In today’s briefing:
- Overlooked by the Market: A Compelling Long Short Opportunity in Newly-Listed ETF Rebal in Korea
- Weekly Wrap – 25 Aug 2023
- Devon Energy Corporation: Surging Oil Volumes
- Alkane Resources – The Bodas continue to grow
- TM: Initial Concentrate Recovery Exceeds Expectations
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Overlooked by the Market: A Compelling Long Short Opportunity in Newly-Listed ETF Rebal in Korea
- In the inaugural constituent selection, FnGuide revealed a noteworthy pattern. Given the smaller market capitalization of the electrolyte suppliers, FnGuide has included only the largest among them in this ETF.
- SoulBrain, categorized by FnGuide as an electrolyte supplier like Chunbo, has significantly outperformed Chunbo. As a result, there is a considerable likelihood that SoulBrain will replace Chunbo in December.
- The price impact from ETF rebalancing trading has disappeared substantially in Korea. We should focus on the first rebalancing of newly listed ETFs that haven’t yet established a learning effect.
Weekly Wrap – 25 Aug 2023
Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.
In this Insight:
and more…
Devon Energy Corporation: Surging Oil Volumes
- Devon Energy Corporation delivered a mixed result in the quarter, with revenues above expectations, but the company failed to surpass the analyst consensus regarding earnings.
- In terms of production, the company managed to increase oil volumes by 8% year over year this past quarter.
- By averaging 323,000 barrels per day in the quarter, this outcome beat midpoint forecast estimates and created a new all-time high oil production high for the corporation.
Alkane Resources – The Bodas continue to grow
Alkane Resource’s FY23 financial results were broadly in line with our forecasts, with profit after tax totalling A$42.5m (compared to our forecast of A$44.0m) and EPS of 7.10c (cf 7.38c). Cash flows from operations exceeded our forecasts (A$95.5m cf A$75.6m) as a result of an increase in deferred tax liabilities, albeit this was balanced by higher exploration capex of A$58.1m to result in a net cash flow of A$4.1m (cf A$2.4m). Following FY23 production of 70,253oz at an all-in sustaining cost (AISC) of A$1,602/oz, FY24 guidance for Tomingley is 60,000–65,000oz at an AISC of A$1,750–2,100/oz. Our forecasts remain largely unchanged in the aftermath of Alkane’s FY23 results. We maintain our valuation.
TM: Initial Concentrate Recovery Exceeds Expectations
- Trigon announced initial production results from its first copper concentrate.
- The newly commissioned mill produced a concentrate grade of 33.5% copper (well above the 20% expected) at 79.5% recoveries.
- Underground Fleet On August 21st, TM announced its $8.9M order to purchase underground mining equipment from Epiroc.