SP Angel . Morning View . Monday 24 02 20
Gold jumps greater on unfold of Coronavirus Pandemic
MiFID II exempt data – see disclaimer under
SP Angel . Morning View . Monday 24 02 20
Gold jumps greater on unfold of Coronavirus Pandemic
MiFID II exempt data – see disclaimer under
Anglo Asian Mining* (LON:AAZ) – Detailed This autumn exploration replace bodes properly for Gedabek LoM extension and highlights greenfield discovery potential
Bluejay Mining* (LON:JAY) – Social Impression Evaluation confirmed compliant for public session
Gemfields (LON:GEM) – Emerald public sale outcomes
Kodal Minerals* (LON:KOD) – Progress on Bougouni mining licence utility
Nano One Supplies* (CVE:NNO) – – Nano One raises C$11m
SolGold* (LON:SOLG) – Constitutional Courtroom rejects strikes to ban mining
Automakers to fall wanting EU emissions targets
EV gross sales in Europe have been slower than anticipated while SUV gross sales have elevated, leading to a internet enhance in emissions. The outcome, automakers are set to overlook 2021 emissions goal set by the EU and incur heavy fines. (Electrek)
A report by PA consulting suggests the worst offenders and people set to take the biggest fines are VW, Fiat-Chrysler, Ford and the Renault-Nissan-Mitsubishi Group. Whole fines throughout the trade may rise above €14bn.
The anticipated shift in EV momentum from China to Europe this 12 months is prone to be pushed by automakers making EU targets a precedence in a bid to keep away from the resultant heavy fines for non-compliance. (Autocar)
Toyota is anticipated to obtain the bottom fines, the Firm’s earlier shift to hybrid autos enhancing their combine. 71% of the Firm’s European portfolio is anticipated to be standard or plug in hybrids by 2021. Jaguar can be prone to solely obtain a modest high-quality however does have a decrease emissions goal as a consequence of promoting lower than 300,000 autos a 12 months within the EU. (Gizmodo)
Ferro-vanadium costs fall in Western Europe as influence of Coronavirus begins to chew
Costs for ferro-vanadium fell 3.0% to $28.2-30.3/kg in Western Europe final week
Vanadium pentoxide fell 5.3% to $6.5 – 7/kg Rotterdam
Ferro-vanadium costs rose within the US by 2.2% to $13.6-14.25/lb
Drones making exploration sooner, extra correct, safer and considerably inexpensive
We’re seeing a fast enhance within the utilisation of drones for exploration and surveying by junior mining corporations making their work sooner, simpler and cheaper.
Current information reveals drones getting used for photogrammetric surveying, Induced Polarisation surveys in addition to normal mapping.
Drones are actually in a position to do low-altitude geophysical magnetic prospecting from simply 5 meters above the bottom even in rugged terrain with diminished magnetic interference within the flight platform with sensors slung under the drone.
Drones are in a position to carry delicate and beneficial tools safely over tough terrain and may cut back the necessity to reduce roads and contours into beforehand inaccessible areas.
The result’s to make surveying sooner, extra correct and significantly cheaper for the analysis of mineral prospects notably in troublesome terrain.
Dow Jones Industrials -0.78% at 28,992
Nikkei 225 -0.39% at 23,387
HK Dangle Seng -1.79% at 26,821
Shanghai Composite -0.28% at 3,031
FTSE 350 Mining -4.40% at 17,387
AIM Fundamental Sources +1.24% at 2,372
Currencies
US$1.0836/eur vs 1.0816/eur yesterday. Yen 111.34/$ vs 111.74/$. SAr 15.134/$ vs 15.132/$. $1.292/gbp vs $1.292/gbp. 0.660/aud vs 0.660/aud. CNY 7.028/$ vs 7.033/$.
Commodity Information
Gold US$1,682/ozvs US$1,634/ozyesterday
Gold ETFs 84.0moz vs US$83.9moz yesterday
Platinum US$977/ozvs US$982/ozyesterday
Palladium US$2,703/ozvs US$2,706/ozyesterday
Silver US$18.77/ozvs US$18.54/ozyesterday
Base metals:
Copper US$ 5,697/t vs US$5,724/t yesterday
Aluminium US$ 1,699/t vs US$1,706/t yesterday
Nickel US$ 12,520/t vs US$12,565/t yesterday
Zinc US$ 2,055/t vs US$2,104/t yesterday
Lead US$ 1,819/t vs US$1,840/t yesterday
Tin US$ 16,655/t vs US$16,500/t yesterday
Vitality:
Oil US$56.6/bbl vs US$58.6/bbl yesterday
Pure Fuel US$1.853/mmbtu vs US$1.875/mmbtu yesterday
Uranium US$24.60/lb vs US$24.60/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$89.9/t vs US$89.2/t
Chinese language metal rebar 25mm US$536.8/t vs US$534.6/t
Thermal coal (1st 12 months ahead cif ARA) US$57.8/t vs US$58.3/t
Coking coal swap Australia FOB US$159.0/t vs US$161.0/t
Different:
Cobalt LME 3m US$33,750/t vs US$33,750/t
NdPr Uncommon Earth Oxide (China) US$40,623/t vs US$40,589/t
Lithium carbonate 99% (China) US$5,549/t vs US$5,545/t
Ferro Vanadium 80% FOB (China) US$29.0/kg vs US$29.0/kg
Antimony Trioxide 99.5% EU (China) US$5.1/kg vs US$5.1/kg
Tungsten APT European US$240-245/mtu vs US$240-245/mtu
Graphite flake 94% C, -100 mesh, fob China US$540/t vs US$540/t
Graphite spherical 99.95% C, 15 microns, fob China US$2,550/t vs US$2,550/t
Battery Information
Lithium beneath stress
US lithium producer Livent noticed its share value fall 15% after the corporate advised expects lithium costs to stay depressed this 12 months. The Firm cited the glut of provide and coronavirus disruption as the explanations for this outlook. (Monetary Instances)
Livent will delay the growth of their Argentinian brine undertaking by 6 months because of the weak market circumstances. CE, Paul Graves spoke to present lithium costs being unsustainable for the trade which wants to take a position to be able to meet the rising demand from the carmakers pushing into EVs.
Elsewhere, Australian producer Galaxy Sources expects the coronavirus disruption to impact laborious rock lithium focus producers in Australia. The shopper base in China is being constrained by the virus outbreak and subsequent quarantines, unable to conclude purchases. (Argus)
The Firm has 65,000 dry metric tonnes (dmt) of lithium focus at its Mount Cattlin mine unsold as a result of downturn in demand.
Vulcan Vitality Sources receives constructive outcomes from scoping examine into its Zero-Carbon lithium undertaking
A scoping examine into Vulcan Vitality Sources’ Zero Carbon Lithium undertaking suggests manufacturing of lithium hydroxide and renewable vitality might be achieved with a net-zero carbon footprint. (Mining Expertise)
The undertaking is positioned 60km north of Stuttgart, Germany and hopes to mix geothermal vitality and lithium hydroxide monohydrate manufacturing. (Mining.com)
The lifecycle evaluation for the two stage undertaking indicated it might be the primary damaging carbon lithium undertaking on the earth.
Stage 1: development and operation of Direct Lithium Extraction and lithium hydroxide plant on the Insheim geothermal energy plant website. (Vulcan Vitality)
Stage 2, to begin 12 months after completion of stage 1 can be 2 bigger manufacturing wells accompanied by 10 new geothermal manufacturing wells. A geothermal, direct lithium and lithium hydroxide plant would even be constructed. Stage 2 depends on receiving a allow to drill geothermal manufacturing wells. (Vulcan Vitality)
Vulcan have said the scoping examine was carried out by a multi-disciplinary, worldwide in-house and unbiased crew along side specialist consultants. Pre-feasibility research will now begin, to be accomplished in late 2020. Stage 1 is scheduled to begin in 2023 and Stage 2 in 2024.
Firm Information
Anglo Asian Mining* (LON:AAZ) 148.5p, Mkt Cap £170m – Detailed This autumn exploration replace bodes properly for Gedabek LoM extension and highlights greenfield discovery potential
The Firm launched This autumn exploration replace protecting demonstrating constructive outcomes at Gedabek, Gosha and Ordubad Contract Areas.
At Gedabek Contract Space (CA), exploration works centered on working websites (Gedabek, Gadir and Ugur) in addition to a sequence of regional targets.
Drilling from floor and underground ranges at Gadir returned excessive grade intersections proving up lateral and down-dip extensions to the orebody.
The tunnel growth connecting Gadir decline with the Gedabek orebody is progressing properly with 488m accomplished in This autumn/19 and drill chambers being set as much as take a look at down-dip mineralised extensions.
Tunnel workings are presently within the northern a part of the Gedabek open pit and 120m under the pit quantity 4 with the crew planning to increase the tunnel to pit six the place the focused space of mineralisation is that this 12 months.
Collected information is for use within the Gedabek mineral sources and reserves replace scheduled for later this 12 months.
At an working Ugur open pit mine, 4 floor drill holes for a complete of 1,509m had been accomplished on the japanese fringe of the pit in This autumn/19 testing down dip extensions of the orebody with chosen intersections returning good copper grades together with:
25m at 1.93% Cu, 1.47% Zn and 125g/t Ag from 309m (19UGDD06);
Together with 5m at 2.78% Cu from 310m and 5m at 2.50% Cu from 321m.
Observe up work is being carried at beforehand recognized geophysical anomalies positioned throughout the trucking distance of the Gedabek processing advanced together with:
At Avshancli comprising three gold-copper areas has been topic to floor sampling, 1,732m of trenching and a sequence of floor diamond drill holes. Of 128 outcrop samples, 32 returned assay grades as excessive as 6.07g/t Au and 1.49% Cu. Trenching was carried in all three space throughout the quarter with chosen outcomes together with 1m at 5.27g/t and 0.30% Cu in addition to 4.5m at 4.29g/t and 0.49% Cu (AV1TR1). From 9 floor drill holes for 1,732m accomplished a notable intersection was recorded of 1.1m at 7.03g/t and 0.45% Cu from floor (19BFDD05). Moreover, the crew is carrying floor geophysics examine throughout three zones to establish additional drill targets.
At Gilar positioned 2km south of Avshancli 1 4 drill holes had been accomplished for 692m in This autumn/19 returning a specific intersection of 1.4m at 5.48g/t Au from 23m (19GLDD01).
At Parakend Bugor positioned 9km NW of the Gedabek open pit a complete of 343 outcrop samples had been collected with good outcomes recorded in 45 of these.
Additional work is deliberate at different ZTEM targets and identified mineral occurrences together with the gold prospect at Soyudlu, copper prospect at Maarif and copper-gold prospect at Bittibulag.
At Gosha CA, drilling centered on down dip extensions of the Gosha vein system whereas floor sampling and trenching examined Gosha close to mine potential throughout the quarter.
Drilling outcomes confirmed the mineralisation continues under the present ‘Zone 5’ growth with chosen intersections together with:
1.2m at 11.86g/t Au from 209m (GSHDD10);
0.7m at 3.07g/t Au from 297m (GSHDD11);
0.3m at 10.08g/t Au from 110m (GSHDD15);
0.3m at 10.10g/t Au from 68m (GSHDD17).
The crew is compiling information from the prolonged drilling programme to know whether or not a possible mine extension can show economical and warrants infill drilling; moreover, additional work is deliberate at different targets away from ‘Zone 5’ in addition to an extra work programme at polymetallic mineralisation found at Asrikchay.
At Ordubad CA, the crew is engaged on geological mannequin to prioritise drilling targets with outcomes so far highlighting important potential for a discovery.
Drillling assay outcomes obtained from Dirnis and Keleki throughout the quarter returned near floor excessive grade gold and copper intersections together with:
2.0m at 204g/t Au from 85m (Dirnis, DRDD06A);
4.1m at 10.61g/t Au from floor (Dirnis, DRDD09A);
3.5m at 8.76g/t Au and a couple of.69% Cu from floor, 8.5m at 7.23g/t Au and 1.23% Cu from 8m (Dirnis, DRDD09B);
2.4m at 1.95% Cu from 34m, 0.4m at 4.51% Cu from 41m (Dirnis, DRDD13A);
1.0m at 126.61g/t Au from 25m (DIrnis, DRDD21);
0.8m at 158.80g/t Au from 20m, 1.0m at 86.06g/t Au from 87m and 0.7m at 249.17g/t Au (Keleki, KLDD03);
1.0m at 139.56g/t Au from 106m (Keleki, KLDD05)
New geological map might be put collectively in Q1/20 utilizing satellite tv for pc imagery, collected geochemical sampling and information from subject mapping.
Additional geological mapping, trenching and sampling work might be carried round Dirnis-Keleki-Aylis-Urchurdag, all clustered inside a number of km’s radius.
Moreover, a provisional 7,200m drilling programme might be carried within the space between Shakardara and Piyazbashi, Aylis in addition to targets round Dirnis.
The Pure Historical past Museum analysis crew accomplished the second website go to to Ordubad amassing extra samples learning the Cu-porphyry potential of the world.
Conclusion: A complete exploration replace launched demonstrates good progress on quite a lot of fronts throughout the in depth land bundle inside three contract areas. At Gedabek CA, drilling yielded each down dip and lateral extensions to the excessive grade Gadir orebody, tunnelling works continued to ascertain entry to the Gedabek orebody down dip extensions for future exploration and growth actions, deeper drill holes at Ugur returned huge excessive in copper intersections whereas follow-up take a look at work at beforehand recognized anomalies delivered encouraging drilling outcomes. At adjoining Gosha CA, the crew is amassing drilling information to be later utilized in a desktop examine testing financial viability of down dip extensions of the Gosha orebody in addition to budgeting extra CA-wide exploration together with drilling at Asrikchay that was delayed as a consequence of prolonged drilling programme on the Gosha mine. At Ordubad CA, the Firm works on updating the geological mannequin incorporating all the most recent information for observe up exploration and drilling concentrating on to unlock the copper and gold upside potential of the greenfield undertaking.
The Firm is properly positioned to proceed to de-risk in depth underexplored land holding and set up a pipeline of tasks for future natural development supported by debt-free stability sheet and powerful free money move era.
*SP Angel acts as nomad and dealer to Anglo Asian Mining
Bluejay Mining* (LON:JAY) 8.3p, Mkt Cap £80m – Social Impression Evaluation confirmed compliant for public session
(Dundas Ilmenite undertaking, Greenland, 100% owned)
Bluejay Mining report the Greenland Ministry of Mineral Sources has confirmed the Firm’s SIA ‘Social Impression Evaluation’ for the Dundas ilmenite undertaking to be compliant with tips for the needs of public session associated to an Exploitation Licence.
The SIA concluded the development and graduation of the ilmenite sand mine at Dundas could have a considerably constructive impact on the livelihoods of the folks of Greenland.
The SIA and EIA Environmental Impression Evaluation will now be introduced to the Authorities of Greenland for approval to begin the general public session interval as a part of the approval course of for an exploitation licence.
“Bluejay has just lately commenced dialogue with the Ministry of Trade, Vitality, Analysis and Labour beneath the Authorities of Greenland concerning the brand new amendments to the “Massive-Scale Undertaking Act” in Greenland to be able to consider the choice of concurrently making use of for a Massive-Scale Undertaking Allow with its utility for an Exploitation Licence.”
*SP Angel act as nomad to Bluejay Mining. *SP Angel have visited the Dundas, Itelak ilmenite sands undertaking in Greenland.
Gemfields (LON:GEM) 11p, Mkt Cap £134m – Emerald public sale outcomes
Gemfields report the sale of 19 out of 25 plenty of emeralds auctioned in Lusaka, Zambia.
The 19 tons bought for a complete of US$11.5m representing US$3.01/ct with 64% of the carats provided bought.
Gemfields has run 35 auctions of emeralds and beryl (lesser high quality stones) since July 2009 producing US$647m in gross sales averaging US$18.5mpa in gross sales per public sale.
These public sale outcomes are barely higher than Gemfield’s final two February auctions although the common per carat worth is down 10% on final February.
The variety of emeralds and beryl provided was 8% greater than final February and 21% greater than in February 2018.
The February public sale is mostly worse for costs and we suspect a few of the higher high quality stones are both held again or successfully overly priced for the February public sale.
Have been administration asking too excessive a value for a few of the tons within the public sale?
Did Kagem promote higher high quality plenty of emeralds in its public sale final August?
Gemfield’s August 2019 public sale bought US$18.6m value of emeralds at a median US$4.75/ct representing a considerably greater gross sales value.
Gemfields just lately reported 11 fatalities inside its Montepuez licenses in Mozambique following quite a lot of incursions into Gemfields licenses by artisanal miners.
Conclusion: Whereas it’s fascinating to analyse the public sale gross sales and worth per carat bought the final word choose of worth for the emerald enterprise is the whole gross sales worth versus the price of working the mine.
Whole gross sales had been 6% greater than the final two February auctions representing a reasonably constructive outcome given weakening shopper sentiment and a worsening international economic system.
Coronavirus influence: Information of the coronavirus doesn’t seem to have impacted this public sale.
Jewelry gross sales in China and different affected areas might be hit as shoppers steer clear of retailers as seen with the 98% fall in auto gross sales in China final month.
We’d not be shocked if jewelry gross sales rose in different areas however the normal financial influence of the Coronavirus could also be to cut back complete shopper spending on luxurious objects.
*An SP Angel mining analyst has beforehand visited the Kagem emerald mine and Montepuez ruby mine
Kodal Minerals* (LON:KOD) 0.055p, Mkt Cap £5.1m – Progress on Bougouni mining licence utility
Kodal Minerals stories that members of its senior administration crew have attended the primary technical assembly with representatives of Mali’s Course Nationale de la Geologie et des Mines (DNGM) as a part of the mining licence utility course of for its Bougouni Lithium Undertaking.
The assembly, which “reviewed all technical elements of the undertaking and proposed growth, as outlined within the Feasibility Research” included a abstract presentation on the proposed undertaking and supplied a chance for the corporate to reply “to normal questions concerning the proposed operation”.
Kodal Minerals explains that, with the Environmantal Approval having already been granted, the subsequent step after DNGM endorsement of the undertaking “is for the Firm to attend the ministerial fee assembly. This session is convened by the Ministry of Mines and representatives from numerous ministries are invited, together with the Ministry of Finance. This assembly might be referred to as after formal reporting of the DNGM assembly is obtained by the Ministry of Mines.”
CEO, Bernard Aylward, is quoted saying that “Our mining licence utility is continuing shortly, and we’re happy with how the DNGM technical assessment assembly progressed. Kodal Minerals has beforehand introduced the geology, sources and proposed mining growth to the DNGM and has hosted technical visits to our Bougouni website on earlier events and continues our observe of working intently with the Malian authorities to make sure progress of our undertaking.
Conclusion: The mining allow utility for Bougouni is reported to be continuing easily following a gathering with DNGM in Mali. We await information on DNGM’s formal endorsement of the undertaking and a date for the ministerial fee assembly.
*SP Angel acts as Monetary Adviser and dealer to Kodal Minerals A companion at SP Angel acts as Chairman to the corporate.
Nano One Supplies* (CVE:NNO) – C$1.51, mkt cap C$101.5m – Nano One raises C$11m
Nano One Supplies stories the elevating of C$11m at a value of C$1.15/s for one new share and a warrant for one half of a share.
The warrants are exercisable at C$1.6/s until 21st February 2023.
Nano One provides a major resolution for cathode supplies which is reported to raised stand up to the battery meeting course of, charging and provides elevated stability and sturdiness.
Cathode materials characterize the main price part of Li-ion batteries at round 22% of the price of the common battery.
The purpose is to extend capability and vitality density with out sacrificing sturdiness or security.
Nano One’s course of additionally provides half the method steps of different lithium-cathode manufacturing processes which ought to, in principle, drive down prices and manufacturing time.
The corporate are additionally working in collaboration with Volkswagen on superior, long-lasting, battery supplies as a consortium companion with SDTC (Sustainable Growth Expertise Canada).
The corporate is collectively creating the ‘One Pot Course of’ with Pulead (China) for the manufacturing of lithium iron phosphate (LFP) cathode materials.
Pulead is one in all China’s main Li-ion battery cathode producers developed by Oriental Funding Co. Ltd and Peking College and is changing into a key participant within the Li-ion battery provide chain,
‘Nano One, working with a uncooked materials sourcing knowledgeable in China, has recognized uncooked materials provide sources that meet each Nano One’s efficiency targets and Pulead’s specs for impurities and price’”
Nano One can be anticipated to finish an engineering report detailing an LFP manufacturing line for assessment by Pulead early in 2020.
LFP is claimed to be the most secure, lowest price and most lasting lithium ion cathode materials making it excellent to be used in electrical buses, vitality storage methods and different industrial purposes.
Nano One’s proprietary course of is reported to have considerable price benefits over conventional strategies of manufacturing LFP.
Pulead produced 15,000 tons of LFP in 2018 and has bold development plans primarily based on their forecast for international demand to succeed in 200,000tpa by 2025.
This coupled with their manufacturing and provide chain experience ought to make them a superb companion for Nano One’s patented know-how.
Conclusion: The C$11m of funding ought to allow Nano One to proceed to advance its cathode course of growth work.
*SP angel acts for Talga Sources which has developed quite a lot of graphite anode supplies for enhancing the efficiency of lithium batteries utilizing graphite from it’s mine in Sweden and services within the UK and Germany. SP Angel additionally acts for Renascor which is seeking to develop a brand new graphite mine in South Australia. SP Angel acts for Kodal Minerals, Savannah Sources and IronRidge Sources that are creating lithium spodumene mining tasks.
SolGold* (LON:SOLG) 21.45p, Mkt cap £412.6m – Constitutional Courtroom rejects strikes to ban mining
Solgold stories that the Constitutional Courtroom in Ecuador has rejected a petition in search of to ascertain native session “to contemplate the prohibition of mining actions throughout the province of Azuay, Southern Ecuador”.
Azuay province hosts Solgold’s wholly owned Sharug undertaking which the corporate describes as a “excessive precedence undertaking“ with the potential “for the invention of a world class orebody with commensurate advantages for Ecuador and SolGold.”
The corporate quotes a press release made by Ecuador’s Ministry of Vitality and Non-Renewable Pure Sources issued on 22nd February which says that the Authorities “reaffirms its dedication to advertise accountable, regulated and managed mining in all Ecuadorean territory.”
This assertion follows an earlier, related, petition, which was additionally rejected and Solgold says in right this moment’s announcement that “This resolution, along side the beforehand rejected petitions of the same nature in each the Imbabura and Azuay provinces, units a robust precedent for any future petitions for session to contemplate adjustments to the structure of Ecuador”.
Conclusion: The most recent ruling by the Constitutional Courtroom confirms Ecuador’s assist for accountable mine growth as a way to ship financial advantages for its inhabitants.
*SP Angel act as Monetary Advisor and dealer to Solgold
Analysts
John Meyer – 0203 470 0490
Simon Beardsmore – 0203 470 0484
Sergey Raevskiy – 0203 470 0474
Gross sales
Richard Parlons – 0203 470 0472
Abigail Wayne – 0203 470 0534
Rob Rees – 0203 470 0535
SP Angel
Prince Frederick Home
35-39 Maddox Avenue London
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*SP Angel are the No1 built-in nomad and dealer by variety of mining brokerage shoppers on AIM in keeping with the AIM Advisers Rating Information (joint brokerships excluded)
+SP Angel staff could have beforehand held, or presently maintain, shares within the corporations talked about on this notice.
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