SP Angel . Morning View . Commodities and equities continue to rall

SP Angel . Morning View . Wednesday 29 04 20

Commodities and equities continue to rally


MiFID II exempt information – see disclaimer below


Altus Strategies* (ALS LN) – Positioned for growth in FY20

BHP (BHP LN) – Pledges another A$3m to fight coronavirus 

Kavango Resources (KAV LN ) – Review highlights Kalahari Suture Zone similarities with other major nickel regions

Mkango Resources* (MKA LN) – Results highlight progress towards feasibility study

Caledonia Mining* (CMCL LN) – Quarterly dividend

Condor Gold* (CNR LN) – Permit awarded for Mestiza pit 

Scotgold Resources* (SGZ LN) BUY Target 119p – Loan facility terms changes

SolGold* (SOLG LN) – Phase 2 metallurgical testing shows enhanced gold recoveries and improved concentrate quality  

Tertiary Minerals* TYM – Issue of shares to Precious Metal Capital Group


JP Morgan Asset Management advise their clients of an inflation bomb waiting to go off

We suggest some smaller gold stocks for review:

  • Anglo Asian* (Azerbaijan) – a seasoned well established gold producer
  • Chaarat Gold* (Armenia and Kyrgyzstan) – growth focused FSU producer – click for note
  • Condor Gold* (Nicaragua) – La India gold project in Nicaragua is moving closer to production with permit for high-grade pit reported this morning
  • Cora Gold* (Mali) – still exploration but looks interesting – click for note
  • Empire Metals* (Georgian Mining) – The Kvemo Bolnisi project in Georgia will produce gold ahead of the underlying copper if it ever gets its permits
  • IronRidge* (Chad, Ivory Coast and Ghana) – huge gold licenses for exploration in Chad, Ivory Coast plus gold and lithium in Ghana.
  • Kefi Minerals* (Ethiopia) – waiting to complete finance package and start development. This ‘could’ be Kefi’s breakthrough year
  • SolGold* (Ecuador) – has 22moz of gold in its resource. Still early-stage in its mine economics and planning
  • Rambler Metals & Mining* (Canada) – click for note
  • Scotgold* (Scotland) – developing the Cononish gold mine for 20,000ozpa production click for note

*SP Angel act as nomad and or broker


Unions may block US auto makers return to work on 18 May on longer-term job and welfare concerns

  • US Auto manufacturers want to return to work on 18 may but may be hampered by unions that will be looking to protect jobs and have their say
  • Social distancing gives manufacturers the perfect excuse to manage with fewer staff and cut costs where possible
  • Lower expected demand and supply chain disruption for new vehicles will also fuel the drive to cut costs where possible
  • We suspect there will be some tough negotiations between unions and management but the result is likely to be fewer jobs


SK Innovation to build $727m battery plant in the US

  • SK Innovation is spend $2.5bn in the US as it begins construction of a new 11.7GWh EV battery factory in Georgia in July. (The Korea Herald)
  • Production is scheduled to begin in 2022 in Georgia.
  • The company plans to invest a total $1.5bn in the US with a combined battery capacity of 21.5GWh (Times Live, Reuters)
  • A first 9.8GWh, $903m factory is being built in Tennessee with production scheduled for 2022. (Electrek)
  • The two US facilities are added to SK Innovations factories in South Korea, China and Hungary. (The Korea Herald)
  • SK is embroiled in a legal battle with LG Chem, a bad outcome for SK could see them being unable to import EV batteries and components.
  • SK Innovation currently supplies VW and Ford.


Stimulus funding

  • $2tn US fiscal package approved by Congress. US may add $0.6t state aid for mortgage markets and travel industries
  • US – The House passed a $484bn aid package to rescue small small businesses, hospitals ($75bn) and coronavirus testing ($25bn).
  • $2tn US – Trump looking at $2tn infrastructure fund
  • $700bn – US + Fed rate cut to 0-0.25% last night. The $700bn QE to buy Treasuries and mortgage-backed securities.
  • $963bn (€750bn) ECB scraps limits on sovereign bond purchases. ECB PEPP buying running at around €250bn
    • EU Finance Ministers have so far failed to agree on a strategy to mitigate the economic impact of the pandemic.
    • $825bn (€756bn) Germany – Bundestag approved €156bn in extra borrowing and ~€600bn in emergency funds
    • $344bn – China stimulus + $127.2bn. China stimulus was $586bn in 2009
    • $996bn (108.2tn yen) – Japan +  BoJ pledge for unlimited quantitative easing
    • 400bn (£330bn) UK + $242bn (£200bn) UK QE from BoE & no business rates plus £25,000 cash grants for hospitality sector
    • $387bn (€304bn) France, $200bn (€200bn) Spain, $214bn (A$320bn) Australia, $78bn (C$107bn) Canada, $32bn Saudi Arabia, US$43.7bn Singapore, $22.6bn India, $19.3bn HK, $13.7bn South Korea, $10bn Switzerland, $8.4bn Italy, $7bn NZ, $3.5bn Ireland, $2bn Taiwan, $0.75bn Indonesia,
    • Argentina to default on $10bn of dollar debt issued til the end of the year. Does no affect the $70bn that Argentina is currently in talks to restructure.
    • $1,000bn – IMF available + $12bn World Bank,
    • >12.4tn Total


Dow Jones Industrials





Nikkei 225





HK Hang Seng





Shanghai Composite







China – Local governments may issue some CNY 4tn ($565bn) in special bonds this year to fund infrastructure projects, Bloomberg cites economists’ estimates.

  • This is roughly twice the amount recorded last year.
  • Covid-19 emergency response level to be lowered in Beijing
  • The municipal government of Beijing announced on Wednesday it will lower its COVID-19 emergency response level effective tomorrow.
  • The decision removes quarantine requirements for some people arriving from other low-risk parts of the country. 
  • Asian shares climbed to seven-week highs this morning due to growing positive sentiment fuelled from easing lockdown measures in some parts of the world. 
  • The MSCI’s broadest index of Asia-Pacific shares outside Japan lifted 0.7%, having rallied 3.3% already this week (Reuters). 


Italy – Fitch downgraded sovereign debt credit rating to BBB-, one notch above the junk level, amid increasing debt levels to combat COVID-19 outbreak.

  • The decision caught investors by surprise given an unscheduled status of the announcement.
  • The agency is expecting the nation’s debt ratio to climb 20pp to 156% of GDP as an increase in borrowing comes at the time of falling growth rates.
  • 10y yields climbed 10bp to 1.82% on the announcement.


US Dollar Index falls amid scepticism of re-opening of US economy

  • The dollar retreated for the fourth consecutive session on Wednesday, as the US seems to have no clear plan in restarting its economy after lockdown (FX Street).
  • Against a basket of rivals, dollar fell 0.3% this morning to 99.60 in early trading, and has weakened more than 3.5% after hitting three-year highs in late March as governments launched massive stimulus measures (Reuters). 
  • Today’s US Federal Reserve meeting could fuel movement in the dollar, however there is no expectation that the Fed will change policy at this stage. 
  • Gold prices increased today due to the weakened dollar, with spot gold rising 0.2% to $1,711/oz earlier this morning – after three days of falling prices. 


South Africa – Opencast mines can return to 100% of capacity from 1st of May

  • Opencast mines are permitted to return in phases to 100% operation from the beginning of next month, however underground mines must continue at 50% of capacity according to the country’s Trade and Industry Minister. 
  • The country is easing from the current Level 5 lockdown stage of Level 4, which allows more workers to return to work in batches, whilst opencast miners will be able to return in larger numbers. 
  • The Level 5 lockdown means that only essential services are allowed to work, however under Level 4, economic activities would be added with more than 1.5m South Africans able to go back to the workplace.  


Sweden – Geely sacks 1,300 white-collar staff in Sweden (Reuters)



US$1.0865/eur vs 1.0820/eur yesterday.  Yen 106.53/$ vs 107.16/$.  SAr 18.480/$ vs 18.863/$.  $1.247/gbp vs $1.243/gbp.  0.654/aud vs 0.647/aud.  CNY 7.076/$ vs 7.086/$.


Commodity News

Precious metals:          

Gold US$1,710/oz vs US$1,703/oz yesterday

   Gold ETFs 95.2moz vs US$95.1moz yesterday

Platinum US$778/oz vs US$759/oz yesterday

Palladium US$1,980/oz vs US$1,950/oz yesterday

Silver US$15.25/oz vs US$15.00/oz yesterday


Base metals:    

Copper US$ 5,229/t vs US$5,181/t yesterday

Aluminium US$ 1,504/t vs US$1,507/t yesterday

Nickel US$ 12,260/t vs US$12,210/t yesterday – Indonesia rejects end to nickel ore export ban

  • Indonesia effectively imposed regulations for a new floor price for local nickel ores last week
  • The nation already adjusts tin prices

Zinc US$ 1,947/t vs US$1,915/t yesterday – zinc prices rise on supply disruption as demand in China recovers

  • Treatment and refining charges for zinc have fallen as zinc smelters compete to buy smaller amounts of zinc concentrates
  • Zinc smelters are expected to cut production from Q2-Q3 on the supply tightness (CRU)
  • Shanghai zinc stocks fell 9.3% to 133,349t last week on the week before

Lead US$ 1,655/t vs US$1,639/t yesterday

Tin US$ 15,340/t vs US$15,320/t yesterday



Oil US$21.2/bbl vs US$18.9/bbl yesterday

Natural Gas US$1.946/mmbtu vs US$1.811/mmbtu yesterday

Uranium US$32.15/lb vs US$32.25/lb yesterday



Iron ore 62% Fe spot (cfr Tianjin) US$80.8/t vs US$81.3/t

Chinese steel rebar 25mm US$525.0/t vs US$525.8/t

Thermal coal (1st year forward cif ARA) US$52.1/t vs US$52.5/t

Coking coal swap Australia FOB US$116.0/t vs US$116.0/t



Cobalt LME 3m US$30,000/t vs US$30,000/t

NdPr Rare Earth Oxide (China) US$37,191/t vs US$37,191/t

Lithium carbonate 99% (China) US$5,293/t vs US$5,293/t

Ferro Vanadium 80% FOB (China) US$27.5/kg vs US$27.5/kg

Antimony Trioxide 99.5% EU (China) US$4.9/kg vs US$4.9/kg

Tungsten APT European US$215-225/mtu vs US$240-245/mtu

Graphite flake 94% C, -100 mesh, fob China US$530/t vs US$540/t

Graphite spherical 99.95% C, 15 microns, fob China US$2,450/t vs US$2,550/t


Battery News

Rivian-Lincoln SUV cancelled

  • Rivian announced their Lincoln SUV project has been in what is most likely a cost saving manoeuvre. (Automotive News)
  • The partnership to develop a fully electric vehicle based on Rivian’s skateboard platform has been curtailed. (The Drive)
  • A Rivian spokesperson suggested the Company will be focusing on existing programs whilst Lincoln officials emphasized their ongoing commitment to electrification despite the setback.
  • Lincoln is Ford Motors luxury brand and the auto giant has suggested the door remains open for future collaboration with Rivian. (Car and Driver)
  • Ford invested $500m in Rivian last year with the Lincoln SUV the first product from the partnership.


Texas University team move Lithium-sulphur batteries closer to commercialization

  • Researchers from the University of Texas have shown that an artificial layer containing tellurium on top of the lithium metal anode in the battery can improve its life by up to 4x. (Knowridge)
  • Tellurium is a rare metalloid often used in photovoltaic solar cell production. (New Atlas)
  • Needle like dendrite deposits form on the lithium metal anode during charging/discharging causing degradation and reducing lifespan.
  • The artificial layer created by the Texas team protects the lithium anode from the dendrite structures and can be applied to other lithium-sodium based batteries.
  • The Tellurium reacts with polysulfides to create soluble polytellurosulfides that form stabilizing lithium thiotellurate and lithium telluride. This creates a unique tellurized, sulphur-rich solid electrolyte interphase (SEI). (Green car congress)
  • Extending the lifespan of the batteries has been cited as key to bringing about wider adoption.
  • The study has been published in Joule.


Company News

Altus Strategies* (ALS LN) 33p, Mkt Cap £23m – Positioned for growth in FY20

  • The Company released FY19 annual accounts highlighting a number of milestones achieved during the period including positive exploration and corporate results.
  • The team closed a number of transactions last year including:
    • The sale of Sebessounkoto Sud and Djelimangara gold properties in western Mali to Desert Gold Ventures for $50,000 in cash, 3,000,000 shares of Desert Gold and the potential for future project milestone payments/NSR.
    • A JV with Glomin Services on Lakanfla and Tabakarole gold projects, in western and southern Mali respectively, with Glomin having the right to earn up to an 80% initial interest in the projects in return for US$100,000 in cash on commencement, up to US$1,450,000 in milestone cash payments and a 2.5% NSR royalty on each project.
    • The extension of a JV with Resolute Mining to May 2021, on the Pitiangoma Est gold project in southern Mali, with Resolute holding an option to earn a 70% interest in the project by spending US$3 million and completing a feasibility study.
    • The termination of a JV with Canyon Resources in return for 25,000,000 shares in Canyon (15,000,000 shares received to date) and the transfer of the JV licence to Canyon for 5,000,000 further shares in Canyon and a US$1.50/ton life of mine royalty on future bauxite production from the former JV licence.
    • An option agreement with Firering Holdings in respect of the Company’s Ni-Co licence application in eastern Côte d’Ivoire, with Firering potentially earning a 95% interest in the licence in return for the payment of €15,000 and an NSR royalty linked to the price of nickel.
    • An agreement with AGMEX in respect of the acquisition of a 2% NSR royalty held on the Company’s Lakanfla project in western Mali with the transaction completed after the reporting period.
    • The Company completed a series of exploration campaigns during the year including the definition of a number of drill targets at four gold projects in Mali, increased the size of copper/silver prospects at the Agdz project in central Morocco and the copper/gold prospects at the Daro project in northern Ethiopia.
    • The team secured the Zager copper/gold license in northern Ethiopia where exploration focused on a discovery of a VMS-type deposit and early work generated targets for follow-up programme.
    • Loss for the year totalled £2.4m (2018: -£1.5m) largely reflecting expensed exploration costs (£1.1m), running admin costs (£0.8m).
    • Net operating cash outflow of  was funded by proceeds from the sale of part of Canyon Resources’ shares (£0.7m) and a private placement for £2.4m completed in Dec/19.
    • The Company remained debt free with £2.5m held in cash and marketable securities as of YE19.
    • This excludes proceeds from the £6.5 La Mancha strategic investment that concluded post year end.
    • Commenting on the outlook for the project and royalty generation, the Company highlighted a continued heightened interest originating from corporate and investors .
    • In 2020 the Company will focus on continuing growing the number of projects in the portfolio, de-risking existing assets, completing royalty-based JVs and other transactions on projects within the Altus’ portfolio as well as identifying potential project, royalty and corporate acquisition opportunities.

Conclusion: The Company has been successfully following the project and royalty generation model with a number of transactions completed last year while the strategic investment closed with La Mancha at the start of FY20 places the team in a strong position to continue de-risking existing projects and adding new assets to its portfolio.

*SP Angel acts as Nomad and Broker to Altus Strategies


BHP (BHP LN) – Pledges another A$3m to fight coronavirus 

  • The miner has now pledged a total of $10.6m for both prevention and treatment of coronavirus.
  • This adds to the $7.6m dedicated to support the establishment of testing centres in Queensland which was announced earlier this week. 
  • The University of Queensland will receive $2m of the funds to help develop a potential vaccine currently in clinical development. 


Kavango Resources (KAV LN ) 0.92, Mkt cap £1.73m – Review highlights Kalahari Suture Zone similarities with other major nickel regions

  • Kavango Resources have published a new independent technical review on the exploration potential of the Company’s project in Botswana.
  • The report by Dr David Holwell, an authority on the development of Copper-Nickel-Platinum Group Metals sulphide deposits associated with magmatic systems is testing for similarities with ‘Norilsk-Style’ deposits in the Kalahari Suture Zone.
  • The review is available on the Kavango website and agrees with Kavango’s assessment of the KSZ Project’s significant economic potential.
  • Further test work will be completed once travel restrictions are lifted.
  • The Review highlights and confirms the presence of 10 key geological features present in the world’s other major magmatic sulphide Copper-Nickel-PGM systems
  • These include Norilsk in Siberia, Voisey’s Bay, Raglan and the Thomson Nickel Belt in Canada, Jinchuan in China.
  • Kvango supplied the following for the review
    • > 25,000 regional and detailed soil samples, re-logging of historical drill holes,
    • Whole rock geochemistry analysis of the KSZ gabbros (Dr MD Prendergast 2015)
    • CSAMT surveys over historical drill holes and soil anomalies
    • A 21km CSAMT line across the KSZ
    • Two helicopter-borne EM surveys covering a total of 4,070 line-kms
    • The 3D EM Model
    • 1,092m of combined RC and diamond drilling with assays for PGE and base metals
    • Thin section microscope work.

Conclusion: The review highlights the Kalahari Suture Zone is a prime setting for a magmatic Copper-Nickel-PGM deposit with two distinct mafic-ultramafic complexes of different ages that conform to many of the key features of prospective Copper-Nickel-PGM sulphide mineral systems, particularly the geodynamic setting at the margins of a craton, and the association with dyke-sill complexes along major crustal lineaments (pathways).

Later intrusions are linked to more prospective plume-related magmatism likely to represent the feeder systems to the Karoo flood basalts. These mafics are preserved at a shallower depth. Additionally, the Karoo intrusions contain strong geochemical signatures with high Copper/Palldium ratios indicative of sulphide saturation in the parental magmas.


Mkango Resources* (MKA LN) – 3.65p, Mkt cap £5.19m – Results highlight progress towards feasibility study

  • Mkango Resources report a total comprehensive loss of $3m for the year ended December 2019 vs $7m for 2018.
  • See Mkango Management discussion and analysis: https://www.sedar.com/new_docs/all_new_pc_filings_en.htm.
  • General and administrative expenses fell to $1.51m vs $1.76m.
  • Exploration expenditure pulled back to $1.7m vs $4.5m.
  • Mkango posted a gain on the revaluation of warrants of $0.7m .
  • Net loss $3m vs $7m.
  • Mkango is now targeting completion of its feasibility study in the second half of 2021 following a review of the ongoing work streams.
  • The statement adds that COVID-19 disruption may further impact the timing of the feasibility study.
  • Mkango’s Maginito subsidiary completed the acquisition of a 25% stake in HyProMag Limited which is focussed on Rare Earth Magnet Recycling.
  • Maginito has invested $300,000 into the nbusiness and has an option to invest a further £1m to take its stake to 49%.

*SP Angel act as nomad and broker to Mkango Resources


Caledonia Mining* (CMCL LN) 973p, Mkt Cap £111.5m – Quarterly dividend

  • Caledonia Mining reports that, following the announcement of 1st April that it was deferring a decision on the declaration of its quarterly dividend, it has now declared a dividend of 7.5UScents/share.
  • This is at the higher level established in January 2020 and is to be paid on 29th May and indicates to us that the company has an increasing confidence in the performance of its operations even under the extraordinary operating conditions imposed by the Covid19 virus.
  • Caledonia Mining itemises a number of positive developments including:
    • A strong balance sheet with US$14.1m in cash at 24th April; and
    • ʺBlanket’s supply chain of consumables and spare parts improved substantially and is close to normalʺ; and
    • ʺBlanket is now re-establishing full production having operated at approximately 93 per cent of capacity during lockdownʺ
  • The company points out that concern over disruption to the supply chain for its spares and consumables as a result of measures to contain the spread of the Covid19 virus had been an important factor in its decision to defer the declaration of its dividend and that ʺthe South African mining industry and its allied supply sector is restarting operations and Blanket has partially resumed the procurement of consumables and equipment despite the lockdown period being extended.ʺ

Conclusion: The decision to proceed with the well-established quarterly dividend and the move back towards full production schedules at the Blanket mine provides welcome and tangible evidence that management is confident of its ability to manage the challenges of the Corona virus pandemic and that the preventative restrictions have been working.

*SP Angel mining analysts have visited Caledonia’s mining operations in Zimbabwe


Condor Gold* (CNR LN) 29.5p, Mkt Cap £24.3m – Permit awarded for Mestiza pit

  • Condor Gold reports that it has been awarded an Environmental Permit to develop the high grade Mestiza satellite pit at its La India gold project in Nicaragua. Mestiza is located approximately 4km from the proposed process plant site.
  • Mestiza contains an indicated resource of 92,000t at an average grade of 12.1g/t gold (36,000 oz) with an additional 341,000t classified as inferred at an average grade of 7.7g/t gold (85,000oz).
  • The addition of resources at Mestiza with around a further 120,000oz of contained gold to the existing 837,000oz of indicated gold resources (plus 68,000oz classed as inferred) at La India gives Condor Gold in excess of 1moz of permitted gold resources within the wider La India project area.
  • The permit allows for the development of 600,000t of ore, on a diluted basis from Mestiza and the high grade nature of the resource should, in our opinion, be particularly beneficial to the project economics with the opportunity to schedule the production of high-grade material early in the project life with a positive impact on the project pay-back and economic returns.
  • Chairman and CEO, Mark Child explained that ʺIt is a significant development, after a 15 month process, that Condor has been granted the key Environmental Permit to develop and exploit gold from the high grade Mestiza open pit. When added to the high grade La India open pit, Condor has just over 1 million oz gold open pit Mineral Resources, including Mineral Reserves permitted for extraction. Condor also has the permit to construct and develop a processing plant with capacity of up to 2,800tpd at La India Project. The permitted high grade Mestiza open pit adds flexibility to the mine schedule, potentially improving project economics and extending the life of mineʺ.
  • The permit is initially valid for a period of eight years and is eligible for further renewals if required. Among the terms of the permit is the requirement to give ʺpriority is to be given to hiring local employees and a reforestation programme will be instigated that plants 10 new trees for every tree cut down. Exploitation is required to commence within 18 months of the grant of the Permit although this can be extended for a further two 18 month periodsʺ.
  • A proportion of the mineral resource at Mestiza currently remains in the inferred category and the company ʺwill complete infill drilling on the Mestiza open pit to convert the majority of mineralised material to the Indicated Mineral Resource category.ʺ Condor Gold is also expecting that ʺthe America open pit will be permitted in the near futureʺ.

Conclusion: The award of a permit for the development of Mestiza and the anticipated addition of a permit for the America pit provides Condor Gold with the opportunity to enhance the project economics of the whole La India project through early extraction of high grade ore.

*SP Angel act as sole broker to Condor Gold


Scotgold Resources* (SGZ LN) 49p, Mkt Cap £25m – Loan facility terms changes

BUY – 119p


  • Scotgold agreed more flexible terms on the £7.5m loan facility with Bridge Barn, a company owned and controlled by Nat le Roux.
  • The Company has drawn £4m with the remaining £3.5m currently remaining available.
  • The team agreed to split drawdowns of the remaining funds into subtranches of £0.5m as opposed to earlier envisaged £2.0m and £1.5m tranches.
  • Additionally, drawdowns will now be made over a significantly longer period (up to 31 December 2021).
  • The change allows for greater flexibility to manage the Company’s cash balances amid the ongoing COVID-19 self-isolation measures and minimises interest costs.
  • Interest rate remained unchanged at 9% (non-compounded) with repayment due in 36 months of respective drawdowns.

*SP Angel acts as Nomad and Broker to Scotgold Resources


SolGold* (SOLG LN) 27.8p, Mkt cap £515.5m – Phase 2 metallurgical testing shows enhanced gold recoveries and improved concentrate quality  

  • Solgold has reported on the results of its Phase 2 metallurgical testing programme for its Alpala project in Ecuador.
  • The work, conducted by ALS Laboratories in Canada, shows that, compared with the November 2109 Preliminary Economic Assessment (PEA), life of mine gold recovery is 7% higher and that Alpala is able to produce a high grade concentrate grading in the range 26-30% copper with ʺGold in the concentrate …from 10.3 g/t to 16.7 g/t, and silver from 45 g/t to 93 g/tʺ. In addition, the concentrate contains low levels of elements which would attract penalties providing further evidence that Alpala concentrate is likely to prove highly marketable.
  • The test-work was conducted on approximately 1.4tonnes of material from some 785m of drill core providing representative samples of high, medium and low-grade mineralisation from Alpala.
  • Chief Executive, Nick Mather, explained that the results of the test-work ʺare being used to assess potential refinements to the flowsheet and our operating and capital cost estimates as well as improvements in revenues generated by upgraded recoveries. In addition, these results continue to demonstrate the high-quality of Alpala concentrate and form an important part of our current offtake negotiations with leading traders and smelters.”
  • Greg Harbort, Manager of Process and Metallurgy amplified the results saying that ʺThe flotation tests have demonstrated the ability to produce a high grade dominantly chalcopyrite concentrate throughout the modelled mine life and confirms the Alpala project to be a very low deleterious content deposit. Variability test work conducted so far has shown that production can occur effectively at any point on the grade-recovery curve, positioning the modelled mine robustly in terms of possible concentrate market changesʺ.
  • The company explains that an important objective of the testing was to examine the ʺflotation circuit design and reagent regime in order to increase gold recoveryʺ and that it achieved copper recoveries consistent with the earlier, Phase 1 tests, although these were ʺapproximately 1% lower over years 10-30. Overall this represents a 0.51% decrease in copper recovery compared to modelled recoveries referred to in the PEA.ʺ
  • As part of the continuing test-work, Solgold plans ʺa bulk sampling programme to generate 20 to 30 tonnes of material for pilot plant evaluation.ʺ
  • The company confirms that its on-site operations in Ecuador are halted and that it is continuing to monitor the health of its employees and that it ʺwill continue supporting its employees and local communities where possible in their efforts to curtail the spread of the virusʺ.

Conclusion: The latest testing has shown enhanced gold recoveries and confirmed the high quality of Alpala concentrate. Plans to take a 20-30t bulk sample for further testing will assist in flowsheet design, assessment of operating characteristics of the concentrates and the tailings and provide a more in-depth appreciation of the ore characteristics as the pre-feasibility and feasibility study work progresses.

*SP Angel act as Financial Advisor and broker to Solgold 


Tertiary Minerals* TYM – 0.34p, Mkt cap £2.4m – Issue of shares to Precious Metal Capital Group

  • Tertiary Minerals reports that it has been requested to issue £60,000 of shares to the recent investor, Precious Metals Capital Group (PMC) as part of its £600,000 investment announced on 2nd April.
  • The 33.3m shares to be issued to Precious Metals Capital Group represent approximately 4% of the enlarged capital of the company.
  • The balance of the PMC investment, £540,000 remains outstanding.
  • The earlier announcement explained that PMC was investing ʺto fund ongoing exploration once the recently announced exploration programmes at the Pyramid Gold and Paymaster Polymetallic Projects in Nevadaʺ where Tertiary Minerals recently announced the completion of its first drill hole. Assay results are still awaited.

*SP Angel act as nomad and broker to Tertiary Minerals



John Meyer – 0203 470 0490

Simon Beardsmore – 0203 470 0484

Sergey Raevskiy – 0203 470 0474



Richard Parlons – 0203 470 0472

Abigail Wayne – 0203 470 0534

Rob Rees – 0203 470 0535


SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London



*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.


Sources of commodity prices


Gold, Platinum, Palladium, Silver

BGNL (Bloomberg Generic Composite rate, London)

Gold ETFs, Steel


Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt


Oil Brent


Natural Gas, Uranium, Iron Ore


Thermal Coal

Bloomberg OTC Composite

Coking Coal




Lithium Carbonate, Ferro Vanadium, Antimony

Asian Metal


Metal Bulletin



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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.

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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.

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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%

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