Daily Brief Energy/Materials: Almac, BillerudKorsnas AB, Omai Gold Mines, Sappi Ltd, Lithium Power International, Sibanye Stillwater and more

• Almac IPO is likely to benefit from the change in IPO regulations in Korea, which could result in a spike in its share price in the first day of trading.
• Starting next week, the Korean IPO rules are changed so that the price limit on the newly listed companies will be expanded to 60-400% of the IPO price.
• We believe Almac’s shares could OVERSHOOT by more than 200-250% versus the IPO price on the first day of trading, which would be 150,000 won to 175,000 won per share.

• In this insight, we take a look at the names leading the race to become ADDs/DELs for the SE600 and EURSTX Indices for the September 2023 Rebalance.
• There could be one intra-review deletion for the SE600 index in July or August.
• I see 4 ADDs and 4 DELs for the SE600 index in the September 2023 Rebalance.

• The Company has completed 11 drill holes, totalling 3,569m.
• This morning, Omai Gold Mines Corp. (OMG:TSXV, OMGGF:OTC) announced additional outstanding drill results from the Omai gold project in Guyana.
• In 2023, a total of 3,569m have been completed in 11 holes with one hole being reported today.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
Sappi’s ESG is “Strong”, driven by its “Strong” Environmental and Governance scores. The Social score is “Adequate”. Controversies are “Immaterial” and Disclosure is “Strong”. 

Sappi is a constituent of the FTSE4Good Index. All of the company’s regions (Europe, North America and South Africa) received a Platinum rating from EcoVadis for corporate social responsibility in FY 2022. The Platinum rating recognises the Top 1% of companies evaluated by EcoVadis.

Lithium Power International (LPI) has entered into a binding agreement to sell its 100%-owned Australian lithium tenements to Albemarle. This is an all-cash transaction that will see LPI receive A$29m on completion, which is expected in early July 2023. The company will use the proceeds to further advance its flagship Maricunga lithium project in Chile. The deal is positive in our view in that it allows LPI to significantly extend its cash runway without further diluting its shareholders.

• Sibanye Stillwater Limited has experienced a few noteworthy developments of late.
• The stock is theoretically undervalued and possesses a non-cyclical dividend policy.
• Nevertheless, ever-rising risk premiums might send Sib Kanye’s valuation into the abyss.