SP Angel . Morning View . Wednesday 18 08 21
Copper rangebound as markets weigh risks of spreading delta variant
IGTV: Mining sector: where now as Gates & Bezos move in?: https://youtu.be/3is7kRMb7yk
VOX Markets: 11/08/21: https://www.voxmarkets.co.uk/articles/john-meyer-on-bluejay-bluerock-bushveld-alba-minerals-efe74e1
Aura Energy* – (LON:AURA) – DFS costs update for Tiris show one of the lowest cost uranium projects in the world
BHP (LON:BHP) – BHP to spend $7.5bn on Jansen potash mine
Cora Gold (LON:CORA) – High grade intersections returned at Zone B and Selin
Geely Automobile Holdings (HK:0175) – Geely H1 sales rise 22% to CNY45bn ($7bn) but warns of chip shortage
Kenmare Resources (LON:KMR) – Record half-year profit of $48m driven by strong ilmenite production
Oriole Resources (LON:ORR) – Phase 1 drilling results from the Fare prospect at Senala, Senegal
Tertiary Minerals* (LON:TYM) – Progress of Brunton Pass exploration
Copper rangebound as markets weigh risks of spreading delta variant despite mine disruption in Chile
Copper prices rebounded from the lowest close in one month on Tuesday, as plant workers at Codelco’s Andina copper mine in Chile began a strike on Tuesday after failing to reach a wage deal with management.
Andina produced 184,500t last year, almost 1% of global output, while at the same time workers at a mine owned by JX Nippon are also on strike.
So far prices are ignoring strike action in Chile at the Andina mine that just went on official strike today, though they actually stopped work last week.
The unions involved say: “there has been a tremendous effort during the pandemic” and that they worked “under extreme cold and heat, exposed to physical and chemical risks … mental burden and overwork.”
BHP reached a deal to prevent strike action at Escondida. The mine produced 1,185,000t last year
Meanwhile, copper inventories tracked in Shanghai have fallen to their lowest level in 6 months, standing at ~93,000t – down from 225,000t in May.
No surprise to see copper prices pulling back in mid-August as negative pandemic news continues to feature in newsflow.
Copper looks likely to fall further in the short term on bearish news in China on the spread of the Covid-19 Delta variant.
The market is still digesting the impact of weaker data due to recent power restrictions, flooding, logistical issues and hot weather across the region.
Copper prices rose 0.9% to $9,328/t in London this morning, following a fall of 2.1% on Tuesday.
Automotive manufacturers have continued to produce through August when they normally shut down should be good for demand albeit at subdued levels due to chip shortages.
Many models have >six-month wait times serving to drive prices of second hand vehicles higher.
Some consumers are taking advantage of high used car prices to use the gains offered on HP residual prices for deposits for new cars. This appears to be supporting demand for more expensive vehicles.
China’s Covid ‘zero-tolerance’ policy continues to pressure supply chains
The close of Ningbo’s port has seen chaos at China’s second largest marine centre. 50 container vessels were queuing outside the port yesterday, 22 more than the same time last week.
The closure has caused dozens of vessels to reroute amid peak consumer demand season from the US and European economies as schools begin to return to class.
Chinese officials have requested negative tests before allowing cargos to be loaded and discharged.
Shanghai port had 34 vessels at anchorage vs 27 the same time last week.
The Freightos Baltic Global Container Index, which measures 12 major global container routes, has exceeded highs to hit $9,770.
The Chinese policy is also impacting alternative trade routes, with Kazahkstan limiting trade with China as a result.
The Kazakhstan state-owned railway company has refused to accept cargo shipments coming from China through its primary Dostyk hub.
The company is limiting imports of both grain and metals.
The firm has described the decision as one sparked by concerns over tougher Covid-19 restrictions in Chinese ports.
Kazakhstan is a key exporter for copper and alumina to China, with its Dostyk port seeing considerable traffic of goods to world’s largest importer of the manufacturing metals.
Gold – price recovery struggles to break through US$1,800/oz
Gold prices staged a robust recovery following the flash crash on 4th August
Prices had moved lower on the potential for the Fed withdrawing from its bond buying program and on prospects for interest rate rises
Gold is showing its resilience as investors buy back in on news of further lockdowns in China and on the prospects of longer running QE and other stimulus programs
Data Analytics giant Palantir adds gold to balance sheet in case of ‘black swan’ event
A recent earnings statement has shown that the data analytics software company Palantir has invested $50m into gold bars.
The investment comes alongside Palantir’s accumulation of cash, with a diversification into gold seen as a response to current undertones of economic uncertainty.
The company is also examining the opportunity for customers to pay for Palantir’s services using the precious metal.
Dow Jones Industrials –0.79% at 35,343
Nikkei 225 +0.59% at 27,586
HK Hang Seng +0.48% at 25,871
Shanghai Composite +1.10% at 3,485
US – A sharper than expected drop in retail sales announced yesterday were driven by shortages in motor vehicles market as well as the positive effect from reopening and stimulus checks faded, Reuters reports.
Online retail sales were down 3.1%mom as Amazon pulled forward its Prime Day to June from July.
Retail sales rose 1.1% in July vs 0.7% in June and rose 15.8% yoy in July vs 18.7% yoy in June
Retail Sales ex Auto (%mom): -0.4 v 1.6 (revised from 1.3) in June and 0.2 est.
Industrial Production (%mom): 0.9 v 0.2 (revised from 0.4) in June and 0.5 est.
Capacity Utilisation (%): 76.1 v 75.4 in June and 75.7 est. – their fastest rate since the pandemic and up on the 75.4% seen in June
Motor vehicle output rose 11.2% in July as summer shutdowns were cancelled in an attempt to alleviate the semiconductor crisis.
Factory output rose 1.4% in July vs -0.3% in June
Factory output ex autos rose 0.1% in July vs -0.3% in June
NAHB housing market index at 75 in August
Minneapolis Fed President sees a Fed taper this year as ‘reasonable’, however no raise in rates forecasted for several years
Neel Kashkari believes ‘it is a question of when, not a question of if’ the Fed will start to reduce its asset-buying scheme of $120bn p/m.
Kashkari confirms that the decision will be ‘driven by data’, and that any decision will rely on progress in the labour market.
The Minneapolis policymaker is considered one of the most dovish by analysts, suggesting a wider hawkish consensus in the Fed.
Kashkari does not believe interest rates will be raised for a ‘few years’ owing to the requirement of full employment.
Option bets expect limited impact of Fed Jackson Hole meeting on markets
Data has shown that the options market, which is often used by fund managers to hedge against expected volatility, is relatively quiet compared to previous Fed policy meetings.
Analysts have suggested that the Jackson Hole meeting at the end of the month will fail to offer a concrete decision on tapering plans without the necessary data.
Reuters polls have shown that economists expect the Fed to delay its decision to a meeting in September at the earliest.
Strategists believe Jackson Hole will result in ‘a lot of nothing’.
Option hedgers may alternatively have been put off by the S&P 500’s consistent uptrend, with the index failing to pull back more than 5% in over 276 days.
Los Angeles will ask people attending outdoor concerts and sporting events of more than 10,000 visitors to wear masks, regardless of vaccination status, as the city becomes one of the first in the US to reinstate the mask mandate as new cases rise.
Chicago reinstated its indoor mask mandate, also irrespective of the vaccination status.
Japan – Trade data showed strong growth in July reflecting low base in pandemic hit 2020, although, the pace lagged market estimates.
A separate report showed machinery orders, a proxy for capital spending, dropped 1.5%mom suggesting the global trade momentum may be easing as the new Delta variant spreads.
Exports (%yoy): 37.0 v 48.6 in June and 39.4 est.
Imports (%yoy): 28.5 v 32.7 in June and 35.3 est.
Tertiary industry index rose 2.3% in Jun vs -2.7% in May
EU – Q2 GDP rose 2% qoq vs a fall of -0.3% in Q1. Q2 GDP was 13.6% higher yoy vs a fall of -1.3% in Q1 yoy
UK – Inflation slowed more than expected to 2.0%yoy in July, down from 2.5%yoy in the previous month.
Market estimates were for a 2.3%yoy reading.
“Inflation fell back in July across a broad range of goods and services, including clothing, which decreased with summer sales returning after the pandemic hit the sector last year,” ONS commented on the data.
A pullback is expected to be temporary with the central bank estimating inflation to accelerate to 3% in August and peak at more than 4% this autumn.
Employment rose 95k in May vs 75k in June
Three month rolling unemployment fell to 4.7% in June vs 4.8% in may
Average earnings ex-bonus rose 7.4%yoy (6.6%) as
Preliminary Q2 labour productivity dipped 0.5% (Q2 0.4%).
UK Covid death toll rises as mortality rate exceeds five-year average (The Times)
Experts are pointing to an unusually high level of deaths from the Coronavirus in the week ending 6 August.
10,187 deaths were registered that week 13% above the five-year average.
Recent conversation with a NHS staff highlight concerns over the deaths of four young people last week in London with no known underlying health issues.
While official Covid restrictions are over, many people continue to wear masks in shops and on public transport which should continue to slow the spread of the disease.
Qantas, an Australian airline, will make vaccination mandatory for its 22,000 staff.
Frontline workers including pilots, cabin crew and airport staff will need to get two jabs by November 15.
Back office staff will need to be fully vaccinated by March 31 next year.
In a poll conducted by the Company (12,000 employees responded) nearly 90% of respondents had already been or were planning to get vaccinated.
New Zealand – Prime Minister announced a national three-day lockdown following a discovery of the first community case of covid-19 since February.
“Delta has been a game-changer, we’re responding to that… the best thing we can do to get out of this as quickly as we can is to go hard,” PM said.
Snap lockdown would see all schools, public venues and most businesses close with only essential services such as groceries, gasoline and health products allowed to stay open.
US$1.1721/eur vs 1.1768/eur yesterday. Yen 109.60/$ vs 109.19/$. SAr 14.865/$ vs 14.932/$. $1.374/gbp vs $1.380/gbp. 0.726/aud vs 0.728/aud. CNY 6.482/$ vs 6.484/$.
Gold US$1,792/oz vs US$1,794/oz yesterday
Gold ETFs 100.4moz vs US$100.4moz yesterday
Palladium US$2,534/oz vs US$2,582/oz yesterday
Silver US$23.80/oz vs US$23.89/oz yesterday
Copper US$ 9,270/t vs US$9,437/t yesterday
Aluminium US$ 2,568/t vs US$2,631/t yesterday
Nickel US$ 19,050/t vs US$19,490/t yesterday
Zinc US$ 2,994/t vs US$3,040/t yesterday
Lead US$ 2,286/t vs US$2,316/t yesterday
Tin US$ 35,660/t vs US$35,890/t yesterday
Oil US$69.6/bbl vs US$69.1/bbl yesterday
Natural Gas US$3.836/mmbtu vs US$3.918/mmbtu yesterday
Iron ore 62% Fe spot (cfr Tianjin) US$157.5/t vs US$160.7/t – BHP expressed concern over iron ore prices as China demand slows
BHP’s earnings statement noted that ‘China’s demand for iron ore is expected to be lower than it is today, as crude steel production plateaus and the scrap-to-steek ratio rises’.
Australian miners BHP, Rio and Fortescue are China’s main suppliers of iron ore.
Beijing’s crackdown on emissions from the steel industry has seen production limits on steel mills across China.
The price of iron ore is currently well above the major miners’ break-even price of c. $50/t.
Analysts estimate that China’s construction steel demand is likely to decrease in the second half of this year for the first time in 6 years.
Chinese steel rebar 25mm US$812.3/t vs US$813.7/t
Thermal coal (1st year forward cif ARA) US$107.3/t vs US$106.5/t
Coking coal swap Australia FOB US$199.0/t vs US$199.0/t
China Ilmenite Concentrate TiO2 US$361.80/t vs US$358.6/t
Cobalt LME 3m US$52,300/t vs US$52,500/t
NdPr Rare Earth Oxide (China) US$94,654/t vs US$95,083/t
Lithium carbonate 99% (China) US$15,429/t vs US$15,115/t
China Spodumene Li2O 5%min CIF US$880/t vs US$870/t
Ferro-Manganese European Mn78% min US$1,741/t vs US$1,748/t
China Tungsten APT 88.5% FOB US$305/t vs US$305/t
China Graphite Flake -194 FOB US$515/t vs US$515/t
Europe Vanadium Pentoxide 98% 9.6/lb vs US$9.7/lb
Europe Ferro-Vanadium 80% 40.25/kg vs US$40.25/kg
Spot CO2 Emissions EUA Price US$67.6/t vs US$67.8/t
Aura Energy* – (LON:AURA) 4.75p, Mkt Cap GBP20.8m – DFS costs update for Tiris show one of the lowest cost uranium projects in the world
Aura Energy has updated its 2019 capital cost estimates for the Tiris uranium project in Mauritania to reflect current cost environment increasing the estimate by 19% to US$74.8m from the previous estimate of US$62.9m.
The capital cost expressed in A$ terms of A$106.9m has increased by only 10.4% compared to the earlier estimate, illustrating the impact of differential exchange rate movements since 2019.
The company’s announcement contains a chart illustrating the principal sources of the revisions to the estimate 0090J_1-2021-8-18.pdf (londonstockexchange.com).
The largest component of the increased capital cost estimate is the process plant which has risen by 13.1% although offsetting savings compared to the previous estimates have been achieved in several areas, particularly a 3.7% reduction in “contractors distributables” and a 1.5% reduction in “process plant site services”.
Aura Energy clarifies that the increased cost of the process plant “is directly affected by bulk commodity costs, such as steel. Savings in process plant site services and contractor distributables were driven by reduced local Mauritanian costs”.
The company has also confirmed an operating cost estimate of US$25.43/lb of U3O8 production, including contract mining costs of US$7.16/lb, on a cash basis and US$29.81/lb on an all-in-sustaining basis.
Aura Energy says that, based on a 15 years mine life and treating 1.25mtpa of ore to produce an average of 823,000lbs of U3O8 annually, at a uranium price of US$60/lb the project is expected to generate an after tax NPV8% of US$79.9m and IRR of 22% and pay-back in 4 years.
Outlining the project’s sensitivity to uranium prices, Aura Energy says that at a uranium price of US$50/lb it would expect the project to generate an after-tax NPV8% of US$36m.
Aura Energy confirms that “85% of the capital cost for the Tiris Project has been sourced from direct supplier quotes. As a result of this thorough estimating approach, Aura is confident that the capital cost estimate for Tiris Uranium Project is robust”.
Managing Director, Peter Reeve, explained that “Tiris remains as a highly robust uranium project, which the company aims to capitalise on as the uranium market continues to recover. … Aura is well positioned to continue its discussions with global financiers in relation to both debt and equity funding arrangements”.
Having now updated its cost estimates, Aura Energy confirms that it will “continue its discussions with global financiers in relation to both debt and equity funding arrangements” and the completion of a water well drilling programme to secure “the relatively low water requirement of the Tiris Project”.
Aura Energy also explains that it has also undertaken preliminary evaluations on the potential of vanadium recovery as vanadium occurs at “a similar concentration to that of U3O8” in the Tris ore.
Mr. Reeve also explained that “Aura now stands among its peers as having one of the lowest, if not the lowest, all in life of mine capital of any of the currently proposed uranium development projects”. He also said that “the All-In Sustaining Cash Cost of $US29.81/lb U3O8 is extremely competitive when compared to our uranium development peers. The benefits of shallow mining and the beneficiation stage in the process, which leads to a small project footprint, have shown to being positive for the projects operating cost”.
Conclusion: Aura Energy has updated its capital and operating cost estimates for the Tiris uranium project and will now switch its attention to funding the development of low-cost uranium production from Mauritania.
*SP Angel are Nomad and Broker to Aura Energy
BHP (LON:BHP) 2,474p, Mkt cap GBP132bn – BHP to spend $7.5bn on Jansen potash mine
BHP yesterday reaffirmed its view to the Jansen potash mine, in what Saskatchewan says is the largest investment in the province’s history.
The miner made the announcement at the same time as committing to a major restructuring that will see it spin off its oil and gas business and increase its focus on commodities where it sees growth in a world that’s decarbonizing and electrifying.
Phase 1 of the Jansen project is expected to create as many as 3,500 construction jobs and 600 jobs for the long-term operation over what could be a 100-year mine life.
The decision to go ahead with the project comes after nearly 15 years of development that has seen the company already spend US$4.5bn sinking two mine shafts and other work.
Jansen is expected to come online by 2027 plus two additional years of ramp up.
Cora Gold (LON:CORA) 15.8p, Mkt Cap GBP34m – High grade intersections returned at Zone B and Selin
The Company released drilling results from Zone B and Selin deposits at the Sanankoro Gold Project in Southern Mali.
Results refer to ~3,700m of drilling returning high grade intersections outside the 2019 resource pit as well as consolidating the existing resource as the team is aiming to convert the existing Inferred Resource into Measured and Indicated categories.
Zone B, the third largest deposit on the Sanankoro property, selected drilling results include:
2m at 146.43g/t from 160m (SC0471);
10m at 1.86g/t from 108m (SC0466);
14m at 2.58g/t from 66m (SC0466);
23m at 1.88g/t from 103m (SC0464).
Selin selected drilling results include:
32m at 6.92g/t from 70m (SC0489);
66m at 1.58g/t from 52m (SC0490);
37m at 1.40g/t from 50m (SC0491).
As of mid-August the Company completed ~36,000m of drilling and received results for ~77% of submitted samples so far.
Drilling is ongoing with two RC rigs and a DD rig focused on infill and resource expansion meters along with a RAB rig progressing with a sterilisation drill programme as part of the DFS.
Geely Automobile Holdings (HK:0175) – 26.25p, Mkt cap HKD258bn – Geely H1 sales rise 22% to CNY45bn ($7bn) but warns of chip shortage
Geely have warned on disruption from the shortage of semiconductors on its automotive production lines
The Chinese car company, which scrapped plans to merge with Volvo in February, maintained its vehicle sales target of 1.53m vehicles
Kenmare Resources (LON:KMR) 431p, Mkt Cap GBP471m – Record half-year profit of $48m driven by strong ilmenite production
Ilmenite production rose 52% in H1 to 559,000t. Ilmenite prices were 18% higher yoy through H1
Kenmare ilmenite shipments are now back to H1 2018 levels.
Rutile production rose 45% to 4,200t though no rutile was sold in the period due to a shipment delay which slipped into July putting back zircon and rutile sales.
Zircon production rose 33% to 28,200t. Zircon prices were 4% higher yoy in H1.
During the first half of this year, Kenmare mined a record 19.9mt of ore at an average grade of 4.67%.
Kenmare shipped 594,100 tonnes of finished products during the period, a 44% increase compared to H1 2020.
Revenue rose 53% to $178.2m, while freight costs rose 86% to b$10.4m – reflecting the rising shipping costs affecting the industry driven in part by supply chain issues as a result of Covid-19.
Total operating costs rose 23% to $119.5m
Cash operating cost per tonne of finished product fell -22% to 143/t vs 183/t.
Cash operating cost per tonne of ilmenite fell -5% to $113/t vs 119/t.
EBITDA rose 121% to $82.3m from $37.2m
Post tax profit rose 278% to $48.0m from $12.7m .
Interim dividend rises by 217% to 7.cc/s for a total distribution of $8m vs 2.3c/s a year ago.
Net debt rose to $76.2m vs $64m at end 2020 indicating how well Kenmare has weathered the Covid-19 crisis
Kenmare saw a 1$% increase in ilmenite prices to $256/t over the period, while zircon saw a 4% price increase.
Kenmare comments that demand for titanium feedstocks accelerated throughout the period, allowing the company to achieve consecutive prices increases in Q1 and Q2 2021.
Kenmare finished the period with $56.5m in cash and cash equivalents representing a decrease of $30.7m compared to a year end’s position of $87.2m.
At the period end, debt amounted to $128m vs H1 2020 debt of $145.2m.
Conclusion: Higher ilmenite prices combined with stronger shipments have driven profits dramatically higher highlighting the leverage of the business and recovery in production.
Oriole Resources (LON:ORR) – 0.5p, Mkt cap GBP7.5m – Phase 1 drilling results from the Fare prospect at Senala, Senegal
(IAMGOLD has the option to spend up to US$8m to earn a 70% interest in Senala)
Oriole reports results from 38 of the 42 holes drilled at Fare by IAMGOLD under Phase 1 of its option agreement to earn an initial 51% interest in the Senala project through the expenditure of US$4m and up to 70% by spending an additional US$4m.
The shallow reverse-circulation drilling tested both the Fare North and Fare South anomalies and among the results highlighted in today’s announcement are:
An 11m wide intersection at an average grade of 1.22g/t gold from a depth of 5m in hole FARC21-0082 at Fare North; and
A 2m wide intersection averaging 11.74g/t gold from 84m depth in hole FARC21-0101, including a single metre averaging 22.67g/t from 84m, also at Fare North; and
An intersection of 14m averaging 1.62g/t gold from a depth of 72m and including 9m averaging 2.29g/t gold from 76m depth in hole FARC21-0109 at Fare Far South; and
Another intersection of 14m from a depth of 4m in hole FARC21-0111 at Fare Far South which averaged 2.09g/t gold and included a 7m wide section averaging 3.58g/t gold from 9m depth; and
A 35m wide intersection averaging 3.61g/t gold from 59m depth in hole FARC21-0112 at Fare Far South including 18m averaging 6.26g/t gold from 69m depth; and
A 15m wide intersection averaging 1.25g/t gold from 104m depth in hole FARC21-0113 at Fare Far South and including a 6m wide section from 108m which averaged 2.49g/t gold
The company says that the results “include multiple wide zones of near-surface mineralisation, continue to support the potential for the definition of open-pittable gold resources at Fare”.
Results from a further 4 holes on the southern edge at Fare Far South are still awaited.
The company confirms that the Phase 2 drilling work at the Madina Bafe prospect is continuing with 3,111m of the planned 5,000m programme completed in 48 holes and results awaited.
Commenting on the results from Fare, CEO, Tim Livesey, said that they “continue to support our belief that the c.6 km trend at the Fare prospect has ample potential to host a stand-alone resource”.
He also said that “the intersection of significant mineralised widths, often close to surface, points to the huge untapped potential at Fare”.
Conclusion: The continuing drilling programme at Senala is providing encouragement that Fare may host an open-pittable deposit – we look forward to a mineral resource estimate based on the current drilling results in due course.
Tertiary Minerals* (LON:TYM) – 0.27p, Mkt cap GBP3.1m – Progress of Brunton Pass exploration
Tertiary Minerals has issued a progress report on its exploration of the Brunton Pass copper project in Nevada which it acquired earlier this year supported by high grade copper results from its sampling of small-scale prospector workings.
The company has now extended surface sampling and mapping into the “northern part of the claim block where there are similar workings with shows of copper oxide minerals and where a small of amount of mercury was historically produced at the Antelope Mine”.
The new sampling includes 9 rock-chip samples “from different small prospecting pits” and include sample BR-014 “which returned 6.84% copper and BR-016, which contained 1.75 g/t gold and 2.37% copper. Anomalous silver was also detected with an average of 14.65 g/t silver across all samples collected”.
Tertiary Minerals has also conducted a “high-resolution drone-based aeromagnetic-photogrammetric survey … across the whole project area” to “define structures that could be potential pathways for mineralisation and a framework for further exploration”.
In addition, soil sampling has defined “Two large mercury-in-soil anomalies … with the largest of these extending over an area approximately 500m x 500m. This anomaly encircles the copper soil anomalies in the northern part of the project area and at its western part it is coincident with a deep magnetic low”.
Tertiary Minerals plans to follow-up with “a preliminary trenching programme across the main copper anomaly and carry out further investigation of the potential for gold and silver mineralisation”.
Executive Chairman, Patrick Cheetham, said that Brunton Pass “is shaping up as a priority target and we look forward to reporting further exploration results from this exciting prospect alongside the follow up trenching underway at our Pyramid Gold-Silver Project in Nevada and the recently optioned copper projects in Zambia”.
Conclusion: Early-stage exploration at Brunton Pass has provided encouraging grab sample results and defined geochemical and geophysical anomalies which will be followed up with a programme of trenching. We look forward to the results as the exploration programme develops.
*SP Angel act as Nomad and Broker to Tertiary Minerals
IGTV: Mining sector: where now as Gates & Bezos move in?: https://youtu.be/3is7kRMb7yk
China fearing failure in metals pricing tactic: https://youtu.be/RK4HQPrs60s
Evolution of Chinese construction and implications for commodity demand: https://youtu.be/jB2nURL8uPw
VOX Markets: 11/08/21: https://www.voxmarkets.co.uk/articles/john-meyer-on-bluejay-bluerock-bushveld-alba-minerals-efe74e1
BBC: Catalytic converters https://www.bbc.co.uk/sounds/play/p09jl6c9
*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts.
We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate.
John Meyer – [email protected] – 0203 470 0490
Simon Beardsmore – [email protected] – 0203 470 0484
Sergey Raevskiy [email protected] – 0203 470 0474
Joe Rowbottom – [email protected] – 0203 470 0486
Richard Parlons -[email protected] – 0203 470 0472
Abigail Wayne – [email protected] – 0203 470 0534
Rob Rees – [email protected] – 0203 470 0535
Grant Barker – [email protected] – 0203 470 0471
Prince Frederick House
35-39 Maddox Street London
*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
Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt
Natural Gas, Uranium, Iron Ore
Bloomberg OTC Composite
Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite
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MiFID II – Based on our analysis we have concluded that this note may be received free of charge by any person subject to the new MiFID II rules on research unbundling pursuant to the exemptions within Article 12(3) of the MiFID II Delegated Directive and FCA COBS Rule 2.3A.19.
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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%