Breaking Down the Mining News of the Day, Money of Mine

Money of Mine

Breaking Down the Mining News of the Day

An ex-underground miner, an ex-investment banker, and an ex-equity research guy breaking down the mining news of the day. It's a bit of entertainment, information, and occasionally some alpha.

Equity Bottom-Up

Whitehaven Coal Limited mines and sells metallurgical and thermal coals to the global steel, power generation, and metallurgical industries.

<ul><li>Blackwater sell down to Nippon and Jfezenhe Steel for US 1.08 billion upfront</li><li>Deal includes selling 30% of Blackwater, reducing net debt by 150 million and potential future contingent payments</li><li>Transaction costs and transition costs higher than expected, but deal significantly impacts balance sheet and future cash flow</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Blackwater sell down to Nippon and Jfezenhe Steel for US 1.08 billion upfrontDeal includes selling 30% of Blackwater, reducing net debt by 150 million and potential future contingent paymentsTransaction costs and transition costs higher than expected, but deal significantly impacts balance sheet and future cash flowThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Whitehaven Nail the Landing, Patriot look to the Future

Yancoal Australia Ltd. provides mining services. The Company mines, sells, exports, and markets clean and coking coal. Yancoal operates internationally.

<ul><li>Company had strong half year results with 990 million in operating EBITDA and 420 million NPAT</li><li>They have 1.55 billion in cash and are debt-free, with majority of revenue from thermal coal production</li><li>Despite recent 20% drop in share price, company is on track and has good long-term prospects</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Company had strong half year results with 990 million in operating EBITDA and 420 million NPATThey have 1.55 billion in cash and are debt-free, with majority of revenue from thermal coal productionDespite recent 20% drop in share price, company is on track and has good long-term prospectsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Yancoal Australia Limited provides coal mining services. The Company mines, processes, and sells pure-coal, metallurgical coal, and more. Yancoal Australia also exports its products.

<ul><li>Yancoal’s (YAL) net profit came in at A$420mn in 1H24 (-57% YoY) which is slightly below our expectation due to higher-than-expected unit cost.</li><li>Unlike that in 2022 and 2023, YAL did not propose interim dividend this time despite a strong net cash position (A$1.42bn as at end-Jun).</li><li>Therefore, we do not rule out the possibility that YAL is getting closer to a potential M&amp;A deal to boost product diversification and long-term growth. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yancoal’s (YAL) net profit came in at A$420mn in 1H24 (-57% YoY) which is slightly below our expectation due to higher-than-expected unit cost.Unlike that in 2022 and 2023, YAL did not propose interim dividend this time despite a strong net cash position (A$1.42bn as at end-Jun).Therefore, we do not rule out the possibility that YAL is getting closer to a potential M&amp;A deal to boost product diversification and long-term growth. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yancoal Australia (3668 HK) - 1H24 Net Profit -57% YoY Below Expectations

New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

a2 Milk Company Limited produces cow milk which is free of a protein called beta casein A1.  The Company offers its products in Australia and New Zealand.

<ul><li>The a2 Milk Company's (ATM) FY24 result provided little new information to change our view on the medium/long-term earnings outlook, but did affirm: (1) the solid market share growth, consistent with our data tracking (positively led by early stage products), and (2) the challenging market backdrop (competition and industry volumes), which will continue to be a headwind to margin expansion over the medium-term.</li><li>The canary in the coal mine, where investors may feel uneasy following the FY24 result, is ATM calling out supply issues from its key supplier Synlait Milk (SML.NZ).</li><li>FY25 EBITDA is set to be adversely impacted by at least -NZ$15m as a result, but more importantly it raises questions: (1) that similar issues could occur in the future, and (2) if it will impact new customer acquisition (the timing of which is particularly unfortunate, given CY24 births growth). </li></ul>

The a2 Milk Company's (ATM) FY24 result provided little new information to change our view on the medium/long-term earnings outlook, but did affirm: (1) the solid market share growth, consistent with our data tracking (positively led by early stage products), and (2) the challenging market backdrop (competition and industry volumes), which will continue to be a headwind to margin expansion over the medium-term.The canary in the coal mine, where investors may feel uneasy following the FY24 result, is ATM calling out supply issues from its key supplier Synlait Milk (SML.NZ).FY25 EBITDA is set to be adversely impacted by at least -NZ$15m as a result, but more importantly it raises questions: (1) that similar issues could occur in the future, and (2) if it will impact new customer acquisition (the timing of which is particularly unfortunate, given CY24 births growth). 

The A2 Milk Company - FY24 Result — Canary in the Coal Mine?

India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Thematic (Sector/Industry)

<ul>
<li>Swan Energy to Sell Stake in FSRU to Turkey's Botas for $400 Million</li>
<li>L&amp;T Realty and Valor Estate Collaborate on INR 8,500 Crore Project in Mumbai’s Bandra West</li>
<li>Coal India to Face Penalties for Non-Supply of E-Auctioned Coal in Landmark Decision</li>
</ul>


Swan Energy to Sell Stake in FSRU to Turkey's Botas for $400 Million
L&amp;T Realty and Valor Estate Collaborate on INR 8,500 Crore Project in Mumbai’s Bandra West
Coal India to Face Penalties for Non-Supply of E-Auctioned Coal in Landmark Decision


# 47 India Insight: Swan Energy Stake Sell, L&T Realty Collaboration, Coal India Face Penalties