In today’s briefing:
- JX Advanced Metals (5016 JP) IPO: Valuation Insights
- JSE Mar25 Rebalance: AMS to Enter Top 40, EXX to Be Deleted
- TOC: First Drilling at Expansion Area Hits High-Grade
- JX Advance Metals Pre-IPO – Thoughts on Valuation
- [US Crude Oil Options Weekly 2025/08] WTI Surrendered Gains on Weak Economic Signals
- [US Nat Gas Options Weekly 2025/08] Henry Hub Extends Gains for Third Week Amid Sustained Cold Snap
- Panoro Energy ASA (OSE: PEN): Increasing shareholder distributions to >15% of the current market cap at US$70/bbl
- Sintana Energy Inc. (TSX-V: SEI): New Material Discovery at Mopane
- Corcel Plc (AIM: CRCL): Successful Workover in Brazil
JX Advanced Metals (5016 JP) IPO: Valuation Insights
- JX Advanced Metals (5016 JP) is a global leader in the semiconductor and ICT materials sector. It is seeking to raise up to US$2.6 billion.
- We previously discussed the IPO in JX Advanced Metals (5016 JP) IPO: The Bull Case and JX Advanced Metals (5016 JP) IPO: The Bear Case.
- In this note, we discuss valuation. My analysis suggests that JXAM is attractively valued at the IPO price compared to peer multiples.
JSE Mar25 Rebalance: AMS to Enter Top 40, EXX to Be Deleted
- Last night, the price snapshot was taken for the JSE March 2025 rebalance. AMS is expected to enter the Top 40 index, with EXX falling out.
- No changes are expected for the FINDI, FINI, INDI or RESI indices.
- The JSE rebalance is scheduled to take place in the closing auction on Thursday the 20th of March (due to the public holiday on Friday).
TOC: First Drilling at Expansion Area Hits High-Grade
- Tocvan reported the first RC drill result from the 100% controlled Expansion Area just to the north of the Main Zone.
- A total of 776.2m of drilling was reported across 4 drill holes.
- The highlight intercept was a scout hole reporting 3.1 g/t Au over 19.8m, including 19.4 g/t Au over 3.1m.
JX Advance Metals Pre-IPO – Thoughts on Valuation
- JX Advanced Metals (5016 JP)’s parent, ENEOS Holdings (5020 JP), is looking to raise around US$2.6bn via selling more than half of its stake in JXAM in its Japan IPO.
- JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used in the semiconductor and ICT fields.
- We looked at the company’s past performance and undertook a peer comparison in our previous note. In this note, we talk about valuations.
[US Crude Oil Options Weekly 2025/08] WTI Surrendered Gains on Weak Economic Signals
- WTI futures fell by 0.5% for the week ending 21/Feb, marking its fifth consecutive weekly drop. Prices fell due to bearish economic data and rising crude inventories.
- WTI options Put/Call volume ratio surged to 1.62 on 21/Feb (Fri) from 0.94 on 14/Feb, as call volume rose by 15.9% WoW while put volume jumped by 100%.
- WTI OI PCR fell to 0.95 on 21/Feb compared to 0.96 on 14/Feb. Call OI increased by 6.5% WoW, while put OI rose by 6.1%.
[US Nat Gas Options Weekly 2025/08] Henry Hub Extends Gains for Third Week Amid Sustained Cold Snap
- For the week ending 21/Feb, U.S. natural gas prices gained 13.7% on the back of colder weather forecasts, rising LNG exports, and falling inventories.
- Henry Hub Put/Call volume ratio rose to 0.72 on 21/Feb from 0.66 on 14/Feb as call volumes increased by 81.4% WoW, while put volumes surged by 98%.
- Henry Hub OI PCR rose to 1.04 on 21/Feb from 0.98 on 14/Feb. Call OI rose by 7.1% WoW, while put OI increased by 13.3%.
Panoro Energy ASA (OSE: PEN): Increasing shareholder distributions to >15% of the current market cap at US$70/bbl
- FY24 production, YE24 cash and debt had been reported previously.
- FY25 production is expected to be 11-13 mbbl/d with only US$35 mm capex.
- We have trimmed our production forecast from 13.1 mbbl/d to 12.5 mbbl/d and our capex estimates from US$40 mm to US$35 mm.
Sintana Energy Inc. (TSX-V: SEI): New Material Discovery at Mopane
- The Mopane-3X exploration well has encountered columns of light oil and gas-condensates across the AVO-10 interval, as well as light oil columns at AVO-13 and at a deeper sand.
- The sandstone reservoirs are of excellent quality, with high permeability and porosity, and higher-than-estimated pressure.
- The oil has low viscosity, with minimal CO2 and H2S content.
Corcel Plc (AIM: CRCL): Successful Workover in Brazil
- The EI-1 well at the Irai gas field in Brazil has been tested at a rate of 120 boe/d (~0.7 mmcf/d). The well had been shut-in since 2022.
- This test rate exceeds our forecast of ~0.5 mmcf/d for the first quarter of production, achieved within three months from signing the agreement with Irai’s owner.
- Once onstream, production from the EI-1 well will boost production from the existing EI-3 well, which we estimate at ~0.6-0.7 mmcf/d.
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