Daily Brief Energy/Materials: JX Advanced Metals, Spartan Resources, Coromandel International, Ramelius Resources, Nanshan Aluminium International Holdings, Anglo American Platinum , Fujiyama Power Systems Ltd, S&P 500 INDEX, Base Oil and more

• JX Advanced Metals (5016 JP) priced its IPO at JPY820 per share to raise gross proceeds of US$2.5 billion. The shares will start trading on 19 March.
• Relevant notes: JX Advanced Metals (5016 JP) IPO: The Bull Case, JX Advanced Metals (5016 JP) IPO: The Bear Case, JX Advanced Metals (5016 JP) IPO: Price Range Is Fair.
• Since the price range was announced, the peers have modestly re-rated. My SoTP valuation of JPY859 is slightly above the IPO price, suggesting the price is fair.

• JX Advanced Metals raised 438.6 billion yen (US$3 billion) on its IPO offering after pricing the IPO at 820 yen per share, valuing the company at 761.3 billion yen. 
• Our base case valuation of JX Advanced Metals is price per share of 863 yen, based on P/E of 9.9x using our estimated net profit of 81 billion yen (2026E).
• Therefore, we would sell into strength if the share price of JX Advanced Metals rises to the 863 yen to 1,044 yen per share.

• On 17 March, Spartan Resources (SPR AU) entered a binding scheme with Ramelius Resources (RMS AU). Spartan shareholders will receive A$0.25 cash + 0.6957 RMS shares per SPR share. 
• The scheme vote is low risk as Ramelius has secured irrevocable commitments from Tembo Capital, 1832 Asset Management, and Fourth Sail Capital (18.89% of outstanding shares). 
• The offer is attractive compared to peer multiples, precedent transactions and historical trading ranges. The scheme meeting is targeted for mid-July. 

• Coromandel International (CRIN IN),a key Murugappa Group company, acquired a 53% controlling stake in NACL Industries for INR 820Crs on March 12, 2025 at INR 76.70 per share.
• NACL Industries is a Hyderabad-based agrochemical firm with manufacturing units, a diverse product portfolio, and technical export capabilities, including a presence in contract manufacturing.
• With this merger at decent valuation, Murugappa group(which is known for efficient capital allocation) certainly make it more efficient and value accretive for their business. 

• Ramelius and Spartan announce a transformational combination deal
• Deal includes 25 cents cash kicker and 0.6957 Ramelius shares for Spartan shareholders
• Top three Spartan shareholders, excluding Ramelius, support deal with combined 19% ownership stake

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• Nanshan Aluminium International Holdings (NAI HK)  is looking to raise up to US$358m in its upcoming Hong Kong IPO.
• NA is a leading high-quality alumina manufacturer in Southeast Asia.  The firm sources bauxite domestically in Indonesia and utilizes low-temperature Bayer process.
• We have looked at the company’s past performance in our earlier notes. In this note, we discuss latest industry dynamics, conduct a quick peer comparison and discuss the company’s valuation.

• JSE indices will be rebalanced in the closing auction on Thursday. JSE equity derivatives close out at midday as well – a reminder to get those rolls in.
• AMS will enter the Top 40 with EXX falling out. AHR, BOX & SRI will enter the ALSI index, with RBO falling out.
• The ALSI is made up of constituents in the small, mid and large cap indices and constituents are reviewed semi-annually in March and September.

• Fujiyama Power Systems Ltd (1742651D IN) (FPSL) is planning to raise about US$138m through its upcoming India IPO. The lead bookrunners for the deal are Motilal, SBI.
• FPSL was established in 1996. The company specializes in solar panel and inverter manufacturing, covering on-grid, hybrid, and off-grid solutions, along with lead acid and lithium-ion battery production. 
• As per CARE Report, it was the 1st Indian company to develop an SMT-based inverter with a single card in 2000. 

• In our 2/25/25 Compass, we discussed our expectation for near-term downside as the S&P 500 and Nasdaq 100 (QQQ) displayed several bearish short-term developments. 
• The  downward pressure has brought the S&P to the bottom of our range at 5600-5670.
• Friday’s and Monday’s tape action alleviated oversold conditions as strong demand was a clear positive. We need the 5500-5600 level to hold in order to remain constructive.

• Asia’s base oils prices extend rise versus feedstock/competing fuel prices.
• Increasingly firm margins coincide with closed arbitrage to more distant outlets like Americas, and less feasible arbitrage to logistically-closer markets like India and Middle East.
• Firm margins and closed arbitrage point to tight supply.