SP Angel – Today’s Market View, Wednesday 8th July 2026

Gold pares gains as US-Iran peace deal breaks down

MiFID II exempt information – see disclaimer below

European Metals Holdings (EMH LN) – Different kiln at the Cinovec lithium project, Czechia offers potential to reduce capital and operating costs

Fulcrum Metals (FMET LN) – Tully Gold MRE triggers additional payment

Greatland Resources (GGP LN) – Senior technical and operational appointments

Great Southern Copper (GSCU LN) – Completion of scout drilling at the Especularita project in Chile

Hamak Strategy* (HAMA LN) – Drilling results from Akoko South, Ghana

Largo (LGO CN) – $60m order from the US government

Minerals260 (MI6 AU) – PFS outlines 125kozpa operation over 19 year mine life, first production targeted for 2028

Marimaca (MARI CN) – Further assay results from Pampa Medina Bornite Zone

Orosur Mining* (OMI LN) – Further assays from Anzá step out programme

Predictive Discovery (PDI AU) – Production update shows Kiniero running above nameplate capacity

Premier African Minerals (PREM LN) – Clarity on the Zimbabwean Government holding of the RHA Tungsten project

Sovereign Metals* (SVML LN) – Rio Tinto withdrawal opens the way for other operators to develop the world-class Kasiya rutile and graphite project

Tungsten West (TUN LN) – Hemerdon commissioning to start later this month

Gold ($4,058/oz) pares gains as US-Iran peace deal breaks down

• Gold prices fell 1.15% this morning to $4,058/oz, sliding from recent highs of $4,200/oz.
• The metal has faced continued pressure throughout the US-Iran war and recovered somewhat in the wake of the tentative MoU.
• This now appears to have broken down, with Trump initiating a new round of strikes on Iran last night after a Qatari LNG tanker was struck.
• An extended period of conflict lifts inflation expectations driven by higher energy costs, weighing on gold.
• The dollar has rallied on the news, rising back over 101 for the index.
• The higher dollar has been the primary headwind for gold prices in recent months.
• US Treasury yields have jumped again, rising to 4.58% on the 10 year yield.

The US government is seeking offers for ~16kt battery grade lithium carbonate over the next five years in a contract worth ~$300m.

• The Defense Logistics Agency (DLA), responsible for managing the National Defense Stockpile, is asking suppliers to submit fixed price proposals, Bloomberg writes.
• The deadline for proposals is July 17.

Nickel – Shanghai nickel volumes triple in H1 as SHFE opened contract to foreign traders

• The SHFE nickel contract was the first Chinese base-metals contract to open up to foreign traders in April causing volumes to triple to 30.5mt (Reutes).
• LME nickel volumes still rose 22% yoy, the strongest of the main LME metals.
• LME nickel stocks have stopped growing, but SHFE stocks keep building to levels last seen in 2017.
• We suspect nickel is splitting into two price centres, one in London and one in Shanghai.

Indonesian nickel MHP output fell to ~29,900t in June as sulphur costs bit

• Indonesia’s output of MHP ‘mixed hydroxide precipitate, a battery-grade nickel’ fell to ~29,900t in June, from ~42,000t in January, per Shanghai Metals Market.
• MHP is made in HPAL ‘high pressure acid leach’ plants, which need large amounts of sulphur.
• Sulphur landed in Indonesia has jumped ~126% this year, from ~$563/t to ~$1,100-1,200/t now.
• Producers are cutting output rather than raising prices, since MHP sells off the nickel price, not the sulphur cost.

Rare Earth – Peabody won US funding to pull rare earths from Wyoming coal, the second US coal miner backed this week

• Peabody Energy (NYSE: BTU), the biggest US coal miner, won US government funding on 7 July to produce REE from coal in Wyoming, with the amount not disclosed.
• It adds to a $6.25m Wyoming state grant to build a pilot plant turning low-grade coal and waste into rare-earth concentrate.
• Peabody is the second US coal miner funded this week, after peer Ramaco Resources.
• The US wants its own REE supply to depend less on China, which controls most REE mining and refining.

Coal – Thermal coal fell for a fifth day running to ~$128/t as Chinese demand dried up

• Thermal coal fell for a fifth day running to ~$127.95/t on 7 July as weak Chinese demand spread into the seaborne market.
• Chinese power plants have full stockpiles and northern ports keep filling up.
• Australian Newcastle coal dropped from ~$150/t three weeks ago to ~$130/t last week.
• Indonesian export prices slid, and more RKAB ‘government mining quota’ approvals are expected in H2, adding pressure.

Currencies

US$1.1429/eur vs1.1428/eur previous. Yen 162.19/$ vs162.08/$.SAr 16.289/$ vs16.240/$.$1.337/gbp vs$1.338/gbp.0.694/aud vs0.694/aud.CNY 6.798/$ vs6.799/$.

Dollar Index 101.03 vs100.95 previous

Economics

Iran – Ceasefire is off after strikes on tankers in and around the Strait of Hormuz

• The US / Iran MoU, Ceasefire is over according to Trump in Ankara this morning. “As far as I’m concerned it’s just a waste of time.” said Trump.
• The US fired on >80 targets following IRGC attacks on three oil tankers in the Strait of Hormuz.
• Strangely, Iran has not yet claimed responsibility for these attacks though there is little evidence of ‘rogue elements’ within the IRGC.
• It looks like the IRGC, which frequently overrules civilian leaders, is continuing to wage war against the US following directions from The Supreme Leader, Mojtaba Khamenei.
• The fanatical IRGC will not easily give up their mission to control the Strait of Hormuz and may even keep fighting post the assassination of Mojtaba Khamenei.
• The US and Israel look likely to continue to engage to eliminate IRGC units and their launchers as they expose themselves.
• Regime change: we understand there is significant and deep political factionalism within the Iranian regime.
• Mojtaba Khamenei may be hiding from his own people as much as the MOSAD-led assassins.

The US and Iran exchanged military strikes as attacks on tankers by the latter see the undoing of the temporary ceasefire signed in mid June.

• “As far as I’m concerned, it’s over,” President Trump said at the Naro summit in Ankara referring to the ceasefire.
• “It’s just a waste of time dealing with them,” Trump added.
• The US fired at more than 80 Iranian targets.
• Tehran targeted US military sites in Bahrain and Kuwait.
• VIX futures up 6%, brent up 6%, equity futures down (S&P -0.8%, Nasdaq -1.2%).

President Trump threatened to remove US troops from Europe on renewed calls for the US to control over Greenland.

• The US President also tied threats to his frustration over European partners’ reluctance to “help” in his war with Iran.
• “That’s what hurt my relationship with Nato, because Greenland doesn’t help Denmark. Denmark doesn’t spend money to really help Greenland, but it’s an important part for the United States,” Trump said.
• There are ~80,000 US troops across Europe.
• US Defence Secretary Pete Hegseth announced a six month review of the US presence in Europe last month.

Trump ordered Treasury Secretary Scott Bessent to cut off all trade with Spain calling it a “terrible partner”.

• The news follows Madrid not agreeing to NATO’s new defence spending target of 5% of GDP as well as Spain refusing the US to use its airspace and bases on its territory for the Iran war.

US – One year inflation expectation tick higher in June.

• NY Fed 1Y Inflation Expectations (Jun / May / Est): 3.67% / 3.46% / NA

Precious metals:

Gold US$4,125/oz vsUS$4,127/oz previous

Gold ETFs 96.4moz vs96.4moz previous

Platinum US$1,631/oz vsUS$1,621/oz previous

Palladium US$1,269/oz vsUS$1,251/oz previous

Silver US$60.7/oz vsUS$61.1/oz previous

Silver ETFs 783.0moz vs783.0moz previous

Rhodium US$8,250/oz vsUS$8,150/oz previous

Base metals:

Copper US$13,335/t vs US$13,367/t previous

Aluminium US$3,143/t vsUS$3,120/t previous

Nickel US$16,360/t vsUS$16,375/t previous

Zinc US$3,570/t vsUS$3,578/t previous

Lead US$1,898/t vsUS$1,883/t previous

Tin US$53,165/t vsUS$53,000/t previous

Energy:

Oil US$76.0/bbl vsUS$73.0/bbl previous

• Crude oil prices jumped 5% after the US launched military strikes and revoked a waiver permitting Iran to sell oil, with President Trump saying that he thinks the ceasefire is “over” in press comments at the Nato summit in Ankara.
• The API estimated US inventory w/w draws of 0.4mb to crude oil, 2.9mb to gasoline and 1.8mb to distillate stocks, with the SPR falling by 6.2mb to 325.7mb (45% of storage capacity). the API estimated that commercial crude oil inventories, excluding the SPR, have declined by nearly 60mb over the past 12 weeks but remain only 8.6mb lower year-to-date.
• European energy prices rose in line with oil prices, as France’s average nuclear generation jumped 12% w/w to 75% of the country’s 61.4GW maximum capacity, which followed a 4.2% y/y increase in total 1H26 nuclear output to 189.4TWh.
• The EIA’s July STEO report forecasts that supply disruptions in the Strait of Hormuz will cause global oil supply to decline to 101.9mb/d in 2026 (up 2.9mb/d m/m), resulting in a ~1mb/d deficit against global demand of 102.8mb/d in 2026. The EIA now forecasts a large 5mb/d inventory build in 2027 as supply of 109.8mb/d overshadows demand of 104.8mb/d.

Natural Gas €47.8/MWh vs€45.9/MWh previous

Uranium Futures $85.5/lb vs$85.3/lb previous

Bulk:

Iron Ore 62% Fe Spot (Singapore) US$99.1/t vsUS$97.9/t

Chinese steel rebar 25mm US$472.1/t vsUS$472.7/t

HCC FOB Australia US$239.0/t vsUS$239.7/t

Thermal coal swap Australia FOB US$127.5/t vsUS$126.8/t

Other:  

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

NdPr Rare Earth Oxide (China) US$111,288/t vsUS$110,904/t

Lithium Carbonate 99% (China) US$23,464/t vsUS$23,460/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$226/lb vsUS$226/mtu

China Graphite Flake -194 FOB US$400/t vsUS$410/t

Europe Vanadium Pentoxide 98% US$5.7/lb vsUS$5.7/lb

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

China Ilmenite Concentrate TiO2 US$217/t vsUS$217/t

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

China Rutile Concentrate 95% TiO2 US$1,155/t vsUS$1,155/t

Spot CO2 Emissions EUA Price US$65.1/t vsUS$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 vs US$410.0/kg

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

EV & Battery news:

Russian fuel shortages drive Chinese EV sales

• Russia is currently experiencing fuel shortages, driven by disruption across gasoline and diesel supply chains.
• Ukrainian strikes on Russian energy infrastructure have triggered fuel restrictions across much of the country, with particularly severe curbs imposed ‌in much of southern ⁠Russia and Siberia.
• According to Autostat, PHEV sales in Russia have increased 125% yoy during the first five months of the year, with fully-electric vehicles sales up 19%.
• A Moscow dealership speaking to Reuters reported that is has gone from selling 2-3 EVs per month to 2-3 EVs per day.
• Despite the recent growth, Russia’s EV market remains relatively small, with electric and plug-in hybrid vehicles represented 4.3% of total vehicle sales in 2025, according to Autostat.
• Russia’s size, cold climate and limited charging infrastructure have all acted as barriers to EV adoption in the country, but there are signs that this is slowly changing.
• Digital mapping service 2GIS reported that the number of charging stations in Russia have increased 20% over the previous year.
• Chinese automakers are dominating the Russian market with Geely, Dongfeng, GAC and Chery all reported as top selling brands.

CATL won permit to restart Jianxiawo lithium mine after near year-long closure

• CATL ‘the world’s largest battery maker’ has a permit to restart its Jianxiawo lithium mine in China, shut since August 2025 when its licence expired.
• During the shutdown CATL had to buy lithium ore from others, which lifted lithium prices and miner shares.
• Jianxiawo can make ~46,000t of lithium carbonate a year, about 3% of global output.

Company news:

European Metals Holdings (EMH LN) 14.5p, Mkt Cap £34m – Different kiln at the Cinovec lithium project, Czechia offers potential to reduce capital and operating costs

• European Metals Holdings reports that substituting a single gas/electric kiln for the two gas-fired rotary kilns envisaged in the Definitive Feasibility Study for its Cinovec lithium project in Czechia offer potential capital cost savings of US$112m and operating cost savings of US$10m pa.
• Previously published capital cost estimates for the Cinovec project (December 2025) are for a total US$1.7bn.
• The change is “not expected to impact Project timeline”.
• Today’s announcement explains that “a final decision on the use of a tunnel kiln has not been made although a decision in relation to this is expected by Q4 2026 … [but that if the company decides to change the kilns envisaged in the DFS it] … will proceed to update the DFS”.
• Describing the proposed change to the Cinovec DFS as “potentially important … [Executive Chairman, Keith Coughlan said that the lower capital cost reflects] … the use of off-the-shelf components … [and] … modular construction … [and operating cost savings are realised by] … the reduction in the roasting temperature of the Zinnwaldite concentrate and the option to use electricity instead of gas to fire the kilns”.

Conclusion: Post-DFS optimisation of the Cinovec project has identified the potential to reduce capital and operating costs using a different kiln configuration – a decision is expected by Q4 2026.

Fulcrum Metals (FMET LN) 7.75p, Mkt Cap £12m – Tully Gold MRE triggers additional payment

• Fulcrum Metals reports that the publication of a mineral resource estimate (MRE) for the Tully Gold project in Ontario totalling “approximately 265,000 ounces of gold” by Loyalist Exploration exceeds the 200,000oz “gold resource threshold associated with additional contractual consideration payable to Fulcrum”.
• Under its October 2025 agreement with Loyalist Exploration, “15,000,000 additional Loyalist shares, or cash in lieu thereof, are due to Fulcrum within 60 days following the filing of a technical report in respect of the Tully Gold Project in which a gold resource is re-evaluated or restated to NI 43-101 standard exceeding 200,000 ounces”.
• Today’s announcement explains that at Loyalist Exploration’s “current prevailing market price of 3.5 cents, the milestone consideration represents a potential additional value in excess of CAD$500,000 to Fulcrum, subject to settlement in shares”.
• In addition, “Fulcrum retains further exposure to the future success of the Tully Gold Project through additional milestone consideration linked to project advancement and a 2% net smelter return royalty”.
• CEO, Ryan Mee, described the “updated Tully resource … [as] … a positive outcome for both Loyalist and Fulcrum and represents an important advancement of the project”.
• He said this outcome was “a good example of our strategy to retain meaningful exposure to the upside of assets while focusing our capital and management resources on executing our core mine waste recovery strategy in Kirkland Lake and Timmins”.

Greatland Resources (GGP LN) 558.5p, Mkt Cap £3,964m – Senior technical and operational appointments

• Greatland Resources reports the appointment of a “mining engineer with more than 25 years of operational and leadership experience across the mining industry”, Nick Strong, as Chief Operating Officer (COO) with responsibility for the Telfer mine and Havieron project, WA.
• Mr. Strong, who has experience “managing large-scale underground and open pit mining operations … [most recently as] General Manager – Hemi & KCGM Growth with Northern Star”.
• He “will work closely with Telfer General Manager Mark Benson to continue Telfer’s consistent mining and processing performance, whilst also having oversight of the team delivering the brownfield Havieron underground mining development”.
• The company also reports the appointment of acting COO, Otto Richter, as Chief Technical Officer.
• Thanking “Otto for his tremendous work in leading Greatland’s operations as Acting COO … [Managing Director, Shaun Day, welcomed Mr. Strong’s appointment saying that he] … joins at an exciting time and is very well placed to lead our operations and substantial growth projects”.

Great Southern Copper (GSCU LN) 2.9p, Mkt Cap £23m – Completion of scout drilling at the Especularita project in Chile

• Great Southern Copper confirms the completion of a 17-hole (2,474m) scout drilling programme to investigate the potential for large-scale porphyry copper systems at its Especularita project area in the coastal metallogenic belt, Chile.
• Alteration zones, characteristic of this style of mineralisation have been drilled on the “western and southern margins of the La Colorada lithocap … [at the] … Piedras Blancas, Artemisa North and Victoria” targets.
• Today’s announcement confirms that initial “assay results are expected within the next 2-4 weeks”.
• Chief Executive, Sam Garrett, said that the “RC drilling has proven highly effective in efficiently testing four prospect targets, and the results from this programme already suggest that we are seeing porphyry-related phyllic alteration at surface at Piedras Blancas and Artemisa North and, more importantly, potassic alteration at shallow depths below that”.
• Mr. Garrett also said that “Elsewhere, exploration is continuing on multiple fronts across the project to enable the momentum of drilling work to continue. In particular, mapping and sampling at both the Cerro Negro and Viuda prospects is … aimed to assist with planning for the next phases of exploration drilling in those locations”.

Conclusion: Scout drilling at Especularita confirms porphyry copper potential for future exploration

Hamak Strategy* (HAMA LN) 0.68p, Mkt Cap £2.9m – Drilling results from Akoko South, Ghana

• Hamak Strategy, which has an option to buy CAA Mining’s Akoko gold project in southwest Ghana, reports additional drilling results from the 46 holes (2,514m) drilled so far.
• Results from six holes at Akoko South included in today’s announcement are:

1. • 4m at an average grade of 6.46g/t gold “from a shallow zone of sulphide material”  from a depth of 32m in hole 2026-061; and
   • 28m at an average grade of 0.66g/t gold from surface in hole 2026-062; and
   • 11m at an average grade of 0.73g/t gold from surface in hole 2026-063A; and
   • 17m at an average grade of 0.51g/t gold surface in hole 2026-063B; and

• The company comments that “These combined results further demonstrate the propensity of wide intersections of gold mineralization from surface, as well as suggesting the deeper gold potential in the sulphide mineralization”.
• Heavy rain is impeding access in the Akoko South area and “on the advice of the drill contractor … [Hamak Strategy] … has agreed to pause the drilling programme for safety reasons until drier conditions prevail”.
• CEO, Karl Smithson, confirmed that the “remaining drilling at Akoko south is scheduled to complete following the end of the seasonal rains. In the meantime, we now have sufficient drilling results to complete the independent Mineral Resource Estimate for Akoko”.
• Mr. Smithson explained that the “latest batch of drill assay results from Akoko South reflect the same encouraging pattern of near-surface oxide gold mineralization that we drilled at Akoko North … [and he said that] … we have now also intersected a high-grade sulphide zone at 6.46g/t Au over 4m … [which] … indicates the potential for a deeper primary gold system at Akoko”.

Conclusion: Drilling at Akoko South is showing similar near-surface gold mineralisation to that seen at Akoko North. Seasonally heavy rain has triggered a temporary suspension of drilling but the company is continuing to prepare an MRE using the results obtained to date.

*An SP Angel analyst holds shares in CAA Mining which may gain shares in Hamak Strategy

Largo (LGO CN) C$0.9, Mkt Cap C$94m – $60m order from the US government

• The Company received a $60m firm-fixed-price delivery order from the US government (the US Defence Logistics Agency Strategic Materials).
• The order follows a June 30 announcement of up to a maximum $125m shared contract for the supply of vanadium (~2.9kt V2O5 in total) supporting the US National Defence Stockpile.
• The order is for the supply of high purity vanadium pentoxide from the Maracas Menchen operation in Bahia, Brazil.
• The order covers deliveries through January 2030.

Minerals260 (MI6 AU) A$0.64, Mkt Cap A$1.4bn – PFS outlines 125kozpa operation over 19 year mine life, first production targeted for 2028

• Minerals260, a Western Australia gold developer, reports PFS results for the Bullabulling Gold project.
• The Company reports a maiden ore reserve estimate of 90mt at 0.86g/t Au for 2.5moz Au, spread over 4 main open pits.
• Concurrently, Minerals260 has reported an MRE update of 190mt at 1g/t Au for 6.2moz, with 4.4moz in the Indicated category.
• The study envisages a 5mtpa plant with a LOM feed grade of 0.86g/t Au over 19 years.
• Management guide to a potential capacity increase with the plant design, outlining a pathway to 7.5mtpa with secondary crushing and additional components.
• Average annual production over LOM at 125koz from 90% recoveries.
• Over the first 10 years, production is forecast at 150kozpa, supported by feed grades of 1g/t Au.
• Funding to first production includes:
  • A$180m pre-FID costs (long lead item procurement, FEED design, administration buildings)
  • A$560m CAPEX costs
  • A$115m pre-production operations costs
• Sustaining capital estimated at A$115m.
• AISC estimated at A$2,520/oz ($1,750/oz) using:
  • A$5.7/t mining costs
  • A$24.3/t processing costs
  • A$2.35/t G&A
  • LOM strip ratio of 4.9:1
• Post-tax NPV5 of A$2.3bn using $3,800/oz for a 43% IRR
• The Company is planning an ore reserve update in 1Q27 alongside a DFS and is targeting first production in late 2028.

Conclusion: Minerals260’s Bullabulling project is one of the few large-scale undeveloped gold projects in Australia remaining in independent hands. The Company, led by Tim Goyder, is aiming to bring the asset into production by late 2028, with funding support from Franco Nevada. However, we would expect ample interest form larger producers in the region looking to add to their portfolio. Expansion to the 5mtpa plant has the potential to increase production to >200kozpa, boosting the appeal of the asset to cash-rich producers.

Marimaca (MARI CN) C$7.8, Mkt Cap C$1.1bn – Further assay results from Pampa Medina Bornite Zone

• Chilean copper developer Marimaca reports assay results from its Pampa Medina deposit.
• Pampa Medina is a recent discovery made 28km east of the Company’s MOD heap leach project.
• Marimaca is conducting a step-out programme to better understand the geology of the high-grade, stacked mantos.
• Bornite-chalcocite mineralisation is hosted in interbedded sediments and volcaniclastics.
• The Company drilled its deepest hole to date at 1,052m, targeting basement metasediments.
• Highlights include:
  • SPRD-07: 20m at 2.65% Cu and 13.9g/t Ag from 593m, 104m at 1.01% Cu and 11.1g/t Ag from 670m (drilled 300m south of SPRD-05
  • SPRD-08B: 660m at 0.41% Cu and 1.8g/t Ag from 386m (inc. 98m at 1.21% Cu and 7.6g/t Ag from 386m
  • SPRD-09: 30m at 1.26% Cu and 2.6g/t Ag from 440m, 32m at 0.85% Cu and 4.4g/t Ag from 506m (inc. 18m at 1.11% Cu and 7.4g/t Ag from 520m
• Management notes hole SPRD-07 extended the bornite-chalcocite zone by 300m south of previous drilling, while SPRD-08B intersected mineralisation in basement metasediments for the first time.
• The Company believes drilling to date has intersected a ‘very limited portion of the broader Sierra de Medina land package.’
• Drilling will continue to test the lateral and depth extent of the system.

Orosur Mining* (OMI LN) 17p, Mkt Cap £67m – Further assays from Anzá step out programme

• Orosur Mining reports an exploration update from the Anzá gold project in Colombia.
• Orosur has been conducting regional exploration around Pepas following the deliver of a maiden MRE in late 2025.
• Focus has been on targeting additional mineralised gold deposits to complement Pepas.
• Today the Company reports five additional hole results targeting the northern extent of Pepas West.
• Management notes these assays returned gold grades lower than Pepas, and suggests this may be a result of the less silicified host rock and narrower zone.
• Highlights include:
  • PEP097: 27m at 0.61g/t Au from 36m
  • PEP098: 17m at 1.27g/t Au from 23m
  • PEP099: 4m at 1.94g/t Au from 24m
• The Company intends to conduct further drilling to better understand the controls of Pepas West, with high-grade surface samples suggesting potential for an increase in strike length.
• Additionally, Orosur will begin targeting an underexplored zone at Pepas, within the MRE boundary, focused on the southwest of the deposit.

Conclusion: Orosur remains focused on finding additional ounces at Pepas, with encouraging early-stage assays from Pepas West. Focus is on improving the geological model of the wider project area and extending mineralisation along strike.

*SP Angel acts as Nomad and Broker to Orosur Mining

Predictive Discovery (PDI AU) A$0.68, Mkt Cap A$3.4bn – Production update shows Kiniero running above nameplate capacity

• Guinean gold producer and developer Predictive reports production results for the quarter to 30^th June.
• The Company produced 54.3koz Au from Kiniero, milling 2.2mt at average grades of 0.86g/t Au.
• Nampala in Mali produced 9.8koz, milling 0.45mt at 0.71g/t Au.
• Management notes Kiniero throughput of 1,113tph or 9mtpa was ‘well above the 6mtpa nameplate capacity’ while recoveries rose to 90.5%.
• Cash and bullion reported at $365m, up from $263m in cash at 31^st March while accounting for $36m in transaction costs and a $9m royalty buy back.

Premier African Minerals (PREM LN) 0.02p, Mkt Cap £7.2m – Clarity on the Zimbabwean Government holding of the RHA Tungsten project

• In an intraday release yesterday, Premier African Minerals announced that President Mnangagwa has approved the transfer of shares in the RHA Tungsten mine, held by the Zimbabwe Government, to “the Ministry of Mines and Mining Development, under the stewardship of the Zimbabwe Mining Development Corporation”.
• Premier African Minerals owns a 49% interest in RHA and Managing Director, Graham Hill, said that confirmation of the transfer “removes a key area of uncertainty and provides a clearer basis for Premier to progress commercial discussions on the future of RHA Tungsten”.
• In its recently released 2025 results, the company confirmed its view that “at prevailing tungsten prices and subject to appropriate funding, RHA has the potential to be returned to profitable production”.
• In a separate intraday announcement yesterday, Premier African Minerals confirmed an agreement with its shareholder, Canamax Technologies, for Canamax to “convert certain accrued interest due under the Restated and Amended Offtake and Prepayment Agreement … into new ordinary shares in the Company”.
• The agreement provides for Canamax to maintain its holding of “13.38% of the shares in issue of the Company on a fully diluted basis, immediately following a funding by Premier, and on similar terms”.
• “Canmax has elected to convert US$628,702.23 of accrued interest (equivalent to £466,158) into 2,770,506,833 new ordinary shares”.

Conclusion: Clarification of the Zimbabwe Government’s holding in the RHA tungsten project may simplify Premier African Minerals’ consideration of a possible resumption of production in response to buoyant commodity prices.

Sovereign Metals* (SVML LN) 29p,  Mkt cap £203m – Rio Tinto withdrawal opens the way for other operators to develop the world-class Kasiya rutile and graphite project

(Sovereign currently holds 100% of the Kasiya project. Malawi has 10% free carry right. Rio Tinto holds 18.5% of Sovereign Metals)

• Sovereign Metals has been notified by Rio Tinto that they will not exercise their rights to become operator of the Kasiya rutile, graphite and monazite project in Malawi.
• The notification comes despite extensive funding, collaboration, time and technical input by Rio Tinto over the past few years.
  • “Rio Tinto has advised the Company, in its formal notice, that its decision reflects its change in corporate strategy regarding its Titanium business”
• Rio Tinto are walking away from:
  • exclusive marketing rights to market 40% of the annual production of all products
  • pre-emptive right over any offer from a third party to acquire an interest in the Project
• The RNS statement says:
  • “Rio’s decision does not reflect any change in the fundamentals, economics or strategic importance of Kasiya as highlighted in the Kasiya DFS, which was completed with technical input from Rio Tinto”
• Rio’s lapsed agreement now allows Sovereign to advance unencumbered with new and existing offtakers and miners with respect to the development of the Kasiya project.
• This may include US and Japanese offtakers and the US government which has shown interest in the Kasya project in recent years.
• Kasiya is a:
  • World class rutile deposit
  • Globally significant graphite resource
  • Meaningful monazite (Rare Earth Element) content, rich in Dysprosium and Terbium and Yttrium.
• All three minerals are considered to be critical by the US.
• Offtake discussions will continue with Mitsui, Traxys and other strategic US and US-allied counterparties
• The Rio team helped:
  • develop the pilot mine and land rehabilitation program for the DFS
  • invested >A$60m
  • committed substantial technical input via the Sovereign-Rio Tinto Technical Committee.
• They say the “decision not to elect operatorship reflects its change in corporate strategy and the strategic review of its Iron and Titanium business.”
• the decision does not reflect any change in the fundamentals, economics or strategic importance of the Project.
• Sovereign’s existing Collaboration Agreement with the IFC should help secure a new partnerships and finance for the full project development.
• Rio Tinto’s decision not to become operator after so much of their time and technical input is in line with the new CEO’s strategy with the titanium minerals business continuing to be under “strategic review”
• For now it looks as if Rio’s do not want to commit more time and finance to the titanium business preferring to focus on iron ore, copper, aluminium and possibly lithium.

Conclusion: Sovereign are now free to sign up other operators, offtakers and finance to build the Kasiya project in Malawi.

While it is disappointing that Rio Tinto will not be the operator, their effective withdrawal leads the way for other operators to step in to develop the mine.

*SP Angel acts as Nomad and broker to Sovereign Metals

Tungsten West (TUN LN) 36.25p, Mkt Cap £454m – Hemerdon commissioning to start later this month

1. Tungsten West reports that plant commissioning of its Hemerdon tungsten plant will start later this month.
2. The commissioning will include “recommissioning of the fines gravity circuit and downstream processing facilities during Q3 2026 … [and commissioning] … the coarse gravity circuit, in Q4 2026, with full project commissioning expected in Q1 2027”.
3. Today’s announcement confirms that “The Project is also forecast to be completed within budget”.
4. Commissioning and subsequent operations is prompting local recruitment with “over 100 employees … [recruited to date and] … targeting total recruitment of 350 by early in Q1 2027”.

Conclusion: Tungsten West confirms the start of commissioning later this month with recruitment building up.

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

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Analysts

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Sales

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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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