SP Angel Morning View -Today’s Market View, Wednesday 16th April 2025

Gold jumps overnight as US looks to isolate China from global trade

MiFID II exempt information – see disclaimer below

Antofagasta (ANTO LN) – Q1 performance benefits from improved throughput and higher by-product credits

Barrick Gold (GOLD US) – Escalating tensions with the Malian government

Beowulf Mining* (BEM LN) – Update on capital raising

Collective Mining (CNL CN) – Sub-zone intersected at Apollo

Galan Lithium (GLN AU) – Binding offtake with lithium processing specialist and an equity raise

Great Southern Copper (GSCU LN) – Results from ‘scout’ drilling at Viuda, Chile

Ivanhoe Electric (IE US) – Indicative Financing from US Export-Impact Bank

Rio Tinto (RIO LN) – Q1 delivers record copper production at Oyu Tolgoi and record bauxite output

Sovereign Metals* (SVML LN) – Geotechnical studies to be completed in the coming weeks with DFS on course for 4Q25 release

Strategic Minerals* (SML LN) – £1m fundraising

Gold (3,307/oz) jumps overnight as US looks to isolate China from global trade

• Spot gold prices are up 2.5% this morning, as geopolitical tensions between China and the US continue to mount.
• Treasury Secretary Bessent has reportedly pitched the idea to Trump of extracting concessions from US trading partners to isolate the Chnese economy. (WSJ)
• Additionally, there are reports of removing Chinese stocks from US exchanges, not yet ruled out by Bessent.
• China is holding off negotiations with the US, despite Trump suggesting a deal is possible.
• The US is also clamping down on sending chips to China, another step in Trump’s escalation of the ongoing trade war.
• US Treasuries have strengthened somewhat following the recent sell off, with the 10-year yield sliding from 4.5% to 4.3%.
• Gold also shrugged off a stronger dollar, although the greenback has subsequently resumed its downtrend.
• ETF demand is picking up but still remains well below 2020 and 2022 levels.
• The last two decades have seen four gold bull runs, 2000-2007, 2008-2011, 2015-2020, 2022-?
• The first returned 292% over 452 weeks, the second returned 161% over 147 weeks, the third returned 92% over 245 weeks and the current rally has lasted 131 weeks and returned 96%. (WGC)
• This gold bull run has been marked by a ramp up in Chinese buying, be it from central banks, insurance companies, retail investors etc.
• We suspect focus will soon shift to the 2025 BRICs summit, held in Rio de Janeiro in July.
• The current BRICs thematic is focused on shifting the global balance of power away from the US, and this is likely to be accelerated by the hostile nature of the Trump administration.
• China has led BRICs countries in diversifying their foreign reserves away from the dollar, with gold being a primary beneficiary.
• If this continues, additional central banks may look to gold as a tool for diversification.
• For example, the BRICs Summit 2025 host, Brazil, has seen their gold holdings unchanged since 2021.
• China currently holds 5.5% of their foreign reserves in gold, Brazil holds 3.3%, India holds 11.4%, Mexico 4.4%.

Economics

US – Equity futures are down this morning on the news that Trump administration barred Nvidia from selling its H20 chips in China. (Bloomberg)

• The product is reported to have been designed specifically to comply with previous US restrictions.

China – Better than expected GDP numbers released this morning with economic outlook set to weaken considerably as new US tariffs came into effect post 1Q25.

• Upbeat numbers were driven by consumer subsidies and front loading of export shipments to beat tariffs. (Bloomberg)
• The government is considering different stimulus options to soften the effect of trade barriers including interest rate cuts, fiscal borrowing and targeted support for exporters.
• China is expecting a number of steps from Trump administration before agreeing to talks including more restraint in disparaging remarks by member of the cabinet. (Bloomberg)
• GDP (%yoy, 1Q/4Q/Est):
• Retail Sales (%YTD, Mar/Feb/Est): 4.6/4.0/4.3
• Industrial Production (%YTD, Mar/Feb/Est): 6.5/5.9/5.9
• FAI (%YTD, Mar/Feb/Est): 4.2/4.1/4.1
• Property Investments (%YTD, Mar/Feb/Est): -9.9/-9.8/-9.9
• Residential Property Sales (%YTD, Mar/Feb/Est): -0.4/-0.4/NA

UK – The pound is trading lower with bonds rallying as inflation numbers came in lower than expected in March.

• CPI (%mom, Mar/Feb/Est): 0.3/0.4/0.4
• CPI (%yoy, Mar/Feb/Est): 2.6/2.8/2.7
• Core CPI (%yoy, Mar/Feb/Est): 3.4/3.5/3.4
• Services CPI (%yoy, Mar/Feb/Est): 4.7/5.0/4.8

Currencies

US$1.1380/eur vs 1.1333/eur previous. Yen 142.18/$ vs 143.44/$. SAr 18.937/$ vs 18.806/$. $1.328/gbp vs $1.321/gbp. 0.636/aud vs         0.637/aud. CNY 7.323/$ vs 7.313/$.

Dollar Index 99.433 vs 99.786 previous.

Precious metals:

Gold US$3,296/oz vs US$3,219/oz previous

Gold ETFs 89.2moz vs 89.1moz previous

Platinum US$960/oz vs US$959/oz previous

Palladium US$973/oz vs US$956/oz previous

Silver US$32.9/oz vs US$32.4/oz previous

Rhodium US$5,425/oz vs US$5,450/oz previous

Base metals:   

Copper US$9,061/t vs US$9,234/t previous

Aluminium US$2,357/t vs US$2,390/t previous

Nickel US$15,410/t vs US$15,635/t previous

Zinc US$2,577/t vs US$2,646/t previous

Lead US$1,897/t vs US$1,929/t previous

Tin US$30,520/t vs US$31,410/t previous

Energy:

Oil US$64.2/bbl vs US$65.3/bbl previous

Natural Gas €34.3/MWh vs €34.3/MWh previous

Uranium Futures $64.7/lb vs $64.4/lb previous

Bulk:   

Iron Ore 62% Fe Spot (China CFR) US$99.4/t vs US$99.8/t

Chinese steel rebar 25mm US$465.0/t vs US$444.0/t

HCC FOB Australia US$181.3/t vs US$184.0/t

Thermal coal swap Australia FOB US$101.0/t vs US$99.0/t

Other:  

Cobalt LME 3m US$33,700/t vs US$33,700/t

NdPr Rare Earth Oxide (China) US$58,718/t vs US$58,666/t

Lithium carbonate 99% (China) US$9,518/t vs US$9,531/t

China Spodumene Li2O 6%min CIF US$805/t vs US$805/t

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

China Tungsten APT 88.5% FOB US$358/mtu vs US$358/mtu

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

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

Europe Ferro-Vanadium 80% US$24.1/kg vs US$24.1/kg

China Ilmenite Concentrate TiO2 US$283/t vs US$284/t

Global Rutile Spot Concentrate 95% TiO2 US$1,506/t vs US$1,506/t

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

Brazil Potash CFR Granular Spot US$350.0/t vs US$350.0/t

Germanium China 99.99% US$2,825.0/kg vs US$2,825.0/kg

China Gallium 99.99% US$390.0/kg vs US$390.0/kg

Battery News

New report claims that Trump tariffs have disrupted Tesla’s US production plans for Cybercab and Semi

• Tesla aims to start production of Cybercab and Semi at Gigafactory Texas and a new factory in Nevada later this year and ramp up to volume production in 2026.
• Tesla has suspended plans to source certain parts for the upcoming Cybercab and Tesla Semi from China due to the tariffs imposed on China by the Trump administration, according to a person familiar with the matter. (Reuters)
• According to the report, Tesla was ready to continue with the plan when Trump first increased the tariffs on China to 34%, but the automaker is suspending the specific sourcing plans after the most recent increases.

Honda to move production of Civic to Indiana from Japan

• The Japanese automaker will move production of its US-bound Civic hybrid to Indiana from Japan.
• Production in the Japanese plant is expected to end in June or July this year

Company News

Antofagasta (ANTO LN) 1,507p, Mkt Cap £15bn – Q1 performance benefits from improved throughput and higher by-product credits

• Antofagasta reports a 20% rise in copper production in Q1 2025 to 154,700t (Q1 2024 – 129,400t).
• Gold production increased by ~29%% to 42,900oz (Q1 2024 – 33,300oz) while molybdenum output rose ~15% to 3,100t (Q1 2024 – 2,700t).
• Cash costs, prior to credits were US$2.37/lb (Q1 2024 – US$2.67/lb) with credits equivalent to US$0.83/lb “representing a 12% increase year-on-year, with higher production of by-products and gold prices” reducing net cash costs to US$1.54/lb (Q1 2024 – US$1.93/lb).
• The company is maintaining its full year production and cost guidance at 660-700,000t of copper with cash cost guidance intact in the range US$2.25-2.45/lb before by-product credits and net costs of US$1.45-1.65/lb.
• Los Pelambres contributed 69,900t of copper production (Q1 2024 – 55,300t) at a net cost of US$1.36/lb from the processing of 173,500tpd of ore at an average grade of 0.53% copper (Q1 2024 – 177100tpd at 0.56%) and also produced 11,600oz of gold and 2,300t of molybdenum (Q! 2024 – 8,400oz and 2,200t of molybdenum).

1. Antofagasta says that Los Pelambres’ increased YoY output reflects “the pipeline maintenance undertaken in the prior year period, partially offset by lower grades in line with the mine plan … [and also says that] … Ore processing rates were partially impacted by a national power outage experienced in February 2025”.

• The Centinela mine delivered a total of 55,600t of copper, including 19,800t of cathodes at a net cost of US$1.18/lb (Q1 2024 – 45,000t of copper, including 22,000t of cathodes at an average net cash cost of US$2.39/lb).
• Centinela’s improved output results from “higher production at Centinela Concentrates, offset by lower output at Centinela Cathodes” with concentrate output benefitting from “higher copper grades and ore processing rates” and cathode output restrained by “lower copper grades in line with the mine plan, offset by higher ore processing rates”.
• Antucoya delivered 20,200t of copper during the quarter at a cash cost of US$2.47/lb (Q1 2024 -19,600t at US$2.61/lb) with the improvement attributed to “improved recoveries and ore processing rates, offset by lower copper grade”.
• The balance of output came from Zaldivar which achieved 9,000t of copper output (Q1 2024 – 9,500t) at a cash cost of US$3.09/lb (Q1 2024 – US$2.97/lb). Zaldivar’s performance reflected “a combination of lower grades and recoveries, partially offset by a higher ore processing rate”.
• Commenting on the results, CEO, Ivan Arriagada, said that they were “solid … [and reflected] … operating performance and cash cost discipline, with copper production up 20% compared with the same period of last year, explained by consistent or higher throughput across our sites and improved copper grades at Centinela, and with the production of gold and molybdenum by-products also up by 29% and 15% respectively”.
• He said that Antofagasta’s “growth programme continues to make material progress, with the Centinela Second Concentrator Project and the Los Pelambres’ Growth Enabling Projects advancing well”.

Conclusion: Antofagasta is maintaining its 2025 production and cost guidance after a robust Q1 performance.

Barrick Gold (GOLD US) $20.3, Mkt cap $36bn – Escalating tensions with the Malian government

• Barrick reported yesterday that the Mali situation had escalated.
• The Company reported that the agreement presented by the Government in February has failed to execute, ‘obstructed by a small group of individuals placing personal or political interests above the long-term interests of Mali and its people.’
• Officials have closed Barrick’s Bamako office this week and threatened to place the Loulo-Gounkoto mine under provisional administration.
• Gold exports remain blocked and four Barrick employees and Malian citizens are still being detained.
• Barrick warns it ‘remains prepared to pursue international arbitration and legal remedies against the Government.’
• Loulo Gounkoto accounted for 12% of Barrick’s $5.2bn in EBITDA in 2024. 

Beowulf Mining* (BEM LN) 12.3p, Mkt cap £4.8m– Update on capital raising

• Swedish high-grade iron ore developer Beowulf has launched the subscription period for its preferential rights issue of Swedish DRs.
• The Rights Issue aims to raise up to SEK38.2m, or £3m gross at a subscription price of SEK1.4.
• SDR holders will receive one subscription right per SDR, with seven new SDRs available for every eight subscription rights held.
• Underwriting commitments of SEK15m (c.40% of the raise) have been received.
• The rights issue is part of a wider capital raise of a maximum c.£4.6m.
• Yesterday’s February accounts show net cash of $260k.
• The UK placing has conditionally raised gross proceeds of £1m, SDR rights issue, if fully subscribed, will raise £3m before fees at 11p and SEK1.4 respectively.
• The retail offer is targeting £0.74m raised before costs.
• Beowulf is also entering into a bridging loan with their Underwriters for £760k.

Conclusion: Beowulf is in the process of derisking and progressing their high-grade Fe concentrate mine, Kallak, alongside the outlined roadmap for the GAMP project in Sweden. Funds raised from the ongoing capital raise will be used to deliver the PFS for Kallak. Additionally, escalating tensions between the US and China is putting a spotlight on critical minerals, with graphite vulnerable to export controls as witnessed on Friday with rare earths from China. This is set to further reinforce the need for downstream processing operations in Europe, as offered by Beowulf’s GAMP plant. The GAMP PFS currently shows a Phase 1 post-tax NPV8 of €1.2bn and IRR of 42% over 25 years.

*SP Angel acts as Nomad and Broker to Beowulf Mining

Collective Mining (CNL CN) C$15, Mkt cap C$1.3bn – Sub-zone intersected at Apollo

• Collective Mining, who hold the Guayabales project in Colombia, report drilling from the Apollo system.
• The company has eight rigs active within a 70,000-metre 2025 drill program, including five at Apollo, and aims to expand both the high-grade Ramp Zone and the overall Apollo system dimensions
• Hole PC104-D6 extended the high-grade sub-zone at Apollo by c.70m vertically with an intersection of:
  • 115m at 5g/t AuEq within 264m at 3.1g/t AuEq.
• Hole APC104-D7A intersected the eastern edge of the same sub-zone, recording 30.25 metres at 5.10 g/t AuEq within 137.70 metres at 2.94 g/t AuEq.
• Hole APC-106D was drilled outside the Apollo system to the north, intersecting shallow gold-silver veins including 1.65m at 21g/t AuEq and 1.9m at 16g/t AuEq from 353m and 388m respectively.
• Collective has modelled eleven ‘high-grade’ sub zones target areas over the first 1,000 vertical metres of Apollo and plans to test them all over 2025.
• The Company recently saw Agnico Eagle subscribe for C£52m in a private placement.

Galan Litthium (GLN AU) A$0.11, Mkt Cap A$88m – Binding offtake with lithium processing specialist and an equity raise

• The Company signs an offtake and a binding funding package with Authium Limited for initial production at HMW Lithium Project in Argentina.
• Under the agreement Authium will:
  • Purchase a total of 45kt LCE (in the form of lithium chloride) over 6-12y;
  • Provide US$6m in offtake prepayments for lithium chloride to be supplied to an Authium lithium carbonate production facility in the US (US$1m per month that lithium brine is processed through Authium’s nano filtration plant)
  • Fund, supply and operate Authium nano filtration processing technology at HMW.
• Authium technology will enable Galan to significantly reduce its Phase 1 capex by removing A$41.5m relating to the liming plant and expected to cut opex by 18% compared to DFS on cost savings from reagents and filtering plant (2023 DFS guided for US$118m and US$3,963/t Phase 1 capex and opex, rerspectively).
• The technology is reported to have been successfully deployed at multiple lithium projects including Rio Tinto Rincon Project and has been successfully tested on the brine at HMW.
• Authium team led the engineering design and construction of the Commercial DLE Demonstration Plant and was responsible for operations at Rincon that was sold for US$825m to Rio Tinto in 2022.
• Authium is owner of the Clayton Ridge Lithium Project hosting ~2.5mt LCE in resource in Nevada, US.
• The Company is working with Authium on additional working capital facility, should it be required.
• Additionally, the Company raised A$13m at A$0.11 issuing ~120m new shares.
• Cameron Stanton, Authium founder and Technical Director, is raising his investment in Galan to 2% post raise.
• The placing price represents a 8% discount to the last closing price.
• On top of the placing, the Company is launching an up to A$4m rights issue at the same issue price.
• Funding will see the Company completing construction in 2H25 through to first production in 1H26.
• The project is reported 50% construction complete with ~9kt LCE held in ponds at the moment.

Great Southern Copper (GSCU LN) 3.95p, Mkt Cap £21m – Results from ‘scout’ drilling at Viuda, Chile

• Great Southern Copper reports that a ‘scout’ drilling campaign of seven reverse-circulation (RC) drillholes, totaling 1,020m, at its Viuda prospect in Chile has confirmed the presence of wide-scale alteration and trace-element geochemistry consistent with porphyry type mineralisation.
• The wholly-owned Viuda prospect is located within the company’s larger 18km² Especularita project area around 20km SW of the company’s Cerro Negro prospect and the drilling results show “increasing widths and grades of metal Au-Cu-Ag and trace-element Mo-Bi-Sb-Se geochemistry to the south coincident with quartz-pyrite (±chalcopyrite) veining and breccia hosted in pervasive alteration characteristic of porphyry Au (±Cu) deposits”.
• Among the results highlighted in today’s announcement is a 12m wide intersection averaging 1.5g/t gold and 0.47% copper from a depth of 132m in hole RC-005 located south of the Chingay Hill “where north-south trending corridors of mineralisation were previously mapped”, including a 2m wide section at an average grade of 4.4g/t gold and 0.94% copper from 136m depth.
• The company also reports that “soil geochemistry results from a project-wide survey has discovered outcropping sheeted and stockworked banded-quartz veins at Viuda Negra, located 1km to the northeast of Changay Hill, that are typical of Au-rich porphyry systems”.
• Great Southern Copper is mobilising a drilling rig to start diamond-drilling at Viuda Negra “targeting porphyry Au style sheeted quartz veins discovered at … Viuda Negra … with grades up to 4.2 g/t Au, 145 g/t Ag and 0.56 % Cu in outcrop”.
• Confirming that the scout drilling at Viuda had successfully confirmed the type of alteration and associated zonation patterns of metals and trace elements that is characteristic of porphyry type deposits …  [CEO, Sam Garrett, said that the] … widths and grades of mineralisation is potentially increasing toward the south”.
• Mr. Garrett also confirmed that the “Phase II drilling programme at Mostaza … [in the Cerro Negro prospect] … is now complete … [and that Viuda] … 20 kilometres to the southwest of … Mostaza …represents a different style of target, namely large-scale, porphyry type gold, silver and copper mineralisation”.

Conclusion: Scout drilling at Viuda has identified signs of porphyry style mineralisation and encouragement that a large-scale target may be present.  A rig is mobilising to start diamond drilling and we await further news with interest.

Ivanhoe Electric (IE US) $6.5, Mkt cap $860m – Indicative Financing from US Export-Impact Bank

1. Friedland-backed Ivanhoe Electric, who hold the Santa Cruz project in Arizona, report a Letter of Intent for financing.
2. The financing package from the US Export-Import Bank would provide up to $825m in debt financing with a 15 year repayment tenor.
3. The bank is designed to ‘boost United States’ competitiveness, strengthen supply chains, and reduce strategic vulnerabilities.’
4. Ivanhoe Electric is aiming to deliver the Santa Cruz PFS in June 2025, with engineering work ongoing.
5. Construction is aimed for 1H26 and first production targeted for 2029.
6. Santa Cruz holds 4.7mt of contained copper at 1.24% Cu.
7. The Initial Assessment saw a post-tax NPV8 of $1.3bn and IRR of 23% using $8400/t/ Cu.
8. Initial Assessment CAPEX estimated at $1.15bn, sustaining CAPEX of $0.98bn.
9. It suggested average copper production of 85ktpa over the first 10 years, split between 57kt cathode, 29kt concentrate.
10. LOM operating costs of $43.5/t, C1 cash costs of $1.36/lb.

Rio Tinto (RIO LN) – 4,315p, Mkt cap £55bn – Q1 delivers record copper production at Oyu Tolgoi and record bauxite output

1. Rio Tinto reports first quarter 2025 production records for copper at its Oyu Tolgoi mine as the underground mine ramps up and record quarterly bauxite output with March delivering a monthly record.
2. Annual production guidance remains intact across all commodity groups.
3. CEO, Jakob Stausholm, explained that the Pilbara iron-ore operations were affected by “extreme weather events” but that Rio Tinto “achieved first iron ore at Western Range in the Pilbara and the Simandou high-grade iron ore project in Guinea remains on track”.
4. Commenting on the global economic backdrop Rio Tinto reports a positive start to the year “with continued commodity demand growth and inflation seen to be easing or stabilising across major economies”.
5. In China, there “was growth in most other sectors, including infrastructure, consumer durables and manufacturing” compared to Q1 2024 while the “US economy performed solidly in Q1 led by consumer spending and the housing market showing signs of recovery … [although the company cautions that future] … economic activity may be affected by tariffs”.
6. At 60.1mt for the quarter, the Pilbara iron-ore operations delivered 9% less output than Q1 2024 “with the total losses from the four cyclones estimated to be around 13 million tonnes … [and the company says that] … ”Mitigation plans are in place to offset around half of this and will require an additional investment of around A$150 million for rectification works and contracting mining activities”.
7. Bauxite production of ~15mt increased by 12% compared to Q1 2024 with alumina up 3% to 1.9mt and aluminium output steady at 829kt with the company describing its aluminium operations as “stable and performing well with continuous improvements offsetting external challenges that impacted production at our New Zealand Aluminium Smelter (NZAS) and Kitimat” where “energy supply and production continues to be impacted by lower reservoir levels”.
8. The US$1.3bn Western Range iron-ore project in WA “achieved first ore through the new crushing and conveying circuit, on plan” in March with “production ramp-up … [to a planned 25mtpa rate] … over the remainder of 2025”.
9. Rio Tinto also confirms that it has all the required State and Federal approvals for its US$1.8bn, 34mtpa Brockman syncline iron-ore project in the Pilbara where initial production is expected in 2027.
10. Copper output rose by 16% vs Q1 2024 to 210kt with the ramp-up of the underground mine at Oyu Togoi delivering a 42% improvement to 65kt and reaching a record monthly performance in March .
11. Rio Tinto confirms that the ramp-up at Oyu Tolgoi, targeted to become the world’s 4^th largest copper mine by 2030, “remains on track to reach an average of 500 thousand tonnes of copper per year (100% basis and stated as recoverable metal) for the underground and open pit mines for the years 2028 to 2036”.
12. At Escondida, “seasonal tidal swells impacted shipments which had a knock-on effect through the value chain given stockpile capacity at the port. This resulted in lower throughput and lower concentrate production, alongside a nationwide blackout in February … [although the mine delivered] … higher concentrate production mainly due to higher ore grade feed, driven by a change in mine sequence”.
13. Among the longer-term projects, Rio Tinto confirms that Mitsui has “agreed to acquire 40% interest in the … [40mtpa] … Rhodes Ridge … [iron-ore] … Joint Venture (RRJV)” from Rio Tinto’s partners and confirms that the “pre-feasibility study remains on track to be completed in 2025”.
14. Development of the 55% owned Resolution copper project in Arizona remains subject to “a decision from the U.S. Supreme Court on the petition filed by the Apache Stronghold requesting to hear its case to stop the land exchange between Resolution Copper and the federal government”.
15. At the 70% owned Winu copper project in WA, Rio Tinto is working with 30% owner, Sumitomo, to “finalise definitive joint venture agreements … [and is progressing] … the pre-feasibility study”.
16. Rio Tinto’s exploration efforts cover “17 countries across eight commodities in early exploration and studies stages with … [exploration expenditure] … focused on copper in Angola, Chile, Colombia, Peru and the US, lithium in Canada, Rwanda, Chile and Australia and diamonds in Angola”.

Conclusion: Q1 operational results confirm 2025 production guidance across all commodity groups as Oyu Tolgoi and the bauxite operations deliver record quarterly output.

Sovereign Metals* (SVML LN) 35p, Mkt Cap £202m – Geotechnical studies to be completed in the coming weeks with DFS on course for 4Q25 release

(Sovereign currently holds 100% of the Kasiya project. Malawi has 10% free carry right. Rio Tinto holds 18.5% of Sovereign Metals)

• The Company is progressing with geotechnical studies for key project infrastructure sites for the Kasiya Rutile Graphite Project in Malawi.
• Studies are expected to be completed in the coming weeks.
• Planned infrastructure items include mining, plants, TSF, water storage dam as well as power and logistics routes.
• Works are conducted under oversight of the Sovereign-Rio Tinto Technical Committee.
• Results to be used for layout and engineering design for the Kasiya DFS due 4Q25.
• Infill drilling programme and updated MRE is expected to be released later this quarter (2Q25).

Conclusion: Kasiya DFS related works continue at pace with completion target reiterated for 4Q25.

*SP Angel act as Nomad and broker to Sovereign Metals. An SP Angel analyst has visited the Kasiya mine site. We highly recommend the Malawi coffee beans sold in Lilongwe airport

Strategic Minerals* (SML LN) 0.33p, Mkt Cap £8.1m – £1m fundraising

• Strategic Minerals has raised £1m via the placing of 333,333,333 shares at 0.3p/share, marking a discount of 25%.
• The additional funds will be used “to progress activities at the Company’s Redmoor Tungsten-Tin-Copper project in Cornwall and for working capital purposes”.
• Strategic Minerals explains that the “Placing is conditional, amongst other things, upon the passing of the Resolutions at the General Meeting.”
• Earlier this month, Strategic Minerals reported that it had secured UK Government grant funding for ~£764,000 in support of its continuing exploration of the Redmoor tungsten/tin/copper project in Cornwall where it is working to firm up and expand the existing ‘Inferred’ mineral resource of 11.7mt at an average grade of 0.56% tungsten trioxide, 0.16% tin and 0.50% copper”.
• Planned work at Redmoor includes a continuing re-evaluation of the drill core recovered during the 2017/2018 drilling (12 holes totalling 7,370m) campaign and an additional 5,000m of new drilling “with the aim to produce a new, upgraded and enlarged mineral resource estimate (“MRE”) for Redmoor from the 2019 MRE”.
• In 2019, the company released a Scoping Study for the Redmoor project, based on a tin price projection of US$22,000/t, a tungsten price of US$330/mtu and a copper price of US$3.18/lb which at an indicative 600ktpa production rate produced a total of 7.1mt grading 1.09% tin eq. over ten years.
• The 2019 study showed that a pre-production capital investment of US$89m with a further US$23m of sustaining capital through the project’s life and operating costs of US$75/tonne mined was expected to generate an after-tax NPV8% of US$94m and IRR of 19.4%.

Conclusion: Strategic Minerals is raising an additional £1m as it accelerates the exploration of its Redmoor project in Cornwall and works to expand and upgrade its’ existing ‘Inferred’ mineral resource.

*SP Angel acts as Nomad and broker to Strategic Minerals

LSE Group Starmine awards for 2024 commodity forecasting:

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

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

Analysts

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

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

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

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

Sales

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

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

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

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

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

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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.

DISCLAIMER

This note is a marketing communication and comprises non-independent research. This means it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.

This note is intended only for distribution to Professional Clients and Eligible Counterparties as defined under the rules of the Financial Conduct Authority and is not directed at Retail Clients.

This note is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose.

This note has been issued by SP Angel Corporate Finance LLP (‘SPA’) to promote its investment services. Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. The information contained herein is based on sources which we believe to be reliable, but we do not represent that it is wholly accurate or complete. All opinions and estimates included in this report are subject to change without notice. It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. SPA is not responsible for any errors or omissions or for the results obtained from the use of such information. Where the subject of the research is a client company of SPA we may have shown a draft of the research (or parts of it) to the company prior to publication to check factual accuracy, soundness of assumptions etc.

Distribution of this note does not imply distribution of future notes covering the same issuers, companies or subject matter.

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

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

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

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