SP Angel . Morning View . Monday 22 06 20

SP Angel . Morning View . Monday 22 06 20

Metals and equities recover on prospects for V shape recovery 

MiFID II exempt information – see disclaimer below 

Altus Strategies* (ALS LN) – Appointment of business development manager

Arkle Resources* (ARK LN) – Annual results

BlueRock Diamonds* (BRD LN) – Results highlight improvement in performance in second half

Goldstone Resources (GRL LN) –US$3m gold loan agreed

SolGold* (SOLG LN) – Resumption of some regional exploration in Ecuador

Vast Resources* (VAST LN) – £1.5m fundraising

 

Shanghai Exchange metal stock falls lift key price 

• Copper inventories fell 14.2% to 110kt last week,
• Aluminium fell 3.9% to 238kt
• Zinc fell 5.3% to 96.7kt
• Lead stocks rose 16.6% at 23kt
• Zinc rose 1.8% to 28.3kt

LME stocks also fell today:

Copper fell 3,200t to 233,400t

Zinc fell 450t to 123,600t

Lead stocks fell 500t to 74,600t

Aluminium stocks rose 12,200t to 1,617,825

Tin stocks rose 70t to 3005t

  

Cost of UK stimulus indicates greater spending on healthcare capacity is required

• The dramatic £924,000,000,000 of stimulus pledged by the UK government indicates that spending on new hospitals and healthcare may be a prudent move to better manage potential future coronavirus outbreaks.
• So far the UK has recorded 304,331 Coronavirus cases with 42,632 Coronavirus fatalities (Worldometer.info)
• Coronavirus infection rate statistical estimates:
  • https://www.newscientist.com/article/mg24632873-000-how-many-of-us-are-likely-to-have-caught-the-coronavirus-so-far
  • https://serotracker.com/Dashboard
• The market is wary of a second wave of Coronavirus cases following news of new infections in Beijing last week and some food manufacturing factory closures in Europe
• The fall in the ‘R’ rate in the UK and lower daily reported fatalities may indicate the peak has passed
• Equity markets continue to adjust as funds orientate towards sectors which have been less impacted by the virus while investors with higher risk appetite soak up this stock
• Fund investors are wary of the impact of a very difficult earnings season with so many companies likely to report negative impact from the lockdown and dramatically lower sales.
• Optimism for a strong V-shaped recovery driven by the restart of manufacturing and improving consumer demand is driving markets in the short term.

 

Stimulus 

• $304bn - China Ministry of Finance has issued Rmb550bn (US$77bn) of special purpose debt. 
• + another Rmb1,600bn (US$226bn) is available for issue before the year end. Much of this will be for housing and connecting infrastructure
• $140bn - China PBOC buying CNY1tn of bank loans issued by local lenders to small firms this week in an effort to ease the flow of credit.
• $56bn - The PBOC also announced a Rmb400bn ($56bn) purchase loan program to boost available credit by supporting bank loans to small businesses.

• $1.55tn – China - Bloomberg estimates a ‘fiscal impulse of more than 11% of nominal GDP’ which was estimated at US$14.14tn

• We have previously assumed China at $909m comprised $344bn of China stimulus + $565bn in special bonds for infrastructure by local authorities

• $2tn - US fiscal package approved by Congress. US may add $0.6t state aid for mortgage markets and travel industries
  • 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.
  • US Fed may soon start buying in up to $750 billion of corporate debt and ETFs
  • US Fed has flooded all markets with dollar liquidity through repo and swap lines.
• US$1.02tn - Japan - BoJ injecting US$1.02tn into the economy through a variety of programmes. (will check if this is in addition to the Y117tn stimulus announced)
  • US$1.1tn - 117tn-yen stimulus, funded partly by a second extra budget, will be on top of another 117tn package already rolled out takes total spending in Japan at 234tn yen ($2.18tr) - 40% of Japans GDP.  Japan to issue Y31.9tn in government bonds. 
• $825bn (€750bn) EU - European Commission aid package yesterday aimed at supporting EU nations hit by the pandemic.
• This is an expansion on the previous $543bn (€500bn ) EU Crisis Recovery fund backed France and Germany + $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.
  • The pandemic emergency purchase programme (PEPP) and asset purchase programme (APP) have been reiterated with a cap of €750bn and €120bn, respectively.
  • The bank is reported to have used €100bn of the PEPP so far.
• $825bn (€756bn) Germany – Bundestag approved €156bn in extra borrowing and ~€600bn in emergency funds
• $298bn Japan parliament passed ¥31.9tn ($298bn) second extra budget today to help struggling economy.
• ¥117tn stimulus programme + ¥10tn as a coronavirus reserve fund
• $934bn (£745bn) – UK Bank of England injects another £100bn ($125bn) 
• $387bn (€304bn) France, $200bn (€200bn) Spain, $214bn (A$320bn) Australia - RBA ready to buy bonds again.
• US$260bn - India representing 10% of GDP.
• $62bn - South Korea – The government unveiled a 76tn won ($62bn) “New Deal” aimed at supporting the economy amid the pandemic focused on creating jobs and new industries through 2025. South Korea - New Deal will create jobs and foster new industries like 5G.
• $13.3bn - Saudi Arabia central bank will inject 50bn riyals ($13.3bn) into the banking system on top of US$43.7bn already pledged
• $78bn (C$107bn) Canada, $32bn, Singapore, $22.6bn India, $19.3bn HK, $13.7bn South Korea, $10bn Switzerland, $8.4bn Italy, $7bn NZ, $3.5bn Ireland, $2bn Taiwan, Philippines further $26bn proposed, Indonesia - adding $43bn,  Thailand creating a corporate bond fund.
• South African buys ZAR10.2bn (US$119m) government bonds in May. Argentina to default on $10bn of dollar debt issued till the end of the year.
• $1,000bn - IMF available + $12bn World Bank, 

>15.9tn - Total stimulus reported. Figures may include some political double counting and some funds may not be spent

 

Recent interviews: 

Gold sector interview with interactive investor

• https://www.youtube.com/watch?v=yHviShsBKqA

IG TV interview on Mining Sector prospects with SP Angel analyst.

• https://youtu.be/tiIwzMek8vI

 

Dow Jones Industrials		-0.80%	at	25,871
Nikkei 225		-0.18%	at	22,437
HK Hang Seng		-0.83%	at	24,438
Shanghai Composite		-0.16%	at	2,963

 

Economics

Eurozone - GDP to fall 8.7% in ’20 but may recover of 5.2% in ’21 according to ECB Chairwoman Lagarde.

 

Germany – German PPI fell 0.4% in May vs -0.7% in April 

German police enforce tower block quarantine in Goettingen

• Police reinforcements have been sent to maintain a coronavirus quarantine of 700 people, as 200 trying to get out clashed with police. 
• Cases of Covid-19 have continued to rise at a meat plant, with positive cases linked to the Tonnies processing plant in north-west Germany has risen to 1,331. 
• Germany's 'R' number has risen from 1.79 to 2.88 in just one day. 

 

UK - Sunak drawing up plans for deferred tax rises

• The Chancellor is set to follow VAT stimulus with autumn tax rises after he delivers a further fiscal stimulus for the UK economy in the coming weeks. 
• The treasury is first considering a temporary cut to VAT for some sectors- a lower rate for the tourism and hospitality sectors is one option being discussed. 
• Any action to lower VAT rates will be paid for by deferred tax rises and lower public spending as part of the autumn budget. 
• UK retail sales rose 12% in May vs -18% in April

 

US - American Airlines seeks $3.5bn in new financing

• The airline announced its intension to secure new financing to improve the airline's liquidity to alleviate cash flow problems caused by travel restrictions. 
• The company plans to raise $1.5bn by selling shares and convertible senior notes due 2025, whilst offering $1.5bn in senior secured notes and entering a new $500m term loan facility due 2024.

 

Peru - reopening to about 80% of output capacity

 

Shipping - Baltic Exchange dry cargo index jumped 22% last Thursday indicating strong recovery in trade volumes to come.

 

Currencies

US$1.1199/eur vs 1.1215/eur last week.  Yen 106.94/$ vs 106.90/$.  SAr 17.369/$ vs 17.403/$.  $1.239/gbp vs $1.243/gbp.  0.686/aud vs 0.686/aud.  CNY 7.078/$ vs 7.076/$.

 

Commodity News

Precious metals:          

Gold US$1,752/oz vs US$1,739/oz last week – Gold hits 1-month peak on rising virus fears

• The price of gold jumped to its highest in more than a month this morning, after surging coronavirus cases heightened concerns over a delay in global economic recovery. 
• Spot gold was up 0.5% to $1,752/oz whilst US gold futures rose 0.7% to $1,765/oz (Reuters). 
• Whilst social distancing during March and April helped slow the spread of Covid-19, re-opening activities in a number of US states and European countries has coincided with a wave of infections (Kitco). 
• Gold is up 15% so far this year, and the price is nearing highs last seen in 2012 (Bloomberg).

   Gold ETFs 101.9moz vs US$100.9moz last week

Platinum US$814/oz vs US$821/oz last week

Palladium US$1,916/oz vs US$1,922/oz last week

Silver US$17.89/oz vs US$17.59/oz last week

            

Base metals:   

LME fines warehouse firm ISTIM £30,000 for violating aluminium warrant rules (FastmarketsMB). 

• The exchange released a statement detailing that ISTIM erroneously instructed its London agent to issue primary aluminium warrants containing incorrect brand names/ shapes on five separate occasions. 

 

Copper US$ 5,837/t vs US$5,799/t last week - China copper stocks drop to lowest since January 2019

• Copper inventories in warehouses tracked by the Shanghai Futures Exchange fell to their lowest in 17 months on Friday, as Chinese demand continued to recover. 
• Copper stocks in SHFE warehouses fell 14.2% to 109,969 tonnes last week, and are down 71% from this year's peak of 380,085 tonnes in March (Refinitiv). 
• Imports of unwrought copper are up 12.4% so far this year, indicating the drawdown in inventories suggests demand strength. 

Aluminium US$ 1,588/t vs US$1,586/t last week

Nickel US$ 12,675/t vs US$12,760/t last week

Zinc US$ 2,063/t vs US$2,037/t last week 

Lead US$ 1,783/t vs US$1,796/t last week

Tin US$ 16,870/t vs US$17,180/t last week

            

Energy:            

Oil US$42.1bbl vs US$42.2/bbl last week

• Oil prices remain steady following the latest OPEC+ ministerial panel to review record oil supply cuts and plans by countries such as Iraq and Kazakhstan to improve compliance with quotas to support oil prices
• OPEC+ has been cutting output by 9.7MMbopd or 10% of global supply since 1 May 2020
• It is however unlikely that the discussion will result in an extension of such deep cuts into August
• Nevertheless, it has been reported that OPEC+ compliance with production cut commitments in May was 87%
• Worries about fuel demand rose after a surge in Coronavirus cases led Beijing to cancel flights and shut schools while several US states, including Texas, Florida and California, reported sharp increases in new cases
• A second straight weekly rise in US crude stockpiles to a record high also weighed on sentiment, but US government data showed lower inventories of gasoline and distillates, indicating higher demand
• OPEC warned in a monthly report that the market would remain in surplus in the second half even as demand improves, saying it now expects supply from outside the group to be about 300,000bopd higher than previously thought

Natural Gas US$1.688/mmbtu vs US$1.650/mmbtu last week

• Natural gas prices are on an upward trajectory despite supply rising whilst the rig count is falling
• The weather is expected to be warmer than normal but the increase in demand is not strong enough to offset many of the commercial buildings that are not using electricity
• The spread of COVID-19 in the US is likely to stall the back to work effort, and put downward pressure on prices
• In its latest report, the EIA confirmed that domestic supplies of natural gas rose by 85Bcf for the week ended 12 June
• That was a little higher than the average increase of 79Bcf forecast by analysts polled by S&P Global Platts
• The latest build marked a decline from the 93Bcf injection a week earlier
• It compared with a build of 111Bcf during the same week a year earlier and a five-year average build for the week of 87Bcf
• Also capping gains are concerns over a cooler short-term weather pattern and low LNG demand

Uranium US$33.15/lb vs US$33.15/lb last week

            

Bulk:    

Iron ore 62% Fe spot (cfr Tianjin) US$100.6/t vs US$103.0/t - Chinese iron ore port inventories rose 540,000 tonnes last week

• Inventories of seaborne iron ore at Chinese ports rose last week as demand recovery was offset by the inflows of cargoes previously stranded due to port congestion. 
• Iron ore stocks across Chinese ports increased 540,000t to 99.35t- following a 790,000t decline in the previous week.
• Last week, daily average iron ore deliveries increased 126,000t from the prior week to 2.78mt (SMM News). 

Chinese steel rebar 25mm US$527.3/t vs US$525.7/t

Thermal coal (1st year forward cif ARA) US$54.8/t vs US$54.0/t

Coking coal swap Australia FOB US$114.5/t vs US$114.5/t

            

Other:  

Cobalt LME 3m US$29,000/t vs US$28,850/t 

NdPr Rare Earth Oxide (China) US$40,054/t vs US$40,423/t

Lithium carbonate 99% (China) US$4,804/t vs US$4,868/t

Ferro Vanadium 80% FOB (China) US$30.0/kg vs US$29.5/kg

Antimony Trioxide 99.5% EU (China) US$5.0/kg vs US$5.0/kg

Tungsten APT European US$205-215/mtu vs US$215-225/mtu 

Graphite flake 94% C, -100 mesh, fob China US$460/t vs US$460/t

Graphite spherical 99.95% C, 15 microns, fob China US$2,350/t vs US$2,350/t

 

Battery News

China re-classifies petrol-electric vehicles

• The Chinese government has reclassified petrol-electric hybrid vehicles, they will now receive more favourable treatment under new clean energy rules compared to petrol or diesel cars. (Reuters)  
• The move makes it easier for automakers to meet environment quotas.
• Although strict, the Chinese rules regarding clean energy vehicles have been criticized for not encouraging automakers to improve the efficiency of petrol vehicles.
• The system involves accrual of negative points for the production of vehicles that run on gas which can be offset through the production of new energy vehicles.  
• The policy change published on Monday enables automakers to make more petrol-electric hybrids and less pure electric vehicles to comply with standards from 2021-23.
• The change could see fewer EVs produced as automakers accrue fewer negative points for the production of petrol-electric hybrids.  
• Companies that could benefit from this development include Toyota Motors, Honda Motors, Geely Auto and Guangzhou Auto.

 

Mercedes-Benz introduces electric bus available in NMC or solid-state batteries

• Daimler buses has revealed an articulated version of the Mercedes-Benz eCitaro bus which will be made available with NMC or solid-state batteries. (Inside EVs)
• Daimler has suggested it has already received 60 concrete orders for the vehicle.
• The press release suggests the vehicle will be made available in NMC batteries with increased capacity between 292 and 396kWh and a solid-state option. (Electrive)
• Little is revealed about the solid-state option in the press release except that the capacity of the lithium polymer battery will be 441kWh.
• The eCitaro G will be made available from H2 2020.

 

Pre-lithiation technique to improve capacity of silicon anode Li-ion batteries

• Korean researchers have developed a method for mitigating the loss of lithium-ions during the initial charge through lithium pre-loading. (Scitech daily)
• The pre-loading or pre-lithiation increases the number of lithium-ions to compensate for the up to 20% loss of lithium ions during the initial cycle when charged.
• The technique involves using a lithium-containing solution rather than a powder to prevent loss to the silicon-based anode.
• Submersion of the electrode in the tailored solution for 5 minutes is enough to achieve sufficient pre-loading.
• During pre-loading electrons and lithium ions are inserted into the silicon-based anode through a spontaneous chemical reaction.
• The technique maintains a higher initial battery efficiency of 99%+, a 25% higher density than equivalents using a graphite anode.   

 

Company News

Altus Strategies* (ALS LN) 31p, Mkt Cap £22.4m – Appointment of business development manager

• Altus Strategies reports the appointment of Alister Hume as Business Development Manager with immediate effect.
• Mr. Hume is described as ʺan experienced investment and business development manager with over a decade of expertise working in private equity and capital markets in the natural resources industryʺ. Previous experience includes roles with ʺMorgans, The Sentient Group and KoBold Metals. He previously held board positions for East Africa Copper Ltd and Meridian Mining S.E. (TSXV: MNO) and holds a Bachelor of Commerce (Finance and Accounting) from Sydney University.ʺ
• The company explains that he ʺwill play an integral role for the Company in evaluating and progressing the growing number of potential royalty and project transactions under review. His appointment follows the recent approximately £6.5 million (C$11.2 million) investment by La Mancha Holding S.à r.l. ("La Mancha"), where it acquired a 35.45% stake in Altus. The strategic investment by La Mancha has significantly strengthened the Company's financial position and is enabling Altus to accelerate its growth plans.ʺ
• Welcoming the appointment, CEO, Steven Poulton, said that ʺAlister has accumulated expertise in project evaluation and transactions from his previous roles in highly respected resource asset management and private equity firms, which will no doubt be invaluable to us. His skills will immediately enhance our ability to review royalty, project and other transaction opportunitiesʺ.

Conclusion: The appointment of a business development manager expands the Altus management team and follows the recent investment by La Mancha which is expected to accelerate the company’s growth and extend its capacity to evaluate projects.

*SP Angel acts as Nomad and Broker to Altus Strategies

 

Arkle Resources* (ARK LN) 0.88p, Mkt Cap £1.9m – Annual results

• Arkle Resources reports a 2019 loss of €313,860  (2018 loss €337,306) and a year-end cash balance of €39,631 relating to its exploration activities in Ireland.
• The company’s principal focus is the further exploration of the 23% owned Stonepark zinc project in Co Limerick where, in conjunction with the project operator, Group Eleven Resources, a fully funded drilling programme is ʺset to resume … in the in the coming monthsʺ.
• Stonepark is situated adjacent to and at shallower depths than Glencore’s 45mt Pallas Green deposit and exploration at Stonepark has already defined an inferred resource of 5.1mt at an average grade of 8.7% zinc and 2.6% lead at depths of between 190-395m below surface.
• The company’s gold exploration interests include the Mine River licences in Wexford/Wicklow where follow up drilling targets have been identified and also in Co Donegal where the company’s licences are approximately 80km from Dalradian Resources’ discovery at Curraghinalt.
• Commenting on plans for the future, the company says that third parties have expressed interest in the Stonepark discovery and that ʺThe interest shown by neighbours Glencore is encouragingʺ.
• The company says that the attractions of its Donegal gold licences ʺwould be enhanced by the development of the Dalradian mineʺ while ʺWe would like fresh eyes to take a look at our Mine River propertiesʺ.
• Outlining wider potential opportunities, the company says that international opportunities are under consideration and that ʺThe Arkle team has extensive international experience and we see a flow of potential deals.  None, to date, have offered better than what we have in Ireland.  Many are cast-offs from other exploration companies, others are in jurisdictions with title issuesʺ.

Conclusion: Arkle Resources identifies the Stonepark zinc discovery as its main focus and indicates that neighbours, Glencore, are showing interest. Apparently overseas opportunities have been considered but, to date, none have offered better propsects than the existing portfolio in Ireland.

*SP Angel is Nomad and Joint-Broker to Arkle Resources.

 

BlueRock Diamonds* (BRD LN) – 52p, Mkt cap £2.7m – Results highlight improvement in performance in second half

• BlueRock Diamonds 2019 annual report highlights improved performance through the second half last year.
• Sales for the full year came in at £4.1m on second half sales of £2.7m vs £1.4m in the first half
• Diamonds, Carats sold rose to 12,675 for the year on second half sales of 7,739 vs 4,936 in the first half
• Production rose  to 323,000t for the year on 292,574t in the second half vs 120,426 in the first half
• Bluerock recorded a loss of £471,246 at end June 2019. The loss extended to £684,244 at the year end as the company ramped up production to target levels.
• Recovered grades rose to 4.34cpht for the full year vs 4.10ct in the first half
• The average price received per carat rose to US$415 for the year vs $405/ct in the first half due to the sale of some larger gem-quality stones
• Management report they are working well with their new strategic partner, the Teichmann Group, which holds a 29% interest in the Company
• Bluerock completed Step 1 of its plan to reach an annualised run rate of 400,000tpa of ore and waste rock moved
• Management report operationally profitability was also achieved by end 2019
• Step 2 is to optimise that profitability through internal growth with a decision taken in February to double production again to 750,000tpa
• This expansion was halted due to COVID-19 with the Kareevlei diamond mines put into care and maintenance in the South African lockdown
• Bluerock has since restarted its operations and has an agreement to sell its diamonds with Bonas-Couzyn NV, part of the Bonas Group, the world's longest established diamond brokerage and the largest global independent diamond and gemstone tender and auction house.
• Management have entered into a  non-binding LoI Delgatto Diamond Finance Fund LP for the finance monthly parcels of diamonds at 70% of the market value as determined by BONAS at a cost of 1.25% per month. This will enable BlueRock to have flexibility over when its diamonds are sold. 

*SP Angel act as Nomad and Broker to BlueRock Diamonds

 

Goldstone Resources (GRL LN) 4.2p, Mkt Cap £10.5m –US$3m gold loan agreed

• Goldstone Resources reports that it has agreed a US$3m gold loan finance agreement with Asian Investment Management Services (AIMS) to help fund the development of its Akrokeri/Homase gold project in Ghana.
• The company reports that S$0.3m has already been drawn.
• The loan, which attracts interest at 14% comprises ʺup to 2,000 troy ounces of gold at a price of US$1,500 per troy ounceʺ. Further tranches of the loan can be drawn in minimum increments of 500oz of gold and the company reports that it has already requested a further 500oz increment.
• ʺThe Gold Loan, together with the Bonds, will enable the Company to move forward towards commencing production, through the ongoing development of the open pit mine at the Homase South Pit and construction of the associated heap leach facilityʺ.
• CEO, Emma Priestly explained that ʺThis allows us to move forward with bringing the Homase South Pit into production, with the first gold expected to be produced in Q4 2020.ʺ

 

SolGold* (SOLG LN) – 221.1, Mkt cap £435m – Resumption of some regional exploration in Ecuador

• SolGold reports the partial resumption of regional exploration in Ecuador under rigorous Covid19 containment restrictions.
• The company reports that it has received approval for scout drilling at its Porvenir, La Hueca and Blanca projects and that it has mobilised drilling equipment to Porvenir where construction of a camp and logistics base is nearing completion.
• The initial drilling at Porvenir will test the Mula Muerte and Cacharposa prospects and follow up mineralisation located at Cacharposa Creek where the company has previously reported an open-ended rock-saw channel sample grading 0.43g/t gold and 0.37% copper over an interval of 147.83m, including a high grade section of 82.63m at an average grade of 0.71g/t gold and 0.55% copper.
• Both Mula Muerte and Cacharposa are located within an 800m wide northeast trending mineralised corridor extending more than 1.2km and displaying characteristics of a ʺwell-preserved porphyry copper-gold system.ʺ
• A drilling rig is also about to mobilise to La Hueca where ʺscout drilling is designed to test the extent of copper porphyry mineralisation … mapped on surface. Surface copper mineralisation extends over 1km in a north north-west trend with rock chip values to 6% copper and 1% molybdenum.ʺ
• The company is also resuming exploration at some of its other regional targets including at Rio Amarillo, Chical (and where permission to drill is pending) and at La Blanca where preparations are underway for drilling.
• The company explains that its social liaison teams have remained in regular contact with local communities throughout the ʺstay at homeʺ of the Covid19 pandemic in Ecuador and that the teams ʺare now sharing proposed safety protocols with community members and local Emergency Committees in order to restart work on priority projects. Local businesses have been approached to provide modified catering and accommodation that meet distancing and sanitary requirements in an effort to reduce the spread of COVID-19ʺ.
• Solgold also confirms that ʺFor the foreseeable future, trained medical personnel will work alongside the SolGold teams in order to carry out daily personnel checks for COVID-19 symptoms, and ensure all COVID-19 protocols are enforced properlyʺ.

Conclusion: Solgold is resuming on-site exploration at a number of its priority targets throughout Ecuador and is working alongside local communities to ensure that measures to protect both its own personnel and its host communities  against Covid19 are in place.

*SP Angel act as financial advisor and broker to SolGold

 

Vast Resources* (VAST LN) 0.2p, Mkt Cap £24m – £1.5m fundraising

• The company reports that it has raised £1,486,900 through placing approximately 826m new shares at a price of 0.18p/share.
• The proceeds are to be used to fund ʺthe first month’s production at the Baita Plai Polymetallic Mine until the first sale of concentrate expected in late August, together with some further general working capitalʺ.
• CEO, Andrew Prelea, confirmed that work at Baita Plai was on schedule saying that ʺWe are happy that the final stages of development at Baita Plai are proceeding on time and as planned and expect that the funds raised today will take us through to the anticipated date when we can achieve cash flow through the sale of concentrateʺ.

Conclusion: Vast Resources has raised around £1.5m in order to fund the BAita Plai mine through to its first concentrate sales in late August.

*SP Angel acts as Broker to Vast Resources

 

 

Analysts

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

 

Sales

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

 

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.

 



Sources of commodity prices
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, Antimony	Asian Metal
Tungsten	Metal Bulletin

 

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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%