In today’s briefing:
- Peak Rare Earths (PEK AU): A Done Deal at an Attractive Spread
- Dalrymple Bay Infra Placement: Cleanup by Brooksfield; Valuation Is Fair
- DYLLF: Since the FID was deferred in April
- Ricegrowers Ltd – Closing the multiple gap
- Long Stanmore (SMR AU) Vs. Short Champion Iron (CIA AU): Statistical Arbitrage in Steel & Coal
- Verbrec Ltd – In good shape
Peak Rare Earths (PEK AU): A Done Deal at an Attractive Spread
- On 5 September, Shenge increased its minimum scheme consideration for Peak Rare Earths (PEK AU) to A$0.443, a 23% premium to the previous minimum cash consideration.
- The IE considers the offer fair and reasonable. The key conditions are approval from the Fair Competition Commission of Tanzania and shareholder approval (vote scheduled for 16 September).
- This is a done deal, as Tanzania approval and the vote are low-risk. At the last close and for a 30 September payment, the gross/annualised spread is 5.5%/147%.
Dalrymple Bay Infra Placement: Cleanup by Brooksfield; Valuation Is Fair
- Dalrymple Bay Infrastructure (DBI AT) is looking to raise around US$347m from a secondary placement.
- The deal is a large one to digest, representing 101.8 days of the stock’s three month ADV, despite being 24.4% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
DYLLF: Since the FID was deferred in April
- At the Tumas Project, early-work infrastructure, detailed engineering plan, site preparation and scheduling work continues.
- Tumas is being positioned for a rapid transition to the construction of a processing plant and the initiation of mining operations when uranium market conditions warrant proceeding.
- At Mulga Rock a mini-pilot plant test leads to processing design breakthroughs for an updated MRP process design flowsheet, which will be incorporated into a revised DFS .
Ricegrowers Ltd – Closing the multiple gap
- Following the August 2025 reporting season, we look at key changes to consensus estimates, share price movements and outlook commentary relevant to Ricegrowers Limited, trading as SunRice (ASX:SGLLV).
- Across our selected peer group there were two notable downgrades (SHV and TWE) and two notable upgrades (CBO and GNC).
- The RaaS selected peer average has outperformed the ASX200 over the past three months, increasing 11% against +3.3%.
Long Stanmore (SMR AU) Vs. Short Champion Iron (CIA AU): Statistical Arbitrage in Steel & Coal
- Context: The Stanmore Coal (SMR AU) vs. Champion Iron (CIA AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Stanmore Coal (SMR AU) and short Champion Iron (CIA AU) targets a 9% return.
- 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.
Verbrec Ltd – In good shape
- 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 has released its FY25 full-year result delivering revenue of $85.6m (in-line with RaaS’s forecast of $85.4m) and EBITDA (underlying) of $8.8m (11.4% ahead of RaaS’s forecast).
- The EBITDA upside surprise was driven by stronger-than-expected gross margins in both the Engineering and Training businesses, and ongoing cost discipline.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
