In today’s briefing:
- Kiri’s $700 Million Exit From DyStar – What Next?
- Korea Zinc (010130 KS): TC/RC Recovery Sets Stage for Earnings Re-Rating
- [IO Technicals 2025/37] Bullish Rally Flickers Out
- Daido Steel – Specialty Strength with Strategic Upside
- U.S. Petrochemical Companies Gain Ground as European Firms Falter in U.S.-China Trade War
- Spanish Mountain Gold: Major Gold Project in BC; Accelerating to Production
- Enterprise Products Partners Expands Ethane & LPG Exports With Capacity Boost; What’s The Expected Future Revenue Impact?
- What’s News in Amsterdam – 12 September (SBMO | Dutch financials)
- CRH Emerges as a Powerhouse Leveraging Federal Bills & Pricing Strategy; What’s Next?
Kiri’s $700 Million Exit From DyStar – What Next?
- Kiri Industries has signed a deal to sell its 37.6% stake in DyStar Global to Zhejiang Longsheng for US$697 million (~INR 5,800 crore), concluding a decade-long Singapore court battle.
- The payout is multiple times Kiri’s current market cap and marks one of the strongest minority shareholder wins globally.
- The DyStar exit removes litigation overhang and hands Kiri a war chest. Now, execution of the copper and fertilizer project will define the future of the company.
Korea Zinc (010130 KS): TC/RC Recovery Sets Stage for Earnings Re-Rating
- Recent News: CZSPT’s Sep 9 guidance points to imported zinc concentrate treatment charges of US$120-140/dmt for Q4, and Bloomberg confirms Chinese smelters are tightening terms.
- Impact: This rebound in TC/RC levels should lift Korea Zinc’s EBITDA by approximately US$100-135 million, representing a ~5-7% earnings upside over current troughs.
- Valuation: On normalized earnings, Korea Zinc could re-rate to 8–9× EV/EBITDA. At $120–150/dmt TCs, this points to ~20–50% upside, with further headroom if multiples expand alongside earnings recovery.
[IO Technicals 2025/37] Bullish Rally Flickers Out
- Supply jitters and China’s steel rebound lifted prices, as Rio faces local refining pressure and Brazil fire fears linger.
- Managed money participants are rebuilding bullish bets, lifting net longs and open interest, signalling revived demand and expectations of further gains.
- Prices pulled back after hitting the upper Bollinger band, hinting at profit-taking as traders watch the basis band for support.
Daido Steel – Specialty Strength with Strategic Upside
- Leading Japanese specialty steelmaker with core exposure to auto, stainless/alloys, magnets, and industrial components.
- Mid-Term strategy centers on higher-margin growth products (SPE stainless, magnets, aerospace forgings) supported by new VAR and forging capacity.
- Valuations & Risks: Trades at a forward P/E compressing to ~5× by FY28E, but cyclical demand swings and raw material volatility remain key risks.
U.S. Petrochemical Companies Gain Ground as European Firms Falter in U.S.-China Trade War
- U.S. tariffs intensify strain on the petrochemical sector, shielding domestic producers while redirecting Chinese exports into Asia and leaving European firms most exposed.
- Trade barriers amplify oversupply pressures, benefiting U.S.-centric petrochemical firms, granting Middle Eastern players new market share, and pushing Chinese exporters into low-margin Asian markets.
- Global petrochemicals face a reset, exposing Europe’s vulnerabilities, capping Asian gains, and reinforcing domestic advantages for American producers.
Spanish Mountain Gold: Major Gold Project in BC; Accelerating to Production
- Spanish Mountain is the 100% owner of the Spanish Mountain Gold Project, which hosts a 4.2Moz resource (M&I) and recently published a robust PEA outlining a 24.5-year mine life.
- With a base case NPV5% of $1.0B and 98% of mine tonnage in the M&I category, the project is rapidly advancing toward a construction decision.
- Management and directors own 18%, aligning interests with investors, while Eric Sprott and Ian Watson own 11% and 6%, respectively.
Enterprise Products Partners Expands Ethane & LPG Exports With Capacity Boost; What’s The Expected Future Revenue Impact?
- Enterprise Products Partners L.P. delivered solid financial results for the second quarter of 2025 despite facing macroeconomic challenges and seasonal headwinds.
- The company reported adjusted EBITDA of $2.4 billion and distributable cash flow (DCF) of $1.9 billion, providing a robust 1.6x distribution coverage.
- Enterprise retained $740 million of DCF, which underscores its strong cash generation capabilities and prudent financial management.
What’s News in Amsterdam – 12 September (SBMO | Dutch financials)
- In today’s edition: • SBM Offshore | ABS grants approval in principle to SBMO for blue ammonia concept • Dutch banks/insurers | Dutch mortgage market continues to show healthy growth
CRH Emerges as a Powerhouse Leveraging Federal Bills & Pricing Strategy; What’s Next?
- CRH plc recently reported its financial results for the second quarter of 2025, demonstrating robust performance across various metrics.
- The company delivered a record second quarter with a 6% year-on-year increase in total revenue, amounting to $10.2 billion.
- This growth was driven by strong underlying demand, positive pricing momentum, and contributions from acquisitions.
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