Daily Brief Energy/Materials: CPMC Holdings, Adbri, Medco Energi, Newmont Mining, Osisko Mining, Reliance Steel & Aluminum, TechnipFMC , Crown Holdings, Dow , Eastman Chemical Co and more

• CPMC Holdings (906 HK) has a pre-conditional voluntary offer from Changping Industrial at HK$6.87 and potentially a competing offer from ORG Technology Co., Ltd. A (002701 CH). 
• Five months after announcing its offer, Changping Industrial obtained regulatory approvals from all except SAMR, SAFE, and the Vietnam Competition Commission. 
• An ORG offer seems unlikely due to a lack of progress in May and timing risk, as the Changping Industrial offer could be unconditional before the ORG obtains regulatory approvals.

• The Adbri (ABC AU) IE considers CRH (CRH US) and Barro’s A$3.20 offer fair and reasonable as it is within its A$ A$3.09-3.53 per share valuation range. 
• The scheme is conditional on FIRB approval, which should be forthcoming as CRH, the offeror, is a Fortune 500 company headquartered in Ireland.
• The offer is attractive, and this is a done deal. At the last close and for the 1 July payment, the gross/annualised spread was 1.3%/8.4%.

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.

• Adani Green Energy
• Japfa Comfeed Indonesia
• Medco Energi
• Pakuwon Jati

• The first quarter 2024 earnings for Newmont Corporation presents an operational and strategic snapshot for the company in a balanced manner.
• To lay out the salient attributes and challenges of investing in Newmont: Positively, Newmont executives highlight the company’s robust operational performance for the 1st quarter 2024.
• Despite experiencing the loss of three employees due to on-site incidents, Newmont still looks set to meet its 2024 guidance, thereby proving the underlying stability of its operations.

• Osisko Mining trading at 20% discount to Gold Fields’ joint venture valuation for Windfall gold project in Québec
• Despite initial disappointment and recent sell-offs, Windfall deposit ranks in top 10 globally for size and grade
• Gold Fields’ $900mn investment fully funds development costs with expected low All-In Sustaining Costs, making Windfall a significant player in the global gold market.

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.

• Reliance Steel reported robust growth and substantial gains in Q1 2024, supported by their business model’s resilience.
• Their products, markets, and geographical diversity delivered a strong performance for the quarter, demonstrating growth amidst challenging pricing situations.
• The earnings results showed non GAAP earnings per share amounting to $5.30 per diluted share, indicating the organization’s solid profitability.

• TechnipFMC, an energy services company, has reported a strong performance in the first quarter of 2024, with total company revenue of $2 billion and adjusted EBITDA amounting to $257 million.
• The company’s inbound orders stood at $2.8 billion.
• Important to note, substantial input was driven by newly introduced technologies, some of the industry-first stepping stones that aim to unlock opportunities in both new and mature offshore basins.

• Crown Holdings is a global leader in metal beverage can production and diversified packaging businesses
• Beverage can segment is profitable and benefits from long-term growth trends
• Potential for significant upside as investment program winds down, cash flow improves, leverage decreases, and focus turns to returning capital to shareholders

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.

• In the first quarter 2024 earnings of Dow, Inc., the company demonstrated precision in navigating market complexities and pursuing strategic growth opportunities.
• While acknowledging the potential for economic recovery, they also recognized concerns around inflation, interest rates, and geopolitical tensions.
• Throughout the first quarter, Dow showed increased operating rates to meet the rising demand while keeping pricing consistent and benefitting from decreased feedstock and energy costs.

• Eastman delivered a decent result and is looking forward to the circular platform despite facing some operational and regulatory challenges.
• The company’s Kingport plant, which is focussed on recycling and is the world’s largest chemical recycling facility, has been running satisfactorily with no disruptions to customer supply.
• The complexity of the plant’s technology and process, however, has led to some initial mechanical issues.