Daily Brief Energy/Materials: Crude Oil, ACME Solar Holdings, Copper, Mongolian Mining, Chariot Limited, Centrus Energy , Boise Cascade Co and more

• US oil and gas rig count increased by two to 586 for the week ending 19/Jul, rising for the second time in the last three weeks.  
• US oil rig count fell by 1 to 477, declining for the second straight week. Gas rigs rose by 3 to 103, after falling by one the week prior.
• The EIA has increased its US crude production forecasts in its latest STEO report, raising them by 0.8% YoY for 2024 and 0.4% YoY for 2025. 

• ACME Solar Holdings (1700918D IN) is looking to raise US$360m in its upcoming India IPO. The bookrunners on the deal are ICICI, JM Financial, Kotak, Nuvama Wealth and Motilal Oswal.
• ACME Solar (ACME) is a renewable energy firm with a portfolio of solar, wind, hybrid and firm and dispatchable renewable energy (FDRE) projects.
• As per CRISIL, the firm was among the top 10 renewable energy players in India in terms of operational capacity as of FY24. 

• Take aways: China will flood markets with copper supply
• Copper har decoupled from macro fundamentals according to our PCA tool
• It’s a tuck or war between positioning and fundamentals in metals. Crude tumbling despite all time highs in global flight data and crowded congestion

• Following our insight, Mongolia Mining Corp (975 HK): Play on Coking Coal Price With Growth Optionality, Mongolian Mining (975 HK) has released its Q2 2024 operational numbers. 
• For Q2, the sales of coking coal products increased by 47% YoY and for H1 by 25% YoY. HCC was only 63% of the product mix (vs 87% in H1FY23).
• Based on our numbers, the stock trades at 5.6x FY24 PE and 2.6x EV-EBITDA. We await the H1 FY23 results and clarity on the dividend catalyst in August. 

• Chariot has raised US$6.4 mm of new equity (US$7 mm before expenses) priced at 6.5 p per share.
• Management and insiders have contributed ~US$1 mm to the raise.
• The company was initially looking to raise only US$6 mm (before expenses) but the fundraising was oversubscribed.

• Short Centrus and long Silex Systems and Cameco to hedge against commodity price and uranium enrichment hype risk
• Centrus underperforming and expected to trade lower due to potential ban on Russian imports
• Long positions in Cameco and Silex Systems could offset risks and benefit from increased demand for Western enrichers

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Boise has transformed under new management since spinning off from OfficeMax in 2013
• Strategic acquisitions and investments have shifted focus towards higher-margin products
• Repurposing lumber/plywood capacity for engineered products and closer integration between segments have positioned Boise for strong cash flow returns

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• CTA Positioning Update The latest CTA picture by UBS shows that managed money is currently maxed long coffee and oil and max short corn, soybeans cotton and lean hogs.
• The contrarian ideas would speculate on the exact opposite of this positioning. On the other hand, the data currently suggests only slight changes in the current positioning.
• On the other hand, the data currently suggests only slight changes in the current positioning.