SP Angel . Morning View . Wednesday 29.04.26

MiFID II exempt information – see disclaimer below

SP Angel - No.1 for Precious Metals: LSEG StarMine Award for Most Accurate Forecasting in Reuters Polls Q1 2026

CMOC (603993 SHA) – CMOC signs $1.7bn deal to develop the Los Cangrejos copper project in Ecuador

Critical Mineral Resources (CMR LN)  – Drilling results from Agadir Melloul, Morocco

Galantas Gold* (GAL LN)  – Update on Andacollo acquisition and positive permitting news

GreenRoc Strategic Materials Plc  (GROC LN) – Graphite anode mill circuit commissioned for AAM pilot plant

Liontown (LTR AU)  – Kathleen Valley expansion early works launched ahead of FID 1QFY27

Mkango Resources* (MKA LN)  – Pforzheim opening: key takeaways

Orosur Mining* (OMI LN)  – Quarterly report highlights Colombian exploration

First Quantum (FM CN)  – Results impacted by hedging as Cobre Panama stockpiling supports production upgrade

Rare Earths Americas (Private) launched the roadshow for the US IPO with a targeted valuation of up to ~$370m. (Reuters)

Shuka Minerals (SKA LN)  – Phase 1 drilling at Kabwe, Zambia

Sovereign Metals* (SVML LN)  – Quarterly report highlights critical REE analysis, DFS results, upgraded MRE and offtake with Mitsui and Traxys

Copper ($13,091/t) rises as Chinese buyers add to inventories and higher aluminium prices offset substitution

• Copper prices bounced back from one-week lows yesterday, having fallen below $13,000/t yesterday on a wider metals sell-off.
• The metal is up 7.8% over the past month, as traders look to sulphuric acid disruption impacting SX-EW operations globally (c.20% of global copper production).
• Bloomberg reports Chinese fabricators are restocking ahead of Friday’s Labour Day holiday.
• We are seeing an important trend emerging in copper, with Chinese downstream users continuing to restock when copper slips back.
• Higher aluminium costs, with LME prices rising over $3,500/t, reduce appetite for substitution for copper users, supporting prices.
• Positive momentum is building in the embattled Chinese property sector, with property firm bond issuance up 21%yoy in March.
• Home sales from Alibaba’s property platform rose 24%yoy in March to 33k units, the highest over the month in three years.

Nickel ($19,460/t) prices near two-year highs as Indonesian operations shutter on sulphur shortages

• Nickel prices have rallied this year, up 27% over the past six months.
• The metal has suffered over the past three years on major production increases from Indonesia.
• However, Indonesian operations are currently under pressure amid cost pressures from sulphuric acid shortages.
• Indonesia has also cut mining quotas for nickel miners to 260–270mt vs 379m wmt in 2025.
• Chinese nickel major Zhejiang, which operates the world’s largest nickel laterite project Huafei has guided production cuts.
• The Huafei project in Weda Bay is set to reduce production by 50% on volatile sulphur prices.
• Sulphur is a key input for high-pressure acid leaching, which unlocked large-scale production from Indonesian laterite operations.
• CRU estimates Huafei accounts for 3% of global nickel supply.
• Zheijiang is exploring sulphur supply alternatives to minimise cost pressures.
• Norilsk’s Q1 production remains unchanged at ~42,000t
• Demand: looks good with strong demand for stainless steel seen in China and SHFE Stainless futures rising +15% so far this year

Gold ($4,575/oz) prices remain under pressure as peace talks falter and dollar firms

• Gold prices have suffered a $300/oz decline since Trump announced a positive ceasefire breakthrough on Friday 17th April.
• Talks subsequently broke down, with tensions in the Strait of Hormuz mounting.
• Gold is selling off on concerns over an extended conflict in the Middle East.
• This may reflect concerns over inflation, which have been feeding into higher US Treasury yields, in turn lifting the dollar.
• The dollar’s weakness through 2025 provided a supportive tailwind for gold’s rally to highs of $5,500/oz.
• A combination of profit taking on the Iran War and forced selling by holders such as Turkey has added pressure to gold.
• However, for us, the key themes remain intact, namely: BRIC central bank buying, led by China, and ballooning fiscal deficits adding pressure to fiat currencies.
• The first was reflected in 1Q26, with central banks taking advantage of weaker prices by adding gold at the fasted pace in over a year.
• The WGC reports buying was driven primarily by Poland, Uzbekistan, and China.
• Selling was driven by Turkey, Russia, and Azerbaijan, with the latter required to bring holdings back to permitted limits.

NorthMet polymetallic / nickel project - President Trump overturns long-standing Minnesota mining ban

• The industry website mining.com reports that President Trump has reversed a long-standing ban on mining and geothermal energy covering “more than 225,000 acres of national forest land in northeastern Minnesota”.
• The President signed Congressional Bill HJ Res.140 following a narrow 50-49 vote in the Senate on 16th April which reversed the 20-year moratorium on mining.
• The area hosts known mineral deposits including the Twin Metals copper/cobalt/nickel project

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



Currencies

US$1.1707/eur vs 1.1696/eur previous. Yen 159.67/$ vs 159.41/$. SAr 16.558/$ vs 16.601/$. $1.351/gbp vs $1.351/gbp. 0.716/aud vs 0.717/aud. CNY 6.831/$ vs 6.834/$.

Dollar Index 98.68 vs 98.63 previous.

Economics

UAE exits OPEC – UAE to withdraw from OPEC and OPEC+ starting 1st May

• This is more about what happens after the Strait of Hormuz opens as the move allows the UAE to pump more oil independently.
• This follows the exit of Qatar in 2019.
• UAE asking Pakistan to payback a US$3.5bn loan made to it in conjunction with a US$ IMF loan for not giving full support to the Sunni Gulf nations.

Saudi Arabia - Aramco will suspend gas shipments next month due to damage to its main export facilities (Bloomberg).

China – Signals policy support for jobs, energy and technology as Iran blockade threatens energy security

• Strong Q1 puts China at the upper end of its 5% GDP target.
• Higher oil prices to likely slow some parts of the economy – this will accelerate the move to sell more EVs
• Anti involution policies to reduce excessive competition appear to be working with strong margins reported for manufacturers
• Strong support for renewable energy given higher oil prices and disruption in the Strait of Hormuz

EU - Ursula von der Leyen set to change the EU Unanimity laws

• "To act faster, the EU is forced to abandon the principle of unanimity."
• Ursula von der Leyen, President of the European Commission, is pushing to abolish EU unanimity voting in key areas like foreign policy and security.
• The idea is to disallow single-member vetoes which have held back aid to Ukraine by governments which are suspected of following Russian instructions.
• Ursula von der Leyen reckons the unanimity trap is bad for the EU and has proposed a shift towards QMV ‘Qualified Majority Voting’ to accelerate decision-making.

Iran – IRGC are reported to have strengthened their power grip after the US took out Ayatollah Ali Khamenei who was previously considered undisputed clerical arbiter. (Reuters)

• His wounded son Mojtaba Khamainei is said to have a largely weaker position and acts to legitimise decisions taken by IRGC generals.

US Blockade of Strait of Hormuz looks set to continue

• Trump has decided to continue a long-term blockade on Iran instead of escalating military action or ending the conflict (WSJ).
• US reckons Iranian negotiators lack authority on nuclear concessions and is not authorized by Supreme Leader Mojtaba Khamenei or senior IRGC commanders to agree to nuclear concessions.
• Iran expected to present revised proposal to mediators in Pakistan in next few days, though we do not expect much movement in their position.
• Petrol shortages expected in Iran with oil production and pumping close to collapse.
• Tehran threatens submarine cables in the Strait of Hormuz. The internet is designed to reroute data by any possible means but severed cables will reduce capacity to India and parts of Asia. Starlink may become even more popular if internet speeds throttle back !
• US Marines boarded M/V Blue Star III, a commercial ship which looked like it was destined for Iran in violation of the US in the Arabian Sea. The ship has since been released.

Lebanon - Israel’s IDF to deploy radar systems within Lebanon

• We suspect this is for early warning and detection of missile launches

Precious metals:

Gold US$4,572/oz vs US$4,630/oz previous

   Gold ETFs 98.8moz vs 98.9moz previous

Platinum US$1,936/oz vs US$1,954/oz previous

Palladium US$1,457/oz vs US$1,455/oz previous

Silver US$73.2/oz vs US$73.3/oz previous

   Silver ETFs 793.9moz vs 793.7moz previous

Rhodium US$10,000/oz vs US$10,000/oz previous

Base metals:   

Copper US$13,101/t vs US$13,196/t previous

Aluminium US$3,544/t vs US$3,558/t previous

Nickel US$19,500/t vs US$19,295/t previous

Zinc US$3,364/t vs US$3,373/t previous

Lead US$1,959/t vs US$1,956/t previous

Tin US$49,885/t vs US$49,190/t previous

Energy:

Oil US$112.9/bbl vs US$111.3/bbl previous

·        Crude oil prices rose as concerns that President Trump will strengthen the US blockade and prolong the effective closure of the Strait of Hormuz, with the API estimating US inventory w/w draws of 1.8mb to crude oil (+0.3m expected), 8.5mb to gasoline and 2.6mb to distillate stocks, as well as a 0.8mb inventory decline at Cushing.

·        The United Arab Emirates plans to exit from membership of both OPEC and OPEC+ in May, citing its need for more flexibility in adjusting output for market conditions. The UAE was estimated to have an idle capacity of 660kb/d in February before the Strait of Hormuz blockade fur to OPEC quotas, with plans to boost production capacity to 5mb/d.

·        European energy prices remain broadly flat and below oil-equivalent prices, as France's average nuclear generation fell 3% w/w to 67% of the country’s 61.4GW maximum capacity.

Natural Gas €44.3/MWh vs €45.2/MWh previous

Uranium Futures $86.6/lb vs $86.6/lb previous

Bulk:

Iron Ore 62% Fe Spot (Singapore) US$107.0/t vs US$106.3/t

Chinese steel rebar 25mm US$473.4/t vs US$472.9/t

HCC FOB Australia US$232.0/t vs US$232.0/t

Thermal coal swap Australia FOB US$134.8/t vs US$134.3/t

Other:  

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

NdPr Rare Earth Oxide (China) US$111,985/t vs US$111,942/t

Lithium carbonate 99% (China) US$24,812/t vs US$24,656/t

China Spodumene Li2O 6%min CIF US$2,450/t vs US$2,450/t

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

China Tungsten APT 88.5% FOB US$2,343/mtu vs US$2,393/mtu

China Tantalum Concentrate 30% CIF US$198/lb vs US$203/mtu

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

Europe Vanadium Pentoxide 98% US$5.8/lb vs US$5.8/lb

Europe Ferro-Vanadium 80% US$28.6/kg vs US$28.6/kg

China Ilmenite Concentrate TiO2 US$250/t vs US$249/t

US Titanium Dioxide TiO2 >98% US$2,799/t vs US$2,799/t

China Rutile Concentrate 95% TiO2 US$1,149/t vs US$1,149/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$3,275.0/kg vs US$3,225.0/kg

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

EV & Battery news

Chinese automakers to bring chip manufacturing in house 

• One theme that has been seen at Beijing Auto Show is the number of automakers and supply chain vendors who are displaying in-car chips.
• Automakers have been developing chips to power autonomous driving and premium in-car features, to streamline production and reduce dependence on Nvidia.
• NIO have developed their own silicon that better caters to the company's algorithms and sensor layout, according to CEO, William Li.
• In an interview with Reuters, Li said that Nvidia's automotive chips have "very high gross margins," and that by developing its own chips Nio would lift its overall profit, despite the high upfront costs.
• Lidar developer Hesai are another company moving chip development in house.
• “If we use chips provided by third-party suppliers, we cannot guarantee that the chips would cater to our needs in developing lidar sensors,” said David Li Yifan, CEO of Hesai, the world’s largest maker of lidar sensors for cars, at a media briefing last week. “We want to design and make the chips ourselves because no one else specifically develops chips for a lidar maker.”



Company news

CMOC (603993 SHA) CNY19.2, Mkt cap CNY394bn – CMOC signs $1.7bn deal to develop the Los Cangrejos copper project in Ecuador

• The government of Ecuador has signed a $1.7bn mining contract with CMOC Group on the Los Cangrejos gold project.
• The deal:
  • Ecuador to retain a 50% share of the ‘project’s total value.’
  • Initial US$34m on signing part of $54m in upfront royalties linked to milestones to offset execution risks from community disputes and regulatory delays.
  • Total US$1.7bn in projected investment
• CMOC acquisition price: US$420m - Lumina Gold takeover in 2025
  • Throughput: 30,000tpd in Year 1 rsing to 60,000tpd in Year 4, and 80,000tpd by year 7
  • Gold production: 371,000ozpa.
  • Copper production: 18,600tpa – 2023 FS
  • Total projected state revenue US$4.4bn
  • Probable reserves estimated at 11.6moz of gold
  • Life of mine: 26 years est.
• While the government appears to be onboard challenges remain in terms of community relations, permitting and the fiscal regime.
• We note Chinese companies often seem to come into conflict with local communities eg Monterrico Metal’s Rio Blanco copper project in Peru which remains on hold since its acquisition by Zijin Mining in 2007.

Critical Mineral Resources (CMR LN) 2.35p, Mkt Cap £8.0m – Drilling results from Agadir Melloul, Morocco

• Critical Mineral Resources reports initial results from its 2026 drilling at the Agadir Melloul copper/silver project in Morocco.
• The announcement says that the results “demonstrate consistent copper mineralisation including zones of excellent thickness and copper grade” as the company works towards an initial mineral resource estimate which is expected in September.
• Among the results highlighted in today’s announcement are:
  • A 5m wide intersection at an average grade of 1.20% copper, 0.77g/t gold and 1.4g/t silver from a depth of 24m in hole BH-100, including a 3m wide zone grading 1.64% copper, 1.16g/t gold and 1.85g/t silver from 25.1m depth; and
  • A 3.7m wide intersection averaging 1.76% copper and 8.6/t silver from a depth of 6.3m in hole BH-10; and
  • A 7m wide intersection at an average grade of 1.06% copper and 1.0g/t silver from a depth of 24m in hole BH-111, including 3m grading 1.49% copper and 1.0 g/t silver from 27m
• Today’s announcement says that “Sediment hosted mineralisation … [is] … being delineated rapidly … [and describes significant growth potential] … with less than 3% of the project area drilled”.
• “Management maintains its base case medium term exploration target of 25 million tonnes”.
• CEO, Charlies Long, said the “results continue to confirm a shallow, coherent copper system with widths and grades that are consistent with an open pit development scenario”.
• Mr. Long explained that some intersections were wider than expected and said that the immediate focus was to extend “these and other zones ahead of a maiden resource in Q3”.

Conclusion: Drilling work at Agadir Melloul in Morocco is aiming to delineate an initial MRE in Q3 2026.

Galantas Gold* (GAL LN) 36p, Mkt Cap £178m – Update on Andacollo acquisition and positive permitting news

• Galantas Gold reports a net loss of C$8.5m for the year ended December 31st 2025, (-C$1.5m 2024) and a closing cash balance of C$13.3m.
• Administrative expenses fell to C$4.3m in 2025 vs C$4.6m in 2024.
• Company reports a working capital surplus of C$8.1m vs a deficit of C$16.2m same period 2024.
• Through 2025, Galantas acquired the Indiana Project in Chile in exchange for the issuance of c.132m shares in GAL.
• Indiana is an underground copper-gold vein-hosted deposit with existing underground infrastructure and near-term production potential.
• In 2026, Galantas has entered an agreement to acquire the Andacollo Oro Gold Project in Chile for 91.3m shares to Luis Catril alongside staged payments amounting to $32m.
• Galantas expects to close the Andacollo transaction in 2Q26, which will enable a resumption of trading on the TSX.
• Chilean authorities approved the planned restart of Andacollo in March, reducing the timeline to production.

Conclusion: Galantas has repositioned itself as an exciting gold-copper development story in Chile, with Indiana and Andacollo marking two transformative transactions for the Company. Focus is currently on gaining approval for the Andacollo transaction from the TSX, which has been guided for 2Q26. Alongside regulatory approvals, additional catalysts for Galantas include a Technical Report for Andacollo and a PEA for Indiana, guided for 2Q26. To us, Galantas represents one of the most interesting gold development stories in London, with Andacollo offering the potential for >70kozpa gold production for minimal CAPEX, enabled by the well developed heap leach infrastructure on site. Indiana is a higher-grade underground opportunity and drilling is ongoing aimed at expanding and upgrading the current c.450koz AuEq MRE.

*SP Angel acts as Broker to Galantas Gold

GreenRoc Strategic Materials Plc (GROC LN) 5.12, Mkt cap 14.5m – Graphite anode mill circuit commissioned for AAM pilot plant

• GreenRoc report the construction and commissioning of the new graphite anode mill circuit for it’s AMM ‘Active Anode Materials’ pilot plant in Denmark.
• Management believe this is Europe's first natural flake graphite pilot plant.
• The 100kg per day circuit includes micronisation and spheronisation lines designed to produce spherical graphite for Active Anode Materials.
• GreenRoc are evaluating the AMM products within their in-house laboratory with additional Scanning Electron Microscopy imaging at the Technical University of Denmark.
• GreenRoc is working on the final design and equipment sourcing for the final purification line with installation due in the second half.
  • The micronising line mills the graphite flakes to ~ 20µm using a 60cm diameter mill
  • Spheronisation uses a 30cm shaping mill with air classifier, a secondary air classifier, a cyclone, and lastly a dust filter (see Figure 2).
  • Products: the main product is a D50 ~12-20µm and a finer-grained by-product with a D50 of 7-15µm.
• The team have already run a first 100kg graphite test using -195 (150µm ) graphite concentrate.
• The test is reported to be very successful with minor modifications to be made to help monitoring and safety.
• Further tests will then be run to for further calibrating and optimising of the controls.

Conclusion: GreenRoc now look well placed to aid the development of the EU battery industry through the production of AMM material for test purposes.

Liontown (LTR AU) A$2.4, Mkt Cap A$7.7bn – Kathleen Valley expansion early works launched ahead of FID 1QFY27

• The Company launches early works and long lead item procurement for the planned expansion at Kathleen Valley Lithium Mine, Australia.
• Expansion FID is targeted at the end of 1QFY27 (SepQ).
• Long lead item includes a 5.5MW ball mill that will cost A$12m expected to be expended over the next 12m lead time.
• Entire early works programme (incl drilling, mine services area construction, additional underground infrastructure, a third paste plant pump, expansion of project team among other things) expected to cost ~A$77m ahead of FID.
• The decision reflects management confidence in strong lithium market outlook.

Mkango Resources* (MKA LN) 44p, Mkt Cap £178m – Pforzheim opening: key takeaways

BUY

• HyProMag GmbH hosted an official opening of a commercial scale permanent recycling and manufacturing facility yesterday in Pforzheim, Germany.
• The plant uses a patented HPMS tech, developed at the University of Birmingham (~$100m in R&D spend and decades of research) to recover magnet material from end of life equipment.
• The opening drew representation from Pforzheim University, regional and federal government alike.
• Academic, governmental as well as private support for the facility (majority grant funded) highlights strategic recognition of the project as domestic critical infrastructure diversifying supply risks and developing local manufacturing expertise.
• The project is well positioned to contribute towards EU CRMA targets for 25% of EU demand sourced from recycling.
• The facility is expected to become a meaningful supplier of permanent magnets highlighting attractive nature of the recycling business model.
• Built on HPMS tech, the process is a lower capex, faster to production, lower execution risk (short loop effectively by passes most of REE processing flowsheet) and saleable option to unlock supply of NdFeB magnet material in the West.
• Capacity is fully permitted for production of up to 750tpa of NdFeB magnets and alloys.
• Production will start at a minimum initial capacity of ~100tpa NdFeB rising to ~350tpa.
• HyProMag GmbH is evaluating the potential to scale up the Pforzheim lines to 750tpa over the next three years.
• The team has done well having launched two sites (UK and Germany) and initiated a US JV with potential Asian partnerships in the pipeline, with near-term focus shifting to production ramp up and securing contract commitments.
• Mkango holds a ~71% interest in HyProMag GmbH through its interest in Maginito (79% MKA).

*SP Angel acts as nomad and broker to Mkango Resources

Orosur Mining* (OMI LN) 20p, Mkt Cap £80m – Quarterly report highlights Colombian exploration

• Orosur Mining reports a net loss of US$6.6m for the 3 months ended 28th February 2026 (2025 – loss of US$1.7m) and a closing cash balance of US$13.7m.
• The company reports the completion of its infill drilling programme at the Pepas property in Colombia which resulted in the definition of an initial mineral resource estimate of 219koz of gold.
• The Pepas resource consists of an ‘Indicated’ resource of 1.14mt at an average grade of 5.46g/t gold hosting ~201koz and an ‘Inferred’ resource of 190kt at an average grade of 2.99g/t adding a further 18koz.
• Today’s announcement also highlights the identification of “a second area of mineralization some 100 metres to the West of Pepas”.
• Also in Colombia, drilling started, post the end of the quarter, at the APTA area located south of Pepas, to “gain a better understanding of the geological controls ahead of a potential resource estimate later this year”.
• Further south, “geological mapping and sampling has been completed at El Cedro and the Company announced that new mapping and sampling had commenced post the period end at a new second porphyry identified to the south of El Cedro”.
• “In Argentina, the Company's first drilling program for a total of circa 4,400 metres had been completed by the end of March 2026 at the El Pantano project and results are awaited”.

Conclusion: After issuing an initial MRE for the Pepas deposit in Colombia in February, Orosur Mining is investigating additional mineralisation at APTA and El Cedro further to the south, with an MRE for APTA expected later this year.

*SP Angel acts as Nomad and Broker to Orosur Mining

First Quantum (FM CN) C$34, Mkt Cap C$28.5bn – Results impacted by hedging as Cobre Panama stockpiling supports production upgrade

• First Quantum reports 1Q26 results and updates 2026 guidance.
• Revenue for 1Q26 reported at $1.4bn, with EBITDA reported at $326m.
• Company reports results were impacted by lower sales volumes, a stronger Kwacha and hedge losses.
• The hedging impacts are expected to end after June 2026.
• The Company produced 96.5kt over the quarter, vs 100.4kt prior.
• Gold production fell to 35.3koz from 42koz.
• AISC per LB increased to $3.96/lb from $3.37/lb in 4Q25.
• FQM sold Cayeli in March 2026 for a cash consideration of $340m, with the sale of Las Cruces for $190m to RCF due to close in 2Q26.
• A Technical Report for Taca Taca was filed over the quarter, showing potential for a 40mtpa operation expanding to 60mtpa in year five, with Environmental and Social studies underway.
• FQM updates 2026 production guidance to:
  • Cu: 405-475kt (from 375-435kt)
  • Au: 150-175 (from 175-200)
• Updated production guidance reflects formal approval to begin processing stockpiled ore at Cobre Panama.
• Management notes sufficient diesel supply for two months of operations and expects to ‘avoid a disruption to production’  by managing supply. They note costs will rise in 2Q26 as a result.
• On sulphuric acid, FQM notes its operations are not dependent on imported elemental sulphur, with cathode production supported by the Kansanshi smelter, noting the potential for surplus sulphuric acid.

Rare Earths Americas (Private) launched the roadshow for the US IPO with a targeted valuation of up to ~$370m. (Reuters)

• The Company is raising ~$53m by issuing 2.8m shares priced between $17-19/sh.
• The Company hosts a portfolio of early and advanced rare earth exploration projects in Brazil and the US.
• In the US, the team is advancing the Shiloh REE Project located in Georgia.
• The team is focused on monazite mineralisation with historical exploration data including geophysics, mapping, trenching and drilling conducted between 2020-2025.
• Boulder assays returned up to 20% TREO with trenching intercepts of up to 31% TREO.
• Main projects in Brazil include:
• Alpha, an Ionic Adsorption Clay deposit (IAC), covering 36 licenses and >496km2 tenements in Bahia.
• SK-1300 MRE stands at ~202mt @1,520ppm TREO.
• Constellation, an IAC deposit, spanning ~60km2 of tenements in Minas Gerais.
• SK-1300 MRE estimated at ~266mt @2,637ppm TREO.
• Homer hosting a number of large carbonatite clusters mineralised REE and Nb.
• The project area covers >1.233km2 in Goias.
• Proceeds to be used for further exploration work at Shiloh (priority, $20m), Alpha ($4m), Constellation ($4m) and further evaluation of non-material exploration projects including Homer and Liberty Peak along with WC and other general expenses ($15m)

Shuka Minerals (SKA LN) 3.35p, Mkt Cap £4.2m – Phase 1 drilling at Kabwe, Zambia

• Shuka Minerals reports the appointment of a drilling contractor for a 2,000m, Phase 1, drilling programme at its Kabwe zinc project, located around 180km south of Ndola in Zambia.
• The initial programme is expected to start in mid-May and target “known mineralised zones around and beneath the previous workings at vertical depths ranging from 100-500m”.
• The results, in conjunction with additional exploration including “airborne and ground magnetics as well as surface sampling and mapping, will enable the Company to finalise the locations for the balance of the broader 10,000m Phase 2 programme and subsequent JORC resource and reserves upgrade later in 2026”.
• Today’s announcement explains that this will be “the first resource drilling being undertaken at Kabwe since the 1970s”.
• Kabwe currently hosts a 2023, NI-43-101 compliant, resource of 6.8mt at an average grade of 13.3% zinc and 3.3% lead and the “Company's objective for its 2026 exploration programme is to achieve a 50% increase to the existing resource”.
• CEO, Richard Lloyd, explained that the drilling programme “is designed to consolidate and upgrade the geological models and reserves/resource, as well as test some less defined areas and also generate a better understanding of the by-products … [including silver, vanadium, germanium and gallium] … found at Kabwe”.

Conclusion: Shuka Minerals is embarking on the first resource drilling programme at Kabwe since the 1970s in an attempt to expand the 6.8mt 2023 zinc/lead MRE by 50%.

Sovereign Metals* (SVML LN) 37.3p, Mkt Cap £246m – Quarterly report highlights critical REE analysis, DFS results, upgraded MRE and offtake with Mitsui and Traxys

(Sovereign currently holds 100% of the Kasiya project. Malawi has 10% free carry right. Rio Tinto holds 18.5% of Sovereign Metals)

• Sovereign Metals quarterly report shows:
• Cash and cash equivalents falling to 19.3m vs A$33.9m at end March
• Net cash used was -A$4.6m vs -A$25m in the previous 9 months
• Cash flows from operating activities
• Expenditures for:
  • Exploration & evaluation were -A$3.9m vs -A$23.3m over the previous 9 months
  • Staff costs -A$0.3m vs -A$1.3m
  • Administration and corporate costs -A$0.3m vs -A$1.1m
  • Interest received A$0.2m vs A$1.5m
  • Other - Business Development -A$0.3m vs -A$1.0m
• Rare Earths: The identification of monazite in the waste stream gives Sovereign another strategic mineral to separate and sell. Analysis confirms:
  • DyTb ratio of 2.9%
  • 11.9% Yttrium,
  • 21.8% NdPr ratio
• This indicates a particularly high-value monazite concentrate product with DyTb and Yttrium subject to Chinese export controls.
• The elements are particularly critical for radar, laser and other defence systems EV magnets and aerospace thermal barrier coatings.
• DFS Highlights:
  • 12mtpa for Stage 1 rising to 24mtpa in Stage 2 producing 22ktpa rutile and 275ktpa graphite
  • Capex (Stage 1): $727m and $1,239 for the Life of Mine. Sustaining capex:  $431m  
  • Operating costs: $450/t
  • Revenue: $728m and $16,210m for total LoM
  • EBITDA: $476m
  • NPV@8: $2,204m
  • IRR: 23%

Assumptions:

• Rutile pricing: US$1,670/t vs US$1,490/t for 95% grade rutile (FOB Nacala)
• Graphite pricing: US$1,288/t vs US$1,290/t (FOB Nacala)
• REE: Monazite – no revenue is currently included for the Monazite stream

Conclusion:  The report highlights good progress through the quarter including the upgraded mineral resource, followed by the publication of the DFS on 16 April.

*SP Angel act as Nomad and broker to Sovereign Metals. The analyst has visited the Kasiya mine site and highly recommends the Malawi coffee

SP Angel - No.1 for Precious Metals: LSEG StarMine Award for Most Accurate Forecasting in Reuters Polls Q1 2026

No.1 for Precious Metals: Q1 2026

No.1 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

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.

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

SP Angel Corporate Finance LLP is authorised and regulated by the Financial Conduct Authority and is a Member of the London Stock Exchange.