Iron ore prices consolidate at a new high despite the warning of peak demand from Rio Tinto
MiFID II exempt information – see disclaimer below
CAA Mining* (Private) – Preparing to drill Spodumene (lithium) discoveries close to Ewoyaa in Ghana
(Agreement to earn into 85% on six lithium licenses through expenditure of $8m on licenses)
(CAA holds 70% in Lithium Resources Ghana Limited (LRGL) in return for spending US$4 m and US$2 million already spent to date)
- Spodumene identified in surface and petrographic studies on licenses to the north and east of Atlantic Lithium’s, Ewoyaa resource.
- Petrographic analysis shows spodumene as large euhedral and idiomorph crystals also large and small subhedral grains in samples.
- Work done:
- Petrographic studies on auger chip samples and surface outcrop both show spodumene,
- >8k metres of follow up auger drilling,
- >1,500 auger samples analysed,
- >5k soil samples collected,
- Abasaa corridor, 15-20km east of Ewoyaa deposit generating geochemical footprint interpreted to be analogous with lithium mineralisation at depth,
- $2 million already spent by CAA on exploration.
- Assays: Full field laboratory equipped with PXRF and LIBS, for quick lithium assays recently installed
- Livista Energy: Cross-shareholding and JV with Livista, a lithium refiner with plans to process lithium in Ghana.
- Target: to prove an initial exploration target offering >10mt @ >1% lithium oxide
- Funding: CAA is looking to raise £0.5-1m in pre-IPO funds for drilling and expenses at a Valuation of £5.85m at 30p/s pre-new money
*SP Angel’s role is limited to making introductions and interested parties should be aware that investment in a private company can present certain risks not present in listed companies (e.g. limited or no liquidity and no rules compelling disclosure of information to investors).This offer is open to professional investors only and is not offered to retail investors.
Capital Limited (CAPD LN) – New contract with Nevada Gold Mines
Cornish Metals* (CUSN LN) – Drilling underway at newly discovered zone south of the South Crofty mine
Great Southern Copper (GSCU LN) – Agreement to acquire a lithium project in Chile
Power Metal Resources* (POW LN) – Strong helium anomaly at Perch River raises potential for uranium discovery
Red Rock Resources (RRR LN) – Zimbabwe lithium sample results
Rio Tinto CEO warns of peak China steel demand as property boom stalls
Savannah Resources* (SAV LN) – Passing of Board member
Shanta Gold (SHG LN) – Strong earnings driven by commissioned Singida and higher spot gold prices
Thor Energy (THR LN) – A$1m fund-raising to progress exploration in the Uravan belt of southwest Colorado
Wishbone Gold* (WSBN LN) – Drilling at the Red Setter project, WA
*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.
21% of EU vehicle sales in August were full EVs
- According to data from the European Automobile Manufacturers Association (ACEA), 21% of vehicle sales were fully electric.
- It is the first time EV sales have made up a fifth of EU vehicle sales.
- Internal combustion models made up < 50% of sales in August, Plug-in hybrid EVs made up 7.4% of sales, while full hybrids made up 23.9% of sales.
- Diesel vehicles accounted for only 12.5% down from over 50% as recently as 2015.
Copper prices steady as inventories rise and Chinese smelters boost capacity
- Copper prices are hovering around $8,300/t, lacking direction without major catalysts.
- The Yuan seems to have stabilised for the time being, putting a pause to copper’s recent downtrend.
- LME inventories are sitting at their highest levels since 2022, doubling since July.
- Copper smelting industry leaders are currently meeting in China, with the major theme to ‘acknowledge the importance of self-discipline in controlling total quantity’ of production. (Bloomberg)
- Smelters have been ramping up import demand for concentrate, increasing reliance to 77% vs 2013’s 60%.
- Copper fabricating margins are depressed, adding to concerns.
- China’s copper smelters have increased capacity to record levels this year, whilst domestic demand wanes.
- Another theme from the conference regards increasing access to overseas raw material, likely to materialise in further Chinese investments upstream, into the copper mining sector.
- Copper inventories in China remain relatively low at 43kt in bonded warehouse stocks and 99kt in visible inventories.
- Raised LME inventories point to weak global demand whilst China’s low stocks may encourage improved appetite for refined copper imports.
Tokyo Steel holds prices steady on sluggish global demand and weak Japanese construction
- Tokyo Steel, Japan’s largest EAF seelmaker, will not raise its pricing for October.
- The move marks the third price hold since cuts for some products in July.
Diamonds – Alrosa steps into commanding role in the diamond industry as DeBeers stands aside
Anglo American to absorb potential $500m write-down on revaluation of DeBeers diamond purchases from Debswana
- Alrosa halts allocation of rough diamonds in September and October.
- “We believe that this approach is going to have a stabilizing impact by strengthening the market’s supply and demand balance.
- This will aid the prevention of overstocking especially with manufacturers closed for Diwali.”
- Alrosa is looking to address the supply-demand mismatch that has emerged in recent months.
- “Only through the combined efforts of the global diamond industry organizations will it be feasible to create the essential effect for the benefit of the whole market and its participants, both on demand and supply side.”
- We wonder what Putin will have to say about no revenue from Alrosa for a few months to support his ‘Special Operation’ in the Ukraine?
- Botswana: Diamond sales made up 90% of Botswanan exports at US$4.6bn in 2022. Diamond sales made up 16% of Botswana GDP in 2021.
- DeBeers sells 75% of Botswana’s diamonds and under the new deal agreed in principle with the government is likely to take substantial write-downs on diamonds which it is unable to sell.
- This will likely translate into billion-dollar write-downs for DeBeer’s parent Anglo American.
The HK diamond show is virtually empty this week as buyers stay away
- The empty show indicates a general lack of consumer confidence across China and other Asian markets
- We also suspect the low cost of Lab Grown Diamonds which is thought to be under $90/ct and falling is damaging consumer confidence in jewellery markets.
- We note a major high-street retailer, are selling 1ct white gold Lab Grown Diamond rings on their website for just under £1,300 indicating a massive markup on the LGD in the ring.
- Producers of smaller and lower quality diamonds appear to be facing Armageddon with collapsing sales and prices while producers of larger and better quality stones appear so-far relatively unaffected.
- 0.4ct diamonds are now priced 30% lower yoy according to the Rapaport TradeWire and that’s if you can sell them.
- When it comes to LGDs, we are reminded of the immortal words of Gerald Ratner “it’s total ….”.
|Dow Jones Industrials||-0.31%||at||34,518|
|HK Hang Seng||-0.56%||at||17,897|
US – FOMC decision is due later today with the central bank widely expected to hold rates unchanged at 5.25-5.50%.
- The Fed will also publish its quarterly rate projections (‘dot plot’) showing any changes to rates outlook.
- Median FOMC members’ outlook is for another 25bp hike before year end followed by 100bps of cuts in 2024.
- With oil prices rising the Fed may well choose to raise rates further in pre-emptive action against resurgent inflation.
- Higher US interest rates will also serve to strengthen the US dollar and draw funding away from China and other developing markets.
- Total housing starts fell 11.3% to 1.283m units vs 1.435m expected.
- Single unit starts fell 4.3% to an annualised 941,000.
- Total building permits increased 6.9% to 1.543m vs consensus of 1.442m.
- Permits for single units rose 2.0% to 0.95m.
China – Prime lending rates were left unchanged at 3.45% and 4.20% for 1y and 5y loans, respectively, following the central bank decision to stay put on rates last week.
- Earlier, the central bank decided to maintain lending rates little changed at the September fixing and opting to evaluate the impact of previous easing measures including an interest rate cut in August and a recent reduction in the reserve requirement ration for banks.
- The central bank cut RRR 25bps to 7.4% last week marking the second such move this year.
- Sunac China Holdings, filed for Chapter 15 bankruptcy protection in US court yesterday (Asia Financial).
- The firm was China’s third largest property developer but with a halving of sales last year it now ranks 10th
- Creditors of Sunac approved a $9bn offshore debt restructuring plan on Monday marking the first approval of such a restructuring by a major Chinese property developer.
- Sunac has total liabilities of US$137bn. Compare this with BHP total long-term debt of $14bn, Rio Tinto at $13bn and Glencore at $19bn.
Japan – Exports dropped for the second consecutive month in August in further signs of a global slowdown, Bloomberg writes.
- Overseas shipments to China continued to slide at a double-digit pace in August pointing to a weakening demand in its major trading partner.
- Imports slumped for a fifth straight month also reflecting domestic issues as consumers are hit with rising inflation.
- Exports (%yoy): -0.8 v -0.3 July and -2.1 est.
- Imports (%yoy): -17.8 v -13.6 July (revised from -13.5) v -20.0 est.
UK – CPI slows to 6.7% yoy from 6.8% in August as higher oil prices reduce prospects for lower inflation through second half
Sterling continues to slide this morning as inflation data came in weaker than expected a day ahead of the MPC policy announcement.
- The currency dropped 0.5% against the US$ hitting the lowest level since May.
- Headline inflation slowed to 6.7% in August marking the weakest reading in 18 months.
- CPI (%mom): 0.3 v -0.4 July and 0.7 est.
- CPI (%yoy): 6.7 v 6.8 July and 7.0 est.
- Core CPIP (%yoy): 6.2 v 6.9 July and 6.8 est.
- While CPI is now far short of the 7.1% expected the market still expects the Bank of England to raise rates by 25bps tomorrow.
- CPI goods rose to 6.3% yoy from 6.1%
- CPI services slowed to 6.8% yoy from 7.4%.
- CPI is falling on lower prices in the leisure sector but this is now being offset by higher fuel costs.
- Observers will be looking for statements indicating the BoE may have reached the peak of its interest rate cycle.
- The BoE is balancing its impact on Sterling which has weakened over the past month to 1.2368/USD from 1.2795.
- Households should be looking to lock in energy prices for the winter with Octopus offering a 1-year fix at 17.51/kWh yesterday
Switzerland – SECO downgrades 2024 growth and lift inflation forecasts
- The Swiss Secretariat for Economic Affairs economic forecasts has upgraded 2023 GDP to 1.3% from 1.1% as forecast in June.
- SECO also cut 2024 GDP to 1.2% from 1.5%.
- CPI estimates have been cut but 0.1% to 2.2% for 2023 and but rose to 1.9% from 1.5%.
- SECO sees evolving risk in Germany and China as potent risk factors which could significantly impact Swiss trade.
Indonesia – Government to cap additional nickel ore exports for rest of 2023
- Indonesia will not approve additional nickel mining output quotas for the remainder of the year. (Reuters)
- Nickel ore prices in Indonesia are on the rise as the government cracks down on illegal mining.
- Indonesian plants are curbing output on a lack of feedstock for smelters.
- Indonesia controls 53% of global nickel supply.
US$1.0678/eur vs 1.0681/eur previous. Yen 147.94/$ vs 147.78/$. SAr 18.947/$ vs 18.991/$. $1.234/gbp vs $1.238/gbp. 0.646/aud vs 0.644/aud. CNY 7.299/$ vs 7.298/$.
Dollar Index 105.22 vs 105.16 previous.
Gold US$1,929/oz vs US$1,933/oz previous
Gold ETFs 88.9moz vs 89moz previous
Platinum US$940/oz vs US$937/oz previous
Palladium US$1,264/oz vs US$1,245/oz previous
Silver US$23.19/oz vs US$23/oz previous
Rhodium US$4,100/oz vs US$4,100/oz previous
Copper US$ 8,311/t vs US$8,285/t previous
Aluminium US$ 2,228/t vs US$2,206/t previous
Nickel US$ 19,940/t vs US$19,655/t previous
Zinc US$ 2,506/t vs US$2,518/t previous
Lead US$ 2,223/t vs US$2,231/t previous
Tin US$ 26,015/t vs US$25,500/t previous
Oil US$93.4/bbl vs US$94.9/bbl previous
- Crude oil prices pulled back on dollar strengthening ahead of a meeting by the Federal Reserve Oversight Committee even as the API reported a 5.25mb fall (vs -2.2mb exp) in US crude oil stocks w/w.
Natural Gas €38.100/MWh vs €34.450/MWh previous
Uranium UXC US$62.10/lb vs US$60.75/lb previous
Iron ore 62% Fe spot (cfr Tianjin) US$121.4/t vs US$121.8/t
Chinese steel rebar 25mm US$537.6/t vs US$536.7/t
Thermal coal (1st year forward cif ARA) US$130.0/t vs US$128.0/t
Thermal coal swap Australia FOB US$168.0/t vs US$167.5/t
Coking coal swap Australia FOB US$313.0/t vs US$313.0/t
Cobalt LME 3m US$33,420/t vs US$33,420/t
NdPr Rare Earth Oxide (China) US$71,924/t vs US$71,935/t
Lithium carbonate 99% (China) US$21,577/t vs US$22,128/t
China Spodumene Li2O 6%min CIF US$2,460/t vs US$2,490/t
Ferro-Manganese European Mn78% min US$1,036/t vs US$1,036/t
China Tungsten APT 88.5% FOB US$305/mtu vs US$305/mtu
China Graphite Flake -194 FOB US$645/t vs US$645/t
Europe Vanadium Pentoxide 98% 6.5/lb vs US$6.4/lb
Europe Ferro-Vanadium 80% 28.95/kg vs US$28.75/kg
China Ilmenite Concentrate TiO2 US$316/t vs US$316/t
Spot CO2 Emissions EUA Price US$87.4/t vs US$87.5/t
Brazil Potash CFR Granular Spot US$355.0/t vs US$355.0/t
Shell and BYD open world’s largest EV charging station with capacity to serve 3,300 EVs per day
- The large-scale EV charging station will be operated by Shell and BYD next to Shenzhen Airport, China.
- 258, 250kW fast-charging points are fed by the grid, as well as solar panels with an annual generation capacity of 300,000kWh
- Last year, the companies signed a strategic cooperation to accelerate energy transition and to improve the charging experience for both EV and Plug-in hybrid vehicles across China and Europe.
France to introduce new incentives for EVs to combat Chinese
- The French government will introduce a ‘green score’ for EVs that will enable subsidies of up to €7,000.
- Under the previous system, a flat subsidy of €5,000 was offered for all EVs, regardless of their production cycle or environmental characteristics.
- The cash incentives will be rolled out in France as of January 2024, aiming to support French and European car making industries in their competition with Chinese rivals.
- Chinese brands attained 8% of the EU’s EV market in 2022 with European Commission data showing it could increase to 15% by 2025.
- According to Ptolemus Consulting Group, Chinese EV prices in China dropped by around 50% between 2015 and 2022, from €67,000 to €32,000. European EV prices went up 17% in the same period, from just under €49,000 to over €55,000
Ford warns Sunak that pushing back petrol car ban is bad idea
- It comes after it was revealed that the PM is considering a major shift on key climate action policies, which could be announced on Friday.
- Ford has warned Rishi Sunak that pushing back a ban on sales of new petrol and diesel cars to 2035 would undermine business certainty.
- Lisa Brankin, Ford UK chair, said: “A relaxation of 2030 would undermine all three. We need the policy focus trained on bolstering the EV (electric vehicle) market in the short term and supporting consumers while headwinds are strong: infrastructure remains immature, tariffs loom and cost-of-living is high.”
- Home Secretary Suella Braveman warned against ‘arbitrary’ and ‘punitive’ targets as she refused to back the 2030 goal for no more new petrol or diesel cars being sold.
- It is believed that Sunak will keep committed to the governments plans for net zero by 2050.
Capital Limited (CAPD LN) 82p, Mkt cap £160m – New contract with Nevada Gold Mines
- Capital, the drilling contractor and mining services company, has signed a new contract with Nevada Gold Mines.
- The contract includes diamond and reverse circulation drilling both on surface an underground.
- Diamond drilling will be executed at the Cortex complex and Carlin complex with underground RC drilling at carlin.
- Nevada Gold Mines is held between Barrick and Newmont with 61.5% and 38.5% respectively.
- It operates the Carlin, Cortex and Turquoise Ridge gold mines.
- 9 rigs will be supplied to the group and will generate an annualised run rate of $35m from 2025.
- Capital will buy new rigs for CAPEX of $20m due in 2024.
- Work at Gabon with Ivindo Iron SA is proceeding for resource definition.
Cornish Metals* (CUSN LN) – 12.5p, Mkt cap £65m – Drilling underway at newly discovered zone south of the South Crofty mine
- Cornish Metals reports that it ha started a 9,000m programme of exploration drilling comprising holes to investigate the ‘Wide Formation’ target in the Carn Brea area south of the historic South Crofty mine where Cornish Metals aiming to complete a feasibility study on resuming production with the study expected to be complete by the end of 2024.
- The ‘Wide Formation’ which was discovered by an intersection of 2.77m at an average grade of 0.99% tin hole CB21-002 “within a 12.14m wide zone of strong alteration and disseminated tin mineralisation … [is described as] … a high-grade tin target inferred to lie parallel to, north of, and beneath the Great Flat Lode”.
- The new drilling programme is planned to test “an area measuring 2,500m along strike (northeast to southwest) and 500m downdip (north to south)”.
- The company has previously said that “The Great Flat Lode was extensively mined for tin in the 1800s in several mines over a 5km strike length and from depths ranging from surface to 680 metres below surface” and said that “No mining has ever been carried out on the Wide Formation”.
- CEO, Richard Williams, welcomed the start of the new drilling campaign saying that it “reflects the opportunity to make new discoveries close to the South Crofty underground infrastructure and, if the programme is successful, we believe there is potential to not only grow the Mineral Resource base, but also to potentially expand production rates if the project advances through to mine development”.
- The company recently announced an increased mineral resource of ~2.9mt of indicated resources at an average grade of 1.50% tin and an inferred resource of ~2.6mt at an average grade of 1.42% tin representing an increase in the ‘Indicated’ tin content of more than 30% and over 15% in the tin content of the ‘Inferred’ resource compared to the previous, June 2021, estimate.
Conclusion: We look forward to results from the new drilling campaign on the previously unmined mineralisation in the ‘Wide Formation’ where the discovery highlights the remaining exploration potential in an area with an extensive mining history.
*SP Angel acts as Nomad and Broker to Cornish Metals. An SP Angel analyst formerly worked in the South Crofty tin mine in the 1980s and holds shares in Cornish Metals.
Great Southern Copper (GSCU LN) 3.4p, Mkt Cap £8.2m – Agreement to acquire a lithium project in Chile
- Great Southern Copper has agreed a binding term sheet to acquire the 235km2 Monti Lithium project located in the prolific Salar de Atacama district in Chile.
- The company explains that the “Salar de Atacama is a Tier 1 lithium production salar with estimated pre-mine resources greater than 6.0 Mt Li1. Lithium is hosted in subterranean brine solutions which are pumped to the surface, where the lithium is extracted via evaporation processes producing a lithium carbonate (LiCO3) concentrate product”.
- Great Southern Copper has completed an initial US$10,000 payment to the vendors with “further annual cash and share payments over 3 years for a total consideration value of US$2.26m (£1.8m)”.
- The company will pay US$1.16m in cash over three years with a further US$1.1m in shares with US$50,000 in shares on the first and second anniversary and US$1m after 36 months.
- Chief Executive, Sam Garrett, explained that the “Monti Lithium Project delivers on the Company’s strategic objective to add a third project to its portfolio and further emphasises the Company’s enduring and important relationship with our in-country partners. Our partners ability to identify projects of significance is a great asset to GSC”.
- Great Southern Copper will initially “conduct due diligence on the project and prepare plans for its exploration programmes. Work will include reconnaissance field trips to undertake surface sampling and mapping programmes”.
Power Metal Resources* (POW LN) 0.78p, Mkt cap £16m – Strong helium anomaly at Perch River raises potential for uranium discovery
- Power Metal provides an update on its recently progress at the Perch River uranium prospect, where a strong helium anomaly has been noted.
- Following on from the anomaly discovery, POW has secured an additional 1514Ha, increasing the Project area by 38% to 5,455Ha.
- Several additional strong hyperspectral helium anomalies have been noted at the newly acquired ground.
- POW is now directing its Athabasca Basin focus to Perch River, with geochemical samples and fieldwork completed and assays due shortly.
- World-class uranium deposits, including Cameco’s Millenium deposit, also in the Athabasca Basin and the Beverely mine in South Australia showed helium enrichment before discovery.
- Uranium prices broke through the key $60/lb as the market supply continues to tighten as Niger concerns mount, Cameco guides down production and Kazatomprom struggles to meet guidance.
*SP Angel acts as Nomad and Broker for Power Metal Resources
Red Rock Resources (RRR LN) 0.28p, Mkt cap £4.2m – Zimbabwe lithium sample results
- Red Rock reports the results from four 2kg samples taken from two pegmatites at its African Lithium Resources project in Zimbabwe.
- The assays were sent to an ISO-accredited lab in Harare.
- Three samples were sent from the permitted area, showing Li2O of 4.36%, 0.4%, 4.35%.
- Another neighbouring pegmatite showed a result of 2.46% Li2O.
- Red Rock has sent the sample results to potential customers they are in discussion with, including contractors.
Rio Tinto (RIO LN) – 5,231, Mkt cap £6,763m – CEO warns of peak China steel demand as property boom stalls
- Jakob Stausholm stated yesterday that China’s consumption is believed to have peaked and 2024 demand expected to be in line with this year’s.
- China imported 106.4mt of iron ore last month, the highest since September 2020 and its third largest on record.
- BHP expects annual steel output to have peaked for the time being.
- Despite this, iron ore prices hold highs around $120/t, despite falling 1.5% today.
Savannah Resources* (SAV LN)3.6p, Mkt Cap £69m – Passing of Board member
BUY – 21.1p
- The Company announced the passing of Manohar Pundalik Shenoy, Non-Executive Director.
- Manohar joined the Board in 2016 as one of the nominees of Al Marjan, Company’s largest shareholder.
- The Board extended its sincerest condolences and sympathies to Mr Shenoy’s family and friends.
*SP Angel acts as Nomad and Broker to Savannah Resources
Shanta Gold (SHG LN) 10.6p, Mkt Cap £111m – Strong earnings driven by commissioned Singida and higher spot gold prices
- Revenues climbed to $88.3m ((H1/22: $51.9m) reflecting higher production and realised gold prices (44.8koz and $1,938/oz vs 28.9koz and $1,870/oz in H1/22).
- The Company is not running any gold hedging and is 100% exposed to spot gold prices.
- Stronger gold production was driven by higher output at NLGM and commissioning of Singida that poured first gold at the end of Q1/23.
- NLGM performance benefited from improved equipment availability, power reliability and consistent grades being mined from the Luika underground stopes.
- Singida contributed 10.1koz to total production during the period.
- EBITDA amounted to $33.9m (H1/22: $14.1m) on the back of higher gold prices, stronger sales and higher margin ounces contribution from Singida.
- PAT reported at $12.7m (H1/22: -$3.1mm).
- FCF came in at $9.4m (H1/22: -$8.7m) primarily reflecting stronger earnings during the period.
- Outstanding VAT receivable stands at ~$31m with $11m currently being audited by local authorities for further corporation tax offsets and $21m relating to accumulated balance from July 2017 to June 2020 that the Company is pursuing a settlement to recover.
- FY23 guidance reiterated at 90-98koz at $1,300-1,400/oz AISC including:
- NLGM for 66-72koz at $1,200-1,300/oz AISC (H1/23: 35koz at $1,293/oz);
- Singida for 24-26koz at $1,300-1,400/oz AISC (H1/23: 10koz at $825/oz).
- Closing cash balance stood at $14.9m (FY22: $3.8m) with net debt running at $17.7m (FY22: $23.6m).
- The Board recommended 0.1p interim dividend (~£1.1m cash outflow) with ex-dividend date set at 2 November.
Conclusion: Strong interim results are driven by higher production and realised gold prices with increased cash flow to help bring leverage down now that Singida is up and running. Both guidance and dividend policy reiterated reflecting management’s confidence in this year’s outlook.
Thor Energy (THR LN) 0.175p, Mkt Cap £3.7m – A$1m fund-raising to progress exploration in the Uravan belt of southwest Colorado
- Thor Energy reports that it has placed approximately 23.8m additional shares at a price of 4.2A¢ per share to raise A$1m for exploration of its wholly-owned uranium projects in the historic Uravan belt.
- Based on the company’s AIM Rule 26 disclosure, we estimate that the new shares represent approximately 1% of the enlarged company.
- The new funds will be used for a planned 4,000m programme of reverse-circulation drilling “at the Radium Mountain/Wedding Bell Project, Colorado followed by a maiden drilling campaign at Vanadium King Project, Utah”.
- Managing Director, Nicole Galloway-Warland, said that “The recent airborne magnetic survey defined several targets worthy of drill follow-up … [and that …] We are highly encouraged to receive the ongoing support from the Company’s existing shareholders and are also delighted to welcome new investors to our share register who recognise the significant potential of our USA uranium portfolio”.
Conclusion: In August, announcing that it had secured permits for its planned drilling, Thor Energy said that drilling was expected to start in September and the funding announced today keeps that plan on track.
Wishbone Gold* (WSBN LN) – 2.75p, Mkt Cap £5.9m – Drilling at the Red Setter project, WA
See link for recent note: CLICK FOR PDF
- Wishbone Gold reports that drilling has started at its Red Setter project in WA where, based on geophysical interpretation of magnetotelluric data, it is exploring for mineralisation analogous to that at the Telfer gold mine of Newcrest Mining located around 13km northeast of the project area.
- Initial targets are “at a relatively shallow depth (<500m), and adjacent to accessible locations which have been cleared by Aboriginal Heritage” and are expected to look for “broad spreads of mineralisation rather than single high grade bulls eyes”.
- Chairman, Richard Poulden, commented that the new drilling follows “last year’s successful drill program which confirmed a hyperthermal gold/copper system”.
- He also explained that the “analysis done in the meantime has added greatly to our knowledge of the system and provides additional targets on which to focus”.
Conclusion: We look forward to results from the Red Setter project as the exploration proceeds as well as to assay results from the recent drilling at the Cottesloe project.
*SP Angel acts as a Broker for Wishbone Gold
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
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
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
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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.
|Sources of commodity prices|
|Gold, Platinum, Palladium, Silver||BGNL (Bloomberg Generic Composite rate, London)|
|Gold ETFs, Steel||Bloomberg|
|Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt||LME|
|Natural Gas, Uranium, Iron Ore||NYMEX|
|Thermal Coal||Bloomberg OTC Composite|
|Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite||Asian Metal|
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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 of less than 15%
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