Daily Brief Energy/Materials: JSR Corp, Orecorp Ltd, Gold, Alternus Clean Energy Inc, Wheaton Precious Metals, Chariot Limited, Evolution Petroleum, Pulsar Helium, ADX Energy Ltd and more

• The Tender Offer is finally here. JIC announced the official launch after the close today.
• JIC appears to be taking on the SUNY RF risk as-is. The Tender Offer details vs the original expectations in the late June 2023 document are unchanged. 
• Once started, unless a US court approves an injunction causing regulatory delay, this is done. But there are path events. And of course there is a double arb here.

• JSR Corp (4185 JP) notes that the pre-condition for JIC’s tender has been satisfied. The offer price remains unchanged at JPY4,350 per share. 
• The offer remains attractive despite the material re-rating of peers. The tender should succeed when combined with shareholder fatigue and a lack of vocal opposition. 
• The tender requires a 66.7% minority acceptance rate. The gross and annualised spread for a 23 April payment is 0.6% and 7.1%, respectively.

• Back in August, Silvercorp  (SVM CN) bid A$0.15/share and 0.967 scrip for Orecorp (ORR AU); and secured board support after bumping the cash portion to A$0.19/share via an Off-market Offer.
• Perseus Mining (PRU AU) countered on the 22 January with a A$0.55/share Offer, which was rejected by Orecorp, ostensibly over concerns Perseus had not secured Tanzanian Fair Competition Commission approval.
• That regulatory approval has now been satisfied. The Offers for both Perseus and Silvercorp are conditional on 50.1% acceptance hurdles. I think Perseus’ all-cash Offer is superior.

• Gold and Bitcoin prices both remain massively supported by easing financial conditions and a bunch of liquidity in the market.
• While the Fed Funds Rate remains high at 5,5% – liquidity conditions in the market is what really matters for both safe haven assets.
• Meanwhile, J.P. Morgan announced that gold is their number one pick in the commodities market. According to them, the price has room to rise towards $2.500.

• Alternus Clean Energy, Inc. (Alternus) is a transatlantic clean energy independent power producer (IPP) that develops, installs, owns, and operates small utility-scale and community solar parks (5 MW to 200 MW) in the US and Europe.
• The company aims to reach 1.5 GW of operational projects through organic development and strategic acquisition  within the next three years.
• Alternus differentiates itself by focusing on small utility-scale and community solar projects with a fully vertically integrated execution strategy ranging from project development through to long- term asset management.

Wheaton’s (WPM’s) Q4/FY23 results were released after the market close on 14 March, within the context of known metals sales and almost known production. Even so, net earnings were US$2.9m (or 1.8%) better than our prior forecast for the quarter, largely as a result of achieved metals prices that were higher than average market prices. Otherwise, the quarter was characterised by accelerated levels of investment into underlying mineral streams and the announcement of a new, progressive dividend policy.

• • Chariot is initiating a strategic review of its Transitional Power business.
• • The business includes multiple wind and solar projects in Southern Africa (with a solar project already operational in Burkina Faso).
• It also includes a power trading licence in South Africa.

• Encouraging initial results from both the Chaveroo Oilfield Strategic Partnership and the recently closed SCOOP/STACK acquisition point to the merits of adding an organic growth element to Evolution’s asset base.
• The addition increases management’s capital allocation choices to balance reinvesting in the underlying asset base, reducing leverage, and returning cash to shareholders.
• The first three horizontal wells in the Chaveroo field have met or exceeded pre-drill expectations.

• The analysis of eleven samples from the Jetstream #1 well at Topaz by two different laboratories revealed helium content of up to 13.8%, specifically from a sample obtained at 1,801ft in-hole depth.
• Because of the clear presence of small amounts of atmospheric air contamination in the samples, a third party expert from the Woods Hole Oceanographic Institution concluded that 13.8% helium should be considered as representing a minimum concentration estimate .
• The analysis demonstrates an increase from the previous estimates from measurements on site of up to 12.4% helium concentration.

• The Welchau well (ADX WI: 75%) encountered 115 m of liquids-rich gas shows in the primary target formation (Steinalm Formation) between 1452 m and 1567 m.
• The deepest gas shows were encountered at a depth of 1645 m.
• The well has reached TD at 1733 m.