Gold prices bounce following 3.7% fall on Friday
MiFID II exempt information – see disclaimer below
Anglesey Mining (AYM LN) – £1.25m fundraising to progress Parys Mountain
Aterian* (ATN LN) – Eastinco trading update highlights strong trading of tantalum and tungsten based concentrates
Goldplat (GDP LN) – Updated MRE for the Benoni TSF
Harena Resources* (HREE LN) – BUY, Target 9.4p – DFC development funding for Ampasindava rare earths project in Madagascar
Kavango Resources* (KAV LN) – Proof-of-concept plant commissioned at Hillside gold mine
Oriole Resources (ORR LN) – Metallurgical results from Bibemi, Cameroon
Switch Metals (SWT LN) – Early drilling results from the Issia lithium project, Cote d’Ivoire
Phoenix Copper* (PXC LN) – Empire copper mine sees 31.49% increase in proven and probable resource
Gold prices bounced to >$3,900/oz following a 3.7% fall on Friday taking October losses to 6%.
- The sell off was driven by fears of an escalation in the US/Iran war driving rate expectations higher as well as a potential selling to meet losses elsewhere in the market.
- S&P 500 and Nasdaq closed 1.8% and 2.9% on Friday on a sell off in tech stocks.
Brent is off >4% to sub $109/bbl on a report that Trump wants to give Iran diplomacy more time before the midterms.
- High chance of the US resuming air strikes of Iran post Midterms.
- Gulf states fear a wider war should bombardment resume.
Lithium – CATL’s Jianxiawo lithium mine gets environmental approval after getting suspended August last year
- Yichun authorities granted environmental approval for CATL’s Jianxiawo lepidolite mine in Jiangxi.
- Capacity is 30Mtpa of ore over an 18-year mine life.
| Dow Jones Industrials | -1.09% | at | 51,770 | |
| Nikkei 225 | -0.33% | at | 63,082 | |
| HK Hang Seng | +0.42% | at | 23,393 | |
| Shanghai Composite | +1.08% | at | 3,638 | |
| US 10 Year Yield (bp change) | -1.4 | at | 4.91 |
Currencies
US$1.1212/eur vs 1.1198/eur previous. Yen 157.64/$ vs 157.25/$. SAr 16.650/$ vs 16.638/$. $1.343/gbp vs $1.341/gbp. 0.702/aud vs 0.703/aud. CNY 6.647/$ vs 6.657/$.
Dollar Index 101.68 vs 101.67 previous.
Economics
Binance gradually resumes withdrawals following a US$6.3B hack, attributed to North Korean hackers.
- The exchange reported it had replenished ~95% of the affected assets following the October 29 attack.
- Remaining 5% is awaiting replenishment with the delay attributed to controlled purchases in lower liquidity assets outside of major ones.
- Binance earlier said it allocated more than $6.3B in company funds.
US – Tuesday Midterms elections in focus with expectations for Democrats to secure majority in both Congress chambers.
- Kalshi odds are currently for Democrats to win the House at 94% and the Senate at 73%.
China – Official factory activity slipped into contraction in October
- Momentum faded at the start of 4Q after a modest 3Q rebound, keeping pressure on Beijing to protect the 4.5–5% growth target.
- Production and new orders both fell into contraction with services new orders having now been below 50 for 42 straight months.
- Employment indices in both sectors have been in contraction since early 2023.
- Bloomberg still expects the GDP target being met and leaves a 10bp PBOC rate cut by YE on the table.
- Manufacturing PMI (Oct / Sep / Est): 49.3 / 50.1 / 49.9
- Non-manufacturing PMI (Oct / Sep / Est): 49.7 / 50.2 / 50.0
- Composite PMI (Oct / Sep / Est): 49.7 / 50.7 / NA
- RatingDog Manufacturing PMI (Oct / Sep / Est): 52.0 / 52.1 / 52.0
Germany – Gas storage targets are to be missed ahead of the onset of cold weather
- German storage was ~61% full as of Friday, well short of the ~70% target for 1 November and the 75% EU average, the economy ministry reported.
- Purchases were stepped up over the past month, but were not enough to close the gap.
- Temperatures are forecast 2–4°C below normal in major cities, with sub-zero readings in the south and east.
- Dunkelfaulte, a prolonged period of both wind and solar power generation running at critically low levels, threaten wind and solar output.
- European gas has tripled this year on Iran war disruption, and TTF topped €100/MWh last week for the first time since 2022 when Russia invaded Ukraine.
France – Fitch put sovereign credit rating on a negative outlook in an unscheduled move
- The agency cited “weaker growth, higher borrowing costs and a wider deficit” since the last review in August 2026.
- “Persistent political fragmentation and a challenging social backdrop increase the difficulty of delivering sustained fiscal consolidation.”
- “Large protests over public services and living costs further complicate the social context for fiscal consolidation.”
- The Lecornu government lacks a majority for its 5% deficit target.
- The OAT–Bund spread peaked at 178bp this month, up from 85bp in early September, and was c.165bp on Friday.
- France remains at A+ sovereign credit rating.
- Moody’s, one notch higher, held off on a downgrade last week.
- Fitch’s next scheduled review is due by end-February.
Precious metals:
Gold US$3,899/oz vs US$3,986/oz previous
Gold ETFs 101.0moz vs 101.1moz previous
Platinum US$1,437/oz vs US$1,440/oz previous
Palladium US$985/oz vs US$980/oz previous
Silver US$50.3/oz vs US$50.8/oz previous
Silver ETFs 808.8moz vs 808.9moz previous
Rhodium US$9,125/oz vs US$9,100/oz previous
Base metals:
Copper US$14,263/t vs US$14,245/t previous
Aluminium US$3,070/t vs US$3,067/t previous
Nickel US$15,385/t vs US$15,505/t previous
Zinc US$3,849/t vs US$3,863/t previous
Lead US$1,905/t vs US$1,912/t previous
Tin US$49,155/t vs US$48,420/t previous
Energy:
Oil US$109.6/bbl vs US$116.7/bbl previous
- Crude oil prices fell by $5/bbl at the start of the week amidst concerted efforts by mediators to find a diplomatic solution to the Middle East conflict and reopen the Strait of Hormuz.
- The US Baker Hughes rig count was flat at 603 units last week (+57 or +10% y/y), with oil rigs up 2 to 462 units (+48 y/y) and gas rigs down 2 to 130 units (+5 y/y), as Wyoming gained 2 rigs w/w to 18 units (+5 y/y).
- The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organization (APPO) have formally established the Africa Energy Bank (AEB), with $5bn in capital to finance oil and gas projects on the continent.
Natural Gas €100.3/MWh vs €101.7/MWh previous
Uranium Futures $92.4/lb vs $92.2/lb previous
Bulk:
Iron Ore 62% Fe Spot (Singapore) US$91.1/t vs US$90.8/t
Chinese steel rebar 25mm US$482.6/t vs US$482.0/t
HCC FOB Australia US$265.0/t vs US$267.5/t
Thermal coal swap Australia FOB US$147.0/t vs US$150.0/t
Other:
Cobalt LME 3m US$33,510/t vs US$33,510/t
NdPr Rare Earth Oxide (China) US$107,580/t vs US$107,412/t
Lithium Carbonate 99% (China) US$13,767/t vs US$13,746/t
China Spodumene Li2O 6%min CIF US$1,250/t vs US$1,290/t
Ferro-Manganese European Mn78% min US$1,045/t vs US$1,045/t
Tungsten APT (China) 88.5% FOB US$1,835/mtu vs US$1,835/mtu
Tungsten APT (Europe) 88.5% Rotterdam US$2,775/mtu vs US$2,775/mtu
China Tantalum Concentrate 30% CIF US$241/lb vs US$242/mtu
China Graphite Flake -194 FOB US$410/t vs US$410/t
Europe Vanadium Pentoxide 98% US$5.3/lb vs US$5.3/lb
Europe Ferro-Vanadium 80% US$25.9/kg vs US$25.9/kg
China Ilmenite Concentrate TiO2 US$177/t vs US$177/t
US Titanium Dioxide TiO2 >98% US$2,917/t vs US$2,917/t
China Rutile Concentrate 95% TiO2 US$1,181/t vs US$1,179/t
Brazil Potash CFR Granular Spot US$357.5/t vs US$355.0/t
Germanium China 99.99% US$4,525.0/kg vs US$4,525.0/kg
China Gallium 99.99% US$460.0/kg vs US$450.0/kg
Europe Molybdenum Oxide 57% US$32.5/lb vs US$33.0/lb
EV & Battery news:
Company news:
| Overnight Change | Weekly Change | Overnight Change | Weekly Change | ||
| BHP | -1.4% | 2.0% | Freeport-McMoRan | -5.5% | -4.2% |
| Rio Tinto | -1.2% | -0.7% | Vale | 1.9% | -8.1% |
| Glencore | -0.4% | -3.8% | Newmont Mining | -4.6% | -2.1% |
| Anglo American | 0.6% | -0.6% | Fortescue | 0.0% | -2.1% |
| Antofagasta | 0.5% | -1.0% | Teck Resources | -4.9% | 2.6% |
Anglesey Mining (AYM LN) 4.5p, Mkt Cap £3.8m – £1.25m fundraising to progress Parys Mountain
- Anglesey Mining has raised £1.25m from a placing and subscription for ~27.8m shares at a price of 4.5p/share.
- “Participants in the Placing and Subscription will receive 1 warrant for every New Ordinary Share subscribed for, exercisable at £0.0675 per share for a period of 36 months from the date of grant”.
- The additional shares represent ~30% of the enlarged company.
- Executive Chairman, Jim Williams, who subscribed for £10,000 of the new shares, said that “this capital raise will enable us to undertake a new drilling programme at Parys Mountain, targeting previously undrilled areas in between Engine/Deep Engine and the Garth Daniel systems, with the objective of establishing a connection between the two”.
- He also described how “Anglesey intends to extend the Northern Copper Zone and Garth Daniel Zone to the north-east and east … [in what] … will be the first drilling at Parys Mountain since 2023”.
- If it is successful, Mr. Williams said that drilling would “add material tonnage to the existing 16.1Mt resource with an average grade of 1.9% copper equivalent”.
- Currently, the Parys Mountain project hosts a ‘Measured, Indicated & Inferred’ resource of 16.06mt at an average grade of 0.98% copper, 1.33% zinc, 0.71% lead, 15g/t silver and 0.17g/t gold.
Aterian* (ATN LN) 22p, Mkt Cap £4.5m – Eastinco trading update highlights strong trading of tantalum and tungsten based concentrates
- Aterian report strong progress in trading at its Eastinco metals concentrate trading business in Rwanda.
- Eastinco traded 20t of concentrates in October using new facilities in Kigali with the operation providing a base for value added processing and mineral handling.
- The business is fast developing supplier networks and greater international reach with consumers.
- Additional mines in Rwanda are seen adding to future deliveries of tantalum- and tungsten-bearing material.
- Material contract: Eastinco reports it has agreed to sell 10t of tantalum-bearing concentrate worth ~ US$1.8m, to a G7-based investor.
- The contract highlights the growth within the Eastinco business endorsing the supplier due diligence, documented provenance, and traceability.
- Kinunga Project (HCK): Aterian were recently awarded a four-year extension for Kinunga in the south of Rwanda.
- We look forward to news on the potential of this tantalum–niobium development opportunity.
- The team are looking to install a wash plant to better capture tantalum and niobium mineralisation from the weathered pegmatites.
- Lithium potential: Aterian are also keen to evaluate the potential to extract lithium in spodumene from the unweathered portion of the pegmatites.
- Coltan from the upper weathered material could also provide additional feed for Eastinco to trade internationally.
- Musasa: exploration at Musasa in Rwanda provides further potential upside.
Conclusion: Aterian is building a solid base in Kigali on which to support its expansion and evaluation of new mining areas in Rwanda. Cash flow from Eastinco is hugely supportive for the group and can fund exploration in the area.
*SP Angel acts as Broker to Aterian
Goldplat (GDP LN) 22.75p, Mkt Cap £40m – Updated MRE for the Benoni TSF
- Goldplat has published an updated mineral resource estimate for its tailings resource (TSF) at Benoni, South Africa.
- The new estimate reports 2.34 ‘Measured’ tonnes at an average grade of 1.74g/t gold hosting ~131koz of gold (118koz attributable).
- “This compares with the total resource of 81,959 ounces of gold in 1.43 million tonnes at 1.78 g/t (Measured, Indicated and Inferred) announced on 29 January 2016, which it supersedes”.
- Today’s announcement confirms that “A concept study for the reclamation and processing of the TSF is being conducted … [which, if positive, should allow] … a feasibility and economic assessment … [to] … follow”.
Harena Resources* (HREE LN) 2.75p, Mkt Cap £21m – DFC development funding for Ampasindava rare earths project in Madagascar
BUY – 9.4p
- DFC funding: Harena Resources report the offer of development funding from the US DFC ‘Development Finance Corporation’ for the advancement of the Ampasindava rare earths project.
- Harena has received US$0.48m out of the committed US$4.84m DFC funding and has requested a further US$0.60m against the agreed development program and plans to draw a further $0.81m in January.
- The agreement covers a demonstration plant and initial commercial operation to validate technical, economic, environmental and social parameters.
- This the first direct US government funding for a mining project in Madagascar and marks a major-step forwards in terms of political alignment and support by the US.
- Agreements with the DFC provide for up to US$67m of further potential, conditional funding by way of debt or equity.
- DFS and FID: Harena is working towards the development of a DFS and FID ‘Final Investment Decision’ from its current PFS study.
- Permits: Harena has formalised its Exploitation Permit and is making progress with environmental approvals
- Environmental and social studies are advancing to support of approvals for pilot-scale construction.
- We see the location of Ampasindava within Madagascar and US support of the project as positive for permit approvals.
- Bulk sample underway for metallurgical test work for flowsheet optimisation, pilot-plant design and production of concentrate for offtakers.
- PFS metrics
- Life of mine – 20 years
- TREO contained in life-of-mine concentrate – ~71,000t
- Pre-production capital cost – US$142m
- Post-tax NPV@10% – US$249.6m
- Post-tax internal rate of return – 30%
- DFS study due (SPAe 2027).
- Maiden production targeted for 2028.
- Harena’s Ionic Clay mineralogy is in significant demand as seen in recent M&A activity:
- Lynas Rare Earths is acquiring Meteoric Resources in an all-share deal valued at US$682m for the Caldeira ionic-clay deposit in Brazil.
- USA Rare Earth (USAR) acquisition of Sierra Verde for its Pela Ema ionic-clay rare earth mine in Brazil for ~$2.8bn.
Conclusion: Finally, the US is waking up to the fact that rare earths projects do not develop themselves and the need for significant finance to get these projects going.
Harena appears well placed for the development of rare earths from ionic clays in the current environment.
The focus now shifts on delivering the demo plant that is planned to test the flowsheet, a major project de-risking event.
*SP Angel acts as broker to Harena Rare Earths
Kavango Resources* (KAV LN) 0.65p, Mkt Cap £27m – Proof-of-concept plant commissioned at Hillside gold mine
- Kavango Resources report the commissioning of their 50tpd proof-of-concept gold process plant at the Hillside gold project in Zimbabwe.
- The permitting, construction and commissioning of the plant and tailings storage facility serves to derisk the Hillside project ahead of larger scale production going forward.
- Jasper Musadaidzwa, who recently joined from AngloGold Ashanti is leading the developing of new infrastructure to upgrade the Hillside facility and support development of significantly larger output going forward.
- The new plant will enable the team to optimise metallurgical recoveries of 90-93% ahead of larger-scale development.
- Blending ore from the Nightshift and Bill’s Luck mines gives gold recoveries of >95% in the lab, with operating recoveries of 90-93% expected in real-world conditions.
- Ore is currently being fed from the 33,900oz JORC resources at Bill’s Luck at a grade of 2.68g/t.
- Infrastructure development:
- new 13-m headframe is being installed at Bill’s Luck Main Vertical Shaft
- Upgrades to power and water supply infrastructure,
- planning of future exploration programmes
- development of an enhanced employee accommodation camp..
- A new On-site laboratory has been established including bottle roll, fire assay and Atomic Absorption to enable rapid analysis of samples
- Bill’s Luck is mining a series of near-parallel and near-vertical veins over a known strike length of ~450m.
- The quartz-sericite-chlorite assemblages with disseminated sulphides outcrop at surface.
- The known veins are within relatively close proximity indicating potential for a larger mining opportunity close to the headframe.
- Nara Gold Project: Management are working towards the final completion and incorporation of the Nara gold mine into the operation.
* SP Angel acts as Broker to Kavango and an analyst has visited the Kavango mine sites and holds shares in the company.
Oriole Resources (ORR LN) 0.27p, Mkt Cap £13m – Metallurgical results from Bibemi, Cameroon
- Oriole Resources has announced results from metallurgical testing on bulk samples of oxide and sulphide mineralisation from its Bibemi project in northeast Cameroon.
- Testing of oxide material confirmed previous results from smaller samples that “the material is amenable to cyanidation, with >90% gold recovery after 24 hours of leaching”.
- Investigation of two bulk samples of sulphide mineralisation “focused on ultra-fine grinding of the flotation concentrate as a route to potentially replacing the pressure oxidation … assumed by the current Preliminary Economic Assessment”.
- Today’s announcement explains that “Flotation of sulphide samples returned approximately 80% Au at a coarse grind size (75 microns, “μm”), therefore similar to previous testwork”.
- Ultra-fine grinding of the sulphide material to 20-10µm size “resulted in downstream gold recoveries of between 94 and 98%” providing a possible alternative processing solution to the pressure oxidation envisaged in the “current Preliminary Economic Assessment”.
- The company explains that the alternative ultra-fine grinding processing could simplify the processing plant “leading to faster project execution, commissioning and ramp-up” and simpler and potentially safer operating conditions compared to pressure oxidation.
- Chief Executive, Martin Rosser, said that both processing routes “will have pros and cons for the processing of other gold-telluride deposits that may occur in Cameroon, dependent upon the magnitude of plant throughput and ore mineralogy”.
Conclusion: Metallurgical tests on mineralisation from Bibemi verify previous recovery results for the oxide mineralisation and offer an alternative, ultra-fine grinding solution, to processing of sulphide ore which the current PEA assumes will use pressure oxidation.
Switch Metals (SWT LN) 5p, Mkt Cap £6.8m – Early drilling results from the Issia lithium project, Cote d’Ivoire
- Switch Metals reports initial assay results from its reverse-circulation drilling at the Issia project in southwest Côte d’Ivoire.
- Explaining that these are the first holes it has drilled in the Issia pegmatite area, the announcement says that it has focussed on the Zraty and Kabore prospects and says that “Initial results confirm lithium mineralisation at depth beneath the Kabore surface discovery, alongside tantalum and niobium mineralisation at both Kabore and Zraty”.
- Results from the first 7 of the planned 34 holes at Kabore include:
- A 14m wide intersection at an average grade of 1.02% Li2O from a depth of 43m in hole ISBRC0024; and
- 13m at an average grade of 0.26% Li2O from a depth of 29m in hole ISBRC0009 which also intersected 6m of tantalum mineralisation grading 130ppm Ta2O5, also from 29m depth; and
- 2m grading 158ppm Ta2O5 and niobium mineralisation grading 180ppm Nb2O5 from 34m depth in hole ISBRC0023
- Drilling at the Zraty prospect intersected
- 6m at an average grade of 85ppm Ta2O5 from 58m depth in hole ISBRC0003 with results from a further 2 holes which intersected pegmatite still to be reported.
- Further results are awaited from 26 holes at Kabore and 1 at Zraty to help “ design the next holes along strike and at depth”.
- Additional geochemical exploration and geological mapping has been initiated “to extend Kabore beyond the current 1.3km prospective strike, with soil sampling and scout auger drilling continuing across Issia to generate further targets”.
- Acknowledging that “these results have taken a little longer to come through than anticipated … [CEO, Karl Akueson, said that the] … initial drilling results support the potential for lithium mineralisation beneath the lithium-rich spodumene discovery at Kabore … [and show] … the mineralisation is enriched by intervals of tantalum and niobium”.
- He said that “Only four of the thirty Kabore holes have been assayed so far. The pegmatite system is open at depth and along strike and work is ongoing to further extend this target”.
- He also explained that “At Zraty, our first holes have intersected the pegmatite with tantalum and niobium mineralisation, and further work will test for higher-grade shoots”.
Conclusion: Initial drilling at Issia shows lithium mineralisation and enrichment by tantalum and niobium. Further results are pending as the company aims to extend the mineralised footprint with additional drilling.
Phoenix Copper* (PXC LN) 0.52p, Mkt Cap £4.15m – Empire copper mine sees 31.49% increase in proven and probable resource
(Phoenix holds 80% of the Empire mining property in Idaho)
- Phoenix Copper report a new, updated, Mineral Reserve for the Empire open pit mine in Idaho, USA.
- Management now report a Proven and Probable mineral reserves – 13.27 million tonnes containing:
- Copper – 53,878t
- Gold – 134,600 ounces
- Silver – 5,407,400 ounces
- 83,959t of contained copper equivalent
- Proven and Probable reserves: 13.27mt for:
- Pre-Feasibility Study to follow shortly
- 2026 Mineral Reserve Statement for Empire Mine
- Fully diluted tonnes @ a Net Smelter Return cut-off of $19.83/tonne
| Classification | Tonnes | Copper | Gold | Silver | Copper Equiv. | |||||
| (x1000) | % | lb (x1000) | gpt | oz (x1000) | gpt | oz (x1000) | % | lb (x1000) | tonnes | |
| Proven | 9,688 | 0.40 | 86,226.00 | 0.38 | 118.0 | 12.40 | 3,862.9 | 0.66 | 140,587.97 | 63,788 |
| Probable | 3,588 | 0.41 | 32,555.11 | 0.14 | 16.6 | 13.39 | 1,544.5 | 0.56 | 44,456.76 | 20,171 |
| Proven + Probable | 13,277 | 0.41 | 118,781.10 | 0.32 | 134.6 | 12.67 | 5,407.4 | 0.63 | 185,044.73 | 83,959 |
- Fully Diluted tonnes @ a Net Smelter Return cut-off of $19.83/tonne
- Hardrock Consulting estimates done in a manner consistent with reporting standards
Conclusion: We see significant potential to expand the resource further from here through additional drilling and evaluation.
The increase today’s and future resources will enable management to rerun their PFS numbers on an expanded mine plan to show additional value.
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Analysts
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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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