Drill assays foreshadow resource expansion potential in Finland

Metals One has received the assay results from recent diamond drilling at the Black Schist Ni-Cu-Co-Zn project in Finland. The Black Schist project is adjacent to Talvivaara, Europe’s largest operating nickel mine run by Terrafame Oy. Significant intersections of mineralised black schist confirm geological continuity between the R1 Hook area and the existing JORC resource at R1 which demonstrates the potential to substantially increase the resource base at the project.

Drilling to commence adjacent to Europe’s largest nickel mine

Drilling is about to kick off at the company’s Black Schist Ni-Cu-Co-Zn project in Finland. The licence area is adjacent to the Talvivaara Ni-Zn-Cu-Co deposit, Europe’s largest operating nickel mine. A 1,600m diamond drill programme will focus on an extension to the Rautavaara S “R1” target in the Rauta 9-11 licence area.

Northern Exposure: Critical metals for Europe’s energy transition

We initiate coverage on Metals One, an exploration company with a portfolio of battery metal projects in Europe. The primary focus is on nickel sulphide assets where the company has £9m of exploration carry expenditure being put to work at the Råna Ni-Cu-Co project in Norway and the Black Schist Ni-Zn-Cu-Co project in Finland.he burgeoning battery market is desperate for new sources of low carbon, Class 1 nickel to satisfy European demand and increasingly stringent supply chain regulation.

New massive sulphide zone discovered at Råna; 9.3m at 1% Ni & 0.3% Cu

The first two holes drilled at the Rånbogen prospect have intersected high-grade massive sulphide Ni-Cu mineralisation. The best intersection was an impressive 9.3m at 1% nickel and 0.3% copper from 176.5m, part of a wider mineralised interval.

New anomalies highlight massive sulphide potential in Norway

Four new geophysical anomalies in the form of strongly conductive zones have been identified at the Rånbogen prospect, one of three priority prospects at Metal One’s Råna Ni-Cu-Co project in Norway. The results come from a SPARTAN magnetotelluric ground geophysical survey recently undertaken by Kingsrose Mining Limited, the company’s partner and operator of the project. These highly conductive zones, seemingly correlated with outcropping mineralisation, support the potential for extensive massiv

Trinity Exploration and Production - Reserves Reduction but Solid Core Business

Trinity has announced a c28% reduction to its 2P reserves following a YE23 review. Despite the decrease in the Company’s 2P reserves, Trinity’s core business remains robust, with a reserves/production ratio of >12.5 years at YE23. Whilst there is significant potential for growth within the current portfolio, this will be difficult to unlock from the current balance sheet and we believe further financing will be required. We update our target price to 76p (from 202p), a c85% premium to the curren

Trinity Exploration and Production - 2024 Guidance

Trinity has set 2024 sales guidance at 2,600-2,700bopd, a modest c5% YoY decrease at the midpoint, as Trinity continues to offset an estimated c7-10% annual natural production decline. Capex in 2024 is expected to be US$7-8m to fund a programme of recompletions and production related expenditure, minor sustaining capex and growth projects. Following recent Supplemental Petroleum Tax (SPT) reforms we forecast Trinity paying no SPT in 2024, enabling the Company to generate cUS$11.6m in operating c

Morning Note – 24 April 2024

NextSource Materials - Initiation

NextSource is uniquely positioned to build a leading vertically integrated position, ex China, in the supply of Lithium-ion battery anode material which is essential for the Energy Transition. The company is commissioning phase 1 of its world-class Molo graphite mine in Madagascar and is in the final permitting process for its first Battery Anode Facility (BAF) to be located in Mauritius. The company is backed by Vision Blue, established by Sir Mick Davis, former CEO of Xstrata. On our calculat

SP Angel Morning View: China likely to trump BHP offer for Anglo American

Orcadian Energy (ORCA LN) - Piloting it home – initiating coverage

Orcadian is a UK E&P company pursuing development of the 79mmbbl Pilot oil field in the North Sea. The company recently closed an important farm out, paving the way for Pilot FID, with various new assets to also provide further news flow

Beowulf Mining (BEM LN) – Initiation Note – BUY – Supporting Scandinavia's Green Transition

Beowulf is an AIM/Spotlight-listed developer of two flagship assets; Kallak, a high-grade iron ore project in Sweden and the Grafintec Graphite Anode Materials Plant. The Company's Kallak North project has the potential to produce 2.5mtpa of high-grade, premium iron ore concentrate suitable for the growing green steel industry in Sweden. Additionally, Grafintec's Anode Material Plant Project is well positioned to serve the growing EV battery supply chain in Europe, whilst supporting EU plans

Touchstone Exploration+ (TXP, House Stock at 44p) - Closing of expanded bank facilities

Cascadura completed - Q1 operational update

Oil & Gas - Cavendish sector note

Chariot, Energean, Touchstone Exploration, Longboat Energy, Hartshead Resources, BP, Helix Exploration, PetroTal, Pantheon Resources, Caspian Sunrise, Petrofac, DNO ASA, Valeura Energy, Aker BP, Var Energi Source: FactSet, weekly change 08/04/24-12/04/24 Oil rose as Israel braced for a possible attack from Iran, a development that would threaten major disruptions in a region that accounts for a third of the world’s crude output. An assault is expected to come as soon as the next 48 hours, which

Morning Note – 25 April 2024

SP Angel Morning View: Cocoa prices overtake copper as LME increases margins on key metals

Challenger Energy (CEG LN) - £1.5m strategic investment in Challenger

Challenger has announced a £1.5m investment in the company from investor Charlestown Energy. This now allows Challenger to be fully funded for the foreseeable future as it works towards closure of its significant Uruguay farm out to Chevron, and the US$12.5m cash payment to be received once this is achieved.

I3 Energy (I3E LN) - 2024 work programme and budget

I3 has released its work programme and budget for 2024, alongside providing guidance for the year. This represents a larger programme than 2023, with the focus now shifting to greater operational activity and production gains given the additional balance sheet strength achieved in recent months.

Morning Note – 15 April 2024