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
- 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
- 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
- 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
- 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
- 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
- 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
- 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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