Today’s Market View – BHP, GreenRoc Mining, Rambler Metals and Mining and more…

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SP Angel . Morning View . Tuesday 28 09 21


China power shortage hits growth and industrial metals prices


US on course for partial government shutdown as Senate votes the bill down




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IGTV: 02/09/21: Chinese slowdown is ‘unlikely to be for long’: https://youtu.be/XuW2I6Z3-RU




BHP (LON:BHP) – Influential proxy adviser urges shareholders to vote against climate plan


GreenRoc Mining (LON:GROC) – Admission to AIM


Rambler Metals and Mining* (LON:RMM) – Covid19 disruption triggers delay in interim accounts


Rockfire Resources (LON:ROCK) – Drilling progresses at the Copperhead project


Strategic Minerals* (LON:SML) – Results from exploration west of Redmoor


Xtract Resources (LON:XTR) – Bushranger Phase 2 drilling




Copper shipments restricted by Peruvian roadblocks at Las Bambas


Copper miner MMG Ltd is to halt operations this week at its Las Bambas mine amid community roadblocks at the site.


Production is being progressively impacted as the protests restrict movement of both people and supplies to/from the mine.


Locals are blocking the main highway in a bid to reinstate community control over a road now known as the mining corridor.


Peru’s new government is pushing for the development of a railway line to transport copper and other metals amid community opposition to road transport.


A southern railway to the coastal area of Ica would help resolve road protests that have affected Las Bambas among other mines.




Gold – $1,739/oz – Strong dollar and rising yields dampen gold price


The slide has been triggered by rising 10-year Treasury yields which hit their highest in 3 months, topping 1.5%.


Stronger yields reduce the appeal of non-interest-bearing bullion.


Gold’s decline has also been accentuated by a rising dollar, with the greenback index up 0.1%.


Speculators look to a potentially strong September jobs report as a possible catalyst for the Fed to announce a taper.


J Powell is expected to note in a testimony to Congress this afternoon that inflationary prices may be more enduring than anticipated and that the Fed will take necessary action to prevent sustained inflation.




Power shortages in China hit industrial metal prices


Concerns over the impact of power limitations in China on metals demand have sent prices sliding.


A combination of soaring thermal coal prices and increasing emissions restrictions have triggered the power shortages.


Tin fell 4.3% from its record high of $36,830/t to $34,975/ as solder companies and tin chemical producers slash capacity following government directives.


Tin chemical producers in Shandong have slashed capacity by up to 50%.


Myanmar’s release of 5,000t of tin concentrate supply from its reserves is expected to add further downward pressure to the tin price.


Nickel prices fell 3.5% to $18,690/t as further stainless-steel output curbs are expected.


Whilst smelter production is reducing supply, downstream industrial consumers are also forced to reduce output, limiting demand.


Aluminium contracts fell 0.4%, zinc fell 1% and lead has fallen 0.5%.


The governor of Jilin province has called for an expansion of coal supply ‘at any cost’. Thermal coal futures have soared 7% to $204.76/t.




Dow Jones Industrials -+0.21% at 34,869


Nikkei 225 -0.19% at 30,184


HK Hang Seng +1.74% at 24,630


Shanghai Composite +0.55% at 3,602




Economics


China – World Bank lifted China growth estimate while pulling back its outlook for the rest of the East Asia and Pacific region, Bloomberg reports.


Lower ex China growth forecasts are driven by the spreading delta variant weighing on manufacturing and tourism, while low vaccination rates hamper the recovery.


Growth in China is estimated at 8.5% in 2021, up on 8.1% it forecast in April, although warned that the recovery is losing momentum.


East Asia and Pacific (ex China) growth is forecast at 2.5%, down from 4.4% estimated before.


“Covid-19 threatens to create a combination of slow growth and increasing inequality for the first time this century in the EAP… The result could be deprivation to an extent that the region has not seen in the last two decades,” World Bank said.


Power shortages in north eastern provinces causing severe disruption to industry and public services


Utility warns that power shortage could disrupt water supplies as traffic lights, elevators and 3G phone masts are shut down (Reuters).


Shenyang and Dalian cities, home to >13m people are affected as utilities are unable to pass on the high cost of coal to consumers.


Jilin province is to dispatch teams to secure coal supply contracts to restore power supplies.


Coal shortages are estimated to have potentially knocked around 1% off Chinese GDP growth with nearly half of all Chinese industry estimated to have been affected by the power shortages.


China is operating an informal ban on Australian thermal coal in relation to Australia banning blaming China on releasing the Covid-19 virus and refusing to allow Chinese student to return to Australia. We suspect China was also upset at Australia’s refusal to adopt Huawei 5G networks equipment.


We wonder if the strong Australian dollar caused by high iron ore prices and rising oil and gas prices may also have been a significant factor in their thinking .


We suspect China will allow imports of Australian coal to alleviate the crisis. Maybe it will now be time for Australia to ban exports into China.


China currently has around 247GW of coal fired power plants under development according to the National Energy Administration (NEA) with around 100GW of current capacity with many plants underutilised due to energy price caps.


Industrial profits growth slows in August as the effect of low 2020 base wanes while rising commodity prices and virus related restrictions challenge margins.


“The sustained and stable recovery of corporate profits is facing many challenges, as problems including regional outbreaks, the high prices of commodities, the high cost of international logistics, and the shortage of chips are still pushing up corporate costs,” the statistics bureau commented on the data.


Mining and raw material manufacturing industries reported significantly higher rates than the average pace of industrial firms last month.


Industrial Profits (%yoy): 10.1 v 16.4 in July.




US – Demand for factory goods remained strong in August topping estimates led by a jump in new orders for nondefense aircraft and parts.


Core orders that exclude volatile aircraft orders climbed 0.5%mom, up on 0.3%mom, suggesting businesses are increasing their capital spend on equipment adding optimism to growth outlook.


Durable Goods (%mom): 1.8 v 0.5 (revised from -0.1) in July and 0.7 est.


The Senate votes down the bill to extend funding for federal agencies past the September 30 deadline adding to concerns the US may be heading towards the second partial government shutdown in three years.


The bill that was already approved by the House needed 60 of 100 members voting in support versus a 48-50 (for-against) result reported late on Monday.


Republicans said they oppose the bill because it also included a temporary suspension on the debt ceiling, and while they oppose allowing the US government to default, they want Democrats to suspend the debt limit without their votes, Reuters reports.


An eventual Democrat-only vote to raise the debt limit would provide base for criticism in the future, Bloomberg writes.


Two Federal Reserve Presidents are stepping down following revelations of stock trading last year.


Eric Rosengren (Boston Fed) and Robert Kaplan (Dallas Fed) are two of the more hawkish officials at the US central bank.


Both Rosengren and Kaplan came under heavy criticism in the past few weeks after their 2020 financial disclosures showed they held and traded financial assets while actively supporting markets through the pandemic sparking critics pointing to a conflict of interests.




Germany – Consumer sentiment came surprisingly upbeat for October according to the latest GfK report.


GfK Consumer Confidence: 0.3 v -1.1 (revised from -1.2) in September and -1.5 est.




Mali – Presidential and legislate elections set for next February may be postponed to support their validity, post-coup PM said.


Previously, Mali’s new military leaders agreed to an 18-month transition following a coup in August 2020 that replaced president Ibrahim Boubacar Keita culminating with elections scheduled for February 28 next year.


The date may be postponed by “two weeks, two months, a few months”.


“(The electoral calendar) was based on the requirements of ECOWAS (Economic Community of West African States) without asking what practical steps must be taken to get there…. The main thing for us is less to stick to February 27 than to hold elections that will not be contested,” interim PM Choguel Maiga said.




Australia planning $1.5bn loan scheme for critical mineral developments


Aus. PM Scott Morrison announced a US$1.5bn loan facility for domestic critical mineral projects today.


Morrison notes the role of lithium and rare earths in the future energy economy and hopes to limit the difficulty for junior projects to ‘get established’ owing to the ‘commercial dimensions’ of the market.


Australia is the world’s largest supplier of rare earths excluding China and its supply is increasingly attractive to western consumers.


The PM is looking to improve the security of supply chains ‘in a free and open Indo-Pacific’.




BASF sees 2030 battery materials sales hitting EUR7bn in 2030


BASF’s battery materials business is expected to generate sales of EUR1.5bn in 2023 and EUR7bn in 2030 according to a presentation yesterday.


This is expected to be driven by a ramp up in demand from the EV sector.


The cathode materials market is forecast to grow by 21% pa until 2030.


The Company’s technology chief also announced plans to invest in battery material supplies including nickel and cobalt.




Europe – Eurometaux warns that metal producers may leave Europe over surging power costs


The non-ferrous metals industry association Eurometaux has warned the EU of the potential for metal producers to leave the bloc.


The letter notes that ‘rising electricity prices have already led to curtailments’ and could trigger a ‘relocation…outside of Europe’.


Producers of electricity intensive aluminium, copper, nickel, and silicon are expected to be the hardest hit by current price rises.


Zinc producer Nyrstar has already had to slash smelter activity.




Shipping firms call for government intervention to alleviate supply chain turmoil


President of Mitsui OSK Lines has accepted the industry’s miscalculation over the length of the pandemic’s impact on supply disruptions.


Hashimoto suggested the potential for governments to ‘restore order’ through intervention.


LA Long Beach has agreed to trial 24-hour operations following US transport department pressures.




Retail speculators look to metals as HK mini contracts see record volumes


Smaller lot sizes on the LME have seen record volume as smaller traders are priced out of traditional lot sizes.


The rise in volume reflects Asian traders look to profit from ‘directional stories on metals.’


LME mini contracts currently cover copper, aluminium, zinc, lead, nickel, and tin.




Currencies


US$1.1676/eur vs 1.1707/eur yesterday. Yen 111.38/$ vs 110.69/$. SAr 15.046/$ vs 14.937/$. $1.368/gbp vs $1.368/gbp. 0.727/aud vs 0.727/aud. CNY 6.457/$ vs 6.460/$.




Commodity News


Precious metals:


Gold US$1,739/oz vs US$1,758/oz yesterday


Gold ETFs 99.4moz vs US$99.5moz yesterday


Platinum US$981/oz vs US$993/oz yesterday


Palladium US$1,951/oz vs US$1,983/oz yesterday


Silver US$22.36/oz vs US$22.63/oz yesterday




Base metals:


Copper US$ 9,352/t vs US$9,340/t yesterday


Aluminium US$ 2,894/t vs US$2,895/t yesterday


Nickel US$ 18,590/t vs US$18,900/t yesterday


Zinc US$ 3,081/t vs US$3,109/t yesterday


Lead US$ 2,176/t vs US$2,152/t yesterday


Tin US$ 34,950/t vs US$35,540/t yesterday




Energy:


Oil US$80.5/bbl vs US$79.1/bbl yesterday


Oil prices have extended last weeks’ gains in early trading today amid supply concerns as parts of the world sees demand pick up with the easing of pandemic conditions


This has led to Brent now trading above US$80/bbl for the first time in three years


Markets continue to price in concern of the prospect of widespread fuel shortfalls heading into the end of the year.


Yesterday’s rise brought the price of crude almost 55% higher for the year to date


The latest gains for Brent came amid a broad rally in energy markets, with growing competition between Europe and China helping drive gas prices to record levels in recent weeks


A shortfall in global gas production, along with a concerted drive in China to cut down on pollution from heavy industry, is expected to push crude higher as industries shift to using oil to generate power


Chinese authorities’ clean energy drive, part of an effort to stave off an annual choking haze as Beijing prepares to host the Winter Olympics in February, has led to widespread outages that have disrupted factory activity and left many homes without power in the country’s north-east


Chinese power producers have struggled to deal with a sharp drop in production that has pushed thermal coal prices in the country up 96% this year


Oil prices are also rising in China, with crude futures in Shanghai up 27% from a low touched in late August, forcing Beijing this month to announce its first-ever public auction of state petroleum reserves to domestic refiners


Meanwhile, the UK continues to experience a fuel supply crisis triggered by part by a shortage of haulage drivers, with motorists queueing for petrol and stations running dry after a spate of panic-buying


Supply tightness continues to draw on inventories across all regions, particularly prominent in the US and Asia


Rising gas prices as also helping drive oil higher as the liquid becomes relatively cheaper for power generation


Caught short by the demand rebound OPEC+ has had difficulty raising output as under-investment or maintenance delays persist from the pandemic


China’s first public sale of state oil reserves has barely acted to cap gains as PetroChina and Hengli Petrochemical bought four cargoes totalling about 4.43MMbbls


India’s oil imports hit a three-month peak in August, rebounding from nearly one-year lows reached in July, as refiners in the second-biggest importer of crude stocked up in anticipation of higher demand




Natural Gas US$6.161/mmbtu vs US$5.294/mmbtu yesterday


Natural gas prices continue to rise globally as tightening supply concerns spiral


Dutch TTF and UK NBP natural gas prices hit all time settlement highs yesterday, up 11% as the front-month contract is set to soon expire and the European gas crisis worsens


The front-month (October) contract TTFV1 is up by EUR6.635/MWh to EUR76.875, pushed higher in part by the contract rolling off this week


Prices often spike as the contract comes to a close


The UK’s NBP virtual trading hub for natural gas also hit a record-high price, with front-month contracts reaching an all-time high yesterday afternoon


The surge in natural gas prices is also due to a massive supply shortage in Europe, a situation that is quickly spilling over into other countries and other markets, including the coal and oil markets as demand for power exceeds supply


The natural gas crisis is set to intensify as winter heating season approaches, with supplies insufficient to keep up with current demand, let alone build stockpiles for what will be increased demand in the cold season


Europe’s natural gas crisis has prompted European fertilizer producers to curb output, which could send food prices soaring along with the natural gas prices


It has also sparked warnings of blackouts and factory shutdowns


If the winter is colder than normal, natural gas supplies could run even shorter, leaving Europeans and possibly other countries, especially those that can barely afford current energy prices, in the cold


Prices may continue higher tomorrow given the timing of the contract expiration




Bulk:


Iron ore 62% Fe spot (cfr Tianjin) US$117.5/t vs US$115.0/t


Chinese steel rebar 25mm US$891.1/t vs US$885.4/t – Over 80 Chinese steel mills halt production amid power shortages


More than 80 steel mills in China have suspended production in September amid power curbs to steel mills and power rationing in various provinces.


In Jiangsu, large-scale production cuts have led to a supply shortage of steel products, and downstream companies have urged mills to increase deliveries.


At least 20 Chinese regions are facing electricity cuts as the nation’s power crisis deepens, either due to central governments aims to limit consumption or due to power shortages amid a lack of coal.


These 20 regions accounted for around two-thirds of China’s GDP in H1 2021, according to Bloomberg.




Thermal coal (1st year forward cif ARA) US$149.0/t vs US$137.9/t


Coking coal swap Australia FOB US$374.0/t vs US$374.0/t


China Ilmenite Concentrate TiO2 US$378.65/t vs US$378.5/t




Other:


Cobalt LME 3m US$53,380/t vs US$53,380/t


NdPr Rare Earth Oxide (China) US$92,301/t vs US$92,267/t


Lithium carbonate 99% (China) US$26,173/t vs US$25,699/t


China Spodumene Li2O 5%min CIF US$1,080/t vs US$1,060/t


Ferro-Manganese European Mn78% min US$1,804/t vs US$1,809/t


China Tungsten APT 88.5% FOB US$303/t vs US$303/t


China Graphite Flake -194 FOB US$545/t vs US$535/t


Europe Vanadium Pentoxide 98% 8.1/lb vs US$8.2/lb


Europe Ferro-Vanadium 80% 31.75/kg vs US$33.25/kg


Spot CO2 Emissions EUA Price US$74.1/t vs US$70.9/t




Battery News


Ford reveals $11.4bn investment in EV plants


Ford plans to invest $11.4bn to scale up manufacturing of its emission-free cars and pickups.


The move comes as the automaker hopes for zero-emission vehicles to contribute 50% of sales by 2030.


The car company has partnered with SK Innovation for its batteries.


The Company hopes US lawmakers will pass both the $1.5tn and $3.5tn spending bills planned by Biden’s administration which will increase investment in EV infrastructure.




Company News


BHP (LON:BHP) 1,865p, Mkt cap GBP99bn – Influential proxy adviser urges shareholders to vote against climate plan


BHP is bracing for a backlash over its plans to reduce greenhouse gas emissions at next month’s AGM in London, after proxy advisor Glass Lewis has recommended clients vote against the Company’s Climate Transition Action Plan.


Glass Lewis commented: “We are not convinced that support for this resolution is warranted at this time,”.


BHP has pledged to reduce its direct carbon emissions by at least 30 per cent from 2020 levels over the next 10 years with a view to being net zero by 2050.


Glass Lewis said that while it recognised BHP’s significant disclosure on climate change and the steps being taken by the company to minimise its carbon footprint, there was room for improvement. “For example, it is unclear if the company’s current targets are science-based,”


BHP’s emission reduction target does not appear to have been certified by outside organisations which lead standards for corporate climate commitments.




GreenRoc Mining (LON:GROC) 10.25p, Mkt Cap GBP11.4m – Admission to AIM


GreenRoc Mining began trading on AIM this morning, following the divestment of Alba Mineral Resources’ (AIM: ALBA) Greenlandic mining assets.


GreenRoc’s ordinary shares began trading on AIM this morning with an implied market cap of GBP11.1m having raised gross funds of GBP5.12m.


The Company’s assets include the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project, all of which are 100% owned.


GreenRoc’s CEO, Kirk Adams, acts as a consultant to a Big Four accounting firm on mining and natural resource engagements throughout the world, and has also held board positions including CEO at several mining companies.


Lars Brunner sits on the board as an independent NED, and has over 30 years’ experience as an Environmental Consultant, including six years as Arctic Mining and Environment, Business Development Leader for Golder Associates. Mr Brunner has an in-depth knowledge of Greenlandic law, culture, environment and language, having worked in Greenland for many years.


Kirk Adams, CEO of GreenRoc, commented: “GreenRoc’s debut on AIM comes at a time when demand for critical minerals is increasing significantly. With today’s IPO, we are able to offer investors an opportunity to gain exposure to a diversified mix of high-grade commodities designated as critical minerals by the EU and the USA, in a jurisdiction which is both strategically located for multiple end-markets and which is supportive of sustainable resource development.”


“Our objective is to fast-track exploration, supported by our successful GBP5.12 million fundraising, to significantly add to the inherent value of our assets and move towards development. We are in excellent shape to do this, having just completed significant drilling programmes at our flagship assets, the Amitsoq and the Thule Black Sands Projects, and now moving forward to planning and executing the next 12 months of exploration and development work. As such, the coming months will be punctuated with operational updates to drive investor interest and demonstrate the value of what we believe are outstanding assets.”




Rambler Metals and Mining* (LON:RMM) 21.75p, Mkt cap GBP28.2m – Covid19 disruption triggers delay in interim accounts


(Rambler owns 100% of the Ming Copper-Gold Mine)


CLICK FOR PDF


Following yesterday’s announcement that Rambler Metals and Mining has introduced measures to combat rising Covid19 infection rates on the Baie Verte Peninsula, the company has disclosed that it “will be utilising the one month extension to the date by which it is required under AIM Rule 18 to publish its interim accounts for the six months ended 30 June 2021. Accordingly, the Company will publish its 2021 interim accounts by 31 October 2021”.


Availing itself of the reporting extension is attributed to “ongoing COVID-19 related disruption to processes”.


The company confirms that it remains focussed on regaining “its production profile at 1,350 metric tonnes per day at 2% copper in the course of 2021 and … [that it will] … evaluate expansion opportunities from that base”.


Conclusion: Disruption caused by rising levels of Covid19 infections locally is prompting Rambler Metals to defer release of its interim accounts by one month. We look forward to the results which we expect to provide insight into the progress of the company’s drive to restore production rates to the targeted 1,350tpd rate.


*SP Angel act as Nomad and broker to Rambler Metals & Mining




Rockfire Resources (LON:ROCK) 0.98p, Mkt Cap GBP10.6m – Drilling progresses at the Copperhead project


Rockfire Resources reports that it has completed two holes at its Copperhead project in northern Queensland and that a third hole is currently underway.


Although today’s announcement does not contain assay data photographs of the drill core PowerPoint Presentation (londonstockexchange.com) show chalcopyrite (copper sulphide) mineralisation and the company says that its “geologists are logging abundant, narrow, mineralised veins throughout each hole, including veins hosting both copper and molybdenum minerals”.


The company says that the first hole was “drilled to 501.40 m and copper-bearing veins have been recorded from 8.0 m to the end of hole. Chalcopyrite (copper sulphide) veins are still being recorded at 500.87 m … [although] … The frequency of veins bearing visible chalcopyrite fluctuates dramatically throughout the hole, with some sections recording < 1 vein/m and other sections hosting up to 8 veins/m”.


David Price, Chief Executive, said that “The geology and mineralisation being observed in our first drillhole is in line with the geological logs from drilling in 1972. Assays are pending, however, so it would be premature to attempt to correlate copper grades with historical drilling”.


He said that “the presence of the copper sulphides throughout the hole and to a downhole depth of 500 m supports our belief for the potential of a large, mineralised porphyry copper/molybdenum system”.


He also confirmed that “Drilling remains in progress, with another 2-3 holes to be drilled over the coming months”.


Conclusion: Initial drilling at Copperhead has intersected copper mineralisation. We await assay results and news of the later holes in the drilling programme with interest.




Strategic Minerals* (LON:SML) 0.48p, Mkt Cap GBP8.6m – Results from exploration west of Redmoor


Strategic Minerals has reported results of exploration work west of its current resources at Redmoor where the company has previously identified an inferred resource of 11.7mt averaging a tin equivalent grade of 1.17% (0.56% tungsten trioxide, 0.16% tin and 0.5% copper).


The company has now completed a programme of trenching and auger sampling which has “resulted in the identification of four anomalies that may present possible drill targets … across the north flank of the Target Tip Valley, defining a 60m long anomaly greater than 1,000 ppm (0.1%) tin”.


A total of 117 auger samples, taken from an average depth of cm define the anomalies and “Three of the anomalies identified by the auger sampling were followed up by the excavation of three trenches, totalling 169m in length, to a depth of 1m”.


The fourth anomaly “could not be tested by mechanical backhoe due to steep topography associated with its location on the edge of the Target Tip Valley. CRL believes this area represents an extension of the sheeted vein system that hosts the resource at Redmoor”.


One of the trenches, CRT01 identified a 20m wide zone of tin mineralisation including a peak assay of 0.38% tin over a 2m wide interval and a separate 4m wide intersection averaging 0.32% tin within the broader zone. The other two trenches “did not show significant tin, copper, or tungsten grades; however anomalous levels of pathfinder elements were seen, which may indicate the presence of a mineralising system”.


“As a result of this work, the area is considered by the CRL team to be a tin-tungsten drill target, for future follow-up”.


Strategic Minerals also reports that work is continuing on its collaboration in the ‘Deep Digital Cornwall’ initiative “which utilises the Redmoor exploration licence as a digital laboratory … Four field assistants have been recruited and are currently implementing an extensive auger sampling program and high-resolution gravity survey” and results are expected during H1 2022.


Executive Director, Peter Wale, said that trenching and auger drilling was “located around 1,000m to the west of the known Redmoor mineralisation … [and appears to support the company’s view] … of a potential further westward extension of the Redmoor resource. This may have important implications for the size of a future resource. Furthermore, the strong tin results fit well with CRL’s hypothesis that the western mineralisation is likely to be richer in tin, in line with known metal distribution at Redmoor”.


Conclusion: Recent trenching and auger sampling supports the potential of a western and more tin-rich extension to the Redmoor mineralisation which may offer the opportunity to expand the existing 11.7mt inferred resource. We await news of follow-up exploration with interest.


*SP Angel acts as Nomad and Broker to Strategic Minerals




Xtract Resources (LON:XTR) 4.65p, Mkt Cap GBP37.2m – Bushranger Phase 2 drilling


Xtract Resources reports the completion of its first angled drillhole in its Phase 2 drilling programme at its Bushranger copper/gold exploration project in the Lachlan Fold Belt of New South Wales.


The hole is reported to “confirm high grade copper mineralisation at shallower depths than drilled during the Phase 1 exploration drilling programme”.


The company reports an intersection of 184m at an average grade of 0.47% copper, 0.03g/t gold and 3g/t silver (0.51% copper equivalent) from a depth of 204m in hole BRDD-21-008 which was completed at a total depth of 732.6m.


The intersection includes higher grade sections of:


9m at an average grade of 0.84% copper, 0.08g/t gold and 1.8g/t silver (0.90% copper equivalent) from a depth of 204m depth; and


46m at an average grade of 0.66% copper, 0.04g/t gold and 5.1g/t silver (0.72% copper equivalent) from a depth of 252m including 8m averaging 1.27% copper, 0.02g/t gold and 16.0g/t silver from 290m depth; and


26m at an average grade of 0.71% copper, 0.05g/t gold and 3.3g/t silver (0.77% copper equivalent) from a depth of 332m


Hole BRDD-21-008 “tested the north-western extent of the known porphyry mineralisation above BRDD-21-005 and BRDD-21-006 from the Phase 1 drill programme” and the company confirms that drilling is continuing with holes BRDD-21-020 and 021 underway.


The company says that “Increased gold grades were intercepted from 446m with an intercept of 12m @ 0.6 g/t Au and the company intends to model this higher-grade ore shoot” and Executive Chairman, Colin Bird, explained that this gold-enriched section “was beyond the copper mineralisation and suggests there may be an overprint of gold in the system”.


The Bushranger project currently has a JORC compliant inferred resource of 71mt at an average grade of 0.44% copper and 0.064g/t gold based on the Racecourse deposit.


This estimate excludes the results of Xtract Resources’ recently completed Phase 1 drilling and the company says that its Phase 2 programme “is designed primarily to follow up on the results obtained by Anglo American Exploration Australia Pty Ltd (“Anglo”) in 2014 and 2015 and to define further the shallower part of the Resource with a view to possible development of a large open pit. A total of approximately 8,000m of drilling is planned in the first block of 13 holes using two drill rigs, focussing primarily on further definition of the potentially open-pittable, higher-grade copper-gold zone in the central part of the resource area”.




Recent Interviews:


IGTV: Stock picks in the small-cap mining space:


Evolution of Chinese construction and implications for commodity demand: https://youtu.be/jB2nURL8uPw


VOX Markets: 10/06/21: https://audioboom.com/posts/7884446-john-meyer-talks-about-cornish-metals-empire-metals-anglo-american-ncondezi-energy-mkango-r


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.




No.1 in Copper: “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”


No1. In Gold: “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”


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 – [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




Sales


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






SP Angel


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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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