SP Angel . Morning View . Wednesday 07 09 22Metals sag on weak Chinese trade data and rising US dollarMiFID II exempt information – see disclaimer below LON:UFO – Rod McIllree strengthens board as Executive ChairmanLON:ARCM*– Anglo American is looking for a Senior Project Geologist to work on-site in Zambia
SP Angel . Morning View . Wednesday 07 09 22
Metals sag on weak Chinese trade data and rising US dollar
MiFID II exempt information – see disclaimer below
Alien Metals Ltd (AIM:UFO, OTC:ASLRF) – Rod McIllree strengthens board as Executive Chairman Arc Minerals Limited (AIM:ARCM)*– Anglo American is looking for a Senior Project Geologist to work on-site in Zambia BlueJay Mining PLC (AIM:JAY, OTCQB:BLLYF)* – Bluejay completes drill program at Enonkoski for joint venture with Rio Tinto Bluerock Diamonds PLC (AIM:BRD)* – Interims highlight 44% yoy increase in value per carat sold in first half Diamond Fields Resources Inc (OTCMKTS: DFIFF) – Burkina Faso drilling identifies new gold zone within the Cascades Gold Project Keras Resources PLC (AIM:KRS)* – Diamond Creek raises phosphate production to meet new demand Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF)* – CoTec provides £500k funding Premier African Minerals Ltd (AIM:PREM) – Resource drilling at the Zulu Lithium project, Zimbabwe Thor Mining PLC (AIM:THR, OTC:THORF, ASX:THR) – Progress report on Australian and US exploration projects
Copper slides on strengthening dollar despite record low Chinese inventories
Gold prices retreat on dollar’s relentless rally and climbing Treasury yields
Eurometaux warns of ‘existential’ threat to European metal production as energy crisis intensifies
US and EU ramp up Russian aluminium and nickel imports despite Putin’s invasion of Ukraine
Iron ore prices edge higher on China stimulus demand optimism
China drought bolsters rising coal prices in hit to power-desperate Europe
Vale Indonesia inks $2bn deal with Chinese metal producers for nickel processing plant
Dow Jones Industrials -0.55% at 31,145
HK Hang Seng -1.13% at 18,985
Global economy contracts for the first time since June 2020 despite further easing in cost inflation, J.P.Morgan Global Composite PMI shows.
US – A contraction in private sector accelerated in August led by a sharp drop in the services’ activity, although, inflationary pressures are easing, according to S&P Global PMI data.
China – A recovery is losing momentum as trade data slows more than expected August.
Taiwan - CPI 2.7% yoy in August
EU – Construction PMI 44.2 in August vs 45.7 in July
Germany – Weak industrial production numbers follow up on a drop in orders reported yesterday as the sector battles with high input costs and logistical challenges.
UK – House prices rebounded in August with London posting the strongest growth in six years, according to Halifax.
US$0.9905/eur vs 0.9969/eur yesterday. Yen 144.06/$ vs 141.49/$. SAr 17.360/$ vs 17.084/$. $1.150/gbp vs $1.159/gbp. 0.672/aud vs 0.678/aud. CNY 6.972/$ vs 6.942/$.
US Dollar index – 110.52 / +0.28% on week
Gold US$1,699/oz vs US$1,715/oz yesterday
Gold ETFs 99.5moz vs US$99.7moz yesterday
Platinum US$859/oz vs US$858/oz yesterday
Palladium US$2,002/oz vs US$2,071/oz yesterday
Silver US$18.05/oz vs US$18.38/oz yesterday
Rhodium US$14,200/oz vs US$14,000/oz yesterday
Copper US$7,584/t vs US$7,733/t yesterday
Aluminium US$ 2,245/t vs US$2,296 yesterday
Nickel US$ 21,250/t vs US$21,458/t yesterday
Zinc US$ 3,110/t vs US$3,214/t yesterday
Lead US$ 1,878/t vs US$1,904/t yesterday
Tin US$ 20,875/t vs US$21,585/t yesterday
Oil US$91.5/bbl vs US$95.4/bbl yesterday
Natural Gas US$8.017/mmbtu vs US$8.767/mmbtu yesterday
Uranium UXC US$51.80/lb vs US$52.40/lb yesterday
Iron ore 62% Fe spot (cfr Tianjin) US$97.0/t vs US$94.8/t
Chinese steel rebar 25mm US$581.3/t vs US$584.3/t
Thermal coal (1st year forward cif A RA) US$312.0/t vs US$312.0/t
Coking coal swap Australia FOB US$270.0/t vs US$273.0/t
Cobalt LME 3m US$51,955/t vs US$51,955/t
NdPr Rare Earth Oxide (China) US$83,547/t vs US$84,630/t
Lithium carbonate 99% (China) US$69,204/t vs US$69,504/t
China Spodumene Li2O 5%min CIF US$5,110/t vs US$5,010/t
Ferro-Manganese European Mn78% min US$1,233/t vs US$1,231/t
China Tungsten APT 88.5% FOB US$333/t vs US$333/t
China Graphite Flake -194 FOB US$815/t vs US$815/t
Europe Vanadium Pentoxide 98% 7.3/lb vs US$7.3/lb
Europe Ferro-Vanadium 80% 31.75/kg vs US$31.75/kg
China Ilmenite Concentrate TiO2 US$228/t vs US$329/t
Spot CO2 Emissions EUA Price US$72.1/t vs US$73.8/t
Brazil Potash CFR Granular Spot US$860.0/t vs US$860.0/t
Alien Metals Ltd (AIM:UFO, OTC:ASLRF) – 0.61p, Mkt cap £31m – Rod McIllree strengthens board as Executive Chairman
Arc Minerals Limited (AIM:ARCM)* 3.05p, Mkt Cap £35m – Anglo American is looking for a Senior Project Geologist to work on-site in Zambia (Arc holds 72.5% of Zaco and 66% of Zamsort in Zambia. The Cheyeza license is 66% owned by Arc Minerals through its holding in Zamsort.) (Arc holds 75% in Alvis-Crest (Proprietary) Limited which holds two licenses in the Kalahari Copper Belt, known as Virgo covering >210km2, around 10km south east the recently commissioned Khoemacau Copper in Botswana.)
Conclusion: Anglo appear to be gearing up for something in Zambia. This role is most likely to involve work on Arc Mineral’s licenses but could also involve other areas of exploration. Either way, Anglo appears to be moving back into Zambia after pulling out in the late 90s.
*SP Angel acts as Nomad and broker to ARC Minerals
BlueJay Mining PLC (AIM:JAY, OTCQB:BLLYF)* 6.05p, Mkt cap £63m – Bluejay completes drill program at Enonkoski for joint venture with Rio Tinto (Bluejay has a staged $20m jv with Rio Tinto and holds 100% of Enonkoski Ni-Cu-Co, Hammaslahti Cu-Zn-Au-Ag and Outokumpu Cu-Co-Zn-Ni-Au-Ag projects)
Conclusion: The results of the drill program give clues to the geologists about the potential for significant nickel, copper and other metal accumulations.
*SP Angel acts as nomad and broker to Bluejay Mining
Bluerock Diamonds PLC (AIM:BRD)* – 8.3p, Mkt cap £1.9m – Interims highlight 44% yoy increase in value per carat sold in first half
Conclusion: BlueRock were unfortunate to suffer such an extended wet season this year as South Africa suffered catastrophic floods. Management had prepared for wet weather but the use of low-grade stockpiles for an extended period was unexpected and reduced sales while wet weather also delayed the movement of waste material required to access more fresh, higher grade ore. While BlueRock is better prepared for wet weather going forward the save operation of trucks and mining equipment on wet and slippy kimberlite ore will always slow the mining of fresh ore through the wet season.
*SP Angel act as Nomad and broker to Bluerock Diamonds. The analyst holds shares in BlueRock Diamonds.
Diamond Fields Resources Inc (OTCMKTS: DFIFF) C$0.15, Mkt Cap C$27m– Burkina Faso drilling identifies new gold zone within the Cascades Gold Project
Conclusion: Diamond Fields’ initial drilling at the Cascades Gold Project shows the potential of the expanded licence area and we look forward to further news as the exploration continues.
Keras Resources PLC (AIM:KRS)* 6.25p, Mkt cap £5m – Diamond Creek raises phosphate production to meet new demand (Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA. Keras also holds an 85% interest in Societé General des Mines for the Nayéga manganese project in Togo)
*SP Angel acts as nomad and broker to Keras Resources
Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF)* 12p, Mkt Cap £26m – CoTec provides £500k funding
*SP Angel acts as nomad and broker to Mkango Resources
Premier African Minerals Ltd (AIM:PREM) 0.36p, Mkt Cap £81m – Resource drilling at the Zulu Lithium project, Zimbabwe
Conclusion: Resource drilling for the DFS has been temporarily suspended at the Zulu Lithium project to help ease the backlog of samples for assaying. Results reported today, however, show some wide intersections in excess of 1% Li2O which we look forward to seeing reflected in the DFS mineral resources estimates.
Thor Mining PLC (AIM:THR, OTC:THORF, ASX:THR) 0.55p, Mkt Cap £11.1m – Progress report on Australian and US exploration projects
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 Oil Brent - ICE Natural Gas, Uranium, Iron Ore - NYMEX Thermal Coal - Bloomberg OTC Composite Coking Coal - SSY RRE - Steelhome Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite - Asian Metal
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