In today’s briefing:
- BHP Group: Initiation of Coverage- Inside the $4.4 Billion Profit Engine Fueling the Next Commodity Supercycle!
- EM Spreads – Weekly News & Views
- Markets in Motion: Turnover Gains Spark Sharper Spreads
- Fortescue Metals Group: Initiation of Coverage- Hydrogen Ambitions
- Iron Ore to 110 USD/Ton: Positive TSF Data and Mill Spread Momentum Builds
- Evolution Mining: Initiation of Coverage- Production Breakthroughs & Smart Spending Signal Strong Upside!
- Research Comment english – Almonty Industries Inc. – 21.07.2025
- 29Metals Ltd – Australian Broker Call *Extra* Edition – Jul 22, 2025
- Asia base oils demand outlook: Week of 21 July
BHP Group: Initiation of Coverage- Inside the $4.4 Billion Profit Engine Fueling the Next Commodity Supercycle!
- BHP Group Limited’s performance in the first half of the 2025 financial year illustrates a mix of strategic advancements and operational challenges in its diverse portfolio.
- The first half results showcase several strengths and areas for further focus as the company navigates a complex global mining landscape.
- A key positive from BHP’s recent performance is the record output in its Western Australian iron ore operations, which achieved the lowest production costs globally.
EM Spreads – Weekly News & Views
- U.S. Tariff Escalation: Credit Implications for Brazilian Companies in Our Coverage / MercadoLibre Achieves Full Investment Grade Status with S&P Upgrade / Pemex Eyes US$8bn from Mixed Contracts
- Initiating Coverage on Gerdau: IG Credit with US Exposure, Limited Spread Upside / Fitch Affirms Gerdau at BBB with Stable Outlook on Strong Fundamentals
- Vista 2Q25: Results Reinforce Overweight, But Cash Burn and Liquidity Weaken Buffer / US Reinforces Argentina’s Appeal in YPF Expropriation Case
Markets in Motion: Turnover Gains Spark Sharper Spreads
- Sanli Environmental and mDR saw significant increases in average daily trading turnover, with returns of 98.9% and 137.5% respectively.
- Q&M Dental led net institutional inflows with S$7.68 million, alongside increased CEO ownership and active share buybacks.
- OKP Holdings secured a S$258 million contract, boosting its order book to S$736 million, with visibility to 2031.
Fortescue Metals Group: Initiation of Coverage- Hydrogen Ambitions
- Fortescue Metals Group Limited’s latest earnings report reveals a mix of strategic growth initiatives, operational achievements, and emerging challenges.
- The company has reported its highest-ever first-half shipments of 97.1 million tonnes, underpinning a strong operational performance.
- A significant improvement in safety metrics, namely a 44% improvement in Total Recordable Injury Frequency Rate (TRIFR), further emphasizes Fortescue’s commitment to maintaining high safety standards on-site.
Iron Ore to 110 USD/Ton: Positive TSF Data and Mill Spread Momentum Builds
- We reiterate positive momentum on iron ore pricing as mill spreads pass 100 RMB/ton and positive lending data from China increases optimism. Iron ore prices are now 103 USD/ton.
- Read: Iron Ore: Small Bounce From 96 to 100 USD/Ton As China Mill Margins Turn Positive and Iron Ore: Mill Spreads Continue to Improve, Bullish Ore To 110 USD/Ton.
- We like Fenix Resources (FEX AU), which is about to commission the Beebyn-W11 mine and triple its production to 4.1 million tons (vs 1.4 million tons two quarters ago).
Evolution Mining: Initiation of Coverage- Production Breakthroughs & Smart Spending Signal Strong Upside!
- Evolution Mining reported strong performance for the June 2025 quarter, marking a positive end to the fiscal year.
- The company produced 182,000 ounces of gold and 19,000 tonnes of copper for the quarter, reaching a total of 751,000 ounces of gold and 76,000 tonnes of copper for the full year.
- However, the increase in all-in sustaining costs (AISC) to $1,572 per ounce for FY’25 was significantly affected by higher royalty costs due to elevated gold prices.
Research Comment english – Almonty Industries Inc. – 21.07.2025
- Almonty Industries Inc. and MP Materials Corp. are both players in the critical minerals space, supplying materials vital for modern industries and strategic applications.
- Almonty focuses on tungsten, a metal essential for defense, electronics, and industrial tooling, while MP Materials is a leading U.S. producer of rare earth elements, particularly neodymium and praseodymium, used in permanent magnets for electric vehicles, wind turbines, and military technologies.
- Recently, Almonty has been progressing the development of its flagship Sangdong tungsten mine in South Korea, which is expected to start production in late 2025 and potentially double capacity by 2027 through a planned expansion.
29Metals Ltd – Australian Broker Call *Extra* Edition – Jul 22, 2025
- Extra Edition of the Broker Call Report
Asia base oils demand outlook: Week of 21 July
- Asia’s base oils demand shows signs of holding firmer than usual for time of year even as region’s lube demand faces seasonal slowdown in month of August.
- Lower end-user consumption and prospect of improving availability of supply curbs need to build stocks.
- Tighter-than-usual supply so far this year, lack of build-up of surplus volumes, and seasonal pick-up in demand in late-Q3 2025 could support steady demand.
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