SP Angel Morning View -Today’s Market View, Wednesday 18th September 2024

Gold holds high levels ahead of Fed rate cut decision as Treasuries rally fades

MiFID II exempt information – see disclaimer below

Atlantic Lithium* (ALL LN) – Annual report

Arkle Resources* (ARK LN) – African lithium exploration work

Guardian Metal Resources (GMET LN) – Initial diamond drilling result from Pilot Mountain 2024 campaign

Power Metals Resources* (POW LN) – (Power Metals* holds a 51% stake in Guardian Metal Resources)

Barrick Gold (GOLD US) – PNG operations suspended on tribal violence

Empire Metals* (EEE LN) – Interims highlight continued progress on derisking Pitfield

KEFI Gold and Copper* (KEFI LN) – Tulu Kapi update

Newmont (NEM US) – Expecting $2bn at least from non-core asset sales

Rainbow Rare Earths (RBW LN) – Pilot scale test work produces saleable quality product from Phalaborwa

Sovereign Metals* (SVML LN) – Graphite separation pilot plant installed

Xanadu Mines (XAM AU) – Metallurgical results for Mongolian copper project PFS

Gold ($2,570/oz) holds high levels ahead of Fed rate cut decision as Treasuries rally fades

• Gold prices have eased to $2,570/oz, having hit record high of $2,590/oz on Monday.
• The rally has cooled in the lead up to the Fed’s rate cut decision today, with US Treasuries also paring gains.
• The 10 year yield has risen to 3.66%, whilst the dollar is also ticking higher.
• The market is currently leaning towards a 50bp cut today, pricing in a 63/37% of 50/25bp cuts respectively.
• Retail sales failed to push the market in either way, and focus will be on the Fed dot plot alongside Powell’s commentary on their progress against inflation and the labour market.
• Gold has enjoyed a strong rally and hedge funds have built sizeable bullish positions, as a result it would not be a surprise to see a short term pullback.
• Saudi Arabia is reported to have been calculated to be buying physical gold from Swiss refiners.
• However, if bonds start to strengthen again into the Fed cutting cycle and Central Banks continue to add in the lead up to the election and the BRICs summit, it wouldn’t be surprising to see the metal push record highs again.

Copper – Beijing imposes new tax on scrap metal traders and processors

• The tax, part of Beijing’s centralisation policy, is reported to have caused scrap traders replacing scrap with pure copper cathode.

European EV sales set for strong rebound in 2025 according to study

• EV sales in Europe are expected to rebound strongly in 2025, reaching between 20 and 24% market share as stricter emission limits come into effect and cheaper models are introduced.
• The report by think tank Transport & Environment (T&E) predicts that mass-market EV offerings will drive recovery.
• T&E’s projections are based on the belief that Europe will see seven fully electric models priced under €25,000 in 2024 and 2025.
• EV sales have slipped in 2024, accounting for only 14% of new car sales, after three years of growth.
• Declines in Germany, Europe’s largest market, due to subsidy cuts, have overshadowed gains in countries like the Netherlands, Spain, and Italy.
• A separate study by BMI Research also projects significant EV sales growth, particularly driven by corporate fleets and rental companies.

Economics

US – Robust retail sales came out yesterday pointing to good consumer sentiment one day ahead of the Fed policy rate announcement.

• Fed monitored Retail Sales Control Group came in line with expectations in August, although, previous month was revised higher.
• Markets are currently pricing in higher chance of a 50bp move than 25bp with latest data showing slowing in new jobs growth and inflation (although the progress slightly slowed lately).
• The FOMC will release updated dot plot chart showing members’ rate outlook with the latest one from June pointing to just one rate cut this year.
• Retail Sales (%mom, Aug/Jul/Est): 0.1/1.1(revised from 1.0)/-0.2
• Retail Sales ex Auto and Gas (%mom, Aug/Jul/Est): 0.2/0.4/0.3
• Retail Sales Control Group (%mom, Jul/Jun/Est): 0.2/0.4(revised from 0.3)/0.3

UK – No change in the inflation rate, in line with market forecasts, is expected to see the central bank supporting another rate cut later this year.

• Services inflation picked up during the month, although, an increase was largely expected and forecast to be temporary.
• Both headline inflation and services measure track below BOE forecasts for 2.4% and 5.8%, respectively, in August.
• Market is expecting to rate cuts before year end, one in November and one in December.
• CPI (%mom, Aug/Jul/Est): 0.3/-0.2/0.3
• CPI (%yoy, Aug/Jul/Est): 2.2/2.2/2.2
• Services CPI (%yoy, 5.6/5.2/5.6
• Core CPI (%yoy, Aug/Jul/Est): 3.6/3.3/3.6

Ukraine – Russian struggling with Return-to-Sender algorithm in drones

• Reports indicate Russia has had a few problems where they have uses semiconductors with Return-to-Sender algorithms.
• We believe the Chinese military has also discovered that some of its missiles also have semiconductors containing this embedded code and are busy trying to work out which missiles are affected.
• If all the world’s weapons contained this code the world might well be a better place.
• Ukraine hit an weapons arsenal in Russia yesterday in the Tver region. The size of the blast is reported to be consistent with 200-240t of high explosives detonating.

Hezbollah – Exploding beepers

• Hezbollah is reported to have ordered 5,000 beepers made under license in Hungary by BAC using the Taiwan-based Gold Apollo name.
• Mossad is reported to have planted up to 3g of explosives inside thousands of these pagers.
• The number injured by exploding pagers remains at 2,750 with nearly every injured person believed to be a Hezbollah terrorist.
• Iran’s ambassador to Lebanon was injured, presumably because he was carrying one of the Hezbollah pagers implicating him in the activities of the terrorist organisation

Currencies

US$1.1125/eur vs 1.1136/eur previous. Yen 141.75/$ vs 140.42/$. SAr 17.559/$ vs 17.624/$. $1.319/gbp vs $1.322/gbp. 0.677/aud vs 0.676/aud. CNY 7.096/$ vs 7.097/$

Dollar Index 100.83 vs 100.69 previous

Precious Metals

Gold US$2,570/oz vs US$2,585/oz previous

Gold ETFs 83.3moz vs 83.2moz previous

Platinum US$984/oz vs US$991/oz previous

Palladium US$1,120/oz vs US$1,094/oz previous

Silver US$30.6/oz vs US$30.8/oz previous

Rhodium US$4,725/oz vs US$4,775/oz previous

Base metals:   

Copper US$9,371/t vs US$9,437/t previous

Aluminium US$2,526/t vs US$2,534/t previous

Nickel US$16,245/t vs US$16,355/t previous

Zinc US$2,911/t vs US$2,968/t previous

Lead US$2,010/t vs US$2,050/t previous

Tin US$31,535/t vs US$31,850/t previous

Energy:           

Oil US$73.2/bbl vs US$73.0/bbl previous

• Crude oil prices were stable ahead of this evening’s conclusion of the US Fed’s latest rate-setting meeting, with the API reporting a 2.0mb w/w build (-0.1mb exp) to US crude stocks.

Natural Gas €35.4/MWh vs €34.5/MWh previous

Uranium Futures $79.5/lb vs $79.5/lb previous

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$90.6/t vs US$92.5/t

Chinese steel rebar 25mm US$476.0/t vs US$473.1/t

Thermal coal (1st year forward cif ARA) US$115.8/t vs US$112.8/t

Thermal coal swap Australia FOB US$135.3/t vs US$132.8/t

Coking coal Dalian Exchange futures price US$172/t vs US$172.0/t

Other:  

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

NdPr Rare Earth Oxide (China) US$58,135/t vs US$58,122/t

Lithium carbonate 99% (China) US$9,936/t vs US$9,933/t

China Spodumene Li2O 6%min CIF US$740/t vs US$740/t

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

China Tungsten APT 88.5% FOB US$330/mtu vs US$330/mtu

China Graphite Flake -194 FOB US$440/t vs US$440/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$321/t vs US$321/t

China Rutile Concentrate 95% TiO2 US$1,374/t vs US$1,374/t

Spot CO2 Emissions EUA Price US$63.4/t vs US$64.4/t

Brazil Potash CFR Granular Spot US$290.0/t vs US$290.0/t

Germanium China 99.99% US$2,625.0/kg vs US$2,625.0/kg

China Gallium 99.99% US$445.0/kg vs US$445.0/kg

Battery News

National Grid blames old computer systems for lack of battery storage

• The National Grid has admitted that its ageing computer system and old electricity network has meant it is often unable to use batteries designed to deliver cheap green power.
• The network operator has said that batteries are overlooked up to 30% of the time, even when they are cheaper than other power sources
• These comments came in response to a letter from four leading battery storage groups which said National Grid’s “electricity system operator” (ESO) division was making the country’s power costlier and dirtier by failing to use technology properly.
• The UK is the world’s second-largest offshore wind market after China, but its wind farms are wasted when it is too windy and the grid cannot send their power to where it is needed.
• When there is excess power the ESO pays wind farms in certain locations to switch off and may also need to pay gas-powered plants to turn on in order to ensure there is enough power across the grid, which is very costly.
• The ESO has said that batteries sometimes had to be overlooked because it was impossible to get their power to where it was needed.
• They have also said that ‘skip-rates’ should be on the way down following a computer system upgrade in December 2023.

CATL unveil 15-year-lifespan battery for electric buses

• Battery giant CATL has launched new batteries with an extra long lifespan for electric buses.
• The CATL Tectrans Bus Edition has an energy density of 175Wh/kg, the highest in the electric bus industry, according to the company.
• The battery has a service life of up to 15 years or 1.5m kilometres and a warranty of 10 years or 1m kilometres, CATL said.

New report shows batteries will outlast vehicle lifetime with minimal degradation

• “Batteries in the latest EV models will comfortably outlast the usable life of the vehicle and will likely not need to be replaced,” according to David Savage, Vice President for the UK and Ireland at Geotab.
• Geotab, a Canadian fleet management company, analyses telematics data from its global fleet.
• 5,000 fleet and private EVs representing nearly 1.5m days of telematics data were analysed and the average annual degradation rate was found to be 1.8%, and top end EVs were found to have a degradation rate of 1% or lower.
• A 1.8% annual degradation rate means that in 20 years, the battery of an EV would theoretically still have 64% life in it.
• Battery health isn’t directly proportional to remaining range, but it is a good indicator.

General Motors to buy LFP batteries with CATL technology

• GM is reportedly planning to buy LFP batteries produced with technology from Chinese firm CATL (TESLARATI).
• The rumoured battery plant will be funded and operated in the US, by Japanese company TDK, and will assemble LFP batteries using CATL technology.
• GM has not confirmed this arrangement but stated that its EV strategy focuses on reducing costs, enhancing performance, and localising production.
• When approached by Bloomberg News, GM declined to comment on the speculation.
• Earlier this year, GM began discussions with CATL to license its LFP battery technology, with both companies considering a joint factory in North America.
• However, due to US political concerns about reliance on Chinese EV technology, this partnership may face scrutiny, especially as the 2024 US Presidential Elections approach.

Company News

Atlantic Lithium* (ALL LN) 12.78p, Mkt Cap £82m – Annual report

(Ewoyaa Ownership:  Atlantic 62.9% falling to 40.5% if Piedmont fund their share of Ewoyaa, Piedmont 18.2% rising to 40.5% on project funding, MIIF Sovereign Wealth fund 6%, Ghana 13%)

(Piedmont are contracted to pay $70m + 50% of the total Capex to raise their stake to 40.5%. Total cost would be $135m to Piedmont on a $200m capex.)

• Annual report highlights loss of A$12.4m to end June 2024 vs A$11.5m in 2023 due to increased admin, consulting, legal, travel and share based expenses.
• The group earned $0.3m of other income from interest on its cash balances and also recorded a A$0.4m gain in the fair value on financial liabilities.
• The directors earned a total of A$1.2m in salaries and fees plus A$0.9m in cash bonuses, A$1m in options and A$2.6m in performance rights to receive a total of A$6.8m in total compensation in FY 2024 vs A$7.7m in 2023.
• We note the value of the share based compensation will have changes substantially with the share price over the year.
• Takeover offers: The board of Atlantic Lithium previously rejected two offers by Assore, a South African based mining group to acquire the company
• Assore bought 24.3m Atlantic Lithium shares from Piedmont and will likely return with another offer in our view.
• Mining lease granted: Atlantic now awaits the ratification of the Mining Lease by the Ghanian parliament.

*SP Angel acts as Nomad to Atlantic Lithium. Two mining analysts from SP Angel recently visited the Ewoyaa mine site in Ghana and drove onto Takoradi to check the quality of the road to port. Our analysts also visited the Ministry of Minerals Commission and MIIF, the Ghana Minerals Income Investment Fund

Arkle Resources* (ARK LN) 0.25p, Mkt Cap £1.3m – African lithium exploration work

• Arkle Resources has issued a progress report on its lithium exploration in Botswana and Zimbabwe.
• In Botswana, sampling in the Makgadikgadi Salt Pans is underway recovering potentially lithium bearing brine from beneath the surface salt crust.
• The company says that the “initial sampling work will take about two weeks”.
• Chairman, John Teeling, explained that if lithium is confirmed in the Makgadikgadi brines, “the next stage, already planned, is a grid sampling programme to estimate lithium grades across the block”.
• In Zimbabwe, “Arkle is undertaking a reconnaissance of the ground to look for traces of, and extent of, spodumene and / or lepidolite rock” on its 153 hectares licence are at Insiza in Matabeleland.
• Mr. Teeling said that Arkle Resources expects to “confirm the presence of lepidolite, a lithium bearing ore” at Insiza.

Conclusion: We await results from the early lithium exploration work in Botswana and Zimbabwe.

*SP Angel are Nomad and Broker to Arkle Resources

Guardian Metal Resources (GMET LN) 30.5p, Mkt Cap £36m – Initial diamond drilling result from Pilot Mountain 2024 campaign

Power Metals Resources* (POW LN) 17.9p, Mkt cap £19m – (Power Metals* holds a 51% stake in Guardian Metal Resources)

• Guardian Metal Resources reports results from the first diamond drillhole of its 2024 campaign at the Pilot Mountain project in Nevada.
• The hole, PM24-001, which was drilled at an angle of 75.5⁰ to a depth of ~152m on the Desert Scheelite deposit, intersected three mineralised zones:
  • 9m at an average grade of 0.37% tungsten trioxide, 2.48% zinc, 43.7g/t silver and 433ppm (0.04%) copper from 69.1m depth; and
  • 27.9m averaging 0.42% tungsten trioxide, 1.30% zinc, 23.1g/t silver and 1,245ppm (0.13%) copper from a depth of 96.6m including an 8m section from 108.7m depth which averaged ; 0.84% tungsten trioxide; and
  • 1.8m at an average grade of 0.42% tungsten trioxide, 1.44% zinc, 7.6g/t silver and 217ppm (0.02%) copper.
• CEO, Oliver Friesen, confirmed that “the deepest interval … [remains] … open at depth”.
• “The Company considers all three of the strongly mineralised zones within PM24-001 to be near surface, within the context of possible future mining options, further highlighting the importance of the Desert Scheelite tungsten deposit and the Pilot Mountain Project”.
• Guardian Metal Resources confirms that it has completed 20 holes of the programme, which started in May, and that the “21^stdrillhole is currently underway”.
• Mr. Friesen commented that the company considers “Pilot Mountain to be a uniquely valuable strategic asset which we believe can contribute to various U.S. national security objectives, especially as, currently, there is no domestic production of tungsten, a much-needed critical defence metal”.
• The drilling campaign aims to expand the current ‘Indicated’ mineral resource of 9.01mt at an average grade of 0.26% tungsten trioxide (WO₃) plus an ‘Inferred’ resource of a further 3.53mt at an average grade of 0.31% WO₃ within the deposits at Desert Scheelite and Garnet.

Conclusion: The first hole reported from 2024 drilling campaign at Pilot Mountain has intersected 3 individual mineralised zones which bodes well for the campaign delivering an increased mineral resource when the results of the 2024 drilling are incorporated into the resource model.  We await the assay results from the continuing drilling with interest.

*SP Angel acts as Nomad and Broker for Power Metals

Barrick Gold (GOLD US) $20.5, Mkt Cap $36bn – PNG operations suspended on tribal violence

• Reuters reports Barrick has suspended operations at its Porgera gold mine in PNG after an episode of tribal violence.
• At least 20 are reported dead, with the police being brought in to contain the violence between illegal settlers and local landowners.
• Two Barrick employees are reported dead, and operations suspended until tomorrow.

Empire Metals* (EEE LN) 7.3p, Mkt Cap £44m – Interims highlight continued progress on derisking Pitfield

• Empire reports interim results for the six months to 30^th June 2024.
• The Company is progressing the Pitfield titanium project in Western Australia.
• Two primary target areas within the large 26.4-32.2bnt exploration target (grading 4.5-5.5% Tio2) are currently being targeted.
• Empire has identified a weathered cap zone, which is believed to contain a higher-value, high-purity anatase zone.
• This will be the primary target for processing given anatase’s similarities to rutile and thus the potential to produce a higher value feedstock for both the pigment and metal sponge industries.
• The Company reports a cash position of £2.4m as of 17^th September 2024 following a £3m placing.
• Going forward, Empire’s focus is on processing of the unique Pitfield orebody, alongside delineating a maiden MRE.
• Current diamond drilling at Pitfield is intended to support mineral processing test work on the anatase section of the orebody.

 *SP Angel acts as nomad and broker to Empire Metals

KEFI Gold and Copper* (KEFI LN) 0.6p, Mkt Cap £36m – Tulu Kapi update

• Early works at the Tulu Kapi Gold Project in Ethiopia are progressing.
• Security inspections have been successfully completed demanded by all project funding syndicate members ahead of investment proposal.
• Independent monitoring will continue through the life of the project.
• Local consultations are being carried with a positive feedback received.
• Authorities indicated they are ready to provide all ratifications necessary for detailed definitive documents to be executed.
• The focus on optimising equity capital part of the project funding and in particular on the Equity Risk Notes component by co-lenders and local investors.
• Project funding involves $320m total development capex with $190m to be covered by senior bank loans, $20m in project level equity from Federal and Regional government and the balance $110m from regional investors in the form of equity risk notes.
• The management reiterated the target to close the funding next month.

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

Newmont (NEM US) $53, Mkt Cap $61bn – Expecting $2bn at least from non-core asset sales

• Newmont’s COO Natascha Viljoen stated yesterday that they expect to raise at least $2bn from asset sales of non-core projects.
• The Company has previously highlighted plans to divest non-core assets following its takeover of Newcrest last year.
• Newmont is focusing on Tier 1 assets, or mines that can produce 500kozpa for 10 years at least.
• This month, Newmont sold Telfer and Havieron interests to Greatland Gold for a consideration up to $475m, backed by Forrest’s Wyloo.
• Newmont’s other non-core assets currently up for sale include Éléonore, Musselwhite, Porcupine, CC&V, Coffee and Akyem, where underground development potential is being considered.

Rainbow Rare Earths (RBW LN) 9p, Mkt cap £64m – Pilot scale test work produces saleable quality product from Phalaborwa

• Rainbow Rare Earths reports that it has produced magnet rare earth element products from pilot scale leach testing of material from Phalaborwa, South Africa.
• CEO, George Bennett confirmed that “we have now achieved two saleable products, being a mixed rare earth carbonate and separated Nd/Pr … [neodymium/praseodymium]  … oxide of +96% purity … [and said that] … we will continue to optimise our process to achieve our target of +99% purity”.
• The company’s work has also simplified the “process flowsheet with a smaller footprint … [which is expected to generate] … capital and operating cost benefits versus the PEA flowsheet, which already showed strong economic returns across the rare earth price cycle”.
• Continuing work on the final separation flowsheet “has shown that the leach and separation processes need to be integrated on the same site to allow for the recycle of critical streams from the separation process to the appropriate destinations in the leach plant and relevant disposal of waste material”.
• Evidently the continuing test work is identifying important operating and cost efficiencies within the flowsheet, however, this puts “the timetable to complete the DFS in H1 2025 at risk and the Company is therefore updating its guidance to complete the DFS during full year 2025, recognising that the most important objective is to deliver the optimal flowsheet to ensure the long-term success and sustainability of the project”.
• Earlier this month, the company updated the mineral resource estimate for Phalaborwa with a 15% increase adding an extra two years to the project’s life extending it to 16 years.
• Rainbow Rare Earths also explains that as “part of the financing process, offtake discussions have commenced with industry participants, including original equipment manufacturers and global trading companies, who share Rainbow’s values and are looking to secure responsible sources of all four critical magnet REE”.
• Mr. Bennett commented on the “supply chain for REE … [Rare Earth Elements, which he said] … is subject to excessive vulnerabilities due to the dominance of China, who are increasingly demonstrating their ability to restrict access to speciality metals”.
• He said that “The geopolitical risks have never been greater and we foresee that Phalaborwa can play an important part in the development of an independent and ethical supply chain of all four critical magnet REE”.

Conclusion: Test-work continues to deliver operational and cost synergies to the Phalaborwa flowsheet.  Additional testing is likely to defer completion of the DFS by around six months but in our view the potential operational and cost benefits over the sixteen-year project life should outweigh any adverse sentiment over the extended timetable.

Sovereign Metals* (SVML LN) 32.35p, Mkt Cap £183m – Graphite separation pilot plant installed

(Sovereign currently holds 100% of the Kasiya project. The government has a right to a 10% free carry in the project.

Rio Tinto acquired an initial strategic interest for A$18m plus a further A$0.7 to get to 19.9%)

STRONG BUY – Valuation 55p

• Sovereign Metals reports the instillation of the spiral concentrator plant at the recently expanded testing facilities in Lilongwe, Malawi.
• The spiral has throughput capacity of 3t per hour and is being used to pre-concentrate graphite from the Kasiya ore.
• The stream of wet ore through the spiral will separate the heavy minerals from the lighter minerals and graphite leading to several product streams at its exit.
• Graphite tailings will be further processed by froth flotation, polishing and stirred media mills to produce a “coarse-flake graphite concentrate and tailings”.
• Production of graphite concentrate is important for further tests with potential offtakers for Li-ion battery anodes and for industrial uses including: refractories, foundries, expandable graphite, graphite foil, brake lining pads, and lubrication.
• The test plant is also good for training new Malawian operators in preparation for larger-scale production in future years.
• Sovereign recently reported the production of ‘outstanding’ battery anode material from graphite samples taken from the Kasiya project.
• The natural graphite at Kasiya was formed in-situ and is easily separated from the rutile and other sedimentary materials.
• Recent test work shows performance characteristics comparable to the highest quality natural graphite battery material produced by dominant Chinese anode manufacturers.
  • “Electrochemical testing achieved very high first cycle efficiencies of 94.2% to 95.8% supporting long battery life
  • Excellent initial discharge capacities greater than 360mAh/g as required for highest quality natural graphite anode materials.
  • Very low specific surface areas (known as BET) of ≤2.0m2/g minimising the loss of lithium in the first battery charging cycle
• Low BET (Brunauer Emmett Teller) specific surface area indicates relatively few exposed surfaces for interaction for reduced reactivity. A higher surface area usually leads to increased irreversible battery capacity loss in graphite battery anodes.
  • Excellent tap densities of 1.11 to 1.18g/cm3 meaning higher electrical storage
• Low BET graphite normally has a higher tap density which helps to increase volumetric energy density in Li-ion batteries.
  • Outstanding anode material results are attributed to the unique geological setting of the highly weathered Kasiya orebody compared to fresh rock hosted graphite deposits, including:
  • high purity of the natural flake,
  • near perfect crystallinity, and
  • very low levels of sulphur and other impurities.”

Conclusion:  The production of graphite from the Kasiya project provides a useful co-product to run alongside the production of rutile from the mine.

Graphite and rutile are easily visible at surface on the property with Sovereign set to potentially become the largest and lowest cost producer of graphite globally.

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

Xanadu Mines (XAM AU) A$0.05, Mkt Cap A$93m – Metallurgical results for Mongolian copper project PFS

• Xanadu Mines, currently progressing the Kharmagtai copper-gold project in Mongolia, report PFS met-testwork results.
• The project is currently aiming to produce a copper concentrate through crushing, grinding and flotation, alongside gold dore through gravity separation and leaching.
• Combined process plant delivered ‘average overall recoveries of 81% copper and 80% gold from sulphides.’
• Gravity gold recovery reported at 10%.
• Flotation recovery reported at 81% copper and 63% gold.
• CIL supported an additional 7% gold recovery.
• Company expects to be able to produce a copper concentrate up to 25% Cu and 25g/t Au.
• Company notes that the gold is strongly associated with chalcopyrite.

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

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

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

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SPA 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