SP Angel – Today’s Market View, Wednesday 15th July 2026

Copper rises as Codelco focuses on margins over volume while storm threatens operations

MiFID II exempt information – see disclaimer below

80 Mile Plc* (80M LN) – USFM announces merger with Twin Vee PowerCats Co in US

Anglo Asian Mining (AAZ LN) – Demirli ramp up delivers record 1H26 production

Antofagasta (ANTO LN) – Full year production and cost guidance intact with output expected to rise quarter-on quarter though the year

Awale Resources  (ARIC CN) – Strategic C$14.2m investment from Predictive Discovery

Beowulf Mining* (BEM LN) – BUY, Target Price 27p – Infill drilling begins at Kallak North

European Metals (EMH LN) – New kiln at Cinovec to knock $10mpa off running costs

Galileo Resources Plc (GLR LN) – Statunga starts legal proceedings against cancellation of Luansobe Small Scale Mining Licenses

Great Southern Copper (GSCU LN) – Mapping & Sampling extends footprint of the Viuda prospect, Chile

Rio2 Ltd* (RIO CN) – Filing of Kalzas Tungsten Project technical report

Rio Tinto (RIO LN) – Mid-year production confirms 2026 production guidance

Savannah Resources* (SAV LN) – BUY – Barroso FS ($913m NPV and 43% IRR) clearing the way to RECAPE, funding and FID

Sunrise Resources (SRES LN) – Garfield project, Nevada

Copper ($13,628/t) rises as Codelco focuses on margins over volume while storm threatens operations

• Copper prices have rallied 3% over the past week, rising over $13,600/t.
• Prices are supported by sustained supply disruptions, tariff expectations from the US and a reversal of the US dollar’s recent rally.
• Codelco’s new Chairman has stated an ambition to prioritise profitability over production growth amid a $25bn debt load.
• Codelco has consistently missed production targets from its Chilean operations, weighing on global copper supply.
• Additionally, Chile’s mining minister called a meeting with Codelco, Antofagasta and Teck to review contingency plans as a major winter storm threatens production.
• The storm is expected later this week, and concerns are mounting over heavy flooding.
• Chinese unwrought and semi copper imports rose 3% to 478,300t in June
• Chinese H1 copper imports fell 5.3% yoy to 2.49mt with H1 copper concentrates fell 0.9%yoy to 14.61mt

Pakistan’s biggest copper-gold mine may shut within a month as violence worsens

• Saindak, Pakistan’s largest copper-gold mine, warns it may stop within a month (FT)
• Attacks in the Balochistan region have made the roads too dangerous to replenish supplies.
• The mine is run by MCC (China state) with Pakistan’s state firm SML with almost all its copper blister metal to China.
• Saindak made produced most of Pakistan’s ~$750m of copper exports last year.
• Barrick’s $9bn Reko Diq project is already delayed due to similar security issues.
• More than a dozen Chinese workers have been killed in Pakistan in recent years, straining ties with China.

Amman Mineral (AMMN IJ) IDR3,660. Mkt cap ~IDR274tn ($15bn) – New copper smelter reaches full capacity

• Amman Mineral runs the Batu Hijau mine on Sumbawa island, one of the world’s largest copper-gold mines.
• Management report the Sumbawa smelter reached full capacity in June, after starting up in April.
• Smelter capacity:  220,000tpa of copper cathode from 900,000t of concentrate but the smelter might struggle to find feedstock.

Gold – Freeport Indonesia cuts its 2026 gold output to 21t after a mine collapse

• Freeport Indonesia now expects only 21t of gold in 2026, cut from an earlier 26t plan, its director Tony Wenas told parliament.
• A landslide damaged its underground mine in September 2025, so less ore now comes out.
• The mine runs at only 65% of normal, and made 26.5t of gold last year and 52.7t in 2024, so output has more than halved in two years.
• With little ore coming through, its new Gresik copper smelter ran out and stopped, and will restarts in September.
• Freeport expects gold to climb back to ~31t in 2027 and ~43t in 2028 as the mine heals.

Nickel – Brazilian Nickel wins state-bank backing for $1.4bn nickel and cobalt project

• Brazil’s state bank BNDES approved ~$18-20m of finance for the Piaui nickel-cobalt project (BNamericas).
• The loan is to buy mining equipment and is relatively minor next to the $1.4bn full capex.
• Brazil Nickel is targeting ~25,000t of nickel and ~1,000t of cobalt a year using an acid heap leach.
• The process should be much lower cost and cleaner than the HPAL plants as used in Indonesia.
• The project is backed by the US government, via Techmet.

Aluminium – Russia may require export licences to keep cheap metal at home

• Russia is looking at making aluminium exporters get a licence, per RBC via Bloomberg.
• The aim is to stop traders buying cheap at home and reselling abroad for more.
• The rule would last six months, and only firms that make aluminium and mine their own bauxite would qualify.
• For now only Rusal (0486 HK), Russia’s aluminium giant, meets those terms, so it would control who exports.
• If Rusal holds back Russian metal, it adds to an already tight world market.

Thames Water – running out of cash and running out of water as well

• You would have thought a water company could at least manage its liquidity
• What a complete shower!

Currencies

US$1.1427/eur vs1.1387/eur previous. Yen 162.22/$ vs162.33/$. SAr 16.382/$ vs16.480. US$.$1.341/gbp vs $1.336/gbp. US$0.699/AUD vs0.693/AUD.

CNY 6.770/$ vs6.781/$. Dollar Index 100.81 vs101.23 previous.

Dollar index weakened on lower US inflation and interest rate expectations

Economics

US – NFIB business optimism index 97.4 in June vs 95.3 in May

• Consumer Price Index rose 3.5% yoy in June

China – Q2 GDP 4.3% to end-June from 5% in Q1 on slow domestic demand despite massive increase in export value

• H1 GDP remains within China’s growth target of 4.5% to 5% with recent strong export figures likely to lift DGP in Q3.
• Domestic demand remains a major area of concern for the authorities.
• Local demand remains subdued by concerns over ongoing growth and government debt levels and potential future tariff impacts.
• Industrial production rose to 5.3% yoy from 4.5% yoy
• Retail sales also lifted to 1.0% from -0.6%
• Fixed asset investment fell -5.7% YTD vs -4.1% YTD previously
• Property investment collapsed by a further -18.0% in H1.

Eurozone – Industrial production falls -0.2%mom in May vs +0.3% in April as manufacturing slows

EU – Industrial production fell -0.1%mom in May following +0.2% gain in April

India – Inflation rose 1% in June to 4.4% yoy vs a rise of 0.75% or 3.9% yoy in May

• Wholesale price inflation also rose to 9.9% yoy in June vs 9.7% in May

Germany – Wholesale inflation 4.9% in June vs 5.9% in May

• Reflecting increasing competition from China and trouble in the German economy

Precious metals:

Gold US$4,032/oz vsUS$4,022/oz previous

Gold ETFs 96.4moz vs96.4moz previous

Platinum US$1,643/oz vsUS$1,609/oz previous

Palladium US$1,319/oz vsUS$1,274/oz previous

Silver US$58.5/oz vsUS$58.1/oz previous

Silver ETFs 780.8moz vs781.5moz previous

Rhodium US$8,100/oz vsUS$8,100/oz previous

Base metals:

Copper US$13,582/t vs US$13,568/t previous

Aluminium US$3,174/t vsUS$3,187/t previous

Nickel US$16,685/t vsUS$16,795/t previous

Zinc US$3,598/t vsUS$3,581/t previous

Lead US$1,861/t vsUS$1,876/t previous

Tin US$53,195/t vsUS$53,770/t previous

Energy:

Oil US$85.6/bbl vsUS$85.7/bbl previous

• Crude oil prices eased after US President Trump walked back on plans to impose a 20% security fee on ships transiting the Strait of Hormuz, as US forces stepped up the blockade and military strikes on targets in Iran.
• The API estimated US inventory w/w draws of 0.6mb to crude oil (-2.7mb expected) and 1.7mb to gasoline, offset by a 2.3mb build to distillate stocks, with the SPR falling by 3mb to 316.5mb, the lowest level in more than 43 years.

Natural Gas €53.9/MWh vs€52.7/MWh previous

Uranium Futures $85.2/lb vs$85.5/lb previous

Bulk:

Iron Ore 62% Fe Spot (Singapore) US$100.7/t vsUS$100.3/t

Chinese steel rebar 25mm US$470.8/t vsUS$470.6/t

HCC FOB Australia US$233.0/t vsUS$232.5/t

Thermal coal swap Australia FOB US$129.0/t vsUS$129.3/t

Other:  

Cobalt LME 3m US$56,290/t vsUS$56,290/t

NdPr Rare Earth Oxide (China) US$112,641/t vsUS$112,815/t

Lithium Carbonate 99% (China) US$22,380/t vsUS$21,752/t

China Spodumene Li2O 6%min CIF US$2,245/t vsUS$2,245/t

Ferro-Manganese European Mn78% min US$1,035/t vsUS$1,035/t

China Tungsten APT 88.5% FOB US$1,705/mtu vsUS$1,705/mtu

China Tantalum Concentrate 30% CIF US$225/lb vsUS$225/mtu

China Graphite Flake -194 FOB US$400/t vsUS$400/t

Europe Vanadium Pentoxide 98% US$5.6/lb vsUS$5.6/lb

Europe Ferro-Vanadium 80% US$27.0/kg vsUS$27.0/kg

China Ilmenite Concentrate TiO2 US$211/t vsUS$210/t

US Titanium Dioxide TiO2 >98% US$2,809/t vsUS$2,809/t

China Rutile Concentrate 95% TiO2 US$1,160/t vsUS$1,158/t

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

Brazil Potash CFR Granular Spot US$397.5/t vsUS$397.5/t

Germanium China 99.99% US$4,075.0/kg vsUS$4,075.0/kg

China Gallium 99.99% US$410.0/kg vsUS$410.0/kg

Europe Molybdenum Oxide 57% US$31.5/lb vsUS$31.5/lb

EV & Battery news:

Slate’s EV pickup price closer to $27,000 once fees and lost tax credit factored in

• The real cost of Slate Auto’s Blank Slate pickup have been revealed and while prices start at $24,950, destination taxes, title, and registration fees, put the real out-the-door price closer to $27,000.
• The truck was originally pitched at under $20,000 in April 2025, a figure that depended entirely on the $7,500 federal EV tax credit, which the Trump administration abolished.
• To keep the base price at $24,950 despite losing the credit, Slate switched to a cheaper lithium-iron-phosphate battery chemistry, moving away from an earlier planned extended-range pack.
• Some buyers may still get close to the sub-$20,000 figure through state incentives, although these are largely income-qualified.
• Fully optioned builds climb well beyond the base price, with a loaded Fastback SUV configuration reaching around $46,000 in one outlet’s build.

BYD to drive 15,000km to showcase battery and charging tech

• BYD is running a fleet of upgraded Denza Z9GT cars on a 15,000km journey from Rome to Hong Kong, expected to take around 43 days, to promote its high-performance batteries and fast-charging technology.
• The Z9GT is fitted with BYD’s Blade Battery 2.0 packs, arranged to increase energy density and heat resistance, giving the car a claimed range of up to 1,036km on a single charge, which BYD says is the longest for a mass-produced pure-electric car.
• The route, inspired by Marco Polo’s travels more than 750 years ago, started on 13^th June and passes through Italy, Croatia, Serbia, Turkey, Hungary, Bulgaria, Georgia, Azerbaijan, Kazakhstan, and Uzbekistan before reaching mainland China, with arrival in Hong Kong expected around 25^th July.
• The trip coincides with a surge in BYD’s overseas sales, with H1 deliveries outside China up 82.5% yoy to 471,091 units, now accounting for 42.5% of total deliveries, up from 20% a year earlier.
• BYD attributes part of the overseas demand surge to the global energy shock stemming from the US-Israel war with Iran, which has boosted sales of battery-powered vehicles.

Company news:

80 Mile Plc* (80M LN) – 0.93p, Mkt cap £50m – USFM announces merger with Twin Vee PowerCats Co in US

(80 Mile retains a 49% free carry on Disko with USFM earning into 51%)

• USFM Corporation, jv partner at Disko-Nuussuaq has announced a proposed merger Twin Vee PowerCats Co. (VEEE N).
• The boards of USFM and Twin Vee have approved the deal which is due to conclude in the second half with the combined company expected to continue to trade on the NYSE.
• The deal will separate and privatize Twin Vee’s marine and boating business while merging its public entity with a USFM subsidiary.
• 80 Mile plc is currently drilling the Disko-Nuussuaq nickel-copper-cobalt-PGE project 120km northwest of Ilulissat in the West of Greenland with funding from USFM.
• The project is seen as highly prospective for large-scale copper, nickel, cobalt and PGEs with geological similarity to Norilsk in Russia.
• The 80 Mile team plan to test multiple walk-up drill targets including seven large, high-priority geophysical anomalies.
• Other projects:
• Dundas: JORC MRE: 117mt of 6.1% high-purity ilmenite with a further 540mt exploration target and a total prospective area of up to 17bnt.
• The Dundas resource is recognised by independent bodies as the world’s highest-grade ilmenite project and the second- largest titanium occurrence globally after Russia.
• Hydrogen Valley Ltd: undergoing final maintenance before production of biofuels and SAF ‘Sustainable Aviation Fuel’ / capacity of 50,000tpa of biodiesel.
• Additional potential plans to produce green hydrogen at the site.
• Jameson Oil & Gas project:  preparing to drill 3,500 in H2 following funding by March GL, to be renamed Greenland Energy Co, (GLND.N) which is earning a 70% interest..

Conclusion:  

*SP Angel acts as nomad and broker to 80 Mile Plc (formerly Bluejay Mining). The analyst has formerly visited license in Greenland with management.

Anglo Asian Mining* (AAZ LN) 416p, Mkt Cap £475m – Demirli ramp up delivers record 1H26 production

• The Company reports 2Q26 production results at Gedabek and Demirli production complexes, Azerbaijan.
• Production:
  • 5.1kt copper (2Q25: 0.7kt) – 3.3kt Demirli / 1.9kt Gedabek
  • 6.3koz gold (2Q25: 6.1koz) – 5.2ko dore and 1.1koz concentrate Gedabek
• 1H26 copper and gold production at 8.8kt and 12koz.
• 1H26 dore and concentrate sales of 7.1koz at $4,664/oz and 58.6kt valued at $125.9m.
• Gilar underground mine delivered ~250kt of ore at 1.28g/t and 1.52%.
• Demirli flotation plant treated 855kt at 0.51% Cu implying 75% recoveries.
• Plant ramp up is expected to be completed 3Q26 reaching steady state production.
• Worley Europe appointed to carry out FS for next leg of organic growth including Xarxar (study due mid-2027) and Garadag (1H28).
• Net cash increased to $57.6m ($69.8m cash and $12.2m debt), up from $17.7m Mar26.
• Gold dore and copper concentrate inventories at $28.9m as of Jun26.
• 2026 guidance reiterated at 20-25kt copper and 28-33koz gold.

*SP Angel acts as Nomad to Anglo Asian

Antofagasta (ANTO LN) 3, 766p, Mkt Cap £37.9bn – Full year production and cost guidance intact with output expected to rise quarter-on quarter though the year

• Antofagasta reports Q2 copper production of 142kt at a net cash cost of US$1.36/lb bringing H1 production to 285kt at a net cash cost of US$1.22/lb (H1 2025 – ~315kt at US$1.32/lb).
• The H1 reduction in output compared to 2025 reflects “lower output at Los Pelambres and Centinela … [but Antofagasta confirms that] … Quarterly production is expected to increase sequentially over the remainder of the year”.
• Guidance for 2026 remains intact in the range 650-700kt of copper output with cost guidance also unchanged at between US$1.15-1.35/lb net of by-product credits “with a reduction in cash costs expected in H2 2026 as a result of higher planned production”.
• The company cautions that “with fuel prices and key consumables remaining above the levels seen in January 2026, Group-level cash cost before by-product credits are now expected to be in the range of $2.40-2.60/lb”.
• Capital cost guidance for the year, US$3.4bn, also remains unchanged.
• The Los Pelambres mine contributed 67.5kt of the Group’s quarterly copper production, along with ~12,000oz of gold and 2,300t of molybdenum at a net cash cost of US$0.80/lb bringing H1 output to 133.8kt of copper, 70koz of gold and 4,700t pf molybdenum at a net cash cost of US$0.76/lb (H1 2025 ~146kt of copper, ~26,000oz of gold and 5,700t of molybdenum at a net cost of US$1.03/lb).
• Timing “of maintenance on the concentrate pipeline, approximately 7,000 tonnes of copper processed … [at Los Pelambres] … during Q2 2026 will be recorded as production in H2 2026 … [with quarterly] … production … expected to increase sequentially throughout the remainder of the year, driven by a combination of higher throughput and copper grades”.
• The company attributes the “stronger realised pricing and partially offset by lower output of by-products” to the year-on year H1 26% reduction in net cash costs at Los Pelambres.
• Los Pelambres’ “Copper sales during Q2 2026 were 58,200 tonnes, 11% lower on a quarter-on-quarter basis, following adverse weather conditions at the port towards the end of the period”.
• At Centinela, overall copper production amounted to ~49kt at a net cash cost of US$1.06/lb bringing H1 output to 97.1kt at a net cash cost of US$0.70/lb (H1 2025 – ~116kt at a net cash cost of US$1.00/lb.
• Net H1 cash costs at Centinela of US$0.70/lb benefited from the production of 69koz of gold (H1-2025 ~65kozoz ) and 1,400t of molybdenum (H1 2025 1,700t) and the benefit of “stronger realised pricing and higher gold production”.
• Antucoya produced ~17kt of copper during the quarter at a cash cost of US$3.22/lb bringing H1 output to 37kt at a cash cost of US$3.12/lb (H1 2025  ~40kt at US$2.58/lb).
• Lower H1 copper production was the result of “lower recoveries and an increase in leach pad inventory, partially offset by higher grades”.
• Antocoya’s grades are expected to “increase on a quarter-on-quarter basis for the remainder of the year, which will result in higher copper production in the second half”.
• Half-year costs at Antocoya “were 21% higher on a year-on-year basis, reflecting … lower copper production, and higher unit costs for key consumables, such as diesel and electricity”.
• Zaldivar produced 8,700t of copper during the quarter at a cash cost of US$3.73/lb bringing H1 production to 17kt at a cash cost of US$3.67/lb (H1 2025 – 16kt at a cost of US$3.22/lb).
• The company explains that higher improved grades and recoveries drove the production increase and that H1 cash costs were “14% higher on a year-on-year basis, with this increase principally driven by … higher unit costs for key consumables, especially diesel and sulphuric acid offset by the higher level of production”.
• CEO, Iván Arriagada, confirmed that “Construction on our major growth projects continues to advance with commissioning expected to complete next year, with early pre-commissioning activities progressing in specific subsystems at the Centinela Second Concentrator Project”.
• He described the company’s focus on its supply chains to offset persistent “inflationary pressures … across the mining industry …  to ensure security of sourcing, disciplined cost control, operational excellence and the safe execution of our growth projects”.
• Mr. Arriagada expressed confidence in the fundamental resilience of the copper market where “robust demand and an increasingly constrained supply outlook … [reflect] … Structural demand drivers, including electrification, energy security, digital infrastructure and artificial intelligence”.

Conclusion: Antofagasta confirms its 2026 production, capital and operating cost guidance with output expected to rise quarterly through the balance of the year “supported by higher ore throughput and improving grades at both Los Pelambres and Centinela”.

Awale Resources  (ARIC CN) C$0.78, Mkt Cap C$93m – Strategic C$14.2m investment from Predictive Discovery

• Côte d’Ivoire gold explorer Awale has a greed a strategic investment from Guinean gold producer Predictive Discovery.
• Predictive will take a 12.3% stake in Awale for C$14.2m.
• The shares will be issued at C$0.85/share, representing a 10% premium to the 5-day VWAP.
• Awale management notes the investment will take Awale’s cash balance to C$30m and provide greater financial flexibility and ‘real discovery optionality beyond the already prospective geology.’
• Predictive joins Fortuna and Newmont as a strategic investor in Awale.
• Predictive will be granted the right to maintain its pro-rate ownership in future equity raises and will form a joint technical advisory committee with Awale.
• Awale’s Odienne project holds a 32.4mt MRE at 1.64g/t Au for 1.7moz in the inferred category.

• Predictive’s MD Matt Wilcox states the Project ‘is showing real potential as a future gold mine of significance with excellent scope for continued growth through expansion drilling and new discoveries.’

Beowulf Mining* (BEM LN) 6.5p, Mkt Cap £4.2m – Infill drilling begins at Kallak North

BUY: 27p

CLICK FOR LINK

• Beowulf reports it has begun an infill drilling campaign at its flagship Kallak iron ore project in Sweden.
• The initial 1,000m programme will be conducted over seven holes.
• Drilling is aimed to tighten drill spacing in the northern section of the Kallak North deposit.
• Beowulf’s aim is to convert near surface inferred resources into the Measured and Indicated categories.
• An initial hole has been completed to a depth of 174m, with a second hole started.
• The drilling programme forms part of the necessary workstreams to upgrade the MRE which will be fed into the PFS.
• 145 holes over 30,000m have been drilled at Kallak historically, predominantly targeting the Kallak North deposit which holds 80% of its tonnage in the M&I categories.
• Focus is on the conversion of near surface tonnage which will have the largest impact on project economics.

*SP Angel acts as Nomad and Broker to Beowulf Mining

European Metals (EMH LN) 16p. Mkt cap ~£38m ($51m) – New kiln at Cinovec to knock $10mpa off running costs

• European Metals is testing a new type of kiln at its Cinovec lithium project in the Czech Republic.
• A kiln is an oven that roasts the ore, so the lithium inside can then be washed out.
• The plan is to swap two spinning kilns for one simpler ‘tunnel kiln’, which is cheaper to build and run.
• It could take ~$112m off the build cost and ~$10m a year off the running cost.
• Capex: $112m to build and about $64m a year to run with a final decision due by late 2026.
• The new kiln runs at a lower temperature and can run on clean power instead of gas.

Galileo Resources Plc (GLR LN) 0.57p, Mkt cap £8m – Statunga starts legal proceedings against cancellation of Luansobe Small Scale Mining Licenses

• Galileo reports that its Zambian partner Statunga has started legal proceedings against canellation of Small Scale Mining Licenses at Luansobe project in Zambia.
• The matter was filed with a Zambian court 30 June
• Statunga has also started legal action against Mopani Copper Mines which is owned by IRH of Dhabi (51%) and ZCCM-IH (49%)
• The Board of Galileo “remains firmly of the opinion that there are no grounds for the termination of these Licences.”
  • “The Company and Statunga were in advanced discussions with a number of parties regarding commencement of operations, partnerships and other value adding mechanisms. The notification caused all discussions to be put on hold thus resulting in significant loss of potential value-add for all stakeholders.”
• Small-Scale Licences (Zambia):
  • Granted for an initial period of 4 years and are not renewable.
  • Holders must apply for a full small-scale mining licence after 4 years to maintain their claim.
  • Must be a registered company.
  • At least 50.1% of the equity must be owned by Zambian citizens.
  • Significant management control must be exercised by Zambians.
  • Minimum: 3 cadastre units (approximately 10.02 hectares).
  • Maximum: 120 cadastre units (approximately 400.8 hectares).
  • Operators must secure an approved EPB ‘Environmental Project Brief’ or EIA ‘Environmental Impact Statement’ from ZEMA ‘Zambia Environmental Management Agency’.
• Mining rights are governed under the relevant Mines and Minerals Development legislation and are processed through the Ministry of Mines and Minerals Development (MMMD)
• If Statunga did not properly apply for a full small-scale mining licence they could have legally lost the license.
• Galileo appear to have an issue with licenses in Zambia
• The company used to claim a stake in the Nkombwa Hill rare earths project in Zambia. The project is no longer listed in the Zambian section of Galileo’s website.

Conclusion: If the legal action was filed on 30^th June, why has it taken so long for Galileo to report the matter to investors?

There appears to be no explanation of the work done by Statunga to maintain its rights to the license. Why did Galileo drop its claimed ownership of Nkombwa Hill?

Great Southern Copper (GSCU LN) 2.8p, Mkt Cap £22m – Mapping & Sampling extends footprint of the Viuda prospect, Chile

• Great Southern Copper reports that mapping and rock-chip sampling at the Viuda prospect in its Especularita project area in the coastal metallogenic belt, Chile has extended the prospective zone of argillic alteration by a further 800m south of te area defined by the 2025 scout drilling.
• The company says that the “system is open to the west and south beneath gravel cover”.
• The mapping and collection of a total of “223 rock and channel chip samples, now defines anomalous Au-Ag-Cu mineralisation extending southward and covering an area of approximately 500 x 700m”.
• Today’s announcement confirms that “Planning and permitting for the next phase of drilling at Viuda Negra … [which is located 20 km SW of the high-grade Cu-Ag prospect at Cerro Negro] … is now underway, aimed at targeting mineralisation extending to the southwest beneath shallow cover”.
• CEO, Sam Garrett, said that the results “build on last year’s scout drilling… [and extends the target to] … an area covering some 500 x 700 metres … [which] … remains open to the west and south, where the mineralisation appears to extend beneath shallow colluvial cover”.

Conclusion: Planning is underway for additional drilling at Viuda to assess the extended target identified by recent mapping and sampling.

Rio2 Ltd* (RIO CN) C$2.62, Mkt Cap C$1.44bn – Filing of Kalzas Tungsten Project technical report

• Chilean/Peruvian gold-copper producer Rio2 has filed a technical report for the Kalzas Tungsten Project, Yukon.
• Kalzas lies within the Selwyn Tungsten Belt, along from Fireweed’s Mactung Tungsten Deposit.
• The Project was held in the shell Prospector Resources that subsequently became Rio2 and pivoted to gold in Chile.
• The Project has seen 11 diamond holes drilled over three campaigns totalling 1,570m, with no exploration activity undertaken since 2008.
• Kalzas is underlain by porphyry-style vein-stockwork and sheeted-vein wolframite, hosted within metasedimentary rocks.
• Mineralisation is reportedly dominated by wolframite, with c.10% occurring as scheelite within quartz veins.
• Historical drilling has intercepted highlights of:
  • KZ05-01: 48m at 0.153% WO3 from 11m
  • KZ05-02: 29m at 0.13% WO3 from 33m
  • KZ05-05: 24m at 0.3% WO3 from surface
  • K-08-08: 18m at 0.17% WO3 from 11m
  • K-08-08: 26m at 0.153% WO3 from 35m
  • K-08-09: 101m at 0.22% Wo3 from 34m
  • K-08-11: 43m at 0.16% WO3 from surface
• Historical exploration work has drill tested 300m x 200m of the broader 1,500m x 800m mineralised envelope defined by geochemistry.
• Rio2 will undertake a mapping and data compilation programme to delineate drill targets over July and August, following permitting.
• This will be followed by a 1,500-2,000m drill programme to target depth extensions of wolframite mineralisation below the 180m depth of previous drilling.
• Drilling will also test along-strike continuity to the northeast and southwest, as well as the western flank of Kalzas Mountain.

*SP Angel analyst(s) hold shares in Rio2

Rio Tinto (RIO LN) – 6,924p, Mkt cap £87bn – Mid-year production confirms 2026 production guidance

1. Reporting Q2 production, Rio Tinto’s Chief Executive, Simon Trott, said that “scale, geographical diversification and sophisticated supply chains continue to underpin our resilience and strong operational performance despite ongoing geopolitical uncertainty”.
2. Describing a 3% year-on-year increase in H1 copper equivalent production today’s announcement highlights the continuing ramp-up of production at Oyu Tolgoi as well as a 5% increase in iron ore sales “while our integrated, large-scale aluminium business sustained its strong performance”.
3. Production and cost guidance for 2026 is maintained across all major commodity groups.
4. H1 copper production of 442kt comprised 198kt from Oyu Tolgoi, a total of 189kt from Escondida, which produced 183kt in copper concentrate and 36kt of refined copper, and 54kt from the Kennecott operation in the US.
5. At Oyu Tolgoi, the company attributes a 31% year-on-year increase in output to “the ramp up of underground operations, and a higher combined grade from the open pit and underground”.
6. Oyu Tolgoi’s production “remains on track to reach an average of around 500 thousand tonnes of copper per year … from 2028 to 2036”.
7. At Escondida, “concentrate production declined driven mainly by expected lower ore grades from the mine sequence”.

• Production from Kennecott copper cathode output declined “due to reduced availability of high quality copper concentrate … [while] … Ore treated was lower due to mine sequencing adjustments associated with geotechnical management, planned concentrator maintenance in June of 23 days (now complete) and a 3 day safety stand-down in April”.

1. Copper production guidance is maintained in the range 800-870kt for 2026.
2. Q2 iron-ore production from the Pilbara operations brings H1 output to 138.7mt.
3. Rio Tinto’s share of H1 production from the SimFer operation at Simandou, Guinea amounted to 0.6mt.
4. Simandou’s Q2 production “increased QoQ following the Q1 tragic fatality, with a conservative, phased restart to operations to ensure disciplined application of safety learnings. Production has also been impacted by the reliability of temporary screening and crushing facilities. Delivery of permanent crushing facilities, expected in H2”.
5. Full year iron-ore sales guidance is maintained in the range 343-366mt.
6. H1 bauxite production declined 7% to 28.5mt although alumina output rose 8% to 4mt with aluminium output steady at 1.68mt.
7. Rio Tinto comments that the “Middle East conflict has reduced ex-China aluminium supply, with smelter curtailments contributing to an expected global deficit in 2026. As a result, ex-China inventories have trended towards historically low levels”.
8. Also commenting on recent easing of LME aluminium prices Rio Tinto said that it “is due to an expected recovery in Middle East supply, though restarts remain at a very early stage, and the path back to full production is uncertain”.
9. Guidance remains 58-61mt of bauxite production and 7.6-8.0mt of alumina and annual aluminium production guidance also remains intact at 3.25-3.45mt .
10. Rio Tinto’s Q2 share of lithium carbonate output of 14,600t brings H1 production to 27,300t and leaves annual guidance in the range 61-64,000t.
11. Commenting on uncertainty in the global economy fuelled by “the prolonged closure of the Strait of Hormuz … [where impacts] … have remained moderate to date”
12. Rio Tinto says that China’s industrial  production “slowed to 4.3% in April and May from 6.1% YoY in Q1, partly reflecting lower oil supply entering the industrial production value chains”.
13. The company also says that the American economy “has remained resilient, boosted by the ongoing AI-linked capital investment boom, the fading impact of reciprocal tariffs and a positive terms-of-trade effect from higher energy prices”.
14. Commenting on future opportunities, Rio Tinto confirms that it is drilling at the Resolution copper project in Arizona and that it has “Commenced initial underground development, including expansion of the existing mining station at ~6,800 feet below ground, representing an important step toward future access to the orebody”.
15. The company expects to complete its feasibility work on the proposed 10mtpa Winu copper project in WA by the end of this year.
16. At the 45% owned La Granja copper project in Peru (First Quantum Minerals 55%) confirms that First Quantum has issued a “materially updated Mineral Resource estimate … [of] … 4.8Bt @ 0.48% Cu Measured & Indicated for 23.0Mt contained copper, plus 5.2Bt @ 0.40% Cu Inferred for another 20.7Mt Cu”.
17. “Further project development … [at La Granja] … is focused on advancing the permitting process … [with] … the Detailed Environmental Impact Assessment … scheduled to commence in 2026”.
18. Feasibility work on iron projects, including the 40-50mtpa Rhodes Ridge project started this year and is expected to be completed in 2029.

Conclusion: Rio Tinto is maintaining its 2026 production guidance across its commodity groups with the company emphasises the stability of its operations. Oyu Tolgoi remaining on track to deliver 500ktpa of copper production by 2028.The company notes uncertainty for the global economy resulting from the Middle East conflict but comments on the current strength of the Chinese economy

Savannah Resources* (SAV LN) 6.5p, Mkt Cap £168m – Barroso FS ($913m NPV and 43% IRR) clearing the way to RECAPE, funding and FID

BUY – TP (under review)

• The Company released the Barroso Lithium Project DFS and maiden mineral reserves.
• DFS highlights:
  • LOM 14y
  • Conventional production flowsheet including open pit mining (contractor), DMS and flotation plant
  • WO 5.2
  • 1.47mtpa throughput
  • 70% recoveries
  • 183ktpa SC5.5
  • 600ktpa in ceramic by product production (~$224m LOM by product revenues accounting for <5% total).
  • Development Capex $418m ($323m net of ~$95m State Grant related to Development Capex) including $61m for the 16.5km Boticas by pass road
  • Sustaining Capex $92m ($65m net of ~$27m State Grant related to Sustaining Capex)
  • LOM rehabilitation and closure costs $237m (covering pit backfilling, topography restoration, revegetation etc)
  • AISC (net By Products and Grant) $646/SC5.5 FOB (~$705/SC6E FOB)
    • By Product revenue ~$88/SC5.5 FOB
    • State Grant related to Sustaining Capex ~$11/SC5.5 FOB
    • Rehabilitation and Closure (part of AISC) ~$92/SC5.5 FOB
  • Average lithium price $1,788/SC5.5 FOB (~$2,005/SC6E FOB)
  • LOM Revenue/EBITDA/Post Tax FCF of $4.8bn/$3.2bn/$1.9bn
  • Post Tax NPV8 and IRR $913m and 43%
• RECAPE and FID early 2027, maiden production late 2028 subject to permitting.
• Process plant design and footprint is developed with a potential scale expansion to accommodate larger mineral inventory in the future.
• A primary and secondary crushing and screening facility designed for a 3mtpa plant that can be realised with minimal engineering improvements.
• Maiden mineral reserve:
  • 20mt at 0.99% Li2O for 490kt LCE.
• MRE largely unchanged except for an updated estimate for the Aldeia orebody:
  • 39.2mt 1.05% for ~1.0mt LCE (39.1 1.05%, Sep25 MRE)
• Potential to grow the reserve from infill drilling (12.3mt in Inferred) as well as conversion from Exploration Target (35-62mt in addition to existing MRE).

Conclusion: The DFS delivers post tax NPV8 and IRR $913m and 43% for the Barroso Lithium Project (Portugal) highlighting robust economics and second quartile AISC. The project design uses reputable geological, mining, and metallurgical consultants for development of the geological model and development of the production flowsheet. Both capex and opex were revised higher on the previous study (Scoping Study 2023) reflecting tighter design parameters, general inflation and euro appreciation. Additionally, the study includes comprehensive operating, rehabilitation, and closure plans to minimise environmental impact including dry stacked tailings, progressive pit backfilling and restoration (reflected in $237m LOM closure costs) as well as infrastructure investment including a proposed open to public use 16.5km Boticas by pass road ($61m). Some of that increase is compensated by proceeds from the recently secured an up to €110m Portuguese government grant (a strong state support signal in itself). The study further de-risks the project helping the team to advance project funding discussions on course for RECAPE application and FID. We reiterate BUY recommendation and will be updating our target price incorporating DFS results.

*SP Angel acts as Nomad and Broker to Savannah Resources

Sunrise Resources (SRES LN) 0.02p Mkt Cap £1.5m – Garfield project, Nevada

• Sunrise Resources draws attention to yesterday’s announcement by Guardian Metals Resources which included a description of the potential of the Garfield project in Nevada’s Walker Lane mineral belt.
• Sunrise Resources confirms that it “holds a 2% Net Smelter Return (“NSR”) Royalty” over the project which it discovered “prior to selling the project mining claims”.
• The royalty includes “the original claim area and a 1-mile surrounding area”.

SP Angel – No.1 for Precious Metals: LSEG StarMine Award for Most Accurate Forecasting in Reuters Polls Q1 2026

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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

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

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

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