SP Angel Morning View -Today’s Market View, Wednesday 16th October 2024

Gold nears record high as US Treasuries rally

MiFID II exempt information – see disclaimer below

Antofagasta (ANTO LN) – Production results

Cornish Metals* (CUSN LN) – £7m credit facility with Vision Blue to support continued development of the South Crofty tin mine in Cornwall, UK

Eramet () – Sell off on a downgrade in Mn and Ni guidance

Galan Lithium (GLN AU) – Entitlement offer closes fully subscribed for ~A$13m

Mayur Resources (MRL AU) – Financing of lime mining project in PNG

Metals Exploration (MTL LN) – Record quarterly gold revenues and FCF

Premier African Minerals (PREM LN) – Updated Zulu MRE

Rio Tinto (RIO LN) – Q3 results as pivot to higher quality iron ore looms

SolGold* (SOLG LN) – Optimisation of ground geophysics to cut drilling required for foundation conditions

Tertiary Minerals* (TYM LN) – Mushima North drilling programme completed

Thor Explorations* (THX LN) – Production downgraded following heavy rains

Versarien* (VRS LN) – Placing raises further £450,000

Gold ($2,680/oz) nears record highs again as US Treasuries rally as focus shifts to retail sales

• Gold prices have rallied this week, climbing back to $2,681/oz.
• Global government bonds sold off following the US Fed rate cut decision, with the 10 year sliding to 4.12% before rallying again yesterday back to c.4.01%.
• The dollar has been strengthening amid global geopolitical tensions and slowing growth from other global economies.
• The Yuan has also been weakening as China looks to support its economy with large fiscal stimulus.
• The BRIC countries are due to meet next week, with de-dollarisation top of the agenda following the US’ freezing of Russia’s foreign reserves.
• China has eased off purchases via its Central Bank, however retail buyers have continued to add amid volatile equity markets and downtrodden property prices.
• Oil prices have eased as Israel held off striking Iranian oil facilities, likely supporting the US Treasury rally.
• ETF investors rotate into gold as US Treasury yields slide.
• Retail sales due tomorrow will be of primary focus to the US Treasury market, with a miss potentially providing the next leg higher for gold.

Iron ore prices weaken as majors ramp up output

• Iron ore prices have weakened around the $105/t mark in Singapore.
• Vale announced last night it has beat market expectations at 91mt, whilst Rio’s pilbara operations produced 84.1mt.
• Rio reiterated expectations to bring Simandou online next year, with a 30 month ramp up period.

This is Why Gold is Rising and It Will Probably Continue:

• Podcast: https://audioboom.com/posts/8547593-john-meyer-this-has-one-of-the-lowest-risk-profiles-i-ve-seen-for-a-long-time

Economics

UK – The pound dips on weaker than expected inflation data released this morning.

• Markets revised chances for two rate cuts before year end higher.
• November move remains fully priced in while chances are >70% that the BOE will cut again in December.
• CPI (%mom, Sep/Aug/Est): 0.0/0.3/0.1
• CPI (%yoy, Sep/Aug/Est): 1.7/2.2/1.9
• Core CPI (%yoy, Sep/Aug/Est): 3.2/3.6/3.4

South Africa – Eskom is proposing a 36% increase in power tariffs for 12m through to March 2026.

• This would be followed by increases of 11.8% and 9.1% over the following two years.
• State owned utility is battling with growing debt load with power tariffs increases aimed at avoiding government bailout.
• The increase would add to a 600% jump in power costs since 2006.

Currencies

US$1.0883/eur vs 1.0892/eur previous. Yen 149.19/$ vs 149.23/$. SAr 17.587/$ vs 17.651/$. $1.300/gbp vs $1.306/gbp. 0.669/aud vs 0.671/aud. CNY 7.118/$ vs 7.119/$.

Dollar Index 103.34 vs 103.28 previous

Precious metals:         

Gold US$2,676/oz vs US$2,653/oz previous

Gold ETFs 83.5moz vs 83.5moz previous

Platinum US$1,002/oz vs US$985/oz previous

Palladium US$1,021/oz vs US$1,021/oz previous

Silver US$31.8/oz vs US$31.1/oz previous

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

Base metals:   

Copper US$9,587/t vs US$9,547/t previous

Aluminium US$2,588/t vs US$2,540/t previous

Nickel US$17,325/t vs US$17,445/t previous

Zinc US$3,090/t vs US$3,018/t previous

Lead US$2,092/t vs US$2,040/t previous

Tin US$32,620/t vs US$32,080/t previous

Energy:           

Oil US$74.8/bbl vs US$74.4/bbl previous

• Crude oil prices remain under pressure as the IEA trimmed global oil demand growth expectations to 0.86mb/d in 2024 and 1.0mb/d in 2025 in October’s Oil Market Report, forecasting a sizeable supply surplus next year unless a major disruption occurs.
• The IEA has just released its World Energy Outlook 2024 report, arguing that the world is moving rapidly into the Age of Electricity, which has recently grown twice as fast as total energy demand, but is set to grow 6x as fast out to 2035, driven by EVs, ACs, chips, AI, etc.
• However, the IEA report also projects a 75% share in the energy mix for fossil fuels in 2030, an increase from the 73% share reported in the WEO 2023. The Stated Policies Scenario sees oil prices around $75-80/bbl, but this implies further production restraint and an increase in spare capacity to both oil and LNG producers.
• European energy prices were flat as French nuclear reactor operating levels were reported at 65% of 61.4MW capacity and Gazprom reported stable supply of 42.4mcm/d (~1.5bcf/d) via the Sudzha metering station.
• Woodside announced plans to delist next month from the London Stock Exchange, which accounts for ~1% of its issued share capital, due to low trading volumes and to reduce administration costs.
• Media reports that Ørsted has withdrawn from several wind-powered green hydrogen schemes after a review of the company’s Power-to-X projects, with a strategy to focus solely on its core business of wind energy.

Natural Gas €40.4/MWh vs €39.8/MWh previous

Uranium Futures $83.0/lb vs $83.0/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$105.8/t vs US$106.5/t

Chinese steel rebar 25mm US$525.9/t vs US$524.5/t

HCC FOB Australia US$211.0/t vs US$212.0/t

Thermal coal swap Australia FOB US$148.3/t vs US$148.3/t

Other:  

Cobalt LME 3m US$24,300/t vs US$24,300/t

NdPr Rare Earth Oxide (China) US$59,919/t vs US$59,914/t

Lithium carbonate 99% (China) US$9,905/t vs US$10,044/t

China Spodumene Li2O 6%min CIF US$750/t vs US$750/t

Ferro-Manganese European Mn78% min US$985/t vs US$985/t

China Tungsten APT 88.5% FOB US$340/mtu vs US$340/mtu

China Graphite Flake -194 FOB US$445/t vs US$445/t

Europe Vanadium Pentoxide 98% 4.6/lb vs US$4.6/lb

Europe Ferro-Vanadium 80% 24.55/kg vs US$24.55/kg

China Ilmenite Concentrate TiO2 US$315/t vs US$315/t

China Rutile Concentrate 95% TiO2 US$1,300/t vs US$1,299/t

Spot CO2 Emissions EUA Price US$63.9/t vs  US$63.9/t

Brazil Potash CFR Granular Spot US$277.5/t vs US$277.5/t

Germanium China 99.99% US$2,875.0/kg vs US$2,875.0/kg

China Gallium 99.99% US$455.0/kg vs US$455.0/kg

Battery News

Tesla announces Q3 production and delivery numbers ahead of financial results announcement

• In the report, Tesla announced they had produced 470,000 vehicles, with around 463,000 deliveries in the quarter.
• Tesla’s Model 3 and Model Y vehicles accounted for the bulk of production and deliveries, with 443,668 units produced and 439,975 units delivered.
• The report also highlighted that Tesla had deployed 6.9GWh of energy storage.
• Tesla is set to release its full financial results for Q3 2024 on Wednesday 23^rd October.

Gigafactory Shanghai also announced that it had reached the 3m vehicle production milestone

• Giga Shanghai too 32 months to produce its first 1m vehicles, but it has only taken 13 months to go from 2m to 3m cars produced.

Tesla gets green light to expand Germany plant

• Tesla have been looking to double the capacity of its Berlin Gigafactory and have received approval from the local environment minister for stage one of those plans to go ahead.
• The approval will allow Tesla to complete the first of the three stages of the expansion, including construction of infrastructure for storage facilities, a battery cell test laboratory, and logistics areas.
• Tesla has faced local resistance to its plans to increase the capacity of its plant, from 500,000 vehicles per year to 1m.
• If Tesla is successful with its expansion plans the plant will become the largest in Germany, surpassing VW’s headquarters in Wolfsburg.
• Plant director, Andre Thierig, said the company would wait to commit investment until it was clear that demand for EVs in Europe would pick back up.

Korean government to inspect batteries in pilot project for EV safety

• Earlier in the year, the Korean government announced that all EVs must list the battery type and manufacturer following a rise in EV battery fires.
• The government are also introducing a pilot scheme alongside five automakers and battery manufacturers to certify battery safety.
• Under the scheme, the participating firms must report their batteries to the Ministry of Land, Infrastructure and Transport to be certified.
• If carmakers and battery firms fail to obtain certification due to insufficient safety measures, they will be required to address and rectify their shortcomings.

Germany opposition pushing for EV leasing scheme to boost demand

• Two German EU lawmakers from the conservative opposition Christian Democrats are advocating for a scheme allowing people on low incomes to lease electric cars more cheaply, in an attempt to boost demand.
• Peter Liese and Dennis Radtke, who are both deputies in the European Parliament, suggested in a recent statement that Germany should adopt a scheme similar to one rolled out in France.
• France launched a state-supported leasing programme for electric models earlier this year, starting from €100 per month. The offer targets low-income individuals who rely on a car for work and live at least 15km from their workplace.

Company News

Antofagasta (ANTO LN) 1,853p, Mkt Cap £18bn – Production results

• Chilean copper producer Antofagasta produced 179kt Cu over the period, up 15% qoq.
• 2024 copper production now at 464kt in 2024, down 1.2% yoy.
• Cash costs before by-products reported down 11.4% qoq to $2.33/lb.
• Cash costs for the ytd period at $2.53/lb, up 5.4% yoy.
• Net cash costs reported up 9.7% yoy at $1.81/lb but down 16.5% qoq at $1.62/lb.
• Higher production and lower costs over the quarter reflect destocking of inventories at Los Pelambres and improved grades and recoveries from Centinela.
• Centinela second concentrator construction commenced April 2024, expected to add 170ktpa additional copper equivalent production, due 2027.
• Investment at Los Pelambres to double desalination capacity and replace existing concentrate pipeline.
• Guidance for 2024 at lower end of 670-710kt guidance.
• 2024 cash costs before and after by-products retained at $2.4/lb and $1.7/lb respectively.
• 2025 production guided at 660-700kt copper.

Cornish Metals* (CUSN LN) 8p, Mkt Cap £39m – £7m credit facility with Vision Blue to support continued development of the South Crofty tin mine in Cornwall, UK

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• Cornish Metals report the agreement of a £7m (US$9.1m) secured credit facility with the Vision Blue fund to support continued development of the South Crofty tin mine in Cornwall, UK.
• The loan term is to 31 March 2025 and carries a 15%pa interest rate and holds a fixed and floating charges over the company except mineral titles in the UK which are already pledged as security.
• Full repayment of the loan principal and its accrued interest is due on 31 March 2025.
• Vision Blue hold a fixed and floating charges over Cornish Metals but not over the underlying mineral titles.
• We believe the fund, which holds 25.95% of Cornish Metals shares, is committed to supporting the redevelopment and reopening of the South Crofty tin mine.
• Tony Trahar, ex CEO of Anglo American represents Vision Blue as it’s appointed NED on the Cornish Metals board.
• Tin market:  Tin prices have jumped higher today on expected to tightening of tin concentrates into China from Myanmar where heavy rains have compounded existing difficulties.

• Refined tin production fell in September in China according to the Shanghai Metals Market with smelters are moving to earlier than planned maintenance.
• Smelter recoveries are also reported to be falling on the processing of lower-grade ores and tailings.

Conclusion:  Many investors are interested in tin due to its increasing use in data centres for Artificial Intelligence. The South Crofty mine remains one of very few higher-grade tin resources available for near-term development.

*SP Angel acts as Nomad and Broker. An SP Angel analyst formerly worked in the South Crofty tin mine in the 1980s and holds shares in Cornish Metals

Eramet (ERA FP) €56, Mkt Cap €1.6bn – Sell off on a downgrade in Mn and Ni guidance

• Manganese ore production was revised down to 6.5-7.0mt, from 7.0-7.5mt previously.
• The revision is driven by a three week suspension of mining operations at Moanda, Gabon, on the back of an oversupply in the market.
• The Company reports weak carbon steel production in China weighing on demand as well as a sudden increase in the supply of low-grade ore, predominantly from South Africa.
• Nickel ores shipments from Weda Bay, Indonesia, revised down to 29mt, from 40-42mt, constrained by new operating permit.
• The Mines Ministry issued new operating permit for Eramet’s subsidiary PT WBN limiting annual nickel ore sales for 2024 and for the next two years to 32mt.
• This compares to the Company’s application for a ramp up in production from 44mt in 2024 and up to more than 60mt in the medium term.
• Eramet acknowledged volume restriction and, together with its partner Tsingshan, will submit a request for revision of the operating permit (RKAB) for 2025 and 2026.
• The stock is trading 17% down on the news this morning.

Galan Lithium (GLN AU) A$0.14, Mkt Cap A$77m – Entitlement offer closes fully subscribed for ~A$13m

• The Company closed the earlier announced entitlement offer fully subscribed raising additional A$13.3m at A$0.105.
• The 1 for 4 rights issue was part of a A$25m equity announced earlier in September.
• The raise follows a non binding MOU signed with Chemphys in August for US$40m offtake to fund Phase 1 a the HMW Lithium Project in Argentina.
• Phase 1 (4ktpa LCE expanding to 5.4ktpa) that is currently 40% complete is guided for construction completion in 1H25 and maiden production in 2H25.

Mayur Resources (MRL AU) A$30, Mkt cap A$126m – Financing of lime mining project in PNG

• Mayur Resources have updated the market on the financing of $50m investment into its Central Lime Project in PNG.
• ACAM and other investors are funding a US$10m convertible note plus a further $40m of equity funding, subject to conditions precedent, to fund construction activities and to settle existing debt and working capital.
• The convertible note carries a modest 10% coupon.
• US$40m funding is split
  • US$7.8m at A$0.2425/s
  • US$32.2m to result in investors holding 44.0% of the Central Lime Project company
• Conditions:
• Suitable debt arrangements in place to the satisfaction of the investors
• Execution of subscription and shareholder agreements and their conditions
• Shareholder approvals

Conclusion: This is an interesting deal and it is good to see investors funding the building blocks for economic development and growth in a challenged part of the world.

Metals Exploration (MTL LN) 5.6p, Mkt Cap £96m – Record quarterly gold revenues and FCF

• The Company reported 3Q24 production results posting record quarterly gold revenues and FCF.
• Runruno production came in at 22.5koz at reported AISC of $1,129/oz (3Q23: 22.0koz at $1,055/oz).
• 9M production totalled 65.1koz at $1,088/oz.
• YTD AISC are trending below FY24 guidance for $1,175/oz.
• The plant performed well treating 521kt at 1.51g/t and recovering 89% of gold (3Q23: 483kt at 1.60g/t and 89%).
• Quarterly sales amounted to 21.9koz with realised prices of $2,396/z (3Q23: 22.0koz at $1,926/oz).
• Quarterly revenues hit $53m with generated FCF of $28m (Q323: $42m and $19m).
• The team is expecting to start exploration drilling at identified targets at the recently acquired YMC Group licenses in 4Q24 once government approvals are secured.
• Through its pre-exploration surveys undertaken since taking ownership, the Company has already identified several additional drill targets from soil geochemistry and airborne geophysical data.
• The Abra Project (97% economic interest) covers 16,200 hectares approximately 200km north of the Company’s Runruno mine.
• The Company held $10.9m in cash and no debt on the balance sheet as of 3Q24 end.
• Closing cash balance accounts for $25.4m spent on buyback of RHL shares during the quarter.

Premier African Minerals (PREM LN) 0.05p, Mkt Cap £19m – Updated Zulu MRE

• The Company released an updated MRE for the Zulu Lithium Project in Zimbabwe.
• The latest estimate is for 24.8mt at 0.54% Li2O and 47ppm Ta2O5 in total resource including 11.6mt at 0.52% Li2O in the Measured&Indicated category.
• This compares to 24.8mt at 0.43% Li2O 42ppm Ta2O5 estimate released earlier in January.
• Both estimates have been prepared at the same 0% Li2O cut off grade.
• Higher reported grades are attributed to better-than-expected reconciliation of the grade in mining operations.
• Separately, the Company is planning to issue an update on processing facilities with “certain necessary plant issues… being attended”.
• The announcement is said to follow shortly.

Rio Tinto (RIO LN) 5,070p, Mkt cap £82bn – Q3 results as pivot to higher quality iron ore looms

• Rio saw iron ore production from the Pilbara increase 6% qoq, and 1% yoy to 84.1mt.
• Bauxite production rose 3% qoq and 8% yoy to 15.1mt.
• Increase reflects improved utilisation rates and plant availability at Weipa, which has been operating above nameplate.
• Aluminium production fell 2% qoq and yoy respectively to 809kt.
• Lower production affected by energy restrictions in New Zealand.
• Copper production on a mined basis fell 2% qoq and 1% yoy to 168kt, whilst the first nine months of the year up 8% to 495kt.
• Kennecott production fell 44% yoy over the quarter, following highwall movement along faulting.
• Kennecott production is expected to be reduced in 2025 and 2026.
• Escondida production rose 15% yoy on higher grades fed to the concentrator.
• Oyu Tolgoi production up 19% yoy as ramp-up continues and higher grades hit in the underground section. (2.05% vs 1.73% 3Q23)
• Oyu Tolgoi production down 5% qoq on concentrator maintenance.
• Tio2 slag production rose 11% qoq and 7% yoy to 263kt. Overall head grade at 0.67%.
• Increase reflects improved smelter performance, with six/nine furnaces operating in Quebec and three/four operating in Richards Bay.
• IOC production of pellets and concentrate fell 3% qoq and 11% yoy to 2.1mt on an attributable basis, and down 1% for the first nine months of the year at 6.9mt.
• IOC production hit by forest fires in July, with guidance lowered to 9.1-9.6mt vs 9.8-11.5mt.
• Company has agreed to acquire Arcadium Lithium for US$5.85bn, expected to close mid-2025.
• Regarding Rincon, the Company’s Argentine DLE project, Rio are building a 3,000tpa lithium carbonate starter plant, now 70% complete.
• First production from Rincon starter plant expected end of 2024. FID for full-scale plant due 4Q24.
• Rio working on an EIA for Jadar and going through public consultation.
• Simandou is expected to deliver first production in 2025, ramping up over 30 months to annualised capacity of 60mtpa.

Market Update

• Expect moderate global economic growth this year, with improved market sentiment from US Fed rate cuts and China growth targets.
• China property market downturn continues, whilst US labour market slowing but supported by strong household balance sheets.
• Eurozone outlook uncertain with industrial recovery slow.
• Iron ore prices being supported by higher cost supply coming offline, whilst China demand improving as steel mill maintenance concludes.
• Aluminium demand supported by packaging sector, whilst ex-China production rates slow. Market balanced in 3Q24, whilst inventories at historically low levels.
• Copper supported by pent up China demand, whilst ex-China demand saw a weak Europe and stronger Asia.
• Lithium demand supported by 20% yoy EV sales, despite slower uptake in Europe and the US. Supply closures in Australia and China amid weak prices.
• Titanium feedstock demand stabilised, but inventory build up from 2023 satisfying demand.

Conclusion Rio Tinto reports a stable quarter, marked by a significant strategic shift into lithium with its offer to acquire Arcadium. The company is emphasizing the potential of South American brines as a cost-effective lithium source, with a particular focus on Direct Lithium Extraction (DLE) technology. While less emphasis is placed on spodumene resources, management has acknowledged the appeal of Quebec’s hard-rock operations, where Rio already has a substantial presence. In the iron ore sector, Rio Tinto has announced a strategic review of its future Pilbara product strategy. This move suggests the company may be considering a shift towards higher-quality, higher-grade iron ore products. This potential pivot comes in response to declining ore quality in the Pilbara region and increasing global demand for high-grade iron ore feedstock.

SolGold* (SOLG LN) 9.44p, Mkt Cap £283m – Optimisation of ground geophysics to cut drilling required for foundation conditions

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• SolGold report the optimisation of the ground geophysics at the Cascabel project in Ecuador.
• The work should cut the drilling required ahead of the development of the foundations for the process plant and access portals for the development declines.
• The team are also making good progress on permitting for the:
  • Cascabel site infrastructure
  • Tailings storage
  • Port and pipelines
• ESIA ‘Environmental and Social Impact Assessment’ documents to be submitted to the Ecuadorian regulatory authorities by end Q3 2025. See RNS for further details on the permitting schedule.
• Reed Huppman and Ash Martin have joined the SolGold team.
• Reed Huppman joins as VP of ESG with >40 years as an environmental geologist and sustainability consultant working in >50 countries in mining, oil, gas, and infrastructure sectors.
• Ash Martin has joins VP of Project Engineering with >20 years in mining construction and development. Ash formerly worked with Guyana Goldfields, including Construction Manager for the Aurora Gold Mine and at Voyager Metals as COO and formerly VP of Technical Services

Conclusion: SolGold is advancing towards full project financing and should be a major beneficiary of the rise in gold prices with 3.01bnt of ‘Measured and Indicated’ resources grading 0.35% copper, 0.28g/t gold and 0.94g/t silver

*SP Angel acts as broker to Solgold

Tertiary Minerals* (TYM LN) 0.08p, Mkt Cap £3m – Mushima North drilling programme completed

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• Tertiary provides an update on their Mushima North drilling programme in Zambia, which is targeting the A1 and C1 copper anomalies.
• The Company has now completed 25 aircore/RC holes at a maximum depth of 112m.
• Three traverses have been completed at A1 and one at C1.
• The Company will use pXRF analysis of drill samples and send samples to an independent lab for analysis.
• Management reports the drill rig has been demobilised before the onset of rains.

*SP Angel acts as Nomad and Broker to Tertiary Minerals

Thor Explorations* (THX LN) 15p, Mkt cap £101m – Production downgraded following heavy rains

• Thor poured 20.1koz Au over the period, milling 202kt at an average grade of 3.22g/t Au.
• Mine production of 355kt at average grade of 2.01g/t Au.
• Stockpiles increased by 2.1koz to 40koz Au at an average grade of 0.94g/t.
• Further 1.6koz Au released in circuit.
• Paid $4m to Africa Finance Debt facility, now holding $3.9m remaining, due to be repaid this year.
• FY24 production guidance reduced to 85koz Au at AISC of $800-900/oz (revised from $900-1000/oz previous).
• Guidance was previously revised down from 95-100koz to 90koz.
• Thor has now produced 62koz over the first nine months of 2024.
• Senegal exploration continues, with drill target generation from Douta West and Sofita.
• RC drilling at Douta focused on expanding oxide resource and adding ounces at Makosa, alongside infill drilling.
• MRE and PFS for Douta scheduled for 4Q24.
• Cote D’Ivoire – Company boosted land package, with previous drill results including 12m at 10g/t Au, 16m at 8g/t Au, 24m at 2g/t Au and 16m at 2.25g/t Au.
• Company expects to begin an initial drill programme in CDI.
• Regarding tax dispute, management states they are ‘continuing our engagement… to resolve the unfounded accusations, demands and disruptive actions instigated against us by the Osun State.’

*A member of the SP Angel research team holds shares in Thor Explorations

Versarien* (VRS LN) 0.034p, Mkt Cap £1.25m – Placing raises further £450,000

• Versarien has raised a further £450,000 from investors through the placing of 1,385m new shares at 0.0325p/s.
• Proceeds will be used to advance the in-house concrete and mortar testing capabilities and to fund external UKAS testing services for their 3D construction printed products.
• Versarien’s first significant 3D construction printing contract is with Building For Humanity CIC, for their Charter Street project, in the UK with 3D printing to start next year.
• The team are also in on a 12-month commercially funded project with Balfour Beatty to develop graphene enhanced 3D construction printed materials and products.
• This fits well with Versarien’s Cementene^TM admixtures and novel 3D construction printed mortars.
• Management delivered the first 3D concrete printed headwall to Costain and National Highways as part of the A30 Chiverton to Carland Cross upgrade in Cornwall and are part of advisory board of National Highways’ Roads Research Alliance (RRA) alongside more than 20 construction companies through involvement in the Digital Roads of the Future Partnership
• Funds will also be used for general working capital.
• Versarien has a £4.7m pipeline of opportunities with £1.6m of commercial work and £3.1m of grant funding.
• Management are advancing towards the realisation of these opportunities and the further development of its pipeline.
• The team recently agreed the sale of AAC Cyroma, it’s plastics manufacturing business to Harper Bennett for £550,000 in cash, with payments split into 16 equal quarterly instalments of £34,375.
• Versarien continue to advance their graphene and 2D materials business lines with graphene inks going into shoes and leisure wear clothing.
• The team are also working to develop a new range of graphene-infused paints and wood finishing products.

Conclusion:  The focussing of the Versarien team onto a select number of business streams appears to be driving growth in their selected areas. We look forward to further news on the development of the £4.7m pipeline with further commercial ventures growing alongside these developments.

*SP Angel acts as Nomad and Broker to Versarien

No.1 in Base Metals: SP Angel mining team awarded No 1. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q1 2024

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

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

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

Analysts

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

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

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

Sales

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

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

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

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

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

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

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

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SPA 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