Daily Brief Energy/Materials: De Grey Mining, Ferrexpo Plc, Rain Industries, YPF SA, Ecovyst, Omai Gold Mines, Zephyr Energy, Empire Energy, KEFI Minerals PLC, Nicola Mining and more

• De Grey acquiring Northern Star for $5 billion
• Northern Star issuing new shares to De Grey shareholders
• Transformational deal with potential for future spin-offs and M&A opportunities

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

• Deliveroo (ROO LN) and Oxford Nanopore Technologies (ONT LN) are newly eligible securities forecasted to be added to F250 due to the recent change of the FCA listing category framework.
• Ferrexpo Plc (FXPO LN) is the new forecasted addition-migration to F250 following its ~25% price jump over the last two days which made it surpass the entry threshold.
• Applied Nutrition Plc (APN LN) is a newly eligible, forecasted to be added to small-cap following its IPO listing on 24 October 2024.

• Rain Industries (RINDL IN) is the largest player of CTP and 2nd largest player of CPC in the world delivering loss due to downcycle in industry.
• CAQM enabled the import of GPC and CPC improved the pricing and demand further and also has created an opportunity for Rain Industries to ramp up its SEZ plant.
• Rain Industries is pivoting to future-ready sectors like EVs and batteries while addressing cyclical challenges. Focused debt reduction and strategic investments enhance its long-term growth potential despite near-term pressures.

• We are initiating coverage on YPF with an Outperform recommendation.
• Improving macroeconomic conditions in Argentina and YPF’s strategic focus on expanding unconventional production and investing in infrastructure, particularly export capacity, are expected to enhance its credit profile.
• We favor the YPFDAR (Caa3/CCC/CCC) 8.500% 2029 unsecured bonds, YPFDAR 9.000% 2029 unsecured bonds, and YPFDAR 9.500% 2031 secured bonds.

• ECVT has gone through several business divestments and acquisitions over its history and the latest news suggests management is not content. 
• The timing is a surprise given the segment is to serve ECVT’s growth trajectory. The segment houses new technologies that should begin to contribute to sales in coming quarters.   
• Advanced materials and catalysts is also the segment that owns the 50% stake in JV Zeolyst, which has been core of issues this year related to ECVT’s adjusted EBITDA performance.   

• What you need to know: • Omai announced another batch of assay results, reporting three holes with two hitting very wide intercepts with high-grade.
• • The two holes reported highlight intercepts of 3.16 g/t Au over 68.7m and 4.57 g/t Au over 45.5m.
• • Assays from seven holes remain pending and the three drills are expected to continue drilling well into the new year.

• • 3Q24 production was 1,047 boe/d.
• Zephyr has re-iterated its FY production guidance of 1,100-1,300 boe/d.
• We are cautiously assuming 1,100 boe/d.

• RaaS has published an update report on NT-focused gas explorer/producer Empire Energy Group (ASX:EEG) following the recent announcement that it had executed binding commitment letters for a $65m finance package, in three separate facilities.
• This is the critical piece of the capital funding requirement to support the Carpentaria Pilot Project to first gas as we see it.
• Importantly we suggest the securing of the package can be interpreted as a third-party vote of confidence in the commercial potential of the Beetaloo gas play.

KEFI has announced that it is raising c £10.6m by issuing c 1.9bn shares at a price of 0.55p. The full raise is in five parts: a firm placing, a retail offer, a conditional placing, a conditional subscription and a conditional issue. The first two have now been completed, raising £5.4m (gross) via the issue of 988.5m shares. The remaining three require shareholder approval from a general meeting on 2 January. Assuming this to be the case, they will raise a combined £5.1m (gross) via the issue of a further 933.2m shares.

• What you need to know: • Nicola announced an operational and exploration update on its 2024 drill program.
• • NIM made a deposit for a Notice of Work and Reclamation Program at the Dominion Creek Project, which is an important milestone in obtaining the final permit for a bulk sample in 2025.
• • NIM completed a flow-through private placement of 1.6M shares at $0.335/share.