Daily Brief Energy/Materials: Iron Ore, Antero Resources, BASF , Sinanen Holdings, Antero Midstream Corp, Wheaton Precious Metals, Albemarle Corp, Newmarket Corp, Alamos Gold , Nihon Nohyaku and more

• China’s July steel exports hit highest year-to-date level since 1990, and S&P affirms A+ rating despite property and trade challenges. 
• Managed money participants turned net long in futures after prolonged bearishness, adding positions as prices neared the $100/ton mark. 
• Despite a recent death cross, prices remain firm above short-term MA, nearing bullish crossover, with Bollinger Bands signalling resilience and upside potential. 

• Antero Resources recently reported its second-quarter results for 2025, revealing a mix of positive and negative developments that reflect its operational strategies and market dynamics.
• On the positive side, Antero Resources has achieved notable improvements in capital efficiency, managing to increase its production guidance while reducing capital expenditures.
• This improvement is underscored by a 26% decline in maintenance capital requirements from $900 million to $663 million since 2023.

• BASF SE’s second quarter 2025 financial results present a balanced view of challenges and opportunities faced by the company in a complex macroeconomic landscape.
• The company reported EBITDA before special items of approximately EUR 1.8 billion, a decrease from EUR 2 billion in the same quarter the previous year, reflecting the pressures from global economic uncertainties and declining margins in its upstream Chemicals segment.
• Positives from the results include robust performance in the Agricultural Solutions segment, which saw a 21% increase in earnings driven by strong volume growth and improved margins across all regions, particularly North and South America.

• Sales declined 0.6% YoY to JPY63.2bn, while operating profit rose 126.9% YoY to JPY726mn due to higher petroleum sales.
• Revenue rose 2.3% YoY to JPY15.5bn, driven by increased kerosene sales volume and lower SG&A expenses.
• Revenue and profit increased in bike sharing and systems businesses, but operating profit declined in building maintenance due to costs.

• Antero Midstream’s second-quarter 2025 earnings call highlighted several financial and operational developments, reflecting a mix of positive and challenging aspects for the company.
• Antero Midstream, a vital player in the midstream sector, primarily focuses on gathering, compression, and water handling services.
• The investment thesis for Antero Midstream is built on its steady growth in operating cash flow, prudent capital allocation, and strategic positioning in connection to LNG facilities.

For the second quarter in succession, Wheaton Precious Metals (WPM) has announced record revenue, adjusted earnings and operational cash flows, posting adjusted net EPS that was 7.7% better than our forecast and above the top of analysts’ expectations (source: LSEG Data & Analytics, 7 August). The main reasons for the outperformance were a 12.8% positive variance in silver production coupled with a 5.0% positive variance in gold sales, which were 7.6% (or 7,005oz) above production for the quarter. Together, these drove a US$38.6m (8.3%) positive variance in revenue, only partially offset by a US$12.1m negative variance in costs, resulting in a US$20.4m positive variance in earnings and a 4.5c positive variance in adjusted net EPS. As a result, we have upgraded our FY25 adjusted net EPS forecast by 2.1c/share (0.9%). At current metals prices, our FY26 EPS estimate rises by 84.0% from that shown below to US$2.65/share.

• Albemarle Corporation’s Q2 2025 financial results present a complex picture of both opportunities and challenges.
• The company reported net sales of $1.3 billion, which, while down year-over-year due to lower lithium market pricing, were bolstered by strong volume growth, particularly in energy storage and specialties.
• Adjusted EBITDA came in at $336 million, demonstrating year-over-year improvements in cost and productivity, despite the pricing pressure.

• NewMarket Corporation’s financial performance in the second quarter of 2025 highlights several key areas of stability and challenge within its business operations.
• During this period, the company reported a slight decline in net income, with $111 million or $11.84 per share compared to $112 million or $11.63 per share in the same quarter of 2024.
• Despite this quarterly decline, NewMarket achieved a record net income for the first half of 2025, reaching $237 million or $25.11 per share, up from $219 million or $22.87 per share in the first half of 2024.

• Alamos Gold Inc.’s recent earnings conveyed key operational updates for the second quarter of 2025, showcasing positive production results, strategic initiatives, and revisions to cost guidance.
• The company reported total gold production of 137,000 ounces, reflecting a 10% increase from the first quarter and aligning with quarterly guidance.
• This improvement was primarily driven by enhanced performances across all three of Alamos Gold’s mining operations.

• Revenue increased 41.0% YoY to JPY27.1bn, driven by growth in domestic and overseas agrochemical sales and technical fees.
• Gross profit rose 80.4% YoY to JPY9.5bn, with a gross profit margin of 35.1%, and operating profit reached JPY3.5bn.
• The company revised its FY03/26 forecast, expecting revenue of JPY109.0bn, with a 112.2% YoY increase in net income.