Daily Brief Energy/Materials: Anglo American, Barito Renewables Energy, Inox Wind Ltd, S&P 500 INDEX, Genel Energy, Gold, Adriatic Metals PLC, IsoEnergy and more

• Over the weekend, the FT reported that Anglo was urged by top shareholders to extend talks with BHP over its proposed merger. 
• BHP’s third unsolicited non-binding offer was rejected last Wednesday. The merger exchange ratio was raised by 9% to 0.886, an increase of 24.8% on the initial offer ratio.
• Anglo left the door open for talks, extending the PUSU deadline for BHP to make a firm offer by 1 week to this Wednesday (29 May).

• Barito Renewables Energy (BREN IJ) raised around US$200m in its Indonesian IPO, after pricing at the top end at IDR780/share. Its eight-month lockup will expire on 29th May 2024.
• Barito Renewables (BR) is Indonesia’s largest geothermal power producer, and the third-largest globally by installed capacity, as per the firm.
• In this note, we will talk about the lock-up dynamics and updates since our last note.

• Impending block deals which generally create supply over-hang on the stock leads to a negative impact on the stock
• These block deals generally include selling promoters and big funds at a price discount to its current market price
• Historically, such events suggest once the block deal is done; stock reacts positively creating a Special Situation Opportunity

• S&P 5700 year end target remains intact after MONTHLY breakout. 
• Copper and silver rally to resume with dollar potentially falling.
• Semis continue to lead tech and look for software to join.

• Genel Energy is a high-risk arbitration opportunity with potential for significant reward due to its legal dispute with the Kurdistan government
• Despite previous market capitalization reduction in the 2014 oil crisis, Genel Energy is now an undervalued asset with strong cash position and minimal debt
• With current market cap at £210 million and significant cash reserves, the company has notable potential for growth, but the unpredictable nature of the situation makes it difficult to model or quantify with certainty

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.

• Expectations of an “above-normal” monsoon in 2024 currently help to keep prices for commodities that are in large parts grown in India under control.

• That includes rice as well as sugar prices.

• According to the IRI’s latest ENSO forecast, La Niña becomes the most probable category in Aug-Oct, 2024 through Jan-Mar, 2025.

• Adriatic is raising an additional $50 million in capital through a discounted offering
• Orion is selling down half of their equity position in the raise, with plans to trim further after 90 days
• Queens Road Capital converted their $20 million convertible debt into equity ahead of schedule in March

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

• Uranium spot prices are up 84% since our last report in late 2022, yet we still expect further momentum in the sector.
• The sentiment on nuclear power from governments around the world has begun to shift, with many nations ramping plans for reactors.
• While new mines begin production and future mines achieve financing, we continue to believe the current spot price is too low in the short term.