Daily Brief Energy/Materials: Bellevue Gold, Mincor Resources NL, PT Trimegah Bangun Persada Tbk (Harita Nickel), Vedanta Resources, Vulcan Materials Co, Fmc Corp, Cf Industries Holdings, Westrock Co and more

• There could be an addition to the S&P/ASX 100 Index and S&P/ASX 200 (AS51 INDEX) in April following OZ Minerals Ltd (OZL AU)‘s acquisition by BHP Group Ltd (BHP AU).
• Then there could be another change for the S&P/ASX 200 (AS51 INDEX) at the regular rebalance in June.
• Passive trackers will need to trade between 4.5-18 days of ADV on the potential adds/ deletes. Short interest has started to increase on a couple of stocks.

• Wyloo has launched an unconditional off-market takeover bid for Mincor Resources NL (MCR AU) at A$1.40 per share, a 34.6% premium to the undisturbed price. The offer opens 5 April.
• In certain aspects the offer is attractive. The offer values Mincor at a premium to peer and precedent transaction EV/Resource and EV/Reserve multiples.
• However, the offer is at a discount to recent share prices and price targets. Rival bidders (BHP Group Ltd (BHP AU) or IGO Ltd (IGO AU)) could also emerge. 

• Nickel explorer Mincor Resources NL (MCR AU)‘s board urges shareholders to take no action in response to the on-market takeover from Andrew Forrest’s backed Wyloo Metals.
• Wyloo is offering A$1.40/share. The offer period commences on the 5 April and runs until the 8 May – unless extended. However, Wyloo’s broker is already standing in the market. 
• Wyloo, together with associates, control 19.87% of the voting power in Mincor. Currently trading 5.7% through terms

• PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ), an Indonesian nickel play, has launched an IDX IPO to raise US$1 billion. Book building ends on 24 March.
• We previously discussed the IPO in Harita Nickel IPO: The Bull Case and Harita Nickel IPO: The Bear Case.  
• In this note, we discuss valuation. Our analysis suggests that Harita is fairly valued at the IPO IPO price range of IDR1,220-1,250 per share. We would participate in the IPO.

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.

• Sino-Ocean Service
• Vedanta Resources

• Vulcan Materials Company is a well-known producer, distributor, and seller of construction materials.
• The company did continue its reliable cash generation and careful capital deployment and its free cash flow conversion has been above 90% on average over the last four years.
• Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.

• FMC Corporation is a major agricultural sciences player in the U.S.
• The company has been witnessing high volume growth and its aggressive pricing has helped build a strong financial position.
• Agricultural markets remain strong with high commodity prices, expanding cropland, and optimistic grower sentiment.

• CF Industries is one of the largest producers of nitrogen products across the globe.
• CF’s overall performance was fairly good against the backdrop of a continually tight global supply-demand balance for nitrogen.
• Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.

• WestRock Company is one of the largest providers of fiber-based paper and packaging solutions across the globe.
• The company has been on the receiving end of strong economic volatility and this has affected its financial performance in 2022.
• Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.