Daily Brief Energy/Materials: Adaro Energy, Endurance Gold, Royal Dutch Shell Plc (Adr), Vedanta Resources and more

• Yesterday, Indonesia’s second largest coal mining business Adaro Energy (ADRO IJ) announced a buyback. This follows another buyback which ended in December 2022.
• The Sep21-Dec22 buyback bought back 1bn shares, but did not spend all the money allocated to the buyback. This new one might buy back a similar quantity.
• Looking at Real World Float is the right frame of reference. And the stock was at a recent low vs a Peer Basket. 

• EDG is one of the highest grade at-surface discoveries in Canada with grade open along strike and to depth
• Simplistic gold camp in the making – Idyllic access to infrastructure, within 10km of another permitted operation, low permitting risk in comparison to the Golden Triangle
• Resource has potential to be several million ounces – Orogenic gold deposit confirmed over a 1.5km trend and gold anomalies spanning across the property Endurance Gold’s flagship Reliance Gold Project is the primary driver of our valuation for the Company as it is showing early-yet-strong signs of becoming a multi-million-ounce high-grade gold deposit with economical ounces just kilometers from another permitted gold operation.

• Shell produced a mixed set of results in the quarter, meeting the revenue expectations of Wall Street but missing out on earnings.
• The company’s working capital situation has improved significantly and working capital was a substantial cash inflow in the quarter.
• The improved cash flow position in the quarter enabled Shell to enhance its distributors to shareholders.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Vedanta Resources