SP Angel . Morning View . Wednesday 24 02 21
Copper distorted by Chinese futures. IG raising margin requirements
MiFID II exempt information – see disclaimer below
Alba Mineral Resources (AIM:ALBA) – Welsh exploration programme
Bluejay Mining* (AIM:JAY) – BUY – Valuation 40p – Bluejay training students and personnel in Greenland for Dundas project
IronRidge Resources* (AIM:IRR) – Progress at Ewoyaa Lithium Project
Keras Resources* (AIM:KRS) – Chairman reports no outstanding requirements on grant of exploitation permit at Nayéga manganese mine in Togo
Mkango Resources* (LON:MKA) – Pilot plant test-work underway
Sibanye-Stillwater (JSE:SSW) – Sibanye-Stillwater Partner up with Keliber for lithium in Finland
Steel rebar futures hit ten-year high as production limited in Hebei province
- Steel rebar futures hit their highest since 2011 on Wednesday after China’s top steelmaking region ordered production curbs amid a bout of pollution.
- Tangshan will temporarily limit production by steel mills and coking plants after authorities warned of heavy air pollution, according to government statements.
- Rebar futures advanced 1.5% to close at 4,618 yuan ($715)/t on the Shanghai Futures Exchange- the highest since September 2011 (Bloomberg).
Shanghai Dalu Futures in China increased raised its copper futures holdings to >$1bn
- The Chinese brokerage is now the top long position holder of the May, June and July SHFE copper contracts.
- The firm added 19,774 copper lots to its copper position in the April-July contracts, equivalent to 6.7 billion yuan ($1.04 billion) based on the closing price of ShFE’s most-active April contract on Tuesday (Bloomberg).
- Physical consumers are said to be reducing their buying activity in reaction to higher spot prices
- We suspect the Chinese authorities may move to manage the distortion caused to copper prices by this new investment.
IG lifting margin requirements on 900 companies creates buying opportunities
- IG and we suspect other brokers have lifted their margin requirements for trading 900 companies, bitcoin and other investments.
- The move to raise margin to 100% from 25% reflects increased volatility in markets but has the unfortunate consequence of stopping some investors out of their investments.
- The move has likely caused market makers to pull back on their exposure to markets and to drop prices in stocks favored by leveraged investors
- The situation should create some interesting buying opportunities.
Metals price forecasting through 2020 – 2020 was probably the most difficult year for forecasting anything
- 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
US – Powell pledged to continue with the monetary policy stimulus highlighting ~10m jobs still missing compared to a year ago and downplaying risks of rising bond yields or a potential increase in inflation during his address to the Senate Banking Committee yesterday.
- Interest rates will remain low and the Fed’s $120bn per month bond purchases will continue “at least at the current pace until we make substantial further progress towards our goals… which we have not really been making,” Powell said.
- Responding to concerns that loose monetary policy together with vaccine programme rollout and to be approved massive fiscal stimulus package fuel financial asset prices Powell argued the focus needed to remain on an economic recovery that is “uneven and far from complete”, and which would need the central bank’s help for “some time” to get back to full employment, Reuters writes.
- A separate report showed consumer confidence picking up in February amid falling infection rates and expectations for fiscal stimulus.
- COVID-19 cases in the US have dropped for the sixth consecutive week, with daily cases and hospitalisations falling to the lowest level since before the Thanksgiving and Christmas holidays while the pace of vaccination is also climbing.
- The US has currently administered 64.6m doses covering ~19% of population running at ~1.2m per day with new daily cases down at ~70k.
- Conference Board Consumer Confidence: 91.3 v 88.9 in January and 90.0 est.
Finance ministers and central bankers from G20 will be meeting remotely this Friday.
Germany – Strong exports and robust construction sector see Germany growing faster than firs expected in the final quarter of last year.
- The economy expanded 0.3%qoq, up on its earlier estimate for a 0.1%, with the 2020 GDP change revised to -4.9% from 5.0%.
- A drop in household spending during the quarter (-3.3%qoq) was more than compensated by growth in exports (+4.5%) and construction (+1.8%)
- Heavy fiscal stimulus saw an overall budget deficit of €140bn or 4.2% GDP in 2020 marking the first deficit since 2011 and the second highest since German reunification.
- Separately, Chancellor Merkel warned that Germany is in the third wave of the pandemic and that lifting restrictions should come with more testing and vaccinations.
- Previously, Health Minister was forced to drop a plan to offer free tests starting in March amid opposition from other states.
- Merkel will consider different testing strategies in her next meeting with state leaders March 3.
UK – The pound hit 1.4237 against the US$, the highest since April 2018 before pairing some of its gains and currently trading at 1.4146.
- The currency climbed for a fifth day after optimism about the vaccine rollout led to some short covering, according to Bloomberg.
Hong Kong – The Hang Seng equity index slumped nearly 3% after authorities unveiled an increase in stamp duty tax on stock trades.
- The first hike since 1993 will see trading tax go up to 0.13% from 0.10% and is expected to come into effect in August 1.
- The announcement comes as part of the annual budget address with authorities pledging more support for the economy.
- The government promised HK$120bn ($15.5bn) of fiscal support in 2021 including HK$5,000 vouchers to residents, cuts in the profits and salaries tax, and a waiver on business registration fees.
- This compares to $320bn in virus stimulus provided last year.
- Budget deficit is expected to come at HK$101.6bn in 2021 v the record HK$257.6bn last year.
Indonesia – After six weeks in the vaccination programme, Indonesia completed more than 2m Sinovac Biotech shots, while the daily vaccination rate lags far behind targets, Bloomberg reports.
- The pace of vaccinations is currently at around 50,000 per day, way short of the 500,000 needed to reach the nation’s target of more than 180m this year.
Cemex ground-breaking hydrogen technology
- Ground-breaking hydrogen technology has been successfully introduced in all of Cemex’s European cement plants.
- With an estimated $40m investment programme, Cemex said it is moving quickly to extend this technology to the rest of its operations around the world.
- Initial trials were carried out at its Alicante, Spain cement plant in July 2019 and confirmed its potential to lever significantly reduce CO2 emissions.
- In 2021, Cemex said it will roll this out to all its global operations.
ABS to class first US wind turbine installation vessel
- The American Bureau of Shipping will class the first Jones Act compliant wind turbine installation vessel that will service the U.S. offshore wind sector.
- The 472-foot Charybdis is being constructed by Keppel AmFELS in Texas,
- The vessel will be equipped to handle all current turbine technologies, as well as next generation turbines with a capacity of 12MW and more.
- It will carry up to 119 people, a 2,200-t main crane, and an 11,500t carrying capacity.
- Charybdis is expected to be available to support turbine installation by the end of 2023.
Currencies US$1.2159/eur vs 1.2160eur yesterday. Yen 105.55/$ vs 105.18/$. SAr 14.569/$ vs 14.672/$. $1.417/gbp vs $1.408/gbp. 0.792/aud vs 0.791/aud. CNY 6.455/$ vs 6.461/$.
Gold US$1,808/oz vs US$1,809/oz yesterday
Gold ETFs 104.9moz vs US$105.1moz yesterday
Platinum US$1,256/oz vs US$1,260/oz yesterday
Palladium US$2,368/oz vs US$2,401/oz yesterday
Silver US$27.76/oz vs US$28.06/oz yesterday
Copper US$ 9,192/t vs US$9,186/t yesterday
Aluminium US$ 2,146/t vs US$2,168/t yesterday
Nickel US$ 19,220/t vs US$19,460/t yesterday
Zinc US$ 2,830/t vs US$2,898/t yesterday
Lead US$ 2,112/t vs US$2,158/t yesterday
Tin US$ 26,500/t vs US$26,595/t yesterday
Oil US$65.4/bbl vs US$66.1/bbl yesterday
- The much-publicised oil price rally has had a moment on pause on a surprise US inventory build
- The American Petroleum Institute (API) reported yesterday a build in crude oil inventories of 1.026MMbbls for the week ending 19 February
- Analysts had predicted an inventory draw of 5.2MMbbls for the week
- In the previous week, the API reported a draw in oil inventories of 5.8MMbbls after analysts had predicted a draw of 2.4MMbbls
- Oil prices were trading up on Tuesday ahead of the data release as oil supplies tighten from oil and gas shutdowns in the US courtesy of the Texas Freeze.
- US oil production fell 200,000bopd to 10.8MMbopd, according to the Energy Information Administration
- The API reported a small build in gasoline inventories of 66,000bbls barrels for the week ending 19 February, after the previous week’s 3.9MMbbl build.
- The last couple of weeks have seen gasoline stocks rise but so has production
- While demand in the world’s top consumer of oil recovers, production is stalling
- According to the EIA, US output will remain below 12MMbopd next year
- This imbalance will turn the US into a net exporter this year and next, the EIA estimated in its latest Short-Term Energy Outlook
- But more importantly for OPEC+, this would push oil prices higher still, tempting barely compliant members to become even less compliant
- Elsewhere, according to an industry consensus, global crude demand will increase by 5.5-6MMbopd, implying that a full return to pre-COVID demand levels will require several years to take place
- The underlying question whether crude output levels can actually follow this demand growth this year has been growing in importance, steep backwardation on the Brent curve might suggest has serious qualms about it
- With divergent trends abounding, Middle Eastern national oil companies have opted for nuance after the January-February price increases
- As usual, Saudi Arabia has led the way, rolling over all of its February 2021 OSPs into March completely unchanged
- Overall, the reports pointed to a still-fragile energy market that is highly susceptible to the course of Covid-19
- The robustness of Asian demand remains a key gauge for Middle Eastern NOCs
- China and India have been leading the continent with fuel consumption almost returning to pre-COVID levels in both
- On the other hand, insular economies such as the Philippines, Indonesia or Taiwan have been running their refineries below maximum capacity or temporarily halting several units amidst poor margins
- At the same time, turnaround season is just around the corner and Japan’s month-on-month import drop in February is the first of many to come
- Albeit smaller in terms of overall output, refinery maintenance in Thailand, Taiwan and Sri Lanka will also tighten the markets a bit
- February turnaround will blaze the path for next month’s large-scale works, China alone will have at least 0.9MMbopd of refinery capacity going offline in March 2021
Natural Gas US$2.840/mmbtu vs US$2.916/mmbtu yesterday
- Natural gas futures are edging lower as warmer weather in Texas is helping production to recover faster than previously expected from last week’s Arctic freeze that rattled the energy markets last week
- Falling spot gas prices are also weighing on the futures markets as well as forecasts calling for improving weather conditions
- Nonetheless, traders shouldn’t become complacent with volatility expected to return with the March contract roll-off on Wednesday
Iron ore 62% Fe spot (cfr Tianjin) US$169.0/t vs US$171.5/t – Australia January iron ore export value fall 7% on month prior
- The value of Australian iron ore exports fell by A$963m, or 7% last month, due to a 13% decrease in export quantity amounting to 10.4mt.
- Exports declined following port shutdowns in Port Hedland due to cyclone concerns, according to the Australian Bureau of Statistics.
- Coal exports declined to $3.4bn, representing an 8% fall.
- Metalliferous ore exports to China dropped by $509 million, which was driven by a 5% decline in iron ore exports to $9.7bn.
Chinese steel rebar 25mm US$720.3/t vs US$719.6/t
Thermal coal (1st year forward cif ARA) US$67.4/t vs US$67.0/t
Coking coal swap Australia FOB US$153.5/t vs US$154.5/t
Cobalt LME 3m US$51,000/t vs US$50,000/t
NdPr Rare Earth Oxide (China) US$77,463/t vs US$73,288/t
Lithium carbonate 99% (China) US$11,463/t vs US$11,144/t
Spodumene 6% Li2O min, cif (China) US$455/t vs US$395/t
Ferro Vanadium 80% FOB (China) US$32.0/kg vs US$31.5/kg
Ferro-Manganese high carbon 78% Mn US$1,610/t vs US$1,610/t
Tungsten APT European US$250-255/mtu vs US$250-255/mtu – China raises first-half tungsten production quotas by 20% YoY
- The first batch of 2021 quotas amounts to 63,000t, comprising 47,000t for primary mining and 16,000t for recycling- up by 20% from 52,000t in H1 2020 (Argus Media).
Graphite flake 94% C, -100 mesh, fob China US$560/t vs US$560/t
Graphite spherical 99.95% C, 15 microns, fob China US$2,625/t vs US$2,625/t
Alba Mineral Resources (AIM:ALBA) 0.32p, Mkt cap £19.6m – Welsh exploration programme
- Alba Minerals has announced that, starting in March, it plans to undertake a programme of stream sediment sampling over two areas of the Dolgellau gold belt in North Wales.
- The programme which is expected to recover six samples, each of around 15-25kg, from each of the two sites aims to help identify likely sources of bedrock gold mineralisation which could be followed up by soil geochemical sampling, geophysics, trenching and possibly eventually by diamond drilling.
- The company explains that apart from its own exploration programmes in 2018/19, little exploration work has been undertaken on the wider Dolgellau gold-belt since work by the British Geological Survey (BGS) during the 1960s and 1970s as part of a nation-wide programme “which sought to establish the chemistry of the surface environment by the collection and analysis of stream sediment, stream water and soil samples”.
- In our view, a more commercially driven programme, as envisaged by Alba Mineral Resources, and one which can harness the technological improvements in assaying, data management and interpretation over the last 50-60 years may well demonstrate scientific insights into the distribution of mineralisation which were unavailable to the BGS during the mid-20th century.
- The company says that “Part of the sampling will take place within the Gwynfynydd SSSI [Site of Special Scientific Interest] . The SSSI has been designated as such due to its biological features, including woodland, grassland and lichens. While this does not directly include rivers or streams, the Company will consult with Natural Resources Wales (“NRW”) before taking samples within the SSSI”.
- Although very early stage exploration such as that in the current plan is unlikely to compromise an SSSI, more detailed follow up work such as drilling could prove more contentious around or close to an ecologically sensitive area.
- Around 40 years ago, Riofinex’s discovery of copper mineralisation at Coed-y-Brenin in the nearby Snowdonia National Park was not followed up as a result of environmental concerns although more recent, successful, precedents such as Scotgold’s Cononish gold mine and the development of the Woodsmith potash project in North Yorkshire (now Anglo American) demonstrate that, properly managed, mineral development is possible in environmentally sensitive parts of the UK.
- Executive Chairman, George Frangeskides, clarified that the planned stream sediment sampling programme “is a separate exercise to our work to bring the Clogau-St David’s and Gwynfynydd gold mines back into commercial production. It requires a different methodology and mindset, and the use, to start with at least, of some quite simple field exploration tools and techniques that are employed in countless mineral exploration projects the world over, such as stream sediment sampling. Nonetheless, this is important and potentially very significant work”.
Bluejay Mining* (AIM:JAY) 10.26p, Mkt cap £100m – Bluejay training students and personnel in Greenland for Dundas project
BUY – Valuation 40p
- Bluejay report on the training of students at the Greenland School of Minerals & Petroleum to support the new Dundas ilmenite mine
- The early development of the course and other training programs should help in the development and running of the new mine.
- Upskilling and accreditation/qualification of personnel to operate machinery and first aid are a priority along with many other skills required for operating the mine and managing the process plant.
- Dr. Bo Møller Stensgaard, a preeminent geologist and Bluejay’s CEO is leading the upskilling of Greenlanders from the local town of Qaanaaq in preparation for the development of the new mine. Bo was a senior research scientist at the Danish state survey and has advised multiple European federal and commercial entities in the field of commodity development.
Conclusion: Bluejay are pressing ahead with preparation for the development of the Dundas ilmenite mine following the receipt of a Letter of Intent from the US EXIM bank offering up to US$208m of funding for the capital requirements of the Dundas project. The US EXIM bank recently offed funding to IronBark of up to $216m at 1.46%.
The Bluejay team and consultants are currently optimising elements of the US$245m project feasibility.
Financing is now likely to be formed through a combination of development funding loans including Denmark, the EU and probably the US supported by offtake finance.
*SP Angel act Nomad and broker to Bluejay. The analyst has previously visited the Enonkoski mine site in Finland. The analyst recently bought stock in Bluejay.
IronRidge Resources* (AIM:IRR) 21p, Mkt cap £95m – Progress at Ewoyaa Lithium Project
- IronRidge reports drilling progress at its Ewoyaa project in Ghana, where it has defined a JORC compliant mineral resource estimate of 14.5Mt at 1.31% Li2O inferred & 4.5Mt at 1.39% Li2O indicated.
- In terms of drilling progress, approximately 4,200m in 40 RC holes has been completed to date, with visible coarse spodumene mineralisation observed in 36 holes with maximum reported pegmatite intervals up to 36m and approximating true width.
- The company estimate that the planned 12,500m RC programme will be completed in or around early April 2021.
- Mineralised spodumene has been intersected in 36/40 holes currently drilled, with pegmatite intervals up to 36m long down hole and approximating true width of the dipping pegmatite dyke.
- Average pegmatite widths are between 10m to 15m true width from drilling completed to date, with pegmatites occurring over 300m strike, and three significant new pegmatite discoveries have been confirmed in drilling to date.
- The drilling programme is designed to test multiple new spodumene bearing pegmatites identified through the Company’s recent auger drill programme in order to add resource tonnes within the immediate project area, as well as advance the regional exploration pipeline by drill testing the Ndasiman, Amoanda and Hweda targets within the Saltpond and Apam West licenses respectively.
- CEO Vincent Mascolo commented: “Seeing multiple drill holes with coarse visible spodumene within each of the new pegmatite targets tested to date confirms the growth potential of the project. “We are confident the additional targets will increase resource scale and improve project economics, where we have defined Ghana’s first lithium JORC compliant resource of 14.5Mt at 1.31% Li2O and within 110km of an operating deep-sea port.”
“This drilling programme is a key part of our work towards expanding the resource base on what is widely considered to be an industry-leading asset. We are now evaluating options to fast track the project to production to take advantage of the increasing demand for lithium and its role in the future growth of stored energy initiatives.”
*SP Angel act as Nomad to IronRidge Resources
Keras Resources* (AIM:KRS) 0.12p, Mkt cap £7.5m – Chairman reports no outstanding requirements on grant of exploitation permit at Nayéga manganese mine in Togo
(Keras also hold an 85% interest in Societé General des Mines which holds the Nayéga manganese project license in Togo. Keras also holds 51% of Falcon Isle Holdings which holds 100% of the Diamond Creek phosphate mine which is operating in Utah, USA)
- Keras’ Chairman’s statement reports no outstanding requirements related to the grant of the exploitation permit at Nayéga manganese mine in Togo.
- The Nayéga mine and plant is ready to go at 6,500tpm and can increase to 25,000tpm (300,000tpa of manganese concentrate).
- EBITDA may rise to >US$0.5m a month on sales of around $1.25m a month on the 6,500tpm plant on a manganese ore price of $5.7/t and assuming costs have not changed significantly over the past two years. Upgrading the plant to 25,000tpa should be significantly more profitable assuming
- Manganese ore prices rose on Monday by 8.8% to $6.44-6.64/t (FastmarketsMB) indicating strengthening demand for manganese for steel and for EV Li-ion battery production.
- Manganese is an essential alloy that helps convert iron into steel while giving the steel additional strength and reducing its potential for failure.
- Diamond Creek: Keras report that Diamond Creek mine is the highest grade organic phosphate mine in the US containing a 28% Phosphorus pentoxide ‘P205′ premium product with minimum 14% available phosphorous.
- The mine sold its first batch of organic phosphate fertilizer product for around $260/t with sales expected to rise to >US$12.5mpa in 2024 assuming sales of 48,000tpa of organic phosphate at $260/t
- Costs are estimated to fall to around US$92/t from the initial $229/t indicating that margins and profits should grow substantially from here if prices are maintained.
- The mine has an estimated 60-year life at the planned 48,000tpa peak production rate based on non-JORC estimated. Drilling and pre-stripping shows 2.5 years of production for now.
- Keras reports a loss of $1.24m for 2020 vs a loss of £0.47m in 2019 when Keras included sales from the manganese bulk sample.
*SP Angel act as Nomad and Broker to Keras Resources
Mkango Resources* (LON:MKA) 19.25p, Mkt cap £23.3m – Pilot plant test-work underway
(Mkango’s 75.5% subsidiary, Maginto Ltd holds a 25% stake in HyProMag which is a partner in the ‘Rare–Earth Recycling for E-Machines’ RaRE project)
- Mkango Resources reports that pilot plant scale flotation test-work is now underway in Australia on a 600t sample of material from its 51% owned Songwe Hill rare-earths project in Malawi.
- The work is being undertaken by ALS Metallurgy in Perth and is a key step in determining the optimal process flow sheet design and in the commercialisation of the project as well as for the completion of the feasibility study for the development of Songwe Hill.
- The company confirms that it aims to complete the feasibility study during the fourth quarter of 2021. The study is being funded by a £12m investment by Talaxis which will have the right to increase its interest in the project by a further 26%, to 75%, by arranging project development finance.
- The flotation concentrate will also provide material for further testing and evaluation of the hydrometallurgical process, being undertaken by ANSTO in Australia, which forms the next stage of processing.
- Mkango Resources explains that as the “The majority of Songwe’s rare earths are hosted within fluorocarbonate minerals … [and consequently] … high capital and energy intensive kilns will not be required during hydrometallurgical processing, in contrast to projects dominated by monazite or other refractory rare earth minerals”.
- The opportunity to avoid the use of kilns in favour of hydrometallurgy may well offer important environmental benefits as well as financial advantages for the development of Songwe Hill and we will be interested to learn more of these aspects in the forthcoming feasibility study.
- Chief Executive, William Dawes, characterised the start of the pilot-scale test-work as “a major milestone for the company” which signifies that Mkango is joining “the ranks of the very few rare earths projects that have been advanced to this stage of development”.
- Mr. Dawes added that “Mkango is uniquely positioned in the rare earths sector with an integrated “mine, refine, recycle” strategy encompassing sustainably sourced rare earths from Malawi, rare earth magnet recycling in the UK, via its interest in HyProMag, and strategic options to develop EU and UK rare earth separation and refining capacity … [and that] … Rare earth prices have risen significantly over the recent months and the demand outlook is very positive, directly linked to growth in electric vehicles, wind power and other clean technology applications”.
Conclusion: In our opinion, the move to pilot-plant scale testing is a significant advance in demonstrating the applicability of the flowsheet for commercial scale operations at Songwe Hill as well as in harvesting the operational data required to refine the flotation process. The production of flotation concentrate in quantity will also provide material for testing of the improved hydrometallurgical circuit. We look forward to the Songwe Hill feasibility study later this year where we anticipate that the company will be able to quantify the economic advantages of its planned flotation and hydrometallurgical processing.
*SP Angel act as Nomad and Broker to Mkango Resources
Power Metal Resources* (AIM:POW) 2.7p, Mkt cap £28.9m – Option exercised to acquire Coco East Property
- Power Metal reports that it has exercised its option to acquire the Coco East Property located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada.
- Coco East is the second of four gold exploration properties upon which the Company has an exclusive option to acquire a 100% interest, and the property is situated upon the Schreiber-Hemlo Greenstone Belt at the eastern end of a 4.5km long 1km wide quartz feldspar porphyry intrusion that can be associated with up to twenty-two known gold and/or base metal occurrences.
- Coco East comprises 30 single cell mining claims covering a total area of 6.4km, and the company’s claims are valid through to 20 August 2022 upon which they can be renewed on an annual basis. For renewal the Coco East Claims will require an aggregate work spend of CAD$12,000 prior to the individual claim renewal dates.
- Geology of the property consists of intrusive porphyry, ultramafic, metavolcanic and metasedimentary rock packages prospective for both gold and volcanogenic massive sulphide style copper-lead-zinc-silver mineralisation.
- The vendors of the Option are a consortium led by established local prospector Brian Fowler. In exercising the option, POW will make a payment of CAD$30,000 and shares worth CAD$30,000. The POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3p per share.
- Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.
- The site is located 3.5km east of the Coco-Estelle Deposit where diamond drilling during 2017 intersected significant intervals of gold mineralisation including 11m @ 1.96g/t Au from 42m and 5m @ 5.9g/t Au from 63m.
*SP Angel act as Nomad and Broker to Power Metal Resources
Sibanye-Stillwater (JSE:SSW) ZAR6,950, Mkt cap ZAR205bn – Sibanye-Stillwater Partner up with Keliber for lithium in Finland
· Keliber has announced a significant partnership with Sibanye-Stillwater over its lithium project in Finland.
- The agreement sees Sibanye-Stillwater bridge financing €40m towards the development of Kelieber’s
- Sibanye-Stillwater is buying €15m worth of Keliber shares with other Keliber shareholders subscribing for up to €10m
- Keliber is proposing to build a 15,000tpa lithium hydroxide plant in Kokkola
- Sibanye-Stillwater intends to additionally finance development work of €15m later this year and in early 2022 and to play a key role as an industrial anchor investor.
- Neal Froneman and his team at Sibanye-Stillwater have successfully acquired and turned around and gold and platinum mining assets of Gold Fields and Lonmin in South Africa.
- Battery materials supply is part of Froneman’s strategic objective
Tirupati Graphite (LON:TGR) 91.5p Mkt Cap £68.1m – Trials of battery grade spherical graphite accelerate timetable to commercial production
- Tirupati Graphite reports the conclusion of tests of its Madagascan flake graphite with “a leading German equipment manufacturer” which have successfully demonstrated high yield averaging 45.8% and up to as high as 68.4%.
- The company also reports that the tests have shown “High Tapped Density” of up to 962gms/litre and which average 933g/l.
- Today’s announcement also says that it has “commissioned development and optimisation for the first of a series of commercial scale 3,000tpa SPG manufacturing plants with German specialist” and adds that the “Fast evolving growth in the global electric vehicle (‘EV’) sector prompts the company to fast track the establishment of its first SPG capacity ahead of the current July 2022 target.”
- Tirupati Graphite says that it is well positioned as a non-Chinese, eco-friendly, source of spherical graphite in a market currently supplied wholly by Chinese sources.
John Meyer – [email protected] – 0203 470 0490
Simon Beardsmore – [email protected] – 0203 470 0484
Sergey Raevskiy –[email protected] – 0203 470 0474
Joe Rowbottom – [email protected] – 0203 470 0486
Richard Parlons –[email protected] – 0203 470 0472
Abigail Wayne – [email protected] – 0203 470 0534
Rob Rees – [email protected] – 0203 470 0535
Grant Barker – [email protected] – 0203 470 0471
Prince Frederick House
35-39 Maddox Street London
*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)
+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.
Sources of commodity prices
Gold, Platinum, Palladium, Silver
– BGNL (Bloomberg Generic Composite rate, London)
Gold ETFs, Steel
Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt
Natural Gas, Uranium, Iron Ore
– Bloomberg OTC Composite
Lithium Carbonate, Ferro Vanadium, Antimony
– Asian Metal
– Metal Bulletin
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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 ([email protected]).
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%