Bushveld Minerals: Funding tightness and weak pricing weigh on Q1

Bushveld Minerals’ (“BMN”), which mines and produces vanadium products from two facilities in South Africa (“SA”) has released its Q1 operational results with production of 855tV (sales 880tV). Stronger production at Vanchem was more than offset by a very weak quarter at Vametco, due to scheduled maintenance. Group average cash costs were US$28.4/kgV, up 9.8% YoY, with global average vanadium prices of US$28.4/kgV during the period (Q4 US$31.6/kgV), in part due to Asian markets being notably wea

SP Angel Morning View: Gold prices slide following profit taking as traders look to US data

SP Angel Morning View: Copper extends gains on production cut optimism as hedge funds ramp up bullish bets

SP Angel Morning View: Nickel prices rise as Indonesia accelerates supply restrictions

SP Angel Morning View: China kickstarts construction with >8,200 ‘whitelisted' residential developments

Bushveld Minerals: Vanchem site visit, Orion loan note refinanced

H&P recently visited Bushveld Minerals’ (“BMN”) Vanchem plant located to the east of Johannesburg, where BMN’s new management team has implemented several initiatives to improve operational consistency. In its full year 2023 Operational Update, BNM announcedQ4’23 production of 925tV at a cash cost of US$27.3/kg, with FY23 production of 3,714tV at a cash cost of US$26.6/kg, alongside sales of 4,051t due to inventory sell down. Group production guidance for 2024 was 4,300tV-4,500tV, however the d

SP Angel Morning View: Fed reiterates dovish outlook but not expecting first rate cut in March

Arkle Resources* (ARK LN) – Drilling results from Inishowen, Donegal Bushveld Minerals* (BMN LN) – Orion convertible loan refinancing completed Ferr-Alloy Resources (FAR LN) – Revised Balasausqandiq Vanadium Project FS timing Galileo Resources (GLR LN) – Additional targets identified in the Kalahari Copperbelt, Botswana Gem Diamonds (GEMD LN) – Production volumes hold up at Letšeng while average prices come under pressure Glencore (GLEN LN) – Stronger H2 production volumes across most commo

BUSHVELD: coverage dropped

We have dropped our coverage of Bushveld owing to internal reorganisation. Our valuation range and estimates are therefore no longer valid.

SP Angel Morning View: US Steel production rises as India takes up China surplus

SP Angel Morning View: 22% growth in EVs in 2024 should drive strong demand for battery metals

SP Angel Morning View: Metal prices rangebound as market digests impact of Red Sea attacks

SP Angel Morning View: Metals steady as focus turns to US for key inflation data and rate guidance

Bushveld Minerals: GM vote approves share issue strengthening balance sheet and laying foundation for 2024 growth

Bushveld Minerals (“BMN”) has announced the result of its General Meeting (GM) that approved the issue of shares in relation to the recently announced financing, Black Economic Empowerment (‘BEE’) restructuring, Southern Point Resources (‘SPR’) financing, and the shares to be issued to Orion in relation to the convertible restructuring. Following this series of transactions, the total number of shares issued should increase to 2.311bn of which 670,000 will be held in treasury. We view this as a

SP Angel Morning View: Fed casts caution on interest rate cuts as focus shifts to key inflation data

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

Falcon Oil & Gas - Funding a Multi TCF Resource

Falcon has raised gross proceeds of US$8.9m via a placing and subscription at a price of 6p/share and the granting of overriding royalty interests. The net proceeds, together with Falcon’s existing cash resources (cUS$4.3m) will be used to fund Falcon’s net share of 2024 capex (cUS$9m) associated with the 40MMscf/d Shenandoah South Pilot Project, including the drilling, stimulation, and flow testing of two 10,000ft horizontal wells. The funds will also enable Falcon to fund its share of the cost

Initiation of Coverage - Critical raw materials for Europe’s green transition

Beowulf is advancing a portfolio of projects in Europe focussed on metals and minerals that are critical to enabling the continent’s transition to a greener economy. Awareness of Europe’s over-reliance on external supply sources for such vital raw materials is driving growing political support for ‘home-grown’ projects. Beowulf is strategically positioned to leverage this fast-evolving trend – its Kallak project in Sweden holds potential to deliver high-quality iron ore to lower the carbon-inten

Morning Note – 22 April 2024

Sintana Energy Inc. (TSX-V: SEI): Constrained test rate of 14 mboe/d at Mopane-1X. 10+ bn boe in place confirmed.

• Multiple tests over multiple zones in multiple horizons were run at the Mopane-1X exploration well. The flows achieved during the well test reached the maximum allowed limits of 14 mboe/d. The flow rate was constrained by the size of the available surface facilities. • The AVO-1 horizon encountered at Mopane-1X and Mopane-2X are in the same pressure regime, suggesting that the entire area (8 km diameter) between the two wells is connected. Overall, in the Mopane complex alone, and before dril

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

LIBERUM: Ferrexpo: Production triples

Jubilee Metals - Operational Update Q3 FY2024

Jubilee today reports its Q3 and third quarter operational results from its expanding operations in Zambia (copper) and South Africa (chrome and PGM). South Africa is on a growth trajectory with record chrome production of 409kt in the quarter (Q2 FY2024 381kt) and a monthly record in March of 145kt and production YTD of 1.13Mt (0.94Mt). Jubilee is well underway to its annual target capacity of 2,1Mt/yr especially with the new 300kt/yr chrome plant at Thutse expected to be operational in August

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

Alien Metals - Hancock Project, Mining Lease Granted

Alien today reports intraday that the Western Australian Government has granted a mining licence for the Hancock iron ore project for a 21-year term. The granting of the mining licence is the latest milestone delivered by Alien as it advances the project towards development and production.

I3 Energy (I3E LN) - Canada royalty assets sale

I3 has announced the sale of the majority of its royalty interests in Canada, for US$24.8m cash. This allows the company to fully repay amounts drawn on its debt facility and create a working capital surplus, giving I3 significant additional funding flexibility going forward

Transition to Mining Operator

Adriatic Metals has announced their transition from mining contractor to mining operator at Rupice. The transition is expected to continue to benefit the development and productivity rates being achieved at Rupice mine, as well as result in cost efficiencies and improved HSE standards. The company has also announced a short-term loan facility with Orion of $25m, that is drawable at the option of the company in Q3/4 this year.

Jersey Oil & Gas (JOG LN) - Share price fall creates opportunity

Since November, the JOG share price has moderated from a high of 250p to current levels of 149.5p. This is despite JOG having now made significant progress towards FID on its c.70mmboe Buchan project, with FID upcoming later this year. In our view this share price move is unjustified, with current levels further enhancing the value on offer, and making an attractive opportunity for investors.

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

Clean Power Hydrogen - New customers and licensees circling…

CPH2 has released FY23 results with the company completing the period with a slightly lower cash outflow from operations and a higher cash balance than forecast. Looking ahead, with a new and improved technical and engineering team, the company has committed to completing Factory Acceptance Testing of its first MW scale electrolyser, the 0.5MW MFE110, within the next three months. In our view, this will be a major milestone for the company which will demonstrate that its unique technology can be