SP Angel . Morning View . Gold holds $1430 as fresh US sanctions strike Iran

SP Angel – Morning View – Tuesday 25 06 19

Gold holds $1430 as fresh US sanctions strike Iran

CLICK FOR PDF

MiFID II exempt information – see disclaimer below

 

Anglo American (AAL LN) – De Beers diamond sales

Amur Minerals* (AMC LN) – 2018 results

Berkeley Energia Ltd (BKY LN) – Drilling for battery metals

IronRidge Resources* (IRR LN) – Spodumene reaffirmed as Ewoyaa dominant lithium project

KEFI Minerals* (KEFI LN) – Tulu Kapi update

MOD Resources (MOD LN) – Sandfire to acquire MOD Resources

Strategic Minerals* (SML LN) – £890,000 fund raising.

Thor Mining* (THR LN) – Gold assaying at Pilot Mountain

Tri-Star Resources* (TSTR LN) – 2018 results

 

Japan backed infrastructure projects in South East Asia worth $367bn vs China at $255bn

• The investments are in the region’s six largest economies of Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
• By comparison the European Commission has agreed to invest some €4bn across 25 large infrastructure projects in 10 member states.
• China’s belt and road Initiative is estimated to cost around US$4-8tr and extends across Asia into Europe.
• China is seen as supporting the cost with loans into regional governments which may struggle with their repayments unless the new infrastructure brings new economic growth.
• Many infrastructure projects pass through neighbouring countries and may see much value pass through their boarders and on into China rather than see much wealth creation locally.

 

Dow Jones Industrials		+0.03%	at	26,728
Nikkei 225		-0.43%	at	21,194
HK Hang Seng		-1.22%	at	28,165
Shanghai Composite		-0.87%	at	2,982
FTSE 350 Mining		-0.22%	at	20,302
AIM Basic Resources		+0.54%	at	2,064

 

Economics

China – The US and China are reported to have resumed trade talks ahead of an eagerly awaited Trump/Xi meeting at the G20 summit.

• VP Liu He had a phone call with Steven Mnuchin and Robert Lighthizer agreeing to maintain communications.

 

US dollar weakness supports base metals prices

• The US$ index is down at the lowest level since March this year on the back of strengthening expectations for a rate cut.
• Markets are currently pricing in at least a 40% chance of two rate cuts before the end of the year.

 

US interest rates – traders pricing in three Fed rate cuts by year-end

• President Trump is keen to weaken the US dollar and to see a stronger Chinese Yuan as part of his Trade War negotiations.
• US dollar weakness is principally due to a rise in investor sentiment towards Fed Rate Cuts, with two or three rate cuts now expected by the year end.
• The Fed is seen as limited in its decision making as if the Fed fails to cut rates the US dollar will rise, US equities will likely fall and bond markets may falter, none of which is seen as good for the US.
• Trump’s comments that the ‘Fed doesn’t know what it is doing’ while the Fed was keen to raise rates does not help but Trump’s Trade War is creating real reasons for

 

US – Donald Trump asks why the US is protecting shipping lanes for other nations.

• It’s a good point, most of the oil passing through the Straits of Hormuz is destined for China and Japan.
• Japan contributes US$2bnpa to the US for its protection since the deconstruction of its armed forces at the end of WWII.
• Japan has raised military defence spending to protect against North Korea and other missile strikes

 

US / Iran – The US imposes the sanctions on Supreme Leader Ayatollah Ali Khamenei and other top officials on Monday increasing pressure on Tehran after US drone was shot down last week.

• Additionally, Washington said it would impose sanctions on Iran’s Foreign Minister Zarif later this week.
• In response, Tehran argued that new sanctions permanently closed the path to diplomacy between the US and Iran.
• Trump said that the sanctions were in part a response to the shooting down of the drone, but would have happened anyway.

 

Germany – Business confidence dropped to the lowest level since November 2014 this month after declining for a third consecutive month, according to the Ifo Institute numbers.

• This raises fears that Germany recorded a drop in economic output in Q2/19.
• The Bundesbank said this month it expects the economy to contract slightly in Q2 following a 0.4% growth recorded in Q1.
• The government halved its 2019 growth forecast to 0.5% following a 1.5% reading in 20198, the weakest rate in five years.
• Trade war between the US and China was named as the main source of uncertainty for German businesses.
• Business climate index came in at 97.4 in June v 97.9 in May and 97.2 forecast.

 

Germany – hundreds of climate change activists shut the Garzweiler coal mine in Germany

• A second group of activists also closed a rail line to a the coal-fired Neurath power station.
• We wonder how popular the activists will be if the state cuts power to homes and factories in the region?
• We also wonder if some of the activists may be subtly sponsored by agencies which seek to undermine the economic success of Germany.

 

UK -  Boris Johnson, the favourite in the race for the UK PM role, said he will seek new Brexit deal with the EU and is prepared to take the UK out without a deal should the EU refuse his demands.

• The pound is little changed today holding onto gains recorded last week reflecting a weakness in the US$ amid signs of a potential Fed rate cut.

 

Zimbabwe abolishes the use of foreign currencies as it moves to stamp out the black market and inflation

 

Georgia – Anti-government protests

• Russia accuses the US of promoting anti-government and anti-Russian protests in Tbilisi, Georgia.
• Russia also bans direct flights and wine exports.

 

Currencies

US$1.1395/eur vs 1.1380/eur yesterday  Yen 106.98/$ vs 107.43/$  SAr 14.326/$ vs 14.294/$  $1.276/gbp vs $1.273/gbp  0.696/aud vs 0.695/aud  CNY 6.883/$ vs 6.878/$

 

Commodity News

Precious metals:         

Gold US$1,430/oz vs US$1,402/oz yesterday

• Safe haven demand accelerated as fresh US sanctions on Iran signal ongoing uncertainty in global markets, with semi-official Iranian Students New Agency reporting that the path to a diplomatic solution with Washington has closed, citing foreign ministry spokesman Abbas Mousavi.
• Investors also turn to the G-20 summit this weekend where President Donald Trump and Xi Jinping are scheduled to meet to discuss trade, although U.S. officials are downplaying expectations, insisting America wasn’t prepared to compromise on demands for meaningful Chinese economic reforms.
• Market participants may also turn to Federal Reserve Chairman Jerome Powell’s speech in New York later on Tuesday, which may provide insight on monetary policy.
• Chinese officials this week said both sides need to be prepared to compromise for talks to succeed, but U.S. officials have so far maintained a hard line. Tensions in the Middle East are also rising following Trump’s sanctions on Iran’s supreme leader, Ayatollah Ali Khamenei, and eight senior military commanders, that deny him and his office access to financial resources.

   Gold ETFs 73.8moz vs US$73.7moz yesterday

Platinum US$812/oz vs US$814/oz yesterday

Palladium US$1,534/oz vs US$1,516/oz yesterday

Silver US$15.44/oz vs US$15.35/oz yesterday

           

Base metals:   

Copper US$ 5,985/t vs US$5,948/t yesterday

• Striking at the Chuquicamata mine in northern Chile could impact the world’s largest supplier, Codelco, $50m as it loses up to 10,000t production if it extends for two weeks, impacting a market already expected to remain in deficit.
• The union strike has entered its 12^th day, with no signals of agreement between the company and union at the 321,000tpa copper operation.
• Santiago-based consultants Plusmining add “Codelco has been quite clear that they are offering the best possible terms for workers…and workers say the only way to end this conflict is not higher bonuses, but equal conditions between existing and new workers.”
• Copper prices have received minor support with disruptions from the company’s third largest mine, despite demand concerns from global trade tensions, in a global market forecasting 189,000t deficit in 2019, according to the International Copper Study Group.
• No talks are scheduled between Codelco and Chuquicamata’s Unions 1, 2 and 3, which represent around 3,200 workers at the mine, reports Rolando Milla, president at Union No. 3.
• On Saturday, 55% of workers voted to reject the company’s latest offer and continue the strike. Under Chilean labor rules, Codelco can make a new offer on June 28, or workers can abandon the strike individually from June 29, automatically accepting a previous offer from the company.
• Central to the negotiations are retirement plans for approx. 1,700 workers whose jobs will be cut once the mine transitions from open pit to underground operations in the next 12 months.

Aluminium US$ 1,799/t vs US$1,769/t yesterday

Nickel US$ 12,180/t vs US$12,120/t yesterday

Zinc US$ 2,504/t vs US$2,447/t yesterday

Lead US$ 1,914/t vs US$1,900/t yesterday

Tin US$ 18,980/t vs US$18,895/t yesterday

           

Energy:           

Oil US$64.7/bbl vs US$65.7/bbl yesterday

Natural Gas US$2.296/mmbtu vs US$2.207/mmbtu yesterday

Uranium US$24.65/lb vs US$24.65/lb yesterday

           

Bulk:   

Iron ore 62% Fe spot (cfr Tianjin) US$110.5/t vs US$110.6/t

• Iron ore prices extended declines from five-year high as Vale SA bring its Brututu mine back online to restore almost a third of shuttered capacity following the deadly tailings disaster in January.
• Prices for the steel raw material surged as Vale halted 93Mt production, prompting fears of a global shortage. Vale said last week Brazil’s Superior Court of Justice revoked the injunction stopping it from using its Laranjeiras dam in Brucutu, clearing the way for the company to reopen the mine within 72 hours.
• Iron ore had received strong support on the Vale closures, with port stockpiles in China slumping for 11 weeks, matching the longest streak since 2015, to the lowest since 2017, according to Shanghai Steelhome E-Commerce co. data.
• The price for iron ore could receive additional downside pressure as municipal governments in Tangshan have requested the city’s steel mills to extend capacity cuts to the end of July to reduce air pollution.
• In contrast China’s materials sector, including steel and cement, could receive support as there could be more stimulus to offset the negative impact of the dispute.

Chinese steel rebar 25mm US$606.6/t vs US$603.8/t

Thermal coal (1st year forward cif ARA) US$65.0/t vs US$64.8/t

Coking coal futures Dalian Exchange US$207.8/t vs US$209.5/t

           

Other:  

Cobalt LME 3m US$28,000/t vs US$28,000/t

NdPr Rare Earth Oxide (China) US$53,395/t vs US$53,455/t

Lithium carbonate 99% (China) US$9,444/t vs US$9,600/t

Ferro Vanadium 80% FOB (China) US$39.0/kg vs US$39.0/kg

Antimony Trioxide 99.5% EU (China) US$5.7/kg vs US$5.7/kg

Tungsten APT European US$250-255/mtu vs US$255-265/mtu – China, Fanya exchange metal sales may continue to disrupt speciality metals

• Speciality metals to be sold by the court tender out of the collapse of the Fanya commodity exchange may continue to depress some speciality metals markets.
• Some tungsten producers have cut back in China in anticipation of Fanya sales and lower prices.
• When the Fanya exchange closed it had around US$6.7bn from 220,000 creditors in China making it quite a big deal by any standards.
• The Fanya exchange bought 14 speciality metals in its bid to rival the LME as a major exchange and on the basis of what goes into LCD displays
• So far the Court has only put up stocks of Indium, Gallium and Tungsten for auction
• Fanya's reported stocks of its main listed products also included 19,228t of bismuth, 26,951t of tungsten APT, 18,661t of antimony and 191t of gallium. (Argus Media)
• The metals include Indium where the exchange reported 3,600t of indium before its collapse, bismuth, antimony, terbium
• While indium is mainly used in indium tin oxide in LCD screens many manufacturers have moved to LED displays with much smaller amounts of indium.
• Some former investors in the Fanya exchange are reported to be opposed to selling metal and accept losses

 

Battery News

Tesla starts work on substation to power Gigafactory 3 ahead of production

• Tesla is just months away from its aggressive goal of starting production at Gigafactory 3 in Shanghai in Q4 as it begins work on the substation to power the new factory.
• Gigafactory 3 is Tesla’s first manufacturing facility in China and it’s also the first electric vehicle factory wholly-owned by a foreign automaker in the country.
• As the trade war between China and the US keeps getting more complicated, it’s becoming more important than ever for Tesla to have manufacturing capacity in China, allowing Tesla to avoid increasingly uncertain import tariffs in the biggest auto market in the world.
• About 7 months ago, Tesla announced a deal with the Shanghai government to build a wholly owned local factory and only about 5 months ago, they secured the 210-acres of land for Gigafactory 3 in China necessary.
• Recently, drone video updates show that the building of the massive factory is almost completed.
• However, it takes a lot more than a building in order to achieve production and we are starting to see more work on that front as Tesla is just months away from its planned production date.
• Tesla previously said that they updated the production layout designed for Gigafactory 3 to be more optimized at the new factory in Shanghai.

 

Company News

Anglo American (AAL LN) FOLLOW 2198.5 pence, Mkt Cap £28.4bn – De Beers diamond sales

• Anglo American reports that De Beers sold US$390m of diamonds in its 5^th sales cycle of the year. This compares with sales for the 5^th sales cycle last year of US$416m.
• We estimate that the sale brings year to date diamond sales to approximately US$2.4bn compared to US$2.9bn at the equivalents stage last year.
• Commenting on the sales figures, Bruce Cleaver, CEO of De Beers said that “While overall retail sentiment for diamond jewellery in the US remains solid, a more challenging environment in China and higher than normal polished diamond inventories in the midstream resulted in a cautious approach from rough diamond buyers during the fifth cycle of 2019.”

Conclusion: De Beers diamond sales are seeing the impact of a challenging sales environment in China and cautious trading by buyers of rough diamonds.

 

Amur Minerals* (AMC LN) FOLLOW 2.5p, Mkt Cap £17.5m – 2018 results

• Operationally, the Company released an updated mineral resource statement in Mar/18 significantly expanding the Kun Manie sulphide nickel/copper resource.
• JORC compliant resource increased 50% to 155mt at 1.02% NiEq for 1.58mt NiEq placing Kun Manie among the world’s five largest undeveloped nickel sulphide projects.
• All changes involved resource expansion at two deposits – Ikenskoye and Kubuk.
• 2018 field season focused on infill drilling implemented at a narrow grid allowing for categorisation as Indicated tonnages that would then form the basis for updated mineral reserves.
• The team completed just over 32,500m of drilling within 169 holes taking the grand total to 117,343m at kin Manie.
• Infill drilling at the IKEN high grade zone, western part of KUB and ISK that strikes between IKEN and KUB is expected to potentially convert some 25mt into a higher confidence Indicated category.
• Step out drilling at IKEN, KUB and ISK may potentially add 25-30mt to the Mar/18 MRE most of which would be included in the Indicated category.
• Having significantly expanded the Kun Manie resource, the Company is focused on detailed engineering phase of the project including incorporating latest drilling results into the potential mine plan, completing more metallurgical work, while running studies on logistics, road design and environmental/social impact.
• This will form the basis for upgrading the recently released PFS that valued Kun Manie at $615-987m (NPV10%) yielding 29-35% IRR for two production scenarios to a higher confidence BFS level.
• Additionally, the Company is actively engaged in identifying and attracting potential strategic partners for the development stage.
• Financially, the Company reported $3.3m loss for the year (2017: -$1.2m) comprised of $2.2m in admin (2017: $1.9m) and $1.2m in finance costs (2017: -).
• $2.0m was spent on exploration (2017: $3.2m).
• Closing cash balance stood at $1.3m (2017: $2.6m).
• Outstanding convertible bonds stood at $1.7m (2017: -) after the Company issued 50.9m new shares in respect of a settlement of $2.4m in principal and accrued interest of the initial $4m drawdown in H1/18.
• The Company extended the maturity of $1.2m of outstanding loans by a 12 months to Mar/20 earlier this year as well as drew down on further $0.5m. 10.9m warrants with an exercise price of 3.76p per share were issued to the investors as part of this restructuring and second draw down.

*SP Angel act as Nomad and Broker to Amur Minerals

 

Berkeley Energia Ltd (BKY LN) FOLLOW 21p, Mkt Cap £54m – Drilling for battery metals

(Salamanca uranium mining project, Spain)

• Berkeley Energia report they have started a drill programme for critical battery and EV metals.
• The 13 hole drill program for 3,350m of drilling is targeting lithium, cobalt, tin, tungsten and rare earths across the company’s 12,000km² license area
• Berkeley’s team are using ‘Ionic Leach methodology’ a first for Spain for the ultra-low detection of metals and minerals.
• The company has also been awarded a 31km² license which included some former lithium and titanium operations.
• Berkeley Energia continues exploration around its Salamanca uranium mine where progress has been stalled due to permitting and opposition to uranium mining.
• Management reported various legal challenges to appointments to the Board of the Nuclear Safety Council in Spain in April.
• ‘The Company continues to await the recommendation report from the Nuclear Safety Council and has appealed, along with others, the recent appointments to the Board of the Council and awaits the Supreme Court's ruling on this matter.’
• The decision of the Nuclear Safety Council appears to be critical to further progress at Berkeley’s Salamanca Uranium mining project in Spain and we await further news on the ongoing court case on the recent appointments and then on the decision of the Nuclear Council on the Salamanca Uranium project.

Conclusion: Management’s rather general statement on the drill program lacks detail on the targets being drilled and does not give much confidence in the potential for economic discovery from this drill program. We look forward to further detail from the drilling when the assays come through.

 

IronRidge Resources* (IRR LN) FOLLOW 14.4p, Mkt Cap £44.6m – Spodumene reaffirmed as Ewoyaa dominant lithium project

• IronRidge report additional X-Ray Diffraction analysis of metallurgical test-work on gravity concentrates and residues reaffirming spodumene as the dominant lithium mineral phase in all ten composites analysed. The phase represents greater than 91% and up to 98% of available lithium.
• The dominant mineralogy supports the concept for simple process flow-sheet design and broad customer acceptance, with low level to trace amounts of undesirable petalite, eucryptite, lepidolite and amblygonite observed.
• Trace lithium mineral phases were observed in the residue fraction confirming minimum losses at a coarse 6.3mm crush, with no recorded contaminants.

Conclusion – Spread of spodumene mineralogy phase across the Ewoyaa deposit gives confidence for the envisioned simple process flow-sheet, and we look forward to the maiden JORC resource at the Cape Coast project to understand the scale of operation.

*SP Angel act as nomad and broker to IronRidge Resources

 

KEFI Minerals* (KEFI LN) FOLLOW 1.5p, Mkt Cap £10.2m – Tulu Kapi update

• The Company released a comment regarding local reports of a failed coup attempt in Bahir Dar, the capital of the Amhara Region, over the weekend.
• The chief of staff of the Ethiopian army, Gen Seare Mekonnen, was shot by hid bodyguard in Addis Ababa while regional governor, Ambachew Mekonnen, along with an adviser were killed in Amhara.
• Authorities reported the situation was brought under control with the man accused of trying to topple the government of the region currently on the run.
• Bahir Dar is located c.500km away from the Project and KEFI is reporting the Tulu Kapi project is unaffected and remains on track with the previously guided development plan.
• In the meantime, the Company elevated security procedures as part of precautionary measures.
• The flagship 1.1moz Tulu Kapi project is due to see the start of resettlement works in mid-2019 and the closure of the remaining debt funding package before YE19 paving the way for the first gold pour in mid-21 (SP Angel schedule).
• The project is expected to run at 135kozpa and $810/oz AISC yielding $75mpa in EBITDA at $1,350/oz gold price with KEFI’s 45% interest in the project potentially worth $67m.

*SP Angel act as Nomad and Broker to KEFI Minerals

 

MOD Resources (MOD LN) FOLLOW 21p, Mkt cap £63.8m – Sandfire to acquire MOD Resources

• MOD Resources has announced that Sandfire has agreed to acquire the company in a recommended Scheme of Arrangement deal worth A$167m.
• MOD Resources shareholders are offered 0.0664 Sandfire shares for each MOD share. A cash alternative of A$0.45/share is available for a maximum of 25% of the consideration.
• The offer is reported to represent a 45% premium to both the last closing price of MOD and to its 20 day VWAP.
• The company reports that its Board, which holds approximately 7% of the shares, has unanimously recommended the offer as has Metal Tiger which owns 10.48%.

Conclusion: Sandfire has recognised the potential of MOD Resources’ advanced T3 copper project in Botswana as well as the wider potential of its exploration portfolio.

 

Strategic Minerals* (SML LN)FOLLOW  1.65p, Mkt Cap £23.2m – £890,000 fund raising.

• Strategic Minerals has announced that it has raised £890,000 via the placing of approximately 63.6m shares at a price of 1.4p/share
• The new shares represent approximately 4.3% of the enlarged share capital of the company.
• The placing was supported by the company’s largest shareholder, the Manners family as well as three of the directors (Messrs. Peters, Wale and Harrison) who now collectively own approximately 7.5% of the company, and “two employees and a consultant”.
• The company explains that the “proceeds of the Placing are primarily intended to partially fund the settlement of the CRL transaction [under which Strategic Minerals is to acquire the 50% of Cornwall Resources which it does not already own – thus consolidating the Redmoor tin/tungsten project], which the Company intends settling on 27^th June, albeit with alternate funding arrangements currently being finalised”.
• Proceeds will also “be used to provide working capital for the Leigh Creek Copper Mine project, which is expected to deliver significant cashflow following the full restart of production, expected in the first quarter of 2020.”
• Strategic Minerals also comments that “payment of US$4,065,000, owed to the Company by the major Cobre client, is imminent and could be received at any time”. This payment had originally been expected to be received earlier in June.
• Chairman, Alan Broome, explained that “This modest placing has been undertaken as we await the anticipated receipt of over US$4 million from the Cobre client. SML appreciates the continued backing of our largest shareholder, as well as from another large, existing investor. The remaining participants in the Placing consisted of the Board and the wider SML team”.
• Mr. Broome also said that “We remain in close contact with our Cobre client and believe payment may occur at any time. However, we are carefully preparing to progress a claim for substantial potential lost profits, should payment not be forthcoming in the near future”.

Conclusion: The additional capital should ease the funding of the acquisition of New Age Exploration’s share of the Redmoor project pending receipt of additional funds from Cobre’s client which are still expected imminently. We are encouraged that the company’s largest shareholder and its management team are supporting the funding.

*SP Angel act as Nomad and Broker to Strategic Minerals

 

Thor Mining* (THR LN) FOLLOW 0.875p, Mkt Cap £7.1m – Gold assaying at Pilot Mountain

• Thor Mining reports its intention to re-assay up to 1200 samples from 27 holes drilled at its Pilot Mountain project in Nevada between 2012 to 2017 for gold.
• The Pilot Mountain project has been primarily seen as a tungsten project based around the Desert Scheelite, Garnet Mountain and Good Hope deposits, however recent metallurgical test work has shown the presence of gold assays of up to 0.29g/t.
• Commenting on what he described as an exciting phase for the project, Executive Chairman, Mick Billing, said “In the event that gold appears with any consistency in the Pilot Mountain deposits, we may have a step change of substance for this project”.

Conclusion: We await the results of the gold assaying with interest as if an additional potential revenue stream can be identified for the Pilot Mountain project where the September 2018 scoping study work outlined a US$30-35m capital development project with a payback of 12-18 months using an APT price of US$350/mtu (current price is approximately US$255/mtu).

*SP Angel act as joint broker to Thor Mining

 

Tri-Star Resources* (TSTR LN) FOLLOW 39p, Mkt Cap £36.7m – 2018 results

(Tri-Star holds 40% of jv company SPMP alongside The Oman Investment Fund and Dutco Natural Resources)

(Odey Asset Management, holds a 72.06% interest in TriStar Resources)

• Tri-Star Resource reports a loss of $2.0m for 2018 (2017 loss  -£6.5m) as its 40% owned SPMP works to overcome commissioning issues at its environmentally advanced antimony/gold processing plant in Oman where the “Project is only due to commence commercial operations in H2 2019, with full production forecast for 2020”.
• The 31^st December 2018 balance sheet shows short term loans of £1.13m and cash of £0.31m.
• Operations generated an outflow of £0.81m during the year while investment , almost entirely a loan of £12.70m to the associate (SPMP) and loan repayments amounting to £3.56m were offset by a share issue of approximately £17.2m.
• As reported yesterday, remedial action at the plant in Oman is now substantially complete and “SPMP now expects to be able to move to the production phase of processing antimony and gold dore” and expects to make “further announcements in this regard over the coming months as ramp up commences. It should be noted, however, that similar to all complicated engineering processes, there may be unforeseen issues that will need to be solved.”
• Commenting on the results, CEO/CFO, David Facey, said that “We are pleased that the remedial works to resolve the technical issues announced on 18 February 2019 [are] largely completed … We look forward to SPMP moving to the production phase of processing antimony and gold doré. Financially, we have achieved a healthy reduction in our ongoing running costs, reduced our debt levels and provided financial support to the SPMP Project.”

Conclusion: Tri-Star Resources is now looking towards commercial production after a protracted commissioning period which has required remedial measures to the plant which are now reported to be substantially complete.

*SP Angel acts as Nomad to Tri-Star Resources

 

 

Analysts

John Meyer – 0203 470 0490

Simon Beardsmore – 0203 470 0484

Sergey Raevskiy – 0203 470 0474

James Mills -0203 470 0486

 

Sales

Richard Parlons – 0203 470 0472

Jonathan Williams – 0203 470 0471

Abigail Wayne – 0203 470 0534

Rob Rees – 0203 470 0535

 

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

 

*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.

 

DISCLAIMER

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%