Daily Brief Australia: Lynas Corp Ltd, BHP Group Ltd, Cleanspace Holdings Ltd, EQ Resources, Macquarie Group, RPMGlobal Holdings Limited and more

• Lynas Corp Ltd (LYC AU)‘s stock price has more than doubled in the last few months as equity markets rally, the rare earth boom continues, and export restrictions are imposed.
• The significant increase in market cap and free float market cap should result in the stock being added to a global index in November.
• There will be positioning for the inclusion (and that partly explains the recent run-up in the stock). But with export controls continuing, there could be further upside.

• Context: Friday’s sell-off occurred after the Australian market closed, but several ASX-listed companies were swept up in the decline through dual listings or U.S.-traded ADRs.
• This Insight looks at the impact on prominent S&P/ASX 200 constituents — including BHP, CSL, and major banks. While some companies showed limited movement, others, such as BHP, experienced sharper declines.
• Why Read: Understand where the Australian market might be headed when trading resumes after the weekend.

• Innovative Niche Player: CleanSpace is a designer and manufacturer of advanced Powered Air Purifying Respirators (PAPRs), distinguished by its patented, compact, and ergonomic all-in-one design that eliminates the need for cumbersome belt-and-hose units common among competitors.
• Financial Turnaround in Progress: The company is demonstrating a significant operational recovery, with strong revenue growth of 26% in FY25, expanding gross margins to nearly 75%, and achieving positive EBITDA and operating cash flow in the second half of FY25. It is on a trajectory to reach sustained breakeven.
• Strategic Growth Focus: Having pivoted from a pandemic-driven healthcare focus back to its core industrial market, CleanSpace is pursuing growth through geographic expansion in the US, Europe, and Asia, alongside new product launches and growing its recurring revenue from consumables, which now account for 47% of sales.

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• EQ Resources is repositioning itself as a key Western tungsten producer by restarting and expanding its flagship Mt Carbine mine in Queensland, Australia, aiming to capitalize on a tightening global market.
• The company is currently in a high-growth, high-spend phase, evidenced by significant revenue increases from a low base, alongside substantial net losses and negative operating cash flows as it invests in ramping up production.
• Favorable market dynamics, including strong demand from the aerospace, defense, and electronics sectors and China’s dominance and export restrictions on tungsten, provide a strong tailwind for EQR’s strategy to become a reliable ex-China supplier.

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• Context: The ANZ (ANZ AU) vs. Macquarie (MQG AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity. 
• Highlights: Long Macquarie, short ANZ targets a 6% return. Friday’s U.S. sell-off and today’s ANZ’s strategy update could drive early trading volatility in the pair.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• RPMGlobal Holdings Limited (RUL AU), a mining software technology provider, has entered into a Scheme with Caterpillar Inc (CAT US).
• Caterpillar, which currently holds no shares in RPMGlobal, is offering A$5/share (the same as in the NBIO), a 32.8% premium to undisturbed. Terms have not been declared final.
• FIRB and ACCC approvals are conditions. FIRB won’t be an issue. The key ACCC question is whether the combo has significant direct market overlap that triggers substantial competition concerns.