Daily Brief Energy/Materials: Kama Holdings, Crude Oil, Gold, China Oilfield Services H, Chariot Limited, Santana Minerals, Ballymore Resources Ltd, Nanoco Group PLC, Amplify Energy and more

• Kama Holdings (KHL IN)is available at 80% discount to its NAV.
• Kama Holdings (KHL IN) is Holding company of SRF Ltd (SRF IN), which has tailwind across segments.
• If the discount were to narrow from 81% to 56%, the price of Kama Holdings (KHL IN) could potentially double, assuming all other factors remain constant.

• US oil rig count falls to 485 as of the week ending on 21/June, its lowest since January 2022.
• US oil and gas rig count is falling as producers prioritize shareholder returns over increasing output.
• Rising labour and equipment costs along with macroeconomic uncertainties further discourage producers from adding rigs.  

• Fund managers recently reduced their broad commodity position as well as energy position, compared to last month, according to the latest BofA survey.
• Compared to the long-term z-score, fund managers are now heavily under-positioned in energy but close to neutral positioned in broad commodities.
• In a recent note, Goldman Sachs explained their views about commodities if inflation would re-accelerate again – or in detail beat the market estimates and lead to an inflation upside surprise.

• The largest player in Asia in the offshore oil services sector with limited competition
• Business dynamics trending up as offshore exploration is the focus of many energy majors
• Recent sell-off due to concerns over Aramco drilling delays provide a good entry point

• Chariot has signed Heads of Terms with Vivo Energy for the future offtake from the Loukos onshore licence where natural gas has been encountered at Dartois.
• Up to 3 mmcf/d would be initially sold to the CNG midstream business under a long-term gas sales agreement.
• Vivo intends to design, fund, construct and operate a CNG plant and virtual distribution network to transport natural gas from a number of sources to existing and new industrial customers in Morocco.

• RaaS Research Group has published a report on Santana Minerals (ASX:SMI) ahead of the company presenting at the Sydney Mining Club on July 4.
• SMI is developing the Bendigo-Ophir gold project in the Otago region of New Zealand.
• The project has a combined mineral resource estimate of 37Mt at 2.1gpt for 2.5Moz of gold using a cut-off grade of 0.5gpt.

• RaaS Research Group has published a report on Ballymore Resources ahead of the company presenting at the Sydney Mining Club on July 4.
• BMR is an exploration company with a portfolio of projects across northern Queensland which range from early-stage target generation and discovery through to resource delineation.
• BMR’s most advanced asset is the Dittmer project located ~20km west of Proserpine in which the company has identified probable extensions to the previously mined orebody at depth and down plunge.

With the successful Samsung litigation now in the rear-view mirror, Nanoco’s focus will be fully on building the business as a developer, manufacturer and licensor of nanomaterials. With its extensive expertise in quantum dots, validated IP and high-volume manufacturing facilities backed up by a strong balance sheet, we believe that the business has a robust platform for growth. Partnerships with STMicroelectronics and an Asian chemicals supplier position Nanoco strongly to participate in the anticipated adoption of infrared sensors in handsets and a wide range of other devices. If all goes to plan, there could be an inflection in revenues from late FY25 or FY26. We believe the FY24e EV of £15m significantly overlooks Nanoco’s commercial potential and the value of its validated IP.

• Amplify Energy has been praised for its quality asset base in recent write-ups
• Despite a rise in stock price, enterprise value has only seen modest increase due to debt repayment efforts and improved reserves
• Author believes Amplify Energy is currently undervalued with potential catalysts in the near future; will focus on value of Beta and management’s planned actions.

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.