Energy & Materials Sector

• Thailand likely to receive less rains in the coming one-month period  
• Indonesia, Vietnam, Cambodia likely to have above normal rains  
• WMO predicts 60% chances of La Nina developing

• Paladin Energy faces water supply disruptions from NAM Water in Namibia, leading to a drop in guidance for Langer Heinrich uranium mine.
• The company has adjusted its FY25 uranium production guidance from 4-4.2 million pounds to 3-3.6 million pounds.
• Despite the challenges, Paladin Energy remains confident in meeting customer delivery obligations and has flexibility in contracts to manage the situation.

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• United States Steel Corporation (U.S. Steel) has reported its financial results for the fourth quarter and full year of 2023, showcasing another period of robust financial performance despite the challenging global economic environment.
• The company ended the year with net earnings of $895 million, or $3.56 per diluted share, and adjusted net earnings for the fourth quarter were $167 million, or $0.67 per diluted share.
• These results were bolstered by better performance across both the Mini Mill and Tubular segments, and favorable year-end inventory adjustments in the North American Flat-Rolled segment.

• Given Boustead Singapore Limited (BOCS SP) operating metrics just a minimal 1-2% growth through cycles should offer at least 50% upside.
• Boustead is a solid investment with diversified exposure in energy, geospatial, and real estate sectors, with a focus on sustainability, and steady project pipeline supporting long-term visibility.
• Boustead Singapore Limited (BOCS SP) is a deep value play, which prioritizes stability and risk mitigation over aggressive growth. 

• Eastman’s latest discussion primarily centered on navigating the prevalent market challenges and exploiting growth through innovation and strategic initiatives.
• As the world continues to reel under economic pressures, including high inflation and interest rates, Eastman envisions a recovery trajectory reinforced by strategic product developments and market expansions.
• Eastman indicates a mixed financial environment with several moving parts.

• Q1 FY06/25 revenue increased 20.3% YoY to JPY1.8bn, with operating profit up 18.1% YoY to JPY261mn.
• TRANSFORM 2027 targets JPY16.0bn revenue by FY06/27, with Water-related business aiming for JPY8.3bn (CAGR 41.3%).
• Nagaoka plans JPY6.0bn for growth investments, maintaining a 20% dividend payout ratio with a progressive policy.

• Y/Y Water Infrastructure segment revenue increased 41% in 3Q24 and gross profit before D&A increased 99%.
• The strong profit performance allowed Select to overcome a 5% Y/Y total revenue decrease to generate an 11% total gross profit increase.
• Water Infrastructure gross profit before D&A margin increased to 56.7% in 3Q24 from 51.0% in 2Q24 and 40.1% in 3Q23. 

• Arq reported 3Q24 revenue of $34.8 million and EBITDA of $5.1 million, up from $29.8 million in revenue and $0.9 million in EBITDA in 3Q23.
• The strong results were driven by further PAC pricing increases (sixth consecutive quarter of >10% ASP increases), operating efficiency, and the benefits of a more diversified customer base.
• While 3Q is typically the strongest seasonal quarter, the results far surpassed 3Q23 and 3Q22, showing the success of the company’s efforts to restructure its PAC business through improved contract terms and operating execution.

• • 3Q24 WI production was 26,709 boe/d.
• This is above our expectations of 25,740 boe/d and towards the higher end of the guidance range of 24.9-27.6 mboe/d.
• • Vaalco has narrowed its FY24 production guidance range from 23.6-26.5 mboe/d to 24.1-25.4 mboe/d with lower capex (US$110-130 mm vs US$115-140 mm previously).

• • 3Q24 production was 10,010 boe/d; which is line with our expectations.
• • Production has increased to 10,706 bo/ed in the last seven days following low cost work-over activities.
• • With the expansion of the workover programme upon the arrival of the second work-over rig and the installation of additional in-field flowline water separation systems, we expect that this trend will continue.

• According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.
• We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.
• All in all, this M&A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.

• SGX IO Futures fell for the second consecutive week, closing USD 4.15/ton lower at USD 101.70/ton on 18/Oct, with a trading range of USD 9.75/ton.
• Short-Term moving averages signaled a bearish reversal, with a downward 9-day moving average and failure to break above key pivot points.
• Heavy selling pressure and expanded China stimulus measures disappointed market expectations, signaling continued bearish trends with a potential test of USD 97.5/ton support.

• What you need to know: • EDG announced assay results for four drill holes as part of its 10,000m 2024 drill program; it has completed 22 holes (6,100m) to date.
• • Today’s results confirmed strong mineralization in large untested gaps between Eagle & Imperial, also confirming mineralization at depth.
• • A 2nd drill rig has been added to accelerate the drill program – this rig will test the near-surface portion of the Eagle Zone.

• GCC posted positive results, above our estimates at the EBITDA level.
• Although revenues decreased by 4% YoY, higher prices in cement and ready-mix and cost contention were the main drivers behind a 2.6 pp EBITDA margin expansion, reaching a 40.7% level.
• Revenues of US$398 M (-4% YoY) were driven by a 17% contraction in Mexico and a +1% YoY gain in revenues in EE.UU.

• Fenix Resources (FEX AU) is a small-cap iron ore miner/logistics provider with massive upside based on an increasing sales profile from 1.3 to 4 million tons over FY25/26. 
• The company is also positioning itself as a logistics provider with the potential to transport 10 million tons of material through the Geraldton Port with its infrastructure in place. 
• Trading at 5.4x FY25e PE with a 1.8 EV-EBITDA, >38% of the market cap in cash, this is a stock worth exploring.

• Revenue reached JPY3.1bn, an 8.3% YoY increase, achieving 48.7% of the full-year forecast, with strong AI demand.
• Operating profit increased by 173.2% YoY to JPY149mn, driven by robust sales in plating chemicals for AI applications.
• Net income forecast revised to JPY1.6bn due to gains from the sale of investment securities announced in August 2024.

• Despite feedback from ETF managers, KRX is moving forward with the simultaneous listing of 12 ETFs tracking the Value-Up Index on November 4th.
• Government-Backed organizations are launching a 200 billion KRW Value-Up Fund for the Value-Up Index stocks, targeting an AUM boost to over 1 trillion KRW by year-end.
• For new additions in the December rebalancing, the safest bets are POSCO Holdings, JB Financial Group, and HK inno.N.

• Back on the 25th April 2024, a Dacon/DMCI Holdings (DMC PM)-led consortium entered into a SPA to acquire 89.86% in CEXMEX (CHP PM) from Cemex SAB de CV (CEMEXCPO MM).
• The completion of the sale triggered a mandatory tender offer for the remaining 10.14% of shares out. The Offer Price is ₱1.42/share (before considerable fees), a 8% discount to undisturbed.
• The Offer Period spans October 23 to November 21. There’s the possibility of a technical bump. Don’t expect a follow-on delisting Offer. The Bidders’ intention is to maintain CEMEX’s listing.

• To derive our target price of EUR 33.93, indicating an upside potential of 29.01%, we incorporated 2 different valuation methods: DCF valuation, resulting in a price of EUR 32.49 and Peer Group valuation, resulting in a price of EUR 39.68.
• The weights used for the 2 valuation approaches were 80% for DCF and 20% for Peer Group.
• To perform DCF valuation, we used a 2-stage calculation approach, consisting of the growth period (~20%) and terminal value (~80%). Using the DCF we came up with a price target of EUR 32.49 (+23.55% vs current price). T

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.

• Adani Green Energy
• CIFI Holdings
• Medco Energi

• 3Q24 Gabon gross production was 27,465 bbl/d.
• The DHIBM-7H well at Hibiscus Northern Flank is now on stream taking overall current gross production in Gabon close to 40 mbbl/d.
• The current rate is very high when considering that three wells (out of eight in the Hibiscus-Ruche area) are still shut-in.

• Mammoth Energy has reached a settlement agreement with PREPA, allowing them to focus on their core business operations
• The settlement will provide Mammoth with approximately $188 million in total settlement proceeds, improving their financial flexibility and supporting growth initiatives
• This agreement will help boost Mammoth’s financial position and could lead to future growth opportunities for the company

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.

• Notably, NZ-1 is the first large-scale alcohol-to-jet (ATJ) project to receive a DOE loan commitment. NZ-1 is a 60 million gallon per year sustainable aviation fuel (SAF) project.
• The NZ-1 project aims to produce SAF with potential for net-zero or even negative carbon intensify (CI) impact on airlines through a highly electrified and optimized production process, onsite wind power, climate-smart agricultural practices from regional corn growers, and potential carbon capture and sequestration.
• According to Gevo, NZ-1 will have the lowest production cost particularly when measured as the cost of carbon abatement. 

• Korea Zinc’s delisting daily trading volume cutoff is 20K, about 0.12% of the total. We might see volumes plummet, making it tough to maintain even that 20K level.
• Keep an eye on trading opportunities; we have some time with delisting risks, but low trading volume could lead to being booted from the KOSPI 200 and Global Index.
• This sell-off could spike short-term volatility and create great entry points for trading, especially after the court approved the buyback tender, denying MBK’s injunction.

• The Seoul Central District Court dismissed the second injunction filed by MBK Partners and Young Poong to suspend the share buyback/tender offer by Korea Zinc Chairman Choi and his allies.
• As a result of the court dismissing the second injunction filed by MBK, the M&A fight for Korea Zinc is likely to continue until the AGM in March 2025. 
• Depending upon Korea Zinc’s tender offer subscription, there is a possibility of MBK buying more shares directly from the market if the subscription falls below the proposed amounts. 

• In this insight, we take a look at the potential index changes for ASX200, 100, 50, and 20 in the run-up to the December 2024 index rebal event.
• We currently do not see any index changes for ASX 20 and ASX 100.
• We continue to expect one change for ASX 50. However, our expectations for ASX 200 have changed since our last insight (link).

• Waaree Energies (0656504D IN) awaited IPO is about to open on October 21. The IPO comprises of fresh issue worth INR 36 bn and OFS worth INR 7.2 bn. 
• This insight is an update to the previous note on the company Waaree Energies IPO- Forensic Analysis , on the forensics front. 
• The company still faces some of the forensic setbacks we found in the DRHP. These include capital purchases from related parties, heated receivables, bizarre lease accounting, unpaid dues, etc.

• The Chemours Company faced various challenges in the second quarter of 2024, yet demonstrated resilience and adaptability in managing these issues.
• Key points from the earnings call include the impact of a severe drought on their titanium dioxide production at Altamira, Mexico, which led to unplanned downtime and an $8 million cost for the quarter.
• Despite this, Chemours was proactive in addressing the immediate needs of affected employees and the community while optimizing production to meet customer demands, achieving a 16% increase in volumes compared to the first quarter.

• PBF Energy’s second quarter 2024 earnings presentation reveals a mixed financial landscape marked by challenges and strategic achievements.
• Despite experiencing weaker-than-expected earnings, the company successfully maintained a robust cash position and further advanced its operational goals.
• The quarter faced unusual market conditions where RIN-adjusted crack spreads saw a significant decrease, contributing to tighter margins across the board.

• Inventory lowest since February 2024
• Arbitrage widens for African and Indonesian rubber
• Expansion in imports & exports in August

• DT Midstream reported strong financial results in the second quarter of 2024, continuing to align with their full-year plans.
• President and CEO David Slater confirmed the reaffirmation of their 2024 adjusted EBITDA guidance range and provided a positive outlook for 2025.
• The quarter highlighted several strategic advancements, particularly in organic growth projects which are expected to drive future earnings.

• Noble Corporation delivered a robust performance in its second quarter of 2024 results, reflecting a 50% increase in adjusted EBITDA compared to the previous quarter.
• President and CEO Robert Eifler highlighted the commencement of key contracts and the solid execution of shipyard programs as significant contributors to the company’s positive trajectory.
• These contract start-ups, particularly noted with rigs like the Noble Regina Allen and Noble Discoverer, underscored operational efficiency and led to an upward revision in EBITDA guidance to a range of $950 million to $1 billion for the year.

• The US oil and gas rig count fell by one to 585 for the week ending 18/Oct, marking the fourth decline in five weeks.
• The US oil rig count increased by one to 482. Meanwhile, gas rigs decreased by two to 99, falling below 100 again.
• For the week ending 18/Oct, US energy producers added one rig each in Colorado and Oklahoma but cut two in Texas.

• After a brief spell of iron ore prices rising to 108 USD/ton, prices have retraced to 102 USD/ton (-3% WoW) but remain broadly in the 95-130 USD/ton band.
• Investors were disappointed with China’s announced stimulus measures, citing their vagueness and lack of a specific timetable, resulting in the positive sentiment waning over the last two weeks.
• We update investors on Vale’s (VALE US) recent proposal to the government to settle the Mariana Dam disaster.

• Copper prices were down slightly, WoW, by 0.3% YoY, as the effect of China’s stimulus plan announcements waned, with investors viewing them more skeptically.
• With 58% of the metal’s demand arising from China, we expect the short-term malaise to be felt unless China makes punchier fiscal stimulus announcements soon. 
• We believe high-quality equities like Southern Copper (SCCO US) and Ivanhoe Mines (IVN CN) will continue to be resilient and prefer exposure to copper in those names.

• Huge volumes traded on the mainland, Southbound volumes dropped, AH Premia contracted a little bit, but not much. Things are starting to stabilise.
• Average AH pairwise volatility is super high. Intracorrelation of spreads quite low. Lots of room to market-make wide spreads/high premia. High premia may continue to contract on speculation.
• Continuing different onshore and offshore opinion regarding the nature and vibe of Chinese stimulus will continue to lead to interesting dispersion. Identify the trend, then market make around it.

• OPEC cuts demand growth estimates for the third consecutive month, lowering its 2024 and 2025 forecasts by 4.9% and 5.7%, respectively, citing demand weakness in China.
• Total production of OPEC members obliged to implement supply cuts averaged 21.32m bpd in September, exceeding the target by 180k bpd.
• The EIA reduced its 2024 and 2025 oil price forecasts due to September’s sharp decline but expects prices to rise from current levels on declining oil inventories.

• NPS is now viewing their voting rights on Korea Zinc purely from a returns angle, shifting from earlier expectations of siding with Choi due to political pressure.
• We need a tendering strategy for a 20% proration risk, focusing on when MBK will buy that extra 3.7% stake to cut losses on untendered shares.
• MBK will aim to buy leftover shares cheaply. Their approach depends on the progress of Choi and Trafigura’s talks

• For the week ending 11/Oct, US crude inventories decreased by 2.2m barrels, diverging from expectations of a 1.8m barrel build. Additionally, gasoline and distillate stockpiles also declined more than anticipated.
• US natural gas inventories rose 76 Bcf for the week ending 11/Oct, lower than analyst expectations of an 80 Bcf buildup. Inventories are 4.6% above the 5-year seasonal average.
• Halliburton, Schlumberger, and Occidental’s target prices were cut. Notably, analysts kept their Buy ratings on Reliance despite its net profit falling by 4.8% YoY.

• Requests for retraction in contracts by buyers 
• Oversupply of spot cargoes feeds pessimistic expectations

• • Production to date in October is 950 bbl/d, the same level as reported on 24 September.
• • The MGH-43 well has encountered 41 m of prospective gross sand intervals with good to excellent oil shows in the main TAF target that will now be perforated.
• Due to unstable hole conditions in MGH-43, Criterium was unable to conduct pressure testing and resistivity calculations on the zones of interest and therefore could not determine the estimated productivity rates.

• Energy Transfer’s Q2 2024 earnings report reveals a company navigating complex operational landscapes with a mixture of robust results and strategic adjustments, providing a broad perspective on its strengths and challenges as it plans forward.
• The company reported a noticeable rise in their financial and operational metrics indicating vital signs of growth.
• However, certain segments experienced downturns that could suggest areas requiring attention for future stability and improvement.

• Sealed Air’s Q2 2024 earnings presentation provided detailed insights into the company’s financial health and strategic direction under the leadership of the newly appointed CEO, Patrick Kivits.
• This period also marked a reshuffling in the executive roles with Dustin Semach stepping up as President and CFO.
• Sealed Air reported a quarter with mixed results, highlighting successes in its Food segment and ongoing challenges in the Protective segment.

• Beijing Capital Grand (1329 HK) (BCG), a commercial property developer in China, is currently suspended pursuant to the Takeovers Code. 
• Beijing Capital Land Ltd H (2868 HK) (BCL) holds a 65.72% stake, having secured majority control in Juda International, as BCG was then known, in November 2013. 
• BCG has been a forgettable stock since 4Q16. Expect a forthcoming Scheme from BCL, perhaps at ~HK$0.75/share.

• Personally, the key trading angle is Kum Yang’s exit, which could slash entry costs for the capital raise, with the review announcement dropping as stock rights trading starts.
• Along with the usual hit to the pricing from index trackers unloading for rebalancing, there’s a strong chance their sell orders might also include stock rights.
• From an entry cost perspective, this November review could trigger a sharp, short-term drop in costs due to stock rights dumping, similar to what we saw with CJ CGV.

• Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of ‘6 months after treasury shares acquisition.
• It would be nearly impossible for Korea Zinc to sell 2.4% of its treasury stock to an external friendly force and transform it into a friendly stake by February 2025.
• Although MBK/Young Poong Alliance has the advantage right now in this M&A battle for Korea Zinc, it is by no means over.

• Pilbara Minerals announced the establishment of a $1 billion debt facility with a banking syndicate.
• The company plans to use the facility to repay existing concessional debt and potentially make acquisitions.
• The new facility offers more flexibility in terms of leverage ratios compared to existing debt agreements.

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• Shell expects Q3 refining margins to drop 28.6% QoQ to USD 5.5/bbl, driven by a sharp decline in oil prices. However, improved chemical margins are anticipated to offer some relief.
• Between 2023 and 2025, Shell plans to invest USD 10 billion to USD 15 billion in low-carbon solutions globally, with a strategic emphasis on LNG.
• Shell projects LNG to account for 26% of energy sales by 2030, up from 22% in 2023, while oil products will decrease from 48% to 39%.

• TotalEnergies’ revenue is expected to fall 9.1% QoQ and 17.8% YoY in Q3, while its EPS is expected to rise 6.6% QoQ but fall 19.8% YoY. 
• TotalEnergies anticipates a decline in downstream profitability due to a 65.7% QoQ drop in European refining margins, though increased gas prices are expected to partially offset lower oil prices.
• TotalEnergies raised its annual oil and gas output growth forecast to 3% through 2030. Targets natural gas to comprise 50% of its total sales mix by 2030.

• HWKN has grown its water treatment business through acquisition leading to the segment becoming larger than the industrial business. The water treatment segment should become the largest sales generator.
• We believe this growth through inorganic means has resulted in HWKN’s stock trading at a premium to the market and to HWKN’s historic levels. 
• The seasonality the water treatment segment experiences should result in HWKN’s overall gross margin declining in the second half of fiscal 2025. 

• Short-term 20-day MA remained elevated through September to mid-October 2024  
• SIR20 traded at a discount to futures  
• Processors in Thailand and Indonesia faced more margin pressure due to high raw material costs  
• The forward curve shows October 2024 prices at their highest for the year

• Consumption declines by .3% to 356,000 tons in Q1 FY 25
• ATMA says April-Sept 2024 production 37% lower year on year
• ATMA asks Rubber Board to expedite data publishing

• BERRY (BERY) has had a challenging start to the year but recent market trends have created an interesting investment opportunity for the company.
• BERY had been in a strategic review process for its HH&S business, with expectations for a sale to improve their balance sheet, but instead announced a spin off with Glatfelter Corporation (GLT), causing a drop in stock price.
• The stock is now in a state of “DEAL PURGATORY” until the transaction is completed, leading to a selloff in the stock price and possible undervaluation for investors to consider.

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.

• Investment opportunity in BPT, a grantor trust with royalty interest in Prudhoe Bay
• Cash flow offset against increasing costs, risky but potentially lucrative
• Factors affecting profitability include production levels, WTI prices, costs, and taxes; predicted decrease in value over next 12 months

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.

• West Fraser’s Q2 2024 results present a nuanced profile, shaped by diverse business segments and market dynamics.
• The financial highlights and strategic movements of the company were thoroughly discussed during the earnings call hosted by Sean McLaren, President and CEO, alongside Senior Vice President and Chief Financial Officer Chris Virostek and other senior executives.
• 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.

• Alpha Metallurgical Resources reported its financial results for the second quarter of 2024, delivering a performance that reflects both the resilience and challenges faced by the metallurgical coal industry.
• The company announced an adjusted EBITDA of $116 million and total shipments of 4.6 million tons during the quarter.
• Despite a decrease in adjusted EBITDA from $190 million in the previous quarter, the figures indicate strategic navigation through prevailing tough market conditions, characterized by weakened steel demand and subsequent impact on metallurgical coal markets.

• ICL Group Ltd’s second quarter financial performance showcased both strength and areas of concern amid challenging external factors such as geopolitical tensions and evolving market dynamics.
• Let’s delve into the specifics of the recent financial outcomes and the implications for businesses and investors alike.
• Financial performance highlights included a notable uptick in sales which were recorded at $1,752 million, a consecutive increase for the second quarter.

On 14 October, Alkane released its Q125 quarterly activities report, showing almost all of its operating parameters in line with both guidance and our expectations for the full year. The exceptions were its head grade, which exceeded the upper end of the guidance range by 6.1%, and AISC, which improved upon the lower end of the guidance range by 9.1%. Most significant however was confirmation that AISC guidance reflects a one-off cost for decline development that is accounted as sustaining capital (rather than as an operating expense) and as a result we have increased our earnings estimates for FY25 by A$21.2m, or 85.8x (8,479%).

• Kinross Gold Corporation expressed a strong performance in the second quarter of 2024, which boosted the company’s financial and operational outlook.
• The company reported a substantial 20% growth in operating margins compared to the previous quarter, largely driven by optimal functioning at its major mines, notably Tasiast and Paracatu.
• The increase in gold prices positively impacted the profitability, enhancing free cash flow to $346 million for the quarter.

• Sonoco Products Company’s second quarter earnings call presented a mixed picture of the company’s financial performance and strategic direction.
• For the second quarter, Sonoco reported sales of $1.6 billion, reflecting a decrease from previous periods.
• The adjusted EBITDA stood at $262 million, with EBITDA margins maintaining strength at 16%.

• Mongolian Mining (975 HK) released its quarterly production update. While production remained flat QoQ, destocking led to 16.3% YoY sales growth in coal. 
• The resources at the gold mine (476,000 oz) did not change, but construction of the plant was 55% complete compared to 30% a quarter ago in June. 
• Trading at 5.6 PE, with opportunities for growth and future dividend payments due to repayment of the perpetual, this is an exciting idea to explore. 

• Dyna Mac Holdings (DMHL SP) disclosed a revised conditional offer from Hanwha Aerospace (012450 KS) and Hanwha Ocean (042660 KS) at S$0.67, an 11.7% premium to the initial S$0.60 offer.
• The Estate (largest shareholder) stated that the previous S$0.60 offer was not compelling. The final offer addresses most of the Estate’s valuation concerns.
• The Estate’s view and IFA opinion in the circular (despatched by 23 October) will be crucial to the acceptance rate. They are likely to support the final offer. 

• We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong alliance. 
• After the tender offer, MBK and Young Poong’s stake in Korea Zinc increased from 33.13% to 38.47%, coming close to more than half of the voting rights.
• We continue to believe that at current stage, MBK/Young Poong alliance has the advantage in the fight for the control of Korea Zinc.

• The US oil and gas rig count rose by one to 586 for the week ending 11/Oct, marking an increase after falling for three consecutive weeks.
• The US oil rig count increased by two to 481. Meanwhile, gas rigs decreased by one to 101, after gaining six rigs over the last two weeks.
• For the week ending 11/Oct, US energy producers added six rigs in Texas and one in Oklahoma but cut two each in Pennsylvania, Louisiana, and New Mexico.

• SGX IO Futures declined by $1.94/ton over the week, closing at $106.21/ton on October 11th, with prices ranging between $103.05 and $115/ton.
• DCE premium over SGX surged to 10% on 8/Oct as DCE reopened after Golden Week, but the spread narrowed to 4.8% by 11/Oct. SGX underperformed DCE early in the week.
• Weekly options volume surged 188%, dominated by puts with a 1.04 put/call ratio, concentrated on November expiries and key strikes at 100 and 105.

• US natural gas prices fell 7.8% for the week ending 11/Oct, marking a second straight weekly decline as Hurricane Milton reduced electricity demand, driving down Henry Hub prices.
• Henry Hub Put/Call volume ratio fell to 0.69 (11/Oct) from 0.98 the previous week as put volumes fell by 27.3% WoW, while call volumes rose by 2.8%.
• Put OI increased for contracts expiring in November and April while call OI rose for expiries in December, January, February, and March.

• WTI futures rose by 1.6% for the week ending 11/Oct, as the simmering tensions in the Middle East outweighed persistent demand concerns.
• WTI options Put/Call volume ratio fell to 0.52 from 0.64 (04/Oct) as put volume dropped by 50.9% WoW while call volume fell by 39.8%.
• WTI OI PCR was unchanged at 0.76 compared to last week. Call OI rose by 5.7% WoW, while put OI grew by 5.8%.

• CTA Update Last week, the research division of UBS shared an update on the positioning of CTAs.
• Contrarian’ trades: bullish Energy, Cattle Feeder, Lme Lead and Lme Nickel, bearish Coffee, Cocoa, Platinum and Palladium
• Go with momentum’ trades: bullish Lme Tin, Copper, Gold and Lean Hogs, bearish Soybean, Soybean Meal, Wheat and Corn Hurricane Milton and Orange Juice Prices Orange juice futures rose as Hurricane Milton approached Florida throughout the week.

• LSB currently operates three downstream integrated ammonia production facilities.
• Behrman said key competitive advantages include a cost structure underpinned by access to low-cost US natural gas feedstock, strategic proximity with plants located in three states (OK, AK, and AL), and good logistics with access to waterways, truck, and rail.
• About half of LSB’s output is geared toward agricultural applications (fertilizers), while the remaining is geared toward various industrial applications.

• 10 Questions for CNMC Goldmine Holdings What is CNMC Goldmine’s business about and what are some of its key business segments? Our flagship project, the Sokor Gold Field, spans 10 square kilometers and has been producing gold for more than a decade.
• Given that a large portion of CNMC Goldmine’s revenue is tied to gold prices, how does the Group manage the potential volatility?.