Daily Brief Energy/Materials: Newmont , Crude Palm Oil Active Contract, Nippon Sanso Holdings, Callon Petroleum , Nanoco Group PLC and more

• With over 80% of the review period complete, there could be 26 adds/deletes across the S&P/ASX family of indices in March.
• The largest flow will be on Newmont (NEM AU) due to the potential S&P/ASX 20 Index deletion and a large decrease in the number of shares held in Australia.
• There will be 1.2-38 days of ADV to buy in the inclusions while the impact on the deletions will range between 1-21 days of ADV.

• Conditions in the Energy Industry Continue To Worsen The quarterly Dallas Fed Energy Survey highlighted that business uncertainty is worsening again.
• It seems like the past two quarterly reports were only outliers – the trend remains worsening business conditions for gas and oil companies.
• The conflict in the Red Sea started to impact shipping rates. But as we wrote over the past couple of weeks, it is not substantially higher

• Wouldn’t the shareholders of Mitsubishi Chemical want to either TOB for the growth of the subsidiary or invest the cash from the sale of shares in a value-generating business?
• It’s difficult to exclude the influence of the parent company in business decisions that impact significantly on the parent’s earnings and shareholding. Is continued parent-subsidiary listing desirable for subsidiary’s shareholders?
• The management of Nippon Sanso wants to continue the parent-subsidiary listing, but their small shareholding may make it difficult to manage the company from the same perspective as the shareholders.

• This is a special, one-time report Callon Petroleum, currently exploring a sale, which presents a nuanced investment opportunity with several critical factors to consider.
• The company has demonstrated consistent financial performance, notably its 14th consecutive quarter of adjusted free cash flow generation, which is being strategically used for debt reduction and share repurchases.
• This fiscal prudence, coupled with a clear focus on cost reduction and operational efficiency, positions Callon well in the competitive energy sector.

Following a successful proof of concept, Nanoco recently announced a new joint development agreement (JDA) with its existing European customer, now confirmed as STMicroelectronics. This milestone further validates Nanoco’s smart materials capabilities, building on the first commercial orders for first-generation materials shipped in late 2023 and the expanded partnership with its Asian customer. With an improved financial position, Nanoco has been able to proactively invest in accelerating the development of new materials and services. The non-licence fee income and additional test material sales from the JDA help de-risk our FY24 revenue forecasts. Securing collaborations like this JDA will be key for Nanoco to continue scaling commercial production and delivering on management’s goal of becoming self-financing in CY25.