SP Angel Morning View -Today’s Market View, Tuesday 9th April 2024

Gold $2,363/oz continues to surge as hedge funds extend bullish positions

MiFID II exempt information – see disclaimer below

Altona Mining – (REE LN) – Sesana copper exploration project, Botswana

Beowulf Mining* (BEM LN) – Consolidation of Vardar interest enables acceleration of exploration

Central Asian Metals (CAML LN) – Q1 Operations as construction activities continue before paste backfill begins

CleanTech Lithium (CTL LN) – CleanTech shares collapse 20% on CEO undeclared stock lending scandal

Great Southern Copper (GSCU LN) – Drilling results from the Teresita and Abundante prospects, Chile

Savannah Resources* (SAV LN) – Barroso development update

Shanta Gold (SHG LN) – Regulatory approvals update and infill drilling results at NLGM and Singida

Taseko (TKO LN) – $500m senior secured notes offering to redeem bonds and develop Florence copper project

Tertiary Minerals* (TYM LN) – Drilling to begin at Konkola West this month

UMMC (Private) – UMMC ends rescue efforts to free trapped miners at Pioneer gold mine in Russia amid unconfirmed report of further fatalities

Sharepickers: Gold & Lithium; Anglo Asian, Gileon, Kodal, Power Metals, Rainbow, Shanta – Video:  https://www.youtube.com/watch?v=2VHsauhHZ0w

Podcast: https://audioboom.com/posts/8484406-john-meyer-anglo-asian-gileon-kodal-power-rainbow-shanta-gold-lithium-copper

*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts. We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate. SP Angel acts as Broker/Nomad or both for Anglo Asian Mining, Kodal Minerals, Power Metals Resources.

Gold $2,363/oz continues to surge as hedge funds extend bullish positions

• Gold prices, currently trading at 2,357/oz, have climbed again overnight as buying persists.
• Gold has now outperformed the S&P 500 this year with a 15% rise vs the US index’s 10% rally.
• Bloomberg reports hedge fund positioning is increasingly bullish at 36% of open interest, but remain well below the 48% level considered overextended.
• The US 10 year is hovering around 4.4%, having touched recent highs of 4.465%.
• Traders were pricing in five cuts by the Fed at the beginning of the year – this has now fallen to two.
• A reversal in hawkish sentiment could propel gold higher by triggering ETF buying as yields fall. However this will require a slowdown in the US labour market which remains hot.
• Silver is also rallying, climbing to $28/oz, having been outperformed by gold over the past three weeks.

China’s Car sales accelerate in March

• China’s new energy vehicle (NEV) sales are estimated to reach 820,000 units in March 2024, up 33% yoy and 84% from February (CPCC)
• BYD reclaimed the top-selling automaker position in March with 302,500 vehicles delivered, up 46% yoy.
  • BYD’s Q1 2024 sales reached 626,300 units, a 13.44% increase from Q1 2023.
• Chery delivered 181,585 vehicles in March, up 45.3% yoy, but lost out position as sales leader having overtaken BYD in February.
  • Chery’s Q1 sales totalled 475,700 units, rising 49% yoy, with 87,000 units sold overseas.
• Great Wall Motor sold 100,276 vehicles in March, up 11% yoy, driven by NEVs and overseas markets.
  • Great Wall’s Q1 deliveries reached 275,333 units, a 25.11% increase from Q1 2023.
• China’s State Council released a plan in March to encourage vehicle trade-ins, supported by automakers like Nio and Chery which has stimulated new buying activity.

Copper nears 15-month high as seasonal demand strength looms

• Copper prices pushed above $9,400/t, rising to $9,485/t, or January 2023 highs.
• Q2 is traditionally copper’s strongest seasonal month, given the resumption of construction activities in China.
• However, copper contango remains at a thirty year high, with physical copper pricing sitting at a discount to futures.
• Copper inventories sit at four year highs.
• Analysts are boosting their forecasts for AI copper demand going forward, with Trafigura expecting AI and Data centres to boost the expected copper deficit by c.1mt by 2030.

Lithium carbonate prices near $16,000/t in China as supply tightens

• Shanghai Metals Market reports that carbonate trading surged overnight, with a contract changing hands at $15,954/t.
• The upward trend has continued since the beginning of the year, where carbonate prices were hovering around $13,000/t, touching lows of $11,600/t.
• Battery grade carbonate is currently trading at a premium to hydroxide, which sits at $13,800/t in China.
• Chinese lithium refiners are reportedly holding supply in expectation of higher prices, with upstream producers holding lower inventories.

Economics

Security officials are estimating NATO will need to expand its budget to 4% of respective GDP levels to counter rising risks with a war in Ukraine, a volatile Middle and potential threats from the Chinese military.

• Defence spending is estimated to have reached record $2.2tn last year.
• Increasing the share of defence spending from 2% to 4% means more than $10tn in additional commitments over the next decade, Bloomberg writes.
• That would further add to NATO members’ already high debt levels.

US – Following labour numbers beat the focus shifts to inflation numbers due tomorrow.

• Further evidence of slower than expected disinflation is likely to see investors pushing first rate cut timing further out.
• Estimates are for headline and core CPI measures to come in at 3.4% and 3.7%, respectively, compared to 3.2% and 3.8% in February.

China – Shimao Group bankruptcy petition in HK collapses shares

• China Construction Bank (Asia) has filed to liquidate Shimao Group, an indebted property developer in HK causing its shares to collapse.
• Shimao Group recently defaulted on HK1.58bn (US$202m of debt.
• The liquidation marks a new turn in the relationship between Chinese state and property developers with the state effectively telling companies to repay debts to state-owned lenders above all else.
• Evergrande Group .

UK must reassess nuclear technology to achieve net zero goals say top nuclear official

• All but one of Britain’s nuclear power plants are set to be decommissioned by the end of the decade.
• Current plans are for the UK to build a mix of large nuclear power plants and a fleet of new smaller reactors.
• EDF is currently building a new 3.2GW nuclear power plant at Hinkley Point C in Somerset using European Pressurised Reactor (EPR) Technology.
• The Frech utility is also jointly developing plans with the UK government to build a second 3.2GW power plant using EPR.
• The construction of these two power plants would still leave the UK short of the 24GW capacity target for 2050.
• Simon Bowen, chair of Great British Nuclear, has said that the UK should take ‘pause’ to make a decision on the reactor technology used going forward – whether that is to continue using EPR technology or AP1000 technology from the US that has already passed rigorous UK regulatory processes.
• There are also technologies from South Korea and Canada that he has urged the UK government to consider.

Currencies

US$1.0858/eur vs 1.0834/eur previous. Yen 151.89/$ vs 151.83/$. SAr 18.543/$ vs 18.649/$. $1.265/gbp vs $1.263/gbp. 0.660/aud vs 0.659/aud. CNY 7.234/$ vs 7.234/$.

Dollar Index 104.15 vs 104.33 previous.

Precious metals:

Gold US$2,352/oz vs US$2,337/oz previous

Gold ETFs 81.9moz vs 82.2moz previous

Platinum US$976/oz vs US$934/oz previous

Palladium US$1,058/oz vs US$1,011/oz previous

Silver US$27.94/oz vs US$28/oz previous

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

Base metals:   

Copper US$ 9,412/t vs US$9,329/t previous

Aluminium US$ 2,454/t vs US$2,461/t previous

Nickel US$ 17,880/t vs US$17,730/t previous

Zinc US$ 2,649/t vs US$2,627/t previous

Lead US$ 2,137/t vs US$2,130/t previous

Tin US$ 29,900/t vs US$29,050/t previous

Energy:           

Oil US$90.4/bbl vs US$89.8/bbl previous

• Shell’s CEO Wael Sawan has said that he is open to moving the Major’s primary stock listing from London to New York in an effort to close the valuation gap to US peers.
• THE EU has approved a €350m German scheme to construct of up to 90MW of electrolysis capacity, which is expected to be in the form of a direct grant per kilogram of renewable hydrogen produced.

Natural Gas €27.8/MWh vs €26.3/MWh previous

Uranium Futures $88.5/lb vs $88.9/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$104.4/t vs US$98.8/t

Chinese steel rebar 25mm US$515.3/t vs US$515.7/t

Thermal coal (1st year forward cif ARA) US$117.5/t vs US$116.5/t

Thermal coal swap Australia FOB US$128.9/t vs US$130.3/t

Other:  

Cobalt LME 3m US$28,550/t vs US$28,550/t

NdPr Rare Earth Oxide (China) US$53,500/t vs US$50,182/t

Lithium carbonate 99% (China) US$15,137/t vs US$15,137/t

China Spodumene Li2O 6%min CIF US$1,220/t vs US$1,220/t

Ferro-Manganese European Mn78% min US$972/t vs US$972/t

China Tungsten APT 88.5% FOB US$317/mtu vs US$315/mtu

China Graphite Flake -194 FOB US$490/t vs US$490/t

Europe Vanadium Pentoxide 98% 5.0/lb vs US$5.0/lb

Europe Ferro-Vanadium 80% 26.25/kg vs US$26.25/kg

China Ilmenite Concentrate TiO2 US$330/t vs US$330/t

China Rutile Concentrate 95% TiO2 US$1,431/t vs US$1,431/t

Spot CO2 Emissions EUA Price US$57.9/t vs US$57.9/t

Brazil Potash CFR Granular Spot US$305.0/t vs US$305.0/t

Battery News

Alliance of British Drivers call for removal of 2035 ban on sale of ICE vehicles

• The Alliance of British Drivers (ABD) is demanding that the 2035 deadline to ban the sale of internal combustion engine vehicles in the UK be scrapped.
• The ABD chairman stated that the public’s right to choose their vehicle type should not be removed, and public money should no longer subsidise new EV sales and usage.
• He argued that tax advantages given to persuade fleets and businesses to adopt EVs are paid for by “hard-working and struggling people” in the country.
• In September 2023, Prime Minister Rishi Sunak confirmed the easing of green policies under a new approach to protect families from the current economic
• Sunak called for politicians to be “honest” about the costs of green policies on families and allow the UK’s “destiny to be of our own choosing.”
• At the time this announcement was criticised by the Labour party for “trashing our economic future” and loading more costs onto the British people.
• The Liberal Democrats accused Sunak of not understanding the climate crisis, calling the policy reversal “unforgivable.”

Renault and Volvo form joint venture to create new electric vans

• Renault and Volvo Group have formed a joint venture called Flexis SAS to introduce a new generation of fully electric vans.
• Flexis will create electric vans based on a Software Defined Vehicle (SDV) platform and dedicated services.
• The new vans aim to address the growing demand for efficient urban logistics and decarbonisation in the industry.
• Both Renault and Volvo plan to invest around $500m each over the next three years into Flexis SAS.
• The company will be based in France, with production of the first electric van model expected to begin in 2026.
• French shipping firm CMA CGM Group has expressed interest in a strategic investment of up to $200m in Flexis through its investment fund.

Volvo sees record sales month thanks to surge in EV sales

• Volvo set its all-time sales record in March 2024, selling 78,970 vehicles globally, a 25% increase yoy.
• The sales surge was led by a 43% increase in sales of EVs, which accounted for 23% of Volvo’s total sales in March.
• In Europe, Volvo’s top market, sales rose 33% in March, with EV sales up 66% year-over-year.
• In the US, Volvo’s total sales increased 50%, boosted by plug-in hybrid models, while EV sales declined 66%.
• Volvo aims for at least 15% annual sales growth in 2024 and plans to ramp up sales of its new EX30 EV model.

EV firm Lotus Tech reports quarterly revenue jump on strong demand for luxury cars

• Lotus Technology reported a 67% jump in quarterly revenue driven by strong demand for its luxury EVs.
• Revenue for the first quarter of 2024 reached $1.69bn, up from $1.01bn a year earlier.
• Demand was particularly strong in China, Lotus’ largest market, where sales more than doubled.
• Lotus aims to launch a more affordable EV model by 2026 to tap into the mass-market segment.

US Army could look to hybrids over fully electric vehicles

• The US Army is exploring the potential of hybrid vehicles for military use, as they may be a more practical option than fully electric vehicles in certain scenarios.
• Hybrid vehicles offer benefits like silent operation when running on battery power, superior range compared to conventional and all-electric vehicles, and reduced heat signatures that make them harder to detect.
• The US Army’s Rapid Capabilities and Critical Technologies Office (RCCTO) showcased the Tactical Hybrid Electric Vehicle program, highlighting the potential of hybrid military vehicles.
• Hybrid tactical vehicles are still in the prototype phase, but the RCCTO believes the technology could be suitable for future battlefields.

Company News

Altona Mining – (REE LN) 1.13p, mkt cap £1m – Sesana copper exploration project, Botswana

• Altona Mining reports that it has secured a binding option agreement to acquire up to 85% of the 274km² Sesana copper exploration project from Ignate African Mining.
• The agreement covers a series of staged payments totaling US$110,000 over 4 years with an initial payment of US$10,000 in cash plus US$50,000in Altona shares with a further US$50,000 cash payment and US$100,000 in shares due 12 months later and a similar cash and shares payment 12 months after that.
• An additional “one-off payment of USD 250,000 in cash and USD 250,000 in Shares” in the event that a resource of over 20mt at a grade of over 1% on a copper equivalent basis is identified.
• The Sesana project is located on the eastern edge of the Kalahari Copper Belt approximately 25km from “the producing Khoemacau underground copper-silver mine” and “next to Galileo Resources licence PL039/2018 and near ARC Minerals licence PL135/2017 (Virgo Copper-Silver Project), where a 3km long soil anomaly associated to the D’Kar / Ngwako Pan formations contact has been recently identified”.
• Existing deposits in the Kalahari Copper Belt are usually found at the geological contact between the D’Kar Formation and the underlying Ngwako Pan Formation and today’s announcement describes a “regional airborne magnetic data … [which] … shows … a ca. 10km long stretch of the contact between the D’Kar and Ngwako Pan formations contact is passing through the northern part of the Tenement, along the eastern margin of a fold structure, which makes it a perfect setting for copper-silver mineralisation”.
• “Initial exploration work will include a combination of geochemical and geophysical exploration methods … [including] … Soil sampling associated to ionic leach assays is particularly suitable for the KCB context … [and a] … Detailed magnetometer survey will allow a detailed mapping of lithology and structures while induced polarization will allow the direct localisation of disseminated sulphides to allow accurate reconnaissance drilling planning”.
• CEO, Cedric Simonet, explained that the “acquisition of the Sesana Project is in line with the implementation of Altona’s portfolio diversification strategy”.

Conclusion: Altona Mining is joining the increasing exploration interest in Botswana’s Kalahari Copper Belt.  We await news as exploration of the Sesana project proceeds.

Beowulf Mining* (BEM LN) 0.66p, Mkt Cap £7m – Consolidation of Vardar interest enables acceleration of exploration

• Beowulf has completed the consolidation of its interest in Vardar to 100% through the issue of 52.3m shares.
• Beowulf had previously earnt a 61.1% interest in Vardar by investing £3.34m.
• This gives Beowulf full control of the assets under the subsidiary, providing increasing optionality for future exploration and discovery, alongside reducing costs by consolidating expenditure.
• The shares will be subject to a 12-month lock-in agreement.

Conclusion: Beowulf will now gain 100% ownership of Vardar through the issuance of 2.7% of its post equity raise share capital to Vardar minority holders. This will enable them to both reduce costs and accelerate exploration in the highly prospective Tethyan Belt. The Company is currently securing additional licences prospective for base metals, precious metals and battery metals including lithium. Vardar offers a third prong to Beowulf’s strategy, alongside its high-grade iron ore project in Sweden and the Grafintec anode project in Finland.

*SP Angel acts as Nomad and Broker to Beowulf Mining

Central Asian Metals (CAML LN) 201p, Mkt cap £365m – Q1 Operations as construction activities continue before paste backfill begins

• Central Asian Metals reports production for 1Q24.
• Mined ore for the quarter stood at 184kt vs 210kt in the previous quarter and 196.5kt yoy.
• Copper production fell 9% qoq to 3,120t, zinc production fell 13% to 4,741t, lead production fell 7% to 6,529t.
• The Company has reiterated FY24 guidance at 13-14kt Cu, 19-21kt Zn and 27-29kt Pb.
• Management notes continued construction activity at Sasa as it progresses towards paste fill mining, expected to be completed in 2H24.
• Dry Stack Tailings plant on track for dry commissioning second half of this year.
• Higher levels of production are planned for the second half of this year.

CleanTech Lithium (CTL LN) 10.94p, Mkt Cap £16m – CleanTech shares collapse 20% on CEO undeclared stock lending scandal

• CleanTech Lithium which is looking to develop lithium projects in Chile and Argentina has seen its shares collapse on the undeclared loan of all his stock to an unnamed financial group.
• Aldo Boitano, ceo, transferred his entire holding of 9.4m shares in CleanTech Lithium to a custodian account nominated by the lender in a series of transactions between 8 September 2023 and 6 February 2024
• Mr Boitano is unable to ascertain the extent to which these shares have been transferred to a further nominee account and is also unable to disclose his current beneficial holding in the Company.
• Eg, Mr Boitano is unable to say how many shares may have been sold by the unnamed lender to third parties.
• Mr Boitano has been suspended from his role as ceo pending further investigation.
• The Board of CTL would like to make it clear that Mr Boitano is cooperating with the investigation. In the interim period and to ensure there is no impact to the ongoing work programme at Laguna Verde, Steve Kesler,
• CleanTech Lithium raised £8m in equity at 22p in November last year enlarging the shares in issue by ~25% for infill drilling at Laguna Verde for the PFS which was due in Q1 but is now scheduled for release in Q3.
• The funds were also earmarked for the commissioning and running of the DLE ‘Direct Lithium Extraction’ pilot plant and production of battery grade lithium carbonate.
• The DLE pilot plant was commissioned in Copiapó, Chile with a capacity of 1t a month of lithium carbonate equivalent in March using Brine from the Laguna Verde project to create a purified lithium chloride eluate

• Management have previously targeted production from Laguna Verde in 2026.

Conclusion: Aldo Boitano started transferring his stock ahead of the fundraising on 21 November. He then continued to transfer his stock to a custodian account nominated by the unnamed lender till 6^th February and is reported to be unable to tell the market how many shares he now holds a beneficial interest in.

Some are speculating the lender may have sold a portion of this stock with others speculating the unnamed lender could also be involved in the short-selling of stock.

Given that other directors took part in the November placing they may rightfully feel aggrieved at these relevations.

Aldo Boitano may or may not be aware of the trading activities of certain lenders in the market and we would be interested to know how the introduction to the unnamed lender was made?

Given Aldo Boitano’s critical position as founder, ceo and Operational / ESG officer we suspect management are going to struggle to regain confidence and put the Governance back into their ESG initiatives.

Great Southern Copper (GSCU LN) 2.15p, Mkt Cap £7.4m – Drilling results from the Teresita and Abundante prospects, Chile

• Great Southern Copper has released results from 15 reverse-circulation (RC) scout drill holes at its Abundante and Teresita prospects in its Especularita project area in Chile.
• The company confirms that all of the holes “intersected anomalous gold and copper mineralisation” and highlights results including a:
  • 17m wide intersection at an average grade of 0.52% copper from a depth of 24m in hole ESP23RC-002, including a higher grade section of 4m at an average grade of 0.97% copper from 30m depth; and
  • A 21m wide intersection at an average grade of 0.31% copper from a depth of 19m in hole ESP23RC-004; and
  • A 20m wide intersection at an average grade of 0.57% copper from a depth of 35m in hole ESP23RC-010, including 3m averaging 0.79% copper, 1.1g/t gold and 8.71g/t silver from 39m depth as well as another 3m wide section averaging 0.69% copper, 1.65g/t gold and 9.03g/t silver from 48m; and
  • A 6m wide intersection at an average grade of 0.48% copper from a depth of 7m in hole ESP23RC-015.
• The company interprets the results as confirmation of the “IRGS model type for mineralisation at Teresita where high-grade gold and copper is hosted in quartz-sulphide veins that are over-printed near surface by late-stage carbonate veining … [and says that] … Follow-up exploration at Teresita will focus on delineating the vein targets in more detail for Phase 2 prospect-scale drilling programmes. This work may include detailed grid-based soil geochemistry across the whole system and geophysics (magnetics, IP, EM)”.
• CEO, Sam Garrett, said that the “mineralised vein system at Teresita is very large – comprising multiple veins over 5km in cumulative strike length – and these exciting early reconnaissance drill results give us strong impetus to aggressively advance our exploration of this system”.
• He also explained that “the potential to discover additional systems in the district is also significant as our regional exploration programmes continue”.

Conclusion: Scout drilling at Teresita encountered mineralisation in all of the 15 holes drilled and confirms the company’s exploration model and will be followed up with additional soil geochemical and geophysical exploration to help identify further targets.

Savannah Resources* (SAV LN) 3.3p, Mkt Cap £62m – Barroso development update

BUY – 21.1p

• The Company updates the market on key work streams at the flagship Barroso Lithium Project in Portugal.
• On land acquisition, the team has now secured 100 plots from local landowners.
• On DFS progress, the Company completed ~5,500m of RC and DD drilling across 60 holes in the first of two phases in the current programme.
• Drilling is used to update the geological model converting more tonnages into Measured and Indicated category and into Reserves.
• NOA deposit resource, the smallest of five deposits (0.7mt at 1.0% Li2O), will be updated later this month.
• On environmental licensing, the Company completed further baseline surveys required under the RECAPE phase of the licensing process.
• Annual monitoring report on the Iberian Wolf population confirming no wolf packs living on the Mining Lease area.
• On community engagement, the team is proactively engaging with all local stakeholders talking about the project with the municipal authority, local groups, residents and media outlets and collecting feedback.
• In February, the Company welcomed Antonio Neves Costa who is joining the team as Communication Manager bringing in over 15 years of experience in communications in Portugal and political strategy.
• The Company hosted a number of representatives of top tier global firms in the battery value chain at the site as the team is progressing with a search for potential strategic partner/offtaker/investor.
• FY23 results are expected to be released later this month with the Company also planning to host an online investor presentation.

Conclusion: The team reports good progress on DFS, environmental and social related workstreams at the Project with timeline remaining unchanged for the feasibility study and permitting targeted for completion in H2/24. Lithium space sentiment is also seems to be improving as prices for spodumene and lithium chemicals are bouncing off their February lows amid robust EV demand. Chinese, spodumene and carbonate prices trade around $1,200 and $14,000/t, respectively, after hitting a low of $1,000/t and ~$12,000/t earlier in the year.

*SP Angel acts as Nomad and Broker to Savannah Resources

Shanta Gold (SHG LN) 14p, Mkt Cap £152m – Regulatory approvals update and infill drilling results at NLGM and Singida

• The Company secured another regulatory approval regarding the Saturn Resources cash offer yesterday.
• The Tanzanian Fair Competition Commission issued its unconditional approval for the deal.
• That follows a similar approval by the Competition Authority of Kenya.
• The deal was also voted through by Company’s shareholders on 4 April.
• A series of other regulatory approvals remains outstanding including the receipt of regulatory approvals from the Tanzanian Mining Commission and the Cabinet Secretary for Mining, Blue Economy and Maritime Affairs in Kenya and the Court sanctioning the Scheme at the Court Hearing.
• Infill drilling at NLGM and Singida returned a series of good intersections as the team is aiming to convert more ounces from Inferred resource into Measured and Indicated category and ultimately into the mine plane.
• Mineralisation at Elizabeth Hill, Black Tree Hill, BCN, Jamhuri West and Jamhuri Main at NLGM remains open at depth.
• Mineralisation at Jem, Gold Tree and Vivian at Singida remains open at depth while mineralisation at Gold Tree and Vivian remains open to the west and east respectively.

Taseko (TKO LN) 185p, Mkt cap £561m – $500m senior secured notes offering to redeem bonds and develop Florence copper project

• Taseko has begun offering $500m of senior secured notes due in 2030.
• The bonds were last priced at 8.25-8.5%.
• Funds will be used to redeem its outstanding 7% Senior Secured Notes due 2026.
• Additionally, $86m will be used to finance various CAPEX requirements at the Company’s Gibraltar and Florence mines.
• The Company’s Florence project was permitted in 4Q24 and is undergoing construction.
• The Florence Project in Arizona uses in-situ leaching and is expected to produce 40ktpa Cu at a $1.11/lb cash cost over 22 years.
• Mitsui invested $50m in the project for a 2.67% copper stream.
• The Project requires a remaining $232m CAPEX.

Tertiary Minerals* (TYM LN) 0.08p, Mkt Cap £2m – Drilling to begin at Konkola West this month

• Tertiary announces today that it has received the EIA enabling KoBold to earn into its Konkola West Copper Project in Zambia.
• The Group are targeting deep down dipping extensions of the Kusoshi-Konkola copper project that lie to the north east of the package.
• Following the receipt of these approvals, conditions have now been met to begin drilling.
• KoBold has advised Tertiary it now expects to begin drilling this month.

*SP Angel acts as Nomad and Broker to Tertiary Minerals

UMMC (Private) – UMMC ends rescue efforts to free trapped miners at Pioneer gold mine in Russia amid unconfirmed report of further fatalities

• The Russian authorities reported and end to rescue efforts last week to rescue 13 miners trapped underground at the Pioneer gold mine.
• As yet, unconfirmed an report suggest further fatalities at a UMMC mine on 1^st April.
• Two employees of Rostekhnadzor, the managing director, and the chief engineer have been charged and detained.

No.1 in Copper:  “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”

No1. In Gold:  “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”

The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020

Analysts

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

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

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

Sales

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

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

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

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

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)

+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

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Where the investment is traded on AIM it should be noted that liquidity may be lower and price movements more volatile.

SPA, its partners, officers and/or employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s).

SPA is registered in England and Wales with company number OC317049.  The registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP.  SPA is authorised and regulated by the UK Financial Conduct Authority and is a Member of the London Stock Exchange plc.

MiFID II – Based on our analysis we have concluded that this note may be received free of charge by any person subject to the new MiFID II rules on research unbundling pursuant to the exemptions within Article 12(3) of the MiFID II Delegated Directive and FCA COBS Rule 2.3A.19.

A full analysis is available on our website here http://www.spangel.co.uk/legal-and-regulatory-notices.html. If you have any queries, feel free to contact our Compliance Officer, Tim Jenkins (tim.jenkins@spangel.co.uk).

SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return of less than 15%