SP Angel . Morning View . Monday 08 06 20
Oil lifts market as funds move to Equities
MiFID II exempt information – see disclaimer below
BlueRock Diamonds* (BRD LN) – Sale of $700,000 of diamonds
Edenville Energy* (EDL LN) – Contract and sales agreement, Rukwa operations update and a £0.5m placing
Europa Metals Limited (EUZ LN) – Application to renew investigation permit for the Toral zinc, lead, silver project in Spain
Hummingbird Resources (HUM LN) – Acquisition of the Kouroussa gold project in Guinea
Trans-Siberian Gold (TSG LN) – Final dividend announced on record sales year
Iron ore lifts Major miners on Brazil supply disruption - Rio Tinto, BHP and Anglo American rising
Iron ore futures prices rose a further 7.6% today in early trade (Reuters)
- The Dalian iron ore price hit Rmb798/t ($112.60/t)
- The combination of Chinese stimulus, low port inventories of iron ore and supply disruption is lifting spot and futures iron ore prices
Funds move to more risky assets as yield on US treasuries rises
Yield on 10-year Treasuries rose to 0.959% on Friday rising 14bp (0.14%) from Thursday to Friday peak.
- The higher yield indicates investors moving to sell US Treasuries and buying more risky assets following better than expected US payroll numbers data
- The S&P rose 2.62% on Friday, Dow +3.15% and Nasdaq +2.06%.
OPEC + extended production cuts to August lifting oil equities and offsetting pullback in other sectors
Saudi Arabia hikes oil prices shocking refineries in Asia that are not able to easily switch to other suppliers
- Sadly, the rise in crude prices may serve to dampen economic growth prospects.
World's largest all-electric aircraft, makes first successful flight in US
- The modified Cessna Caravan landed at Moses Lake, Washington
- OXiS Energy* are a UK company making high-power, lightweight Li-S batteries for aircraft.
- OXiS are supplying batteries to a number of aircraft manufacturers for testing with the first OXiS battery aircraft trials run in the US on the ground.
- Please contact us for further details
*SP Angel act for OXiS energy
IG TV interview on Mining Sector prospects with SP Angel analyst.
Stimulus tally
- $140bn - ChinaPBOC buying CNY1tn of bank loans issued by local lenders to small firms this week in an effort to ease the flow of credit.
- We have previously assumed China at $909m $344bn of China stimulus + $565bn in special bonds for infrastructure by local authorities
- $1.1tr - Japan - further stimulus to combat pandemic including significant direct spending to stop the coronavirus pandemic pushing the country's economy deeper into recession. The 117tn-yen stimulus, funded partly by a second extra budget, will be on top of another 117tn package already rolled out last month - and takes total spending in Japan at 234tn yen ($2.18tr) - 40% of Japans GDP. To fund the costs, Japan will issue an additional 31.9 tn yen in government bonds under the second supplementary budget for the current fiscal year ending in March 2021.
- $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
- 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.
- $13.3bn - Saudi Arabia central bank will inject 50bn riyals ($13.3bn) into the banking system on top of US$43.7bn already pledged
- South African reserve bank buys ZAR10.2bn (US$119m) South African government bonds in May
- $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
- $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
- 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
- $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 Australia - RBA ready to buy bonds again.
- $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, $0.75bn Indonesia,
- Argentina to default on $10bn of dollar debt issued til the end of the year. Does not affect the $70bn that Argentina is currently in talks to restructure.
- $1,000bn - IMF available + $12bn World Bank,
>15tn from 14.8tn
|
Dow Jones Industrials |
+3.15% |
at |
27,111 | |
|
Nikkei 225 |
+1.37% |
at |
23,178 | |
|
HK Hang Seng |
+0.07% |
at |
24,789 | |
|
Shanghai Composite |
+0.24% |
at |
2,938 |
Economics
US - US starts to show economic recovery as nation returns to work
Unemployment rate unexpectedly falls in May amid claims of inaccuracies
- The Labour Department's monthly employment report showed the jobless rate dropped to 13.3% last month compared to 14.7% in April.
- Nonfarm payrolls rose by 2.509 million jobs after a record drop of 20.687 million jobs in April.
- Since the data was released on Friday, many analysts have speculated that unemployment figures have been under-reported due to misclassifications.
- The Bureau of Labour Statistics have acknowledged the problem, and estimate that the overall unemployment rate would have been about 3% higher than reported.
- May private employment increased to 3.094m vs -19.55m in April,
- Manufacturing employment rose 225k vs -1.33m,
- Average hourly earnings rose 6.7% yoy vs 8%)
- Average hours worked up 34.7 vs 34.2
- Participation rate edged higher 60.8% vs 60.2%
China - Passenger car retail sales grew 12.3% mom and 1.9% yoy in May to 1.64m vehicles the first rise for 11 months (China Passenger Car Association).
- China wholesales of new energy cars fell 25.8% y/y in May to about 70,200 units, but 19.5% higher than the previous month.
EU considering easing of capital market rules to boost recovery
Some commentators are suggesting the EU may now ‘reverse draconian’ MiFID II regulations
- Liberalisation of financial markets should be good for liquidity, equities and banks in our view
- Eurozone Sentix Investor Confidence Jun recovered somewhat to -24.8 vs -41.8 previously on stimulus measures and lockdown easing
UniCredit, chief global economist, expects the biggest peacetime recession in almost 100 years in Europe (FT).
- Eric Nielsen reckons we are now some 15 to 30 per cent below GDP levels at the beginning of the year on preliminary indicators.
- Southern Europe and France have suffered most; northern and central Europe somewhat less — and countries such as Russia and Turkey still less so
- Nielsen expects a long, gradual recovery as we learn to live with the virus and expects eurozone GDP to contract by about 13% this year.
- 2021 will probably see impressive growth rates but GDP at end 2021 may still be 4% below the pre-crisis level.
- Turkish and Russian GDP will drop by about 5.5% this year with Turkey bouncing back stronger in 2021
- He sees an overall GDP fall on the on the same scale as during the 1930s, but followed by a faster and more robust recovery.
Germany - Industrial output falls 17.9% MoM in April
- Manufacturers of capital goods recorded a decline of -35.3%, whilst construction and energy output were both down 4.1% and 7.2% respectively.
- As measures to contain the spread of Covid-19 took their toll on a full scale in April, the German Economy Ministry expect this data to represent a low point- followed by an economic recovery.
Japan - leading economic index fell to 76.2 in May vs 85.1 in April
Canada - employment rises 289.6k in May vs -1.994m in April
- Unemployment 13.7% vs 13%
- Participation rate 61.4% vs 59.8%
Mexico - Auto output recovers in May, still down YoY
- Mexican light vehicles output totalled 22,119 in May, falling by 94% from 350,060 units compared to the same period last year according to the national statistics institute.
- Despite the steep annual decline, production was almost six times higher than the 3,722 units produced in April.
UK - Ministers target 22nd of June for reopening of pubs and restaurants
- Chancellor Sunak is among half a dozen ministers, calling themselves the "save summer six"- seeking to accelerate the reopening of the economy, the FT reports.
- The hospitality sector was not due to open until the 4th of July; however minsters hope to reopen pubs and restaurants by serving customers outdoors, amid fears of mass job losses.
- May UK GfK consumer confidence -36 in May vs -33 in April
New Zealand to move to alert level 1 tomorrow, eg returning to mostly near normal life
Currencies
US$1.1287/eur vs 1.1359/eur last week. Yen 109.53/$ vs 109.33/$. SAr 16.807/$ vs 16.809/$. $1.268/gbp vs $1.266/gbp. 0.697/aud vs 0.700/aud. CNY 7.078/$ vs 7.083/$.
Commodity News
Precious metals:
Gold US$1,694/oz vs US$1,708/oz last week - Gold price falls on better than expected US job data
- The price of gold fell on Monday, as an unexpected improvement in the US employment numbers boosted optimism about an economic recovery, denting appeal for the safe-haven.
- On Friday, the US Labour Department released the jobs report for May, showing a jump of 2.5 million individuals that were added to payrolls and a drop of the unemployment rate to 13.3% (Kitco).
- This data caused US equities to increase, and also resulted in gold falling below $1,700/oz on Friday as gold fell 2.4% last week- its largest weekly fall since the 13th of March.
- This morning, spot gold was down 0.2% at $1,683/oz whereas US gold futures were up 0.3% at $1,688/oz (Reuters).
Gold ETFs 100.4moz vs US$100.6moz last week
Platinum US$831/oz vs US$840/oz last week
Palladium US$1,968/oz vs US$1,944/oz last week
Silver US$17.62/oz vs US$17.70/oz last week
Base metals:
Copper US$ 5,658/t vs US$5,585/t last week - Shanghai Exchange metals stocks saw copper stocks fall a further 3.5% to 140,000t
Aluminium US$ 1,594/t vs US$1,575/t last week
Nickel US$ 12,875/t vs US$12,975/t last week
Zinc US$ 2,008/t vs US$2,040/t last week
Lead US$ 1,740/t vs US$1,764/t last week
Tin US$ 16,620/t vs US$16,140/t last week
Energy:
Oil US$42.8/bbl vs US$40.4/bbl last week
- Saturday’s OPEC+ meeting saw Saudi Arabia and Russia convince all other members to extend the 9.7MMbopd May/June supply limits through the end of July
- The cuts had been scheduled to scale back to a combined 7.7MMbopd from next month
- We note that Reuters has also reported that Saudi has reduced its daily production by 2.24MMbopd from its market-flooding level in April, while Russia has cut its daily production by 900kbopd
- Combined with dramatic reductions in crude output in the U.S. and Canada and a more-rapid-than-expected recovery in demand, the extension of the OPEC+ May/June quotas sets the stage for a more rapid re-balancing of the global markets
- Those stronger prices have enabled some U.S. shale producers to begin reactivating many wells that had been shut-in, especially in the sweeter spots of the Permian Basin
- Both EOG Resources and Parsley Energy confirmed that they were in the process of restarting wells this month
Natural Gas US$1.767/mmbtu vs US$1.829/mmbtu last week
- Last weeks storage reports confirmed a smaller than expected build in natural gas inventories
- US Natural gas in storage was 2,714Bcf as of 29 May according to the EIA
- This represents a net increase of 102Bcf from the previous week
- Expectations were for a 109Bcf build, whilst stocks were 762Bcf higher than this time last year and 422Bcf above the five-year average of 2,292Bcf
- At 2,714 Bcf, total working gas is within the five-year historical range
- The weather is expected to remain warmer than normal over the next two weeks through the US mid-west and the northeast
Uranium US$33.15/lb vs US$33.35/lb last week
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$97.5/t vs US$95.7/t - China iron ore imports declined 9% last month as supply worries continue
- China's iron ore imports fell sharply to 87.03mt in May compared to a month earlier, due to supply disruptions from the world's second largest producer Brazil.
- Total imports for the first five months of 2020 stood at 44.54mt, up 5.1% from the same period last year.
- Iron ore futures surged on Monday morning, as supply concerns grew after Vale suspended the activities of the Itabira mining complex, consisting of multiple mines in Brazil.
- The most active iron ore contract on the Dalian Commodity Exchange jumped more than 7% to its highest since August 2019 at 798 yuan/t on Monday morning, whilst futures on the Singapore Exchange hit a ten-month peak of $103/t.
- The shutdown from Vale was in compliance with a decision by the Regional Labour Board to "protect the health of workers" in the midst of the Covid-19 pandemic which has hit Brazil particularly hard (SMM News).
- Vale is maintaining its iron ore fines production guidance for 2020 of 310-330mt despite suspending operations at its Itabira mining complex (Fastmarkets MB).
Chinese steel rebar 25mm US$532.6/t vs US$534.1/t
Thermal coal (1st year forward cif ARA) US$55.8/t vs US$54.7/t - China coal imports fall 20% in May
- China's coal imports fell last month compared with a year earlier, despite demand rising at power plants and from industrial users according to customs data.
- China imported 22.06mt of coal last month, compared with 30.95mt in April and 27.47mt in May 2019 (Reuters).
- The first five months of this year saw China import 148.71mt of coal, up 16.8% compared to the same period last year.
- Electricity consumption has been rising among industrial and residential users as firms ramp up production, however China are expected to tighten coal import rules to support domestic miners.
Coking coal futures Dalian Exchange US$110.0/t vs US$105.5/t
Other:
Cobalt LME 3m US$30,000/t vs US$30,000/t
NdPr Rare Earth Oxide (China) US$38,780/t vs US$38,753/t -
China rare earth exports falls 33.6% in May
- Rare earth exports fell to 2,865t in May, 33.6% lower compared to the month prior according to customs data.
- Total exports for the first five months of the year stood at 18,223t, down 5.4% from the same period last year (SMM News).
Lithium carbonate 99% (China) US$4,874/t vs US$4,871/t
Ferro Vanadium 80% FOB (China) US$29.5/kg vs US$29.5/kg
- Vanadium Pentoxide prices rose 8.4% in China last week to US$6.5-7/kgV2O5 (FastmarketsMB)
- Ferro Vanadium 78% fob China rose 3.5% to US$29.0/kg vs US$30.5/kg (FastmarketsMB)
- Ferro Vanadium 78% ddp Western Europe fell 0.2% to US$24.05/kg vs US$24.9/kg (FastmarketsMB)
Antimony Trioxide 99.5% EU (China) US$5.1/kg vs US$5.1/kg
Tungsten APT European US$215-225/mtu vs US$215-225/mtu
Graphite flake 94% C, -100 mesh, fob China US$460/t vs US$485/t
Graphite spherical 99.95% C, 15 microns, fob China US$2,350/t vs US$2,350/t
Battery News
CATL poised to produce the million-mile power pack
- Chinese EV battery maker CATL is ready to produce a battery with a 16yr lifespan that is capable of 1.24 million miles. (Bloomberg)
- The average warranty on an EV battery is 150,000 miles/8yrs.
- Battery capacity and replacement are key factors in improving EV vehicle take-up.
- CATL recently struck a deal with Tesla to begin producing batteries for the Californian EV makers Model 3 sedans and is set to make 70% of batteries required by BMW.
- The million-mile battery is touted to be used in Tesla’s Model 3 vehicles.
Consortium to develop zero-emission inland waterway shipping in the Netherlands
- A group of companies including Wartsila, ING Bank, Engie and the Port of Rotterdam Authority have formed a new Consortium: Zero Emissions Services, targeting zero emissions inland waterway shipping. (Inside EVs)
- The plan is a fully electric barge equipped with replaceable batteries that can be swapped out on route. Each ZES Pack will have a range of 50-100km and a capacity of 2MWh.
- The ZES Pack is expected to be guaranteed for 10yrs. Once capacity is reduced by 20% the container will be used for energy storage.
- The project will initially be used on the Zoeterwoude-Alpherium-Moerdijk corridor and the Heineken beer company will be the first to utilize the packs.
- The limitation is the requirement to have a network of stations on route to pay for the costs of the system
Company News
BlueRock Diamonds* (BRD LN) – 60.5p, Mkt cap £2.8m – Sale of $700,000 of diamonds
- BlueRock Diamonds reports that it has sold 2400 carats of diamonds at an average price of US$290/carat realising US$700,000.
- Executive Chairman, Mike Houston clarified that the private sale did not ʺcontain any notable high value diamonds and therefore the price achieved is approximately 15% below what we would have expected to achieve for this parcel pre the Covid-19 pandemicʺ.
- Mr. Houston expressed the hope that the sale at US$290/carat ʺrepresents the bottom of the marketʺ and explained that ʺthe Group is cash flow positive. Following receipt of the sale proceeds the Group's cash balance will be c£1.1 million and there is a further £268,000 to be received in August 2020 from the Teichmann Group in accordance with the terms of the placing in February 2020.ʺ
- BlueRock Diamonds anticipates that ʺthe first sale of Kareevlei diamonds in Antwerp will be in September with June to August production pre financed monthly at 70% of value by Delgatto Diamond Finance Fund LP in accordance with our non-binding letter of intent."
Conclusion: The private sale of $700,000 of diamonds excludes any high value individual diamonds resulting in an average price of US$290/carat which the company hopes may be the bottom of the market. The company expects to be able to sell through its pre-announced Antwerp sales channel in September.
*SP Angel act as Nomad and Broker to BlueRock Diamonds
Edenville Energy* (EDL LN) 0.045p, Mkt Cap £3m – Contract and sales agreement, Rukwa operations update and a £0.5m placing
- The Company entered into a Coal Mining Agreement with Infrastructure and Logistics Tanzania Limited following a series of negotiations that began last year and were first announced on 29 November 2019.
- The ILTL will be paid for contract mining at fixed rate and additionally (subject to further discussion) to potentially purchase 3kt of washed coal per month at standard market rates before increasing it to 5kt over a 12 month period.
- The agreement is valid for four years and will be automatically renewed another four, unless terminated by either party.
- The agreement also envisages ILTL to potentially provide a $1m loan to Edenville with the Company to provide further updates on that separately should it be finalised.
- Rukwa coal mining operations are currently suspended due to government pandemic related restrictions.
- The Company raised £0.5m issuing 1.25bn shares at 0.04p to cover working capital needs after production ramp up has been delayed by the rainy season and later by the pandemic as well as cover some of outstanding liabilities.
- Following the completion of the placing the Company will have £375k in cash.
- The Company is confidence that the aforementioned cash together with the potential ILTL $1m loan will be sufficient to bring Rukwa towards the cashflow positive status.
Europa Metals Limited (EUZ LN) 0.02 pence, Mkt Cap £3.3m – Application to renew investigation permit for the Toral zinc, lead, silver project in Spain
- Europa Metals reports that it has submitted an application to the Junta de Castilla y Leon to renew the investigation permit at its wholly owned Toral lead/zinc and silver project in Spain.
- The company explains that its initial investigation permit, granted in 2017, is due to expire in November 2020 and hence we interpret the application as a routine renewal which is likely to be uncontroversial. During the current permit period, Europa Metals has completed mineral resource estimation and scoping study work as well as ʺhydrogeological analysis, geotechnical studies, environmental monitoring, social engagement and initial metallurgical test workʺ.
- The company confirms that work is continuing, both by its own staff and its consultants, Wardell Armstrong, with results from the current metallurgical test programme expected over the summer and that ʺto date, no employee has contracted COVID-19ʺ.
Conclusion: The renewal application for its Toral project investigation permit is underway ahead of the expiry of the current permit in November. Work continues and further metallurgical test results are expected in the coming months.
Hummingbird Resources (HUM LN) 26p, Mkt Cap £91m – Acquisition of the Kouroussa gold project in Guinea
- The Company signed a binding heads of terms agreement with Cassidy Gold for the acquisition of the Kouroussa Gold Project, Guinea.
- Hummingbird will pay £10m worth in shares (35.2m at 28.4p equivalent to 9.1% of the enlarged share capital) with a deferred consideration (cash) of £10/oz of gold reserve published in excess of 400koz (up to a maximum of 1moz).
- Additionally, Cassidy will retain a 2% NSR on all gold sales above the first 200koz of its production and up to a maximum of 2.2moz.
- The deal is conditional on satisfaction of various conditions including completion and the issue of the mining permit for areas currently under exploration permits.
- The Kouroussa Project is a Birimian-style mineralised deposit located in the South West corner of the Siguiri basin, 570km east of the capital Canakry and 170km west of the Mali’s capital Bamako.
- The project hosts 1.18moz at 3.08g/t in mineral resources comprised of 0.63moz at 3.36g/t in the Indicated category and 0.55moz at 2.82g/t in the Inferred resource over three main deposits including Koekoe, Kinkine and Bag Farm Junction and X-Vein.
- A number of near surface targets and deeper extensions (>300m) have not been drill tested by Cassidy due to limited availability of capital and as such the team believes there is significant potential to increase the resource base.
- Preliminary Hummingbird estimates envisage a 1mtpa conventional CIL operation treating 4.1mt of ore at an average grade of 3.86g/t and metallurgical recoveries of 93.7% over an initial 4.25y LoM.
- Processing of marginal ore from stockpiles can extend the LoM beyond 5 years.
- Open pit mining from the KoKoe deposit is expected to provide 5.66mt of ore at 3.01g/t with a strip rtio of 12:1 to be carried by contract mining.
- A capital development cost of c.$90m with the Company having signed a letter of intent with Coris Bank International for $100m for the development funding subject to due diligence and credit committee approval.
- The Company is planning to carry additional technical development prior to committing to the mine and process plant construction.
Conclusion: The Company is acquiring the Kouroussa Gold Project in Guinea aiming to establish a multi-asset production base diversified over two jurisdictions potentially adding 100kozpa at $800/oz in AISCs. The Company is planning to complete more technical work to de-risk the project sufficiently before the construction decision and development funding commitment.
Trans-Siberian Gold (TSG LN) 82p, Mkt Cap £72m – Final dividend announced on record sales year
- The Company posted record annual sales of $63.1m (2018: $59.8m) led by higher realised gold prices of $1,399/oz (2018: $1,265/oz).
- Gold production totalled 43.7koz (2018: 46.1koz).
- EBITDA came in at $26.4m (2018: $23.9m).
- C1 and AISCs averaged $513/oz and $941/oz (2018: $516/oz and $1,049/oz) during the period.
- PAT was $12.6m (2018: $17.0m).
- The Company generated $9.0m in FCF (post interest) after accounting for $10.0m in capex and $5.6m in tax payments (2018: $8.6m FCF).
- The team reports limited impact of COVID-19 on operations so far this year with production continuing uninterrupted.
- The Company proposed a final dividend of $0.023 per share equivalent to $2m taking the total payout for the year to $4m (2018: $7.7m).
- FY20 gold production reiterated at 38-42koz with output skewed towards H2 when mining in the higher grade East Zone of the Asacha Gold Mine commences.
- 2020 development plans include exploration drilling at the Asacha Gold Mine to extend its life of mine with mining operations to be launched in the East Zone later in the year as well as to continue de-risk organic growth Rodnikova development project including more evaluation work and the scoping study.
Analysts
John Meyer – 0203 470 0490
Simon Beardsmore – 0203 470 0484
Sergey Raevskiy – 0203 470 0474
Sales
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
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 |
DISCLAIMER
This note is a marketing communication and comprises non-independent research. This means it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.
This note is intended only for distribution to Professional Clients and Eligible Counterparties as defined under the rules of the Financial Conduct Authority and is not directed at Retail Clients.
This note is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose.
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.
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%