Daily Brief Energy/Materials: Gold, Red Avenue New Materials Group, Kunlun New Energy Materials Technology (Yichang), Woodside Petroleum, Auric Mining, Crude Oil, Gerdau and more

• Gold ran 4,400 to 4,634 in two weeks, taking the 200-day gate and its third straight weekly gain, as US debt crossed US$40 trillion.
• Ray Dalio warns of a debt crisis within roughly three years, debt service near 200% of revenue — reframes Bessent’s US$4bn buybacks as a crisis symptom, not a fix.
• BULLISH on Gold, Fair Value US$4,780 unchanged: The upside is fairly close and therefore wait for pullbacks or profit taking trades and then build positions.

• Red Avenue New Materials Group is a PRC comprehensive new materials service provider specializing in advanced chemical products. It holds leading market positions in rubber additives and photoresist markets, undertaking.
• The company ranked #1 in global phenolic resins rubber additives for tyres market (FY2025) and #1 in PRC TFT array photoresist market (FY2025). Revenue increased to RMB3,420.6 million (FY2025).
• FY2025 revenue was RMB3,420,577 thousand, with profit for the year of RMB577,261 thousand and return on equity of 15.0%. The current ratio declined to 0.9 times (30 June 2026).

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• Kunlun New Energy Materials Technology (Yichang) is a global supplier of lithium-ion battery electrolytes, specializing in R&D, production, and sales. It ranked third globally in 2025 with a 3.6% market.
• Secured electrolyte orders worth around RMB684.4 million since July 1, 2026, an increase of 217.2% compared to the corresponding period of 2025.
• Revenue was 1,971,914 thousand for the six months ended June 30, 2026, and total assets were 3,527,198 thousand.

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• Louisiana LNG’s capital risk has been heavily mitigated by the twin sell-downs in 2025 to Stonepeak (40%) and Williams (10% HoldCo, 80% PipelineCo). This structural partnering shifted $7.6 billion in capital obligations away from Woodside’s balance sheet, though Woodside remains exposed to $11.8 billion in capex and is actively searching for a third partner to acquire a further 20% stake.
• Scarborough is on the home stretch at 98% complete as of mid-2026, with first gas achieved and first LNG cargo locked in for Q4 2026. This project is the linchpin for Woodside’s near-term deleveraging strategy, as it must generate substantial free cash flow to offset a balance sheet currently carrying $9.3 billion in net debt and a 21% gearing ratio.
• Decommissioning liabilities are an immediate cash drain, with a US$6.89 billion restoration provision on the balance sheet as of Dec 31, 2025 and guided spend of US$500 to US$800 million for 2026 alone. This liability remains highly sensitive to regulatory changes, specifically NOPSEMA’s strict insistence on full removal over in-situ abandonment, which could drive long-term costs significantly higher.

• Auric Mining Limited (ASX:AWJ) is a junior gold producer and developer that owns a portfolio of gold assets around the Kalgoorlie and Norseman regions of Western Australia (WA).
• The release of the Integrated Study is a major milestone for AWJ in becoming a standalone gold producer, with the study detailing attractive economics from a five-year operation.
• AWJ has net cash of ~$38m as of June 2026, which we think can support ongoing exploration, support further tolling opportunities, complementary asset acquisitions, and potentially provide a material contribution towards funding the Burbanks redevelopment.

• Australia’s ASIC releases the aggregated short position data four business days after the reporting day. Data in this insight is up to 17th August, published on the 21st August.
• The largest industry net increase in the past week was A$0.1bn into “Media/Services“; the largest industry net decrease was A$0.4bn out of “Banks“. Net shorts declined A$0.7bn week-on-week.
• Companies mentioned in this regular weekly report include: PLS Group (PLS AU), Woodside Energy Group (WDS AU), CAR Group (CAR AU), Xero Ltd (XRO AU), and Wisetech Global (WTC AU).

• The U.S. is now promising to place a “heavy boot” on Iran of additional economic sanctions, telling countries who trade with Iran “you are either with us or against us.”          
• While traders and funds may bid the market up further in response, our belief is that unless Iran responds militarily, the upside to crude oil prices may be limited.   
• In this regard, we will retain our long-standing $75.00-$88.00 per barrel trading range for the prompt NYMEX crude oil contract until proven wrong.         

• Credit improves, valuation caps upside: 2Q26 EBITDA rose 34% YoY, leverage fell to 1.32x, but 2035s at 138bps OAS leave little compensation beyond U.S. BBBs.
• North America anchors earnings: 74% of segment EBITDA comes from North America, where strong backlog and Section 232 support offset a Brazil recovery still reliant on mix and productivity.
• Neutral, with 2035s preferred: We favor the 5.750% 2035s for liquidity and structure, but would turn more constructive closer to 155bps OAS or on upside execution.