SP Angel . Morning View . Monday 23 01 23
Tin prices rise on strong base metal complex and prospect for rising demand
MiFID II exempt information – see disclaimer below
Andrada Mining Ltd (AIM:ATM, OTC:AFTTF) – Additional inferred resources at the Uis mine in Namibia.
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) – Top end of FY-22 production guidance achieved
GreenRoc Mining PLC (AIM:GROC)* – Substantial increase in high-grade, battery-quality graphite JORC resource in Greenland
KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF)* – Tulu Kapi project funding update
Pure Gold Mining Inc (TSX-V:PGM, LSE:PUR, OTC:LRTNF) – LSE listing cancellation
Kodal Minerals PLC (AIM:KOD)* – BUY – Terms on joint venture show how keen Chinese processors are for raw materials
Nornilsk Nickel (OTCMKTS: NILSY) – Nornickel to develop closer ties with China and Turkey as Western sanctions hit business
Oriole Resources PLC (AIM:ORR)* – Death of Cameroonian Mining Minister
Pilbara Minerals Ltd (ASX:PLS) – Pilbara quarterly sales price rises 33% to US$5,668/dmt for 5.4%SC
Rockfire Resources PLC (LSE:ROCK) – Assay results from the Molaoi zinc project.
Gold’s strength continues as dollar sell-off resumes and talk of Fed pause intensifies
- Gold prices eased over the weekend from $1,933/oz to $1,922/oz following an extended rally.
- The Dollar Index fell 90bp to 101 on expectations of the Fed pausing rate hikes in the next few months.
- The Fed is set to meet on Jan 31st, with a 25bp hike currently priced in on optimism over cooling inflation.
- The US 10 year yield remains weak around 3.5%, down 70bp from highs in the Autumn, boosting gold’s appeal.
- Gold ETF holdings rose on Friday and Thursday by 0.51%, following a week of selling.
Copper - Glencore forced to suspend Antapaccay operations following third attack of the month
- Glencore suspended its Peruvian operations on Friday after protesters looted and set fire to parts of the Antapaccay camp.
- The Company reports the situation ‘was under control’ by mid-afternoon, but operations remain suspended on ‘unacceptable risks’ to workers’ safety.
- Antapaccay has been operating with 38% of its workforce since demonstrations started in the first week of January.
- Transport of concentrate remains suspended.
Iron ore - China sees jump in iron ore imports for January as steelmakers ramp up to satisfy construction demand
- Iron ore prices have climbed 7% this year and 60% since October lows, settling over $122/t.
- December imports climbed 5.6% yoy and January is on track to import 115mt vs a record high of 112mt in July 2020.
- Officials are noting concerns over climbing prices in China, with the State Planner reiterating concerns over ‘excessive speculation’ last week.
- Shipments from Brazil and Australia are expected to remain steady this year, adding further pressure to increasingly hot prices.
- Steel production rose 4.5% in December mom, but remains down 2.1% yoy vs record levels achieved in 2021.
Afghanistan - Taliban arrest Chinese nationals for allegedly smuggling Afghan lithium
- Taliban authorities in Afghanistan have arrested five men allegedly trying to smuggle an estimated 1,000t of lithium-bearing rocks out of the country.
- An official at the Afghan Ministry of Mines and Petroleum, estimated the rocks “contained up to 30% of lithium.”
- The arrests and the seizure of the rocks were made in the eastern Afghan border city of Jalalabad.
- The Taliban have banned the extraction and sale of lithium since reclaiming power in Afghanistan in August 2021
Dow Jones Industrials +1.00% at 33,375
Nikkei 225 +1.33% at 26,906
HK Hang Seng CLOSED at 22,044
Shanghai Composite CLOSED at 3,264
Economics
Year of the Rabbit hops off to a strong start
- Market looking for the US to avoid recession and head for a soft landing
- FOMC meet 31 January may see the Fed raise rates over 5% from their current 4.25%-4.5% range.
- Low US unemployment gives Fed ample room for manoeuvre.
- US Existing home sales fell 1.5% in December to 4.02m units vs -7.7% in November at 4.09m units
- US Equity indices closed higher and the US$ pulled back on Friday as markets are figuring out the monetary policy outlook and as Fed Governor Christopher Waller offered a dovish take on future rate hikes.
- Waller said on Friday that policy looked pretty close to sufficiently restrictive and backed moderation in the size of rate increases, Bloomberg writes.
China – Authorities report 12,658 Covid related deaths in the week before the start of the Lunar Year (Jan 12-19).
- This builds on 59,938 such deaths recorded in just over a month up to 12 January.
- The data came under criticism for dramatically narrowing the definition of a Covid death and as authorities halted daily caseload reports.
- Meanwhile, chief epidemiologist at the Chinese Center for Disease Control said that 80% of the population (ie ~~1.1bn people) is estimated to have been infected in the current outbreak.
- The nation is off this week with markets set to reopen next week.
South Korea - PPI fell 0.3% in December vs -0.3% in November and 6% yoy in December vs 6.2% in November
Eurozone – Central bank Governing Council member Klaas Knot, a voting member at the coming February meeting, suggested that the ECB should implement 0.5pp interest rate increases at the next two meetings.
- He added that the time to slow the pace of hikes is “still far away”.
- “We made a step down in December from 75 to 50 basis points — that will be the pace for a multiple number of meetings… I do think that we will continue to be in tightening mode until the summer,” Knot added.
- Comments follow President Christine Lagarde remarks at the Davis Economic Forum acknowledging continuing inflationary pressures and reiterating the ECB’s focus on bringing inflationary expectations lower.
- “We shall stay the course until such time we have moved into restrictive territory for long enough so that we can return inflation to 2% in a timely manner,” she said.
- Headline inflation rate slowed down to 9.2% in December, from a high of 10.6% in October, although, core CPI remained on a rising trajectory hitting 5.2% last month, up from 5.0% in November.
South Africa - ESKOM – Warning from US government on total ESKOM grid collapse
- OSAC, the US Overseas Security Advisory Council, a US government body has warned South Africa’s power grid is close to collapse.
- The situation could see industry and communications taken down as the level of power outages becomes unmanageable for the transmission network.
- Communications group ‘MyBroadband’ estimates that fibre networks will be able to operate for some time, provided data centres and Internet exchange points can remain powered.
- Batteries at cellular sites will start running empty after 4–6 hours, severely impacting mobile communications.
- Water reserves will also be severely impacted with no no sewage pumps according to the US Government warning leading to potential cholera outbreaks.
- Data centres and power stations could run out of water exacerbating the problem.
- South African security systems and structures would also become unreliable indicating a potential slide into anarchy.
- South African’s appreciate that disaster management plans can not rely on ESKOM or other government infrastructure.
- While the risk of a total blackout is said to remain unlikely, the risk has increased due to how unreliable Eskom’s coal fleet has become lengthening periods load shedding.
- The consequences of a total blackout would also be devastating, making it worth preparing for.
- A total blackout would require 6–14 days at best to restart the power grid according to officials.
- Restarting a single unit at Medupi would require a 60-MW generator indicating the scale of the problem.
- “A generating unit at Medupi exploded in August 2021 after technicians failed to purge leaking hydrogen before allowing it to mix with oxygen.”
Currencies
US$1.0898/eur vs 1.0847/eur last week. Yen 129.85/$ vs 128.92/$. SAr 17.192/$ vs 17.252/$. $1.24/gbp vs $1.236/gbp. 0.699/aud vs 0.694/aud. CNY 6.78/$ vs 6.776/$.
Dollar Index 101.75 vs 102.01 last week
Commodity News
Precious metals:
Gold US$1,921/oz vs US$1,933/oz last week
Gold ETFs 93.9moz vs US$93.9moz last week
Platinum US$1,052/oz vs US$1,041/oz last week
Palladium US$1,728/oz vs US$1,756/oz last week
Silver US$23.78/oz vs US$23.99/oz last week
Rhodium US$12,250/oz vs US$12,250/oz last week
Base metals:
Copper US$ 9,342/t vs US$9,338/t last week
Aluminium US$ 2,590/t vs US$2,610/t last week
Nickel US$ 28,650/t vs US$28,900/t last week
Zinc US$ 3,422/t vs US$3,432/t last week
Lead US$ 2,084/t vs US$2,135/t last week.
Tin US$ 29,695/t vs US$29,205/t last week
Energy:
Oil US$87.5/bbl vs US$87.0/bbl last week
- Crude oil prices are flat in early trading this week following the start of the Chinese Lunar New Year holiday at the weekend, when millions typically return home to rural areas in China to celebrate the Spring Festival.
- Shadow Chancellor Rachel Reeves said a Labour Government would backdate the UK Energy Profits Levy, remove the investment allowance tax relief and increase the effective tax rate to 78%, in line with Norway.
- The US Baker Hughes rig count fell by four to 771 rigs last week, with oil rigs down 10 to 613 rigs and gas rigs up 6 to 156 rigs, including a three-rig fall in the Gulf of Mexico count to end at 16.
- Media reports that the Netherlands is planning to close the Groningen gas field by October 1 2023 due to safety concerns regarding seismic activity, though it could delay closure until October 2024 if needed.
- The EU’s Clean Hydrogen Partnership has announced a call for proposals for €195m in innovation grants for hydrogen technology research and development.
- UK Business Secretary Grant Shapps reportedly called President Joe Biden's plan to subsidize clean energy in the US as 'dangerous' and risked pushing the world toward protectionism.
Natural Gas US$3.130/mmbtu vs US$3.163/mmbtu last week
Uranium UXC US$48.80/lb vs US$48.95/lb last week
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$122.2/t vs US$123.7/t
Chinese steel rebar 25mm US$621.2/t vs US$621.2/t
Thermal coal (1st year forward cif ARA) US$176.0/t vs US$176.0/t
Thermal coal swap Australia FOB US$317.0/t vs US$317.0/t
Coking coal swap Australia FOB US$330.0/t vs US$317.0/t
Other:
Cobalt LME 3m US$49,000/t vs US$49,000/t
NdPr Rare Earth Oxide (China) US$106,634/t vs US$106,623/t
Lithium carbonate 99% (China) US$66,047/t vs US$66,040/t
China Spodumene Li2O 5%min CIF US$5,970/t vs US$5,970/t
Ferro-Manganese European Mn78% min US$1,340/t vs US$1,336/t
China Tungsten APT 88.5% FOB US$325/mtu vs US$325/mtu
China Graphite Flake -194 FOB US$885/t vs US$885/t
Europe Vanadium Pentoxide 98% 9.0/lb vs US$9.0/lb
Europe Ferro-Vanadium 80% 36.75/kg vs US$36.75/kg
China Ilmenite Concentrate TiO2 US$343/t vs US$343/t
Spot CO2 Emissions EUA Price US$84.7/t vs US$84.0/t
Brazil Potash CFR Granular Spot US$510.0/t vs US$510.0/t
Company News
Andrada Mining Ltd (AIM:ATM, OTC:AFTTF) 5.6p, Mkt cap £83m – Additional inferred resources at the Uis mine in Namibia.
- Andrada Mining (formerly Afritin Mining) reports additional inferred mineral resources at its Uis tin mine in Namibia.
- The additional inferred resource of 57.2mt at an average grade of 0.131% tin is located close to the 71.5mt resource within the V1/V2 pegmatite which was initially reported in September 2019 at an average grade of 0.134% tin, 85ppm (g/t) tantalum, 0.63 % lithium oxide.
- The additional resources, hosted in geological formations designated as the ‘Proximal Pegmatites’ are “derived from a further 809 historical drill holes … [which indicate] … that the Proximal Pegmatites remain open-ended at depth”.
- Andrada Mining confirms that it is “embarking on a confirmatory drilling programme to improve the tin resource classification and to evaluate lithium and tantalum potential of the Proximal Pegmatites”.
- The company explains that, historically, the Uis mine exploited 12 mineralised pegmatites, including the V1/V2 body, of a “swarm of more than 180 pegmatites” and that the remaining previously mined bodies “have been incorporated into this report”.
- CEO, Anthony Viljoen, explained that the additional resources reported today “significantly advances the total Andrada mineral inventory towards management's internal mineral resource target of at least 200 Mt of mineralisation”.
- He said that “These additional pegmatites, together with the mineral resource at the V1/V2 orebody, provide an entire resource portfolio of approximately 128 Mt of ore with a gross combined content of 170 kt of tin, making Andrada the owner of one of the largest tin assets globally”.
- Mr. Viljoen also alluded to the lithium potential “within the same pegmatites” which has been previously highlighted and which, he said, “presents as a co-product revenue stream with the tin operation”.
Conclusion: Additional inferred mineral resources at Uis demonstrate the expansion potential of an historically mined area where only 12 of around 180 pegmatites were previously mined. Infill drilling is underway and should both improve the quality of the estimated tin resource and provide further insight into the lithium resource potential around the operating Uis mine.
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) 1,999p Mkt Cap £4.9bn – Top end of FY-22 production guidance achieved
- Endeavour reports production of 355koz, up 4% on the quarter prior, while AISC remained stable at ~$954/oz.
- Full-year production came in at 1.4moz and an AISC of 928/oz, which the company says marks the 10th consecutive year of achieving or beating guidance.
- The company’s net cash position at the end of the year was $121m.
- Endeavour has reported a H2 interim dividend of $100m, or $0.41/share, taking the total dividend to $200m or approximately $0.81 per share for FY-2022.
- The company continues with its share buyback programme which saw 4.6m shares at a total price of $98.7m purchased over the quarter.
- Endeavour have signed a $600m contract with Portuguese contracting firm Mota-Engil for mine development work at the Lafigué project in Ivory Coast.
- Work will begin in December 2023 and last 60 months.
- The project is expected to yield an annual production of 203koz over 12.8 years at an AISC of $871/oz. Construction commenced in Q4-2022 and first gold is expected to be poured in Q3-2024.
GreenRoc Mining PLC (AIM:GROC)* 5.05p, Mkt Cap £6m – Substantial increase in high-grade, battery-quality graphite JORC resource in Greenland
- GreenRoc Mining report a near trebling of their high-grade graphite resource in Greenland.
- We believe the Amitsoq Island graphite will be suitable for battery anodes given its high grade and spherical properties.
- The company estimate the new JORC Inferred Mineral Resource to be 23.05mt grading 20.41% Gc ‘Graphitic Carbon’ with a total graphite content of 4.71mt.
- JORC resources include:
- 1.26mt of Measured Resource,
- 6.12mt Indicated Resource from 2.04mt - a 200% increase over the 2022 MRE,
- 15.67mt Inferred Resource from 6.24mt to - a c.150% increase over the 2022 MRE,
- Total: 23.05mt grading 20.41% GC at a cut-off grade of 0% Gc.
- Next stages:
- Ongoing graphite quality and consistency verification,
- Drilling for further resource definition and geotechnical data,
- Mine planning,
- Scoping Study,
- Offtake discussions,
- Transport: The mine is located at the coast of Amitsoq Island making shipping and access relatively simple for Greenland.
- The Amitsoq Graphite Project consists of the historic Amitsoq Island graphite mine deposit and Kalaaq Deposit in the south of Greenland where it is not nearly as cold as in the north.
- Mine plan: While there is no calculated mineable Ore Reserve at Amitsoq we are confident that a relatively simple mine plan and Feasibility Study will show economic value in the deposit.
- Mineable widths of >2m of graphite were seen in eight holes in the UGL seam with graphite grades of 13.52-20.92% Cg.
- Mineable widths also seen in all 19 holes into the LGL seam.
- We expect the reopening and redevelopment of the Amitsoq graphite mine to be one of the quicker new graphite projects into production globally with the ability to feed into new Gigafactory production within a relatively short period of time.
- Test work: Purification tests by ProGraphite on the Amitsoq graphite shows the to be suitable for battery grade material using a leaching process at 250°C.with results showing relatively low levels of Fe, Cu and Cr at 15.4ppm, 0.8ppm and 0.2ppm.
- Work is ongoing to test a 700kg bulk ore sample to guide the project towards commercialisation.
- The LGL ‘Lower Graphite Layer’ contains some 16.88mt, @ 21.51% for 3.634mt of contained graphite representing >77% of the total resource with the rest in the UGL ‘Upper Graphite Layer’.
- GreenRoc has also notified the market that it has let the Inglefield land exploration license go.
Conclusion: GreenRoc management are working through the processes required for the completion of Feasibility Study and mine development plan. The location of the mine in Greenland (Europe) should help in its funding through development and project finance, while its focus on graphite for battery anodes could prioritise Amitsoq as a strategic development of the European Li-ion battery materials chain.
*SP Angel acts as broker to GreenRoc Mining.
KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF)* 0.8p, Mkt Cap £30m – Tulu Kapi project funding update
- The Company provided an update on the status of the $320m Tulu Kapi Gold Project funding.
- Contractors and equity contributors agreed to respective draft agreements and confirmed their intention to sign.
- Nearly all government agencies within the financing syndicate have also agreed to terms and ready to sign.
- Lenders responsible for $190m of the total $320m funding package have re-affirmed the funding plan in principle and have formally set indicative terms and conditions including satisfaction by all parties of their respective conditions and the receipt of all the necessary remaining Ethiopian Government approvals.
- Following completion of these steps and the receipt of final credit committee approval by the lenders, the Company is planning to call a GM of its shareholders to seek frormal shareholder approval for the transaction.
- KEFI expects all respective conditions to be addressed imminently with the exact timing on the transaction to be largely driven by the authorities’ approval process.
- The team reiterated targets to start Tulu Kapi construction later this year with first production from open pit operations envisaged in 2025.
Conclusion: The team is aiming to close Tulu Kapi project funding shortly paving the way for the start of construction works at what is set to become the first industrial scale mine development in the country in over 30 years at a time of improving gold price outlook.
*SP Angel act as nomad and broker to KEFI Gold and Copper
Kodal Minerals PLC (AIM:KOD)* 0.37p, Mkt Cap £62m – Terms on joint venture show how keen Chinese processors are for raw materials
Amendment to valuation
BUY
(Kodal Minerals holds 100% of the Bougouni lithium project. The Mali government has the right to a free carry on 10 of the project and an option to acquire a further 10%)
- Kodal Minerals reported its acceptance of an offer by Hainan Mining for $100m of funding for the Bougouni lithium project in Mali yesterday.
- Hainan Mining is backed by Fosun which holds a 45.9% alongside the province of Hainan which holds around 20%.
- The joint venture arrangement is interesting in that Hainan is committing $100m into the new joint venture for its 51% stake.
- In more detail, Hainan are also buying 51% of the jv for $94.34m in cash + a $5.66m loan to the jv which is being partially used to compensate Kodal for its expenses to date on the project.
- Valuation: The deal effectively values the joint venture company at $188.68m with Kodal holding a 49% stake worth $92.45m on the Hainan valuation.
- Cash Flow valuation:
- Valuing the jv company on its estimated cash flow shows :
- Sales of >$1bn of revenues over 4 years .
- NPV $420m at a 7% discount rate on a post-tax basis.
- Assumptions:
- $2,080/t for 5.5% spodumene concentrate.
- Production of 120,000tpa
- Trucking: 10 trucks carrying 350t per day at a cost of under $100/t.
- Valuation: Kodal’s 49% of $420m is estimated to be worth some $206m (£166m) at a spodumene concentrate price of $2,080/t spodumene concentrate.
- Kodal shares at 0.37p represent around a third of the value offered in the NPV estimate indicating to us that Kodal shares should be worth at least 0.42p based on 50% of the value of the NPV.
- When the $100m + $17.75m lands in Kodal’s jv and corporate bank accounts the funding will be secured. We should then reduce our 50% discount to NPV to around a 25% discount to account for potential construction, commissioning and trucking issues and add the $17.75m cash subscription into the Kodal valuation.
- This could raise our valuation to around 0.70p/s representing a significant uplift on the share price. We therefore rate the shares as a buy on the assumption the deal will consummate.
- Management: Kodal are managing the joint venture with Steve Zaninovich (Kodal operations directo) running the day-to-day activities
- Break fee: Hainan are paying US$7m into an escrow account within 10 days of their signing as a non-refundable deposit.
Conclusion: The Hainan deal is extraordinary in that Kodal are entitled to their 49% of the profit from the joint venture through their simple addition contribution of the project.
We assume the joint venture will pay all related costs out of the $100m of cash provided by Hainan. There does not appear to be any preferential repayment of capital to Hainan.
We are not aware of any expensive royalty, streaming or peculiar loan note arrangements draining the cash flow making this possibly the simplest and cleanest deal we have seen.
*SP Angel acts as financial advisor and broker to Kodal Minerals.
Nornilsk Nickel (OTCMKTS: NILSY) 1.89p, Mkt cap £2,336m Nornickel to develop closer ties with China and Turkey as Western sanctions hit business
- Nornickel’s Potanin, states the metals conglomerate is altering its strategy and fostering a closer relationship with countries such as China, Turkey, and Morocco.
- Potanin stated that sanctions ‘limit Nornickel’s capabilities, including financial ones, and development of those markets in which it has traditionally been present.’
- Although the palladium and nickel giant is not sanctioned directly, it has been hit by sanctions on logistics chains, payment systems and in sourcing new equipment.
- Potanin has been able to acquire deals ‘on very attractive terms’ as a result of the sanctions hitting investor confidence in Russia.
Oriole Resources PLC (AIM:ORR)* 0.16p, Mkt cap £4.4m – Death of Cameroonian Mining Minister
- Oriole notes that Gabriel Nodo Ndoke, Cameroon’s Minister of Mines, Industry and Technological Development, passed away over the weekend.
- The Company offers their deepest condolences to Mr. Ndoke’s family.
- CEO Tim Livesey notes that ‘Minister Ndoke was highly supportive of Oriole’s work in Cameroon.’
- Whilst a change in Mining Minister can often lead to licensing delays, Oriole has received approval for the majority of its licences in Cameroon and we do not anticipate disruption to the Company’s exploration efforts as a result.
*SP Angel acts as a broker to Oriole Resources
Pilbara Minerals Ltd (ASX:PLS) A$4.8, Mkt Cap A$14.4bn – Pilbara quarterly sales price rises 33% to US$5,668/dmt for 5.4%SC
- Pilbara Minerals released its quarterly activities report on Friday that showed the company earned US$5,668/dmt for 5.4%SC
- This equates to ~US$6,273/dmt (CIF China) on a 6% spodumene basis.
- Spodumene production rose 10% to 162,151dmt
- Pilbara’s operating costs fell 5% on the quarter to A$579/dmt
- The company’s cash balance at the end of the quarter was A$2.2bn.
Pure Gold Mining Inc (TSX-V:PGM, LSE:PUR, OTC:LRTNF) 0.7p, Mkt Cap £5m – LSE listing cancellation
- The Company made an application to the FCS to cancel its listing on the LSE.
- The last trading date for Company’s shares are expected to be February 14 2023.
Rockfire Resources PLC (LSE:ROCK) 0.2p, Mkt Cap £2.7m – Assay results from the Molaoi zinc project.
- Rockfire Resources reports assay results from its initial, geotechnical drillhole, at the Molaoi zinc project in Greece.
- The hole, “MO_GTK_001 was drilled halfway between historical drill holes to provide sufficient sample for geotechnical test work … [and the company explains that historical] … drilling encountered several possible parallel lodes and MO_GTK_001 confirms that Molaoi comprises multiple lodes, and perhaps as many as four stacked, high-grade lodes”.
- The company reports the following mineralised intervals:
- An intersection of the ‘Main Lode’ over an interval of 7.18m from a downhole depth of 130.62m at an average grade of 11.3% zinc, 1.4% lead and 50g/t silver which the company reports as 13.4% on a zinc equivalent (ZnEq; and
- An intersection of the ‘Second Lode’ over 0.17m width from 142.60m depth at an average grade of 14.3% zinc, 0.5% lead and 41.80g/t silver (15.6$ ZnEq); and
- An intersection of the ‘Third Lode’ over 1.73m width from 144.90m depth at an average grade of 8.3% zinc, 1.3% lead and 62g/t silver (10.7% ZnEq); and
- An intersection of the ‘Fourth Lode’ over 2.24m width from 161.10m depth at an average grade of 16.6% zinc, 3.1% lead and 36g/t silver (19.5% ZnEq); and
- The company says that “Overall, the main, second and third lodes, comprise a broad mineralised zone with an intersection of 7.5% ZnEq. over 16m width, from 130.62m (6.2% Zn, 0.8% Pb and 31 g/t Ag)”.
- Commenting on the result from hole MO-GTK-001, Chief Executive, David Price, highlighted that the “Zinc occurs over widths suitable for underground, mechanised mining” as well as the presence of multiple mineralised structures which are “continuous between historical drill sections”.
- He said that the drilling results provide the company “with ever-increasing confidence that we can proceed rapidly towards a resource upgrade and commence feasibility studies before the end of the 2023 calendar year”.
- Previous comments from the company suggested that it had encountered difficult drilling conditions “due to strongly brecciated, highly veined, broken and extremely altered rock” and we observe that drilling through areas of previous mining can present its own operational challenges.
Conclusion: Rockfire Resources’ initial drilling at Molaoi has intersected zinc mineralisation in four zones at the expected depth and position interpreted from historic geological information. The company is aiming to produce a revised mineral resource estimate and move into feasibility studies by the end of 2023.
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The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020
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
Joe Rowbottom – Joe.Rowbottom@spangel.co.uk - 0203 470 0486
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.
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 - Asian Metal
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SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return of less than 15%