SP Angel Morning View -Today’s Market View, Monday 10th March 2025

Copper edges lower on weak China economic data and concerns over US slowdown

MiFID II exempt information – see disclaimer below

Celsius Resources (CLA LN) – A$3.3m raised to help development of the MCB project

Cora Gold (CORA LN) – Permit moratorium partially lifted

Empire Metals* (EEE LN) – Confirmation of high-grade TiO2 product potential

New Frontier Minerals (NFM LN) – Sale of the Broken Hill East Project, NSW

Orosur Mining* (OMI LN) – Drill results as focus shifts north

Power Metals Resources* (POW LN) – Extension of discussions over Saudi exploration project

Sovereign Metals* (SVML LN) – Test work beats quality benchmarks on purification of coarse flake graphite from Kasiya test mine in Malawi

Versarien* (VRS LN) – Versarien agrees to supply Graphinks™ graphene to Montana Química for paint, preservatives, wood coatings, composites and lubricants.

Copper ($9,550/t) edges lower on weak China economic data and concerns over US slowdown

• Copper prices have rebounded from last week’s recent highs, having touched $9,730/t.
• The metal is being weighed down by weak Chinese economic data, showing continued deflation as CPI fell faster than expected.
• Consumption in China remains weak, whilst the property crash continues to unfold.
• Focus continues to be on potential for Chinese stimulatory measures, although the NPC meeting failed to fuel optimism.
• Copper continues to trade at a significant premium in the US, owing to tariff fears.
• Trump triggered further concerns over US economic growth yesterday, stating the economy faces ‘a period of transition.’
• The dollar continues to weaken, providing some support to metals, despite concerns of slowing global growth.

Sharepickers: Video – Last Time this Happened Gold went up by 180%:  

Economics

US – Equity futures pull back on potential recession concerns as President Trump warns of a possibly painful transition period.

• While avoiding ruling out a recession in the US, commenting on economic outlook President Trump said that “there is a period of transition, because we’re doing is very big… we’re bringing wealth back to America… that’s a big thing, and there are always periods, it takes a little time”.
• Fed Chair Jerome Powell on Friday said that the economy remained “in good shape” despite the elevated “uncertainty”.
• Earlier the central bank kept rates unchanged in the 4.25-4.50% range opting for a wait and see approach regarding the effect of new administration trade policies on labour and inflation.
• Nevertheless, markets have been increasingly pricing in more cuts this year with the first one expected as early as June for a total of three this year.
• Meanwhile, labour numbers came below estimates on Friday with headline numbers along with downward revision to previous periods disappointing.
• NFPs (Feb/Jan/Est): 151k/125/(revised from 143k)/160k
• Private Payrolls (Feb/Jan/Est): 140k/81k(revised from 111k)/145k
• Jobless Rate (Feb/Jan/Est): 4.1/4.0/4.0
• Av Hourly Earnings (%mom, Feb/Jan/Est): 0.3/0.4(revised from 0.5)/0.3
• Av Hourly Earnings (%yoy, Feb/Jan/Est): 4.0/3.9(revised from 4.1)/4.1
• US Fed potential shutdown – Office of Budget Responsibility says none of the twelve full year appropriations bills have been passed.

Trump says he believes Putin wants peace

• Putin’s actions suggest Putin wants the whole of Ukraine.
• Putin appears to enjoy outmanoeuvring western leaders.
• We hope Elon Musk is smart enough to outfox the ageing KGB strategist

China – Consumer prices contract for the first time just over a year in February pointing to a weak domestic demand and deflationary concerns.

• Adjusting for seasonality CPI actually climbed 0.1%yoy, although, representing still only a modest increase.
• Core measure also recorded a negative reding (-0.1%yoy), only the second time the gauge has contracted over more than 15 years.
• Producer prices extended the run of negative readings to 29 months now.
• CPI (%yoy, Feb/Jan/Est): -0.7/0.5/-0.4
• PPI (%yoy, Feb/Jan/Est): -2.2/-2.3/-2.1

Canada – Mark Carney is about to replace Justin Trudeau as a new leader of the Liberal Party securing almost 86% of the leadership vote.

• Carney pledged to keep nation’s retaliatory tariffs on the US until “the Americans show us respect – and make credible, reliabl commitments to free and fair trade”.
• General elections will need to be held by October.

EU – Q4 GDP rose 1.2% yoy in Q4 vs -1.0% in Q3 yoy

• Q4 GDP rose 0.2% vs 0.4% in Q3 qoq

Germany – Industrial production climbs beating estimate but exports plunge in a sign of challenges facing the incoming government.

• Industrial Production (%mom, Jan/dec/Est): 2.0/-1.5(revised from -2.4)/1.5
• Exports (%mom, Jan/dec/Est): -2.5/2.5(revised from 2.9)/0.5
• Imports (%mom, Jan/dec/Est): 1.2/1.6(revised from 2.1)/0.5
• Factory orders fell 7% in January after rising 5.9% in December

Mexico – Illegal crossings fell 98% with one crossing point numbers falling to 30 from from 1,500/d.

Ukraine/US – Ukrainian and US officials are meeting in Saudi Arabia this week to finalise the minerals deal and potential start of ceasefire talks.

• Kyiv is seeking to offer a partial ceasefire with Russia for range drone and missile strikes and operations in Black Sea hoping that would persuade White House to resume intelligence sharing and arms supplies. (FT)
• In a move to put pressure on Russia to also join cease fire talks, President Trump threatened further sanctions on Moscow if Putin declines to negotiate.

Scenario analysis of Trumponian policies suggest Trump not be able to maintain high tariffs without damaging the US economy

Will Trump be able to slash Federal taxes in time to offset potential recession from higher tariff disruption

• Trump keeps hard tariffs in place long term

o   Disruption causes US economy to go into recession

o   US dollar weakens

o   Rapid reshoring of manufacturing continues to lift jobs and wages

o   Recession keeps inflation low but inflation is coming

o   Fed cuts rates to support economy

o   Federal income taxes slashed, but when?

o   China stimulates domestic consumption and enjoys consumer boom. State debt levels remain high

• Trump maintains tariffs but makes exceptions in critical areas, such as automotive
• Disruption causes US economy to go into recession
• US dollar weakens
• Rapid reshoring of manufacturing lifts jobs and wages
• Recession keeps inflation low but inflation is coming
• Fed cuts rates to support economy
• Federal taxes cut but not to zero
• China stimulates domestic consumption and enjoys consumer boom. State debt levels remain high
• Trump U-turns and reduces tariffs to match other countries
• Little disruption US economy lifts
• US dollar strength keeps input prices in check
• Slow reshoring of manufacturing helps jobs and wages
• Inflation holds 2.5-3.5%
• Fed cuts rates to reduce everyone’s borrowing costs
• Federal tax cuts later in the year from savings on cuts to state workforce may enable some
• China continues to export lots of products to the US. State debt levels reduce
• Trump raises tariffs even higher than currently proposed
• Disruption leads to potential Depression
• US dollar collapses
• Reshoring slows – no one can afford the goods anyway
• Deflation replaces inflation
• Fed cuts rates to negative levels
• Federal tax cuts don’t help unemployed people
• China stimulates domestic consumption. State debt levels present systemic risk

Currencies

US$1.0816/eur vs 1.0853/eur previous. Yen 147.23/$ vs 147.49/$. SAr 18.307/$ vs 18.069/$. $1.289/gbp vs $1.292/gbp. 0.632/aud vs 0.632/aud. CNY 7.264/$ vs 7.236/$

Dollar Index 107.354 vs 107.371 previous

The dollar index is at its lowest since November following weak China CPI data over the weekend.

Precious metals:         

Gold US$2,901/oz vs US$2,920/oz previous

Gold ETFs 86.1moz vs 86.0moz previous

Platinum US$970/oz vs US$975/oz previous

Palladium US$952/oz vs US$948/oz previous

Silver US$32.4/oz vs US$32.6/oz previous

Rhodium US$5,625/oz vs US$5,300/oz previous

Base metals:   

Copper US$9,516/t vs US$9,653/t previous

Aluminium US$2,689/t vs US$2,690/t previous

Nickel US$16,515/t vs US$16,275/t previous

Zinc US$2,871/t vs US$2,911/t previous

Lead US$2,039/t vs US$2,030/t previous

Tin US$32,585/t vs US$32,495/t previous

Energy:           

Oil US$70.4/bbl vs US$70.0/bbl previous

• Oil falls to lowest since Sept after weak China CPI data over the weekend.

• The US Baker Hughes rig count was down 1 to 592 units last week (-30 or 5% y/y)
• Oil rigs were flat at 486 units (-18 y/y) and gas rigs down 1 to 101 units (-14 y/y), as the Haynesville Formation lost 2 to 29 units (-9 y/y).

Natural Gas €40.2/MWh vs €37.3/MWh previous

Uranium Futures $63.9/lb vs $64.1/lb previous

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$106.9/t vs US$106.9/t

Chinese steel rebar 25mm US$484.3/t vs US$487.1/t

HCC FOB Australia US$182.0/t vs US$184.8/t

Thermal coal swap Australia FOB US$108.3/t vs US$106.5/t

Other:  

Cobalt LME 3m US$26,960/t vs US$26,230/t

NdPr Rare Earth Oxide (China) US$60,713/t vs US$60,947/t

Lithium carbonate 99% (China) US$9,981/t vs US$10,020/t

China Spodumene Li2O 6%min CIF US$815/t vs US$815/t

Ferro-Manganese European Mn78% min US$1,005/t vs US$1,005/t

China Tungsten APT 88.5% FOB US$348/mtu vs US$348/mtu

China Graphite Flake -194 FOB US$430/t vs US$430/t

Europe Vanadium Pentoxide 98% US$4.8/lb vs US$4.8/lb

Europe Ferro-Vanadium 80% US$23.8/kg vs US$23.8/kg

China Ilmenite Concentrate TiO2 US$299/t vs US$301/t

Global Rutile Spot Concentrate 95% TiO2 US$1,543/t vs US$1,543/t

Spot CO2 Emissions EUA Price US$65.1/t vs US$65.1/t

Brazil Potash CFR Granular Spot US$337.5/t vs US$322.5/t

Germanium China 99.99% US$2,825.0/kg vs US$2,825.0/kg

China Gallium 99.99% US$385.0/kg vs US$385.0/kg

Battery News

Norwegian battery cell manufacturer nears output

• Norway’s Morrow Batteries is set to begin production of lithium-iron phosphate (LFP) cells at its factory in southern Norway.
• Morrow are looking to learn from the failures of other European producers and, following setbacks to Northvolt, Britishvolt and Freyr Battery, it is one of a few remaining battery makers who can lead Europe’s goal of reducing dependence on China and having regional producers.
• Morrow is targeting battery production for energy storage systems and heavy machinery, rather than electric cars.
• The facility in Arendal is expected to have 1GWh of annual capacity and could start phase one production in Q2 2025.

Tesla annual sales drop for first time in over a decade in 2024

• Despite a year-end push that produced record Q4 sales, Tesla saw its annual vehicles sales drop for the first time in over a decade.
• Tesla announced it sold 1.79m vehicles across last year, down from 1.81m in 2023.
• Consumer demand has continued to stagnate and could be further impacted with President Donald Trump’s plans to curb EV incentives.
• On the earnings call, Elon Musk told investors that he expects a 20-30% in 2025, driven by a more affordable model and advancements in the company’s autonomous technology.
• There is doubt over whether Tesla can achieve this growth, particularly as Trump rolls back EV credits.
• However, the president is also expected to loosen federal rules on self-driving vehicles which could benefit tesla and its Robotaxi.

Conclusion: Has Elon Musk done a Gerald Ratner with his support of Trump, tariffs and the slashing of the Federal workforce?

We suspect more than a few buyers will have been turned off by Musk’s political antics while BYD is also offering cheaper EVs.

Company News

 Celsius Resources (CLA LN) 0.45p, Mkt Cap £12m – A$3.3m raised to help development of the MCB project

• Celsius Resources reports that it has raised A$3.3m via the placing of 412.5m additional shares at a price of A$0.008/share, including a “a free-attaching option for every 2 shares subscribed”.
• The funds will be raised in two tranches:
  • “Tranche 1: Placement of 212,333,535 Placement Shares to raise approximately AU$1,698,668 utilising the Company’s existing placement capacity” and
  • “Tranche 2: Placement of the balance of 200,166,465 Placement Shares … and 206,250,000 Placement Options, conditional on the Company obtaining shareholder approval at a general meeting expected to be held in April 2025”.
• The options “will be exercisable at AU$0.01 each and expire three (3) years … [from the] … date of issue”.
• We estimate that the additional shares comprise around 14% of the enlarged company.
• The equity funds, which follow the announcement in late February of a US$76.4m bridging loan to Celsius Resources’ affiliate Makilala Mining Company, by the Philippines’ sovereign wealth fund, Maharlika Investment Corporation, will be used to continue updating the project feasibility study for the Maalinao-Caigutan-Biyog Copper-Gold Project (MCB Project) on Luzon approximately 320km north of Manila as well as engineering and to “fund early development activities”.
• Welcoming “existing and new shareholders, and institutional investors”, Chairman Julito Sarmiento, said their support “underscores their confidence in our shared vision and strategy”.
• The MCB project hosts a December 2022 “JORC compliant Mineral Resource Estimate … [of] … 338 million tonnes @ 0.47% copper and 0.12 g/t gold” with a planned mine life of 25 years treating 2.25mtpa of ore. to produce an average of around 16,000tpa of copper and 19,000oz pa of gold.
• The new funds will also help to advance “the Sagay and Botilao copper-gold projects in the Philippines”.
• At Botilao, the continuing exploration work aims to “define the extent and distribution of observed mineralisation … [and help identify targets for] … future diamond drilling”.
• The company explains that Botilao was explored in the 1970s by Lepanto Consolidated Mining and that a “1973 Bureau of Mines report confirmed two major mineralised zones striking northeast, with tunnel samples showing copper grades of up to ~1%”.

Conclusion: Additional funding enables the 2021 technical studies for the MCB project to be updated and initial site access work to start. We await further news, as well as exploration results from the Botilao exploration project with interest.

Cora Gold (CORA LN) 4p, Mkt Cap £18m – Permit moratorium partially lifted

• The Company reports a partial lifting of the suspension relating to the issuance of mining titles in Mali.
• The partial lifting of the moratorium that was in place since 28 November 2022 will come into effect on 15 March 2025.
• The administration will start processing:
• Applications to renew exploration permits and exploitation permits;
• Applications for the transition from the exploration phase to the exploitation phase;
• Applications for direct/indirect transfer of operating permits.
• The lifting of the moratorium does not apply to applications for the issuance of new mining titles or fot the transfer of exploration permits.
• The Company is now planning to submit an application for a mining permit for its Sanankoro Gold Project.

Empire Metals* (EEE LN) 11.6p, Mkt Cap £74m – Confirmation of high-grade TiO2 product potential

• Empire Metals, who hold the large-scale Pitfield titanium project in Western Australia, report positive testwork results.
• The Company has now delivered a high-purity TiO2 product which assayed at 91.6% TiO2.
• Empire notes that this product was free of ‘any deleterious impurities,’ and assays were undertaken using XRF at ALS Metallurgy in Perth.
• Management believes the product may be suitable as a feedstock for high-grade titanium dioxide pigment production or titanium sponge metal production.
• The 91.6% TiO2 product was delivered using:
  • Gravity recovery to produce a titanium mineral concentrate
  • Froth flotation
  • Acid-bake leach process using sulphuric acid to recover the mineral concentrates into liquor as titanyl sulphate, before being separated via filtration
  • The titanyl sulphate is then broken down through a heated hydrolysis stage to produce hydrated TiO2 and H₂SO_4.
• Company notes that the purification and product finishing steps have now been optimised yet as a result of the small volume of leach liquor available, so two larger samples are currently being tested.

Conclusion: It remains early days at Pitfield but the delivery of a c.92% TIO2 product is highly encouraging for potential saleability going forward. The limited levels of deleterious elements such as vanadium, thorium, chromium and uranium is encouraging, and higher optimisation of the liquor purification stage is expected to deliver lower levels of iron. Focus now will be on optimising the flowsheet and TiO2 recovery rates through larger scale test work with the air core samples.

*SP Angel acts as nomad and broker to Empire Metals

New Frontier Minerals (NFM LN) 0.85p, Mkt Cap £12.4m – Sale of the Broken Hill East Project, NSW

• New Frontier Minerals reports that it has agreed to sell its Broken Hill East project in New South Wales to ASX listed Impact Minerals for A$275,000 in shares.
• Today’s announcement confirms that the sale, due to complete today and following the December 2024 disposal of the Cangai copper mine in NSW, underlines the company’s commitment to “its core Harts Range and NWQ Copper Projects”.
• The announcement also confirms NFM’s intention to retain its “remaining non-core asset – Mkushi Copper Project in Zambia – until the right development partner is secured”.
• Chairman, Ged Hall, said that the Broken Hill East project is “the third non-core asset to be sold in the past 18 months which leaves the divestment of the Mkushi Copper Project as the final target” and elsewhere the announcement expresses optimism that “with ongoing consolidation across the global copper sector, a development partner can be found for Mkushi”.

Conclusion: The sale of the Broken Hill East project underlines NPM’s focus on its Queensland copper projects and the Harts Range niobium, uranium and heavy rare earths project located north-east of Alice Springs in the Northern Territory

Orosur Mining* (OMI LN) 11.2p, Mkt Cap £29m – Drill results as focus shifts north

• Orosur reports results from five more holes at Pepas and outlines its plans going forward.
• Five recent drill holes returned highlights of:
  • PEP023: 15m at 1.7g.t Au, and 10.1m at 0.54g/t Au
  • PEP024: 6.35m at 1.99g/t Au and 7.9m at 0.42g/t Au
  • PEP025: 10.1m at 1.46g/t Au and 62m at 5.4g/t Au from 16.5m (including 8.5m at 22.5g/t Au)
  • PEP026: 15m at 0.57g/t Au from surface and 28.4m at 2.52g/t Au from 44m
  • PEP027: 79m at 2g/t Au form surface, including 22m at 3.5g/t Au.
• Orosur’s drilling to date has focused on a tight 150m x 150m area to better understand the geometry and mineralogy of the Pepas project.
• Going forward, the Company has identified an anomalous region to the north of Pepas.
• Orosur recently identified a mineralised channel sample 200m north of the current drilling, which returned 105m at 1.15g/t Au.
• Orosur will now look to move the drill rig to this zone and is working on drill target delineation and access now.
• A drone aeromagnetic survey is being flown over the Pepas area to assist with the structural understanding of Pepas, with data due later in March.
• Additionally, the Company has now submitted a bulk composite sample to a metallurgical lab for metallurgical tesstwork.

Conclusion: Orosur is making rapid progress at Pepas, having now drilled out the high-grade zone, boosting their understanding of the geometry of the gold mineralisation which seems to be defined by two converging faults. The wide-spread  gold mineralisation at surface to the north is very encouraging, as Orosur’s primary goal now is to expand the scale of the project.

*SP Angel acts as Nomad and Broker to Orosur Mining

Power Metals Resources* (POW LN) 12.4p, Mkt cap £14.5m – Extension of discussions over Saudi exploration project

• Power Metal Resources reports that have extended discussions with Al Masane Al Kobra over the Qatan exploration licence.
• POW had initially signed a Letter of Intent to earn 49% in the project via a US$3m exploration expenditure.
• The project covers 72km2 is prospective for VMS mineralisation, targeting copper and nickel.

*SP Angel acts as Nomad and Broker for Power Metals

Sovereign Metals* (SVML LN) 45p, Mkt Cap £264m – Test work beats quality benchmarks on purification of coarse flake graphite from Kasiya test mine in Malawi

(Sovereign currently holds 100% of the Kasiya project. Malawi has 10% free carry right. Rio Tinto holds 19.9% of Sovereign Metals)

STRONG BUY – Valuation 55p

• Sovereign Metals report the benefits of purification of coarse flake graphite from their Kasiya mining project in Malawi
• Test work shows purification to:
  • 99.95% using acid purification and
  • 99.98% using alkaline purification
• This shows the graphite is suitable for use in high margin applications including:
  • powder metallurgy,
  • isostatically pressed refractory products,
  • high-grade expanded graphite products such as foils or sheets.
• The work should demonstrate to downstream buyers customers the opportunity to reduce reagent consumption
• ProGraphite GmbH ran the test work on coarse >180um flake graphite from the Kasiya pilot work while also investigating acid and alkaline purification alternatives to get to a +99% LOI target.
• The results are described as:
  • “These are truly outstanding results – effectively achieving battery grade purities of +99% and less than 0.05% ash under conditions that typically result in under 1% ash. For our future customers, this has the potential to significantly reduce reagent consumption and waste generation in the production of high-purity flake or targeted high-end applications.
  • This is yet further confirmation that Kasiya graphite concentrate is a premium graphite suitable for the anode, refractory, expandables and now also the high-purity powder metallurgy markets. We are delighted with the significant commercial optionality it brings to the Kasiya Rutile and Graphite Project.”
• The ability to generate graphite material with < 1% ash content in the flake is important for specific coarse flake applications
• This is normally done using hydrofluoric as the primary acid or thought its replacement with sodium hydroxide, caustic soda, (NaOH) to remove silicates before being washed and acid leached to remove residual metals.
• See RNS for the Loss of Ignition purity and residual impurities analysis data on the >180um flake
• The test work has been compiled by  Dr Surinder Ghag, who qualifies as a competent and qualified person under AIM and JORC. Rules)as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Ghag consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
• The Kasiya deposit benefits from unusually soft ore and low levels of sulphur. Test work shows relatively high 57% of large Jumbo (+80um) material with just 12% medium flake (+100um) and 32% small flake (-100um).
• Growth in the refractory and foundry industry continues to drive prices for larger flake graphite with the large flake graphite market expected to grow to US$15.7bn by 2032 from $7.37bn in 2024 according to Wise Guy Reports.
• Optimisation of the current PFS shows an incremental cost of producing and transporting graphite concentrate to port at US$241/t after deducting the portion of the costs allocated to Rutile showing Kasiya to be the World’s lowest-cost graphite producer with an estimated graphite C1 cost of $241/t vs the next lowest cost producer, NGX at ~$390/t and Syrah’s Balama mine at $430-480/t.
• This is also lower than China’s weighted average C1 cost of $257/t.

Conclusion:  The purity level shows in the ProGraphite test work confirms the Kasiya graphite suitability for a range of specialist, high-value products. The work highlights further opportunity for the mine to enhance profitability and to displace dominant Chinese material from Western markets.

*SP Angel act as Nomad and broker to Sovereign Metals. The analyst has visited the Kasiya mine site. We highly recommend the Malawi coffee beans sold in Lilongwe airport.

Versarien* (VRS LN) 0.034p, Mkt Cap £1.2m – Versarien agrees to supply Graphinks™ graphene to Montana Química for paint, preservatives, wood coatings, composites and lubricants

• Versarien has signed a two-year supply agreement to provide graphene and related ‘Graphinks’ material dispersions and formulations Montana Química LTDA.
• Montana is a multinational organisation based in Brazil which produces and sells paints, wood preservatives and other wood finishing products including paints, stains and varnishes.
• Montana is looking to incorporate Versarien’s Graphinks™ in construction, composites, coatings and lubricants.
• Versarien revenues for graphene sales will be on top of the existing 5% revenue with Montana on all products manufactured using Versarien’s intellectual property and know-how, subject to minimum royalty payments of £25,000 per annum.

Conclusion: The Graphinks™ supply agreement marks another positive step forward for Versarien.

*SP Angel acts as Nomad and Broker to Versarien

LSE Group Starmine awards for 2024 commodity forecasting:

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Precious Metals forecasting in LSEG Annual Starmine Award for Reuters Polls 2024

No.2 in Base Metals: SP Angel mining team awarded No 2. ranking for Base Metals forecasting in LSEG Annual Starmine Award for Reuters Polls 2024

Analysts

John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490

Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484

Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk – 0203 470 0474

Arthur Parish – Arthur.Parish@spangel.co.uk – 0203 470 0476

Sales

Richard Parlons –Richard.Parlons@spangel.co.uk – 0203 470 0472

Abigail Wayne – Abigail.Wayne@spangel.co.uk – 0203 470 0534

Rob Rees – Rob.Rees@spangel.co.uk – 0203 470 0535

Grant Barker – Grant.Barker@spangel.co.uk – 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.

DISCLAIMER

This note is a marketing communication and comprises non-independent research. This means it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.

This note is intended only for distribution to Professional Clients and Eligible Counterparties as defined under the rules of the Financial Conduct Authority and is not directed at Retail Clients.

This note is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose.

This note has been issued by SP Angel Corporate Finance LLP (‘SPA’) to promote its investment services. Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. The information contained herein is based on sources which we believe to be reliable, but we do not represent that it is wholly accurate or complete. All opinions and estimates included in this report are subject to change without notice. It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. SPA is not responsible for any errors or omissions or for the results obtained from the use of such information. Where the subject of the research is a client company of SPA we may have shown a draft of the research (or parts of it) to the company prior to publication to check factual accuracy, soundness of assumptions etc.

Distribution of this note does not imply distribution of future notes covering the same issuers, companies or subject matter.

Where the investment is traded on AIM it should be noted that liquidity may be lower and price movements more volatile.

SPA, its partners, officers and/or employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s).

SPA is registered in England and Wales with company number OC317049.  The registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP.  SPA is authorised and regulated by the UK Financial Conduct Authority and is a Member of the London Stock Exchange plc.

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.

A full analysis is available on our website here  If you have any queries, feel free to contact our Compliance Officer, Tim Jenkins (tim.jenkins@spangel.co.uk).

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