Today’s Market View – Centamin, Caledonia Mining, GoldStone Resources and more…

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SP Angel . Morning View . Thursday 11 11 21


Gold jumps on US inflation data Covid lockdowns




Today is Armistice Day


Private financing – We are raising funds for a new gold mine and project development in Ghana


We are raising funds for an advanced gold project in Ghana with good upside exploration potential. The project offers potential to fast-track gold production using a low-cost heap leach.


Management are experienced and are looking to IPO within 18 months. Please contact us if you are interested in pre-IPO funding of the opportunity




Caerus Mineral Resources (Caerus Mineral Resources PLC (LSE:CMRS)) – JV agreement with Bezant Resources


Caledonia Mining* (Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL)) – New record quarterly gold production at Blanket drives increased profit and EBITDA


Centamin (Centamin PLC (TSX:CEE, LSE:CEY, OTC:CELTF)) – Kona resource report


Endeavour Mining (Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF)) – Expecting to exceed 2021 production guidance


GoldStone Resources (AIM:GRL)* (GoldStone Resources (AIM:GRL)) – BUY – GBP1m raised to fund exploration at Akrokeri


Largo (CVE:LGO) – Stronger vanadium prices lift quarterly earnings


Mkango Resources* (Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF)) – Mkango renews highly prospective uranium license


Oriole Resources (Oriole Resources PLC (LSE:ORR)) – Renewal of Hodine license




Gold jumps as US inflation hits 31-year high rising 2% overnight to a high of $1,869/oz


Gold prices are being driven by US CPI data which shows a 6.2% yoy increase in October


The dollar hit a 16-month high of 94.9 on traders’ expectations of an early rate hike with 10-year Treasury yields hitting a 7-week high at 1.592%.


The Volatility index also hit a 1-month high as US consumer inflation increasing at its fastest pace y-o-y since 1990.


Core price index (ex. Food and energy) up 4.6% in Oct. vs Oct 2020. Largest rise since 1991.


CPI seasonally adjusted rise of 0.9% significant increase from Sept.’s 0.4%.


The Biden administration announced they are ‘going after this’ with a ‘set of actions and interventions’




Chinese steel demand will contract this year – ArcelorMittal


ArcelorMittal expects Chinese steel demand to contract this year due to the crisis facing the country’s real estate sector.


China accounts for more than 50% of global steel demand, however a debt crisis originated by the fallout of Evergrande has weighed on economic activity and reduced demand for commodities like steel.


ArcelorMittal expects demand to decline slightly year-on-year, revised down from the 3-5% annual growth the company predicted in July.


China’s property and construction industries contracted in Q3 21 for the first time since the start of the pandemic, with the sector accounting for 40% of national steel consumption.


The steelmaker expects steel consumption outside of China to rise 12-13% this year as economies emerge from lockdowns.


Also hurting global steel demand is the automotive sector, with ArcelorMittal commenting that orders were cancelled from the sector due to the semiconductor shortage.




Tin hits 2-week high on Myanmar Covid outbreak


China has closed a key port with Myanmar as cases rise in the world’s top refined tin producer.


Myanmar recorded an additional 1200 cases yesterday.


Myanmar provides over 80% of China’s tin supply, integral for soldering in chips and electronics.


LME tin prices rose 1.1% to GBP37.7k/t. Shanghai up 5% to $45k/t.


Global tin stocks fell to multi-year lows even though most Chinese manufacturers may have secured supply to the year-end according to a trader on Reuters.


Chinese domestic production rose 2.8% month on month in October, exporting 9,800t having been a net importer last year.


Malaysia’s MSC’s is looking to restore refining capacity but it is going to take some time to alleviate the shortage of material.




Day – 21 of our borehole drilling


The drillers have now completed seven 125m boreholes for our ground-source heating system.


The first four holes are to feed an 18kW heat exchanger at our main hovel along with a further three holes to feed a 12kW system next door.


It has taken nearly three weeks to drill and prime seven drill holes with heavy-duty PVC pipe for the heating system.


Our drive is now coloured with grey clay partly due to exceptional heavy rain 10 days ago, a small leak in the settling tank and the transfer clay chippings from the drill box to the nearby skip


One unforeseen issue was when the skip hire company refused to take away our beautiful oxford clay citing its wet mass as an unsecure load.


The drillers also lost time on a day of maintenance, drill pump replacement, main pump repair and pipe pusher new parts.


The team also broke two reels of expensive PVC pipes and one drilling assistant was fired for taking an unplanned day off.


Conclusion: Full marks to the lead driller from Croatia and his colleagues for their polite consideration, practical problem solving and effort in getting the job done.


We would not hesitate to recommend the drilling team for their problem-solving abilities. The team mainly work on new housing developments but are also drilling at a town house in Chelsea in a fairly tight space.


We note, it’s a good idea to have access to a decent water source, be pretty interested in drilling, fairly tolerant of all the kit involved and determined to want a borehole sourced heating system to go through the disruption of the drilling campaign.




Dow Jones Industrials -0.66% at 36,080


Nikkei 225 +0.59% at 29,278


HK Hang Seng +1.06% at 25,261


Shanghai Composite +1.15% at 3,533




Economics


China – Credit growth slowed in October due to seasonal factors but is expected to pick up towards the end of the year as the central bank increases targeted lending to support the economy, Bloomberg writes.


Credit expansion slowed since February, as the PBOC scaled back pandemic stimulus while slowing economic growth also weighed on demand for new loans.


The central bank recently told banks to ease lending restriction to the property sector amid liquidity crisis among major developers in the country.


New Yuan Loans (CNY bn): 826 v 1,663 in September and 800bn est.


Aggregate Financing (CNY bn): 1,590 v 2,902 in September and 1,700 est.




Evergrande narrowly avoids defaults, Chinese officials plan to slowly dismantle property giant


Evergrande reportedly made a last-minute payment of $148mn yesterday, the last day of its 30-day extension. (SCMP)


It is now required to pay $366mn in payments by January.


Reports in Chinese media suggest the developer’s founder Hui Ka-yan has mortgaged his Hong Kong house.


The WSJ reports Beijing’s plans to take apart the debt laden Evergrande over the course of several years.


Evergrande has $20bn in offshore debts which are seen as a secondary concern to Beijing – unfinished properties will take priority. (WSJ)


Beijing has ordered local officials to:


use police to monitor public discontent.


employ accountants to examine Evergrande’s finances.


arrange the completion of unfinished projects.


1mn properties were sold by Evergrande but remain unfinished.


Evergrande has been ordered to deposit payments made for unfinished properties into government escrow accounts.


Several projects have been scrapped, with funds returned to home buyers.


Several suppliers remain unpaid – construction and decoration, wood suppliers, architecture firms, tile makers etc.


Some firms have opened claims against the developer in local courts.


S&P Global forecast China home sales to fall 10% in 2022 and 5-10%.




Chinese magnesium shipments expected to arrive this month, easing auto manufacturers’ concerns


Industry sources expect magnesium imports from China to arrive in Nov. (S&P Global)


European car makers had expressed concern over a lack of shipments during China’s energy crisis.


A group representing European industry leaders had suggested they may run out of magnesium by November end.


China controls 95% of Europe’s magnesium supply. (EAMA)


China magnesium prices have halved since their Sept. highs of $11.1k/t.


Production has been increasing since mid-October. (Sunlight Metal Consulting)




La Mancha and Sawiris look to battery metals in bid to diversify


Major gold fund La Mancha’s Naguib Sawiris has stated he is trying ‘to diversify into other metals near gold’.


These include ‘nickel, zinc, titanium, and lithium – battery metals’, he told Reuters.


The $1.4bn fund will retain its interest in acquiring gold assets.


Sawiris has a stake in Altus Strategies.


*SP Angel acts as Nomad and Broker to Altus Strategies




UK – The economy climbed 0.6%mom in September, beating estimates for a 0.4% increase, narrowing the gap between its pre-pandemic level.


Growth in three months to September came in at 1.3%qoq, compared to 1.5%qoq forecast by the BOE, on the back of downward revisions to figures for both August and July.


The economy is now only 0.6% short of Feb/20 levels suggesting GDP has largely recovered from the Covid-19 hit.




Currencies


US$1.1463/eur vs 1.1569/eur yesterday. Yen 114.04/$ vs 113.12/$. SAr 15.409/$ vs 15.101/$. $1.339/gbp vs $1.356/gbp. 0.730/aud vs 0.737/aud. CNY 6.404/$ vs 6.393/$.




Commodity News


Precious metals:


Gold US$1,856/oz vs US$1,824/oz yesterday


Gold ETFs 98.0moz vs US$97.9moz yesterday


Platinum US$1,088/oz vs US$1,055/oz yesterday


Palladium US$2,048/oz vs US$2,030/oz yesterday


Silver US$24.91/oz vs US$24.30/oz yesterday


Rhodium US$14,350/oz vs US$14,350/oz yesterday




Base metals:


Copper US$ 9,579/t vs US$9,616/t yesterday


Aluminium US$ 2,639/t vs US$2,580/t yesterday


Nickel US$ 19,720/t vs US$19,425/t yesterday


Zinc US$ 3,288/t vs US$3,290/t yesterday


Lead US$ 2,354/t vs US$2,344/t yesterday


Tin US$ 37,770/t vs US$37,430/t yesterday




Energy:


Oil US$82.8/bbl vs US$85.1/bbl yesterday


Oil prices have been hit by a surge in the US dollar after President Joe Biden said his administration was looking for ways to reduce energy costs amid a broader surge in inflation


Brent and WTI futures dropped sharply as traders sold out of riskier assets, including stocks and commodities, driven by expectations that central bankers will take steps to curb rising prices


In the STEO, the EIA projected average prices for retail regular grade gasoline would decline from US$3.32 per gallon in November to US$3.16 in December and US$3.00 in the first quarter of 2022.


Any release from the US SPR, although it would likely have a temporary bearish effect on prompt prices, is not a lasting solution for an imbalance between supply and demand


Global oil spare production capacity could diminish next year as air passengers return to the skies, removing further reserves


Travelers took off from the US again, while the passage of Biden’s US$1trn infrastructure bill and better-than-expected Chinese exports underlined a recovering global economy


In India, fuel demand rose in October to a seven-month peak, with gasoline sales surging to an all-time high




Natural Gas US$4.984/mmbtu vs US$4.942/mmbtu yesterday


European natural gas prices remain flat below monthly highs as Gazprom announced that it had approved and started implementing a plan to send natural gas into five storage sites across the continent


The volumes and the transportation routes for the gas flows have been determined, concerns on the market and sending prices lower


Natural gas prices at the Dutch TTF hub, the benchmark for European gas, traded 2$ lower early yesterday


US supply of natural gas increased slightly last week


The EIA expects Henry Hub prices will decrease after the first quarter of 2022, as production growth outpaces growth in LNG exports, and will average US$4.01/mmbtu for the year


US exports of LNG are establishing a record high this year, a new record high anticipated for next year


The EIA expects LNG exports to average 9.7Bcf/d this year (3.2Bcf/d more than the 2020 record high of 6.5Bcf/d) and to exceed annual pipeline exports of natural gas for the first time


The year-on-year increase in LNG exports coincides with slight growth in US natural gas production


US dry natural gas production is expected to average 92.6Bcf/d this year, which is 1.1Bcf/d more than in 2020 but 0.3Bcf/d less than in 2019




Uranium UXC US$46.4/lb vs $45.8/lb yesterday




Bulk:


Iron ore 62% Fe spot (cfr Tianjin) US$88.6/t vs US$86.7/t


Chinese steel rebar 25mm US$742.5/t vs US$747.2/t


Thermal coal (1st year forward cif ARA) US$105.0/t vs US$109.8/t


Thermal coal swap Australia FOB US$149.0/t vs US$160.0/t


Coking coal swap Australia FOB US$332.0/t vs US$330.0/t




Other:


Cobalt LME 3m US$59,500/t vs US$59,500/t


NdPr Rare Earth Oxide (China) US$122,964/t vs US$123,964/t


Lithium carbonate 99% (China) US$27,872/t vs US$27,765/t


China Spodumene Li2O 5%min CIF US$1,820/t vs US$1,770/t


Ferro-Manganese European Mn78% min US$2,115/t vs US$2,134/t


China Tungsten APT 88.5% FOB US$313/t vs US$315/t


China Graphite Flake -194 FOB US$650/t vs US$635/t


Europe Vanadium Pentoxide 98% 7.5/lb vs US$7.5/lb


Europe Ferro-Vanadium 80% 31.85/kg vs US$32.05/kg


China Ilmenite Concentrate TiO2 US$386/t vs US$387/t


Spot CO2 Emissions EUA Price US$70.1/t vs US$70.1/t




Battery News


Crown Estate considering 4GW floating wind in Celtic Sea


The Crown Estate have published details of plans for a wind leasing round in the Celtic Sea that could see up to 4GW of floating wind capacity.


The proposed leases would focus on two project types – early-commercial scale projects of around 300-350MW, and full-commercial scale projects of up to 1GW.


The UK is leading the way globally when it comes to floating wind – two of the three operational floating wind farms are located off the coast of Scotland.


The UK also has a pipeline of 8.8GW of floating wind capacity, as of September 2021, according to RenewablesUK, with 1GW of capacity expected to be online by 2030.


The announcement of the new leasing plans could see a potential floating capacity of over 12GW by early stages of the next decade.




DfT and ORE Capital aiming for zero-emission offshore wind vessels by 2025


The UK Department for Transport (DfT) and the Offshore Renewable Energy (ORE) Catapult have launched an initiative that would see zero-emission vessels deployed at North Sea offshore windfarms by 2025.


‘Operation Zero’ is informed by research conducted by ORE Catapult and the Workboat Association, who have built a roadmap outlining a route to the decarbonisation of North Sea offshore wind operations and maintenance (O&M).


The research suggests that as many as 1,400 new vessels for O&M work alone, including over 300 service offshore vessels, will be built between now and 2050 to manage the expansion of European offshore wind from 25GW today to 400GW.


Increasing the pace of decarbonisation would result in a reduction in emissions of 1.2mt of CO2 equivalent per year compared with a ‘business as usual’ scenario.


The plans will also benefit UK and North Sea shipyards – capturing 25% of the European O&M vessel-building market could generate revenue of between GBP2.2 to GBP4.2 billion for UK firms out to 2050, and support 1,400 direct and 2,500 indirect jobs.


There has been no specific reference to the technology that would be used to power these vessels, but previous government funding has been awarded to projects developing offshore vessel ‘charging stations’ and vessels that run on hydrogen.




Johnson Matthey to end battery materials venture


Johnson Matthey have announced its intention to leave its battery materials venture, citing inadequate potential returns from a capital-intensive battery materials unit and the market becoming commoditised.


The company has been working to commercialise its range of high nickel cathode materials, principally for the automotive industry.


The company had laid out plans in May to spend up to GBP600m this financial year to bolster investment in battery materials and hydrogen technology to serve Europe’s growing EV market.


The board, however, concluded that potential returns from the battery materials unit would not justify further investments and was looking at the sale of all or part of the unit.


Johnson Matthey had attempted unsuccessfully to find a partner for its battery materials venture, earlier this year.




Company News


Caerus Mineral Resources (Caerus Mineral Resources PLC (LSE:CMRS)) 20.25p, Mkt Cap GBP12.6m – JV agreement with Bezant Resources


Caerus Minerals reports the signing of its joint venture agreement with Bezant Resources covering the exploration of its Troulli, Kokkinapetra and Anglisides licences Cyprus .


The agreement, which takes immediate effect, backdates Bezant’s financial contribution to the start of drilling at the Trouli prospect in September and commits “an initial sum of USD1.0 million towards resource development and to take the Project to feasibility”.


“Caerus will manage the exploration and resource development phase of the programme, with Bezant will be responsible for;


Project feasibility studies and mine development; and


Arranging funding and guarantees required by third party funders for plant and infrastructure funding to commence mining”


Future production will result in Caerus being paid “70% of excess cash from operating cash flow after commercial production is achieved until all direct exploration costs have been refunded”.


Conclusion: Signing of the joint-venture agreement with Bezant Resources formalises the agreements originally announced in August 2021 to take the Cypriot projects forward. We await further news as the exploration progresses.




Caledonia Mining* (Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL)) 1,000p, Mkt Cap GBP118m – New record quarterly gold production at Blanket drives increased profit and EBITDA


Caledonia Mining reports a 25.6% increase in gross profit and a 30% rise in EBITDA for the three months to 30th September with gross profit of $15.7m (Q3 2020 – $12.5m) and EBITDA of $15.1m (Q3 2020 – $11.7m).


EBITDA margins are maintained at 45% (QGBP 2020 – 46%).


The financial result stems from the Blanket mine’s record quarterly gold production of 18,965oz at an all-in-sustaining cost of $909/oz – 19% below the $1,119/oz achieved during Q3 2020.


Caledonia Mining reports a 30th September cash balance of $13m (Q3 2020 – $21.6m).


As previously reported, “Production guidance for the year to December 31, 2021 has been narrowed at the top end of previous guidance at 65,000 to 67,000 ounces” compared to the previously announced wider range of 61-67,000oz.


The record quarterly gold production brings the year-to-date total from Blanket to 48,872oz (2020 – 42,887oz) and “reflects the contribution of Central Shaft”.


The company also comments on its other projects confirming that it has now completed the purchase of the Maligreen mining claims located in the Zimbabwe Midlands and is continuing its evaluation of the Connemara North property which it has under option as well as to “consider further investment opportunities in Zimbabwe and elsewhere”.


CEO, Steve Curtis, confirmed that the “completion of Central Shaft and the resultant increase in production means that Caledonia can execute other areas of its growth strategy, such as the agreement to acquire Maligreen which was announced during the quarter, which has an estimated inferred resource of 940,000 ounces of gold in 15.6 million tonnes at a grade of 1.88 grammes per tonne”.


He explained that “Caledonia’s immediate strategic focus following the commissioning of the Central Shaft project earlier this year is to increase production, reduce operating costs and increase the flexibility to undertake further development and exploration, thereby safeguarding and enhancing Blanket’s long-term future”.


Mr. Curtis also explained that the payment of the increased quarterly dividend of 14c/share in October “was the seventh increase in the quarterly dividend since October 2019 and an increase of 104 per cent from 6.875 cents in October 2019” and observed that the “dividend increases reflect the strong financial and operating performance of the business”.


Conclusion: The record production in Q3 follows a record in the preceding quarter and reflects the impact of the Blanket mine Central Shaft project which was completed earlier this year and secures the long-term future of the mine into the 2030s.


*SP Angel mining analysts have visited Caledonia’s mining operations in Zimbabwe




Centamin (Centamin PLC (TSX:CEE, LSE:CEY, OTC:CELTF)) 102.1p, Mkt Cap GBP1,155m – Kona resource report


Centamin confirms the filing of its NI-43-401 Technical Reoprt for the Kona gold deposit which forms part of its ABC project in Cote d’Ivoire .


In a news release issued in September the company reported an increased inferred resources estimate of 72mt at an average grade of 0.93g/t gold (2.16moz) compared to the 2020 estimate of 0.5m oz within 16mt at an average grade of 0.9g/t gold for its ABC project.


The estimate, which extends up to 250m below surface, is based on a drill spacing of 50x50m and on a cut-off grade of 0.5g/t gold.


Conclusion: The Technical Report should amplify the details of Centamin’s 2.16m oz inferred resource estimate and provide more geological details of the ABC licence area and the Kona deposit in Cote d’Ivoire.




Endeavour Mining (Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF)) 2,100p Mkt Cap GBP5.05bn – Expecting to exceed 2021 production guidance


Endeavour Mining reports that, following production of 382,000oz of gold at an all-in-sustaining cost (AISC) of US$904/oz, year-to date production of 1.14moz at an AISC of US$875/oz positions the company to exceed its previously published 2021 guidance range of 1.365-1.495moz at an AISC of between US$850-900/oz.


The company says that its “outperformance is led by the Hounde, Ity, Sabodala-Massawa and Mana mines where full year production is expected to be near or above the top end of their respective guidances, while the other mines are tracking within guidance. In addition, the Company is benefiting from the successful rapid integration of the Teranga Gold assets and associated synergies”.


Quarterly production of 106,000oz from Sabodala-Massawa (Q3 2020 -nil) at an AISC of US$655/oz underlines the significance of the US$2bn share-based acquisition of Teranga wjhich was completed in February 2021 and also brought in the Wahgnion mine which produced 34,000oz at an AISC of US$1,097/oz during the quarter.


The company says that after operating cash generation of US$312m during the quarter, offset by investment, outflow for financing activities totalling and exchange rate movements totalling US$385m, its cash balances declined by US$73m during the quarter to US$760m leaving the company with net debt of US$70m.


. Commenting that “Following a strong third quarter performance, we are on track to achieve a record year” President & CEO, Sebastien de Montessus, said that “Our growth pipeline continues to develop with the Sabodala-Massawa phase 1 expansion on track for completion in Q4-2021. Additionally, our Definitive Feasibility Studies are progressing well for the Sabodala-Massawa Phase 2 expansion, the Fetekro and Kalana projects”.


He also said that “We continue to demonstrate exploration success, with the Group on track to delineate over 2.5 million ounces of Indicated resources in 2021, significantly more than the expected annual depletion”.




GoldStone Resources* (GoldStone Resources (AIM:GRL)) 13.9p, Mkt Cap GBP63m – GBP1m raised to fund exploration at Akrokeri


BUY


GoldStone has raised GBP1m before expenses through a placing of 8,695,652 new ordinary shares at a price of 11.5 pence per Placing Share with a new institutional shareholder.


Proceeds will be predominantly used to fund exploration at the former underground mine at Akrokeri which was closed in 1909 having produced 75,000oz Au at 24 g/t.


Work will expand upon previous drilling comprising 19 Diamond Drill holes totalling 5,200m, which the company re-logged in 2018 to discover quartz veins up to 8 g/t including 1.5m @ 52.1 g/t and 17m @ 11 g/t, with individual assays up to 25 g/t.


Proceeds are to also be used for costs associated with the expansion of the Mining Lease Area for the Homase Mine, including an Environmental Impact Assessment and crop compensation, and in expanding the Mineable Resource of the Homase Mine.


Funds will also be used to ramp up mining operations at Homase which includes moving to double shift, with first production expected to commence by the end of November 2021.


Conclusion: Additional funding allows GoldStone to partly turn its attention to the highly-prospective Akrokeri underground mine, which produced 75,000oz at a recovered average grade of 24g/t with drill results since showing even higher-grade mineralised intercepts including 1.0m at 51g/t Au. Meanwhile, the company is in the final phase of plant construction at its Homase Mine which enables the company to strip, elute, electrowin and thereafter smelt dore bars without reliance on third parties or need to pay toll treatment.


*SP Angel act as Nomad and Broker to GoldStone Resources




Largo (CVE:LGO) C$14.3, Mkt Cap C$927m – Stronger vanadium prices lift quarterly earnings


Q3 revenues climbed to US$53.9m (+96%yoy) with realised prices up 69%yoy ($9.1/lb) and V2O5 equivalent sales up 16%yoy (2.7kt).


Quarterly Maracas Menchen Mine production came in at 3.3kt V2O5 (+6%yoy).


Lower sales during the quarter were attributed to global logistical delays.


Quarterly cash operating costs averaged $4.01/lb and $3.53/lb ex royalties (Q3/20: $3.50/lb and $3.14/lb).


PBT came in at $13.5m (Q3/20: $3.4m).


PAT amounted to $9.2m (Q3/20: $2.5m).


CFO totalled $15.5m (Q3/20: $0.4m) with FCF coming in at $9.4m (Q3/20: -$4.0m).


Closing Q3 cash position stood at $87.6m with outstanding debt (including leases) at $17.6m.


2021 production and sales are guided at 11.4-11.8kt and 11.2-11.8kt V2O5 equivalent, respectively.


The Company dropped “Resources” from its name earlier this week to reflect new corporate strategy to vertically integrate its vanadium production facilities with its vanadium redox energy storage technology.


The Company agreed $4.2m funding from the US Department of Energy to expand US based manufacturing of redox flow batteries.


In July, Largo signed a sales contract with Enel Green Power Espana for a 5h/6.1MWh VCHARGE vanadium redox flow battery for a project in Spain.




Mkango Resources* (Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF)) 34p, Mkt Cap GBP52m – Mkango renews highly prospective uranium license


Mkango reports that the government of Malawi has renewed the Thambani uranium, tantalum and niobium exploration licence and issued four retention licences RTL0015/16/17/18/21 granted for five years from 20th October 2021, covering a total of 98.4km2.


The Thambani licenses are located in the Southern Region of Malawi, approximately 120km west of Blantyre which is served by Chileka International Airport.


Mkango’s exploration activities to date have focussed on the Thambani Massif, a large body of nepheline syenite gneiss which is expressed in two prominent ridges.


Exploration activities include Landsat7 and ASTER satellite imagery for the licence area followed up by systematic ground radiometric surveys to confirm and detail known airborne anomalies.


Additional work includes reconnaissance geological mapping, trenching, and litho-geochemical sampling programmes.


Work has identified a number of potential uranium and associated niobium-tantalum targets over the Thambani Massif and in nearby areas.


Country-wide radiometric data was also acquired by Hunting in 1984 and published by the Malawi Geological Survey showed the Thambani area was one of six key areas subject to subsequent geological ground investigations and considered to have potential for economic uranium mineralisation.


A systematic ground radiometric survey completed by Mkango confirmed and detailed two distinct uranium anomalies, occurring along the East Ridge and at the western foot of the West Ridge, measuring 3 km by 1.5 km and 1.5 km by 0.4 km respectively.


Mkango’s most advanced exploration at the site occurred in 2019/20, with lithogeochemical sampling program on outcrops within radiometric anomalies on the East Ridge.


Field observations and assay results suggested that mineralisation occurs in zones that are conformable with the gneissic banding; this indicates potential for U-Ta-Nb mineralisation along a strike length of >3km.


Ten trenches excavated in 2019 showed that the foot of the West Ridge where a small pit excavated in 2017 yielded the two highest-grading samples.


Assay results from 128 rock samples collected during the 2019/2020 exploration programme returned uranium, tantalum and niobium values ranging up to 0.74% U3O8, 0.41% Ta2O5 and 3.24% Nb2O5.


Mkango is now evaluating data to locate targets that could potentially be drilled and tested from a series of collars sited downslope of the mineralised surface zones.


*SP Angel act as Nomad and Broker to Mkango Resources




Oriole Resources (Oriole Resources PLC (LSE:ORR)) – 0.41p, Mkt cap GBP8.1m – Renewal of Hodine licence


Oriole Resources reports that its 24.92% owned Thani Stratex Resources has renewed its 93% owned Hodine exploration licence in Egypt which includes the Hutite and Anbat exploration projects.


The company confirms that drilling is underway as part of the holder of the residual 7% interest in Hodine, Red Sea Resources’ commitment to “spend US$1.2m on exploration within 12 months in return for a 51% interest in Hodine”.


Commenting on the licence renewal, Oriole Resources’ CEO, Tim Livesey, said that “With existing JORC and non-JORC resources on the Licence from previous drilling, we expect there will be continued success in resource development on this promising Licence”.




IGTV: Cornish Metals*, Mkango *, Kodal * – Fed to consider potential China slowdown when looking at rates https://youtu.be/FjIMHHXKzXg


VOX Markets: 03/11/21: https://audioboom.com/posts/7973357-john-meyer-on-iron-ore-china-s-slowing-growth-cornish-metals-kodal-minerals-ramble-metals


*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.




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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


Prince Frederick House


35-39 Maddox Street London


W1S 2PP




*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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