SP Angel – Morning View – Monday 15 04 19
$300bn investment planned in EV manufacturing
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Apollo Minerals (AON AU) – Permits to reinstall mine services at Salau
Atalaya Mining (ATYM LN) – Strong performance at Proyecto Riotinto lifts 2018 results
Beowulf Mining* (BEM LN) – Kallak and Vardar mine update
Lydian International (LYD CN) – Court rules to clear the Amulsar site off trespassers and protesters
Petra Diamonds (PDL LN) – Q3 production results support maintained production guidance
PolyMet Mining* (PLM US) BUY – Target under review (was US$1.56/s) – Polymet may now consider expansion now that permits have been issued
Savannah Resources* (SAV LN) – Moving to secure 100% of Mina do Barroso lithium project
Serabi Gold (SRB LN) – Q1 production on track for full year guidance
Talga Resources* (TLG AU) – Battery anode process and product results show positive impact on PFS
Mining in space
$300bn investment in EVs planned over next 5-10 years
Key planned EV investments:
VW pushing its jv partners to build >1GW battery manufacturing plant on economies of scale
Dow Jones Industrials
HK Hang Seng
FTSE 350 Mining
AIM Basic Resources
US reduces trade deal demands in negotiations with China
US – Treasury Secretary Mnuchin said he was hopeful trade negotiations were “close to the final round”.
China – Money supply data released on Friday came in higher than forecast with aggregate credit growth in Q1 easily exceeding previous two years.
EU – The EC prepared a list of US imports worth around €20bn that it could hit with tariffs over a transatlantic aircraft subsidy dispute, EU diplomats said on Friday.
Turkey – Unemployment hits the highest level in a decade as the economy struggles after slipping into a recession last year.
US$1.1319/eur vs 1.1283/eur yesterday. Yen 111.94/$ vs 111.85/$. SAr 13.938/$ vs 14.061/$. $1.310/gbp vs $1.306/gbp. 0.718/aud vs 0.713/aud. CNY 6.704/$ vs 6.718/$.
Gold US$1,287/oz vs US$1,293/oz yesterday
Gold ETFs 71.9moz vs US$71.9moz yesterday
Platinum US$886/oz vs US$895/oz yesterday
Palladium US$1,368/oz vs US$1,376/oz yesterday
Silver US$14.96/oz vs US$14.98/oz yesterday
Copper US$ 6,481/t vs US$6,440/t yesterday
Aluminium US$ 1,857/t vs US$1,859/t yesterday – Rusal is planning to invest $200m in return for a 40% stake in a Kentucky rolling mill making it the largest new aluminium plant built in the US in nearly four decades and marking Rusal’s first investment in the US since sanctions were lifted earlier this year.
Nickel US$ 12,975/t vs US$12,935/t yesterday
Zinc US$ 2,925/t vs US$2,881/t yesterday – Trafigura, a commodity trading house, moved in to take control of Nyrstar through a debt restructuring deal.
Lead US$ 1,941/t vs US$1,931/t yesterday
Tin US$ 20,775/t vs US$20,595/t yesterday
Oil US$71.4/bbl vs US$71.0/bbl yesterday - US to sanction tankers carrying Venezuelan oil
Natural Gas US$2.643/mmbtu vs US$2.672/mmbtu yesterday
Uranium US$25.85/lb vs US$25.85/lb yesterday
Iron ore 62% Fe spot (cfr Tianjin) US$93.7/t vs US$92.1/t - prices continue to rise to $93.7/t in China on the impact of Cyclones in Australia and Vale’s dam failure
Chinese steel rebar 25mm US$649.3/t vs US$642.7/t
Thermal coal (1st year forward cif ARA) US$74.7/t vs US$75.0/t
Coking coal futures Dalian Exchange US$187.7/t vs US$187.3/t
Cobalt LME 3m US$34,500/t vs US$34,500/t
NdPr Rare Earth Oxide (China) US$39,899/t vs US$39,816/t
Lithium carbonate 99% (China) US$9,620/t vs US$9,601/t
Ferro Vanadium 80% FOB (China) US$48.5/kg vs US$48.6/kg
Antimony Trioxide 99.5% EU (China) US$6.4/kg vs US$6.4/kg
Tungsten APT European US$270-282/mtu vs US$270-282/mtu
Apollo Minerals* (AON AU) A$0.13, Mkt Cap A$21.8m – Permits to reinstall mine services at Salau
Conclusion: Regaining access to the old workings in order to carry out detailed assessment work on the old Salau mine is an essential precursor to establishing the viability of regenerating one of Europe’s premier tungsten mines. We look forward to further news on progress.
*An SP Angel analyst has previously visited and assessed the Salau tungsten mine in France
235 pence, Mkt Cap £322.7m – Strong performance at Proyecto Riotinto lifts 2018 results
Conclusion: Atalaya Mining has successfully implemented major plant expansions while maintaining production in the past and the latest expansion to 15mtpa throughput, which is now well advanced for completion by the end of the quarter, is following a similar path.
6.4p, Mkt Cap £37m – Kallak and Vardar mine update
Conclusion: Beowulf is making progress on all fronts. We look forward to drill results from Kosovo and to further progress in the long-running permitting saga in Sweden.
*SP Angel acts as nomad and broker
Lydian International (LYD CN) 0.18c, Mkt Cap CAD136m – Court rules to clear the Amulsar site off trespassers and protesters
17.04p, Mkt Cap £147.5m – Q3 production results support maintained production guidance
Conclusion: Petra Diamonds maintains its focus on debt reduction as the large-scale capital investment phase ends. It is particularly encouraging that the Block-caving at the Cullinan mine is now contributing the recovery of large, and potentially revenue-enhancing diamonds on a relatively frequent basis.
PolyMet Mining* (PLM US) US$1.13, Mkt Cap US$362m – Polymet may now consider expansion now that permits have been issued
BUY – Target under review (was US$1.56/s)
Conclusion: Polymet is a valuable and strategic asset now that it has all its required mining, processing and tailings permits. The plant may be able to help Antofagasta develop its Twin Metals project in Minessota which lies on the Mississippi side of the watershed in the Boundary waters area. The plant is also very well located along the railroad from Talon Metals’ Tamarack nickel-copper project.
*SP Angel were formerly retained by Polymet Mining as UK broker
5.7p, Mkt Cap £50.2m – Moving to secure 100% of Mina do Barroso lithium project
Conclusion: Savannah Resources has advanced the Mina do Barroso lithium project quickly since it became involved and the restructuring of the ownership is a pragmatic move which appears to enjoy the support of Slipstream Resources and the other minority owners of the project. We welcome the confirmation of the priority being given to the Definitive Feasibility Study in order to reach a development decision.
*SP Angel acts as Nomad to Savannah Resources
39.5p Mkt value £23.2m – Q1 production on track for full year guidance
Talga Resources* (TLG AU) A$0.62, Mkt Cap A$135m – Battery anode process and product results show positive impact on PFS
*SP Angel acts as UK broker to Talga Resources. SP Angel analysts have visited the leading battery R&D institution WMG partnering with Talga.
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Simon Beardsmore – 0203 470 0484
Sergey Raevskiy – 0203 470 0474
James Mills -0203 470 0496
Richard Parlons – 0203 470 0472
Jonathan Williams – 0203 470 0471
Abagail Wayne – 0203 470 0534
Rob Rees – 0203 470 0535
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SP Angel research note on commodities and miners, featuring: Adriatic Metals* (ADT AU) – Trading on LSE expected to commence on 12th December Asiamet Resources (ARS LN) – Project update Erris Resources (ERIS LN) – Erris signs option to acquire 80% of Scottish gold project Nano One Materials* (NNO CN) – report progress with Pulead in the evaluation of production for lithium-iron-phosphate cathode material NOVONIX Limited* (NVX AU) – conditional agreement to supply lithium-ion battery anode material to Samsung SDI Resolute Mining (RSG LN) – Completion of roaster repairs at Syama
Gfinity (GFIN) boasts partnerships with esports brands like Activision Blizzard’s Call of Duty, and Microsoft’s Forza Racing Championship, but it is the partnerships with traditional sports brands like the Premier League and Formula 1 that are attracting attention.
The £5 billion bidding battle for Just Eat is heading for a Christmas showdown, with both suitors under mounting pressure to sweeten the terms of their competing offers for the food delivery group, British science is to be handed a major boost from a US property developer preparing to plough up to $500m (£380m) into building new laboratories across the country