SP Angel Morning View -Today’s Market View, Wednesday 23rd April 2025

Gold hits $3,500oz before settling as Trump and Scott Besant soften tariff rhetoric

MiFID II exempt information – see disclaimer below

Aterian plc* (ATN LN) – Critical minerals trading in Rwanda to be supported with US$4.5m trade finance agreement

Capital DI(CAPD LN) – Results show revenue adjustment following end of Sukari contract

Cleantech Lithium (CTL LN) – Management to appeal rejection of special lithium operating contract application

Europa Metals Limited (EUZ LN) – Share sale realises ~£450,000

Focus Xplore – formerly Katoro Gold (FOX LN) – Board appointment and exploration update

Fresnillo (FRES LN) – Guidance maintained whilst silver production down on lower grade ore

Great Southern Copper (GSCU LN) – Next phase of drilling starts at Viuda, Chile

Great Western Mining* (GWMO LN) – Expansion of precious metals milling operation

Hochschild Mining (HOC LN) – Results show impact of heavy rain and contract mining issues at Mara Rosa

Metals Exploration (MTL LN) – Q1 results confirm progress at La India

Orosur Mining* (OMI LN) – Drilling to begin at North Pepas in the coming weeks

Gold hits $3,500oz before settling as Trump and Scott Besant soften tariff rhetoric

• Gold prices have softened slightly to $3,339/oz after rocketing to $3,500/oz yesterday.
• Gold is seen as a solid store of value amid the rise in tension between China and the US.
• Trump stated that tariffs on China will drop substantially, in sign of a potential U-turn on his hawkish position towards Beijing.
• Additionally, US treasury yields have fallen, as investors wade back into US government bonds following several weeks of deleveraging.
• Gold may also be weak on reduced concerns of Trump firing J Powell, rowing back his statements over the weekend that triggered a sharp jump in gold prices.
• Concerns over the Fed’s independence added further fuel to the gold rally, and Trump’s comments yesterday that he won’t sack Powell likely saw some unwinding of those positions.

Trump is refining his rhetoric and rolling back on Tariff demands

• We suspect this means Trump’s tariffs may settle at between 10-20% for many nations on most goods except for autos, steel, al, pharmaceuticals, and some others.
• But what if, China plays as if it is mortally offended and further restricts exports of critical materials and products?
• What if China fronts up to Trump and nobody offers to back down?
• Korean news sources indicate China is pressuring third countries to enforce Chinese restrictions on US sales with some Korean companies receiving letters from the Chinese government, warning of “retributions” if they exported any products to US military contractors which contained Chinese critical minerals (Guardian)..
• China may see Trump’s tariffs as an excuse to punish the US with further retaliatory measures before the tariff negotiations have even begun.
• Scott Bessent, US Treasury Secretary, said that the high tariffs were unsustainable and expects a “de-escalation” in the trade war between the world’s two largest economies.
• We like to think China is pragmatic, but the CCP has its own politics and an ambition to break the dominance of the US dollar.
• Chinese manufacturers are genius at working around regulations. They are well practiced at working around the CCP, so US tariffs should not be so difficult!

Economics

US – Markets climb on risk on sentiment after President Trump dialled down rhetoric against China and Fed Chair. (Bloomberg)

• Trump and Treasury Secretary Scott Bessent said that a standoff with China will ease.
• “145% is very high and it won’t be that high… it won’t be anywhere near that high… it’ll come down substantially… but it won’t be zero,” President Trump commented on Chinese tariffs outlook.
• Separately, President Trump said he had “no intention” on firing Fed Chair Jerome Powell but reiterated his complaints that the central bank should cut borrowing costs.
• Treasury yields pulled back and US stock futures are trading up this morning extending gains recorded on Tuesday.
• Base metal and oil prices are higher with gold off this morning.
• Preliminary PMIs are due later today and should indicate a change in economic growth outlook among manufacturers and services providers following US trade barriers announcements.

Japan

• Preliminary Manufacturing PMI (Apr/Mar/Est): 48.5/48.4/NA
• Preliminary Services PMI (Apr/Mar/Est): 52.2/50.0/NA
• Preliminary Composite PMI (Apr/Mar/Est): 51.1/48.9/NA

Eurozone – Private economic activity stagnated amid tariff uncertainty as two major regional economies (Germany and France) posted sub 50 readings in April.

• Business activity was hit by a faster drop in new orders and waning confidence in one year outlook.
• Business sentiment reached its lowest in almost two and a half year.
• Employment was flat with drops in Germany and France compensated by growth elsewhere.
• Inflationary pressures eased, with output prices climbing at a weaker pace, the slowest rate in five months.
• Services sector prices climbed at the weakest pace since last September.
• “The European Central Bank is getting some mild support for its rate-cutting stance from the price indicators in the services sector, which the monetary authorities are closely watching,” PMI report read.
• Preliminary Manufacturing PMI (Apr/Mar/Est): 48.7/48.6/47.4
• Preliminary Services PMI (Apr/Mar/Est): 49.7/51.0/50.5
• Preliminary Composite PMI (Apr/Mar/Est): 50.1/50.9/50.2

Germany – Private sector contracted for the first time in four months given its exposure to global trade.

• Concerns over US trade barriers seem to have outweighed plans of increased fiscal spending including higher defence budgets.
• Preliminary Manufacturing PMI (Apr/Mar/Est): 48.0/48.3/47.6
• Preliminary Services PMI (Apr/Mar/Est): 48.8/50.9/50.2
• Preliminary Composite PMI (Apr/Mar/Est): 49.7/51.3/50.5

France – Services sector recorded sharper declines in activity compared to manufacturing with private sector overall in a contraction territory for 11 months out of last 12.

• Preliminary Manufacturing PMI (Apr/Mar/Est): 48.2/48.5/47.9
• Preliminary Services PMI (Apr/Mar/Est): 46.8/47.9/47.6
• Preliminary Composite PMI (Apr/Mar/Est): 47.3/48.0/47.8

UK – Private sector contracted for the first time in one-and-a-half years with the economy hit by US tariffs as well as a hike in NI contributions and minimum wages.

• Increased tariffs and a drop in confidence among clients saw a export orders slumping at the fastest rate in five years.
• Employment contracted for seven months now with both sectors seen shedding staff amid increased costs.
• Increased inflation in both input and output prices reported.
• “Just as export orders are falling at the sharpest rate since May 2020, during the pandemic lockdowns, firms’ costs spiked higher to a degree not seen for over two years,” S&P Global commented on the data.
• ““April’s fall in output was the largest recorded for nearly two and a half years, consistent with GDP declining at a quarterly rate of 0.3%.”
• Preliminary Manufacturing PMI (Apr/Mar/Est): 44.0/44.9/44.0
• Preliminary Services PMI (Apr/Mar/Est): 48.9/52.5/51.5
• Preliminary Composite PMI (Apr/Mar/Est): 48.2/51.5/50.4

Ukraine/Russia – The US offered a “very explicit proposal” for a peace deal urging Ukraine and Russia to “say yes or for the United States to walk away from this process”, JD Vance said.

• Allegedly, the deal involves stopping military operations at current front lines, a recognition of Crimea by the US and potential ease of sanctions on Moscow, Bloomberg reports.
• “There’s going to have to be some territorial swaps,” Vance said, adding that while the border may not wind up as the exact front lines as they stand now.
• President Zelensky said that Ukraine will not recognise the Russian occupation of Crimea
• US Secretary of State Marco Rubio cancelled his flight to London this week for peace deal negotiations with Ukraine and EU top officials with other major allies pulling their representatives.

Currencies

US$1.1399/eur vs 1.1506/eur previous. Yen 141.76/$ vs 140.30/$. SAr 18.576/$ vs 18.661/$. $1.332/gbp vs $1.340/gbp. 0.641/aud v 0.642/aud. CNY 7.296/$ vs 7.312/$.

Dollar Index 99.068 vs 98.344 previous.

Precious metals:         

Gold US$3,314/oz vs US$3,469/oz previous

Gold ETFs 89.4moz vs 89.5moz previous

Platinum US$967/oz vs US$973/oz previous

Palladium US$941/oz vs US$945/oz previous

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

Rhodium US$5,375/oz vs US$5,400/oz previous

Base metals:   

Copper US$9,420/t vs US$9,299/t previous

Aluminium US$2,411/t vs US$2,374/t previous

Nickel US$15,815/t vs US$15,660/t previous

Zinc US$2,625/t vs US$2,582/t previous

Lead US$1,927/t vs US$1,931/t previous

Tin US$31,210/t vs US$31,125/t previous

Energy:           

Oil US$68.5/bbl vs US$66.9/bbl previous

• Crude oil prices edged higher on the threat of further Iranian sanctions and as the API estimated a 4.6mb/d w/w draw to US crude inventories, compounded by draws of 2.2mb to gasoline and 1.6mb to distillate stocks.
• European energy prices recovered from touching 9M lows last week to stabilise at an equivalent $65/bbl Brent oil price level, as France’s nuclear generation fell 1% w/w to 70% of the country’s 61.4GW maximum capacity.

Natural Gas €34.9/MWh vs €35.5/MWh previous

Uranium Futures $65.5/lb vs $65.2/lb previous

Bulk:   

Iron Ore 62% Fe Spot (China CFR) US$100.2/t vs US$99.8/t

Chinese steel rebar 25mm US$463.4/t vs US$444.1/t

HCC FOB Australia US$185.5/t vs US$180.0/t

Thermal coal swap Australia FOB US$94.0/t vs US$96.8/t

Other:  

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

NdPr Rare Earth Oxide (China) US$56,683/t vs US$56,897/t

Lithium carbonate 99% (China) US$9,258/t vs US$9,300/t

China Spodumene Li2O 6%min CIF US$800/t vs US$800/t

Ferro-Manganese European Mn78% min US$995/t vs US$995/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$24.2/kg vs US$24.2/kg

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

Global Rutile Spot Concentrate 95% TiO2 US$1,513/t vs US$1,513/t

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

Brazil Potash CFR Granular Spot US$355.0/t vs US$355.0/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

BYD to overhaul European operations as sales disappoint

• Chinese EV maker BYD, is overhauling its European operations after strategic missteps have led to disappointing sales figures.
• The automaker failed to sign up enough dealers and hire executives with region specific knowledge.
• The shortcomings led to the company only recording 57,000 sales in 2024, a 2.8% share of the market, well below company expectations of 5.0%.
• BYD are moving quickly to address this, expanding its dealer network and changing sales strategy to push plug-in hybrid vehicles in a European market that is shying away from EVs.
• There are early signs that BYD’s decision is working – European sales, have more than tripled in the first quarter of 2025 to more than 37,000 vehicles, compared to about 8,500 in Q1 2024.

Company News

Aterian plc* (ATN LN) 41p, Mkt Cap £4.9m – Critical minerals trading in Rwanda to be supported with US$4.5m trade finance agreement

(Rio Tinto jv has the option to invest US$7.5m in two stages to earn up to 75% in the HCK lithium and tantalum hard rock prospect in Rwanda)

(Rwanda: Aterian holds an effective 100% stake in the Musasa Mining Licenses plus a 70% interest in Kinunga Mining Limited which holds the HCK licence alongside HCK Mining Company Limited which has a 30% interest.)

(Botswana: Aterian also holds a 90% in Atlantis Metals which holds its licenses in Botswana). (Morocco: Aterian holds 100% on all licenses held in Morocco)

• Aterian Plc reports it has signed a trade finance agreement with a global commodity trading and financial house
• The agreement should help the company’s strategic vision to build a scalable, revenue-generating platform supporting its exploration and development activities across Africa.
• The USD 4.5m facility should help transform Aterian into a trading entity from a pure exploration company
• Revenues from future trading activities should also help grow the business.
• Trading:
  • “Agreement enables the immediate funding of tantalum, niobium, and cassiterite consignments and positions Aterian to benefit from commodity sales while leveraging minimal upfront capital.”
• Aterian see their jv with Rio Tinto in Rwanda combined with this Agreement as significantly strengthens their potential for our platform for longer-term success.
• The US$4.5m operational trading facility will “provide funding of the traded minerals and will be utilised immediately to fund the additional trading of tantalum, niobium, and cassiterite.”
• The five-year facility has an interest rate of 1-month SOFR “Secured Overnight Financing Rate” + 3.5%.
• Aterian previously reported that it had restarted mineral trading in Rwanda following a temporary suspension pending implementation of the Inkomane trading system by Rwanda’s Mines, Petroleum and Gas Board (RMB).
• HCK project drilling (Rwanda):  1180m of diamond core drilling in four drill holes. Assay results now being received and analysed by Rio Tinto.

Conclusion:  It’s good to see Aterian restart trading for tantalum, niobium, and cassiterite in Rwanda with the support of the new US$4.5m facility.

Management also expect the Rio Tinto jv to show results in the short-term including potential for tin, tantalum, and niobium discovery.

*SP Angel acts as Broker to Aterian Plc

Capital DI (CAPD LN) 70p, Mkt Cap £139m – Results show revenue adjustment following end of Sukari contract

• Drilling contractor Capital report financial results.
• Company generated $72m in revenue over the quarter, down 8.3%yoy and 10.5%qoq.
• Mining revenue fell 94%qoq to $0.6m, whilst drilling revenue fell 8.3%qoq to $58m.
• MSALABS revenue rose 9%qoq and 38%yoy to $13.5m.
• Company notes revenue in line with expectations following the conclusion of mining at Sukari and Belinga.
• They maintain their revenue guidance of $300-320m for 2025.
• Company reports revenue generation on the Reko Diq contract has now commenced.

Cleantech Lithium (CTL LN) 7.75p, Mkt Cap £8.4m – Management to appeal rejection of special lithium operating contract application

• CleanTech Lithium reports its Company’s CEOL ‘Special Lithium Operating Contract’ application under the simplified procedure for the Laguna Verde project has been rejected and has not been admitted into the streamlined process that provides for direct negotiation but should enter a short public tender process.
• Management will appeal in accordance with a procedure set out in the Ministry’s resolution document and believe they can meet the criteria.
• Acquiring a CEOL gives the applicant the right to commercially produce lithium.
• CleanTech raised £2.4m on 11 February through a placing of 15m new shares at 16p.

Conclusion: While this is not ideal news we do view Cleantech as offering one of the better prospects for DLE or potentially hybrid-DLE lithium extraction in Chile.

Europa Metals Limited (EUZ LN) 1.15p, Mkt Cap £0.9m – Share sale realises ~£450,000

• Europa Metals reports that it has sold part of its shareholding in Denarius Metals realising ~ C$827,000 (£450,000) for “creditor payments, working capital, and towards assessing opportunities”.
• The company acquired its holding in Denarius Metals on the November 2024 sale of its Toral zinc / lead /silver project in the Spanish region of Castilla y Leon and still retains a total of 5.5m Denarius shares.
• In February 2025, the company abandoned its proposed acquisition of the Tynagh lead/zinc/copper/silver project in Ireland citing “market conditions … [which made] … finding the near term funding … very difficult in Europe”.
• Today’s announcement says that “Over the coming weeks, management are considering the options for the Company to deliver the best possible outcome for all shareholders and will update the market in due course”.

Conclusion: We await news of the future direction of Europa Metals

Focus Xplore – formerly Katoro Gold (FOX LN) 0.04p, Mkt Cap £0.8m – Board appointment and exploration update

• Focus Xplore has appointed the COO of Power Metal Resources*, James Tosh, as a non-executive director.
• Welcoming the appointment, CEO, Patrick Cullen, said that “I have had a very positive experience while working closely with Jamie during the acquisition of the Company’s Ontario exploration portfolio and look forward to his input going forward”.
• In an announcement released yesterday, Focus Xplore reported the appointment of a “full-service mineral exploration consulting group”, Fladgate Consulting “to complete the initial phase of exploration activities, including mapping and sampling, at the Company’s Iva, Ellie and Oba lithium projects and at its Bay Road rare earth element project”.
• Fladgate Consulting is “based in Thunder Bay, just 170 kilometres east of the Iva Lithium Project, which is likely to be among the first projects we gain access to as the snow melts”.

Conclusion: The appointment of a locally based specialist exploration consultancy for initial mapping and sampling should give Focus Xplore a rapid start to field exploration as soon as the summer field season starts. We look forward to news of progress.

*SP Angel acts as Nomad and Broker for Power Metal Resources

Fresnillo (FRES LN) 971p, Mkt Cap £7.2bn – Guidance maintained whilst silver production down on lower grade ore

• Fresnillo reports first quarter production results, with silver at 11.9koz and gold at 156koz.
• Silver production fell 10%qoq and 9.4%yoy whilst gold production fell 24%qoq and rose 11%yoy.
• Company maintains previous guidance of 91-102moz AgEq for 2025, including 525-580koz Au.
• Silver production fell due to lower ore grade and volume at Saucito, lower volume at San Julian veins and cessation of mining at San Julian DOB.
• Gold production fell on the quarter due to lower ore grades and volumes processed at Herradura, Sautio, Fresnillo and Cienega.

Great Southern Copper (GSCU LN) 3.85p, Mkt Cap £21m – Next phase of drilling starts at Viuda, Chile

• Following its announcement, earlier this month, of encouraging results from reverse-circulation (RC) scout drilling at its Viuda prospect in Chile, Great Southern Copper reports that it has now started diamond drilling.
• The initial programme comprises “2 – 4 scout holes for a total of up to 500m … targeting outcropping porphyry-epithermal style alteration with rock chip samples assaying up to 4.2g/t Au, 45g/t Ag and 0.56% Cu”.
• “Hole VNE25-DD001 is currently at 70m depth and testing sheeted, Maricunga style quartz-magnetite vein alteration at Cruachan Ridge where channel sampling has returned assay grades up to 4.2g/t Au and 0.12% Cu”.
• Welcoming the new drilling CEO, Sam Garrett, said that the “Viuda and Viuda Negra targets emphasise the exciting depth of the Especularita drilling pipe-line which is further enhanced by the current environment of record gold and silver prices”.
• 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 today’s announcement confirms that the company “holds options to own 100% of the Viuda and Viuda Negra prospect”.

Conclusion: Great Southern Copper has moved quickly to follow up the success of RC scout drilling at Viuda which identified signs of porphyry style mineralisation and encouragement that a large-scale target may be present with a limited diamond drilling programme. We await further news with interest.

Great Western Mining* (GWMO LN) 1.83p, Mkt Cap £1.1m – Expansion of precious metals milling operation

• Great Western Mining, provide an update on their precious metal processing mill in Nevada.
• They report that construction of the Western Milling processing plant is now substantially complete with all key environmental permits received.
• The State Inspector has given the green light to start trial production.
• Great Western today reports that they intend to expand the mill’s processing capacity owing to the higher gold price environment and increasing local interest from third parties.
• Management note that this will require some non-party financing and early-stage discussions have begun with two engineering houses who have submitted proposals to ramp up operations.

Conclusion: Great Western is looking to take advantage of the high gold price environment by scaling up their precious metal milling operation, which has now received all key permits to begin production. This will involve third party financing and a specialist team, enabling the company to continue progressing their copper porphyry exploration in the Huntoon valley.

*SP Angel act as Broker to Great Western Mining, an SP Angel Analyst has visited Great Western’s Nevada claim blocks.

Hochschild Mining (HOC LN) 270p, Mkt Cap £1.4bn – Results show impact of heavy rain and contract mining issues at Mara Rosa

• Hochschild produced 91koz AuEq over the quarter, down from 117koz prior quarter and up from 83koz same period last year.
• Company reiterates 2025 production target of 350-378koz AuEq at AISC of $1,587-1,687/oz.
• Company reports lower production in the quarter reflects lower-than-expected contribution from the Mara Rosa mine in Brazil.
• Immaculada came in line with expectations, producing 52koz AuEq vs 53koz AuEq last quarter and 55koz AuEq same period last year.
• Mara Rosa saw 584kt ore processed at an average grade of 0.89g/t Au and 2g/t Ag (1.42g/t and 11g/t respectively previous quarter)
• Mara Rosa produced 16koz AuEq vs 26koz AuEq in 4Q24.
• Heavy rainfall hit access hit access to ore and the higher-grade zones within the pit, also weighing on waste removal.
• Hochschild also note the mine has experienced ‘continued performance issues with the mining contractor as well as increased turnover in personnel.’
• As a result of weak production, Management has initiated a programme to boost throughput, expand the scale of mining and increase expanding their waste removal fleet.
• Company expects Mara Rosa production to improve in 2H25. Company reports US$83m in cash as of 31^st March 2025 and net debt of US$248m.

Metals Exploration (MTL LN) 7.05p, Mkt Cap £200m – Q1 results confirm progress at La India

• In its quarterly report for the 3 months to 31st March, Metals Exploration reports the production of 20,992oz of gold (Q1 – 23,006oz) from the processing of 537kt of ore at an average grade of 1.34g/t (Q1 2024 – 581kt averaging 1.37g/t) at the Runruno mine in the Philippines.Q1
• Production was achieved at an average cash cost of US$875/oz of the 18,219oz of gold sold and a cost of US$1,303/oz on an all-in-sustaining cost basis (Q1 2024 – cash cost US$791/oz and US$1,051/oz AISC).
• Gold sales generated revenue of US$48.4m (Q1 2024 – US$47.5m) and delivered US$23.5m of free cash flow (Q1 2024 – US$22.5m).
• Closing cash amounted to US$20.7m.
• Breaking a laudable run of “over 26 million hours worked without a lost time injury, the Company suffered its first lost time injury since December 2016 on 30 March 2025”.
• Confirming that the “safety of our employees is our number one priority”, CEO, Darren Bowden, explained that the injured employee is “undergoing medical care in Manilla. We are investigating how this incident occurred and will support him during his recovery”.
• Today’s announcement also confirms the appointment of Steven Smith as Chairman following the resignation of the previous incumbent, Nick von Schirnding, on 20th March.
• Today’s announcement also takes the opportunity to describe progress on the La India gold project in Nicaragua acquired from Condor Gold in January and where “a ‘ground-breaking’ ceremony at La India expected to be held in early May 2025”.
• In addition to recruiting “key Spanish speaking executives to join the Nicaraguan in-country management team” Metals Exploration has also appointed “GRES Engineering of Brisbane, Australia as the La India project engineers who have commenced the detailed design for construction of the La India project … [as well as appointing the] … Tierra Group to design and construct the La India tailings facility”.
• Metals Exploration is also reviewing the current mineral resource and reserve estimates and designing a “gold resource extension and verification drill programme …which is expected to commence in May”.
• Condor Gold’s resource estimate for La India reported 9.7mt at 3.5g/t Au Indicated and 8.6mt at 4.3g/t Au inferred for an overall resource of 2.3moz, whilst its Rio Luna and Estrella targets were regarded as underexplored with minimal drilling.
• Metals Exploration has also acquired a “second hand gold ore processing and concentrating plant (including crushers, conveyors, grinding ball mill, gravity circuit, elution, smelting equipment and laboratory, and all component and construction drawings) … [which] … is being shipped to site from North America and is scheduled to land in Nicaragua in Q3 2025”.

Conclusion: A ‘ground breaking’ ceremony is planned at La India in May with a second-hand plant expected to be delivered during Q3.  We await more detailed news on Metal’s Exploration’s plans for the project development and of its review of the mineral resources estimates with interest.

Orosur Mining* (OMI LN) 12p, Mkt Cap £40m – Drilling to begin at North Pepas in the coming weeks

• Orosur reports drill results and sampling at their Colombian gold project, Pepas.
• The Company has to date identified a high-grade zone at Pepas, which has seen the bulk of drilling to better understand the litho-structural controls.
• Today Orosur reports five holes.
• PEP028 (31m at 1.61g/t Au from 30m) was a scissor hole at the northern end of the central core, intended as a scissor hole to PEP015 to better understand the Tesorito South fault, confirming previous drilling.
• Holes PEP029 and PEP030 (31m at 0.31g/t Au from surface and 78m at 0.31g/t Au from surface) were drilled from the same pad c.150m to the northeast of the central zone.
• The company believes holes 29 and 30 may ‘suggest the potential for a large, reasonably consistent low-grade halo of c.0.3g/t Au around a higher-grade core.’
• Holes PEP031B was redrilled in the SE to test the downdip extension of a silicified outcrop and returned 13m at 0.73g/t Au from 28m
• Hole PEP032 was drilled at a different angle to the south, intended for infill drilling.

North Pepas

• Orosur is getting increasingly excited about the prospectivity of North Pepas, following the 105m channel sample at 1.15g/t Au.
• They have subsequently conducted channel sampling over fresh rock exposure, which returned 49m at 2.6g/t Au, up to 10m of 6.9g/t Au to the east of the previous channel sample.
• Current focus is on identifying additional exposures to the west and north.
• Orosur has negotiated land access and developed physical access for drilling machinery, expecting drilling to begin at North Pepas in the next few weeks.
• Geophysics surveys have been flown over Pepas to support drill target delineation.
• The first hole at Pepas is intended to test depth extensions of the widespread channel samples above.

El Cedro

• Additionally, Orosur holds the El Cedro prospect to the south on the same licence, previously held by Anglo American for gold/copper porphyry exploration.
• Company is now 25% complete on a sampling programme to begin generating drill targets.
• Orosur is targeting a ring-type structure at El Cedro.

Conclusion: Orosur is currently well-funded to progress the Pepas project, having drilled out the high-grade zone. We are particularly excited about the North Pepas zone, where extensive gold mineralisation has now been identified in channel sampling, both over wide intervals and at high grade. Drilling is now set to begin in the coming weeks, and we look forward with interest to initial assay results.

*SP Angel acts as Nomad and Broker to Orosur Mining

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

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