb vs US$7.1/lb

Europe Ferro-Vanadium 80% 31.75/kg vs US$31.75/kg

China Ilmenite Concentrate TiO2 US$310/t vs US$310/t

Spot CO2 Emissions EUA Price US$85.3/t vs  US$82.1/t

Brazil Potash CFR Granular Spot US$345.0/t vs US$345.0/t

Battery News

Chinese firms continue to dominate battery market

• CATL (SHE: 300750) and BYD (OTCMKTS: BYDDY) continued to be the world’s two largest power battery manufacturers according to the latest data between January and April.
• Global battery consumption for EVs totalled 182.5GWh, up 49% from 122.5GWh in the same period last year according to data from SNE Research.
• CATL continues to rank No. 1 in the world with a 35.9% share – higher than its 34.4% share in the same period last year and up 35% on January to March figures.
• BYD continues to grow in the market with a 16.1% share from 11.5% yoy.
• BYD has gained popularity in China’s domestic market with its competitive pricing by establishing a vertically integrated supply chain management, including battery self-sufficiency and vehicle manufacturing.
• Chinese manufacturers are expected to accelerate their entry into overseas markets, such as the US and Europe, in H2 ‘23 in preparation for a gradual decline in growth rates in China’s domestic markets.

Company News

African Pioneer (AFP LN) 3.05p, Mkt Cap £5.6m – Copper exploration targets on the Western Foreland of NW Zambia.

• African Pioneer reports that First Quantum Minerals, its partner on licences in north west Zambia has identified “mineralisation with diagnostic regional geological and architectural similarities apparently consistent with Kamoa-Kakula deposit mineralisation located in the DRC”.
• The company says that exploration so far in the geological region known as the ‘Western Foreland’ has shown a geological setting which could “facilitate the large-scale deposition of high-grade copper mineralisation of the Kamoa-Kakula-type”.
• Ivanhoe Mines’ Kamoa Kakula deposit hosts a probable ore reserve of 235mt at an average grade of 4.47% copper within an indicated resource of 1.3bn tonnes at ana verage grade of 2.7% copper and produced around 330,000t of copper in 2022 at a cash cost of US$1.39/lb.
• Work planned for 2023 includes further geophysics and diamond and aircore drilling with a focus on the “Ikatu target, within the Western Foreland domain, aimed to better constrain the basin architecture and evaluate interpreted NW-SE trending structures”.
• African Pioneer says that structures of this orientation are an important control to mineralisation at Kamoa Kakula.
• Executive Chairman, Colin Bird said that “The apparent confirmation of the extension of the Western Foreland and the presence of key vectors possibly consistent with Kamoa-Kakula style of mineralisation is an exciting discovery and potentially paves the way for the delineation of the type of copper resource that could be transformational”.

Ariana Resources (AAU LN) 2.35p, Mkt Cap £28m – 2022 reported as the company’s most successful operating year in its 20 year history

• Reporting on what the company describes as “very satisfactory results for the year” Ariana Resources reports a pre-tax profit of £5.0m for the year ended December 2022.
• The company says that although this “was £2.7m less than 2021, albeit that year benefited from the profit of £6.4m on the part disposal of our Turkish interests”.
• Ariana also reports “the decline in cash balances from £16.4m to £9.4m, comprising dividends paid by the Company to shareholders amounting to £4m during the year as part of the special dividend arising on last year’s part disposal of our interests, and also an increase in tax payable in Turkey of £1.9m due to corporation tax changing to becoming payable in advance there”.
• Explaining that 2022 was the company’s 20^th year, it says that 2022 was, operationally, its “most successful year to date, achieving record gold production and revenue from its Turkish mine, coupled with the most drilling ever completed across three simultaneous campaigns at Kiziltepe, Tavşan and Salinbas … [as well as] … the commencement of construction at the Tavşan mine site in July, which will lead to the development of Zenit’s second gold mining operation in Türkiye”.
• In March, the company said that it expects to produce around 18,000oz of gold in 2023 from the processing of approximately 350,000t of ore at a grade of ~1.7g/t gold at its 23.5% owned Kiziltepe gold mine in Turkey where production is planned from the Arzu North, Derya and Banu open-pits.
• The company comments on the “strategic investment of US$2.5 million into the Company by Newmont Mining Corporation in March, … [and the] … grant of the first four exploration licences in Kosovo, coupled post-period end with the grant of the first Project Leopard exploration licences in Eastern Türkiye”.
• Ariana Resources says that it “keen to advance on larger projects capable of supporting the Company on its journey towards becoming a mid-tier mine developer … [and says that it is ] …. undertaking several project and jurisdictional reviews with the aim of securing a significant new flagship asset around which the future of the Company may continue to be built”.

Conclusion: Ariana Resources is now looking for larger projects to support aspirations of becoming a mid-tier mine developer.

Golden Metal Resources (GMET LN) 7.13p, Mkt Cap £5.6m – Geophysical data identifies additional exploration potential at Pilot Mountain, Nevada

(Power Metal Resources (POW LN) 0.76p, Mkt cap £15m holds 62% of Golden Metal Resources)

• Golden Metal Resources reports that interpretation of induced polarisation (IP) geophysical information from its wholly-owned Pilot Mountain project located approximately 200km SE of Reno has identified three further exploration targets.
• The existing mineral resources at Pilot Mountain comprise 9.01mt of indicated resources at an average grade of 0.26% tungsten trioxide (WO₃) plus an inferred resource of a further 3.53mt at an average grade of 0.31% WO₃ within the deposits at Desert Scheelite and Garnet.
• In addition to tungsten mineralisation, the Desert Scheelite mineral resources contains Silver (19.38g/t), copper (0.15%) and zinc (0.38%).
• The new geophysical targets include:

• • The Desert Scheelite Parallel West Zone located approximately 250m NW of the main Desert Scheelite mineralisation and “very well-defined … [by a]… resistivity low (conductivity high) geophysical feature that is mapped for approx. 500m in a generally east-west direction”; and
  • The Porphyry Depths Zone which appears to “broadly connect the Desert Scheelite and Good Hope zones at depth … [at depth beneath shallow cover and is] … defined by a resistivity and chargeability high and as a result it is postulated that it is related to a porphyry intrusion at depth”.; and
  • The Desert Scheelite East Extension Zone which “extends from known mineralisation at Desert Scheelite towards the east under cover where it has never been drill tested … [and today’s announcement explains that] … One of the furthest east historical drillholes completed at Desert Scheelite returned some of the strongest copper and tungsten mineralisation ever found at Pilot Mountain which includes 17.5m @ 1.8% Cu (incl. sub-interval of 13.9m @ 0.89% W0₃). Because of this, the previous operator in 2013 completed a two dimensional IP survey across and to the east of Desert Scheelite. The goal of this survey was to profile the eastern extension of mineralisation from the main Desert Scheelite Zone”.

• While Pilot Mountain’s existing resource is “is believed to be the largest and most advanced undeveloped tungsten resource located in the USA” CEO, Oliver Friesen, explained that “with these three new exploration targets now identified the opportunity has grown significantly”.

Conclusion: Tungsten is recognised in many jurisdictions as a ‘Critical Mineral’ and the identification of additional exploration targets at the USA’s largest tungsten deposit provides Golden Metal Resources with an opportunity to expand the resource to could underpin a future mine development.

Great Southern Copper (GSCU LN) 1.45p, Mkt Cap £4.1m – Aeromagnetic survey underway at Especularita , Chile

• Great Southern Copper reports that it has started a high-resolution aeromagnetic survey over its Especularita licences in Chile where it has identified high-grade copper mineralisation in outcrops and in waste dumps from previous artisanal mining at the Teresita and Victoria prospects.
• The survey aims to “identify and delineate potentially high-grade, vein and breccia type Cu-Au deposits … and will also enhance the Company’s understanding of the district geology”.
• CEO, Sam Garrett, commented that “Recent exploration work at the prospects suggests that the alteration associated with the high-grade Cu-Au mineralisation is both non-magnetic and magnetite-destructive whereas the surrounding wall rocks are magnetic. Therefore, we expect that zones of potential mineralisation will be visible in the magnetic data. This will be used to support our drill targeting for the scout drilling programmes planned for later in the year”.
• Great Southern Copper recently raised £1m to fund further exploration at Especulrita where early stage rock-chip sampling and mapping identified breccia veins reported to “strike in a NNE-NE orientation over a distance of up to 400m and vary in outcrop width from 3 to 20m” and yielded peak sample results of 6.9% copper and 1.85g/t gold from outcrops of breccia veins.

Conclusion: High resolution aeromagnetic surveying at at Especularita should  help in the identification of drilling targets to follow up later in the year.

Great Western Mining* (GWMO LN) 0.1p, Mkt Cap £4.6m – Update on gold and silver processing mill and special use permit granted

• GWM reports an update on its processing operation JV with Muletown Enterprizes, Western Milling.
• Great Western is fully funded for the financing of the mill’s construction and commissioning.
• Concrete is currently being set, with the beginning of the plant installation process set to begin imminently.
• The JV received a ‘Special Use Permit’ required for establishing the mill by the County Commissioner and expects to receive a production permit from the Nevada Department for Environmental Protection by August 2023.
• A simplified flow diagramme of the plant design is accessible on Great Western’s website via: CLICK FOR LINK
• The mill will cater for both gravity separation and contained leaching of pre-mined, easily accessible gold and silver ore and tailings identified across GWM’s licence block.
• Plant capacity will begin at 5 t ph of feedstock, but this is expected to ramp up with minor investment.
• The mill will operate at 70+ hrs per week over c.48 weeks pa, allowing for inevitable maintenance and weather disruptions.
• Great Western estimates it has between 1,980-2,810 oz of Au and between 9,250-40,300 oz of Ag in its possession, ample supply to recover CAPEX and begin to generate cash flows for shareholders.
• The Company expects to claim additional pre-mined material in the region whilst also attracting third party feedstock to support throughput once it has successfully processed its current inventories.
• Western Milling will sell the AuAg concentrate to domestic refineries at an expected 10% discount to spot prices.

Conclusion: Both the approval of the ‘Special Use Permit’ and the initial setting of concrete at the mill site mark a major milestone for Great Western Mining and its Western Milling JV. Despite delays caused by both weather disruption and supply chain bottlenecks, the Company has progressed the mill site towards initial production. Through the generation of revenue from easily accessible pre-mined material, the Company aims to maximise shareholder value, protecting equity stakes from special financing arrangements and funding exploration programmes across the Company’s expansive and highly prospective claim blocks.

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

Phoenix Copper* (PXC LN) 26.5p, Mkt Cap £34m – Metallurgical results from Empire oxide mineralisation

(Phoenix holds 80% of the Empire mining property in Idaho)

CLICK FOR PDF

• Phoenix Copper reports on its metallurgical testing of the environmentally benign reagent, ammonium thiosulphate (ATS) on oxide material from its Empire oxide project in Idaho.
• The preliminary tests were undertaken by Resource Development Inc (RDI) in Wheat Ridge, Colorado.
• ATS has the potential to “replace the use of sulphuric acid and cyanide in the recovery and processing of copper and precious metals respectively” and could also facilitate the recovery of “copper, gold and silver in one process, thus bringing forward the production of precious metals from the Empire Mine open pit” potentially enhancing the project economics.
• Today’s announcement does not report specific recovery rates but confirms that testing showed “robust metal recoveries using representative bulk ore samples from metallurgical drilling at the Empire Mine open pit oxide deposit … [and that recovery rates] … are similar to those earlier produced at AuRIC Laboratories in Salt Lake City, Utah (“AuRIC”) using smaller samples taken from surface trenching”.
• In January 2021, the company reported that laboratory scale tests had shown ATS “to be as effective as cyanide, with laboratory gold recoveries as high as 97.8%.”.
• CEO, Ryan McDermott, commented that the latest testing “increases the Company’s confidence that not only does ATS technology work for material sourced on the surface, but more importantly ATS works with material representative of the Empire open pit resource as a whole”.
• He explained that “We will now focus on optimizing metal recovery balanced with reagent consumption, and applying appropriate capital and operating costs to the proposed process design. Assuming the process is commercially viable, we would then plan to formally incorporate it into our Plan of Operations for final submission to the regulatory authorities”.
• He also explained that the company which had conducted the earlier test work, AuRIC Laboratories in Salt Lake City, Utah has now closed following the decision of its principals to “retire and close their business … [and that] … Phoenix has purchased all of the assets from AuRIC following its closure, including the analytical equipment and supplies necessary for the onsite laboratory that will service the Empire Mine once it is in operation … saving up to three times as much as the purchase of new equipment”.
• The announcement confirms that the “next phase of required testing is the finalisation of the preliminary results and assessment of metal recovery balanced with reagent usage.  The results of this work will then be applied to a proposed process design, and the capital and operating costs of the design, which will ultimately determine the commercial viability of the process”.

Conclusion: We look forward to further results from the metallurgical test work and confirmation of whether ATS is to be incorporated as a reagent in the flowsheet for the Empire oxide pit and its impact on the project economics

*SP Angel acts as nomad to Phoenix Copper

Rainbow Rare Earths (RBW LN) 9.57p, Mkt cap £50m – Phalaborwa pilot plant front end commissioned

• Rainbow Rare Earths report the start of the front end of its pilot plant for the testing of its theoretical flow sheet for the Phalaborwa project in South Africa.
• Management state the pilot plant project is ‘on track to produce the first high-value mixed rare earth sulphate in Q3 2023’
• They go on to say the :Pilot plant back end, to produce separated magnet rare earth oxides, is well advanced in terms of its construction, with commissioning due Q3 2023
• Mintek are running the first stage pilot plant, see video at: https://www.rainbowrareearths.com/news-media/media/
• Interestingly, management are looking ‘to permanently establish its back-end process in the US’. Meaning the smart technology will be done outside South Africa.
• The high-value mixed rare earth sulphate will then be shipped to Rainbow’s rare earth separation plant at K-Technologies, Inc. in Florida for further refinement into its chosen REEs
• That’s not such a bad idea given the direction of South African politics towards Russia and the parlous state of Eskom, the South African power generator.
• The South African part of the plant will produce a simple rare earth sulphate from processing the gypsum mined from the stacks.
• The sulphate should contain economic quantities ‘NdPr’ neodymium and praseodymium, dysprosium and terbium.
• The ability to produce specific REE metal oxides should raise the sales value and scale of the market for the products particularly within the US.
• Mintek will ship a quantity of ‘mixed rare earth sulphate solids’ from the pilot plant front end to the US for further downstream test processing in the K-Tech pilot plant to deliver separated magnet REE oxides.
• K-Tech plans to water leach the mixed rare earth sulphate into a pregnant leach solution, to perform a cerium rejection step to minimise flows downstream into the CIX circuit for loading onto the cation resin before stripping and going into the final CIC ‘continuous ion chromatography’ step. This should result in the separation of 99.95% rare earth oxides according to K-Tech, using their patented CIX/CIC technology.
• This material is suitable for sale directly into permanent magnet plants being developed in the US and aligned countries.
• Rainbow has a 30.4mt resource grading 0.44% total rare earth oxides at Phalaborwa.

Conclusion:  Testing, running and keeping the patented K-Tech process in Florida looks like a good idea assuming the South African authorities are willing to issue export permits for the mixed rare earth sulphate.

Tertiary Minerals* (TYM LN) 0.11p, Mkt cap £2.3m – KoBold Metals provides geophysical data package for Konkola West licence

CLICK FOR PDF

• Tertiary provides an update on its Konkola West project in Zambia.
• Tertiary’s local partner, Mwashia Resources, has received an extensive geophysical exploration data package from KoBold Metals.
• The data was provided at no cost to Tertiary.
• KoBold Metals is backed by BHP, Bill Gates and Jeff Bezos and looks to use artificial intelligence to maximise exploration potential.
• The venture is investing $150m into the Mingomba Copper Deposit which lies adjacent to Tertiary’s Konkola West licence.
• Mingomba holds a resource of 250mt @ 3.8% Cu.
• KoBold’s data package comprises airborne gravity, magnetic and radiometric data across the entirety of Tertiary’s 72 sq.km Konkola licence.
• Both parties are exploring the potential for a down-dip extension to the Musoshi-Lubambe-Mingomba-Konkola copper deposits.

*SP Angel acts as Nomad and Broker to Tertiary Minerals

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 – [email protected] – 0203 470 0490

Simon Beardsmore – [email protected] – 0203 470 0484

Sergey Raevskiy –[email protected] – 0203 470 0474

Sales

Richard Parlons –[email protected] – 0203 470 0472

Abigail Wayne – [email protected] – 0203 470 0534

Rob Rees – [email protected] – 0203 470 0535

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

SP Angel                                                            

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*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 ([email protected]).

SPA research ratings – Based on a time horizon of 12 months: Buy = Expec