Zinc hits a four-year high as LME stocks keep falling
MiFID II exempt information – see disclaimer below
Beowulf Mining* (BEM LN) – H1 results looks ahead to completion of the financing and progression of the projects
Caledonia Mining (CMCL LN) – Blanke MRE update (+22% M&I) and maiden Motapa estimate (0.5moz)
Power Metal Resources* (POW LN) – Tuscan funded drilling programme starts at the Tati Gold Project
Serval Resources* (SRVL LN) – Maiden interims highlight KCL with exploration work ongoing ahead of first drilling before YE in Namibia
Zinc ($3,933/t) – Zinc hits a four-year high as LME stocks keep falling
- Zinc closed at $4,107/t Thursday, its highest since June 2022.
- LME stocks have fallen 64% to ~95,000t since December 2024 (Fastmarkets).
- The tightness is concentrated in Western warehouses, while Shanghai stocks have risen.
- Boliden is buying 65% of Nexa Resources for $1.31bn in new shares, valuing Nexa at ~$2.03bn.
- Nexa runs three mines in Peru and two in Brazil, plus three smelters, and accounts for ~4% of world zinc production.
Copper ($14,321/t) – Copper holds near its record with stocks still falling
- Shanghai stocks stand at 31,462t, down from a peak above 300,000t earlier this year (Bloomberg).
- Canada will charge a 50% tax on US copper wire from 8 September, part of a package covering ~$20bn of US goods.
- Chile and Argentina agreed rules Thursday for three copper projects that straddle their border.
- The three are Vicuña, NexoAndino and Filo Sur, worth >$20.7bn according to Chile’s deputy mining minister.
- Japan’s Sumitomo took 12.5% of the Dos Amigos copper project in northern Chile, through Tintina Mines.
- It put ~C$48m into Tintina’s C$91m placement, funding full ownership of the project and the work to a 2030 build decision.
- A February study set out a 25-year open pit producing 37,000tpa of copper and 57,000ozpa of gold, for $1.28bn of capex.
| Dow Jones Industrials | +0.20% | at | 53,569 | |
| Nikkei 225 | +0.41% | at | 66,406 | |
| HK Hang Seng | +0.06% | at | 25,582 | |
| Shanghai Composite | -0.11% | at | 3,952 | |
| US 10 Year Yield (bp change) | -0.4 | at | 4.67 |
Currencies
US$1.1645/eur vs 1.1652/eur previous. Yen 159.45/$ vs 159.34/$. SAr 15.970/$ vs 15.953/$. $1.359/gbp vs $1.359/gbp. 0.720/aud vs 0.718/aud. CNY 6.721/$ vs 6.721/$.
Dollar Index 99.20 vs 99.14 previous.
Economics
US – Jackson Hole speech by Fed Chair is due later today with the focus on inflation related comments and potential rates outlook.
- Warsh previously highlighted his preference to provide less market forward guidance favouring a hands-off approach regarding policy outlook.
- This is in contrast to latest Treasury Secretary Bessent latest communication regarding a proposed yield curve control efforts.
- The US$ index little changed this morning trading just over 99.
- The index is still down on the month of August.
- Rates on longer dated US debt also rangebound ahead of the speech with 10y and 30y yields at ~4.7% and #5.2%.
A number of Fed officials expressed concerns over strong US inflation.
- Kansas City Fed President Jeffrey Schmid (non voting member) said that inflation is “still stubborn and it’s still sticky and we’ve got to continue to find ways to break through”.
- “I don’t know what we’re restricting currently with the rate policy that we’re at today,” Schmid said.
- Cleveland Fed President Beth Hammack (voting member), also speaking on CNBC, was similarly anxious about inflation.
- “I don’t want to prejudge anything,” Hammack said, “but I believe now is the time to act.”
- Hammack was one of three member who voted for a hike at the last meeting including Neel Kashkari (Minneapolis) and Lorie Logan (Dallas).
- Markets are pricing in a ~35% chance of a hike in September.
Brent prices level at ~$88 as President Trump played down chances of a new MOU with Iran.
President Trump to meet with US refiners and fuel retails next week amid rising gasoline prices.
- The administration is looking at ways to ease pressure on consumers ahead of November mid term elections.
- Trump approval ratings fell to 33% with just 31% of Americans approving the US/Iran war.
Japan – The currency weakened lightly further giving up its intervention driven gains.
- Although, the currency still remains up 1.3% on the month.
- The yen trades at 159.6 this morning.
Precious metals:
Gold US$4,610/oz vs US$4,600/oz previous
Gold ETFs 98.9moz vs 98.9moz previous
Platinum US$1,877/oz vs US$1,831/oz previous
Palladium US$1,376/oz vs US$1,329/oz previous
Silver US$70.8/oz vs US$68.6/oz previous
Silver ETFs 801.2moz vs 801.2moz previous
Rhodium US$8,850/oz vs US$8,775/oz previous
Base metals:
Copper US$14,321/t vs US$14,215/t previous
Aluminium US$3,233/t vs US$3,209/t previous
Nickel US$16,880/t vs US$16,870/t previous
Zinc US$3,933/t vs US$3,851/t previous
Lead US$1,913/t vs US$1,902/t previous
Tin US$55,425/t vs US$54,765/t previous
Energy:
Oil US$89.0/bbl vs US$86.5/bbl previous
- Crude oil prices remain elevated as the conflict between Iran and the US passes six months in duration, with no clear path to a reopening of the Strait of Hormuz.
- US Henry Hub natural gas prices were flat after the EIA reported a 15bcf w/w storage build to 3,184bcf, with US inventories 1% lower y/y and 6% above the five-year average, as LNG export capacity fell 12bcf w/w to 117bcf.
- Rockhopper has completed the largest UK oil and gas equity placing by a UK-listed E&P in the last five years, with $180m raised via an accelerated bookbuild to fund the Company’s participation in the acquisition of its pro-rata share of the OSX-1 FPSO and associated work for the accelerated development of the Sea Lion central development area.
Natural Gas €68.8/MWh vs €65.5/MWh previous
Uranium Futures $90.4/lb vs $90.5/lb previous
Bulk:
Iron Ore 62% Fe Spot (Singapore) US$98.5/t vs US$97.9/t
Chinese steel rebar 25mm US$463.3/t vs US$463.1/t
HCC FOB Australia US$238.5/t vs US$238.5/t
Thermal coal swap Australia FOB US$137.8/t vs US$137.8/t
Other:
Cobalt LME 3m US$56,290/t vs US$56,290/t
NdPr Rare Earth Oxide (China) US$109,139/t vs US$108,993/t
Lithium Carbonate 99% (China) US$22,393/t vs US$22,245/t
China Spodumene Li2O 6%min CIF US$2,185/t vs US$2,185/t
Ferro-Manganese European Mn78% min US$1,040/t vs US$1,040/t
Tungsten APT (China) 88.5% FOB US$1,835/mtu vs US$1,835/mtu
Tungsten APT (Europe) 88.5% Rotterdam US$3,075/mtu vs US$3,075/mtu
China Tantalum Concentrate 30% CIF US$228/lb vs US$228/mtu
China Graphite Flake -194 FOB US$390/t vs US$390/t
Europe Vanadium Pentoxide 98% US$5.3/lb vs US$5.3/lb
Europe Ferro-Vanadium 80% US$25.1/kg vs US$25.1/kg
China Ilmenite Concentrate TiO2 US$203/t vs US$203/t
US Titanium Dioxide TiO2 >98% US$2,806/t vs US$2,806/t
China Rutile Concentrate 95% TiO2 US$1,168/t vs US$1,168/t
Brazil Potash CFR Granular Spot US$385.0/t vs US$385.0/t
Germanium China 99.99% US$4,225.0/kg vs US$4,225.0/kg
China Gallium 99.99% US$440.0/kg vs US$440.0/kg
Europe Molybdenum Oxide 57% US$33.5/lb vs US$33.5/lb
EV & Battery news:
Company news:
Beowulf Mining* (BEM LN) 11.9p, Mkt Cap £7.7m – H1 results looks ahead to completion of the financing and progression of the projects
BUY – 27p
- Announcing its unaudited results for the six months to 30th June, Beowulf Mining reports lower pre-tax losses of £0.83m (H1 2025 loss of £1.03m) and a closing cash balance of £0.21m.
- The reduced losses are attributed to “professional fees of £82,276 (Q2 2025: £212,613), directors and staff costs of £69,235 (Q2 2025: £100,366), legal fees of £nil (Q2 2025: £18,563), and a foreign currency loss of £11,636 (Q2 2025: loss of £44,426)”.
- The company highlights a £3.7m strategic investment from Bacchus Capital, which forms “part of a broader Financing for a total of £4.3 million” which was announced in June, and “is expected to complete during September 2026”.
- “Completion of the Financing remains subject to FDI approval in Sweden … [and] …. approval is expected by on or around 11 September 2026”.
- Chief Executive, Ed Bowie, described the strategic investment from Bacchus Capital as “transformational for Beowulf … [leaving it] … fully funded to advance its assets through to the end of 2027”.
- He said that the “final Swedish FDI approval is anticipated within the coming month and will enable us to close the Financing and make additional progress at our flagship assets”.
- Describing operational progress during the first half of 2026, Beowulf Mining has “continued to progress technical and environmental workstreams for the Kallak Iron Ore Project” in Sweden and published its “vision, principles and approach to managing specific environmental and social impacts relating to the Kallak project”, as well as progressing technical work on the project.
- Since 30th June, the company has completed a 7-hole, 1,072m drilling programme at Kallak to upgrade “near surface Inferred resource into higher confidence Measured and Indicated categories for inclusion in a future Mineral Resource Estimate and ultimately the Pre-Feasibility Study”.
- Mr. Bowie expressed confidence that “the infill drilling campaign at Kallak provides us with positive momentum going into the second half of the year”.
- In Finland, Beowulf’s local subsidiary “updated local stakeholders on activity at the Aitolampi and Rääpysjärvi projects and in particular on a mining and processing study completed for the Aitolampi … [graphite] … project” where preliminary technical studies indicate an open-pit mine production scenario of 700ktpa of ore production is expected to produce 35.7ktpa of graphite concentrate at 95% TGC.
- Aitolampi is expected to adopt a simple flowsheet of crushing, grinding and flotation and mineralisation is considered likely to extend beyond the current conceptual open pit to extend mine life and support production expansion.
- In Kosovo, the company’s local subsidiary, Vardar Minerals, which holds “a number of exploration licences under application … remained subject to a non-binding offer for its acquisition for €4 million”.
Conclusion: Swedish regulatory approval, which is expected during September, will allow completion of Beowulf Mining’s funding and clear the way to progress the Scandinavian projects.
*SP Angel act as Nomad and Broker to Beowulf Mining
Caledonia Mining (CMCL LN) 1,870p, Mkt Cap £493m – Blanke MRE update (+22% M&I) and maiden Motapa estimate (0.5moz)
- Zimbabwean gold producer Caledonia Mining reports two resource updates, at Blanket and Motapa.
- Underground Blanket MRE:
- M&I 17.7mt at 3.83g/t for 2.2moz (+22% in situ gold on December 2023)
- Tonnes up 16% and grade up 5%, with measured ounces alone up 48%
- Inferred 6.9mt at 3.35g/t for 0.7moz (-30%)
- 1.5g/t COG, $3,000/oz gold price
- $3.7m of deep drilling over six years added 1.3moz M&I, implying a discovery cost of just $2.9/oz
- A study on mining below the current 1,100m is due late 2026
- Mineralisation is found to continue at depth at improving grades and widths offering the potential to extend the Blanket LOM.
- Surface Blanket MRE:
- M&I 1.3mt at 0.76g/t for 30koz (including 22koz in oxide/transitional)
- Inferred 0.5mt at 0.89g/t for 14koz
- Heap leach tests on the oxide return recoveries up to 67%
- A trial pad and a 10,000t sample come next, with environmental in application stage
- Caledonia says oxide mining could start in 1H27 at 40,000tpm
- Maiden Motapa MRE:
- M&I 7.8mt at 1.51g/t for 379koz
- Inferred 2.7mt at 1.48g/t for 131koz
- The MRE excludes the 2026 campaign, running at North and now started at Central and South
- CEO Mark Learmonth commented: “the combined Bilboes and Motapa properties may ultimately support a larger operation.“
Power Metal Resources* (POW LN) 12.6p, Mkt Cap £14m – Tuscan funded drilling programme starts at the Tati Gold Project
- The Company updates on exploration programme at the 100% owned Tati Gold Project in Botswana.
- On-site works start following the previously announced approval of the Environmental Management Plan and signing of the access agreement covering Cherished Hope.
- The initial phase comprises RAB drilling below the base of oxidation to preclude supergene enrichment effects on results.
- Subsequent phases will drill down-dip to establish geometry and continuity, then along strike to test the lateral extent of mineralisation.
- Results will feed into a desktop feasibility study assessing small-scale mining potential at Cherished Hope.
- The programme is funded and managed by Tuscan Holding at no cost to the Company under the earn in agreement signed June 2024.
- Tuscan can earn a 75% interest in PL049/2022 by completing the feasibility study and financing construction of a processing plant.
- Power Metal retains a 25% interest free-carried to production, plus 100% of all other licences within Tati.
Conclusion: On-site exploration starts at the Tati Gold Project (Botswana) after necessary approvals were secured with the programme managed and funded by Tuscan Holding under the earn in agreement in place. Power is free carried to production potentially retaining a 25% stake in the project.
*SP Angel acts as Nomad and Broker for Power Metal Resources
Serval Resources* (SRVL LN) 21p, Mkt Cap £7m – Maiden interims highlight KCL with exploration work ongoing ahead of first drilling before YE in Namibia
- The Company reports 1H26 interim results for the period ended 31 May 2026.
- Kalahari Copper Limited acquisition and AIM re-admission completed in April.
- The KCL deal secured landholding in the Kaoko Basin (Namibia) and the Kalahari Copper Belt (Botswana).
- Serval also retains the Duekoue IOCG/porphyry project in Cotte d’Ivoire via an earn-in and JV with La Minière de L’Elephant SARL.
- H2 2026 plans include geological mapping, geophysics and soil sampling, ahead of a first drilling programme in Namibia targeted before year-end.
- The team plans to issue an update on the progress across the portfolio in September.
- PAT -£2.1m (1H25: -£0.2m) reflecting acquisition and listing related costs.
- Closing cash balance £2.4m following a ~£3m equity raise during the period; investments ~£0.6m held in Pulsar Helium and Quantum Hydrogen shares; ~£1.7m in non-current deferred consideration liability related to the KCL acquisition.
Conclusion: Maiden interims highlight completion of KCL acquisition and AIM re-admission with ~£3m in cash and investments to fund exploration work ahead of a drilling programme at the Kaoko Basin, Namibia.
*SP Angel acts as Nomad and Broker to Serval Resources
| Overnight Change | Weekly Change | Overnight Change | Weekly Change | ||
| BHP | 1.4% | 3.3% | Freeport-McMoRan | -0.7% | 10.1% |
| Rio Tinto | -0.4% | 1.5% | Vale | 1.0% | 7.6% |
| Glencore | 0.6% | 0.3% | Newmont Mining | 0.5% | 3.6% |
| Anglo American | 1.0% | 5.4% | Fortescue | 2.1% | 1.8% |
| Antofagasta | 1.3% | 4.8% | Teck Resources | -1.0% | 6.9% |
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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 |
| Oil Brent | ICE |
| Natural Gas, Uranium, Iron Ore | NYMEX |
| Thermal Coal | Bloomberg OTC Composite |
| Coking Coal | SSY |
| RRE | Steelhome |
| Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite, Rutile | Asian Metal |
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