SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

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<li>SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.</li>
<li>
Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…</li>
</ul>


SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.

Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…


Average 19% YTD Gain in Key Mining Stocks

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Dr. Andrew Stotz, CFA

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A. Stotz Investment Research

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Equity Bottom-Up

<ul><li>Low correlation with Western stock markets, and low correlation to the Filipino market relative to its sector</li><li>Nickel prices should grow further due to global supply cut as a result of the Philippine government audit resulting in possible mine closures cutting around 50% production. NIKL is ready to benefit and gain market share</li><li>NIKL is one of the largest global suppliers of lateritic nickel ore used for stainless steel production in China, which imports 90% of nickel ore from Philippines. Its 32% domestic market share in 2015 should expand in 2017</li><li>Trades at an attractive 17CE* PEG ratio of 0.4 versus Asian Materials at a PEG of 1.2 and NIKL is net cash</li><li>Risks: Mines mentioned in the audit finally not being closed</li></ul>* Consensus Estimates

Low correlation with Western stock markets, and low correlation to the Filipino market relative to its sectorNickel prices should grow further due to global supply cut as a result of the Philippine government audit resulting in possible mine closures cutting around 50% production. NIKL is ready to benefit and gain market shareNIKL is one of the largest global suppliers of lateritic nickel ore used for stainless steel production in China, which imports 90% of nickel ore from Philippines. Its 32% domestic market share in 2015 should expand in 2017Trades at an attractive 17CE* PEG ratio of 0.4 versus Asian Materials at a PEG of 1.2 and NIKL is net cashRisks: Mines mentioned in the audit finally not being closed* Consensus Estimates

NIKL: Ore Miner Well Placed to Cash in on Mine Audits

Philippines

Apex Mining Co., Inc. engages in the exploration, development, production, and sale of gold, silver, copper, lead, zinc brass, iron, steel, and other metals and minerals in the Philippines. It operates the Maco mines located in Maco, Compostela Valley. The company is also involved in the oil exploration and development activities. The company was founded in 1970 and is headquartered in Pasig City, the Philippines.

Philex Mining Corporation produces copper concentrates, containing copper, gold, and silver. The Company was incorporated in 1955.

Atlas Consolidated Mining & Development Corporation is a Philippine company engaged in metallic mineral mining and exploration. The Company currently produces copper concentrate (with gold and silver), magnetite iron ore concentrate and laterite nickel.

Atlas Consolidated Mining & Development (AT PM)

Atok-Big Wedge Co., Inc., through its subsidiaries, operates as a gas and oil exploration and production company with a portfolio of projects in the Philippines. The company has an interest in the Service Contract 72, an oil and gas project situated offshore West of Palawan Island. It also provides stock transfer agency services. The company was formerly known as Atok-Big Wedge Mining Co., Inc. and changed its name to Atok-Big Wedge Co., Inc. in 1996. Atok-Big Wedge Co., Inc. was incorporated in 1931 and is based in Makati, the Philippines. Atok-Big Wedge Co., Inc. is a subsidiary of Boerstar Corporation.

Phinma Corporation operates property and shelter, education, energy and financial services businesses.  The Company produces galvanized and painted steel coils and sheets; builds affordable housing; holds the Philippine master franchise for a motel company; operates universities; explores for oil; generates electricity; and offers securities brokerage and transfer services.

Lepanto Consolidated Mining Company engages in the exploration and mining of mineral properties primarily in the Philippines. The company operates through three segments: Mining Activities, Service, and Others. It explores for gold, silver, copper, lead, and zinc, as well as various kinds of ores, metals, minerals, oil, gas, coal, and related by-products. The company holds interests in the Victoria and Teresa gold projects, and the Enargite copper project located in Mankayan, Benguet. It is also involved in drilling, hauling, and sawmilling activities; apartments/guesthouses and warehouses leasing activities; and insurance and real estate brokerage businesses. In addition, the company offers diamond drilling services primarily to mining companies; and manufactures, distributes, and sells industrial diamond tools, including diamond core and non-core bits, reamer shells, casing bits, diamond circular segmental and diamond gang saws, and tubular and other products for mining exploration, marble cutting, and the construction industry. Lepanto Consolidated Mining Company was founded in 1936 and is based in Makati, the Philippines.

Marcventures Holdings, Inc., through its subsidiary, Marcventures Mining and Development Corporation, primarily explores for, develops, and mines nickel ores in the Philippines. It has a mineral production sharing agreement that covers an area of approximately 4,799 hectares located in Cantilan, Surigao Del Sur. The company was incorporated in 1957 and is based in Makati City, the Philippines. Marcventures Holdings, Inc. is a subsidiary of PCD Nominee Corporation.

D&L Industries Inc is a Philippine company that customizes raw materials for the food, plastics, chemicals, and aerosol industries. The Company's major end-market is food and beverage, including snacks and QSRs. D&L Industries also manufactures and sells materials to the automotive, oil and gas, as well as personal care and home care industries.

Asiabest Group International, Inc., through its subsidiaries, engages in mining and real estate businesses. It has a management agreement with an option to buy with Geogen Corporation, a mining company that holds mining claims in the Dinapigue nickel project located in Dinapigue, Isabela. The company was formerly known as AGP Industrial Corporation and changed its name to Asiabest Group International, Inc. in March 2012. Asiabest Group International, Inc. is based in Makati City, the Philippines.

Oriental Peninsula Resources Group Inc., through its subsidiary, Citinickel Mines and Development Corporation, prospects, locates, acquires, holds, explores, develops, exploits, operates and leases mineral properties in the Philippines. The company explores for nickel, chromite, copper, manganese, magnesite, silver, gold, and other precious and non-precious minerals. It holds interests in a total contract area of 2,176 hectares comprising the Pulot mine covering 1,408 hectares located in the municipality of Sofronio Espa�ola, Palawan; and the Toronto mine covering 768 hectares located in the municipality of Narra, Palawan. The company was founded in 2006 and is based in Makati City, the Philippines.

Resolute Mining Limited explores for, produces and develops gold in Mali and Queensland, Australia. The Company's gold exploration projects include Syama and Ravenswood.

Gallantt Metal Ltd. manufactures steel.  The Company produces sponge iron, billets, and thermo mechanically treated bars.

Liuzhou Iron & Steel Co., Ltd. mainly engages in the selling of sintered products, iron and steel making and their by-products. The Company also sells rolled steel, coke and their by-products, engages in related technology export, raw materials, equipment and parts import.

Jiangsu Wuzhong Industrial Co., Ltd. develops, produces and sells medicines while engages in real estate development. The company also produces specialty chemicals.

Jiangsu Wuzhong Industrial Co., (600200 CH)

Wanguo International Mining Group Limited is  mining company. The Company is focused on the business of mining , ore processing, and the sale of concentrates in the Peoples Republic of China.

Imdex Ltd operates as a mining equipment, technology, and services company. The Company provides drilling fluids and down hole instrumentation to mining, oil and gas, water well, and civil engineering industries worldwide.

Henan Yuguang Gold&Lead Co., Ltd. smelts electrolytic lead, silver, gold, and other non-ferrous metals.  The Company also imports and exports non-ferrous metals.

Henan Yuguang Gold & Lead Co., (600531 CH)

Silver Lake Resources Limited is a mineral exploration company. The Company is focused on gold exploration in Western Australia.

SunCoke Energy, Inc. supplies high-quality coke used in the blast furnace production of steel, under long-term, take-or-pay contracts that pass through commodity and certain operating costs to customers. We utilize an innovative heat-recovery technology that captures excess heat for steam or electrical power generation. Our cokemaking facilities are located in US and Brazil.

Western Metal Materials Co., Ltd. manufactures and sells sheet, strip, foil, wire, bar and tube of rare and precious metal materials.

Nickel Asia Corporation explores for and produces nickel in the Philippines.

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Nickel Asia (NIKL PM)

Average 19% YTD Gain in Key Mining Stocks

SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold...

Singapore Exchange Ltd (SGX)

NIKL: Ore Miner Well Placed to Cash in on Mine Audits

Low correlation with Western stock markets, and low correlation to the Filipino market relative to its sector Nickel prices should grow further...

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