Daily Brief Energy/Materials: SK Innovation, Copper, Crude Oil, CVR Partners, Platinum, Vedanta Resources and more

• SK Innovation (096770 KS) and SK E&S plan to hold a board meeting on 17 July to discuss the potential merger between the two companies.
• If this merger is successful, it would create the eighth largest company in Korea with a combined assets of 106 trillion won (US$77 billion). 
• Although the merger ratio is not yet available, we believe that this potential merger could potentially benefit SK E&S and SK Inc but could be negative on SK Innovation.

• BHP and Lundin rumored to be considering a joint bid for Filo Mining in the Vicuna district, an emerging copper super district in Chile and Argentina.
• Lundin Mining owns the most advanced project, Jose Maria, in the region which is permitted and fid ready.
• Argentina now has a supportive business regime, making it an optimal time for development in the region. Lundin Group retains a 33% stake in Filo while BHP owns a 6% stake.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• US oil and gas rig count fell by 1 to 584 for the week ending 12/Jul, after rising by 4 the previous week. 
• US oil rig count fell by 1 to 478, indicating 59 fewer oil rigs as compared to the same week last year. It is at its lowest since December 2021.
• Despite a decline in the US oil rig count, US crude oil production matched the all-time high production of 13.3m bpd for the week ending 5/Jul, according to the EIA.

• UAN is undervalued due to market volatility and has potential for future share price increases
• The company’s strategic location and cost advantages in production and distribution make it a strong player in the nitrogen fertilizer market
• UAN has a normalized FCF yield of 17% and offers a significant increase in share price, making it an attractive investment opportunity

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.

• It Got Quiet around Platinum and Palladium While sales of EVs around the world continue to surge, it kind of became obvious that BEVs or mild hybrids are the choice for many consumers going forward.
• Those systems offer people the option to drive fully electric within the city and use the combustion system for further destinations.
• If the demand for BEVs continues to surge, two metals could be supported by that fact which builds the investment case for platinum and palladium.

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 Ports & Special Economic Zone
• Vedanta Resources