SP Angel – Morning View –Wednesday 03 04 19
Trade deal optimism sees commodities higher
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African Battery Metals* (ABM LN) – Cameroon Cobalt Nickel Project
Aura Energy (AURA LN) – Mauritania gold exploration licences
Bushveld Minerals (BMN LN) Target Price 87p – Eskom signs US$180m loan for renewable energy expansion
Griffin Mining (GFM LN) – Resource uplift at Caijiaying zinc mine’s Zone III in China
redT energy plc (RED LN) – Oxford ‘superhub’
Strategic Minerals* (SML LN) – Fluffing up heaps at Leigh Creek copper project
Trans-Siberian Gold (TSG LN) – Rodnikova deposit, Kamchatka
WTO cuts global trade growth projection for 2019 to the weakest in three years on the back of increasing commercial tensions and tariffs.
Dow Jones Industrials
HK Hang Seng
FTSE 350 Mining
AIM Basic Resources
US – Trade talks optimism has been given a boost by new comments from White House economic adviser Larry Kudlow yesterday that the office expects “to make more headway” in talks this week.
China – Private business sentiment indices climbed in March which combined with positive manufacturing PMI released earlier this week point to a stabilisation in the growth slowdown amid government led stimulus.
Eurozone – Revised PMI data points to modest growth in March helped by the services sector that more than compensated for a continuing slump in the manufacturing segment.
UK – PM May is considering working with the opposition Labour leader on softer Brexit options including a customs union with the EU.
British soldiers caught using pictures of Jeremy Corbyn for target practice in Kabul
Turkey – The election commission will recount votes in eight districts of Istanbul as the President Erdogan’s AK Party appealed results.
US$1.1237/eur vs 1.1203/eur yesterday. Yen 111.53/$ vs 111.37/$. SAr 14.117/$ vs 14.222/$. $1.319/gbp vs $1.305/gbp. 0.712/aud vs 0.708/aud. CNY 6.711/$ vs 6.719/$.
Gold US$1,291/oz vs US$1,287/oz yesterday - Gold prices are steady amid an investors’ optimism over the US/China trade talks outlook.
Gold ETFs 71.7moz vs US$71.9moz yesterday
Platinum US$861/oz vs US$848/oz yesterday
Palladium US$1,436/oz vs US$1,420/oz yesterday
Silver US$15.18/oz vs US$15.06/oz yesterday
Copper US$ 6,495/t vs US$6,477/t yesterday
Aluminium US$ 1,899/t vs US$1,895/t yesterday
Nickel US$ 13,345/t vs US$13,170/t yesterday – use in batteries to rise to 15-20% of total batter demand from 3-4% today in new 10-year outlook by Roskill
Zinc US$ 2,900/t vs US$2,900/t yesterday
Lead US$ 1,998/t vs US$2,015/t yesterday
Tin US$ 21,245/t vs US$21,480/t yesterday
Oil US$69.8/bbl vs US$69.1/bbl yesterday
Natural Gas US$2.680/mmbtu vs US$2.705/mmbtu yesterday
Uranium US$25.60/lb vs US$25.45/lb yesterday
Iron ore 62% Fe spot (cfr Tianjin) US$88.6/t vs US$85.8/t - Iron ore shipments disruptions from Brazil and Australia see rates for capsize freight continue to slide after losing 95% since January 24, the day the Brumadinho dam wall collapsed.
Chinese steel rebar 25mm US$623.7/t vs US$617.3/t
Thermal coal (1st year forward cif ARA) US$70.8/t vs US$71.3/t
Coking coal futures Dalian Exchange US$187.6/t vs US$187.3/t
Cobalt LME 3m US$31,500/t vs US$30,000/t
NdPr Rare Earth Oxide (China) US$41,890/t vs US$42,042/t
Lithium carbonate 99% (China) US$9,690/t vs US$9,673/t
Ferro Vanadium 80% FOB (China) US$57.5/kg vs US$59.0/kg
Antimony Trioxide 99.5% EU (China) US$6.5/kg vs US$6.5/kg
Tungsten APT European US$271-282/mtu vs US$271-282/mtu
0.43p, Mkt Cap £1.5m – Cameroon Cobalt Nickel Project
Conclusion: The attractions of the Cameroon cobalt/nickel project have been confirmed and exploration work is expected to be started shortly.
*SP Angel act as broker to African Battery Metals
0.625p, Mkt Cap £7.1m – Mauritania gold exploration licences
Conclusion: The licences have taken a while to be awarded however work by previous operators has already identified promising targets for Aura Energy to follow-up.
32p, Mkt cap £364m – Eskom signs US$180m loan for renewable energy expansion
STRONG BUY (from BUY) - Target Price 87p
(Bushveld Minerals now hold 74% of Vametco and 84% of Bushveld Energy it’s vanadium redox battery unit)
Conclusion: The advance of renewable energy in South Africa will create greater need for more battery storage for grid support and balancing. This should be good for Bushveld Energy assuming the Eskom trial supports the use of Bushveld Energy’s vanadium-redox flow battery.
*SP Angel act as nomad and broker to Bushveld Minerals
112 pence, Mkt Cap £192m – Resource uplift at Caijiaying zinc mine’s Zone III in China
Conclusion: A more detailed insight into the geological controls to the Zone III mineralisation as a result of drilling has delivered a meaningful increase to resources. Continuing work on other mineralised bodies at Caijiaying using the insights gained from the Zone III studies is expected to be completed soon. We look forward to further updates when the current work is completed.
2.3p, Mkt Cap £18m – Oxford ‘superhub’
1.6p, Mkt Cap £23m – Fluffing up heaps at Leigh Creek copper project
*SP Angel act as Nomad and broker to Strategic Minerals
55.5p, Mkt Cap £61m – Rodnikova deposit, Kamchatka
Conclusion: The successful bid for the Rodnikova deposit is expected to see Trans Siberian Gold awarded the licence within the next month.
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Richard Parlons – 0203 470 0472
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Rob Rees – 0203 470 0535
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