Daily Brief Energy/Materials: JX Advanced Metals, SICC, LG Chem Ltd, SKC Co Ltd, TMC the metals co, Directa Plus, VAALCO Energy, Dynacor Group , HELLENiQ ENERGY Holdings S.A., Infinity Natural Resources and more

• JX Advanced Metals (5016 JP) listed in March and did not get Fast Entry to global indices since a large part of the IPO was allotted to domestic retail investors.
• JX Advanced Metals (5016 JP) will be added to one global index this month and could be added to the other global index in September.
• The stock is trading higher following the better than forecast results announced last week. The index inclusions could take the stock higher in the short-term.

• SICC (688234 CH) , a manufacturer of high-quality SiC substrates, aims to raise up to US$260m in its H-share listing.
• In terms of market share, as per Frost & Sullivan, based on 2024 sales, its market share was at 16.7%.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• In the past three months, LG Chem has announced two asset sales worth 1.6 trillion won including dermal filler and water filter businesses. 
• Due to worsening balance sheet and need to raise additional capital, there is an increasing probability of LG Chem selling a partial stake in LGES in the next 6-12 months.
• Our NAV valuation of LG Chem suggests implied NAV per share of 414,325 won, which is 49% higher than current levels.

• On 11 August, SKC Co Ltd (011790 KS) announced that it will issue exchangeable bonds (EB) worth 125 billion won.
• The exchange price is 114,714 won, which is a 14% premium to the reference stock price calculated based on the market price.
• We are Negative on SKC’s EB issue of 125 billion won which is likely to put a negative sentiment on its share price.

The Metals Company’s (TMC’s) application for an exploitation licence through the US legislative framework provides the potential to accelerate the group’s plans and management now expects commercial operations to commence in Q327. The release of a technical report summary (TRS) of the pre-feasibility study (PFS) for the NORI-D block provides further granularity, particularly on the anticipated economics. The capital markets event provided additional context and insights into TMC’s long-term strategic direction and future potential

• Cobra Resources 2.60p £20.63m (COBR.L) The mineral exploration and development Company advancing a Rare Earth Element (REE) discovery at its Boland Project in South Australia announced initial results from re-analysis of historical, uraniumfocused rotary mud drilling from a recently acquired tenement (EL 6742) that covers over 750km square of the prospective Yaninee Palaeochannel system.
• Results indicate the presence of a REE system with characteristics reflective of Boland on the Narlaby Palaeochannel 10-20km to the northeast.
• This significantly increases the scale of the ionic REE system within the Pidinga Formation amenable to lowcost, low disturbance In Situ Recovery. 

• 2Q25 WI production averaged 21,654 boe/d, near the top end of the guidance range (20–22.1 mboe/d).
• Gabon production was particularly strong at 8,563 bbl/d (guidance of 7.8–8.6 mbbl/d), driven by continued flow from the 4H well at Ebouri, which remains ~1,000 bbl/d (gross).
• Despite high H₂S concentrations, chemical treatment has proven effective.

• DNG reported Q2 financial results that were mixed relative to our expectations, missing on production results and beating on financials.
• Q2 revenue was $79.9M compared to our estimate of $78.6M and Q2 OCF (before WC) was $4.2M compared to our estimate of $4.0M.
• Management has updated its annual guidance to reflect ore supply headwinds seen in Q2.

HELLENiQ ENERGY delivered a resilient Q225 performance despite lower oil prices and the planned maintenance at the Elefsina refinery. Group sales fell 25.7% y-o-y to €2,433m, with reported EBITDA down 38.5% to €112m and adjusted EBITDA 4.7% lower at €221m. The relatively modest decline in adjusted EBITDA reflected higher output from the Aspropyrgos and Thessaloniki plants, stronger realised refining margins, improved domestic demand and a record international performance, offsetting the impact of the turnaround and a weaker petrochemicals performance. Adjusted net income was broadly flat at €72m (-1.4% y-o-y), while reported net income turned negative due to a significant decline in crude prices.

• Infinity Natural Resources (INR US)  came to market on January 31st pricing 13.25 million shares at $20.00 and opening at $22.16 for an 11.3% first-trade gain.
• After peaking early in its first week, INR has experienced steady downward pressure. July was particularly brutal, with the stock declining 18%—its worst monthly performance since listing.
• Infinity Natural Resources managed weakness from a broken IPO from its sector, Venture Global (VG). Six months later the sector winds have not calmed down.