SP Angel . Morning View . Monday 16.02.26

MiFID II exempt information – see disclaimer below

Landore Resources (LND LN)  – Disposal of Ontario project completed

Mkango Resources* (MKA LN)  – MKAR deal update and management changes

Rome Resource (RMR LN)  – Further drilling results from Bisie North, DRC

Tungsten West (TUN LN)  – Agreements for equipment supply and services for Hemerdon restart

VOX video:  The most extraordinary week in commodities I've ever witnessed

• Podcast:  The Vox Markets Podcast

IG TV – Commodity Markets Weekly: https://youtu.be/-YKK0NzMLZ0?si=i-83_jtBI8u5bM86

We are now in a new commodities cycle: on VOX: https://www.voxmarkets.com/articles/we-are-now-in-a-new-commodities-cycle-says-sp-angel-s-john-meyer-277006a

• Podcast: The Vox Markets Podcast / Mining Matters: We are now in a new commodities cycle, says SP Angel's John Meyer

Worth reading - Mineral War: China’s Quest for Weapons of Mineral Destruction by Tomasz Nadrowski

• https://www.amazon.co.uk/Mineral-War-Chinas-Weapons-Destruction/dp/B0GHDYRLZK

Currencies

US$1.1863/eur vs 1.1859/eur previous. Yen 153.37/$ vs 153.53/$. SAr 15.905/$ vs 16.013/$. $1.365/gbp vs $1.362/gbp. 0.709/aud vs 0.707/aud. CNY 6.905/$ vs 6.912/$.

Dollar Index 96.96 vs 97.05 previous.

Economics

US – US stock markets are closed this Monday 16th February for Presidents Day, which is observed as a federal holiday. 

• Friday saw headline CPI coming in lower than expected with the monthly measure at 0.2%, the lowest since last July.
• Core measure picked up 0.1pp, in line with forecasts.
• Softer inflation numbers helped gold prices that are consolidating over the $5,000/oz mark.
• 10y yields pulled back with markets pricing in a 50% chance for a three rate cuts by December this year.
• CPI (%mom, Jan / Dec / Est): 0.2 / 0.3 / 0.3
• Core CPI (%mom, Jan / Dec / Est): 0.3 / 0.2 / 0.3
• CPI (%yoy, Jan / Dec / Est): 2.4 / 2.7 / 2.5
• Core CPI (%yoy, Jan / Dec / Est): 2.5 / 2.6 / 2.5

The Pentagon added some of the China’s largest companies to a list of firms aiding military including Alibaba, BYD, Baidu and TP-Link Technologies.

• The list first published in 2021 now includes more than130 names including airlines, computer hardware manufacturers as well as firms in construction, shipping and communications.

China – Markets are closed for the week as the nation celebrates the Lunar New Year holiday.

Japan – The economy reported weak growth n 4Q25 following a deep contraction and as PM Takaichi plans more spending.

• Only modest growth across the board with flat contribution from net exports.
• Private spending (+0.1%qoq v 0.1% est).
• Business investment (+0.2%qoq v 0.6% est)
• GDP (%qoq SA annualised, 4Q / 3Q / Est): 0.2 / -2.6 (revised from -2.3) / 1.6

UK – House prices were little changed at ~£368k this month as the number of homes for ales hit an 11-year high, Rightmove data showed.

• Lower borrowing costs are expected to provide some tailwind to the demand.
• 2y fixed mortgage rates are down to 4.28% on average, compared to 4.96% a year ago.

Precious metals:         

Gold US$5,007/oz vs US$4,983/oz previous

   Gold ETFs 100.1moz vs 100.0moz previous

Platinum US$2,047/oz vs US$2,039/oz previous

Palladium US$1,687/oz vs US$1,663/oz previous

Silver US$77.1/oz vs US$79.0/oz previous

   Silver ETFs 840.1moz vs 842.1moz previous

Rhodium US$10,750/oz vs US$10,750/oz previous

Base metals:   

Copper US$12,894/t vs US$12,860/t previous

Aluminium US$3,084/t vs US$3,053/t previous

Nickel US$17,000/t vs US$17,095/t previous

Zinc US$3,324/t vs US$3,336/t previous

Lead US$1,956/t vs US$1,968/t previous

Tin US$45,375/t vs US$47,630/t previous

Energy:           

Oil US$67.6/bbl vs US$67.4/bbl previous

• The US Baker Hughes rig count was flat at 551 units last week (-37 or -6% y/y), with oil rigs down 3 to 409 units (-72 y/y) and gas rigs up 3 to 133 units (+32 y/y), with the Haynesville Basin adding 2 rigs w/w to 52 units (+22 y/y) and Texas losing 3 to 229 units (-51 y/y).
• France's Senate has voted to reverse a ban on new oil and gas exploration licences in its overseas territories, including offshore French Guiana, with the bill now moving to the lower house for review.

Natural Gas €30.7/MWh vs €32.5/MWh previous

Uranium Futures $88.3/lb vs $89.0/lb previous

Bulk:   

Iron Ore 62% Fe Spot (Singapore) US$96.6/t vs US$97.0/t

Chinese steel rebar 25mm US$466.1/t vs US$465.7/t

HCC FOB Australia US$247.0/t vs US$245.0/t

Thermal coal swap Australia FOB US$119.5/t vs US$118.0/t

Other:  

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

NdPr Rare Earth Oxide (China) US$123,103/t vs US$122,982/t

Lithium carbonate 99% (China) US$19,479/t vs US$19,460/t

China Spodumene Li2O 6%min CIF US$1,900/t vs US$1,900/t

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

China Tungsten APT 88.5% FOB US$1,648/mtu vs US$1,648/mtu

China Tantalum Concentrate 30% CIF US$131/lb vs US$131/mtu

China Graphite Flake -194 FOB US$415/t vs US$415/t

Europe Vanadium Pentoxide 98% US$5.5/lb vs US$5.5/lb

Europe Ferro-Vanadium 80% US$26.3/kg vs US$26.3/kg

China Ilmenite Concentrate TiO2 US$261/t vs US$261/t

US Titanium Dioxide TiO2 >98% US$2,959/t vs US$2,908/t

China Rutile Concentrate 95% TiO2 US$1,137/t vs US$1,136/t

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

Brazil Potash CFR Granular Spot US$372.5/t vs US$372.5/t

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

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

EV & battery news

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Company News:

Landore Resources (LND LN) 2.7p, Mkt Cap £9.7m – Disposal of Ontario project completed

• Landore Resources confirms receipt of the final cash payment of ~C$1.3m due for the sale of its Miminiska Project, located in northwestern Ontario to TSXV-listed European Electric Metals.
• CEO, Alexander Shaw said that the payment of the final tranche of the ~C$5.8m in cash and shares completes the “divestment of the group's Miminiska Project”.
• He said that “The receipt of the final tranche payment from Storm further bolsters our cash position as we look to build on the recent Mineral Resource Estimate (MRE) completed at our flagship BAM Gold Project and invest in further exploration and development works”.

Mkango Resources* (MKA LN) 54p, Mkt Cap £190m – MKAR deal update and management changes

BUY

• The Company submitted a draft registration statement on Form-4 to the US SEC as part of the deal to spin out its upstream/midstream business unit.
• The unit is represented by interests in the Songwe Hill REE Project in Malawi and the proposed Pulawy Separation Facility in Poland.
• The submission of the registration is an important milestone toward completion of the deal and a subsequent Nasdaq listing of Mkango Rare Earths (MKAR), the holding Company for Songwe Hill and Pulawy.
• The registration to be reviewed by the SEC before details are made public.
• The deal deadline has been moved from March 11 to September 30 with an automatic extension to December 31 2026 should the SEC delay the registration.
• The deal is currently expected to close 2Q26.
• The proposed deal value reiterated at US$400m for MKAR (excl any debt and cash held in MKAR or any expenses).
• On closing assumptions, Mkango is expected to own ~37.6m MKAR shares (majority stake), while CPTK shareholders would hold ~7.1m shares, with potential additional dilution from any concurrent fundraising.
• MKAR has ~US$22.5m intercompany debt owed to Mkango, which could convert into ~2.25m additional MKAR shares (decision pending).
• Completion is targeted for Q2 2026, subject to SEC review, Nasdaq approval, CPTK (SPAC) shareholder approval, and minimum cash condition (US$5m net cash at close).
• Separately, the Company reported last week Robert Sewell (CFO) to be replaced by Tim Slater with immediate effect.
• Tim Slater was an Interim CFO at Mkango between January 2020 and June 2022.
• Tim is a Chartered Accountant with over 15 years’ experience in the mining sector.

Conclusion: Form F-4 submission marks a key milestone toward the proposed Nasdaq listing of MKAR via the CPTK business combination. While the timeline has been extended to late-2026 to accommodate SEC review and restructuring steps, the implied US$400m pro forma valuation highlights the potential re-rating opportunity if the transaction completes, with proceeds expected to support development of Songwe Hill and the Pulawy separation plant.

*SP Angel acts as nomad and broker to Mkango Resources

Rome Resource (RMR LN) 0.26p, Mkt Cap £18m – Further drilling results from Bisie North, DRC

• Rome Resources has published further drilling results from its Kalayi tin prospect in its Bisie North project in the DRC.
• The drilling follows recently released results from holes KBD-021 and 023 and the initial mineral resource estimate (MRE), issued in October 2025, which shows 3.16mt at an average grade of 1.45% copper, 0.19% tin, 2.72% zinc &14.3g/t silver at Mont Agoma plus an additional 0.33m inferred tonnes at an average grade of 1.36% tin at Kalayi.
• Results announced today confirm “the persistence of high-grade tin mineralisation at depth below the maiden MRE, with multiple significant multi-metre high-grade intervals intersected” including:
  • A 3m wide interval at a grade of 2.64% tin from 116m depth in hole KBD-024; and
  • An 11m wide interval averaging 3.43% tin from 65m in hope KBD-025 which Includes a 6m wide interval at a grade of 5.14% tin from 65m depth; and
  • A single metre at a grade of 1% tin from 30m depth in hole KBD-026 which also intersected 6m at an average grade of 0.6% tin from 35m; and
  • 4m at an average grade of 7.50% tin from a depth of 75m in hole KBD-027.
• The announcement clarifies that “Several recent intercepts at Kalayi fall within the reported thickness range of the Mpama North Main Vein and include multi-metre intervals grades above 3% tin, with high-grade zones exceeding 5% tin”.
• Rome Resources describes the “continued intersection of such grades in the deeper drillholes … [as supporting its] … structural interpretation and reinforces confidence that high-grade tin mineralisation persists at depth below the maiden MRE”.
• CEO, Paul Barrett, said that “Kalayi lies within the same regional structural corridor as the Mpama North Mine operated by Alphamin, approximately 8km to the south.  While it remains early in our evaluation, the widths and grades encountered to date support the strength of this geological analogy and reinforce our confidence in the system we are defining”.
• Mr. Barrett said that “In parallel, our advanced geological modelling work at Mont Agoma is refining our next phase of drill targeting, and we expect to provide a further update on this work shortly”
• He confirmed an “anticipated resource update in the coming months”.

Conclusion: Recent drilling results from Bisie North continue to confirm Rome Resources’ exploration model and show mineralisation extending at depth beneath the existing mineral resource.

Tungsten West (TUN LN) 27.5p, Mkt Cap £246m – Agreements for equipment supply and services for Hemerdon restart

• Tungsten West, which recently raised additional funds to advance the resumption of tungsten production at the Hemerdon mine in Devon, reports agreements with suppliers for key equipment for the restart.
• These include a “new primary jaw crusher and secondary cone crusher to replace the pre-existing legacy hybrid rolls crushers at site, offering greater reliability, efficiency, improved crushing performance and better compliance with environmental regulations”.
• New equipment also includes “An ore sorting facility utilising advanced particle scanning to separate recoverable, higher quality material from waste rock, reducing the amount of material … to be processed … by around 70%”.
• In addition, the equipment supply agreements include the supply of on-line-pressure-jigs by the supplier, Gekko Systems, “to further upgrade the coarse particles feed material, further reducing the amount of coarse material needed to be processed … by a further 75%”.
• Today’s announcement confirms that “All fines material (<0.8mm) and significantly upgraded coarse material (0.8mm to 7mm) will then be processed in the pre-existing MPF… (Mineral Processing Facility) … which is currently undergoing a refurbishment programme to produce saleable tungsten and tin concentrate”.
• We surmise that the capacity to upgrade feed will benefit both operating costs, which are already expected to fall in the world’ lowest cost quartile at ~US$144/mtu (metric tonne unit) and also possibly lift overall annual output which is currently expected at around 330,000mtu per year over a 40-year mine life.

·         In a market dominated by China and where the next two largest producers are Vietnam and Russia, Hemerdon is one of the western world’s larger tungsten deposits giving it a strategic significance as a non-Chinese source of tungsten supply.

• Tungsten is recognised as a ‘Critical Mineral’ in jurisdictions including the EU, UK, US, Australia, and Japan and we believe that the resumption of long-term production at one of the western world’s larger deposits should be welcomed by western-world consumers.
• CEO, Jeff Court, welcomed the participation of Gekko and the Duo Group, which will “deliver the EPC  works package for the new crushing, screening and ore sorter facility at Hemerdon”, and said that the “supply agreements will ensure that we have all the major processing additions in place to implement the improvement plan at the MPF”.

Conclusion: Tungsten West has secured formal agreements with equipment suppliers as it advances towards a resumption of tungsten production at Hemerdon. 

LSE Group Starmine awards for Reuters Polls 2025 / 2024 commodity forecasting:

No1 for Precious Metals: CY 2025

No.1 in Precious Metals: Q1 2025

No.1 in Precious Metals: CY 2024

No.2 in Base Metals: CY 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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