In today’s briefing:
- Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?
- [IO Technicals Weekly 2024/42] Iron Ore Price Reversal Continues
- EDG: Gaps Begin to be Filled & Drilling Accelerates with 2nd Rig
- Actinver Research – GCC 3Q24: The EBITDA Margin Expansion Continues (Quick View)
- Fenix Resources (FEX AU): Small Cap Iron Ore Miner With Great Upside
- Japan Pure Chemical (4973 JP): 1H FY03/25 flash update
Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?
- According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.
- We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.
- All in all, this M&A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.
[IO Technicals Weekly 2024/42] Iron Ore Price Reversal Continues
- SGX IO Futures fell for the second consecutive week, closing USD 4.15/ton lower at USD 101.70/ton on 18/Oct, with a trading range of USD 9.75/ton.
- Short-Term moving averages signaled a bearish reversal, with a downward 9-day moving average and failure to break above key pivot points.
- Heavy selling pressure and expanded China stimulus measures disappointed market expectations, signaling continued bearish trends with a potential test of USD 97.5/ton support.
EDG: Gaps Begin to be Filled & Drilling Accelerates with 2nd Rig
- What you need to know: • EDG announced assay results for four drill holes as part of its 10,000m 2024 drill program; it has completed 22 holes (6,100m) to date.
- • Today’s results confirmed strong mineralization in large untested gaps between Eagle & Imperial, also confirming mineralization at depth.
- • A 2nd drill rig has been added to accelerate the drill program – this rig will test the near-surface portion of the Eagle Zone.
Actinver Research – GCC 3Q24: The EBITDA Margin Expansion Continues (Quick View)
- GCC posted positive results, above our estimates at the EBITDA level.
- Although revenues decreased by 4% YoY, higher prices in cement and ready-mix and cost contention were the main drivers behind a 2.6 pp EBITDA margin expansion, reaching a 40.7% level.
- Revenues of US$398 M (-4% YoY) were driven by a 17% contraction in Mexico and a +1% YoY gain in revenues in EE.UU.
Fenix Resources (FEX AU): Small Cap Iron Ore Miner With Great Upside
- Fenix Resources (FEX AU) is a small-cap iron ore miner/logistics provider with massive upside based on an increasing sales profile from 1.3 to 4 million tons over FY25/26.
- The company is also positioning itself as a logistics provider with the potential to transport 10 million tons of material through the Geraldton Port with its infrastructure in place.
- Trading at 5.4x FY25e PE with a 1.8 EV-EBITDA, >38% of the market cap in cash, this is a stock worth exploring.
Japan Pure Chemical (4973 JP): 1H FY03/25 flash update
- Revenue reached JPY3.1bn, an 8.3% YoY increase, achieving 48.7% of the full-year forecast, with strong AI demand.
- Operating profit increased by 173.2% YoY to JPY149mn, driven by robust sales in plating chemicals for AI applications.
- Net income forecast revised to JPY1.6bn due to gains from the sale of investment securities announced in August 2024.
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