Category

Energy & Materials Sector

Daily Brief Energy/Materials: SGX Rubber Future TSR20 and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Kerala Smallholders Turn The Heat On Tire Makers; To Cut Supply


Kerala Smallholders Turn The Heat On Tire Makers; To Cut Supply

By Vinod Nedumudy

  • Consortium appeals to farmers not to sell below INR 200/kg
  • Supply to market expected to fall by 30% in coming days
  • Compound rubber imports go up by 47.5% YoY until Sept

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Daily Brief Energy/Materials: Yankuang Energy Group, Chemours Co/The, Cleveland-Cliffs Inc , Energy Transfer LP, Permian Resources , Western Midstream Partners LP and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • FXI Rebalance Preview: One Change in December as Shorts Spike
  • The Chemours Company: Its’ Strategic Portfolio Overhaul Maximizing Returns in High-Growth Markets! – Major Drivers
  • Cleveland-Cliffs Inc.: Can The Stelco Acquisition Be A Game Changer? – Major Drivers
  • Energy Transfer LP: Can Its Expansion of Infrastructure & Capacity Be A Potential Game Changer? – Major Drivers
  • Permian Resources: These Are The 4 Biggest Challenges In Its Path In 2025 & Beyond! – Major Drivers
  • Western Midstream Partners: Capital Allocation & Leverage Management As A Vital Factor Driving Growth! – Major Drivers


FXI Rebalance Preview: One Change in December as Shorts Spike

By Brian Freitas


The Chemours Company: Its’ Strategic Portfolio Overhaul Maximizing Returns in High-Growth Markets! – Major Drivers

By Baptista Research

  • The Chemours Company’s third-quarter 2024 results present a mixed picture, reflecting both commendable strategic implementation and ongoing market challenges.
  • The quarter witnessed a 1% increase in consolidated net sales to approximately $1.5 billion, driven by a 5% rise in volume, though partially offset by a 3% decline in pricing and a slight currency headwind.
  • This reflects the company’s effective operational execution and successful navigation through previous disruptions, evidenced by year-over-year volume growth across all business segments.

Cleveland-Cliffs Inc.: Can The Stelco Acquisition Be A Game Changer? – Major Drivers

By Baptista Research

  • Cleveland-Cliffs presented its third-quarter 2024 results during a challenging period of weaker steel demand and pricing, largely attributed to reduced automotive production and high interest rates affecting consumer decisions.
  • The company’s acquisition of Stelco, a Canadian steelmaker, was a notable development during this period, promising operational agility and cost efficiency.Cleveland-Cliffs reported a quarterly adjusted EBITDA of $124 million on 3.8 million tons of shipments.
  • This was a decline from previous performance levels, which the company attributed to reduced activity in the automotive industry.

Energy Transfer LP: Can Its Expansion of Infrastructure & Capacity Be A Potential Game Changer? – Major Drivers

By Baptista Research

  • Energy Transfer’s third quarter of 2024 results reveal several positive developments alongside some challenges, reflecting a complex operating environment.
  • Financially, Energy Transfer generated an adjusted EBITDA of $3.96 billion compared to $3.54 billion in the same quarter of the previous year, indicating growth driven by record volumes across its pipelines and strong performance in crude and NGL exports.
  • Despite the improved EBITDA, distributable cash flow attributable to partners remained flat at $1.99 billion year-over-year.

Permian Resources: These Are The 4 Biggest Challenges In Its Path In 2025 & Beyond! – Major Drivers

By Baptista Research

  • Permian Resources delivered a robust performance in the third quarter of 2024, characterized by significant production gains and operational efficiencies.
  • The company increased its full-year oil production guidance for the third time this year, highlighting a rise in daily production by 11,000 barrels over the initial forecast set in February.
  • A substantial part of this increase is attributed to the outperformance of its core operations, coupled with effective execution in mergers and acquisitions, notably the successful integration of the Barilla Draw acquisition.

Western Midstream Partners: Capital Allocation & Leverage Management As A Vital Factor Driving Growth! – Major Drivers

By Baptista Research

  • Western Midstream Partners’ third quarter of 2024 report presents a mixed bag of operational achievements and financial challenges.
  • Under the new leadership of Oscar Brown, the company continues to pursue its strategic goals while navigating through a complex market environment.
  • On the operational front, Western Midstream Partners reported a commendable quarter characterized by strong customer service and maintaining over 98% operability despite increased plant turnaround activities.

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Daily Brief Energy/Materials: Lyondellbasell Indu Cl A, TotalEnergies, BP PLC, Forum Energy Technologies , KEIWA , Panoro Energy ASA, PetroTal, Sable Offshore, TMC the metals co, Alphamin Resources and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • LyondellBasell Industries: Regional Market Adaptations & Demand Optimization & Other Major Drivers
  • [Earnings Review] TotalEnergies’ Profitability Weighed Down by Sharp Decline in Refining Margins
  • [Earnings Review] BP Posts Worst Earnings Since Q3 2020 as Weak Oil Prices Hit Margins
  • Forum Energy Technologies, Inc. – Refinanced Balance Sheet Paves Way to Consider Returning Cash
  • KEIWA (4251 JP): Q3 FY12/24 flash update
  • Panoro Energy ASA (OSE: PEN): 12.5 mbbl/d current production. On track to achieve >13 mbbl/d by YE23
  • PetroTal Corp (AIM: PTAL): Production >21 Mbbl/D.
  • SOC: Stuck in a Tar Pit
  • The Metals Company – Updated strategy offers commercial upside
  • Alphamin Resources – From alpha to omega


LyondellBasell Industries: Regional Market Adaptations & Demand Optimization & Other Major Drivers

By Baptista Research

  • LyondellBasell Industries recently held its earnings call to discuss the financial results of the third quarter of 2024.
  • The earnings report provides several insights into the company’s financial health, market positioning, and strategic advancements.
  • The third quarter results indicate how LyondellBasell is navigating a challenging market environment marked by fluctuations in raw material costs and subdued demand in various sectors.

[Earnings Review] TotalEnergies’ Profitability Weighed Down by Sharp Decline in Refining Margins

By Suhas Reddy

  • In Q3, TotalEnergies beat revenue forecasts by 6.4% but missed EPS estimates by 3.7%. Revenue and adjusted net income fell by 2.8% YoY and 37%, respectively.
  • TotalEnergies’ average liquids price realisation fell 2.4% YoY, European refining margins dropped 84.7%, while LNG price realisation rose 3.7% YoY.
  • TotalEnergies’ Q3 cash flow fell 27% YoY to USD 6.8 billion. It announced USD 2 billion in Q4 buybacks and a 0.79 euro/share interim dividend.

[Earnings Review] BP Posts Worst Earnings Since Q3 2020 as Weak Oil Prices Hit Margins

By Suhas Reddy

  • BP’s revenue declined 11.3% YoY, missing estimates by 4.3%, while EPS fell 27.8% YoY, beating estimates by 3.8%. Underlying net profit dropped 31.2% YoY to USD 2.3 billion.
  • BP’s Q3 performance was impacted by weak oil prices, lower refining margins, and soft trading results, leading to its lowest underlying net profit since Q3 2020.
  • Total upstream production rose 3% YoY, with liquids production up 5%. BP also achieved 80% YoY growth in its EV charging business, selling 1 terawatt-hour of electricity globally.

Forum Energy Technologies, Inc. – Refinanced Balance Sheet Paves Way to Consider Returning Cash

By Water Tower Research

  • FET’s refinanced balance sheet and free cash flow potential position the company to consider alternatives to return cash to shareholders in 2025.
  • Proceeds from a $100 million issuance of 10.5% senior secured bonds, together with cash on hand, funded the repayment of the seller term loan and will be used to fund the redemption of the remaining 2025 notes on December 8, 2024.
  • The new notes have a tack-on feature in the indenture allowing for the issuance of up to $150 million of incremental notes.

KEIWA (4251 JP): Q3 FY12/24 flash update

By Shared Research

  • Cumulative Q3 FY12/24 revenue grew 20.4% YoY to JPY14.9bn, with operating profit up 115.2% YoY to JPY3.1bn.
  • Revenue from optical sheets for laptops and tablets increased, while revenue from clean energy materials declined 2.9% YoY.
  • Full-year FY12/24 targets revised upwards, but 2H forecasts lowered due to policy changes and increased costs.

Panoro Energy ASA (OSE: PEN): 12.5 mbbl/d current production. On track to achieve >13 mbbl/d by YE23

By Auctus Advisors

  • Gross production at Dussafu has now reached 40 mbbl/d, taking Panoro’s overall WI production to 12.5 mbbl/d from 9,401 bbl/d in 3Q24.
  • Production could grow further with two wells to be completed by YE24.
  • A Ruche well is also set for first oil in 4Q24.

PetroTal Corp (AIM: PTAL): Production >21 Mbbl/D.

By Auctus Advisors

  • 3Q24 production was 15,203 bbl/d. This is in line with previous indications.
  • The cash position at the end of September had been previously reported and there are no surprises in the rest of the balance sheet.
  • With the end of the dry season, production has rapidly increased from 10.7 mbbl/d during the first week of October to >21 mbbl/d currently.

SOC: Stuck in a Tar Pit

By Hamed Khorsand

  • SOC reported third quarter results were the Company’s operations used cash of approximately $31.6 million and are now stuck in disagreement with the California Coastal Commission since September.   
  • SOC’s latest update with the Coastal Commission implies this could be a protracted process as SOC is now disclosing it would close the open excavations until there is an agreement
  • We believe SOC is not likely to achieve meaningful success in getting the work done in a timely manner. 

The Metals Company – Updated strategy offers commercial upside

By Edison Investment Research

Progress to an exploitation licence and commercialisation of The Metals Company’s (TMC’s) deep-sea assets is unchanged. The development of a strategy to leverage the group’s knowledge and capabilities in the deep sea to provide services to third parties offers the potential of a new and earlier revenue stream.


Alphamin Resources – From alpha to omega

By Edison Investment Research

Alphamin announced record quarterly tin production of 4,917t (+22.1% quarter-on-quarter) in Q324 and EBITDA of US$91.6m (+68.8%) after the Mpama South mine completed its first full quarter of production at (or near) steady state. Alphamin’s consolidated annual financial statements and accompanying management discussion and analysis (MD&A) for FY24 will probably be released in early March. In the meantime, we are forecasting that EPS will continue to advance into FY25 and beyond under the influence of continued strength in the tin price and increasing efficiencies as both Mpama North and Mpama South develop (in particular) along strike.


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Daily Brief Energy/Materials: Prakash Industries, Shell PLC, Balchem Corp, Pan African Resources, Sailfish Royalty , Seadrill , SGX Rubber Future TSR20, Valeura Energy Inc, Dic Corp, Dynacor Group and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • The Beat Ideas: Prakash Industries Limited, A Mining Catalyst
  • [Earnings Review] Shell Exceeds Expectations as Robust LNG Sales Counter Weak Refining Margins
  • Balchem Corporation: An Analysis Of Its Expanded Product Portfolio & Other Major Drivers
  • Pan African Resources – Tennant Creek acquisition
  • FISH: Miss from Operating Asset; Back to Steady State in Q4
  • SDRL: The Fleet and Free Cash Flow
  • Tire Industry: Premium Brands Exit Small-Rim Market Amidst Rising Competition
  • Valeura Energy (TSX: VLE): High Production in 4Q24. Launching a Share Buyback Programme
  • Dic Corp (4631 JP): Q3 FY12/24 flash update
  • DNG: Knocked it Out of the Park…Again


The Beat Ideas: Prakash Industries Limited, A Mining Catalyst

By Sudarshan Bhandari

  • Prakash Industries (PKI IN) Bhaskarpara Coal Mine is now received all the government approvals ensuring stable, self-supplied coal for steel production as well as open market sale.
  • This development reduces raw material costs, boosts EBITDA potential, and strengthens PIL’s valuation amid past corporate governance concerns.
  • PIL has manageable debt and with rising EBITDA, the company is available at a very attractive valuation compared to its peers.

[Earnings Review] Shell Exceeds Expectations as Robust LNG Sales Counter Weak Refining Margins

By Suhas Reddy

  • Shell’s Q2 revenue fell by 7.4% YoY and its adjusted earnings dropped by 3.1%. However, its revenue and EPS surpassed analyst expectations by 2.3% and 13.1%, respectively.
  • Shell’s free cash flow rose 44.4% YoY to USD 10.8 billion, while its net debt fell to its lowest since 2015, dropping by 13.1% YoY to USD 35.2 billion.
  • Shell’s LNG sales grew 6.4% YoY, while oil and gas production earnings rose 9% YoY, supported by a 3.1% production increase from new fields.

Balchem Corporation: An Analysis Of Its Expanded Product Portfolio & Other Major Drivers

By Baptista Research

  • Balchem Corporation’s third-quarter results for 2024 highlight its resilience and adaptability amid a mixed economic environment, showcasing strengths that bolster its growth potential while also signaling areas for investor caution.
  • The company posted impressive financial results, with revenues reaching $240 million, a 4.3% increase compared to the previous year.
  • This growth was mainly driven by robust performances in the Human Nutrition & Health and Specialty Products segments.

Pan African Resources – Tennant Creek acquisition

By Edison Investment Research

On 5 November, Pan African Resources (PAF) announced that it is to acquire privately owned Tennant Consolidated Mining Group (TCMG) in Australia’s Northern Territory for a total consideration of US$54.2m in an all-share deal that involves it issuing an additional 125.4m shares (or 6.5% of its existing share capital). The acquisition price equates to an undemanding US$42.15 per resource ounce of gold or US$139.21 per reserve ounce. While we expect the acquisition to have little effect on PAF’s earnings in FY25 (apart from the increase in share capital), we estimate that it will increase FY26 earnings by US$24.6m (or 19.1%) and FY27 earnings by US$42.6m (or 29.6%) and, on this basis, will undoubtedly be accretive.


FISH: Miss from Operating Asset; Back to Steady State in Q4

By Atrium Research

  • Sailfish Royalty reported Q3 financial results that missed our estimates due to decreased production from Mako Mining.
  • Mako management has outlined that production will return to normal levels in Q4.
  • Over the last nine months, FISH has repurchased 1.6M shares, decreasing its share count by 1%.

SDRL: The Fleet and Free Cash Flow

By Hamed Khorsand

  • SDRL reaffirmed contract activity remained sluggish even though the Company is 70 percent contracted through the end of 2025. Day rates have not compressed. 
  • SDRL has managed through 2024 with less of its fleet operating than desired due to special surveys and mobilization of two rigs to Brazil.
  • For 2025, SDRL should have two rigs (West Auriga and West Polaris) operating in Brazil giving the Company the ability to grow adjusted EBITDA. 

Tire Industry: Premium Brands Exit Small-Rim Market Amidst Rising Competition

By Farah Miller

  • Premium brands focus on high-value large rims, leaving small-rim markets.
  • Factory closures signal overcapacity as brands exit small-rim tire production.
  • New players gain ground in small-rim segments in Europe and North America.

Valeura Energy (TSX: VLE): High Production in 4Q24. Launching a Share Buyback Programme

By Auctus Advisors

  • The 3Q24 production and cash position at the end of September had been reported previously.
  • Production in September and October stood at ~26.4 mbbl/d. This is very high.
  • The company expects production to be ~26 mbbl/d over 4Q24. We only assumed 24-25 mbbl/d. 

Dic Corp (4631 JP): Q3 FY12/24 flash update

By Shared Research

  • Cumulative Q3 FY12/24 sales reached JPY807.7bn, a 3.3% YoY increase, with operating profit up 158.5% YoY.
  • Packaging and Graphics segment saw improved product mix and price adjustments, boosting operating profit by 78.1% YoY.
  • Functional Products segment sales rose 7.4% excluding divestiture impact, with operating profit increasing 41.8% YoY.

DNG: Knocked it Out of the Park…Again

By Atrium Research

  • DNG reported another record quarter, posting 20% YoY sales growth and 50% YoY EBITDA growth due to the increased gold price and record levels of ore processed.
  • Dynacor again improved its balance sheet, with $42M in cash (up from $35M last quarter) with negligible debt, while also repurchasing shares.
  • We remain bullish on DNG going into 2025 and beyond as its kicks off its plans for expansion in both Peru and West Africa.

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Daily Brief Energy/Materials: SGX Rubber Future TSR20, Paladin Energy, United States Steel, Boustead Singapore Limited, Eastman Chemical Co, Nagaoka International, Select Water Solutions, Arq, VAALCO Energy, Condor Energies and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Weather Favorable For Rubber In Thailand But Can Trouble Indonesia, Vietnam
  • Paladin Pummelled 29% on Production Downgrade
  • United States Steel Corporation: Its Merger with Nippon Steel & 4 Key Factors Impacting Its Performance In 2025 & Beyond! – Financial Forecasts
  • Boustead: A Real Deep Value Play
  • Eastman Chemical Company: Will The Expansion & Flexibility in Production Capabilities Be A Critical Growth Accelerator? – Major Drivers
  • Nagaoka International (6239 JP): Q1 FY06/25 flash update
  • Select Water Solutions, Inc. – High-Margin Water Infrastructure Segment Leads Growth Trajectory
  • Arq, Inc. – Strong 3Q Highlights Improving PAC Performance
  • Vaalco Energy (NYSE: EGY): High production. Balance sheet strength ahead of expectations
  • Condor Energies Inc. (TSX: CDR): Good quarter. Positive signals at high value LNG project for the mobility sector


Weather Favorable For Rubber In Thailand But Can Trouble Indonesia, Vietnam

By Vinod Nedumudy

  • 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 Pummelled 29% on Production Downgrade

By Money of Mine

  • 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.

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


United States Steel Corporation: Its Merger with Nippon Steel & 4 Key Factors Impacting Its Performance In 2025 & Beyond! – Financial Forecasts

By Baptista Research

  • 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.

Boustead: A Real Deep Value Play

By Pyari Menon

  • 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 Chemical Company: Will The Expansion & Flexibility in Production Capabilities Be A Critical Growth Accelerator? – Major Drivers

By Baptista Research

  • 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.

Nagaoka International (6239 JP): Q1 FY06/25 flash update

By Shared Research

  • 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.

Select Water Solutions, Inc. – High-Margin Water Infrastructure Segment Leads Growth Trajectory

By Water Tower Research

  • 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, Inc. – Strong 3Q Highlights Improving PAC Performance

By Water Tower Research

  • 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.

Vaalco Energy (NYSE: EGY): High production. Balance sheet strength ahead of expectations

By Auctus Advisors

  • • 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).

Condor Energies Inc. (TSX: CDR): Good quarter. Positive signals at high value LNG project for the mobility sector

By Auctus Advisors

  • • 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.

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Daily Brief Energy/Materials: Korea Zinc, Iron Ore, Endurance Gold, GCC SAB de CV, Japan Pure Chemical and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?
  • [IO Technicals Weekly 2024/42] Iron Ore Price Reversal Continues
  • EDG: Gaps Begin to be Filled & Drilling Accelerates with 2nd Rig
  • Actinver Research – GCC 3Q24: The EBITDA Margin Expansion Continues (Quick View)
  • Fenix Resources (FEX AU): Small Cap Iron Ore Miner With Great Upside
  • Japan Pure Chemical (4973 JP): 1H FY03/25 flash update


Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?

By Douglas Kim

  • 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.

[IO Technicals Weekly 2024/42] Iron Ore Price Reversal Continues

By Pranay Yadav

  • 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.

EDG: Gaps Begin to be Filled & Drilling Accelerates with 2nd Rig

By Atrium Research

  • 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.

Actinver Research – GCC 3Q24: The EBITDA Margin Expansion Continues (Quick View)

By Actinver

  • 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): Small Cap Iron Ore Miner With Great Upside

By Sameer Taneja

  • 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.

Japan Pure Chemical (4973 JP): 1H FY03/25 flash update

By Shared Research

  • 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.

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Daily Brief Energy/Materials: POSCO Holdings, Cemex Holdings Philippines, APERAM SA, Medco Energi, Panoro Energy ASA, Mammoth Energy Services, Gevo and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • KRX’s Final Call on Value-Up ETF Launch & December Rebalancing Preview
  • CEMEX’s Low-Balled MTO. For Good Reason
  • Aperam Sa – October 10, 2024
  • Morning Views Asia: Adani Green Energy, CIFI Holdings, Medco Energi
  • Panoro Energy ASA (OSE: PEN): Gabon production nears 40 mbbl/d with 3 further wells to come back onstream by YE24
  • Mammoth Energy Services Inc (TUSK) – Tuesday, Jul 23, 2024
  • Gevo, Inc. – A Watershed Moment – $1.63 Billion Conditional Loan Guarantee from the DOE


KRX’s Final Call on Value-Up ETF Launch & December Rebalancing Preview

By Sanghyun Park

  • 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.

CEMEX’s Low-Balled MTO. For Good Reason

By David Blennerhassett

  • 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.

Aperam Sa – October 10, 2024

By VRS (Valuation & Research Specialists)

  • 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

Morning Views Asia: Adani Green Energy, CIFI Holdings, Medco Energi

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): Gabon production nears 40 mbbl/d with 3 further wells to come back onstream by YE24

By Auctus Advisors

  • 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 Services Inc (TUSK) – Tuesday, Jul 23, 2024

By Value Investors Club

  • 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.


Gevo, Inc. – A Watershed Moment – $1.63 Billion Conditional Loan Guarantee from the DOE

By Water Tower Research

  • 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. 

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Daily Brief Energy/Materials: Korea Zinc, Resolute Mining, Waaree Energies, Chemours Co/The, Pbf Energy Inc Class A, SGX Rubber Future TSR20, DT Midstream Inc, Noble Corp Plc and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Entry Opportunities from Delisting Risk Due to Korea Zinc’s Post-Buyback Volume Drying Up
  • Korea Zinc: Court Dismisses the Second Injunction Filed by MBK
  • Quiddity Leaderboard ASX Dec 24: Clarity Pharma and Resolute Mining Competing for ASX 200 Spot
  • Waaree Energies IPO Update- Forensic Analysis
  • The Chemours Company: Expansion of Fluoropolymer Applications & Dealing With Fluctuating Demand! – Major Drivers
  • PBF Energy Inc.: Tackling The Challenges of Maintaining Competitive Market Positioning! – Major Drivers
  • Helixtap China Report: Declining Inventory Point At Improved Demand; Sustainability Questionable
  • DT Midstream Inc.: Leveraging LNG Growth & Commercial Growth Opportunities To Change The Game! – Major Drivers
  • Noble Corporation Plc: Enhancement of Fleet Utilization Driving Our Optimism! – Major Drivers
  • US Rig Count Falls for the Fourth Time in Five Weeks


Entry Opportunities from Delisting Risk Due to Korea Zinc’s Post-Buyback Volume Drying Up

By Sanghyun Park

  • 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.

Korea Zinc: Court Dismisses the Second Injunction Filed by MBK

By Douglas Kim

  • 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. 

Quiddity Leaderboard ASX Dec 24: Clarity Pharma and Resolute Mining Competing for ASX 200 Spot

By Janaghan Jeyakumar, CFA

  • 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 IPO Update- Forensic Analysis

By Nitin Mangal

  • 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: Expansion of Fluoropolymer Applications & Dealing With Fluctuating Demand! – Major Drivers

By Baptista Research

  • 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 Inc.: Tackling The Challenges of Maintaining Competitive Market Positioning! – Major Drivers

By Baptista Research

  • 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.

Helixtap China Report: Declining Inventory Point At Improved Demand; Sustainability Questionable

By Arusha Das

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

DT Midstream Inc.: Leveraging LNG Growth & Commercial Growth Opportunities To Change The Game! – Major Drivers

By Baptista Research

  • 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 Plc: Enhancement of Fleet Utilization Driving Our Optimism! – Major Drivers

By Baptista Research

  • 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.

US Rig Count Falls for the Fourth Time in Five Weeks

By Suhas Reddy

  • 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.

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Daily Brief Energy/Materials: Iron Ore, Copper and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Iron Ore Tracker (21-Oct-2024): China Positive Sentiment Waning
  • Copper Tracker Oct 21st, 2024: The China Malaise Sets In


Iron Ore Tracker (21-Oct-2024): China Positive Sentiment Waning

By Sameer Taneja

  • 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 Tracker Oct 21st, 2024: The China Malaise Sets In

By Sameer Taneja

  • 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.

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Daily Brief Energy/Materials: China Oilfield Services H, Crude Oil and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • A/H Premium Tracker (To 18 Oct 2024): AH Premia Drop Sharply; High Premia May Contract More
  • OPEC, EIA, and IEA Slash Demand Forecasts Again; EIA Sees US LNG Exports Boosting Henry Hub Prices


A/H Premium Tracker (To 18 Oct 2024): AH Premia Drop Sharply; High Premia May Contract More

By Travis Lundy

  • 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, EIA, and IEA Slash Demand Forecasts Again; EIA Sees US LNG Exports Boosting Henry Hub Prices

By Suhas Reddy

  • 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.

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