SP Angel . Morning View . Thursday 15 09 22 Base metals rise on low inventories and refinery disruptionGold slides lower as yields climb and investors shed ETF holdingsMiFID II exempt information – see disclaimer below Private Equity / joint venture opportunityWe have an exploration opportunity on a newly discovered copper / moly porphyry system with two adjacent non-porphyry gold
SP Angel . Morning View . Thursday 15 09 22
Base metals rise on low inventories and refinery disruption
Gold slides lower as yields climb and investors shed ETF holdings
MiFID II exempt information – see disclaimer below
Private Equity / joint venture opportunity
We have an exploration opportunity on a newly discovered copper / moly porphyry system with two adjacent non-porphyry gold and silver deposits over 6km in South-East Asia
*SP Angel’s role is limited to making introductions and interested parties should be aware that investment in a private company can present certain risks not present in listed companies (e.g. limited or no liquidity and no rules compelling disclosure of information to investors). This offer is open to professional investors only and is not offered to retail investors.
(Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)) – Earnings supported by higher gold prices with 4c dividend recommended
(Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF)) – Mining contractor appointed for Joshua Vein development
(Oriole Resources PLC (AIM:ORR)) – Bibemi drilling demonstrates a second set of gold bearing veins
(Tertiary Minerals PLC (AIM:TYM)) – Exploration collaboration with First Quantum in Zambia
Gold slides lower as yields climb and investors shed ETF holdings
Zinc (US$ 3,246/t) prices rise in low stock levels and supply disruption
LME nickel inventories fell 936 tonnes this week, most since July
China - President Xi Jinping is due to meet Vladimir Putin in Uzbekistan today
Container rates fall from China to the US as demand collapses for Chinese products
Chinese ambassador to the US warns against cutting nation out of EV supply chain
Shanghai escapes major disruption from typhoon as strong winds and heavy rain die down
Indonesia exports hit record high on coal export surge
US – US commodity markets brace for US Rail Strike as coal-powered grid under threat
France – Nuclear power production at EDF plants is at three decade lows at a critical time with more than half of the 56 reactors offline.
UK – Consumer sentiment slips into negative territory for the first time since the pandemic lockdown in 2020 amid falling real incomes and tighter monetary policy conditions.
UK government to scrap cap on banker bonuses
Russia set to impose export duties on coal, local media reports
US$0.9961/eur vs 0.9981/eur yesterday. Yen 143.76/$ vs 143.42/$. SAr 17.491/$ vs 17.425/$. $1.152/gbp vs $1.151/gbp. 0.676/aud vs 0.672/aud. CNY 6.969/$ vs 6.964/$.
Gold US$1,687/oz vs US$1,702/oz yesterday
Gold ETFs 99.0moz vs US$99.2moz yesterday
Platinum US$905/oz vs US$889/oz yesterday
Palladium US$2,137/oz vs US$2,086/oz yesterday
Silver US$19.36/oz vs US$19.40/oz yesterday
Rhodium US$14,200/oz vs US$14,400/oz yesterday
Copper US$ 7,792/t vs US$7,828/t yesterday
Aluminium US$ 2,302/t vs US$2,296/t yesterday
Nickel US$ 24,225/t vs US$23,945/t yesterday
Zinc US$ 3,246/t vs US$3,225/t yesterday
Lead US$ 1,958/t vs US$1,946/t yesterday
Tin US$ 21,210/t vs US$21,030/t yesterday
Oil US$94.0/bbl vs US$92.6/bbl yesterday
Natural Gas US$9.003/mmbtu vs US$8.360/mmbtu yesterday
Uranium UXC US$51.20/lb vs US$52.05/lb yesterday
Iron ore 62% Fe spot (cfr Tianjin) US$101.9/t vs US$102.4/t
Chinese steel rebar 25mm US$587.3/t vs US$587.7/t
Thermal coal (1st year forward cif ARA) US$305.0/t vs US$300.0/t
Thermal coal swap Australia FOB US$440.0/t vs US$428.0/t
Coking coal swap Australia FOB US$258.0/t vs US$256.0/t
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$86,459/t vs US$86,513/t
Lithium carbonate 99% (China) US$69,239/t vs US$69,282/t
China Spodumene Li2O 5%min CIF US$5,210/t vs US$5,210/t
Ferro-Manganese European Mn78% min US$1,230/t vs US$1,232/t
China Tungsten APT 88.5% FOB US$330/t vs US$333/t
China Graphite Flake -194 FOB US$820/t vs US$820/t
Europe Vanadium Pentoxide 98% 7.3/lb vs US$7.3/lb
Europe Ferro-Vanadium 80% 31.25/kg vs US$31.25/kg
China Ilmenite Concentrate TiO2 US$326/t vs US$327/t
Spot CO2 Emissions EUA Price US$70.2/t vs US$70.3/kg
Brazil Potash CFR Granular Spot US$800.0/t vs US$800.0/t
China’s Ganfeng to hike battery prices on soaring raw material costs
TotalEnergies moves to build 2GW Offshore wind plant in Poland
Chilean lithium giant SQM plans $1.5bn investment in freshwater-free lithium extraction project
(Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF)) 72p, Mkt Cap £82m – Earnings supported by higher gold prices with 4c dividend recommended
EBITDA climbed to $14.4m (H1/21: $14.0m) implying 45% EBITDA margins (H1/21: 32%) reflecting higher commodity prices.
Conclusion: Interims reflect lower sales volumes but report higher earnings margins driven by stronger realised gold prices. The Board recommended 4c interim dividend little changed from the previous year and extending the Company’s dividend paying record. The team is working on adding new ore sources to feed the Gedabek processing complex with Hasan, Vejnaly and Zafar guided to start contributing to production over the next 3-12 months. Meanwhile, the Company is assessing the potential of newly secured license areas that are expected to support the Company’s strategy to become a mid-tier copper producer.
*SP Angel act as Nomad and broker to Anglo Asian Mining
(Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF)) 33.5p, Mkt Cap £35m – Mining contractor appointed for Joshua Vein development
Conclusion: Galantas continue to make strong progress at Cavanacaw and is now ready to begin production on the Kearney Vein, while assay results from the ongoing 4,000m underground drill programme continue to yield exciting results. We also note that the company recently completed an equity raise for gross proceeds of C$6.9m in order to achieve its key short-term goal of getting the mine into steady state production.
*SP Angel acts as broker to Galantas Gold
(Oriole Resources PLC (AIM:ORR)) – 0.18p, Mkt cap £3.4m – Bibemi drilling demonstrates a second set of gold bearing veins
Conclusion: The identification of a second mineralised vein set at Bibemi provides the potential to build resource tonnage more quickly than would be expected for the original sub-vertical vein set alone.
(Tertiary Minerals PLC (AIM:TYM)) – 0.18p, Mkt cap £1.7m – Exploration collaboration with First Quantum in Zambia
Conclusion: The collaboration with First Quantum provides Tertiary Minerals with access to the resources, relevant exploration data and technical expertise of an industry major with specific knowledge of the geological context of its Zambian exploration licences. We await further news as the exploration advances.
*SP Angel act as Nomad and Broker to Tertiary Minerals
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
John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490
Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484
Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk - 0203 470 0474
Joe Rowbottom – Joe.Rowbottom@spangel.co.uk - 0203 470 0486
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 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.
Gold, Platinum, Palladium, Silver -BGNL (Bloomberg Generic Composite rate, London)
Gold ETFs, Steel - Bloomberg
Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt - LME
Natural Gas, Uranium, Iron Ore - NYMEX
Thermal Coal - Bloomberg OTC Composite
Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite - Asian Metal
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 http://www.spangel.co.uk/legal-and-regulatory-notices.html. 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 of less than 15%
The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful. This email has been scanned for viruses and malware, and may have been automatically archived by Mimecast Ltd, an innovator in Software as a Service (SaaS) for business. Providing a safer and more useful place for your human generated data. Specializing in; Security, archiving and compliance.
Add related topics to MyProactive
Create your account: sign up and get ahead on news and events
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
Dr Joseph Bovi from Froedtert and the Medical College of Wisconsin (MCW) joined Proactive's Stephen Gunnion with details of a novel smartphone "app" that he developed to treat brain metastases. He explained that the NIMBLE (Network for the Integrated Management of Brain Metastases) app,...
Only registered members can use this feature.
Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom” is registered in England with the Company Registration number 05639690. Group VAT registration number 872070825. You can contact us here.
Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping us understand which sections of the website you find most interesting and useful. See our Cookie Policy for more information.
These cookies are used to deliver our website and content. Strictly necessary cookies relate to our hosting environment, and functional cookies are used to facilitate social logins, social sharing and rich-media content embeds.
Advertising Cookies collect information about your browsing habits such as the pages you visit and links you follow. These audience insights are used to make our website more relevant.
Performance Cookies collect anonymous information designed to help us improve the site and respond to the needs of our audiences. We use this information to make our site faster, more relevant and improve the navigation for all users.