Today's Market View - AfriTin Mining, Castillo Copper, East Star Resources, and more... | LON:ATM

2022-09-17 02:56:30 By : Mr. Tony Liu

SP Angel . Morning View . Wednesday 31 08 22Metals prices hold up despite sharp correction in oilMiFID II exempt information – see disclaimer below LON:ATM – Phase 1 construction completed at the Uis mineLON:AAL – De Beers reports continuing strength in rough diamond demand ahead of the Diwali holiday season

SP Angel . Morning View . Wednesday 31 08 22 Metals prices hold up despite sharp correction in oil

MiFID II exempt information – see disclaimer below 

AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) – Phase 1 construction completed at the Uis mine Anglo American PLC (LSE:AAL) – De Beers reports continuing strength in rough diamond demand ahead of the Diwali holiday season Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) – Appointment of drilling contractors for campaign at the East Zone of the BHA project East Star Resources PLC (LSE:EST) – Early-stage exploration results from Rudny Altai, Kazakhstan Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF)* – C$6.9m raised for exploration and development at Joshua Vein Kavango Resources PLC (LSE:KAV, OTC:KVGOF) – Drill target identified at KCB license Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR) – Interims Tianqi Lithium (SHE: 002466) – Lithium prices drive rise in sales and profits at Tianqi Lithium Sandfire Resources NL (ASX:SFR) – Plan for Motheo expansion to 5.2mtpa delivers positive DFS Serabi Gold (AIM:SRB, TSX:SBI)* – Interim results hit by increased costs Shanta Gold Limited (AIM:SHG, OTC:SAAGF) – Singida construction 70% complete with first production reiterated for Q1/23 Tesoro Resources (ASX: TSO) – Continued positive drill results at El Zorro

Interest rates likely to go yet higher as Fed looks to make quick move on inflation

Dow Jones Industrials -0.96% at 31,791 Nikkei 225 -0.37% at 28,092 HK Hang Seng +0.16% at 19,981 Shanghai Composite -0.78% at 3,202

US - Non-farm payrolls due Friday.

Ongoing jobs growth likely to spook markets on prospect of aggressive rate hike to control inflation.

Mexico - Unemployment rose to 3.4% in July vs 3.3% in June

Japan - Unemployment held at 2.6% in Japan

EU - Economic sentiment 97.6 in August vs 98.9 in July

Germany – Energy drought to disrupt German industry as Europe heads into Winter recession

US$1.0018/eur vs 0.9996/eur yesterday. Yen 138.50/$ vs 138.61/$.  SAr 16.997/$ vs 16.829/$.  $1.167/gbp vs $1.171/gbp. 0.689/aud vs 0.692/aud.  CNY 6.895/$ vs 6.917/$.

US Dollar index – 108.77 / -0.01%.  Chinese Yuan falls 4.5% vs US dollar

Gold US$1,721/oz vs US$1,733/oz yesterday

Gold ETFs 100.0moz vs US$100.1moz yesterday

Platinum US$852/oz vs US$858/oz yesterday

Palladium US$2,120/oz vs US$2,149/oz yesterday

Silver US$18.40/oz vs US$18.75/oz yesterday

Rhodium US$14,100/oz vs US$14,100/oz yesterday

Copper US$7,920/t vs US$7,934/t yesterday

Aluminium US$ 2,405/t vs US$2,432/t yesterday

Nickel US$ 21,369/t vs US$21,275/t yesterday

Zinc US$ 3,490/t vs US$3,504/t yesterday

Lead US$ 1,988/t vs US$1,987/t yesterday

Tin US$ 23,500/t vs US$24,235/t yesterday

Oil US$99.8/bbl vs US$104.7/bbl yesterday

Natural Gas US$9.143/mmbtu vs US$9.267/mmbtu yesterday

Uranium UXC US$51.20/lb vs US$49.70/lb yesterday

Iron ore 62% Fe spot (cfr Tianjin) US$98.4/t vs US$102.3/t

Chinese steel rebar 25mm US$602.5/t vs US$607.7/t

Thermal coal (1st year forward cif A RA) US$302.0/t vs US$306.0/t

Coking coal swap Australia FOB US$315.0/t vs US$315.0/t

Cobalt LME 3m US$51,955/t vs US$51,955/t

NdPr Rare Earth Oxide (China) US$91,007/t vs US$91,092/t

Lithium carbonate 99% (China) US$68,962/t vs US$68,753/t

China Spodumene Li2O 5%min CIF US$4,990/t vs US$4,940/t

Ferro-Manganese European Mn78% min US$1,227/t vs US$1,225/t

China Tungsten APT 88.5% FOB US$333/t vs US$333/t

China Graphite Flake -194 FOB US$815/t vs US$815/t

Europe Vanadium Pentoxide 98% 7.3/lb vs US$7.3/lb

Europe Ferro-Vanadium 80% 31.75/kg vs US$31.75/kg Vanadium prices post healthy recovery in China

Chinese vanadium nitride prices have recovered to CNY168,500 from their 2 August low of CNY144,500.

China Ilmenite Concentrate TiO2 US$334/t vs US$336/t

Spot CO2 Emissions EUA Price US$82.9/t vs US$89.5/t

Brazil Potash CFR Granular Spot US$860.0/t vs US$900.0/t

AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) 5.15p, Mkt Cap £59m – Phase 1 construction completed at the Uis mine

Anglo American PLC (LSE:AAL) 2,837p, Mkt Cap £37.3bn – De Beers reports continuing strength in rough diamond demand ahead of the Diwali holiday season

Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) 0.89p, Mkt Cap £10.7m – Appointment of drilling contractors for campaign at the East Zone of the BHA project

Conclusion: We await the start of the drilling programme at the BHA zone later this year.

East Star Resources PLC (LSE:EST) 5.25p, Mkt Cap £9.7m – Early-stage exploration results from Rudny Altai, Kazakhstan

Conclusion: Early-stage results from rock-chip sampling confirms the VMS potential of Rudny Altai which East Star Resources plans to drill in H1 2023.

Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF)* 35p, Mkt Cap £36m – C$6.9m raised for exploration and development at Joshua Vein

*SP Angel acts as nomad for Galantas gold

Kavango Resources PLC (LSE:KAV, OTC:KVGOF) 1.8p, Mkt cap £8m – Drill target identified at KCB license

Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR) 17.5p, Mkt Cap £30m – Interims

Tianqi Lithium (SHE: 002466)  CNY114/s, Mkt cap CNY184bn – Lithium prices drive rise in sales and profits at Tianqi Lithium

Sandfire Resources NL (ASX:SFR) A$4.62, Mkt Cap A$1.9bn – Plan for Motheo expansion to 5.2mtpa delivers positive DFS

Serabi Gold (AIM:SRB, TSX:SBI)* 31.5p, Mkt Cap £27m –Interim results hit by increased costs

Conclusion: Serabi is facing cost pressures as a result of increasing fuel and power costs and increases in its underground drilling programme as it builds its resource base

*An SP Angel analyst has visited the Serabi’s gold mining operations in Brazil

Shanta Gold Limited (AIM:SHG, OTC:SAAGF) 9.75p, Mkt Cap £105m – Singida construction 70% complete with first production reiterated for Q1/23

Conclusion: Singida is now 70% complete and expected to start production early in 2023 moving Shanta Gold into the ranks of a >100,000pa gold producers.

Tesoro Resources (ASX: TSO)  A$0.043, Mkt cap A$37m – Continued positive drill results at El Zorro

Conclusion: Tesoro have been successful at intersecting broad mineralisation at Ternera, and we look forward to the release of the five other assay results due for the project.

No.1 in Copper:   “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”

No1. In Gold:  “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”

The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020

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

Joe Rowbottom – Joe.Rowbottom@spangel.co.uk - 0203 470 0486

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

*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, Tungsten, Spodumene, Ferro-Manganese, Graphite - Asian Metal

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