In today’s briefing:
- Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (8 Dec)
- Iron Ore 65-62 Spread Widens, Despite The Commencement of Simandou Shipments
- Verbrec RaaS Interview Transcript 8 December 2025
- Verbrec Ltd – Reshaped for strong growth
Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (8 Dec)
- Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
- Highlights: Currently nine pair trade opportunities across four markets and six sectors persist.
- Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.
Iron Ore 65-62 Spread Widens, Despite The Commencement of Simandou Shipments
- There were further updates on the Simandou iron ore mine, which commenced operations last week, igniting bearish sentiment and taking iron ore prices down 3% WoW to 103 USD/ton.
- Demand, though, for higher-grade material remains strong, resulting in a widening spread between 65 and 62 Fe to almost 16 USD/ton (from 12-13 USD/ton a week ago).
- We favor Fenix Resources (FEX AU) for its high growth profile and potential to increase production from 1.5 million tons to around 10 million tons.
Verbrec RaaS Interview Transcript 8 December 2025
- Interview by RaaS Senior Analyst Graeme Carson with Verbrec CEO Mark Read following the Alliance Automation acquisition.
Verbrec Ltd – Reshaped for strong growth
- Verbrec Limited (ASX: VBC) provides engineering, asset management, operations and maintenance, and training to the energy, mining, infrastructure and defence industries in Australia, New Zealand, PNG and the Pacific Islands.
- The company announced it has acquired Alliance Automation (Alliance), increasing the group’s automation, control, digital industry, machine learning and cyber security capability and expanding its client base.
- The consideration of $5.5m, on a trailing FY25 EBITDA multiple of 5.0x and an adjusted EBITDA multiple of 2.7x, appear to be very favourable and highly accretive acquisition terms, particularly given the FY25 revenue base of the business was $62.5m.
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