Smartkarma Daily Briefs

• Welcome back to our weekly editorial on everything commodity and energy-related!This week is all about China as the Politburo and PBoC have announced new (undefined) stimulus measures aimed at simultaneously countering tariffs from the Trump administration in 2025 and bolstering the economy, regaining confidence as China battles structural issues.
• This naturally raises the question of how this will impact commodities.
• As the world’s largest importer of commodities by a significant margin, China’s injection of capital into its economy could provide a substantial boost.

• If ORG cannot obtain the SAFE approval by the end of December, this indicates something is wrong in the process. Then the success rate of this transaction is greatly reduced.
• Acquiring CPMC is in line with Baosteel’s strategic goals and CPMC is important to Baosteel.So, the possibility of state-owned capital to agree to withdraw completely from CPMC is not high.
• It’s unclear whether Zhang Wei will continue to side with ORG, or whether he still want to exit. This actually depends on the renegotiations between Baosteel/China Foods/COFCO and Zhang Wei.

• In this insight, we review the major rights offerings/capital raises that were announced in Korea in 2024.
• In general, the major rights offerings/capital raises tend to result in lower share prices one month, three months, and over a longer time frame. 
• There are some exceptions. Peptron and ABL Bio experienced higher share prices even after their capital raise announcements, especially after a longer time frame (3 months or more).

• Gold (GOLD COMDTY) rebounded higher this week, after 2 weeks down, it is already getting  overbought according to our WEEKLY model, the remaining upside appears limited.
• If you are actively trading Gold, in this insight we will analyze the current Gold patterns and show you why it may be too late to enter the trade here.
• A better opportunity to enter LONG may come after another 1 or 2 weeks, when the market should pull back again.

• Squeezed supply owing to rains lifts prices in domestic market
• Exports down 23.4% MoM at US$79.5 million in Sept
• Michelin seeks proactive policies to up rubber production 

After the bell on 5 December, Wheaton Precious Metals (WPM) announced that it had entered into a definitive Precious Metals Purchase Agreement (PMPA, or stream) with Allied Gold regarding the Kurmuk gold project in Ethiopia. Under the terms of the stream, WPM will pay US$175m to acquire 6.7% (subject to conditions – see below) of the payable gold produced from Kurmuk at 15% of the spot price of gold until 220koz has been delivered, at which point, the percentage will drop to 4.8%.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Continuum Green, Sunny Optical
• Wall Street has been expressing confusion over the Fed’s potential decision (according to minutes of the November meeting) to lower the rate on its overnight reverse repo facility (RRP) by 5 bps, possibly as early as next week.
• This adjustment comes alongside expectations of a quarter-point cut in the Fed’s main policy benchmark. 

• Global Atomic Corporation (GLO) operates in the uranium and zinc industries, with a focus on the Dasa uranium mine in Niger and a profitable zinc recycling business in Türkiye.
• GLO is well-positioned for growth due to the increasing demand for uranium driven by the expansion of nuclear energy, especially in emerging markets.
• Analysts suggest that GLO could potentially see a 5x increase in value at current uranium prices, with even greater potential if uranium prices continue to rise, making it a compelling investment opportunity in the commodities sector.

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.

• Comparing helium projects presents significant challenges due to variations in risk profiles, resource sizes, stages of maturity, operating environments, and potential for commercial viability.
• For example, it may be more advantageous to invest in a smaller resource base situated near established infrastructure and customers within a favorable operational setting, rather than a much larger exploration asset that carries a minimal chance of successful economic development, even if exploration yields positive results.
• The purpose of this note is to compare the potential commerciality of the projects held by various publicly listed helium juniors.

• The WTR Sustainable Index was down 2.0% W/W versus the S&P 500 Index (up 1.0%), the Russell 2000 Index (down 1.1%), and the Nasdaq Index (up 3.3%).
• Energy Technology (13.8% of the index) was down 3.3%, while Industrial Climate and Ag Technology (48.3% of the index) was down 0.8%, ClimateTech Mining was down 4.1%, and Advanced Transportation Solutions (20.7% of index) was down 1.9%.
• Top 10 Performers: LEV, GRB, TGEN, HTOO, NGPHF, MVST, AZRE, EGT, MXL, HYSR