Daily Brief Energy/Materials: Korea Zinc, Anglo American, Iron Ore, SGX Rubber Future TSR20, Pan American Silver, Pharos Energy and more

• As of today, it’s clear Choi is struggling to secure white knights, pushing him to double down on political lobbying to stay in the game.
• Choi’s aiming for the National Pension Service’s 7.57% voting rights, but with its legal neutrality, the chances of it caving to political pressure are slim.
• MBK’s statement today shows confidence that Choi won’t get Fair Trade Commission approval, and that, like Hanwha and LG, Hyundai Motor won’t back him either.

• On Friday in the closing auction, JSE indices will be rebalanced. PPH will enter the Top 40, with AMS falling out.
• There are also a number of changes to the ALSI index – PHP & PMR will be added, with THA & TCP falling out.
• Hedgers and passives tracking uncapped indices will be sellers of Naspers and Prosus whereas those tracking the capped variants will be buyers.

• China’s industrial production grew 4.5% YoY in August, missing the 4.7% forecast and marking the slowest growth since March.
• Property investment fell 10.2% YoY YTD, with house prices declining 5.3% YoY, the steepest since 2015.
• Iron ore imports dropped 1.38% MoM as port inventories rose continued rising into September. Typhoon Bebinca disruptions may drive inventory drawdown in coming weeks.

• Malaysian glove industry to rake in RM12.4 billion in exports in 2024  
• Ivory Coast lags in imports to Malaysia after 9-month lead  
• Home Ministry lets 10,000 foreign workers in to meet labor shortage

• SGX Iron Ore futures closed 55 cents higher at $92.80/ton, after fluctuating between a $95.55/ton high and $89.60/ton low.
• Short-Term technicals reveal bearishness as the 9-day moving average fell below the 21-day, triggering a death cross signal.
• Iron ore prices failed to sustain a 50% Fibonacci retracement level, indicating weak market support amid poor fundamentals.

Pan American Silver (PAAS) has released its annual mineral reserves and resources statement. While the overall reserves and resources have fallen compared to 2023 due to the asset divestments, on an adjusted basis the company has fully replaced its proven and probable (P&P) reserves and reported a significant increase in measured and indicated (M&I) resources in the silver segment. The gold segment has seen a visible boost to its inferred resource due to exploration work at Jacobina, which has also seen a healthy increase in its P&P reserves despite maintaining flat M&I resources over the year. Overall, six out of 11 producing operations, including flagship Jacobina and La Colorada, have seen their mineral reserves either fully or almost fully replaced in tonnage terms during the year to June 2024.

• 1H24 production of 5,851 boe/d had been reported previously.
• Pharos has re-iterated its FY24 production guidance of 5.2-6.5 mboe/d.
• The company expects to spend US$26 mm (net) capex in 2024 (US$27 mm previously).