SP Angel . Morning View . Tuesday 19.05.26

MiFID II exempt information – see disclaimer below

Empire Metals* (EEE LN)  –A$700k Eclipse mining lease sale executed

Hamak Strategy* (HAMA LN)  – Drilling update from Akoko, Ghana

LinQ Minerals (LNQ AU) – Maiden drilling at Monza returns 71m at 1.1% CuEq

Mineral Resources (MIN AU) – Bald Hill lithium mine restart

Talisman Metals (TLM LN) – Stream sediment sampling identifies target at Fougnar project, Morocco

Thor Explorations (THX LN)  – Guidance maintained as focus on extending Segilola mine life and FID at Douta

URU Metals* (URU LN)  – Finalisation of fieldwork for FDEM survey at the Zeb Nickel project

Viridis Mining and Minerals (VMM AU) – Environmental permitting update

Gold ($4,540/oz) edges lower as market looks to Trump and Iran for peace deal

• Gold prices have remained under pressure, struggling to move past $4,590/oz following last week’s sell-off.
• Crude prices are cooling slightly this morning but remain elevated, suggesting limited visibility on a potential peace deal in Iran.
• US Treasuries remain under pressure, with the 10-year holding over 4.6%.
• Higher yields are weighing on precious metals, with the dollar rallying as capital flows into US government debt.
• The dollar index has climbed to its highest level since early April.
• Trump held off on strikes against Iran this week, stating that Gulf states had called for him to postpone the offensive.
• Elsewhere, Bloomberg reports Ghana is encouraging large scale miners to sell c.30% of their annual output to local refiners in a bid to boost foreign-exchange reserves.
• Ghana currently sees 20% of large producers’ gold refined in country by the Ghana Gold Board. The nation is also negotiating a 1% discount on gold sales to the government.
• Zambia is forming a state backed gold venture to formalise artisanal gold trading, also introducing more mechanised gold production.
• Zambia is following the DRC’s efforts to increase state revenue from the illegal gold mining trade, reducing smuggling efforts and boosting state coffers.

Aluminium ($3,600/t) pushes higher as Chinese output hits record highs

• Aluminium prices continue to strengthen amid higher input costs, tariff impacts and supply disruption from the Gulf.
• Chinese smelters are ramping up output, hitting a record daily output of 129kt in April.
• However, Chinese domestic demand remains weak, with inventories doubling to a six-year high of 1.37mt this year.
• Chinese smelters are ramping up output this year to take advantage of higher global prices.
• The Middle East supplies c.9% of global aluminium supply, with the closure of the Straits of Hormuz pushing prices to recent highs of $3,685/t, up 47% LTM
• Tsingshan Aluminium which has a stake in the Weda Bay industrial park power plant has asked nickel pig iron producers to slow production in in June so it will have power for aluminium (Reuters)
• There are 22 NPI plants in the area with capacity of 700ktpa of contained nickel but with <10% operating margins
• Analysts expect a 2mt deficit through to year end, as alumina flows into the Middle East remain constrained.
• Europe imports 18.5% of its aluminium from the Middle East and the US imports 22% of its annual demand. (TDM)

Tungsten – prices pull back as machine tool manufacturers substitute tungsten for PCBN, PCD and Cermets

• China Tungsten APT 88.5% FOB US$1,763/mtu vs US$1,833/mtu
• Tungsten and tungsten carbide is difficult to substitute but a 10 x rise in recent prices is leading new innovation in this area with diamond paste and other alloys.
• PCBN ‘Cubic Boron Nitride’, PCD Polycrystalline Diamond and Cermets ‘ceramic-metal composites, which often use Titanium Carbonitride for heat resistance

IG TV Gold report: https://youtu.be/PliTL-z0n54?si=HvvFdldYY7oHK7s7

Currencies

US$1.1632/eur vs 1.1633/eur previous. Yen 159.08/$ vs 158.97/$. SAr 16.616/$ vs 16.715/$. $1.340/gbp vs $1.334/gbp. 0.714/aud vs 0.715/aud

CNY 6.804/$ vs 6.806/$.  Dollar Index 99.18 vs 99.21 previous

Economics

US – President Trump says he paused a planned attack against Iran after Tehran sent a peace proposal.

The Speaker of the US House of Representatives has declared “Operation 'Epic Fury' has ended

• The US is now working on how to reopen the Strait of Hormuz.”
• Washington reports there is a “very good chance” of reaching a deal limiting Tehran’s nuclear programme.
• “We will Not be doing the scheduled attack of Iran tomorrow, but have further instructed them to be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached,” Trump said yesterday.
• The proposal is reported to be similar in many respects to Iran’s previous offer that was rejected by the US, a senior Iranian source said.
• Persistent high yields in US Treasuries raise the potential for a market correction.

UK - Unemployment hits 5% in the three months to March but falls to 4.9% in April

• Unemployment rate inched higher to 5.0% in March, up 0.1pp on the previous month.
• Demand for labour as measured by vacancies dropped to a five year low of 705k in the three months through April.
• 100k jobs were gone last month, worse than 10k forecast.
• Youth unemployment hit 16.2%, the highest since the start of 2015.
• A 296,000 fall in payrolled employees under the age of 35 since October 2024 compared with a rise of 18,000 for >35 year olds.
• Markets dialled back some of rate hikes expectations, although, the consensus is for two hikes in 2026 (3.75% BoE rate atm).

Andy Burnham says he won’t change UK borrowing limits

• Andy Burnham’s track record appears to be based on sorting out the busses in Manchester.
• But having sorted out the busses can Burnham sort out the Bins in Burmingham and the Wallys in Westminster?
• Given that Burnham is seen as more socialist than Starmer we are wondering how he is going to stick to UK borrowing limits?
• Burnam, says the councils have no control over costs relating to migrant hotels and other costs.
• Burnam, also says he is going to change how government works.
• Unfortunately, a system that has evolved from the 1707 Acts of Union might prove trickier to change than the busses and the bins.
• Kier Starmer is reported to be trying to sabotage Andy Burnams’ byelection chances by proposing the UK should join the EU, a move which is likely to persuade more voters to vote against Labour and move to Reform.

Putin arrives to Beijing this evening for an official visit (19-20 May).

Saudi Arabia - Air defences intercepted three drones which crossed into Saudi from Iraq on Sunday.

• Pakistan has deployed around 8,000 troops, fighter jets, drones, and air defense systems to Saudi Arabia under a previously undisclosed defense pact during the war with Iran.
• The force may expand to 80,000 troops if required and is said to include JF-17 fighter jets and Chinese-made HQ-9 air defense systems.

Australia – Monetary policymakers are growing increasingly concerned about inflation expectations becoming unanchored

• RBA Assistant Governor Sarah Hunter highlights oil price shock comes on top of earlier inflationary pressures.
• “We are more worried now than we have been in the past”.
• Market currently prices in one hike before the end of 2026 (4.35% RBA rate atm).

Precious metals:

Gold US$4,546/oz vs US$4,541/oz previous

   Gold ETFs 98.7moz vs 98.8moz previous

Platinum US$1,971/oz vs US$1,975/oz previous

Palladium US$1,399/oz vs US$1,400/oz previous

Silver US$75.9/oz vs US$75.6/oz previous

   Silver ETFs 795.6moz vs 796.6moz previous

Rhodium US$9,825/oz vs US$9,900/oz previous

Base metals:   

Copper US$13,545/t vs US$13,494/t previous

Aluminium US$3,570/t vs US$3,567/t previous

Nickel US$18,845/t vs US$18,610/t previous

Zinc US$3,526/t vs US$3,530/t previous

Lead US$1,976/t vs US$1,981/t previous

Tin US$52,745/t vs US$52,410/t previous

Energy:

Oil US$110.4/bbl vs US$110.7/bbl previous

Natural Gas €50.7/MWh vs €51.8/MWh previous

Uranium Futures $85.2/lb vs $86.2/lb previous

Bulk:

Iron Ore 62% Fe Spot (Singapore) US$107.7/t vs US$108.2/t

Chinese steel rebar 25mm US$488.7/t vs US$488.5/t

HCC FOB Australia US$238.5/t vs US$239.0/t

Thermal coal swap Australia FOB US$138.0/t vs US$136.5/t

Other:

Cobalt LME 3m US$56,290/t vs US$56,290/t

NdPr Rare Earth Oxide (China) US$105,087/t vs US$108,728/t

Lithium carbonate 99% (China) US$26,676/t vs US$27,402/t

China Spodumene Li2O 6%min CIF US$2,710/t vs US$2,790/t

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

China Tungsten APT 88.5% FOB US$1,763/mtu vs US$1,833/mtu

China Tantalum Concentrate 30% CIF US$208/lb vs US$203/mtu

China Graphite Flake -194 FOB US$420/t vs US$420/t

Europe Vanadium Pentoxide 98% US$6.0/lb vs US$6.0/lb

Europe Ferro-Vanadium 80% US$28.4/kg vs US$28.4/kg

China Ilmenite Concentrate TiO2 US$242/t vs US$246/t

US Titanium Dioxide TiO2 >98% US$2,809/t vs US$2,809/t

China Rutile Concentrate 95% TiO2 US$1,154/t vs US$1,153/t

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

Brazil Potash CFR Granular Spot US$405.0/t vs US$405.0/t

Germanium China 99.99% US$3,725.0/kg vs US$3,725.0/kg

China Gallium 99.99% US$400.0/kg vs US$400.0/kg

Europe Molybdenum Oxide 57% US$30.0/lb vs US$30.0/lb



Company news:

Empire Metals* (EEE LN) 37p, Mkt Cap £253m –A$700k Eclipse mining lease sale executed

• Empire Metals has executed the sale of its Eclipse Mining Lease.
• The Agreement disposes of Empire’s 75% interest in Eclipse for A$750k, with A$50k already received as a deposit.
• The completion of the sale is contingent on satisfaction of remaining conditions, including ministerial approval.
• The Company expects the conditions to be satisfied imminently.

Conclusion: Empire continues to streamline its portfolio of assets as it focuses on developing the long-life, large-scale strategic titanium asset Pitfield. Alongside the recent $8m raise, the additional A$700k from the Eclipse sale will support various workstreams as management continues to derisk Pitfield. Going forward, Empire is advancing pilot scale testing and marketing of the high-value TiO2 product as it advances towards an upgraded MRE and Pitfield Scoping Study

*SP Angel acts as Nomad and Broker to Empire Metals

Hamak Strategy* (HAMA LN) 0.85p, Mkt Cap £3.8m – Drilling update from Akoko, Ghana

• Hamak Strategy reports that it has completed 23 reverse-circulation (RC) drillholes (1,487m) of its planned 4,125m programme at Akoko Gold Project in Ghana.
• Drilling to date has focused on “the previously defined gold mineralized area of the Akoko north area”.
• Today’s announcement highlights a 13m intersection from 10m depth in hole 2026-036 at an average grade of 1.87g/t gold and included a 4m section from 13m depth which averaged 3.64g/t gold.
• Confirming that the drilling programme is continuing, the company explains that the drilling results “support … [the] … geological model of wide, near surface gold mineralised horizons”.
• CEO, Karl Smithson, welcomed the results supporting the model with “near surface oxide gold mineralization being intersected”.
• He said that the “consistency of intersections will assist in the confidence of the independent and industry standard mineral resource estimate and preliminary economic assessment that we plan to commission towards the end of the current drilling programme”.

​*An SP Angel analyst holds shares in CAA Mining which may gain shares in Hamak Strategy

LinQ Minerals (LNQ AU) A$0.51, Mkt Cap A$77m – Maiden drilling at Monza returns 71m at 1.1% CuEq

• Australian copper-gold explorer Linq reports drilling results from the Monza target at its Central Zone of the Gilmore Project.
• The Monza drilling programme is intended to test for gold-copper mineralised extensions intersected in previous drilling.
• Eight holes have been completed, with assays returned for hole MZACD003, yielding:
  • 70.8m at 1.11% CuEq from 72m (inc. 10m at 2.82% CuEq from 104m) and 123m at 0.55% CuEq from 150m
• The hole was drilled to a depth of 405m, targeting eastern and down plunge extensions of porphyry copper and gold mineralisation identified in hole TMZD006 (64m at 0.86%CuEq)
• Assays for 0-71m and 309-405m are pending.
• Linq notes the results confirm higher-grade shallow-lying copper-gold porphyry mineralisation and supports the Company’s plan to continue drill testing for extensions.
• Monza reportedly remains open in multiple directions, with Linq seeing Monza and the neighbouring wEstoril zones as part of a single porphyry system.

Mineral Resources (MIN AU) A$66, Mkt Cap A$12.9bn – Bald Hill lithium mine restart

• The Company announced yesterday it will be restarting a 100% owned Bald Hill Lithium Mine, Australia (WA).
• The decision is driven by a recovery in lithium prices.
• The mine was placed on C&M in November 2024 amid a selloff in spodumene prices.
• The operation hosts 58.1mt 0.94%Li2O in MRE (~1.3mt LCE).
• The mine has a 165ktpa SC5.1 (140kt SC6E).
• The restart programme will commence in late May, with crushing/mining to resume in June and first production in July.
• A$20m restart cost including working capital.
• FY27 Bald Hill guidance (production/opex/capex) to be provided in August 2026.

Talisman Metals (TLM LN) 8p, Mkt Cap £4.8m – Stream sediment sampling identifies target at Fougnar project, Morocco

• Talisman Metals reports that stream sediment sampling, particularly in the northern part of its Fougnar project in Morocco has helped identify potential drilling targets.
• The sampling programme has also located “a previously unknown area of potential … [sediment hosted copper/silver] … mineralisation … [which] … will be added to the anticipated drill program scheduled for the summer 2026”.
• The “Newly identified target corridors extend over approximately 4 km across six distinct target areas … in addition to the existing 2.5 km mineralised trend identified along strike”.
• Follow-up work is expected to include detailed mapping and sampling plus trenching of potential targets ahead of drilling the more promising targets.
• CEO, Tim McCutcheon, explained that “The main work focus at the Fougnar Project to date has been on the northern section, due to outcropping mineralisation … [but] … significantly copper-anomalous samples were collected on the southern part of the Fougnar Project over a 1km long interval”.
• He confirmed that “We now have expanded the target zone to an even larger area to drill”.

Thor Explorations (THX LN) 80p, Mkt Cap £513m – Guidance maintained as focus on extending Segilola mine life and FID at Douta

• Nigerian gold producer Thor reports 1Q26 financial and operating results.
• The Company processed 240kt ore at 2.54g/t Au with 20.3koz poured and 15.4koz sold (25.8koz sold in 4Q25).
• Average price realised of $4,820/oz generated revenue of $74.3m.
• Cash costs reported at $672/oz with AISC of $936/oz.
• EBITDA at $55.8m and net income of $46.7m.
• Net cash increased to $178m from $151m in December.
• Focus at Segilola is on extending the mine life, with six rigs currently on site testing depth extensions.
• Thor is exploring options for pit cutbacks before transitioning to underground mining.
• Company is also targeting along strike extensions of Segilola with a drilling programme.
• At Douta, focus is on upgrading inferred mineralisation and testing several oxide targets over the wider permit, with a 40,000m drilling programme udnderway.
• Douta holds a mining inventory of 1moz at 1.03g/t Au and is expected to support a 12.6 year operation at AISC of $1,555/oz for CAPEX of $254m.
• Thor is targeting FID at Douta this year, and expects to receive the necessary mining permit in the meantime.
• Company reiterates 2026 production guidance of75-85koz at AISC of $1,000-1,200/oz.

URU Metals* (URU LN) 6.02p, Mkt cap £5.9m – Finalisation of fieldwork for FDEM survey at the Zeb Nickel project

• URU Metals report the finalisation of fieldwork for the FDEM ground-based ‘frequency-domain electromagnetic’ survey at the Zeb Nickel project.
• The results will be combined with the ground-based gravity survey over Targets 1 and 2, the Spectrem electromagnetic and the high-precision CG5 gravity surveys for drill targeting.
• The team are targeting their previously interpreted magmatic conduit system and potential semi-massive to massive nickel sulphide mineralisation.
• Combining the data should better define:
  • Conductive and dense anomaly targets;
  • Geometry and continuity of prospective mineralised zones;
  • Identify and prioritise the most prospective locations for the upcoming drilling programme.
• Final interpretation of the data should give a series of drill targets with the geological team selecting the best of these for drilling.

Conclusion: Setting the groundwork is important before drilling to give the best possible chance of hitting the target mineralisation.

High-grade nickel pods and feeder zones are difficult to hit with >200m drill holes but if they are identified in drilling this will be a meaningful event.

*SP Angel acts as Nomad and Broker to URU Metals

Viridis Mining and Minerals (VMM AU) A$2.8, Mkt Cap A$348m – Environmental permitting update

• The Company completes the submission of the Installation License (IL) application for the Colossus Rare Earth Project, Brazil (Minas Gerais).
• The application follows a successful grant of the Preliminary License (PL) in December.
• This is the second stage in the three step environmental licensing process (PL, IL, Operating License).
• Project funding, offtake and strategic partner discussions are well advanced.
• A formal EPCM contractor selection process underway.
• DFS due later this year.
• FID targeted for 2H26.
• Colossus 2025 PFS highlights:
  • 20y LOM
  • 5mtpa ionic clay operation
  • 57% TREO recoveries
  • 9.4ktpa TREO in MREC
  • 3.5ktpa MREO
  • US$358M development capex
  • Post Tax NPV8 and IRR ~$900m and 34% (@$90/kg NdPr and 70% payability for MREC)

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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

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

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+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

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