Author: Fiona Craig

Metals Exploration plc (LSE:MTL) has confirmed to the UK Takeover Panel that it has met its stated post-offer intentions following the recommended acquisition of Condor Gold plc, which was completed through a scheme of arrangement on 15 January 2025 in line with the City Code on Takeovers and Mergers.

The company highlighted a single variance from its original plans relating to the Manikbel prospect within the Abra tenement. A previously outlined 6,000-metre drilling programme and initial mineral resource estimate have been deferred to accommodate a formal consultation process with indigenous communities. As a result, drilling is now expected to commence in the first half of 2026, with the initial resource estimate targeted for the fourth quarter of 2026. This adjustment may extend the timeframe for unlocking value from the Manikbel exploration asset.

From a market standpoint, Metals Exploration’s outlook continues to benefit from solid financial performance and constructive corporate developments, including progress on project expansion and the resumption of operations. These positives are partly offset by valuation constraints linked to a negative price-to-earnings ratio and a recent revision to production guidance following external disruptions. Technical indicators point to moderate momentum, broadly consistent with a cautious overall assessment.

More about Metals Exploration

Metals Exploration plc is a gold producer, developer and explorer with assets in the Philippines and Nicaragua. The group focuses on advancing gold projects through exploration, resource definition and mine development across its portfolio in these jurisdictions.

Serabi Gold (LSE:SRB) has reported record gold production of 44,169 ounces for 2025, representing an 18% increase year on year and landing in line with guidance. The performance was underpinned by the continued ramp-up of the Coringa Mine, alongside the successful deployment of ore-sorting technology that enabled the processing of previously stockpiled lower-grade material.

Fourth-quarter output increased 15% to 11,534 ounces, while horizontal development advanced by 45% to 4,535 metres. Higher realised gold prices supported a rise in net cash to $42.1m, strengthening the balance sheet despite the refinancing of existing loans. Management said progress continues across its multi-stage growth strategy, including the introduction of mechanised mining at Coringa, the development of additional ore zones, and an ongoing 30,000-metre brownfield drilling programme. Early results from drilling have already extended known mineralised trends at both Coringa and the Palito Complex.

Looking ahead, the company has guided to consolidated production of between 53,000 and 57,000 ounces in 2026. A further 30,000 metres of brownfield exploration is planned, supporting potential resource growth, sustained production increases and stronger cash generation. These initiatives are also expected to underpin the recently introduced shareholder return policy.

From an investment perspective, the outlook is largely supported by strong financial metrics, including robust margins, a rebound in earnings and very low leverage. Technical indicators also point to a positive trend, while valuation is aided by a comparatively low price-to-earnings ratio. The principal risk remains the historically uneven nature of free cash flow and exposure to commodity price cycles.

More about Serabi Gold

Serabi Gold plc is a UK-headquartered gold exploration, development and production company focused on the Tapajós region in Pará State, northern Brazil. Its core operations comprise the Palito Complex, which has historically produced between 30,000 and 40,000 ounces of gold annually, and the Coringa Mine, which is being ramped up with the objective of roughly doubling group output. The company is also advancing brownfield exploration across its licence portfolio and has reported a copper-gold porphyry discovery, supporting a longer-term resource expansion strategy in the region.

Savannah Resources (LSE:SAV) has detailed fresh progress at its Barroso Lithium Project after securing approval for a non-repayable Portuguese government grant of up to €110m, with formal execution of the investment agreement expected in the near term. The funding underpins continued advancement of the Definitive Feasibility Study (DFS) and environmental permitting, alongside refinements to open-pit designs and the completion of critical infrastructure planning covering water systems and road access.

Operationally, the company is preparing to launch an expanded programme of geotechnical and resource drilling, subject to the issuance of a temporary land access order. Exploration work has also delivered upside potential, with soil sampling identifying a new 400-metre lithium anomaly that extends an existing target area, opening the door to additional resources beyond the current DFS scope. Improving lithium prices and ongoing tightness in global supply have further strengthened commercial interest in the project’s future spodumene concentrate output.

In parallel, Savannah is intensifying engagement with local stakeholders and accelerating land acquisition efforts around the project area. At an industry level, the company has joined peers in urging the European Commission to introduce binding local-content requirements for lithium, a move aimed at strengthening European supply chains and enhancing the strategic importance of domestic projects such as Barroso within the EU.

From a market perspective, sentiment remains weighed down by the company’s early-stage financial profile, characterised by a lack of revenue, ongoing losses and continued cash outflows. While a relatively low level of debt offers some balance sheet resilience, technical indicators provide only limited near-term support, and valuation metrics remain constrained by negative earnings and the absence of dividend income.

More about Savannah Resources

Savannah Resources is an AIM-listed mineral development company focused on advancing the Barroso Lithium Project in northern Portugal. The project is widely regarded as Europe’s largest known spodumene lithium deposit and has been designated a Strategic Project under the European Critical Raw Materials Act. Savannah aims to supply lithium into Europe’s fast-growing electric vehicle and battery storage markets, positioning Barroso as a key domestic source of critical raw materials for the EU.

U.S. equity futures are pointing to a softer start on Wednesday, indicating stocks may face additional pressure after ending Tuesday’s choppy trading modestly in the red.

Pre-market weakness in Wells Fargo (NYSE:WFC) is weighing on sentiment, with the bank’s shares down around 2.6%. The decline comes after the lender reported fourth-quarter earnings that beat expectations, but fell short on revenue.

Bank of America (NYSE:BAC) was also trading lower ahead of the opening bell, despite delivering quarterly results that exceeded analyst forecasts.

By contrast, Citigroup (NYSE:C) shares were poised to advance after the bank posted stronger-than-expected fourth-quarter earnings.

On the economic front, new data from the Commerce Department showed U.S. retail sales rose more than anticipated in November. Sales increased 0.6% during the month, following a revised 0.1% decline in October, outpacing expectations for a 0.4% gain.

Excluding autos, retail sales climbed 0.5% in November after rising 0.2% in October, also beating forecasts.

Separately, the Labor Department reported a modest increase in producer prices in November.

Markets struggled to find direction on Tuesday, after rebounding from early losses on Monday to finish slightly higher. During Tuesday’s session, major indexes swung between gains and losses before closing lower.

The Dow Jones Industrial Average fell 398.21 points, or 0.8%, to 49,191.99. The Nasdaq Composite edged down 24.03 points, or 0.1%, to 23,709.87, while the S&P 500 slipped 13.53 points, or 0.2%, to 6,963.74.

The Dow retreated from a record closing high set on Monday, pressured by a sharp drop in JPMorgan Chase (NYSE:JPM), which declined 4.2%. The bank’s shares slid after it reported a year-over-year decline in fourth-quarter profit, despite adjusted earnings topping expectations.

The uneven trading reflects uncertainty about the near-term outlook, driven by rising global geopolitical tensions and a series of policy proposals from President Donald Trump.

Trump has recently called for a one-year cap on credit card interest rates at 10%. He has also proposed barring defense companies from paying dividends or buying back shares, and restricting large institutional investors from purchasing single-family homes.

Meanwhile, inflation data from the Labor Department showed consumer prices rose broadly in line with expectations in December. Headline CPI increased 0.3% for the month.

Core inflation, excluding food and energy, rose 0.2% in December, below forecasts for a 0.3% increase. On an annual basis, headline inflation held steady at 2.7%, while core inflation remained unchanged at 2.6%.

Sector performance was mixed, with airline stocks under pressure, dragging the NYSE Arca Airline Index down 2.0%. Software stocks also weakened, as the Dow Jones U.S. Software Index fell 1.6%.

Banking shares were broadly lower, while energy stocks outperformed as crude oil prices jumped. Networking and steel stocks also showed pockets of strength.

Oil prices edged lower in Asian trading on Wednesday, easing from multi-week highs reached in the previous session, as markets reassessed supply risks linked to Iran against evidence of a sharp build in U.S. crude inventories.

At 20:18 ET (01:18 GMT), Brent crude futures for March were down 0.4% at $65.19 a barrel, while U.S. West Texas Intermediate (WTI) futures slipped 0.5% to $60.87 a barrel.

Both benchmarks had climbed more than 2.5% on Tuesday, lifting Brent to an 11-week high and WTI to a 10-week peak, extending a strong rally over four straight sessions.

Iran unrest underpins recent gains

The earlier surge in prices was driven by rising geopolitical tensions as intensifying anti-government protests in Iran heightened concerns over potential disruptions to crude exports from one of OPEC’s largest producers.

Traders have built in a notable geopolitical risk premium amid fears that supply flows could be interrupted.

Market unease was amplified by comments from U.S. President Donald Trump. He warned of possible military action if Iranian authorities persist with violent crackdowns on protesters and urged demonstrators to “take over your institutions,” writing on social media that “help is on the way.”

Trump has also threatened to levy tariffs on countries that continue trading with Tehran, in a bid to further isolate the regime and adding to the risk premium embedded in oil prices.

U.S. inventories surge – API

Against this backdrop, data released on Tuesday by the American Petroleum Institute showed that U.S. crude inventories rose by 5.3 million barrels last week, far exceeding market expectations for an increase of around 2 million barrels.

Gasoline stockpiles climbed by roughly 8.2 million barrels, while distillate inventories increased by about 4.3 million barrels, pointing to ample supplies of refined fuels.

Attention now turns to the official figures from the U.S. Energy Information Administration, due later on Wednesday, which are expected to provide further confirmation of crude and product inventory trends.

Gold prices climbed to fresh record levels in Asian trading on Wednesday after milder-than-expected U.S. inflation data reinforced expectations that the Federal Reserve will begin cutting interest rates, while rising geopolitical tensions in Iran supported demand for safe-haven assets.

Spot gold advanced more than 1% to a new all-time high of $4,640.13 an ounce by 01:56 ET (06:56 GMT), topping the previous record of $4,634.33/oz set in the prior session. U.S. gold futures for March also gained 1%, reaching $4,643.10/oz.

Silver posted even stronger gains, jumping over 4% to a fresh record of $91.56/oz. The metal has been lifted by a combination of robust industrial demand and renewed investor appetite for safe havens. Platinum also moved sharply higher, rising as much as 4% to $2,444.21, close to the record highs seen last month.

Soft U.S. inflation and Iran unrest lift metals

U.S. consumer price index data released on Tuesday came in below market expectations. Core CPI rose 0.2% in December and 2.6% on a year-on-year basis, undershooting forecasts and strengthening the case for future interest rate cuts. Markets are now pricing in around two rate reductions in 2026.

“Two Fed rate cuts seem perfectly achievable with the risks skewed towards a third due to the cooling jobs story,” ING analysts said in a recent note.

Lower interest rates typically favour non-yielding assets such as gold by reducing their opportunity cost.

Geopolitical risks also remained elevated. Iran has been shaken by intensifying anti-government protests that have reportedly led to around 2,000 deaths, raising fears of broader instability across the Middle East.

The unrest has drawn warnings from U.S. President Donald Trump, who has cautioned about potential military action and threatened to impose a 25% tariff on countries doing business with Iran. Trump also urged demonstrators to increase pressure on Iran’s leadership, posting on social media that they should “take over your institutions” and that “help is on its way.”

Fed independence concerns add support

Additional support for gold came from renewed worries over the independence of the U.S. central bank after the Trump administration opened a criminal investigation involving Federal Reserve Chair Jerome Powell.

Although the move unsettled markets, central bank officials and senior banking executives publicly backed Powell, stressing the importance of protecting the Fed’s autonomy from political interference.

Elsewhere in metals markets, benchmark copper futures on the London Metal Exchange edged up 0.4% to $12,237.20 a tonne, while U.S. copper futures climbed 1.1% to $6.07 a pound. Palladium prices also rallied, rising as much as 4% to $1,911.23/oz.