Daily Brief Energy/Materials: POSCO Holdings, Cemex Holdings Philippines, APERAM SA, Medco Energi, Panoro Energy ASA, Mammoth Energy Services, Gevo and more

• Despite feedback from ETF managers, KRX is moving forward with the simultaneous listing of 12 ETFs tracking the Value-Up Index on November 4th.
• Government-Backed organizations are launching a 200 billion KRW Value-Up Fund for the Value-Up Index stocks, targeting an AUM boost to over 1 trillion KRW by year-end.
• For new additions in the December rebalancing, the safest bets are POSCO Holdings, JB Financial Group, and HK inno.N.

• Back on the 25th April 2024, a Dacon/DMCI Holdings (DMC PM)-led consortium entered into a SPA to acquire 89.86% in CEXMEX (CHP PM) from Cemex SAB de CV (CEMEXCPO MM).
• The completion of the sale triggered a mandatory tender offer for the remaining 10.14% of shares out. The Offer Price is ₱1.42/share (before considerable fees), a 8% discount to undisturbed.
• The Offer Period spans October 23 to November 21. There’s the possibility of a technical bump. Don’t expect a follow-on delisting Offer. The Bidders’ intention is to maintain CEMEX’s listing.

• To derive our target price of EUR 33.93, indicating an upside potential of 29.01%, we incorporated 2 different valuation methods: DCF valuation, resulting in a price of EUR 32.49 and Peer Group valuation, resulting in a price of EUR 39.68.
• The weights used for the 2 valuation approaches were 80% for DCF and 20% for Peer Group.
• To perform DCF valuation, we used a 2-stage calculation approach, consisting of the growth period (~20%) and terminal value (~80%). Using the DCF we came up with a price target of EUR 32.49 (+23.55% vs current price). T

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Green Energy
• CIFI Holdings
• Medco Energi

• 3Q24 Gabon gross production was 27,465 bbl/d.
• The DHIBM-7H well at Hibiscus Northern Flank is now on stream taking overall current gross production in Gabon close to 40 mbbl/d.
• The current rate is very high when considering that three wells (out of eight in the Hibiscus-Ruche area) are still shut-in.

• Mammoth Energy has reached a settlement agreement with PREPA, allowing them to focus on their core business operations
• The settlement will provide Mammoth with approximately $188 million in total settlement proceeds, improving their financial flexibility and supporting growth initiatives
• This agreement will help boost Mammoth’s financial position and could lead to future growth opportunities for the company

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.

• Notably, NZ-1 is the first large-scale alcohol-to-jet (ATJ) project to receive a DOE loan commitment. NZ-1 is a 60 million gallon per year sustainable aviation fuel (SAF) project.
• The NZ-1 project aims to produce SAF with potential for net-zero or even negative carbon intensify (CI) impact on airlines through a highly electrified and optimized production process, onsite wind power, climate-smart agricultural practices from regional corn growers, and potential carbon capture and sequestration.
• According to Gevo, NZ-1 will have the lowest production cost particularly when measured as the cost of carbon abatement.