Category

Energy & Materials Sector

Daily Brief Energy/Materials: Freeport Mcmoran, Linde India Ltd, Pan American Silver, Orezone Gold , ADX Energy Ltd, Steel Dynamics, Baker Hughes, Halliburton Co and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Freeport-McMoRan Inc.: Growth Through Large-Scale Mining Operations in Large and High-Grade Copper and Gold Mining Districts! – Major Drivers
  • Promoter Influence in RPTs: Linde India’s Quest for Fair Business Allocations
  • Pan American Silver – La Arena divestment
  • Orezone Gold Corp – Mining Monthly: April Edition
  • ADX Energy (ASX: ADX): Important step to unlock Sicily
  • Steel Dynamics: How Long Will The Stability in Demand Across Operating Platforms Last? – Major Drivers
  • Baker Hughes Company: The 6 Fundamental Elements Driving Its Performance In 2024 & Beyond! – Major Drivers
  • Halliburton Company: A Tale Of Technological Innovation & A New Acquisition! – Major Drivers


Freeport-McMoRan Inc.: Growth Through Large-Scale Mining Operations in Large and High-Grade Copper and Gold Mining Districts! – Major Drivers

By Baptista Research

  • In its first quarter earnings, Freeport-McMoRan reported successful results in executing its business strategies.
  • The incoming CEO, Kathleen Quirk, outlined the company’s strategic focus on copper, citing the growing global demand for the metal in numerous sectors, particularly in electrification.
  • The long-term trends point to tight market conditions due to constrained existing supplies, limited major new projects, and extended deadlines for supply development.

Promoter Influence in RPTs: Linde India’s Quest for Fair Business Allocations

By Nimish Maheshwari

  • Linde India entered into related party transaction without shareholders approval.
  • Further company also allocated future businesses and existing business of Linde India to its sister concern Praxair
  • Whether existing RPTs material in nature and need shareholder approval?  Whether the allocation of future and existing business from a listed entity to another promoter company amount to a RPT?

Pan American Silver – La Arena divestment

By Edison Investment Research

Pan American Silver (PAAS) has announced a sale of the La Arena and La Arena II projects to Zijin Mining for US$245m in cash, US$50m in a contingent payment and a 1.5% NSR gold royalty. La Arena II is a copper and gold sulphide deposit that sits underneath the currently producing La Arena gold project. We view the transaction as positive for PAAS, given La Arena’s very short mine life, significant capex required to bring La Arena II into production and the fact that copper is not PAAS’s core commodity.


Orezone Gold Corp – Mining Monthly: April Edition

By Atrium Research

  • Following a big breakout in March, gold pressed on hitting new all-time highs, however, lost steam and fell towards the end of the month up just 2% in April.
  • Silver outperformed gold, being up 5% on the month.
  • Copper held its big gains from early in the month, up 13% to $4.6/lb.

ADX Energy (ASX: ADX): Important step to unlock Sicily

By Auctus Advisors

  • ADX has raised A$13.5 mm of new equity priced at A$0.105 per share.
  • One free-attaching option will be issued for evert two placement shares with an exercise price of A$0.15 per share and an expiry date of 08/05/2026.
  • The proceeds from the raise will fund (1) the production testing of the 450 m gas column encountered at the Welchau exploration well (the well might also be deepened to assess the exploration potential below the current total depth of the well), (2) the residual drilling cost (net of the carry provided by MND) of a gas exploration well on the ADX-AT-I licence, (3) the residual cost (net of the carry provided by MND) of the drilling and tie-in the Anshof-2A sidetrack and (4) upgrades to the gas processing facilities at ADX’s Vienna Basin fields.

Steel Dynamics: How Long Will The Stability in Demand Across Operating Platforms Last? – Major Drivers

By Baptista Research

  • The first quarter 2024 results for Steel Dynamics Inc., display the strong performance of the company when considering their financial and operational undertakings.
  • Reaching near-record quarterly steel shipments of 3.3 million tons, Steel Dynamics demonstrated impressive control over its operations.
  • Four new value-added flat rolled steel coating lines were introduced that contribute to a product diversification that included 1.1 million tons of higher-margin products.

Baker Hughes Company: The 6 Fundamental Elements Driving Its Performance In 2024 & Beyond! – Major Drivers

By Baptista Research

  • Baker Hughes Company’s recent results offers mixed signals for investors, delivering a blend of positive and negative takeaways.
  • The solid first-quarter results highlight the company’s resilience despite external volatility, with the order book and margin development indicating a path towards the achievement of full-year guidance.
  • A significant 11% year-on-year increase in the quarterly dividend suggests a positive outlook for investors, aligning with the company’s commitment to enhance shareholder returns.

Halliburton Company: A Tale Of Technological Innovation & A New Acquisition! – Major Drivers

By Baptista Research

  • Halliburton, one of the largest oilfield services companies globally, recently held its first-quarter 2024 conference call that demonstrated robust performance.
  • The company delivered a total revenue of $5.8 billion and an operating margin of 17%.
  • Both divisions showcased improvement in margin year-over-year.

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Daily Brief Energy/Materials: Rio Tinto Ltd, Criterium Energy, Sintana Energy , VAALCO Energy and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Selected European HoldCos and DLC: April’24 Report
  • Criterium Energy Ltd (TSX-V: CEQ): On track
  • Sintana Energy Inc. (TSX-V: SEI): Chevron farm-in rerates a new area in Namibia
  • VAALCO Energy, Inc. – Diversified Asset Portfolio Supports Free Cash Flow


Selected European HoldCos and DLC: April’24 Report

By Jesus Rodriguez Aguilar

  • The Discounts to NAV of covered holdcos mainly widened during April. Discounts to NAV: C.F.Alba, 49.1% (vs. 47.3%); GBL, 39% (vs. 38.1%); Heineken Holding, 17.3% (vs 16.7%); 
  • Industrivärden C, 4.7% (vs. 1.4%); Investor B, 8.3% (vs. 6.1%); Porsche Automobile Holding, 41.1% (vs. 45.4%). Rio DLC spread tightened to 22.5% (vs. to 24.9%).
  • What seems interesting: Porsche SE vs. listed assets and the Rio DLC (long RIO LN/short RIO AU).

Criterium Energy Ltd (TSX-V: CEQ): On track

By Auctus Advisors

  • • The work-over programme has started with the first two work-overs having added a total of ~40 bbl/d.
  • The third work-over was not completed as damaged equipment was encountered downhole.
  • • The second tranche of work-overs will start in May.

Sintana Energy Inc. (TSX-V: SEI): Chevron farm-in rerates a new area in Namibia

By Auctus Advisors

  • Chevron is acquiring an 80% WI in PEL82 in the Walvis Basin, offshore north Namibia.
  • As a result of the transaction NAMCOR and Custos’ 10% (each) residual interest will be carried. Sintana holds 49% of Custos.
  • The Orange Basin’s acreage is now in the hands of multiple large companies.

VAALCO Energy, Inc. – Diversified Asset Portfolio Supports Free Cash Flow

By Water Tower Research

  • A diverse mix of producing assets in Gabon, Egypt, and Canada, coupled with future development projects in Equatorial Guinea and Cote d’Ivoire, positions VAALCO with an asset base that could generate substantial free cash flow to reinvest for growth and continue returning cash to shareholders in the coming years.
  • VAALCO closed the Svenska acquisition on April 30, 2024, for $40.2 million in cash.
  • The primary asset is a 27.39% non- operated working interest in the deepwater producing Baobab field in Block CI-40 offshore Cote d’Ivoire.

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Daily Brief Energy/Materials: Sumitomo Chemical, EcoPro Materials, Shin Etsu Chemical, GCC SAB de CV, West China Cement, Panoro Energy ASA, OCI NV, Orezone Gold , Cleveland-Cliffs Inc , Rent.com.au Ltd and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Sumitomo Chemical (4005): Up Is Down
  • End of Mandatory Lock-Up Periods for 54 Companies in Korea in May 2024
  • Shin-Etsu (4063) – Too High, Too Fast
  • GCC (Outperform): Results 1Q24; Positive Q-Report Beating Our Estimates
  • Morning Views Asia: Nickel Industries , West China Cement
  • Panoro Energy ASA (OSE: PEN): Drilling to Restart in EG in June.
  • Oci N.V. (OCI NA) – Tuesday, Jan 30, 2024
  • Orezone Gold Corp (ORE.) – Monday, Jan 29, 2024
  • Cleveland-Cliffs Inc.: Focus On Decarbonization
  • Rent.com.au Ltd – Best ever revenue result, RentPay surpasses $250m


Sumitomo Chemical (4005): Up Is Down

By Michael Allen

  • Sumitomo issued new guidance for the year to 3/25 that was 40% higher than consensus estimates, but the stock cratered almost 5%.
  • We were able to think of at least 6 explanations for this odd reaction – all of them irrational.  
  • A reasonable person listening to the call should have been pleased by almost all that was new information. 

End of Mandatory Lock-Up Periods for 54 Companies in Korea in May 2024

By Douglas Kim

  • We discuss the end of the mandatory lock-up periods for 54 stocks in Korea in May 2024, among which 4 are in KOSPI and 50 are in KOSDAQ.
  • These 54 stocks on average could be subject to further selling pressures in May and could underperform relative to the market.
  • The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in May include EcoPro Materials, Enchem, and Gaonchips. 

Shin-Etsu (4063) – Too High, Too Fast

By Michael Allen

  • On April 24, Shin-Etsu (4063) posted its fifth consecutive OP decline and guided for a sixth, but the stock has outperformed Topix by 22% in the past 12 months. 
  • OP for the year ended March 2024 was JPY141.5bn, vs. consensus estimates of JPY168.9bn. This was the fifth consecutive miss, and the fourth of more than 10%. 
  • The Chinese economy is killing the company’s core core Polyvinyl Chloride Resins business and seemingly interminable inventory issues are holding back a recovery in the semiconductor materials business. 

GCC (Outperform): Results 1Q24; Positive Q-Report Beating Our Estimates

By Actinver

  • GCC (Outperform): posted positive results, which are above our estimates.
  • Higher prices in cement and ready-mix supported solid results.
  • Consolidated EBITDA increased +32% YoY, while the EBITDA margin reached 30.4% (+4.6 pp. YoY).

Morning Views Asia: Nickel Industries , West China Cement

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Panoro Energy ASA (OSE: PEN): Drilling to Restart in EG in June.

By Auctus Advisors

  • Positive update in Gabon. 1Q24 gross production was 24,840 boe/d increasing to 29,800 boe/d to date in 2Q24 (Panoro WI: 17.5%).
  • The increasing production reflects the first Hibiscus South well coming on stream in March and encouraging production performance from two wells on ESP at Hibiscus.
  • A third Hibiscus well continues to produce on natural flow at high rate.

Oci N.V. (OCI NA) – Tuesday, Jan 30, 2024

By Value Investors Club

  • OCI N.V. is selling off assets to focus on a more streamlined operation and benefit from energy transition trends
  • The sale of OCI’s stake in Fertiglobe to ADNOC for $3.62 billion was a result of pressure from Inclusive Capital, led by Jeffrey Uben
  • The company will have a strong net cash position and is positioned to capitalize on future opportunities at a low multiple of normalized EBITDA

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.


Orezone Gold Corp (ORE.) – Monday, Jan 29, 2024

By Value Investors Club

  • Orezone owns a 90% stake in the Bomboré Gold Mine in Burkina Faso which is already in production and generating cash
  • The mine faced challenges in 2023 but saw improvements in ore processing and gold production in Q4
  • Completion of the Bomboré powerline project has reduced costs, presenting an attractive opportunity for investors in the growing gold sector in West Africa

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.


Cleveland-Cliffs Inc.: Focus On Decarbonization

By Baptista Research

  • Cleveland-Cliffs Inc in their Q1 2024 Earnings has placed particular emphasize on their tactic of share buybacks as an essential capital allocation method.
  • During this time period, the firm was able to procure over 30 million of its own shares, utilizing approximately $608 million from a previous $1 billion share buyback program announced in 2022.
  • Over the past few years, the company’s diluted share count has been lowered by over 100 million shares, reflecting a significant 17% reduction and pointing to an average purchase price of $18.79 per share, a price point considerably lower than the current trading price.

Rent.com.au Ltd – Best ever revenue result, RentPay surpasses $250m

By Research as a Service (RaaS)

  • Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through its technology platform and a growing number of aligned transactional services.
  • The company has reported its best ever quarterly revenue result with total revenue increasing 41% on the previous corresponding period (pcp) to $0.89m.
  • The result was driven by a 25% year-on-year improvement in search portal revenue and a 144% increase in RentPay revenue.

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Daily Brief Energy/Materials: WorleyParsons Ltd, Deep Yellow Ltd, Anglo American, Copper, Iron Ore, Premier Energies Limited, Schlumberger Ltd, HI-Tech Pipes, Kinder Morgan and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Worley Placement – Largest Shareholder Selling at an Attractive Discount
  • Worley (WOR): Impact of Dar Group’s A$1.4bn Sale
  • ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance
  • Anglo American (AGL, AAL): JSE Index Effects of Potential Takeover or Restructuring
  • Global Commodities: Takeaways from CESCO Copper Week — The only way out is up
  • Iron Ore and The China Property/Auto Stimulus Angle
  • Premier Energies Pre-IPO Tearsheet
  • Schlumberger Limited: The ChampionX Acquisition
  • Hi-Tech Pipes: A.G.E. Analysis
  • Kinder Morgan Inc.: Expected Growth in Power Demand Positively Impacting Future Revenues! – Major Drivers


Worley Placement – Largest Shareholder Selling at an Attractive Discount

By Clarence Chu

  • DAR Group is looking to raise A$1.5bn (US$983m) from selling the majority of its stake in WorleyParsons Ltd (WOR AU).
  • DAR had attempted to privatize Worley in late 2016. Failing that attempt, it has been adding to its stake over the years.
  • As the deal isn’t a cleanup, there will be an overhang post-deal, although its a relatively small one at just 4.5% of DAR’s remaining stake; locked up for 30 days

Worley (WOR): Impact of Dar Group’s A$1.4bn Sale

By Brian Freitas

  • Dar Al-Handasah has sold 19% of WorleyParsons Ltd (WOR AU) overnight at A$14.35/share, a 12% discount to the last close, to raise A$1.44bn (US$943m).
  • This reduces Dar’s stake in WorleyParsons Ltd (WOR AU) to 4.5% and will trigger upweights from index providers in the next few days.
  • The stake sale could also lead to a re-rating of the stock with a large blocking stake off the share register.

ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance

By Brian Freitas


Anglo American (AGL, AAL): JSE Index Effects of Potential Takeover or Restructuring

By Charlotte van Tiddens, CFA

  • In this note we assess the JSE Top 40 index effect of an Anglo American restructuring or takeover by BHP, assuming the Amplats and Kumba stakes are spun out.
  • We also explore the details of BHP’s initial offer and what the market could be pricing with respect to a potential revision of BHP’s stock offer (minimum).
  • If Kumba is unbundled from Anglo American, we expect the stock to enter the JSE Top 40. Potential deletes are included in the note.

Global Commodities: Takeaways from CESCO Copper Week — The only way out is up

By At Any Rate

  • Copper market may be running ahead of a fundamental story, with extreme tightening in the copper concentrate market
  • Chinese demand has stepped back due to surging copper prices, but expected to acclimatize to higher price levels
  • Supply side challenges may take a couple more quarters to resolve, leading towards a tighter refined market in the future and potential supply shortfalls by 2030.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.


Iron Ore and The China Property/Auto Stimulus Angle

By Sameer Taneja

  • The short term is suddenly looking bullish for iron ore, as rumors abound that tier-1 cities in China may remove home-buying restrictions in May, and auto stimulus measures were announced. 
  • Cities like Chengdu and Nanjing have already announced measures to make home-buying more attractive, such as removing purchase qualifications and pilot programs for old-for-new home housing. 
  • We like 62% Fe and see it trade up to its upper limit of 130 USD/ton (vs. current 117 USD/ton). On equities, we like Vale (VALE US) .

Premier Energies Pre-IPO Tearsheet

By Clarence Chu

  • Premier Energies Limited (0377949D IN) is looking to raise US$300m in its upcoming India IPO. The bookrunners on the deal are JP Morgan, Kotak, and ICICI Securities.
  • Premier Energies (Premier) is a manufacturer of solar photovoltaic (PV) cells, and solar modules. It also executes EPC projects and provides follow-up O&M services.
  • As per Frost & Sullivan (F&S), the firm was the second largest domestic manufacturer in terms of annual installed capacity as of Mar 2024.

Schlumberger Limited: The ChampionX Acquisition

By Baptista Research

  • During Schlumberger’s (SLB) first quarter 2024 earnings, the company’s evenue grew by 13% YoY, and EBITDA grew in the mid-teens, in line with SLB’s full-year financial ambitions.
  • International activity fuelled the growth, with revenue increases observed in 21 of the 25 international GeoUnits.
  • North America, however, showed a decrease in activity, resulting in a 6% YoY fall in revenue.

Hi-Tech Pipes: A.G.E. Analysis

By Nitin Mangal

  • HI-Tech Pipes (HITECH IN) is engaged in manufacturing of ERW Steel Round & Section Pipes, cold Rolled Strips, coils, and colour coated sheet, etc. and has distribution across India.
  • The company has grown impressively in the last 5-7 years and has seen improved balance sheet and working capital situation.
  • However, tapering return ratios, prolonged concern on cash conversion and erosion of margins are few talking points that should be taken into account.

Kinder Morgan Inc.: Expected Growth in Power Demand Positively Impacting Future Revenues! – Major Drivers

By Baptista Research

  • Kinder Morgan’s latest quarterly earnings confirmed that the company had a robust quarter.
  • The Chairman of the Board, Mr.
  • Rich Kinder, highlighted the growth potential in the demand for natural gas, driven substantially by the increasing demand from new and expanding data centers, especially those required to support Artificial Intelligence (AI).

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Daily Brief Energy/Materials: Azure Minerals, Sumitomo Chemical, Anglo American, Venture Minerals and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Merger Arb Mondays (29 Apr) – Azure, Silver Lake, Roland DG, CF Logistics, China TCM, Hollysys
  • Sumitomo Chemical (4005): Potential Posterchild of Japan’s Resurgence
  • BHP to Consider Sweetened Proposal for Anglo
  • Venture Minerals Ltd – Jupiter REE discovery expands the portfolio



Sumitomo Chemical (4005): Potential Posterchild of Japan’s Resurgence

By Michael Allen

  • Sumitomo Chemicals aims to transform from a cyclical company with low market share in declining markets into a focused entity with high market share in secular growth markets.
  • We estimate that the stock’s fair value is about 140% above the current price.
  • Results meeting on April 30 should confirm that company is on track in returning to positive cash flow and selling off core assets. 

BHP to Consider Sweetened Proposal for Anglo

By Jesus Rodriguez Aguilar

  • On 27 April, Reuters reported that BHP is considering making an improved offer for Anglo American after its initial proposal was rejected. Anglo’s shares trade at 0.3% discount to proposal.
  • BHP is not paying any control premium. Despite its robust portfolio and recent share price appreciation, Anglo trades at a 18% discount compared to the sum of its parts (3018p). 
  • Interloper risk is high. Antitrust risk seems low. As a defence, Anglo may conduct some portfolio simplification to unlock value. I would be long at current prices.

Venture Minerals Ltd – Jupiter REE discovery expands the portfolio

By Research as a Service (RaaS)

  • Venture Minerals Limited (ASX:VMS) is an ASX-listed critical minerals explorer with a focus on rare earth elements (REE), precious metals and tin-tungsten deposits in Western Australia and Tasmania.
  • The company has recently announced significant drilling assay results from its Jupiter prospect within the Brothers rare earths element project in WA which potentially positions VMS with one of the largest clay-hosted REE prospects in Australia.
  • VMS is also undertaking a feasibility study on underground mining at its Mount Lindsay tin-tungsten project in Tasmania and says it has appointed advisers, Argonaut, to undertake a strategic review of its nearby Riley iron ore mine.

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Daily Brief Energy/Materials: BHP Group Ltd, CSR Ltd and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • (Mostly) Asia-Pac M&A: Mimasu Semi, Tietto Minerals, CSR, CPMC, Roland DG, IClick Interactive
  • CSR (CSR AU): 13th June Shareholder Vote


(Mostly) Asia-Pac M&A: Mimasu Semi, Tietto Minerals, CSR, CPMC, Roland DG, IClick Interactive

By David Blennerhassett


CSR (CSR AU): 13th June Shareholder Vote

By David Blennerhassett

  • After pitching an indicative Offer to CSR (CSR AU) shareholders of A$9/share by way of a Scheme on the 21st Feb, Saint-Gobain (SGO FP) firmed terms on the 26th Feb.  
  • $9.00 is a knockout Offer. The business combination has been unanimously approved by the boards of both companies. Conditions include CSR’s shareholder approval and FIRB signing off. 
  • The Scheme Booklet is now out, with a Scheme Meeting to be held on the 13th June. Expected implementation on the 9 July. IE says fair & reasonable. 

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Daily Brief Energy/Materials: Anglo American, Ganesh Benzoplast , Loma Negra Cia Ind-Spon Adr, Southern Energy Corp and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • BHP/Anglo American: A Decarbonising Solution
  • Promoter Family Feud and Fund Diversion : A Rare Saga of Governance Issue at Ganesh Benzoplast
  • Loma Negra C.I.A.S.A. (LOMA) – Friday, Jan 26, 2024
  • Southern Energy Corp. – Managing the Balance Sheet in the Context of Low US Gas Prices


BHP/Anglo American: A Decarbonising Solution

By David Blennerhassett

  • BHP (BHP AU)‘s all-scrip unsolicited Offer for Anglo American (AAL LN), zeroes in on AAL’s copper assets as demand for the metal increases for use in EVs and renewable power.
  • The proposal has been labelled highly opportunistic by some shareholders and South African politicians. And that the value of AAL’s Chilian/Peruvian copper mines are obscured by its sprawling business interests.
  • The Offer remains conditional and non-binding. A transaction hinges off AAL spinning off its South African iron ore and platinum businesses. Expect AAL to reject terms, but remain engaged. 

Promoter Family Feud and Fund Diversion : A Rare Saga of Governance Issue at Ganesh Benzoplast

By Nimish Maheshwari

  • GBL was touted as a turnaround story as few investors have shown faith by infusing the funds for further expansion
  • In a rare instance, one of the promoter member fraudlently took the loan of 45 crores in the name of the company
  • What lies ahead is the case possible fund diversion and promoter family feud

Loma Negra C.I.A.S.A. (LOMA) – Friday, Jan 26, 2024

By Value Investors Club

  • Recommend long position in Loma Negra Compania Industrial Argentina ADR´s (LOMA)
  • Top cement and ready mix producer in Argentina with potential for growth
  • Undervalued stock trading at $7.18/ADR with potential for significant upside to $11-$16/ADR, offering 50-120% returns from current levels

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.


Southern Energy Corp. – Managing the Balance Sheet in the Context of Low US Gas Prices

By Auctus Advisors

  • 4Q23 production of 2,793 boe/d and YE23 net debt of US$26.7 mm were in line with forecasts.
  • The GH 14-06 #3 Upper Selma Chalk well delivered an IP30 rate of 5.2 mmcf/d.
  • This is a good rate compared to the other Upper Selma Chalk wells of 2022-2023 which had IP30 rates of 3.3-6.5 mmcf/d.

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Daily Brief Energy/Materials: Vale , Indika Energy, Gold, Range Resources, Chord Energy , Frontline , Antero Midstream Corp, Kinetik Holdings , Matador Resources Co, Murphy Oil Corp and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Iron Ore Comes Roaring Back! BHP-Anglo, VALE, FMG: What’s Hot In the Space
  • Morning Views Asia: China Oil And Gas, Continuum Green Energy, Indika Energy
  • Chinese Speculative Activity Driving Gold to Record Highs
  • Range Resources Corporation: Initiation Of Coverage – Does Their Capital Expenditure Cadence & Guidance Warrant A Bullish Rating? – Major Drivers
  • Chord Energy Corporation: Initiation Of Coverage – Will The Enerplus Merger Yield Solid Synergies? – Major Drivers
  • Frontline Ltd.: Initiation Of Coverage – How Are They Impacted By The Rising Volatility & Firming Trends In The Market? – Major Drivers
  • Antero Midstream Corporation: Initiation Of Coverage – Can It Really Have Sustained Earnings in the Coming Years? – Major Drivers
  • Kinetik Holdings: Initiation Of Coverage – Midstream Logistics & Pipeline Transportation Crucial For Future Growth? – Major Drivers
  • Matador Resources Corporation: Initiation Of Coverage – Extension of Midstream Infrastructure
  • Murphy Oil Corporation: Will Its Investments In The Eagle Ford & Vietnam Pay Dividends?


Iron Ore Comes Roaring Back! BHP-Anglo, VALE, FMG: What’s Hot In the Space

By Sameer Taneja


Morning Views Asia: China Oil And Gas, Continuum Green Energy, Indika Energy

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Chinese Speculative Activity Driving Gold to Record Highs

By Suhas Reddy

  • Gold prices touched a record high in April despite headwinds due to robust demand from Chinese speculators.
  • Asian Gold ETFs saw a net inflow of funds in April, while American and European Gold ETFs witnessed net outflows.
  • Demand for gold continues to be driven by central banks of emerging markets like China, India, and Türkiye.

Range Resources Corporation: Initiation Of Coverage – Does Their Capital Expenditure Cadence & Guidance Warrant A Bullish Rating? – Major Drivers

By Baptista Research

  • Range Resources’ management highlighted strong operational performance from Q4 2023 earnings.
  • The company successfully executed its 2023 plan, driving operational improvements, generating free cash flow with leading capital efficiency, and prudently allocating that cash flow to balance returns for shareholders and further debt reduction.
  • The reserves update revealed 16 positive performance revisions, demonstrating the repeatable nature of the company’s Marcellus inventory.

Chord Energy Corporation: Initiation Of Coverage – Will The Enerplus Merger Yield Solid Synergies? – Major Drivers

By Baptista Research

  • Chord Energy has recently revealed its business consolidation with Enerplus during their fourth quarter 2023 earnings call.
  • The merger will create a premier Williston Basin company, adding significant value to both companies.
  • It offers the opportunity to leverage their combined assets, workforce, and best practices towards the operational, financial, and strategic growth of their unified organization.

Frontline Ltd.: Initiation Of Coverage – How Are They Impacted By The Rising Volatility & Firming Trends In The Market? – Major Drivers

By Baptista Research

  • Frontline Ltd had a good financial performance in Q4 2023 even though they didn’t witness the aggressive bull market they were hoping for.
  • They achieved positive returns on their VLCC fleet, recording $42,300 per day, $45,700 per day on their Suezmax, and $42,900 per day on their LR2/Aframax fleet.
  • The strong performance of the Suezmax and LR2 markets led to higher TCNE rates which benefited their year-end earnings.

Antero Midstream Corporation: Initiation Of Coverage – Can It Really Have Sustained Earnings in the Coming Years? – Major Drivers

By Baptista Research

  • Antero Midstream’s 2023 performance has been analytically described as financially and operationally successful, with record EBITDA earnings of $981 million and an 18% return on invested capital.
  • Since the Initial Public Offering in 2014, EBITDA has shown robust growth, with an 18% compound annual growth rate, reflecting the company’s high-quality assets and operational success.
  • The 2024 EBITDA is expected to reach an estimated midpoint of $1.04 billion from Antero Resources’ maintenance capital program.

Kinetik Holdings: Initiation Of Coverage – Midstream Logistics & Pipeline Transportation Crucial For Future Growth? – Major Drivers

By Baptista Research

  • Kinetik reported its Q4 2023 results and 2024 financial guidance, starting on an upbeat note by achieving record processed gas volumes each quarter and delivering projects on time and within budget.
  • The tireless focus on execution led to several strategic growth projects, priorities, and the company’s vision.
  • Moreover, various accomplishments in terms of system-wide treating and blending capabilities uniquely position Kinetik to support the next phase of growth in the basin, including treating increasingly important trends for producers developing shallower benches.

Matador Resources Corporation: Initiation Of Coverage – Extension of Midstream Infrastructure

By Baptista Research

  • Matador Resources Company had a strong performance over the past year, with increases in production, revenue, lease acreage, inventory and dividends.
  • They also managed to decrease costs including Lease Operating Expenses (LOE), drilling costs, General and Administrative (G&A) costs, and debt.
  • This overall performance indicates a positive direction for the company, contributing both to investor confidence and company stability.

Murphy Oil Corporation: Will Its Investments In The Eagle Ford & Vietnam Pay Dividends?

By Baptista Research

  • Murphy Oil Corporation had a strong year in 2023, focusing on deleveraging, executing, exploring, and returning.
  • The company achieved its $500 million debt reduction target for year and has reduced debt by $1.7 billion since the end of 2020.
  • Production averaged to 186,000 barrels equivalent per day for the year with 52% of the volumes being oil.

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Daily Brief Energy/Materials: Amman Mineral Internasional, OceanaGold Philippines, China Hongqiao, Indika Energy, Southwestern Energy Co, Weatherford International , DS Smith PLC, NOV , Panoro Energy ASA, Chemours Co/The and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • IDX30/​​LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks
  • OceanaGold Philippines IPO – Updated Thoughts on Valuation – Too Expensive Even at This Price
  • Morning Views Asia: China Hongqiao
  • Indika Energy – Event Flash – Launches Tender Offer And 5NC2 Notes Offering – Lucror Analytics
  • Southwestern Energy Company: These Are The 4 Pivotal Factors Influencing Its Growth!
  • Weatherford International plc: Initiation Of Coverage – Does It Have A Sustainable Economic Moat? – Major Drivers
  • International Paper/DS Smith: Spread
  • NOV Inc: How Are They Adapting Their Business Strategy To Cater To The Increasing Demand?
  • Panoro Energy ASA (OSE: PEN): Drilling to restart in EG in June. 70% 2P reserve replacement ratio in 2023
  • The Chemours Company: Initiation Of Coverage – A Deep Dive Analysis Of Its Seemingly Robust Financial Situation – Major Drivers


IDX30/​​LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks

By Brian Freitas


OceanaGold Philippines IPO – Updated Thoughts on Valuation – Too Expensive Even at This Price

By Ethan Aw

  • OceanaGold Philippines (OGP PM) is looking to raise up to US$106m in its Philippines IPO.
  • OceanaGold Philippines (OGPI) is a producer of gold and copper in the Philippines, and a subsidiary of OceanaGold Corporation, a Toronto Stock Exchange (TSX) listed gold mining and exploration company.
  • In our previous note, we talked about the company’s historical performance and shared our quick thoughts on valuation. In this note, we share our updated thoughts on valuation.

Morning Views Asia: China Hongqiao

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Indika Energy – Event Flash – Launches Tender Offer And 5NC2 Notes Offering – Lucror Analytics

By Trung Nguyen

Indika Energy has launched a tender offer for its USD 8.25% 2025 notes, with USD 534 mn outstanding. For each USD 1,000 in principal, the tender consideration is USD 962.5 and early tender consideration is USD 50, leading to a total consideration of USD 1,012.5. Indika is concurrently launching a USD 144A/RegS offering. Holders of the 8.25% ’25s may request to receive priority allocation on the new notes.

We view initial price talk of 8.875% as attractive, given the company’s robust credit profile and improving debt maturity profile.


Southwestern Energy Company: These Are The 4 Pivotal Factors Influencing Its Growth!

By Baptista Research

  • Southwestern Energy’s third quarter 2023 earnings reflected a mixed but overall optimistic outlook for the company’s financial and operational performance.
  • On the positive side, the company has demonstrated consistent progress in optimizing free cash flow generation and capital investment, a trend that the company expects to maintain.
  • An improving macro environment, driven primarily by growing liquefied natural gas (LNG) demand, further enhances this outlook.

Weatherford International plc: Initiation Of Coverage – Does It Have A Sustainable Economic Moat? – Major Drivers

By Baptista Research

  • Weatherford International reported an exceptional year in 2023 with a revenue growth of 19%, adjusted EBITDA margins expanding 423 basis points to 23.1% and adjusted free cash flow of $651 million.
  • The growth was noted across all segments, particularly with DRE and WCC seeing high teens growth due to increased drilling and completions activity.
  • The company has achieved significant growth in international markets and even managed to grow margins in North America despite a decline in revenue, indicating an effective change in the operating culture.

International Paper/DS Smith: Spread

By Jesus Rodriguez Aguilar

  • Following the withdrawal of Mondi PLC (MNDI LN) from the contest to acquire DS Smith PLC (SMDS LN), the gross spread to the deal turned negative (from >10%).
  • At the median 7.07x EV/Fwd NTM EBITDA (within the range of former transactions), the implied equity value of DS Smith would be 388.4p. (vs. an IBES consensus TP of 395p).
  • IP is giving away most of the synergies. Spread is 1.91%/2.86% (gross, annualized assuming settlement by Y/E). I would wait for the spread to widen, before setting it up.

NOV Inc: How Are They Adapting Their Business Strategy To Cater To The Increasing Demand?

By Baptista Research

  • National Oilwell Varco (NOV) reported a solid fourth quarter of 2023, with revenues up 7% sequentially to $2.3 billion.
  • This growth was driven by strong offshore and international demands and a continued improvement in the supply chain.
  • However, the company identified several challenges in its performance, including a 5% sequential decline in North American land revenues and an unexpected $20 million impact on EBITDA due to the devaluation of the Argentine peso.

Panoro Energy ASA (OSE: PEN): Drilling to restart in EG in June. 70% 2P reserve replacement ratio in 2023

By Auctus Advisors

  • A drilling contract has been awarded for the Noble Venturer drill ship to recommence infill drilling at the Ceiba Field and Okume Complex in June.
  • Owing to limitations arising from the shallower water depth at one of the planned infill well locations, the drilling campaign will now comprise of two infill wells.
  • The third infill well will be deferred as part of a potential future drilling campaign.

The Chemours Company: Initiation Of Coverage – A Deep Dive Analysis Of Its Seemingly Robust Financial Situation – Major Drivers

By Baptista Research

  • The Chemours Company’s fourth quarter and year-end 2023 earnings revealed a mixed bag of results, reflecting both the challenges and potential for the company.
  • On one side, the company faced various hurdles including softness in economically sensitive end markets, higher input costs, and extended outage at one of the manufacturing sites.
  • Despite these headwinds, Chemours still demonstrated strong areas of growth and several promising developments, emphasizing the resilience and potential the company has.

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Daily Brief Energy/Materials: Reliance Industries, Mount Gibson Iron, Propetro Holding, Balchem Corp, Empire Energy, Talos Energy Inc, Lithium Power International, Louisiana Pacific, Silgan Holdings, Alamos Gold and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Morning Views Asia: Reliance Industries
  • Mount Gibson (MGX AU): Iron Ore Pure Play, 77% of the Mkt Cap in Cash, 0.5x EV-EBITDA With Catalysts
  • Propetro Holding Corp (PUMP) – Tuesday, Jan 23, 2024
  • Balchem Corporation: Will Its Strong Performance in Human Nutrition & Health Continue To Last?
  • Empire Energy Group Ltd – Working through the timeline to first gas in 2025
  • Talos Energy Inc. – Estimate Update
  • Lithium Power International – Termination of coverage
  • Louisiana-Pacific Corporation: Initiation Of Coverage – What Is Its Core Business Strategy & The Impact Of Volume Sensitivity? – Major Drivers
  • Silgan Holdings Inc.: Initiation Of Coverage – A Deep Dive Into Its Business Strategy & The Competitive Positioning It Holds! – Major Drivers
  • Alamos Gold: Initiation Of Coverage – Impending Phase 3+ Expansion at Island Gold & 3 Pivotal Factors Driving Growth In 2024 & Beyond! – Financial Forecasts


Morning Views Asia: Reliance Industries

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Mount Gibson (MGX AU): Iron Ore Pure Play, 77% of the Mkt Cap in Cash, 0.5x EV-EBITDA With Catalysts

By Sameer Taneja

  • Mount Gibson Iron (MGX AU) is a pure play on iron ore trading at 0.5x EV-EBITDA, with 77% of the market capitalization in cash in H1 FY24 (likely to grow).
  • The company is about to announce reinstating its dividend, and a 50% payout could result in a yield of 20% on the current share price. 
  • The company’s main catalyst is its earnings release in August, after which a board meeting will decide on future dividends (which it has already committed to shareholders). 

Propetro Holding Corp (PUMP) – Tuesday, Jan 23, 2024

By Value Investors Club

  • ProPetro has seen significant improvements in fundamentals over the past year, making it a more attractive investment opportunity
  • Focus on downhole pumping services has allowed ProPetro to expand services and acquire new revenue streams
  • Falling CAPEX, stable demand, clean balance sheet, and new capital allocation strategy centered around significant buybacks position ProPetro for growth

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.


Balchem Corporation: Will Its Strong Performance in Human Nutrition & Health Continue To Last?

By Baptista Research

  • Balchem Corporation’s sales in fourth quarter 2023 were marked by a slight dip, but the company still posted record operating earnings and free cash flow.
  • It also achieved record fourth-quarter sales and earnings in the Human Nutrition & Health segment.
  • Going back a bit, full year 2023 sales were down 2.1%, yet operational earnings recorded an increase of 9.6%.

Empire Energy Group Ltd – Working through the timeline to first gas in 2025

By Research as a Service (RaaS)

  • Empire Energy Group Limited (ASX:EEG) is an oil and gas producer/developer, with onshore Northern Territory (NT) gas exploration and development assets.
  • EEG has the largest tenement position in the highly prospective Greater McArthur Basin, which includes the Beetaloo Sub-basin.
  • Following the recent announcement of the divestment of its US assets for up to $9.1m, EEG has successfully completed a further capital raising through a placement of shares and sale of royalty interests to generate some $46.8m.

Talos Energy Inc. – Estimate Update

By Water Tower Research

  • 1Q24 results will include roughly one month of contribution from the assets acquired in the QuarterNorth transaction, which closed on March 4, 2024.
  • The QuarterNorth acquisition added an oil-weighted (~75% oil production) asset base (>95% operated), bolstering Talos’s position in the Mississippi Canyon and Green Canyon areas offshore in the Gulf of Mexico.
  • Management expects to realize $50 million of estimated annual run-rate cost synergies by year-end 2024.

Lithium Power International – Termination of coverage

By Edison Investment Research

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.


Louisiana-Pacific Corporation: Initiation Of Coverage – What Is Its Core Business Strategy & The Impact Of Volume Sensitivity? – Major Drivers

By Baptista Research

  • Louisiana-Pacific Corporation (LP) emerged from 2023 with a much stronger finish than its beginning due to the impressive performance of its Siding business segment in the fourth quarter, which recorded the highest EBITDA margin of the year.
  • LP managed to return to normal inventory and order flows after experiencing a destocking cycle in the first half of the year.
  • The company ended the year with $222 million in cash and over $770 million in liquidity, demonstrating its strong financial position despite its significant investment in SmartSide and ExpertFinish capacity.

Silgan Holdings Inc.: Initiation Of Coverage – A Deep Dive Into Its Business Strategy & The Competitive Positioning It Holds! – Major Drivers

By Baptista Research

  • The fourth quarter 2023 earnings exhibited Silgan Holdings, a leading manufacturer of consumer packaging goods, as a resilient company able to navigate amidst adverse economic circumstances.
  • The company’s resilience was evidenced by its strong performance during the period, marked by the second-highest adjusted Earnings Per Share (EPS) and adjusted EBIT in its history.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Alamos Gold: Initiation Of Coverage – Impending Phase 3+ Expansion at Island Gold & 3 Pivotal Factors Driving Growth In 2024 & Beyond! – Financial Forecasts

By Baptista Research

  • Alamos Gold Inc.’s fourth-quarter 2023 results unveiled that the year yielded strong results on multiple fronts, with some of the best performance figures in two decades.
  • The company achieved a significant 15% increase in the production reaching a record 529,000 ounces of gold, at the top end of their raised production guidance.
  • Operational costs reduced by 4% while revenue saw an impressive increase of 25% to a record $1 billion.

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