Daily Brief Energy/Materials: JSR Corp, Shaanxi Coal Industry, Entree Resources, Pembina Pipeline , Teck Resources , Triple Flag Precious Metals and more

• We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: APM Human Services Internation (APM AU), Probiotec Ltd (PBP AU), Alumina Ltd (AWC AU), Shinko Electric Industries (6967 JP), JSR Corp (4185 JP), China TCM.
• Lowest spreads: Tietto Minerals Ltd (TIE AU), Orecorp Ltd (ORR AU), CPMC Holdings (906 HK), Pact Group Holdings (PGH AU), Yaizu Suisankagaku Industry (2812 JP).       

• The iShares A50 China (2823 HK) and CSOP China A50 (HKD) (2822 HK) ETFs will rebalance their holdings at the close on 15 March.
• Shaanxi Coal Industry, Hygon Information Technology, CGN Power and China Everbright Bank will replace Aier Eye Hospital, Bank Of Ningbo, WuXi AppTec and Jiangsu Yanghe Brewery in the ETFs.
• Hygon Information Technology (688041 CH) will also be added to a global index at the same time while CGN Power (1816 HK) will be added to the FXI ETF.

• Rio Tinto Ltd (RIO AU) has one of its most prized assets in Mongolia. The Oyu Tolgoi mine has an 80-year mine-life and will ramp up significantly in coming years.
• Entree Resources (ETG CN) is the last remaining hurdle to acquire after the successful integration of Turquoise Hill in late 2022.
• Entree just released a batch of 2022 (!) drilling results, one month before an arbitration deadline. Why was it released now? Will Rio finally move on Entree before the deadline?

• This is our first report on midstream major, Pembina Pipeline Corporation.
• The company’s Q4 2023 earnings signaled a robust financial position, with quarterly earnings reaching $698 million and a record adjusted EBITDA of over $1 billion.
• This result was bolstered by growing volumes across numerous systems and a strong year from the firm’s marketing business.

• This is our first report on natural resource exploration player, Teck Resources Limited.
• The company showed a strong fourth quarter performance across their business, advancing operations at QB and reporting a record-breaking quarterly copper production.
• This also led to an Adjusted EBITDA of $1.7 billion in Q4 and $6.4 billion for the year.

Key points

• Gold is reaching all-time highs due to declining real rates
• Investing in precious metals royalty and streaming companies, like Triple Flag Precious Metals, is recommended
• Triple Flag offers strong qualities and relative valuation discount compared to larger counterparts

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.