Energy & Materials Sector

• Kumho Petro Chemical (011780 KS) intends to retire 50% of its common shares, totaling 2,624,417 shares, starting from the 2024 fiscal year until the 2026 fiscal year.
• With the annual general meeting nearing, NPS hasn’t revealed its support, causing unease for Park Chan-gu. Considering NPS’s obligation to the Value-Up policy, cancellation seems inevitable for Park Chan-gu.
• Whether the battle persists hinges on NPS’s stance. If NPS backs Park Chan-gu, their stake surpassing 25% could deter the opposition’s financial strength. Conversely, NPS’s neutrality could escalate the battle.

• After the market close on 6 May, Kumho Petrochem announced a significant shares cancellation program which is likely to have a positive impact on its share price. 
• The company announced that it will cancel 430 billion won worth of its common shares in the next three years, representing nearly 10.5% of its market cap.
• Park Chul Wan, nephew of Kumho Petrochem Chairman Park Chan Koo, has been very vocal about the need for Kumho Petrochem to improve its corporate governance in past several years.

• The Azure Minerals (AZS AU) IE considers Sociedad Quimica y Minera de Chile (SQM US)/Hancock’s scheme and takeover offer fair and reasonable as it is above its A$2.03-2.93 valuation range. 
• The scheme is conditional on FIRB approval, which should be forthcoming as Azure’s key asset (Andover) will be majority-owned by Australian entities.
• The scheme vote will get up due to irrevocables and retail support. At the last close and for the 18 April payment, the gross/annualised spread was 3.1%/29.2%.

• Gold and Silver have remained unresponsive to lower rates, escalating geopolitical risks and higher China and India seasonal demand.
• Notably, early February saw the emergence of two contrarian signals that merited closer attention.
• While these signals are not foolproof market timing tools, they warrant attention when they align with technical support levels within an established consolidation pattern.

• Q1-3 FY3/24 results were in line with company guidance, reflecting the strategic importance for DKK to scale its new growth initiatives.
• Ongoing positive developments related to semiconductor, secondary battery, and biomaterial applications were offset by weakness in electronics and the mature profile of the core automotive catalyst business.
• Operating a business model that is externally driven (such as FX movements and raw materials market pricing), the company has disclosed ROIC targets that coincide with its current 10-year plan for FY3/32. 

• CNX is an ENP exploration and production business focusing on natural gas with a long history in the energy sector
• CNX evolved from a coal company to a natural gas producer under new management led by CEO Nick
• The current business model focuses on monetizing assets, separating coal business, and leveraging the productive Marcellus shale for low-cost advantage.

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

• I have received several questions from readers on Alcoa (AA US)’s non-binding proposal for Alumina Ltd (AWC AU) in the context of the current gross spread of 9.2%. 
• The questions primarily concerned Citic Resources Holdings (1205 HK) voting intentions, the probability of a bump and the likelihood of Aloca shareholders supporting the transaction. 
• CITIC Resources’ lack of public endorsement of the transaction is due to HKEx listing requirements and not an indication of a NO vote risk.  

• Ercros (ECR SM), a venerable Spanish chemical company has received a €3.6/share, cum dividend, offer from Bondalti. The premium is 40.6%, implied equity €329.17 million and implied EV €421 million.
• The offer represents 6x EV/Fwd NTM EBITDA, typical mid-cycle multiple for commodity chemicals, 12.9x Fwd P/E. The offer price accounts for an improving H2. The shares suffer from low liquidity.
• Therefore the top shareholders will be glad to cash in. How long does the Spanish government take to authorise FDI will be the primary concern. Gross spread is 4.7%. Long.

• Indices were rebalanced in the closing auction last week Thursday.

• Turnover on the JSE for the day was R25.6bn, R12.9bn traded in the closing auction (50%).

• Turnover at the November rebalance was R40.6bn. 

ELPE reported its final results on 29 February. Adjusted net income of €0.6bn was lower than our forecast of €0.64bn. A positive surprise was that the board is recommending a final dividend of €0.60 per share, which was above our expectation of €0.30 per share. We believe this reflects management’s confidence in the current shape of the business. The balance sheet has been strengthened year-on-year, with net debt reduced from €1.94bn (at end-FY22) to €1.63bn. Our forecasts are under review.

• JSR Corp (4185 JP)’s shares rose 4.8% due to a Nikkan Kogyo article that states that JIC will start the tender within the month due to concluding negotiations with SAMR. 
• Caution is warranted as JSR has not provided a customary timeline update, no confirmatory disclosure from SAMR and JSR’s response to SUNY RF’s claims are yet to be filed.
• Based on current information, there are five possible tender scenarios. In the worst case, the downside risk on a deal break should be muted due to the market re-rating. 

• May 17th, all eyes on EcoPro Materials for a buzzed-about lockup release. BRV Capital holds 24.5% stake, 17M shares. Lockup ends May 16th; they’re free to sell off without constraints.
• Apparently, they’re eager to cash out, with a profit margin around 30 times and 7 years invested. Many at Yeouido bet they’ll sell out once the lockup’s over.
• We might start building a shorting position with futures targeting this lockup release from April 22nd. This could stir up some weird backwardation, which could give us another trading opportunity.

• We discuss the strong likelihood of potential selling of EcoPro Materials by BRV Capital Management (the second largest shareholder of Ecopro Materials with a 24.7% stake) in May 2024. 
• BRV Capital Management’s stake in Ecopro Materials is currently worth 3.1 trillion won. In the past seven years, BRV Capital Management has invested about 93 billion won in Ecopro Materials. 
• On 4 March, Ecopro Materials announced it has entered into a contract to supply precursor to a U.S. auto company. There is some local speculation that this could be Tesla. 

• CTA Positioning Update According to UBS’ biweekly CTA momentum study, CTAs bought oil and sold precious metals in size in February.
• The investment bank expects ⅔ of those flows to reverse in the next two weeks.
• CTA’s have meanwhile built a decent short position in agriculturals, and flows should remain negative there.

• Indo Tambangraya Megah (ITMG IJ) reported its Q4 2023/FY23 numbers with revenues down 46%/35% YoY and profits down 58%/69% YoY on declining coal prices (113 USD/ton Vs 192 USD/ton) .
• We expect spot coal prices to remain range-bound between 130-150 USD/ton, resulting in company profits ranging between 350-500 mn USD (4x-6x PE range) with dividend yield ranging from 11%-15%.
• The company also has a cash buffer of 850 million USD, roughly 45% of the current market capitalization. 

• If you are concerned about the YOLO and FOMO frenzy in the stock market, you may wish to consider gold and gold mining stocks as refuges.
• The technical pattern for gold is constructive, but not unabashedly bullish. 
• Gold miners appear to be washed out against gold and present the best opportunity for gains in the next 6–12 months.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Medco Energi’s ESG as “Adequate”, in line with its scores for the Environmental, Social and Governance pillars. Controversies are “Immaterial” and Disclosure is “Adequate”.

• Trigon reported results from the Feasibility Study on the Kombat Open Pit and Asis West Underground, confirming expectations.
• TM also announced a Mineral Resource and Reserve update for its Kombat Mine, reporting its first underground probable reserves.
• By way of resource conversion, new exploration, and the implementation of the Asis Far West Underground, TM still has substantial upside from what is depicted in the FS. 

• 4Q23 production in the Williston was 1,053 boe/d.
• This only reflects oil and natural gas production.
• Adding our estimates of NGL production (reported in previous periods but not in 4Q23) would lead to ~1,200 boe/d (we forecasted ~1,400 boe/d).

• Gold held flat in February, continuing a long period of consolidation, and most other metals were down modestly.
• The precious metal equities further sold off in February, compounding the losses in January, highlighting to the market this industry is still out of favour.
• We had several significant updates from companies within our coverage.

• We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: APM Human Services Internation (APM AU), Probiotec Ltd (PBP AU), Alumina Ltd (AWC AU), Shinko Electric Industries (6967 JP), JSR Corp (4185 JP), China TCM.
• Lowest spreads: Tietto Minerals Ltd (TIE AU), Orecorp Ltd (ORR AU), CPMC Holdings (906 HK), Pact Group Holdings (PGH AU), Yaizu Suisankagaku Industry (2812 JP).       

• The iShares A50 China (2823 HK) and CSOP China A50 (HKD) (2822 HK) ETFs will rebalance their holdings at the close on 15 March.
• Shaanxi Coal Industry, Hygon Information Technology, CGN Power and China Everbright Bank will replace Aier Eye Hospital, Bank Of Ningbo, WuXi AppTec and Jiangsu Yanghe Brewery in the ETFs.
• Hygon Information Technology (688041 CH) will also be added to a global index at the same time while CGN Power (1816 HK) will be added to the FXI ETF.

• Rio Tinto Ltd (RIO AU) has one of its most prized assets in Mongolia. The Oyu Tolgoi mine has an 80-year mine-life and will ramp up significantly in coming years.
• Entree Resources (ETG CN) is the last remaining hurdle to acquire after the successful integration of Turquoise Hill in late 2022.
• Entree just released a batch of 2022 (!) drilling results, one month before an arbitration deadline. Why was it released now? Will Rio finally move on Entree before the deadline?

• This is our first report on midstream major, Pembina Pipeline Corporation.
• The company’s Q4 2023 earnings signaled a robust financial position, with quarterly earnings reaching $698 million and a record adjusted EBITDA of over $1 billion.
• This result was bolstered by growing volumes across numerous systems and a strong year from the firm’s marketing business.

• This is our first report on natural resource exploration player, Teck Resources Limited.
• The company showed a strong fourth quarter performance across their business, advancing operations at QB and reporting a record-breaking quarterly copper production.
• This also led to an Adjusted EBITDA of $1.7 billion in Q4 and $6.4 billion for the year.

Key points

• Gold is reaching all-time highs due to declining real rates
• Investing in precious metals royalty and streaming companies, like Triple Flag Precious Metals, is recommended
• Triple Flag offers strong qualities and relative valuation discount compared to larger counterparts

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.

• The last week was a very busy one. The coming week has some announcements and implementations but is a relatively quieter one.
• The SSE STAR50 (STAR50 INDEX) and STAR100 Index changes for March will be implemented at the close on Friday, the 8th.
• Another week of inflows for the iShares Emerging Markets ex-China (EMXC US) ETF as creations cross US$2bn for 2024. ETF AUM has gone from US$420m in 2021 to US$11bn now!

• US crude oil inventories buildup outpaces gasoline and distillate withdrawal for the week ending on 23/Feb.
• Refinery utilisation rates rose by 0.9 percentage points on a weekly basis to 81.5%, for the first time in 2024.
• Disparity between crude oil and refined petroleum inventories to remain in the near term as refinery utilisation rates are yet to recover completely after the maintenance season.

• Cheniere Energy, Inc.
• has reported substantial operational and financial attainments for Q4 and the entire year of 2023.
• The company produced a record 637 LNG cargoes, with a total production amounting to 45 million tons, in line with their forecast.

Nickel Industries Limited has released sound FY 2023 numbers, driven by a series of capital-raising initiatives that have strengthened the company’s balance sheet. The operating results were satisfactory, with capacity growth and competitive first-quartile cash costs more than offsetting lower nickel prices (down c. 50% in the past year). NIC is also making good progress in the transition away from nickel pig iron (NPI) production to Class 1 nickel production.

Group EBITDA increased 19% y-o-y to USD 403 mn, due to robust production volume growth. Net debt fell to USD 66 mn from USD 415 mn, thanks to material cash proceeds from the capital-raising initiatives. Gross Debt/EBITDA and Net Debt/EBITDA were 2.2x and 0.2x, respectively, at FYE 2023. EBITDA/Interest stood at 5.7x. Liquidity is adequate, with USD 779 mn cash and c. USD 200 mn available credit lines (vs. USD 845 mn total debt).

We continue to expect robust double-digit EBITDA growth of c. 20% in FY 2024 and c. 2x Gross Debt/EBITDA. This will likely be supported by capacity expansion.

• EOG Resources had an impressive financial performance in Q4 and 2023, primarily characterized by strong volume growth, the delivery of their production milestone, and the generation of significant free cash flow.
• EOG achieved their production milestone, producing more than 1 million barrels of oil equivalent per day, beating their volume targets.
• Their adjusted net income was $6.8 billion, a return on capital employed of 31%.

• Cheniere Energy, Inc.
• has reported substantial operational and financial attainments for Q4 and the entire year of 2023.
• The company produced a record 637 LNG cargoes, with a total production amounting to 45 million tons, in line with their forecast.

• Pioneer Natural Resources attained strong results in its second quarter with oil production near the top end of its guidance range thanks to improved well performance and efficient operations.
• The increased production and concurrent lowering of full year 2023 capital guidance suggests an enduring strength in Pioneer’s capital efficiency.
• In addition, the company also successfully returned 75% of its free cash flow to shareholders through dividends and opportunistic share repurchases, signaling strong financial management and a focus on shareholder value.

• The Jetstream #1 appraisal well at the Topaz helium project in Minnesota encountered helium shows while drilling, with helium concentration of up to 12.4% according to the on-site spectrometer.
• The helium shows were encountered at depths of 1,750 – 2,200 feet (TD: 2,200 feet).
• The helium mudlog gas composition increased from 3.7% to 5.1% over the period.

• 4Q23 disappoints but headwinds subsiding. RYAM reported 4Q23, which included solid revenue of $422 million, ahead of our estimate of $373 million.
• However, adjusted EBITDA of $37 million fell well short of Street expectations and our $48 million forecast on weaker-than-expected paperboard demand and lower-than-anticipated pulp prices.
• Right-sized inventory suggests modest growth. With customer channel destocking largely completed in 4Q23, RYAM’s businesses should see a more stable demand environment throughout 2024 and, combined with modest share-driven volume growth and lower input costs, improved gross and EBITDA margins.

• SDRL ended 2023 with in line results as the Company readies for a year filled with maintenance. The commentary surrounding market conditions has not changed greatly since third quarter results.
• There is still a lack of new supply but being able to match available supply to operators’ demand calendar has become challenging
• SDRL reported fourth quarter 2023 revenue of $408 million and operating income of $52 million, which were both in line with our estimate.

• The Mosaic Company’s fourth quarter and full year 2023 earnings highlighted robust phosphate markets and an expected recovery of demand for potash.
• Mosaic’s CEO, Bruce Bodine, spoke positively about their financial performance in 2023, with reported revenue of $13.7 billion and adjusted EBITDA of $2.8 billion, along with investing $1.4 billion in the business and returning $1.1 billion to shareholders through share repurchases.
• One positive takeaway from the call was the strong phosphate market conditions, resulting from tight supply due to China’s fertilizer export restrictions and limited capacity additions in the short term.

• Western Midstream Partners (WES) reported its fourth-quarter and full-year 2023 earnings with a mixed financial result.
• Nevertheless, the company retains a degree of optimism, particularly when considering certain initiatives and expected future outcomes.
• In 2023, Western Midstream Partners successfully divested its remaining interest in several non core, non-operated assets worth $790 million.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Medco Energi’s ESG as “Adequate”, in line with its scores for the Environmental, Social and Governance pillars. Controversies are “Immaterial” and Disclosure is “Adequate”.

• Godolphin Resources Limited (ASX:GRL) is an ASX-listed green metals and critical minerals explorer with a focus on central west New South Wales.
• The company’s projects include the Narraburra rare earths element (REE) project, the Goodrich copper prospect, the Yeoval copper-gold-molybdenum project and the Gundagai gold project.
• The projects are predominantly located on the Lachlan Fold Belt, a highly prospective province for the discovery of rare earth elements, copper, gold and base metal deposits. 

• Godolphin Resources Limited (ASX:GRL) is an ASX-listed green metals and critical minerals explorer with a focus on central west New South Wales.
• The company’s projects include the Narraburra rare earths element (REE) project, the Goodrich copper prospect, the Yeoval copper-gold-molybdenum project and the Gundagai gold project.
• The projects are predominantly located on the Lachlan Fold Belt, a highly prospective province for the discovery of rare earth elements, copper, gold and base metal deposits.

• International Flavors and Fragrances Inc.
• (IFF) reported its fourth quarter and full year 2023 earnings, where it was highlighted that comparable currency-neutral sales increased by 1%, and comparable currency-neutral EBITDA grew by 17% for the fourth quarter.
• This comes amid a reported sales decline underscoring resilience within the company’s operational framework.

• Marathon Oil’s Q4 and full year 2023 results and full year 2024 outlook have highlighted some of the successes and challenges faced by the company.
• The company’s Chairman, President, and CEO, Lee Tillman, emphasized on the company’s commitment to safety, environmental responsibility, and ongoing work to achieve zero routine flaring.
• The company has continued to prioritize providing safe working conditions and has achieved a record safety year in 2023.

• Alkane Resources Limited (ASX:ALK) is an ASX-listed gold producer and explorer with a focus on central west New South Wales.
• The Perth-headquartered company owns and operates the Tomingley gold mine and processing facilities, south-west of Dubbo and the Northern Molong porphyry project in central west NSW which includes the highly prospective Boda and Kaiser deposits.
• ALK recently announced high-grade results from the Kaiser resource upgrade drilling programme and upgraded the Boda resource to 6.6mn ounces of gold equivalent (AuEq), with 4.4Moz AuEq inferred. 

• ECVT continues to encounter macro headwinds in its business after seeing softness in certain end markets in the middle of 2023. 
• We believe the trough in the business is underscoring the attractive nature of ECVT’s operations. The Company continues to generate free cash flow
• Looking ahead, the free cash flow generation in 2024 provides greater balance sheet flexibility in reducing leverage and/or buying back more stock

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.

• Nickel Industries

• There are five changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) that will be implemented at the close on 27 March. Changes are on expected lines.
• Estimated one-way turnover for the NSE Nifty Next 50 Index (NIFTYJR INDEX) is 10.1% resulting in a one-way trade of INR 22.2bn (US$268m).
• Apart from the impact on the adds and deletes, there will be a big impact on some of the non-F&O stocks due to capping and funding flows.

• Upon evaluation of LyondellBasell’s Q4 and full-year 2023 results, a finely balanced investment thesis can be derived, considering the company’s strategic initiatives, performance, and the broader economic environment.
• LyondellBasell safely navigated a challenging year, as illustrated in its outcome of earning $8.65 per share and a robust EBITDA of $5.2 billion.
• The company’s cash generation was commendable, marked at $4.9 billion from operations, validating its efficient cash conversion ratio of 98%.

• VAALCO is in discussions with Svenska Petroleum Exploration regarding a possible corporate transaction to acquire Svenska, whose primary asset is a 27.39% interest in Block CI-40, offshore Cote d’Ivoire.
• Current working interest production is approximately 4,500 boe/d net to Svenska.
• In 2022, Svenska generated after tax cashflow (before changes in working capital) of ~US$115 mm.

• Sky Metals Limited (ASX:SKY) is an ASX-listed base metals explorer focused on a portfolio of assets in New South Wales with the most advanced being the Tallebung tin project in central NSW. The company recently made material progress on the expansion of the mineral resource estimate (MRE) at Tallebung which positions it to be scoped for a bulk-mining operation.
• SKY says it is now planning a further drilling programme on a defined exploration target of approximately 23Mt-32Mt at a grade of between 0.14%-0.17% tin to build out the indicated resource for the mine scoping studies.
• The cash balance of $1.12m at the end of December 2023 suggests to us that the company may need to raise capital to complete its programme.

• TM announced its operational highlights for Q3 ending Dec 31st.
• The Company reported its first operational profit, albeit small, setting itself up for a big year in 2024 as the underground comes online.
• TM announced plans to spin-out its Moroccan assets, namely the Silver Hill and Addana projects.

• Alkane Resources Limited (ASX:ALK) is an ASX-listed gold producer and explorer with a focus on central west New South Wales.
• The Perth-headquartered company owns and operates the Tomingley gold mine and processing facilities, south-west of Dubbo and the Northern Molong porphyry project in central west NSW which includes the highly prospective Boda and Kaiser deposits.
• ALK recently announced high-grade results from the Kaiser resource upgrade drilling programme and upgraded the Boda resource to 6.6mn ounces of gold equivalent (AuEq), with 4.4Moz AuEq inferred.

• Vulcan Materials is America’s largest producer of construction aggregates, providing the foundation for buildings, roads, and infrastructure.
• The company owns over 400 quarries located within 60% of the US population, producing aggregates used in asphalt and concrete.
• The industry structure involves owning quarries and crushing rocks down to create materials used in various construction projects, with a market size of around $35 billion.

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

Edison Investment Research is terminating coverage on Egdon Resources (EDR). 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.

Pan American Silver (PAAS) has released its FY23 financial results, which are in line with our estimates at the EBITDA level, an encouraging outcome given the operationally challenging year. While the bottom line was once again affected by non-cash one-offs, cash flow generation was robust, with FY23 operating cash flow of US$450m. We have slightly adjusted our FY24 estimates and rolled the model forward, resulting in a marginally updated valuation of US$22.2/share. The company’s decision to launch a buyback should partly compensate for the weak share price performance, which we believe does not reflect supportive gold market fundamentals and what is likely to be a year of more consistent operating performance.

• Samsung Active Management launched the first Corporate Value Up ETF called KoAct Dividend Growth Active ETF on 27 February. It also revealed some of the major constituents of this ETF.
• Samsung Active Management revealed the top 20 constituents of this ETF, which comprised 73.2% of the total ETF AUM.
• In the coming weeks, there will be many other Corporate Value Up related ETFs that will be created that are similar to Samsung’s KoAct Dividend Growth ETF. 

• Adbri (ABC AU) has entered a scheme implementation deed with CRH (CRH US) and Barro at A$3.20 per share, a 41.0% premium to the undisturbed price of A$2.27 (13 December).
• The offer requires shareholder and FIRB approval. FIRB approval for the bidder, CRH, should be forthcoming as it is a Fortune 500 company with HQ in Ireland. 
• The offer is attractive vs. peer multiples and historical ranges. At the last close and for a mid-June payment, the gross/annualised spread is 1.9%/6.6%.

• We are revisiting the assumptions in our model for ADF following strong industry data and positive conversations with management. 
• We are increasing our revenue and profitability estimates from Q4 onward to reflect the more bullish outlook.
• We have increased our target multiple to 6.5x FY25 EBITDA (previously 6.0x), leading to a new $13.00/share target price (previously $10.00/share).

• Ecolab Inc., during their latest earnings, highlighted strong growth in their fourth quarter performance for 2023, solidifying a favorable year for the company.
• Despite unstable macroeconomic conditions, the team drove value-based pricing while consistently maintaining strong business momentum.
• Their success arose from creating value for customers by enhancing operational performance, as well as reducing water and energy consumption.

• Phillips 66 delivered a strong performance in the fourth quarter and for the full year 2023.
• It reported a total shareholder return of 33% in 2023 and also increased its quarterly dividend by 8%.
• The company highlighted its diversified and integrated portfolio as a key aspect of its business strategy, claiming that it delivered strong returns on capital employed and a high payout ratio backed by dividend growth.

• Alcoa (AA US) has made a non-binding, indicative and conditional proposal to acquire all shares in Alumina (AWC AU). Shareholders will receive 0.02854 shares of Alcoa for each Alumina share. 
• Alcoa (AA US) has entered into an agreement with Allan Gray Australia that gives them the right to acquire 19.9% of Alumina Ltd (AWC AU) at the same swap ratio.
• Alumina Ltd (AWC AU) is a potential delete from the ASX100 Index at the March rebalance and that could provide an entry into the stock.

• CSR Ltd (CSR AU) has entered a scheme implementation deed with Cie De Saint-Gobain (SGO FP) at A$9.00 per share, a 32.9% premium to the undisturbed price (20 February).
• The offer has a ticking fee of A$0.02 per month (accrued daily) if the scheme’s effective date is delayed beyond 26 June. The offer requires FIRB approval. 
• The offer is attractive and represents a 15-year high. At the last close and for a mid-June payment, the gross/annualised spread is 7.4%/28.8%.

• Alumina Ltd (AWC AU)‘s non-binding proposal from Alcoa (AA US) is 0.02854 Alcoa shares per Alumina share, implying a value of A$1.15, a 13.1% premium to the undisturbed price.
• Alcoa has been granted a 20-business day exclusivity period. The Board intends to recommend a binding proposal. Allan Gray, the largest shareholder, is supportive. 
• While strategically sensible, the offer is not a knockout bid. The headcount test is a risk as retail forums suggest a majority view forming against the offer. 

• On the 21st Feb, Saint-Gobain (SGO FP) made an indicative Offer to CSR Ltd (CSR AU) shareholders of A$9/share by way of a Scheme, a 34% premium to last close. 
• Saint-Gobain and CSR have now entered into a definitive agreement, also at $9/share. The business combination has been unanimously approved by the boards of both companies. 
• Conditions include CSR’s shareholder approval and FIRB signing off. No specific mention of ACCC. The transaction is expected to close in the second half of this year.

• Back on the 18 December 2023, construction play Adbri (ABC AU) entered into a process and exclusivity deed with CRH (CRH US) and 42.7%-shareholder Raymond Barro (Chairman).
• Adbri has now entered into a Scheme Implementation Deed with CRH under which CRH will acquire all of the shares in Adbri that the Barro Group does not currently own.
• Conditions include Adbri’s shareholder approval and FIRB signing off. The transaction is expected to close in June of this year.

• Valero Energy Corporation recorded strong financial results for the fourth quarter of 2023 and the highest fourth quarter and full-year adjusted earnings in the company’s history, excluding the results of 2022.
• The refining system achieved a mechanical availability of 97.4%, the highest to date, highlighting the benefits from Valero’s commitment to safe, reliable, and environmentally responsible operations.
• Valero also set a record for sales volume in 2023, capturing around 1 million barrels per day, exemplifying the strength of its branded and wholesale marketing network.

• 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 an 11% increase in H1 FY24 revenue to $1.6m with its transactional platform, RentPay delivering a 137% increase in revenue to $0.22m, driven by a 122% increase in customers and ARPU growth of 18%.
• The search portal reported a positive EBITDA of $0.092m for the half, its best result in two years and up 42% on the previous corresponding period (pcp), while RentPay posted a loss of $1.029m, flat on the pcp, and a 26% improvement on H2 FY23.

• 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 an 11% increase in H1 FY24 revenue to $1.6m with its transactional platform, RentPay delivering a 137% increase in revenue to $0.22m, driven by a 122% increase in customers and ARPU growth of 18%.
• The search portal reported a positive EBITDA of $0.092m for the half, its best result in two years and up 42% on the previous corresponding period (pcp), while RentPay posted a loss of $1.029m, flat on the pcp, and a 26% improvement on H2 FY23. 

• TPL benefited from an increase in production rates in the Permian Basin to report better than expected fourth quarter results
• Production has been volatile in recent quarters depending on multiple factors. The steady state of oil above $70 a barrel and improved supply chains has resulted in production rising. 
• The boost in earnings has led to TPL building a cash cushion of $725.2 million and creating anxiety for many investors as to what TPL’s management would do next