SP Angel . Morning View . Thursday 04.12.25

MiFID II exempt information – see disclaimer below

 Ariana Resources (AAU LN) – First gold pour at Tavsan

Cornish Metals* (CUSN LN) – Shareholders approve redomicile proposal

Artemis Resources (ARV LN) – Possible cooperation for third party to use the Radio Hill plant

Phoenix Copper* (PXC LN) – Refinancing of short-term loan facility

Galileo Resources (GLR LN) – Work to establish drill targets in Nevada

Glencore* (GLEN LN) – Capital markets day outlines pathway to No.1 global copper producer

Hamak Strategy* (HAMA LN) – Term sheet with CAA Mining for Akoko gold project in Ghana. Convertible and ATM update.

Ivanhoe Mines (IVN CN) – Expecting 550ktpa over the medium to long term as Kakula dewatering advances

Prospect Resources (PSC AU) – Higher-grade zones identified at Mumbezhi

Q2 Metals* (QTWO CN) – Drilling returns 457m at 1.65% Li2O

Rio Tinto (RIO LN) – Rio Tinto clarifies its new simpler structure

Savannah Resources* (SAV LN) – Barroso Strategic Status reconfirmed

80 Mile Plc* (80M LN) – Placing to raise £2m at 0.5p

 Tin ($39,815/t) hits 2021 levels as supply crunch persists and semiconductor demand supported by AI datacentre rollout

• Tin prices continue to rally, rising above $40,000/t yesterday as Chinese buyers hunt for concentrate.
• Prices rose 2.7% in China for tin ingot yesterday.
• Prices in China reached their highest since May 2022.
• The market is waiting for Myanmar’s Wa State to ramp up production following the greenlight for Man Maw to restart.
• However, this is yet to happen, with sources suggesting ground conditions at the mine have deteriorated alongside grade.
• Indonesia is tightening export policies and limiting exploitation following mounting environmental concerns at alluvial operations.
• Semiconductor demand driven by the AI chip rollout has supported demand.

Tin names we like:

• Cornish Metals*: Restarting the South Crofty operation, targeting 4.7ktpa from years 2-6 at AISC of $13,419/t.
• MetalsX: Producing at Renison JV with expansion via Ringrose
• Alphamin+: High-yield story at spot prices, geopolitical tensions easing in DRC with US mediation
• Rome Resources: targeting next Bisie discovery in North Kivu, led by DRC specialist Klaus Eckhof

*SP Angel acts as Nomad and Broker to Cornish Metals. +An SP Angel analyst holds shares in AFM

Copper ($11,385/t) prices pause just short of all-time high as funds line up ahead of forecast supply shortage

• Funds have been seen buying copper on the developing shortage of copper production next year.
• Prospects for a Fed rate cut also hit the US dollar following news of worse than expected employment data in the US.
• Positive PMI data for services added to previous manufacturing data indicating more positive global growth though the data from China was mixes
• Physical buying has softened ahead of Christmas with China premiums for short-term physical delivery going lower

IG TV Commodity Corner (18/11/25):  https://www.youtube.com/live/_cghAS9Wnnk?si=YQpSPWrZ5_tzX0ha&t=4718 

ii TV - Macro trends, indicators, small caps.

• Precious metals, gold and copper : https://vimeo.com/fiveminutepitchtv/review/1125894076/5ccc1f796b
• FTSE 100 stocks, small-cap and lithium: https://vimeo.com/fiveminutepitchtv/review/1125892775/a44f96f5a1

Economics

US – Bond investors are voicing concerns over President Trump potential decision to appoint Kevin Hassett as the next Fed Chair

• The Treasury department held a series of conversations with major US financial institutions regarding Hassett and other candidates (FT).
• Concerns were centred around perceived independence of the next Fed chair from the US government.
• Many fear Hassett will proceed with aggressive monetary easing policy although inflation continues to run at elevated levels.

EU – Brussels proposes the use of emergency powers to raise up to €210bn for Ukraine from frozen Russian state assets

• The status would allow the EU to strip Hungary and other dissenting countries of their veto (FT).
• The “reparations law” to fund Kyiv would not have to be repay the loan until Russia pays reparations.

Currencies

US$1.1677/eur vs 1.1640/eur previous. Yen 154.88/$ vs 155.69/$. SAr 17.045/$ vs 17.064/$. $1.335/gbp vs $1.324/gbp. 0.661/aud vs 0.658/aud. CNY 7.069/$ vs 7.066/$

Dollar Index 98.84 vs 99.19 previous

Precious metals:         

Gold US$4,190/oz vs US$4,206/oz previous

Gold ETFs 97.7moz vs 97.7moz previous

Platinum US$1,641/oz vs US$1,653/oz previous

Palladium US$1,442/oz vs US$1,457/oz previous

Silver US$57.3/oz vs US$58.1/oz previous

Rhodium US$7,950/oz vs US$8,025/oz previous

Base metals:   

Copper US$11,385/t vs US$11,261/t previous

Aluminium US$2,882/t vs US$2,890/t previous

Nickel US$14,880/t vs US$14,890/t previous

Zinc US$3,042/t vs US$3,076/t previous

Lead US$2,001/t vs US$2,005/t previous

Tin US$39,815/t vs US$39,675/t previous

Energy:

Oil US$62.8/bbl vs US$62.8/bbl previous

·        Crude oil prices were stable as the EIA estimated w/w US inventory builds of 0.6mb to crude, 4.5mb to gasoline and 2.1mb to distillate stocks, as refinery utilisation rose 1.8% to 94.1% on 13.8mb/d of domestic output.

·        European energy prices edged lower despite EU natural gas storage levels falling 3.2% w/w to 74.4% full (vs 84.9% 5-Yr average), with aggregate inventory at 850TWh and German storage levels falling to 66.3% full (vs 86.7% 5-Yr average).

Natural Gas €27.7/MWh vs €27.8/MWh previous

Uranium Futures $76.0/lb vs $76.1/lb previous

Bulk:

Iron Ore 62% Fe Spot (Singapore) US$104.3/t vs US$104.2/t

Chinese steel rebar 25mm US$453.1/t vs US$452.6/t

HCC FOB Australia US$207.3/t vs US$203.2/t

Thermal coal swap Australia FOB US$107.5/t vs US$108.5/t

Other:  

Cobalt LME 3m US$50,035/t vs US$50,035/t

NdPr Rare Earth Oxide (China) US$83,326/t vs US$84,417/t

Lithium carbonate 99% (China) US$12,803/t vs US$13,091/t

China Spodumene Li2O 6%min CIF US$1,125/t vs US$1,155/t

Ferro-Manganese European Mn78% min US$1,035/t vs US$1,035/t

China Tungsten APT 88.5% FOB US$758/mtu vs US$753/mtu

China Tantalum Concentrate 30% CIF US$96/lb vs US$96/mtu

China Graphite Flake -194 FOB US$400/t vs US$400/t

Europe Vanadium Pentoxide 98% US$5.3/lb vs US$5.3/lb

Europe Ferro-Vanadium 80% US$23.9/kg vs US$23.9/kg

China Ilmenite Concentrate TiO2 US$265/t vs US$265/t

US Titanium Dioxide TiO2 >98% US$2,961/t vs US$2,961/t

China Rutile Concentrate 95% TiO2 US$1,111/t vs US$1,111/t

Spot CO2 Emissions EUA Price US$65.1/t vs US$65.1/t

Brazil Potash CFR Granular Spot US$352.5/t vs US$352.5/t

Germanium China 99.99% US$3,025.0/kg vs US$3,075.0/kg

China Gallium 99.99% US$395.0/kg vs US$395.0/kg

EV & battery news

CATL expect electric vessels to be capable of ocean voyages within 3 years

• CATL's marine business already covers inland rivers, lakes, and coastal waters, and is now advancing toward cross-ocean applications.
• The battery maker entered the marine electrification sector in 2017 and established a dedicated subsidiary in November 2022 to provide power solutions for waterborne transportation systems.
• China's first pure-electric tourist vessel, commenced operations earlier this year which has validated the feasibility of pure-electric technology in coastal navigation while delivering zero-emission, low-noise, high-quality maritime tourism experiences, the company said.
• The Yujian 77 has a capacity of 3,918kWh and has an electric cruising range of 100km.

Company news

Ariana Resources (AAU LN) 1. 58p, Mkt Cap £37m – First gold pour at Tavsan

• Yesterday, Ariana Resources reported the first gold pour at its 23.5% owned Tavsan heap-leach project in western Turkiye.
• The initial production produced 13.4kg of gold/silver doré and the company says that “Production is expected to ramp up over the coming months and reach steady-state production by Q2 2026”.
• The company’s August 2025 prospectus for its ASX listing indicated that the 1.1moz resource at Tavsan was expected to support production of “up to 30,000 ounces of gold per annum over an eight year mine life”.
• Tavsan has previously shipped ore ~130km by road for processing at the nearby Kiziltepe plant with “24,400 oz of gold and 83,770 oz of silver” produced up to Q4 2025.
• Managing Director, Dr. Kerim Sener, explained that continuing use of “the Kiziltepe CIL plant for the processing of higher-grade ore from Tavşan … benefit from higher gold and silver recoveries while heap-leaching operates at Tavşan”.
• Confirming Ariana’s focus on developing the Dokwe gold project in Zimbabwe, Dr. Sener said that “Looking ahead, we expect a steady-state production by Q2 2026, as Tavşan becomes the primary gold-producing interest in Türkiye and an important source of cash generation for Ariana”.

Conclusion: Initial production from heap leaching at Tavsan as Ariana progresses its Dokwe project in Zimbabwe.

Cornish Metals* (CUSN LN) 7.85p, Mkt cap £100m – Shareholders approve redomicile proposal

• Cornish Metals confirms that its Canadian shareholders have voted 99.95% in favour of proposals for the company’s domicile to be transferred to the UK.
• The plan requires the approval of Ontario’s Superior Court of Justice.
• CEO, Don Turvey, has previously explained that a UK domicile “simplifies the Company's structure and better aligns with our strategic and operational focus in the UK to restart tin production at our South Crofty mine in Cornwall”.

*SP Angel act as Nomad and Broker to Cornish Metals

Artemis Resources (ARV LN) 0.43p, Mkt Cap £16m – Possible cooperation for third party to use the Radio Hill plant

• Artemis Resources, reports that it has reached a non-binding agreement (MoU) with ASC-listed West Coast Silver to examine the scope for West Coast Silver to use the processing plant at Radio Hill to treat material from its Elizabeth Hill silver mine.
• Executive director, Jozsef Patarica, said that “Radio Hill has historically demonstrated versatility across multiple ore types. This cooperation allows us to assess future processing opportunities while supporting potential development of a high-grade silver project in our region”.
• Today’s announcement explains that “Any formal processing agreement, including toll treatment arrangements, will only proceed subject to the completion of a favourable technical and commercial assessment and subsequent negotiation of a definitive binding agreement”.

Phoenix Copper* (PXC LN) 2p, Mkt Cap £6.0m – Refinancing of short-term loan facility

(Phoenix holds 80% of the Empire mining property in Idaho)

• Phoenix Copper has announced that it has drawn funds from a $2.1m Convertible Loan Note (CLN) from Indigo Capital to repay $1.46m of a Short-Term Loan Facility to Riverfort Capital.
• The company has drawn “$1.96m net of a fixed 5% coupon and a 2% commitment fee” from Indigo Capital which is described as “a private family office investor”.
• Exercising the CLNs, which have a 12 months term, allows the purchase of Phoenix Copper shares at “a 20% discount to the prior 5 day lowest Volume Weighted Average Price”.
• Today’s announcement clarifies that Indigo Capital “may convert up to $1 million prior to 30 April 2026, plus a further $250,000 if the Company's share price has closed at 5.5 pence or higher for 5 consecutive trading days prior to 30 April 2026. From 1 May 2026 the CLN investor may convert the CLN in full”.
• A further “$627,251 of outstanding principal and interest” remains due to Riverfort Capital.
• Conclusion: Phoenix Copper is refinancing its short-term debt facility as it progresses development of the Empire open-pit mine project in Idaho.

*SP Angel acts as Nomad to Phoenix Copper

Galileo Resources (GLR LN) 0.75p, Mkt Cap £10m – Work to establish drill targets in Nevada

• Galileo Resources reports that mapping geophysical and soil sampling work and compilation of historical information has been completed to help define targets in the Ferber property, Elko County, Nevada.
• Today’s announcement explains that “Copper-lead-silver-gold deposits were discovered in the area in the 1880s … [and ore] … was shipped from the Martha Washington, Big Chief, Regent and other small mines intermittently over the years”.
• The target definition work forms part of “a Royalty and Exploration Agreement with Bronco Creek Exploration Inc … a wholly-owned subsidiary of Elemental Royalty Corporation … [and when a final report is completed, Galileo] … will grant a 0.33% perpetual NSR Royalty” to Bronco Creek Exploration.
• Chairman & CEO, Colin Bird, said that the work “has extended the target area, encompassing some 10km of strike extent, with additional results to come … [and we] … are working towards identification of initial reconnaissance drill targets”.

Glencore* (GLEN LN) 377p, Mkt Cap £44bn – Capital markets day outlines pathway to No.1 global copper producer

• Glencore hosted a capital markets day yesterday, outlining their growth plans and strategy going forward.
• The Company is focused on enhancing their copper, alumina, bauxite and steelmaking coal portfolio.
• Glencore outlines it has sold/shut 35 assets as it simplifies its portfolio, generating $6.3bn from key disposals.
• The Company has acquired c.1.6bn Glencore shares since 2021, representing c.14% of current shares outstanding.
• Management has identified $1bn in cost saving opportunities, expected to be delivered by 2026-end.
• Glencore has outlined plans to reach 1.6mtpa of copper production by 2035 (c.850kt expected 2025)
• The Copper growth strategy has several key drivers, including:
  • Mara Alumbrera restart: First production due 1H28, for LOM CuEq production of 155kt over 4 years
  • Antapaccay Coroccohuayco: 165ktpa CuEq over 40 year LOM from 2H29, CAPEX $1.8bn
  • MUMI DRC sulphides: 182ktpa CuEq over 25 year LOM from 2031, CAPEX $0.4bn
  • Mara Agua Rica: 204ktpa CuEq over 23 year LM from 2H31, CAPEX $4bn
  • New Range: 36ktpa CuEq from 2031 over 17 year LOM, CAPEX $0.7bn
  • Collahuasi new concentrator: 148ktpa CuEq over >40 year LOM, CAPEX $3.6bn
  • El Pachon: 359ktpa CuEq from 2034 over 40 year LOM, CAPEX of $9.5bn
  • New Range expansion: 93ktpa CuEq from 2037 for >50 year LOM, CAPEX $1.7bn
  • Antapaccay expansion: 201ktpa CuEq from 2037 for >40 year LOM, CAPEX $1.3bn
• Brownfield expansion capital intensity guided at $23.6k/t CuEq, El Pachon capital intensity of $26.4k/t and greenfield peer group seen at $29.5k/t.
• Total copper business CAPEX guided at $23.4bn through to 2037.
• Glencore expects to be able to self fund their copper expansion programme from cash flows at long term copper prices of $9,921/t and gold prices of $2,550/oz.
• Management highlights they will explore strategic partnerships and non-dilutive infrastructure funding for CAPEX financing at Agua Rica and El Pachon.
• At EVR, Glencore expects c.$1.3bn annual CAPEX between 2026-2028 aimed at improving water treatment facilities and materials movement capacity.
• At spot prices, Glencore sees group EBITDA at $16.4bn and spot FCF at $5.5bn.

Conclusion: Glencore’s management has consistently messaged to the market they will wait to see higher copper prices before committing to a major expansion programme in the metal. Glencore stated yesterday that trends in pricing, supply and demand suggest ‘now is the time to sanction these projects.’ Glencore has built a portfolio of brownfield and greenfield expansion programmes that it believes will support a doubling of production to 1.6mtpa by 2035. Key growth drivers include Mara and El Pachon in Argentina. Management pushed back on rumours of a Kazzinc sale but reiterated messaging that there is a price for everything, including the entire group.

*An SP Angel analyst holds shares in Glencore

 Hamak Strategy* (HAMA LN) 1.05p, Mkt Cap £5m – Term sheet with CAA Mining for Akoko gold project in Ghana. Convertible and ATM update.

• Hamak Strategy report the signature of a term sheet with CAA Mining for the exploration and potential acquisition of the Akoko gold project in Ghana.
• Akoko has a non-JORC compliant inferred gold resource of 276,500oz of contained gold grading 1.6g/t
• Initial due diligence by Hamak, based on CAA data has returned positive results defining a robust indicated gold resource of 252,659oz at 0.58g/t.
• Deal: Hamak will pay CAA £20,000 for a 120-day exclusivity period for technical and legal due diligence on Akoko.
• Hamak will then spend a minimum of £500,000 on further exploration and confirmatory work at Akoko next year subject to successful due dlligence.
• The idea is to define and increase the gold resource and run an economic scoping study for an open pit, heap-leach gold mining operation.
• Hamak will then have the right to buy Akoko for:
  • £50,000 cash to CAA by 14 December 2026
  • £1m worth of new Hamak shares to CAA issued at a 10% premium to the 30-day VWAP prior to the notice of exercise
  • Payment of US$1.9 million to Topago.
• CAA will have the right to appoint its CEO, Douglas Chikohora to the Board of Hamak once Hamak has exercised its option to purchase Akoko and has issued the shares to CAA.
• Royalty:  CAA will then be awarded the following Net Smelter Royalty;
  • 0.5% on gold production up to 250,000oz
• 1.0% on gold production from 250,000-1moz
• Hamak will have the first right of refusal to purchase the NSR from CAA.
• ​The Proposed acquisition price of cash and shares equates to US$8 to 10 per ounce of gold.
• See Website for further details: https://hamakstrategy.com/media-hub/regulatory-updates/
• Convertible drawdown:
  • Today Hamak has completed the drawdown of £2.5m from YA II PN, Ltd (Yorkville)
  • The net drawdown proceeds are £2.325m with interest charged at 4%pa
  • The loan maturity is 12 months after drawdown with monthly amortisation of £250,000 plus accrued interest starting 60 days after drawdown.
  • The loan converts into Hamak shares at 2.4p/s.
    • “No short-selling of any ordinary shares in Hamak held by Yorkville permitted”
• ATM facility (No obligation on the Company to use the facility)
• Up to £30m at the discretion of the Company which will set the floor price and daily volume at which shares can be sold
• Hamak to receive 97% of the ATM sales proceeds any new share issues to be compliant with FCA headroom rules for a Standard List Company.
• CAA Mining financial model and key assumptions on Akoko:
  • $50m - initial capex
  • 550,000tpa annual throughput
  • 85% gold recovery
  • US$3,500 gold price

Basic economic indicators and parameters of the CAA economic model.

• “Based on Hamak’s technical due diligence completed to date, including the conclusions and recommendations of its independent consultant Dr. Colin Andrew, who also ran a more conservative financial model, Hamak is confident that the Akoko project represents a viable exploration and development opportunity.
• However, further exploration and resource definition work, along with metallurgical test work and economic scoping studies are required to reach a commercial decision whether Hamak should exercise the exclusive purchase option and thereafter seek to enter the mining phase.”

​*The SP Angel analyst holds shares in CAA Mining.

Ivanhoe Mines (IVN CN) C$15.6, Mkt Cap C$22bn – Expecting 550ktpa over the medium to long term as Kakula dewatering advances

• Ivanhoe provides copper production guidance for 2026 and 2027 from Kamoa-Kakula.
• Ivanhoe expects to produce 380-420kt Cu for 2026 and 500-540kt in 2027.
• Management reiterates Kamoa-Kakula is on track for medium-term production of c.550ktpa.
• Mining rates at Western Kakula have increased to c.4.2mtpa annualised.
• Management expects to reach 5.5mtpa annualised by the end of the quarter, with underground development to a new mining area to the east expected mid-2026.
• Mining is expected to increase to 7-8mt in 2027, with grades expected at 3.5-4.5%.
• Total mining rates expected at >10mt in 2027, grading c.2.5% Cu over the year.
• Processing expected at 17mt in 2027.
• The Company expects to deliver an updated life-of-mine plan for Kamoa in 1Q26.
• Ivanhoe had previously expected to produce 600ktpa in 2026.
• The Kamoa 2023 PFS saw production at 673kt in 2027, 679kt in 2028 and 618kt in 2029.
• Production now expected to average c.550ktpa over the medium to long term.
• Kakula dewatering reportedly over 60% complete, with dewatering expected to be fully complete by end of January.

Conclusion: Ivanhoe is advancing dewatering at Kakula following the flooding incident earlier this year. However this is expected to take c.100ktpa of copper production out of the market over the medium term vs the 2023 Kamoa-Kakula PFS. The copper market has seen several major production hits this year, with Grasberg’s mud rush incident adding to long-term production down grades at Ivanhoe and Teck’s QB. This is being reflected in the copper price, which posted new all time highs yesterday.

Prospect Resources (PSC AU) A$0.2, Mkt Cap A$134m – Higher-grade zones identified at Mumbezhi

• Prospect reports assay results from its extension drilling at Mumbezhi.
• At Nyungu Central south, drilling yielded:
  • NCDD021: 34m at 0.88% Cu from 128m and 2.7m at 0.52% Cu from 114m
• Metallurgical drilling at Kabikupa returned:
  • KKMT001: 18.6m at 0.48% Cu from 98m and 5m at 0.35% Cu from 72m
• Management reports Phase 2 drilling is now complete at Mumbezhi, with 14,770m of DD completed over 59 holes.
• All outstanding assays due mid-January.
• An updated MRE for Nyungu Central and Kabikupa is on track for completion 1Q26.

Q2 Metals* (QTWO CN) C$1.6, Mkt Cap C$303m – Drilling returns 457m at 1.65% Li2O

• Q2 Metals, who are advancing the Cisco lithium spodumene project in Quebec, report assay results.
• Highlights include:
  • CS25-044: two intervals including 37m at 1.65% Li2O from 79m and 457m at 1.65% Li2O from 188m.
• Management report the hole, which formed part of the infill programme, returned ‘extraordinary width and grade… but has significant intervals occurring outside the previously defined bounds of the mineralised zone defined by the Exploration Target.’
• Assay results from CS25-063 and CS25-065 are also believed to have intercepted mneralisation outside of the Exploration Target.
• The Exploration Target currently stands at: 215-329mt at 1-1.38% Li2O.
• The Company has four rigs operating currently, due to pause mid-December and resume in early January.
• A maiden MRE is due 1Q26.

*An SP Angel analyst holds shares in Q2 Metals

Rio Tinto (RIO LN) 5,642p, Mkt cap £69bn – Rio Tinto clarifies its new simpler structure

1. At its ‘Capital Markets Day’ today, Rio Tinto will be describing its previously announced restructuring plans to become “stronger, sharper and simpler”.
2. Efforts will focus on three aspects of the business:
   • Operational excellence in three core businesses - iron ore, copper & aluminium, and lithium; and
   • Project execution- with organic growth opportunities created by efficiency and reliable project execution; and
   • Capital discipline – with disciplined capital allocation and “maintaining a strong, resilient balance sheet”.
3. Rio Tinto aims to grow production by 7% in 2025 and by a compound 3%pa until 2030 underpinned by the Oyu Tolgoi copper expansion as well as iron ore growth at Simandou and lithium at Arcadium and Rincon.
4. The company is aiming to deliver “$650 million of annualised productivity benefits in first three months, with … a simplified organisation … [and] … stronger operational discipline … and efficiency practices” with a “4% reduction in unit costs from 2024-2030”.
5. Rio Tinto is also targeting the “release of $5-10 billion from … [its] … existing asset base” by “exploring commercial, partnership and ownership options across land, infrastructure, mining and processing assets” and continuing reviews of its Iron & Titanium and Borates businesses.
6. The company is increasing its 2025 copper production guidance to 860-875kt (previously 780-850kt) with bauxite production also expected to “exceed the previous guidance of 59 - 61Mt … [and] … aluminium at the upper end of the 3.25 - 3.45Mt guidance range”.
7. In a separate announcement today, Rio Tinto releases initial estimates for lithium mineral resources and reserves acquired in its purchase of Arcadium Lithium.
8. The Fenix lithium brine operation in NW Argentina hosts a ‘Measured’ resource of 2.7mt of LCE, 4.3mt of ‘Indicated’ LCE and 4.7mt of ‘Inferred’ LCE including reserves of 1.2mt of ‘Proven’ and a further 4.1mt of ‘Probable’ reserves.
9. The Olaroz brine operation, also in Argentina, contains a ‘Measured’ resource of 8.5mt of LCE, 8.4mt of ‘Indicated’ LCE and 2.8mt of ‘Inferred’ LCE including reserves of 0.6mt of ‘Proven’ and a further 2.2mt of ‘Probable’ reserves.
10. Also in Argentina, the Sal de Vida lithium brines contain ‘Measured’ resource of 3.5mt of LCE, 3.0mt of ‘Indicated’ LCE and 0.7mt of ‘Inferred’ LCE including reserves of 0.4mt of ‘Proven’ and an additional 2.0mt of ‘Probable’ reserves.
11. Argentina’s Cauchari lithium brine resource contains a ‘Measured’ resource of 1.9mt of LCE, 2.6mt of ‘Indicated’ LCE and 1.5mt of ‘Inferred’ LCE including reserves of 0.2mt of ‘Proven’ and an additional 0.9mt of ‘Probable’ reserves.
12. Hard rock spodumene resources at Whabouchi in Quebec contain ‘Indicated’ resources of 18.7mt at an average grade of 1.51% Li2O and 8.3mt of ‘Inferred’ resources at an average grade of 1.31% Li2O. “Ore Reserves total 26.5 Mt at 1.32% Li2O consisting of 10.5 Mt at 1.40% Li2O of Proved Ore Reserves and 16.0 Mt at 1.27% Li2O of Probable Ore Reserves”.
13. Also in Quebec, the wholly-owned Galaxy spodumene project contains “18.1 Mt at 1.12% Li2O of Indicated Mineral Resources and 55.9 Mt at 1.29% Li2O of Inferred Mineral Resources … [and ore reserves of] … 37.3 Mt at 1.27% Li2O of Probable Ore Reserves”.
14. In Australia, the Mt Cattlin spodumene operation has 0.1mt of ‘Measured’ resources at an average grade of 1.11% Li2O plus 6.4mt of ‘Inferred’ resources at a grade of 1.42% Li2O and ‘Inferred’ resources of 4.8mt at an average grade of 1.27% Li2O.  Ore reserves are “0.1 Mt at 0.80% Li2O of Proved Ore Reserves and 2.2 Mt at 1.11% Li2O of Probable Ore Reserves”.

Conclusion: Rio Tinto is aiming to deliver annualised savings of $650m pa in the first 3 months and release $5-10bn through asset sales in its restructuring plan.

Savannah Resources* (SAV LN) 3.8p, Mkt Cap £99m – Barroso Strategic Status reconfirmed

BUY – 18.5p

• The Company reports reconfirmation of the Barroso Lithium Project as ‘Strategic’ under the European Critical Raw Materials Act.
• The reconfirmation follows a request by separate groups that the European Commission carry an internal review into the March 2025 decision to grant the project its strategic status.
• One of the areas mentioned was the impact of the Project on local water resources.
• The EC re-examined the data confirming its previous decision.
• They also highlighted that the latest project design minimises and monitors the effects of surface and groundwater demonstrating that “the risks related to the availability of water resources have been significantly reduced”.

Conclusion: The reconfirmation of the Strategic Status is a welcome news validating quality of the Company’s environmental studies and project design work. The decision also suggests the EC focus on establishing domestic supply of critical materials with the Barroso Lithium Project, the largest spodumene deposit in Europe, designed to supply ~190ktpa SC5.5 (eq 500k EVs in the 2nd largest market - ~9.5m EVs forecast in Europe, 2030).

A series of funding deals announced for European lithium projects over the last several days (€2.2B funding package for Lionheart Phase One DLE Project in Germany, Vulcan Energy; up to €360m government grant for the Cinovec Lithium Project in the Czech Republic, European Metals) have also a positive read through for the Company supported by recovering lithium prices and robust demand projections.

*SP Angel acts as Nomad and Broker to Savannah Resources

80 Mile Plc* (80M LN) - 0.51p, Mkt cap £26m – Placing to raise £2m at 0.5p

(80 Mile holds 100% of Hydrogen Valley which owns the Ferrandina biofuels plant in Italy and White Flame Energy in Greenland)

• 80 Mile Plc reports the raising of £2m at 0.5p/s.
• Funds will be used to advance development at Hydrogen Valley Limited and for general corporate and working capital purposes.
• The Ferrandina biofuels facility is ramping up capacity to meet new demand for SAF ‘Sustainable Aviation Fuel’, HVO ‘Hydrotreated Vegetable Oil’ and biodiesel.
• Management recently signed a strategic MOU for the supply up to 80,000tpa of renewable feedstocks to the Ferrandina plant starting 1st November including Palm Oil Methyl Ester and repurposed used cooking oil to be delivered to the Taranto port, ~70km from the Ferrandina plant.
• The company also has a Tolling MOU with Ludoil Energia covering 50% of plant capacity whereby Ludoil will provide feedstock and Hydrogen Valley will make revenue solely from processing.
  • “The tolling structure is estimated to generate approximately €8m net profit per year for Hydrogen Valley.”
  • “The other 50% of the capacity is estimated to be double that for total of €24 million net (assuming full production)”
• Management plan to restart the process plant in December full production in January.
• Ferrandina plant permitted capacity: 150,000tpa
• Production:    
  • 80,000 tpa biodiesel in the short term
  • 40,000 tpa of SAF longer term
• MOU with JEnergy S.p.A for a short-term framework for the supply of biodiesel and bioliquids and longer-term discussions on SAF and HVO supply
  • To cover: 10,000tpa biodiesel, additional bioliquids, and longer-term cooperation on SAF and HVO
  • Biodiesel supply from: January 2026
  • SAF/HVO supply from: 2027 onwards
• MOU with NACATA Commodities announced in July for an initial five years covering:
  • Up to 120,000 tpa of feedstock supply
  • Offtake for: 40,000tpa of esterified bioliquid and 80,000 tpa of biodiesel for
• MOU with Tecnoparco Valbasento for up to 40,000tpa of biofuel from Greenswitch, for use in its cogeneration units.
• “The initial 40,000 tpa could increase if Tecnoparco's affiliate industrial operators are included.”
• Deal for 100% ownership of Hydrogen Valley (Ferrandina Plant)
• 80M paid Greendome €100,000 issuing 220m shares to Greendome Holdings Inc. to 10m shares to Mark Frascongna
• Deferred payments:
  • €750,000 in cash,
  • or €750,000 worth of shares in 80M at the 30 day VWAP,
  • or €1,500,000 50% in cash and 50% in 80M shares.
• For further details please see https://www.80mile.com/regulatory-news

*SP Angel acts as nomad and broker to 80 Mile Plc (formerly Bluejay Mining). The analyst has formerly visited license in Greenland with management. 

LSE Group Starmine awards for 2025 / 2024 commodity forecasting:

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Precious Metals forecasting in LSEG Annual Starmine Award for Reuters Polls for Q1 2025

No.1 in Precious Metals: SP Angel mining team awarded No 1. ranking for Precious Metals forecasting in LSEG Annual Starmine Award for Reuters Polls 2024

No.2 in Base Metals: SP Angel mining team awarded No 2. ranking for Base Metals forecasting in LSEG Annual Starmine Award for Reuters Polls 2024

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

Arthur Parish – Arthur.Parish@spangel.co.uk – 0203 470 0476

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

Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471

George Krokos - george.krokos@spangel.co.uk – 0203 470 0486

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*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.

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