Energy & Materials Sector

• Overseas institutions might tender around 4%, locals about 6%, giving a realistic max of 10%. MBK may struggle to even reach that minimum of 7%.
• Mirae Asset and Samsung Life, holding the largest portion of the targetable stakes, hinted they’ll participate in the tender but won’t tender all their shares.
• Allocation risk for the tender is minimal, but cancellation risk remains. MBK may barely exceed the 7% minimum, making predictions tough and reducing chances of a post-tender stock price drop.

• Himadri Speciality Chemical (HSCH IN)‘s expansion into Li-ion batteries and tires, with a massive Rs. 1,100 crore capex and Birla Tyres acquisition.
• Diversification into sunrise industries boosts margins, strengthens competitive positioning, and supports long-term growth.
• HSCL’s evolving business model makes it more than just a carbon company, enhancing its growth potential and resilience.

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.

• China Hongqiao
• Continuum Green Energy

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Biocon Ltd
2. Yankuang Energy Group
3. Wynn Macau Ltd
4. Rakuten
5. China Jinmao Holdings

and more…

• Chevron’s Q3 revenue is expected to decline by 7% YoY, with EPS projected to fall 8.9% due to contracting refining margins and lower price realisations.
• The early September plunge in oil prices may further squeeze already tight refining margins. Management anticipates a slowdown in output due to increased maintenance in Q3.
• Chevron became the most shorted large-cap stock in the US in August, with shares shorted increasing by over USD 200 million amid growing bearish sentiment.

• WTO chief Ngozi Okonjo-Iweala’s request goes unheeded  
• EPP agriculture chief quotes EC chief offering temporary solution  
• EUDR system to be opened for user registration in November

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

Pan African Resources’ (PAF’s) FY24 results, announced on 11 September, were within 1% of our prior forecasts for both EPS (4.14c cf 4.17c) and headline EPS (HEPS; 4.15c cf 4.17c). However, if the contract liability related to its ZAR400m financing facility for Mintails is stripped out, we calculate that PAF would have recorded HEPS of 5.27c, which would have been close to the top of the range of analysts’ expectations and also a record for both 12-month and six-month periods. While arguably academic for FY24, this nevertheless sets the stage for more material EPS and cash flow increases in the future as the Mintails contract liability concludes in February 2025 at the same time that opex stabilises and capex begins to fall away.

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

• The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
• In this insight, we take a look at the potential ADDs/DELs for SET 50 during the index rebal event in December 2024.
• Currently, we see 3 expected ADDs/DELs and given that the 3-month reference period used for average market cap rankings have now started the rankings may be more stable. 

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
• The key stocks mentioned in this regular insight include: Dongyue Group (189 HK), C&D International Investment (1908 HK), and China Aoyuan Property (3883 HK).

• Huy Anh Natural Rubber appoints Koltiva to help it  
• VRG holds training as per PEFC ST 2002-1:2024 Module Standard  
• Experts call for a national support website

• For the week ending 20/Sep, US crude inventories declined by 4.5m barrels, surpassing expectations of a 1.3m barrel drawdown. Gasoline and distillate stockpiles also decreased more than analyst estimates.
• US natural gas inventories rise 47 Bcf for the week ending 20/Sep, lower than analyst expectations of a 52 Bcf buildup. Inventories are 7.1% above the 5-year seasonal average.
• BP and Shell experienced rating downgrades and target price reductions, while TotalEnergies and Exxon Mobil saw upward revisions in their target prices.

• CEO and Director Patrick Gruber joined us on the WTR Small-Cap Spotlight to discuss Gevo’s recent acquisition of Red Trail in North Dakota.
• Those interested can listen to this podcast on Apple Podcasts, Spotify, or on our website
• With the planned $210-million Red Trail acquisition, Gevo will add low-carbon ethanol and carbon capture and sequestration (CCS) as new operational business lines. 

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

• ChampionX Corporation recently discussed their fourth quarter and full year 2023 earnings, revealing a mix of achievements and strategic initiatives that position the company for future growth while acknowledging some market challenges.
• The company reported a solid performance for the fiscal year 2023, marking significant financial milestones.
• ChampionX expanded its adjusted EBITDA margin by 430 basis points and achieved a 25% growth in adjusted EBITDA.

• 1H24 sales volumes in the Williston were 1,239 boe/d.
• The FY24 production guidance for the Williston is unchanged at 1.1-1.3 mboe/d.
• This excludes >100 boe/d of natural gas liquids.

• Magnolia Oil & Gas Corporation reported their Second Quarter 2024 earnings with a few key highlights indicating both challenges and achievements.
• In the positive spectrum, Magnolia achieved a record total company production of approximately 90,000 barrels of oil equivalent per day, marking a year-over-year growth of 10% and a sequential increase of 6%.
• This is particularly notable in their Giddings segment, which reported a production rise of 21% compared to the previous year, with oil production growing by 28%.

• NOG (Northern Oil and Gas, Inc.), in its second quarter earnings for the fiscal year 2024, presented a solid operational and financial performance, hinting at strategic advancement and operational efficiency, albeit with considerations regarding market dynamics and strategic executions.
• The company reported a 31% year-over-year increase in its adjusted EBITDA and an approximately 33% rise in cash flow from operations, excluding working capital changes.
• This growth is underscored by an effective management of debt levels, maintaining a low debt-to-equity ratio which stood at around 1.1, similar to the previous year, despite significant capital investments and acquisitions.

• KRX 300 hit 1 trillion won AUM fast, but with local pensions more aggressive, the value-up’s early AUM could top 1 trillion, hitting up to 3 trillion in six months.
• Hanjin KAL, S1 Corp, Hyundai Elevator, Nice Info, and Huchems are set for strong price action. The financial sector also stands out, seeing the biggest impact compared to other sectors.
• Small caps under 1 trillion won see little passive impact, but solid plays exist under 3 trillion, so splitting large and small caps won’t limit target options much.

• Hankyung reports MBK will raise Korea Zinc’s tender offer to ₩750,000 (14%) and Young Poong Precision’s to ₩25,000 (25%) before today’s market opens.
• Hankyung and Maeil are top sources for market scoops, so it’s almost certain MBK leaked the tender price hike ahead of today’s trading.
• MBK leaves Choi just five trading days to respond. Korea Zinc plans to raise ₩400 billion, but it’s still not enough for a counter-bid.

• MBK announced that it will raise the tender offer prices on Korea Zinc by 13.6% to 750,000 won and Young Poong Precision by 25% to 25,000 won. 
• If 100% of the 3,024,881 shares of Korea Zinc tender offer is completed, at the revised tender offer price of 750,000 won, this would be 2.27 trillion won in amount.
• In term of probabilities, we would put a 80-85% probability that MBK/Jang family successfully completes the tender offers and takes over the controlling stakes of these two companies.

• MBK Partners has increased the Tender Offer prices for Korea Zinc (010130 KS) by 13.6% to ₩750,000 and Young Poong Precision (036560 KS) by 25% to ₩25,000.
• All other terms remain the same.  IF MBK secures the maximum 14.61% in KZ, this will be Korea’s largest-ever Tender Offer.
• MBK made a public offering correction announcement today. The Choi family now has 5 business days in which to respond with a counteroffer.

• Tocvan is centred around its clear and achievable objectives, looking to develop its flagship Gran Pilar Gold Project to near-term production.
• Following a maiden resource this fall, a pilot plant is expected to be permitted, constructed, and producing gold as early as H1/25.
• Beyond the pending resource estimate, the Gran Pilar Project shows significant growth potential across its 2,200ha+ land package.

• Deepak Fertilisers & Petro (DFPC IN) commissioned 500KT of ammonia plant that will remove their dependence on import of critical raw material.
• DFPCL’s TAN capacity stands at 629 KTPA, with plans to increase it to 1,000 KTPA by FY26 through a new facility in Gopalpur, Odisha.
• Deepak Fertilisers & Petro (DFPC IN) is about to complete its restructuring by creating a separate subsidiary for mining chemicals, which in future they may plan to list separately. 

• ADD slapped on the US, the EU, the UK, and Singapore imports
• ADD probe initiated against Canada, Japan and India
• Russia to be a major beneficiary of the measures

• The S&P 500 (SPX) is approaching 5783, which is the upper-end of an important target/resistance area we have discussed for over a month (5670-5783).
• 2007 SPX topping analog has tracked the current market almost perfectly, suggests a 2% or less move above the prior all-time high set in July at 5670 before topping (i.e.,5783)
• SPX is “breaking out” which is bullish, but time and time again we have seen bull/bear traps (false breakouts/breakdowns) at major turning points. Bull trap confirmed on break below 5670

• US natural gas prices rose by 5.6% for the week ending 20/Sep, driven by a shrinking storage surplus and an improved demand outlook.
• Henry Hub Put/Call volume ratio rose to 1.69 (20/Sep) from 1.45 the previous week as put volumes rose by 102.7% WoW, while call volumes grew by 74.4%.
• Put OI surged for contracts expiring on 25/Sep, Oct, and Nov. Call OI rose for expiries on Dec, Jan, Feb, and Mar.

• WTI futures increased 3.4% for the week ending 20/Sep, driven by the Fed’s rate cut, supply disruptions in Libya, and falling US crude stockpiles, which alleviated demand concerns.
• WTI options Put/Call volume ratio fell to 0.83 (20/Sep) from 1.30 (13/Sep) as put volume fell by 45.8% WoW while call volume fell by 14.6%.
• WTI OI PCR grew to 0.77 for the week ending 20/Sep from 0.76 on 13/Sep. Call OI fell 16.7% WoW and put OI declined by 16.1%.

• Current production has reached 950 bbl/d, representing an increase of 90 bbl/d since August.
• This reflects the very good performance of the work-over programme with 98 bbl/d incremental production from three new workovers in Tranche 3 from early August.
• Overall, the programme (three tranches with a total of 11 work-overs so far) has delivered 227 bbl/d of incremental production.

• ADF announced $55M in new contracts across Quebec and the U.S. Midwest, including additional work for its U.S. pharmaceutical client.
• Today’s announcement gives us further confidence that ADF can continue to grow the backlog as the infrastructure spending cycle prolongs.
• ADF trades at 3.5x EBITDA, the lowest multiple we have seen since covering the stock and a major discount to its peers and precedent transactions.

• In this insight, we discuss three particular allies that could help the Choi family that have been highlighted by the local media including Hanwha, KIS, and Softbank.
• The Hanwha Group is one of the largest shareholders of Korea Zinc. In addition, Hanwha Group Vice Chairman Kim Dong-Kwan has a close relationship with Korea Zinc Chairman Choi Yoon-Beom.
• Korea Zinc is planning to hold an important press conference on the 24 September to reveal its position on the tender offer of Korea Zinc shares by MBK.

• Back on the 23rd July, YTL Cement entered into a S&P agreement with 98 Holdings to acquire a 81.24% stake in building material manufacturing/supplier NSL Ltd (NSL SP) at S$0.75/share. 
• Pre-Conditions are now satisfied, and YTL Cement has launched a mandatory unconditional cash Offer. The Offer price is also S$0.75/share. 
• Super straightforward deal. And will trade tight to – or through terms. YTL’s intention is to maintain NSL’s listing. 

• Over the past week we visited parts of Kazakhstan, the 9th largest country in the world.
• Long a favorite of the oil and uranium industry the country is now attracting more metals and mining exploration activity.
• Arras Minerals (ARK V EQUITY) has assembled the 4th largest exploration package and is looking for elephant sized gold/copper deposits. Success at any of its projects could catapult shares higher.

• Adverse weather impacts Chinese prices   
• Arbitrage buying spurs prices up  
• TSR inventory drops in September 

• US oil and gas rig count fell by two to 588 for the week ending 20/Sep, the fifth decline in six weeks, after rising by eight last week.
• The US oil rig count stayed flat at 488 after rising by five last week. Gas rigs fell by one to 96, marking its fourth decrease in five weeks.
• For the week ending 20/Sep, US energy producers added two rigs in Texas. Conversely, they cut one rig each in Colorado, Louisiana, New Mexico, and Utah.   

• SGX Iron Ore futures closed the week $1.38 lower, with wide trading range of $5.85/ton in a week filled with economic releases including FOMC and PBoC rate decisions.
• Momentum indicators are neutral; RSI at 37.70 signals potential upside, while the price remains below key moving averages, including the 9, 21, 50, 100, and 200-day SMAs.
• Prices broke below key volume profile support at $91.27 and may see a short-term rebound to $90/ton due to limited trading volume below this level.

• Schlumberger’s Q3 2024 revenue is projected to increase by 12% YoY and EPS by 15.4%, driven by international growth, digital sales, and cost-efficiency programs.
• Management expects 2024 EBITDA margin to reach or exceed 25%, driven by stronger H2 performance led by seasonally higher year-end digital and product sales.
• Schlumberger announced a milestone in sustainable lithium production and secured significant contracts through its carbon capture and OneSubsea joint ventures.

• Allegiant provided an update on its ongoing 5,000m 2024 drill program at Eastside.
• AUAU will look to update its mineral resource estimate at Eastside by Q1/25, noting that the most recent update was in July 2021, with much drilling being done since.
• We recently initiated coverage on Allegiant, find the report here.

• The fourth horizontal well at Carrizales Notre (CNB HZ-5) has been put on production at a gross oil rate of 2.7 mbbl/d (1.35 mbbl/d net to Arrow) with a water cut of 11%.
• This flow rate compares favourably with CNB HZ-4 that was put on production at a gross oil rate of >2.5 mbbl/d (8% water cut).
• Overall gross oil production from the three other horizontal wells is ~5.62 mbbl/d (~2.8 mbbl/d net to Arrow) including 2.1 mbbl/d for CNB HZ-4, 1.9 mbbl/d for CNB HZ-3 and 1.6 mbbl/d for CNB HZ-1.

• MBK is watching for a 1 million share trading volume, as that may prompt neutral institutional investors to sell rather than participate in the tender, triggering a price hike.
• MBK may raise the tender price to ₩900,000, a 35% jump, with a local pension fund CIO suggesting it’s the sweet spot for participation.
• MBK believes securing the minimum target would give them 44% voting rights, enough to push their proposals, indicating they’ll go all-in for that 7% stake in this first attempt.

• With increasing market volatility, base metals continue their rocky weekly performance. Copper was up marginally maintaining a level over 9000 USD/ton.
• Copper inventories declined at the exchanges, with ~428k tons combined at Comex, LME, and Shanghai, down almost 9% in the last two weeks.
• Read our recent initiation on Antofagasta PLC (ANTO LN), contrasting it with Southern Copper (SCCO US) titled Antofagasta (ANTO LN): An Initiation on a Mid-Sized Copper Miner. 

• Iron underperformed the commodity complex, falling 1.2% WoW, vs the average complex performance of 3% WoW. 
• PBOC rate cuts have yet to spur borrowing significantly. Despite the seasonal uptick, loan growth has trended negatively.  
• We remain cautious till China shows any sign of a pick-up in demand. Indicators like mill margins and property/auto demand continue to be uninspiring. 

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.

• Adaro Energy
• Medco Energi
• Meituan

• ATI’s earnings for the second quarter of 2024 have underlined robust performance with several notable achievements and positive guidance updates, along with particular areas of focus and needed improvement.
• These highlights capture both the company’s current strengths and the challenges it navigates in a competitive and evolving market.
• 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.

• On the 13th September, MBK joined Young Poong (000670 KS) in seeking control of Korea Zinc (010130 KS) via Partial Tender Offers for KZ and Young Poong Precision (036560 KS).
• This situation has been canvassed by analysts here at Smartkarma; with increasing expectation the Choi family makes a counterbid.
• This insight analyses the fair value of YPP. No matter how you slice it, the Offer Price is punchy. Perhaps not punchier enough.

• In this insight, we discuss in detail MBK’s four major concerns on the management of Korea Zinc. 
• We believe that MBK has legitimate concerns on especially the three factors including poor investments, deteriorating profitability, and increase in equity capital/disposal of treasury shares. 
• If and when the 2 trillion won+ is raised, then it could lead to another tender offer and the four concerns highlighted in this insight become much more important.

• Lotus released a scope and study for the Little Cane project in Botswana
• The project hosts a low grade resource with 71% inferred
• The study includes three scenarios for production and focuses on reducing the need for drill and blast operations, potentially using drag lines for waste removal.

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

• US ADD measure expected to be in force from Sept 27
• Bombarded by Chinese exports Canada too join ADD league
• Tesla exports from China faces ADD in Canada, EU excuses

• For the week ending 13/Sep, US crude inventories dropped by 1.6m barrels, surpassing the expected 0.2m barrel decline. Gasoline stockpiles grew less than forecasted, while distillate inventories rose more.
• US natural gas inventories rise 58 Bcf for the week ending 13/Sep, more than analyst expectations of a 53 Bcf buildup. Inventories are 8.6% above the 5-year seasonal average.
• Chevron, Occidental Petroleum, and Exxon Mobil see target price cuts. DBS Bank initiated a Buy rating on Schlumberger and Halliburton.

• Condor has received a second natural gas allocation to feed the second modular LNG plant near the Kuryk Port on the Caspian Sea.
• The natural gas allocation will allow the company to produce the energy equivalent of 565,000 litres of diesel per day (~400 t/d of LNG).
• This is line with the company’s targets and is a key milestone in derisking the Kuryk plant.

• China’s State Administration for Market Regulation has formally accepted  Shandong Xinjufeng Technology  (301296 CH) (XJF)’s filing. That’s positive. SAMR previously okayed XJF’s initial 28.22% stake from Jardine Matheson (JM SP).
• No new update on co-founders Jeff Bi and Gang Hong’s non-binding Offer. 
• Separately, the EGM requisitioned by XJF to appoint two XJF-friendly directors progresses.

• Hankyung Business Daily reported that Korea Investment Securities (KIS) is in a serious discussion with the Choi family of Korea Zinc to step up as a white knight.
• KIS/Choi family are considering a plan to launch a counterbid against Jang family and MBK by investing around 2 trillion won+ along with other private equity funds.
• It is probable that tender offer price of Korea Zinc could be raised by 15-25% due to a likely counterbid and current price trading 7% higher than tender offer price.

• Prices showing uptrend after a marginal slide in recent times  
• Kerala climate conducive for production, leading to good yield  
• More regions in bid to expand rubber area buoyed by higher prices

• The key issue is if KIS can form a consortium. PEFs are saying the timeline is too tight and are concerned about the unclear exit strategy.
• To make this work, PEFs need Choi’s 15.65% Korea Zinc stake as collateral, but much of it is already tied up, limiting cash-raising potential.
• They’ll likely continue to leak news to boost the price and buy time. But this will also push MBK to sweeten their offer sooner.

• MBK’s funding plan for Korea Zinc involves using ₩1T from their 6th Buyout Fund and the rest via debt. This setup leaves room to potentially increase the tender price.
• The key question is if there’s enough upside at this price. MBK’s silence on abandoning Youngpoong suggests they’re unlikely to fully bail on Korea Zinc even if the tender fails.
• With MBK’s strategy leaked, institutions may hesitate, fearing less price drop risk, suggesting a proxy battle could heat up. We should consider spread trading and post-tender price moves.

• Sherwin Williams offers a 6.9% yield for the next four years or more through a diversified portfolio of bonds.
• The company is a leader in the paint and coatings industry, with a focus on professional painters and industrial applications.
• Sherwin Williams has a long history and has been a quiet compounder, compounding earnings at 14% per year over the last 20 years.

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

• Source Energy Services is a producer, supplier, and distributor of high-quality Northern White Frac Sand primarily in the Western Canadian Sedimentary Basin
• The company offers an end-to-end solution through its Wisconsin sand mine assets, producing 4.8mmtpa of tier 1 Northern White Sand
• Source Energy Services issued 10.5% senior secured notes in December 2020, offering an attractive opportunity at current prices with a low-risk carry of 10.5%

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.

• TM announced a key production milestone, having mined 980tpd over a 30-day period, surpassing a threshold in the Sprott streaming agreement.
• This news de-risks the project as Trigon is no longer required to convert the principal advance into a loan (more detail below).
• As a result of the highly successful underground mining operations, the Company has decided to pause the open pit and only process high-grade underground ore.

• As of today, it’s clear Choi is struggling to secure white knights, pushing him to double down on political lobbying to stay in the game.
• Choi’s aiming for the National Pension Service’s 7.57% voting rights, but with its legal neutrality, the chances of it caving to political pressure are slim.
• MBK’s statement today shows confidence that Choi won’t get Fair Trade Commission approval, and that, like Hanwha and LG, Hyundai Motor won’t back him either.

• On Friday in the closing auction, JSE indices will be rebalanced. PPH will enter the Top 40, with AMS falling out.
• There are also a number of changes to the ALSI index – PHP & PMR will be added, with THA & TCP falling out.
• Hedgers and passives tracking uncapped indices will be sellers of Naspers and Prosus whereas those tracking the capped variants will be buyers.

• China’s industrial production grew 4.5% YoY in August, missing the 4.7% forecast and marking the slowest growth since March.
• Property investment fell 10.2% YoY YTD, with house prices declining 5.3% YoY, the steepest since 2015.
• Iron ore imports dropped 1.38% MoM as port inventories rose continued rising into September. Typhoon Bebinca disruptions may drive inventory drawdown in coming weeks.

• Malaysian glove industry to rake in RM12.4 billion in exports in 2024  
• Ivory Coast lags in imports to Malaysia after 9-month lead  
• Home Ministry lets 10,000 foreign workers in to meet labor shortage

• SGX Iron Ore futures closed 55 cents higher at $92.80/ton, after fluctuating between a $95.55/ton high and $89.60/ton low.
• Short-Term technicals reveal bearishness as the 9-day moving average fell below the 21-day, triggering a death cross signal.
• Iron ore prices failed to sustain a 50% Fibonacci retracement level, indicating weak market support amid poor fundamentals.

Pan American Silver (PAAS) has released its annual mineral reserves and resources statement. While the overall reserves and resources have fallen compared to 2023 due to the asset divestments, on an adjusted basis the company has fully replaced its proven and probable (P&P) reserves and reported a significant increase in measured and indicated (M&I) resources in the silver segment. The gold segment has seen a visible boost to its inferred resource due to exploration work at Jacobina, which has also seen a healthy increase in its P&P reserves despite maintaining flat M&I resources over the year. Overall, six out of 11 producing operations, including flagship Jacobina and La Colorada, have seen their mineral reserves either fully or almost fully replaced in tonnage terms during the year to June 2024.

• 1H24 production of 5,851 boe/d had been reported previously.
• Pharos has re-iterated its FY24 production guidance of 5.2-6.5 mboe/d.
• The company expects to spend US$26 mm (net) capex in 2024 (US$27 mm previously).