Category

Energy & Materials Sector

Jun 15
0

Daily Brief Energy/Materials: ASP Isotopes and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • ASP Isotopes – Initiation of Coverage Report – Isotope Market Overview

ASP Isotopes – Initiation of Coverage Report – Isotope Market Overview

By Baptista Research

  • This is our first report on ASP Isotopes and we look to provide a detailed account of the various assets owned by the company and the drivers that will be responsible for the company’s growth in the coming years.
  • ASP Isotopes’ proprietary isotope enrichment technology should enable the company to produce many of these isotopes, as shown in the diagram below.
  • When combined with the company’s second manufacturing plant, scheduled to start production during 2H 2023, ASP Isotopes should generate substantial free cash flow during 2024.

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Jun 14
0

Daily Brief Energy/Materials: POSCO Holdings and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • ESG Risks: Conflict Arises over POSCO Holdings’ Hydrogen Reduction Steel Project

ESG Risks: Conflict Arises over POSCO Holdings’ Hydrogen Reduction Steel Project

By Heejeong (Hollie) Park

  • As the development of POSCO Holdings’ hydrogen reduction steel project progresses, so do conflicts with the local community.
  • Opinions clash over hydrogen reduction steel plant construction for carbon neutrality by 2050 and concerns about ecological threats from ocean reclamation.
  • This incident falls under the category of community relations risks, and currently, POSCO Holdings’ company risk is rated at an extreme level of 4.8.

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Jun 13
0

Daily Brief Energy/Materials: Indian Energy Exchange Ltd, Crude Oil, Thungela Resources and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • IEX Ltd- Facing the Tide
  • The Case for Oil // Farmer Sentiment continues to fall
  • Thungela: Cyclical Downturn Should Resume

IEX Ltd- Facing the Tide

By Nitin Mangal

  • Indian Energy Exchange Ltd (IEX IN)  is a market leader among power exchanges. However, the company’s market share might be delicate, especially with the developments of market coupling.
  • The company might be a market leader, however there are some aspects accounting wise that are unique to IEX as compared to other exchanges like MCX and BSE.
  • This includes settlement guarantee fund, accounting of software license, etc.

The Case for Oil // Farmer Sentiment continues to fall

By The Commodity Report

  • Farmer Sentiment continues to fall Producer sentiment fell to its weakest reading since July 2022 as the Purdue University/CME Group Ag Economy Barometer declined 19 points to a reading of 104 in May.
  • The Index of Future Expectations was down 22 points to a reading of 98 in May, while the Index of Current Conditions was down 13 points to a reading of 116.
  • This month’s lower sentiment was fueled by drops in both of the barometer’s sub-indices and likely triggered by weakened crop prices, according to the University of Purdue.

Thungela: Cyclical Downturn Should Resume

By Pearl Gray Equity and Research

  • Thungela Resources Limited’s six-month trading report suggests that an earnings slump is en route.
  • The firm’s broad-based output is suffering from troubled railways and softer-than-anticipated demand from abroad.
  • A lower dividend is highly probable, according to the report.

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Jun 12
0

Daily Brief Energy/Materials: Allkem Ltd, Anhui Conch Cement and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • MVIS Global Rare Earth/​​​​Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes
  • Anhui Conch Cement (914 HK): Time for More Aggressive Thoughts?

MVIS Global Rare Earth/​​​​Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes

By Brian Freitas

  • There are 3 inclusions for the MVIS Global Rare Earth/Strategic Metals Index at the June rebalance. Plus there are free float and capping changes.
  • One way turnover is estimated at 10.6% and will result in a one-way trade of US$66m. There are a few stocks with over 0.5 days of ADV to trade.
  • Yunnan Chihong Zinc&Germanium Co, Ltd. (600497 CH) was not added to the index while ioneer Ltd (INR AU) has avoided deletion in June.

Anhui Conch Cement (914 HK): Time for More Aggressive Thoughts?

By Osbert Tang, CFA

  • Anhui Conch Cement (914 HK) has been facing numerous challenges, but at 0.5x P/B (2SD below average) and 36.4% of share price is net cash, it pays not overly bearish. 
  • Government stimulus measures may not be effective immediately, but should pave the way for better cement demand. A 16.5% increase in special purpose bond issuance in 4M23 is positive.  
  • Depressed cement price is bad, but this will drive small and inefficient players out of the market. This will bring more orderly competition and allow Conch Cement gain market share. 

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Jun 11
0

Daily Brief Energy/Materials: Alamos Gold , Inner Mongolia Yitai Coal Company Ltd and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • MVIS Global Junior Gold Miners Index Rebalance: Big Float & Capping Changes
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: ENM, Estia Health, Yitai Coal, and Challenger Technologies

MVIS Global Junior Gold Miners Index Rebalance: Big Float & Capping Changes

By Brian Freitas

(Mostly) Asia-Pac Weekly Risk Arb Wrap: ENM, Estia Health, Yitai Coal, and Challenger Technologies

By David Blennerhassett

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Jun 10
0

Daily Brief Energy/Materials: Trigon Metals and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • TM: Wide High-Grade Drill Results; Positive Mining Update

TM: Wide High-Grade Drill Results; Positive Mining Update

By Atrium Research

  • Trigon reported high-grade near-surface drill results (1.48% Cu over 76.0m & 1.14% Cu over 10.0m).
  • Yesterday, Trigon Metals Inc. (TM:TSXV), announced another series of high-grade drill results from its Kombat Mine.
  • This is the third batch of high-grade at-surface drill results which we believe supports an extension of the open pit mine plan.

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Jun 09
0

Daily Brief Energy/Materials: Amman Mineral Internasional, Occidental Petroleum, Devon Energy, Gatos Silver , Intl Flavors & Fragrances, E2Gold Inc and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Amman Mineral IPO: Offering Details & Index Inclusion
  • Occidental Petroleum Corporation: Notable Progress On The Carbon Capture Front & Other Developments
  • Devon Energy Corporation: Futuristic Investment In Geothermal Tech Could Be A Game Changer? – Key Drivers
  • Gatos Silver’s Bi-Quarterly Earnings Reviewed
  • International Flavors & Fragrances (IFF).: Cost-Cutting Efforts Pay Off
  • ETU: Commences 2023 Field Program
  • Amman Mineral International IPO – Peer Comparison & Thoughts on Valuation

Amman Mineral IPO: Offering Details & Index Inclusion

By Brian Freitas

  • Amman Mineral Internasional (1416286D IJ) is offering 7.288bn shares in its IPO at a price range of IDR 1650-1775/share to raise between US$808-870m and valuing the company between US$8.08-8.7bn.
  • The stock will not get fast entry to global indices or local Indonesia indices (IDX30 Index/ LQ45 Index/ IDX80 Index).
  • With listing planned for 5 July, the earliest index inclusion will be in December and there are no near-term passive flows expected for the stock.

Occidental Petroleum Corporation: Notable Progress On The Carbon Capture Front & Other Developments

By Baptista Research

  • Occidental Petroleum Corporation delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as the earnings expectations of Wall Street.
  • However, their disciplined approach to capital spending and operational excellence has led to some progress in their shareholder return framework.
  • We give Occidental Petroleum Corporation a ‘Hold’ rating with a revised target price.

Devon Energy Corporation: Futuristic Investment In Geothermal Tech Could Be A Game Changer? – Key Drivers

By Baptista Research

  • Devon Energy managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
  • Devon’s effective cost management was evident, with capital expenditures in line with expectations and operating costs better than guidance.
  • The company generated over $665 million of free cash flow, marking the 11th consecutive quarter of positive cash flow.

Gatos Silver’s Bi-Quarterly Earnings Reviewed

By Pearl Gray Equity and Research

  • Sources suggest Silver is set to receive long-term support.
  • However, the futures market implies that a short-term price retracement is possible.
  • Despite the stock’s tailwinds, a 30% year-over-year surge places Gatos in overvalued territory.

International Flavors & Fragrances (IFF).: Cost-Cutting Efforts Pay Off

By Baptista Research

  • IFF delivered a mixed set of results for the previous quarter, with revenues above the analyst consensus.
  • The management’s focus on cost reduction efforts was evident as they are looking to recover from the effects of inflation, and reduce inventories while enhancing service levels.
  • Lower volumes and inventory reduction efforts impacted adjusted operating EBITDA, but IFF successfully recovered total inflation through pricing actions and achieved substantial cost and operational efficiencies.

ETU: Commences 2023 Field Program

By Atrium Research

  • ETU has commenced its 2023 field exploration program at Hawkins.
  • Yesterday, E2Gold Inc. announced it has commenced its 2023 field exploration program and has nearly completed Grid 3 mapping, bringing it to drill ready status.
  • The Company plans to execute its 2023 field exploration program on targets generated by soil geochemistry and geophysics in collaboration with regional artificial intelligence and structural interpretation on the broader Hawkins Project.

Amman Mineral International IPO – Peer Comparison & Thoughts on Valuation

By Ethan Aw

  • Amman Mineral Internasional (1416286D IJ) is looking to raise up to US$868m in its Indonesian IPO. 
  • Amman Mineral International (AMI) carries out exploration, development, mining, processing. The company operates an open pit copper and gold mine known as the Batu Hijau mine in Indonesia.
  • In our previous notes, we looked at the company’s past performance. In this note, we undertake a quick peer comparison and share our thoughts on valuation.

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Jun 08
0

Daily Brief Energy/Materials: Empire Energy and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Empire Energy Group Ltd – Tightness in NT Supply Enhances the Business Case

Empire Energy Group Ltd – Tightness in NT Supply Enhances the Business Case

By Research as a Service (RaaS)

  • Empire Energy Group Limited (ASX:EEG) is an oil and gas producer/developer, with onshore Northern Territory (NT) and US oil/gas production assets.
  • EEG has the largest tenement position in the highly prospective Greater McArthur Basin, which includes the Beetaloo Sub-basin.
  • The NT energy basins are fast developing as strategic high-calorific gas bolsters for east coast Australia’s future domestic requirements, growing Gladstone LNG ullage and potential supply for Darwin’s expanding LNG export terminals, amid funding support from Territory and Federal governments. 

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Jun 07
0

Daily Brief Energy/Materials: SK Innovation, Crude Oil, Ball and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Higher Private Market Valuation of SK On: Positive Impact on SK Innovation
  • WTI and Gold Targets
  • Ball Corporation: What Is Its Biggest Competitive Advantage? – Key Drivers

Higher Private Market Valuation of SK On: Positive Impact on SK Innovation

By Douglas Kim

  • It has been reported that SK On received 1.2 trillion won investment from a consortium led by MBK Partners and SNB Capital, valuing SK On at about 25 trillion won.
  • Our SoTP valuation of SK Innovation suggests a target price of 274,738 won per share, which represents a 38% higher levels than current price.
  • SK Innovation’s 96.5% stake in SK On (24.1 trillion won in value) is 130% higher than SK Innovation’s current market cap.

WTI and Gold Targets

By Thomas Schroeder

  • Oil and gold remain under pressure due to a firm US dollar. Use strikes to the downside in oil to re cycle a short near 75 resistance. 
  • Our sell call in gold at 2,060 is pressing below 1,980 with a target of 1,900 where we start to probe for an intermediate cycle low.
  • We view this as a tactical pullback within a more bullish macro cycle. USD counter play.

Ball Corporation: What Is Its Biggest Competitive Advantage? – Key Drivers

By Baptista Research

  • Amid tough year-over-year comparisons, largely driven by business divestments, Ball Corporation delivered a mixed set of results for the previous quarter with revenues well below analyst expectations but managed an earnings beat.
  • The company’s aluminum beverage, as well as aerosol shipments, were in line with the regional expectations of the management.
  • However, the sales of the quarter decreased because of the sale of the company’s Russian business, lower volumes, currency translation, and pass-through of lower aluminum prices.

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Jun 06
0

Daily Brief Energy/Materials: Inner Mongolia Yitai Coal Company Ltd, Amman Mineral Internasional and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Yitai Coal (3948 HK): Offer Open with H Share Class Meeting on 30 June
  • Yitai Coal (3948 HK): H-Shareholders To Vote on 30th June
  • Amman Mineral International IPO – Promising Assets with Decent Prospects

Yitai Coal (3948 HK): Offer Open with H Share Class Meeting on 30 June

By Arun George

  • Inner Mongolia Yitai Coal Company Ltd (3948 HK)‘s H Share buyback offer at HK$17.50 per H Share is open. The H class meeting is on 30 June.  
  • The key conditions are approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection). There is a 90% minimum acceptance condition.  
  • The de-rating of the peers, likely supportive substantial H Shareholders and no major retail opposition should help hit the 90% threshold. At the last close, the gross/annualised spread is 4.7%/23.9%.   

Yitai Coal (3948 HK): H-Shareholders To Vote on 30th June

By David Blennerhassett

  • Back on the 9 May, Inner Mongolia Yitai Coal Company Ltd (3948 HK) announced an H-share buyback at HK$17.50/share.
  • With no pre-conditions attached to this hybrid Scheme/Tender Offer, my expectation was this could be wrapped up by mid-August. 
  • The dispatch of the Offer Document yesterday evening indicates even this timeline was conservative, with payment potentially occurring in the third week of July.

Amman Mineral International IPO – Promising Assets with Decent Prospects

By Ethan Aw

  • Amman Mineral Internasional (1416286D IJ) is looking to raise around US$880m in its Indonesian IPO. 
  • Amman Mineral International (AMI) carries out exploration, development, mining, processing. The company operates an open pit copper and gold mine known as the Batu Hijau mine in Indonesia.
  • AMI’s profitability grew dramatically over the track record period. However, copper prices might possibly be on a downtrend in the near term.

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