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Today’s Market View – Alba Mineral Resources, Anglo Asian Mining, Antofagasta and more..

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SP Angel . Morning View . Wednesday 21 10 20


Copper surges on supply concerns and US stimulus, Chinese recovery




AEX Gold Inc (LON:AEXG) – Gold mineralised structure extends to depth at Nalunaq in Greenland


Alba Mineral Resources (LON:ALBA) – Progress at Clogau not affected by Covid-19


Anglo Asian Mining* (LON:AAZ) – BUY -Earnings update


Antofagasta (LON:ANTO) – Q3 report highlights 4.6% output drop


Atalaya Mining (LON:ATYM) – Acquisition of 66mt VMS deposit 28km from Proyecto Riotinto


Centamin (LON:CEY) – Quarterly production update and revised FY20/21 guidance


Petra Diamonds (LON:PDL) – Tender process announced for collection of five blue diamonds


Premier African Minerals* (LON:PREM) – GBP1.1m placing


SolGold* (LON:SOLG) – Strengthening the board




Chinese Renminbi hits two-year high as Covid-19 recovery outpaces rivals


China recently relaxed rules on banks trading in the Renminbi allowing the currency to strengthen


We suspect China Inc. is busy buying in food and seed to replace stocks lost in flooding along the Yangtze which has had a disastrous impact on the nations harvest and agriculture.


China is also looking to promote the Renminbi as a new reserve currency and appears to be persuading certain allies such as Iran to adopt its use.


Renminbi strength combined with likely US dollar weakness over the next few months is likely to raise metal prices further.


The Renminbi climbed nearly 0.5% to its strongest since July 2018 on Wednesday, as China continues to recover from Covid-19 whilst the US and Europe see rising cases and lockdowns which cast doubt on a smooth economic recovery.


The Yuan has strengthened more than 7% against the US Dollar since late May and is up almost 7% against the Australian Dollar since late August.


In addition to dollar weakness, the yuan is being underpinned by a wide interest-rate premium over the rest of the world.


China’s 10-year government bond yields are around 3.2%, as the gap versus the yield on US Treasuries hovers around the highest on record, Bloomberg reports.




GMC Hummer EV comes with 1,000hp – 0-60 in seconds


It looks a bit big for London streets, but the new GMC Hummer says that Electric SUVs are going to be all the rage.


Reservations for the new vehicle have already sold out highlighting the demand for luxury electric SUVs


It’s a bit pricey at >$112,000 but if you are looking for a supertruck this is a beast.


The vehicle is powered by a 24-module Ultium battery pack on GM’s battery platform giving a 350-mile range and 800-volt fast charging up to 350kW.


We believe GM is using a NCMA battery reducing cobalt content by up to 70%.




Interactive Investor: on the EV revolution, gold and other stock ideas: https://www.youtube.com/watch?v=ja0IdjszfCc




IG TV / SP Angel interview: Metals Markets: Are they totally dependent on stimulus:? https://youtu.be/TOiSwRpgfKM


Tesla Battery Day: https://youtu.be/8su0PtyZLIM






Dow Jones Industrials +0.40% at 28,309


Nikkei 225 +0.31% at 23,639


HK Hang Seng +1.12% at 24,845


Shanghai Composite -0.09% at 3,325




Economics


US – New fiscal stimulus deal talks continued between the White House and congressional Democrats, although , chances of striking one before the presidential election are waning.




EU/UK – EU Chief Brexit negotiator Michel Barnier said a deal with the UK is “within reach”, but urged his counterparts “to work constructively and in a spirit of compromise”.


The UK, in turn, refused further negotiations until Brussels agrees to a “fundamental” change of approach.




UK – Inflation picked up in September to 0.5%yoy, up from 0.2% in August.


The increase was driven by an increase in prices for leisure and cultural activities as well as the expiration of the “Eat Out to Help Out” scheme.


Weak inflation raises chances of further BoE monetary policy easing, potentially, coming in the form of negative rates amid resurgence of COVID-19 infections and new restrictions.




South Korea – Average daily exports continued to recover in the first 20 days of the month offering a positive take on global trade growth momentum.


Memory chips shipments were among the biggest beneficiaries from work from home drive amid the pandemic, Bloomberg reports.


While, total exports dropped 5.8%yoy during the period, average daily reading that adjusts for 1.5 fewer business days compared with last year was actually up.


The nation’s Chuseok holiday fell on September 30 to October 2, as opposed to mid-September last year, disturbing trade data.




Poland – Industrial output rises 5.9% YoY in September


Poland’s industrial production jumped by the most in more than a year and a half, after edging up 1.5% in August according to official data.


Official data also showed wages rose to their highest in six months, suggesting that the EU’s biggest eastern economy remains on track to recovery.




China approves 13th batch of ferrous scrap imports for 2020


The latest batch of ferrous scrap for import amounts to 1,340 tonnes, taking the total of approved scrap imports so far this year to 24,450 tonnes (Fastmarkets MB).




Currencies


US$1.1858/eur vs 1.1764/eur yesterday. Yen 105.16/$ vs 105.53/$. SAr 16.409/$ vs 16.557/$. $1.301/gbp vs $1.292/gbp. 0.708/aud vs 0.704/aud. CNY 6.647/$ vs 6.686/$.




Commodity News


Precious metals:


Gold US$1,919/oz vs US$1,901/oz yesterday


Gold ETFs 111.0moz vs US$111.1moz yesterday


Platinum US$881/oz vs US$856/oz yesterday


Palladium US$2,413/oz vs US$2,350/oz yesterday


Silver US$25.03/oz vs US$24.39/oz yesterday




Base metals:


Copper US$ 6,972/t vs US$6,776/t yesterday – Copper moves towards $7000/t on fresh US stimulus hopes


LME copper prices saw strong gains on Tuesday, as the White House and Democrats both claimed progress was made in talks of a new stimulus package to keep negotiations alive.


The news buoyed base metals prices, as three-month nickel and copper prices tested their respective $16,000/t and $7,000/t resistance levels (Fastmarkets MB).


Three-month copper rose 1.7% from Monday’s close to close at $6,899/t- its highest close since February 2018.


Supply worries supported prices further, with the International Copper Study Group announcing this week that they expect global copper mine production to decline by about 1.5% in 2020, primarily due to Covid-19 related disruptions.


Workers are also protesting about layoffs at Codelco


Candelaria mine (Lundin Mining) has suspended working pending labour negotiations


Aluminium US$ 1,848/t vs US$1,843/t yesterday


Nickel US$ 16,125/t vs US$15,750/t yesterday


Zinc US$ 2,562/t vs US$2,494/t yesterday


Lead US$ 1,799/t vs US$1,752/t yesterday


Tin US$ 18,725/t vs US$18,605/t yesterday




Energy:


Oil US$42.7/bbl vs US$42.5/bbl yesterday


In a year marked by huge spending cuts across the oil and gas industry amid urgently revised budgets and slashed investments, offshore drilling activity is poised for a welcome boost


From next year, Rystad Energy expects offshore oil and gas investments to rebound, but there will be a tectonic shift, with nearly half of that investment going to floating production and storage


Earlier this month, Rystad reported that Chinese shipyards are preparing for an increase in new orders for floating production, storage, and offloading vessels beginning next year


This increase would mean that offshore oil and gas exploration and production were on the rebound


In fact, Rystad’s analysts said that over the next five years, 40% of newbuilds for the energy industry would be FPSOs


They stopped short of forecasting what the total of new facilities would be and how it compares with previous years


Elsewhere, oil prices have seen a small bounce following reports of a major draw in crude oil inventories of 5.421MMbbls for the week ending 9 October


This was almost double market consensus of an inventory draw of 2.835MMbbls.


Last week, the API reported a build in crude oil inventories of 951kbbls after analysts had predicted a build of 400kbbls


Oil production in the US rebounded last week but was still down from a high of 13.1MMbopd in March


US oil production currently sits at 11MMbopd, according to the EIA, therefore 2.1MMbops under those March highs


The API reported a draw in gasoline inventories of 1.513MMbbls of gasoline for the week ending 9 October compared to the previous week’s 867kbbls draw


Distillate inventories were down by 3.930MMbbls for the week, compared to last week’s 1.033MMbbls draw, while Cushing inventories rose by 2.199MMbbls


Natural Gas US$2.962/mmbtu vs US$2.856/mmbtu yesterday


Natural gas futures are trading materially higher this morning after reports that liquefied natural gas facilities along the Louisiana coast appear to be ready to ramp-up production


LNG feed gas demand climbed to 8.5Bcf/d in early morning estimates from Bespoke Weather Services.


Reports suggest that despite all of the potential issues we heard about the last few days, it is full steam ahead for LNG, even Cameron would be receiving a tanker to load up


With other empty tankers waiting offshore, LNG feed gas flows are likely to ramp up rapidly, providing a much-needed boost to natural gas prices and driving futures higher,


Higher prices at the key European and Asian hubs will make LNG exports to those destinations viable and profitable again


This week’s volatile natural gas prices were indicative of a demand/supply picture in a ‘shoulder season’ when power demand for air conditioning begins to wane, but demand for heating is not there yet


So prices reacted to the immediate drivers–storage, feed supply for LNG, and storm-induced shut-ins




Bulk:


Iron ore 62% Fe spot (cfr Tianjin) US$115.8/t vs US$115.4/t


Chinese steel rebar 25mm US$567.5/t vs US$564.2/t – EU opens anti-dumping investigation into Chinese steel wind towers


The EU has begun an anti-dumping investigation into imports from China of steel towers used for wind turbines.


The investigation follows a complaint by the European Wind Tower Association, which say that Chinese volumes and low prices have hit European producers.


Anti-dumping investigations last up to 14 months, after which the bloc can impose tariffs, typically for five years (Reuters).


Thermal coal (1st year forward cif ARA) US$60.0/t vs US$60.6/t


Coking coal swap Australia FOB US$129.0/t vs US$120.7/t




Other:


Cobalt LME 3m US$33,305/t vs US$33,305/t


NdPr Rare Earth Oxide (China) US$48,894/t vs US$48,228/t


Lithium carbonate 99% (China) US$5,266/t vs US$5,234/t


Ferro Vanadium 80% FOB (China) US$29.0/kg vs US$29.0/kg


Antimony Trioxide 99.5% EU (China) US$5.3/kg vs US$5.3/kg


Tungsten APT European US$212-220/mtu vs US$212-220/mtu


Graphite flake 94% C, -100 mesh, fob China US$430/t vs US$430/t


Graphite spherical 99.95% C, 15 microns, fob China US$2,275/t vs US$2,275/t




Battery News


Automakers preparing for tougher emissions rules under a Biden administration


Both Presidential Candidates are focused on garnering the vote of auto workers in swing states such as Michigan and Ohio but that’s where the comparison ends reports.


Biden is expected to reinstate the legal basis for California’s zero emissions vehicle rules and will begin reversing the Trump administrations efforts to ease fuel efficiency and carbon emissions requirements reports Reuters.


This would include higher penalties for automakers that do not meet fuel efficiency requirements.


Biden is also expected to implement new tax incentives for EVs and will look to expand charging infrastructure.




Lavle Gigafactory to manufacture lithium metal batteries


US Start-up Lavle has announced it plans to build a Gigafactory to manufacture next generation battery modules. The facility has a target production capacity of 7GWh/yr and the company expects production to be at scale in the US by 2023.


A location for the factory is yet to be announced but it has been confirmed the facility will produce the Company’s lithium-metal batteries.


Lavle has suggested its lithium metal batteries will be able to achieve to cost parity with conventional lithium-ion batteries once they have a supply chain established and the cells are manufactured at scale.


Lavle has been developing a large-scale Solid Electrolyte Battery (SEB) energy storage system for the marine market. Lavle is a joint venture between 3DOM and Ockerman Automaton, the former providing the battery cells and the latter engineering expertise.


Lavle holds exclusive rights to 3DOM’s SEB technology for application in marine, defence, oil & gas and renewables markets.


The JV is yet to dip its toe into the electric car battery market instead seeing potential for its greater energy density batteries in other applications.


The Lavle energy storage system is reported to have a greater energy density, improved safety facilitated by their unique separator, a very high depth of discharge, faster charge rates, extended life cycle and lighter.




400MW cable links Danish and German windfarms


From today, Denmark and Germany’s electricity networks will be connected via offshore wind farms.


The transmission system operator (TSO) in Denmark, Energinet and a German TSO, 50Hertz are commissioning a 400MW subsea cable which links grids in eastern Demark and Northern Germany. This will form a cross border link between the two countries, as well as the Danish 605MW Kriegers Flak and German 48.MW EnBW Baltic 1 and 288MW EnBW Baltic 2 offshore windfarms in the Baltic sea.


This means green power can be sent from the windfarms to consumers and also between Germany and Denmark.


Transformers will be used to make sure that the voltage differences between German and Danish electricity is equalised, and a new monitoring system will make sure that the cable’s capacity is used optimally. This will lower electricity prices and guarantee a constant electricity supply.


The UK and Holland are looking at a similar project for the future.




Company News


AEX Gold Inc (LON:AEXG) – 47.50p, Mkt cap GBP85m – Gold mineralised structure extends to depth at Nalunaq in Greenland


AEX Gold report drilling has confirmed continuity of the main vein structure at depth at the old Nalunaq gold mine in Greenland.


The team are drilling the Main Vein and a parallel structure to extend the gold resource and gauge the thickness of both structures.


The team have drilled 2,191m in 11 holes averaging 199m per hole.


The ‘Main Vein’ structure is expected to show good continuity with drilling so far showing true thicknesses of 1.36m with visible gold.


The Main Vein was intersected by six holes showing:


1.5m at 4.2 g/t


1.35m at 6.6 g/t


Previous drilling showed:


0.25m at 120.4 g/t


0.67m at 46.10 g/t


0.50m at 19.75 g/t


0.44m at 16.6 g/t.


.


Valley Block: drilling is planned to test the ‘Valley Block’ parallel structure, results are:


0.67 at 46.0


0.25 at 120.4


0.50 at 19.75


0.44 16.6


0.2 at 10.7


0.28 at 6.9


0.35 at 4.7


1.46 at 1.1


Conclusion: AEX are looking to further define and reopen the Nalunaq mine. Drilling confirms continuity of the structures with some very high grade intercepts. The former history of the mine under Black Angel gives us significant data to work from in de-risking the project and assessing the future value and of the project.




Alba Mineral Resources (LON:ALBA) 0.48p, Mkt cap GBP29.9m – Progress at Clogau not affected by Covid-19


Alba Minerals report this morning that the Company’s underground exploration programme at the Clogau- St David’s Gold mine is not expected to be affected by the Welsh Government’s Coronavirus restrictions announced for the period 23rd October to 9th of November.


Underground drilling continues to progress this month, with hole L002 drilled to 121.5m and L003 currently being prepared for drilling whilst bulk sampling is progressed at the Jack Williams stope floor.


George Frangeskides, Alba Executive Chairman, commented: “We have made excellent progress in our underground campaign following its resumption earlier this month, with a 121 metre drill hole completed and a large bulk sample collected at the Jack Williams stope, taken from material left behind during previous periods of mining. The programme is scheduled to continue until the end of October, following which we will move into the formal assaying of all the drilled and sampled material”.




Anglo Asian Mining* (LON:AAZ) 110p, Mkt Cap GBP126m – Earnings update


BUY – 200p (from 209p)


This is a short update calibrating our earnings estimates following the release of Q3/20 operations results. Q3/20 operations release details can be found in our morning note comment here.


We estimate H2/20 to come in stronger around 33koz gold and 1.2kt copper on the back of better processed grades that in turn should help bring AISC down to $613/oz (H1/20: 28koz gold and 1.2kt copper at $743/oz AISC).


As a result, we expect FY20 output to come in at 61koz and 2.5kt or 71koz GEO on budgeted commodity prices ($1,480/oz, 17$/oz and $5,700/t) with the Company currently reviewing FY20 guidance, expected to be downgraded by 5-10% from 65-67koz gold and 2.2-2.4kt copper or 75-80koz GEO originally guided.


Despite a pull back in GEO production this year, nearly a 25% rally in average gold prices is expected to drive annual revenues past the $100m mark which accounting for +50% EBITDA margins should translate into $57m in EBITDA (H1/19: $22m) and $33m in FCF.


The latter together with the debt free balance sheet and ~$30m in cash as of H1/20 bodes well for sustainability of dividend payments as well as a potential for a special dividend in Q1/21 highlighted by the Board in Interim Results.


As the Company at least matched its interim dividend, final dividend is likely to come in at 4.5c taking the total for the year to 9c/6% yield (at 110p price), one of the highest in the sector, with a potential special dividend to come on top of that.


Our updated valuation reflects lower production and higher unit costs as well as revised commodity price estimates. While Anglo Asian is predominantly a gold producer drawing ~90% of revenue from the precious metal, a recent pick up in copper prices on the back of a recovery in China and supply disruptions in LatAm comes in handy amid concentrate production growth at Gedabek.


Arguably, major near term catalysts for the Company are Nagorno-Karabakh conflict related news and the Gedabek mineral reserve update expected to extend the life of mine past the currently envisaged 2024 with the report due in Oct/20.




Antofagasta (LON:ANTO) 1,040p, Mkt Cap GBP10.32bn – Q3 report highlights 4.6% output drop


Chilean miner Antofagasta produced 169,600t of copper in Q3 vs 177,700t in Q2- as a result of maintenance at Los Pelambres and lower grades at Antucoya.


Copper production for the first nine months of the year was in line with expectations at 541,300t, although this was 7.3% lower YoY largely as a result of lower grades at Centinela.


The company expect 2020 production to be at the lower end of its original guidance of between 725,000 to 755,000 tonnes.


Gold production fell 16.7% QoQ to 38,300oz and 34% YTD compared to last year as grades declined at Centinela.


Net cash costs during Q3 were $1.19/lb, a 5.3% increase QoQ and 2.6% lower than the same period last year and the net cash cost YTD is $1.14/lb.


Mentioning Covid-19, Antofagasta say that infections have declined and remained steady after June’s peak, and that government-imposed restrictions are being eased although the company continues to maintain its own Covid-19 protocols.


The Company continues to operate with approximately two-thirds of its workforce at its operations, with the balance working from home or in quarantine.




Atalaya Mining (LON:ATYM) 172.5p, Mkt Cap GBP237m – Acquisition of 66mt VMS deposit 28km from Proyecto Riotinto


Atalaya Mining has announced a EUR1.4m cash acquisition of the Masa Valverde polymetallic VMS project located 28km SW of its Proyecto Riotinto mine in Spain.


The acquisition consideration is to be paid in “two installments of approximately the same amount. The first payment will be made when the mining permit is granted and the second when first production is achieved from the concessions”.


The company reports an historic NI-43-101 compliant inferred resource, based on over 48,000m of historic drilling, at Masa Valverde of 66mt at an average grade of 0.67% copper, 1.92% zinc, 0.9% lead, 34g/t silver and 0.63g/t gold. Atalaya Mining says that “Further infill drilling will commence shortly with the aim of upgrading current resources and providing the basis to complete scoping and pre-feasibility studies reports”.


“The known deposit is 1350m long, up to 200m wide and plunges 30o NW from a depth of approximately 430m to at least 800m below surface. It is made up of two massive sulphide bodies separated by a stockwork zone that can exceed 100m in thickness. The upper body true thickness varies between a few meters and 70m whilst the lower body is smaller and thinner but this may be due to incomplete drilling. The deposit seems to be closed off both laterally and at depth although additional drilling will be needed to confirm it”.


We note that, currently Proyecto Riotinto reports measured and indicated resources of 258mt at an average grade of 0.4% copper with an additional inferred resource of 18mt at 0.5% copper although the resource at Proyecto Riotinto is accessible by open-pit mining while Masa Valverde is a ‘blind’ deposit only starting over 400m below surface.


Current indications are that additional exploration opportunities are available within the acquired licence areas with the company pointing to untested geochemical and geophysical anomalies and “the recent discovery of the Majadales sulphide body, included in the Transaction and located 1.2km ESE of Masa Valverde, which is not included in the historic resource estimate.” Atalaya Mining also says that “Several similar targets remain pending for systematic drilling within the two exploration permits acquired, which cover an area of approximately 4,000 hectares.”


CEO, Alberto Lavandeira, welcomed the acquisition and said that “Masa Valverde already has a significant defined resource which could increase during subsequent evaluation phases, paving the way for quick project development. The proximity to our Riotinto operation … and the experience gained during its development and construction, will be fundamental as we convert this project into a mine.”


Conclusion: Atalaya Mining’s acquisition of Masa Valverde adds additional inferred resources, at higher grades than the nearby Proyecto Riotinto with additional exploration potential. We look forward to the results of infill drilling and resource upgrades as a basis for feasibility work on the possible future development of Masa Valverde.




Centamin (LON:CEY) 129p, Mkt Cap GBP1.5bn – Quarterly production update and revised FY20/21 guidance


Q3/20 production totalled 128koz (Q3/19: 98koz) bringing YTD output for 9M to 384koz (9M/19: 332koz).


AISCs averaged $961/oz in Q3/20 (Q3/19: $1,141/oz) and $918/oz YTD (9M/19: $1,006/oz).


Gold sales amounted to 119koz at an average realised gold price of $1,933/oz (Q3/19: 109koz at $1,478/oz)


Adjusted FCF came in at $36m (YTD: $137m) after accounting for $39m in Q3/20 capex (YTD: $90m) and $64m distributed to the Egyptian government in profit share payments and royalties.


After reporting geotechnical issues in a higher grade part of the Sukari open pit in early October, the team changed the mining schedule that in turn affected 2020 and 2021 production guidance.


Updated FY20 guidance is for 445-455koz at $950-1,050/oz in AISC, down from 510-525koz and $870-920/oz in AISC budgeted previously.


FY21 is forecast at 400-430koz and $1,200-1,275/oz in AISC.


Preliminary assessment indicated a combination of steep slope angels and the localised presence of groundwater in the affected West Wall of the pit as contributing factors with remediation works to include waste stripping above the area of instability and of the area using boreholes.


Rescheduling of the higher grade Stage 4 West wall means remediation works to be completed during H1/21 deferring open pit higher grade feed to the plant to H2/21 and 2022.


The shortfall from the open pit will be mitigated using the material from low grade surface stockpiles (~0.47g/t v 2g/t in the West wall area).


The Company is planning to complete the Phase 1 Life of Asset review on 2 December 2020 and present the detailed three year production outlook for Sukari as well as a series of initiatives targeted at improving costs and productivity.


Net cash and liquid assets stood at $345m as at the end of Q3/20 after payment of $69m in second interim dividend.


Conclusion: The Company reduced FY20 and FY21 production guidance reflecting geotechnical issues in the higher grade area of the Sukari open pit announced earlier in October. Increased waste stripping and delay in mining of higher-grade areas see Q4/20 output guidance reduced by ~50% translating into a jump in unit operating costs. Remediation works are expected to be completed in H1/21 with FY21 production and AISC forecast at 400-430koz and $1,200-1,275/oz in AISC (FY19: 481koz and $943/oz).




Petra Diamonds (LON:PDL) 1.35p, Mkt Cap GBP11.9m – Tender process announced for collection of five blue diamonds


Petra Diamonds has announced a special tender process will take place for its Letlapa Tala Collection, five blue diamonds all sourced from the Cullinan Mine in South Africa.


The Letlapa Tala Collection consists of five Type IIb blue diamonds of 25.75, 21.25, 17.57, 11.42 and 9.61 carats in size.


The Company speculate that this is likely to be the first time that five blue rough diamonds have ever been offered for sale at one time, with buyers being offered the chance to bid either on individual stones or for the entire collection.


The collection will be available for viewings in the key diamond centres of Antwerp, Hong Kong and New York- with the sales tender closing at 3pm GMT on the 24th of November 2020.




Premier African Minerals* (LON:PREM) 0.04p, Mkt Cap GBP6.4m – GBP1.1m placing


Premier African Minerals reports placing 2,750m shares at a price of 0.04p/share to raise GBP1.1m.


The proceeds are to be used to “assist with the funding to identify and secure high value exploration and/or cash generative assets in other jurisdictions, payment of certain debts and for general working capital purposes necessary for the Group”.


CEO, George Roach, said that, in addition the new funds would allow the company “to responsibly reassess its Zimbabwean assets and determine the best course of action to generate value for shareholders. I continue to believe in the value of our Zimbabwean assets and it is my fervent desire that the Zimbabwean government will resolve the issues surrounding RHA Tungsten and grant Premier the Exclusive Prospecting Order over the extended area at Zulu Lithium”.


The newly issued shares amount to approximately 17% of the enlarged capital of the company


*SP Angel have an agreement with Premier African Minerals as a result of the acquisition of Northland Capital Partners




SolGold* (LON:SOLG) 36p, Mkt Cap GBP767m – Strengthening the board


Solgold reports the appointment of three new independent non-executive directors, each of whom adds highly relevant technical, commercial and operational experience to Solgold’s team as it evolves from its strong exploration roots into a mine developer at Alpala.


The appointments, which are subject to regulatory approval, bring additional mining expertise in the shape of Canadian based Kevin O’Kane and UK-based Keith Marshall as well as legal and international trade experience specific to Ecuador from Mrs. Maria Amparo Alban.


Mr. O’Kane is described as “a mining engineer with almost 40 years’ experience in the global mining industry” including with BHP in South America. He has “significant executive level operation leadership skills which he gained from large scale copper mines, including almost nine years at La Escondida. He is fluent in Spanish and brings a wealth of technical, operational and HSCE leadership combined with South American knowledge to the SolGold Board”.


Mr. Marshall, also “has over 40 years’ experience in the mining sector and has worked on significant underground mines around the world. During the last fifteen years with Rio Tinto, Keith held senior mine leadership roles … [including his] … last two operational roles … as Managing Director of the Palabora Mining Company in South Africa (during its successful transition to block caving) and three years as president of the Oyu Tolgoi Project in Mongolia.”


The company comments that “Keith’s underground block cave mining experiences will provide SolGold with extensive knowledge and guidance for the development of the Alpala Project. Keith’s diverse technical and executive level operational leadership experiences broadens the Company’s skill base, and will play a key role in advising on strategic development decisions”.


Mrs. Amparo Alban is a lawyer with over 25 years’ experience in environmental matters and international trade and sustainable development. She “was instrumental in the Free Trade Agreement negotiation between Ecuador and United States on environmental matters. Maria has served as an advisor to Ecuador’s Trade Ministers, Ministry of Environment, United Nations Environmental Program (among others) and was the founding partner of the Inter-American Institute for Justice and Sustainability”.


Solgold says that “Maria’s Ecuadorean experience and knowledge will provide exceptional value to the SolGold Board during permitting and fiscal agreement negotiations in Ecuador”.


Welcoming the appointments, Solgold’s Chairperon, Liam Twigger said that “Mrs Amparo Alban’s connections and extensive experience in external affairs and operational sustainability in Ecuador, combined with Mr Marshall’s and Mr O’Kane’s experience in South American mine development and block cave mining, will provide invaluable knowledge and guidance as SolGold emerges to add mine development to its repertoire of award-winning exploration skills in Ecuador. The Board of SolGold is completely cognisant that exploration and discovery will always remain the core key value driver for the Company. The new appointments are designed to complement SolGold’s valuable track record and intellectual property in this area.”


Conclusion: Solgold announced earlier this year that it would restructure its board to reflect its evolving role. The appointments announced today bring specific, relevant, expertise in mining, permitting and senior project management in South American and international operations to Solgold as it moves forward on the development of Alpala.


*SP Angel act as financial advisor and broker to SolGold




Analysts


John Meyer – [email protected] – 0203 470 0490


Simon Beardsmore – [email protected] – 0203 470 0484


Sergey Raevskiy –[email protected] – 0203 470 0474


Joe Rowbottom – [email protected] – 0203 470 0486




Sales


Richard Parlons –[email protected] – 0203 470 0472


Abigail Wayne – [email protected] – 0203 470 0534


Rob Rees – [email protected] – 0203 470 0535


Grant Barker – [email protected] – 0203 470 0471






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

Escape Hunt takes back control of its club in Dubai

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