Daily Brief Energy/Materials: Korea Zinc, Crude Oil, West China Cement, Wheaton Precious Metals, SGX Rubber Future TSR20, Nippon Denko, Crown Holdings and more

• Korea Zinc (010130 KS)’s chairman Choi Yoon-Beom announced that the company will cancel all 2.04 million treasury shares that the company acquired through a tender offer last year.
• Now the company has finally decided to cancel all of the treasury shares this year, this should have a positive impact on its share price.
• Korea Zinc announced better than expected earnings in 1Q25. Korea Zinc achieved more than 3.5-fold increase in sales in the strategic minerals sector, including antimony, indium, and bismuth in 1Q25.

• For the week ending 02/May, U.S. crude inventories fell by 2m barrels (vs. expectations of a 1.7m barrel fall). Gasoline stockpiles unexpectedly rose; distillate inventories fell less than anticipated.
• The EIA reported a 104 Bcf storage build, slightly exceeding the 103 Bcf forecast. Storage levels are 1.4% above the five-year average.
• Analysts cut price targets on Exxon, Chevron, Shell, Halliburton, and Schlumberger. Occidental exceeded Q1 EPS estimates but narrowly missed revenue forecasts.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: West China Cement, Medco Energi
• The US has unveiled a trade agreement with the UK. The US will maintain a 10% blanket tariff on UK imports, while UK duties on US goods will be reduced to 1.8% from 5.1%. It is unclear how the figures are tabulated.
• In addition, tariffs on UK autos will be adjusted such that a 10% tariff will apply to the first 100 k vehicle imports, with any additional vehicles facing a 25% rate.

Wheaton announced record revenue, earnings and operational cash flows in Q125, posting adjusted net EPS that was 10.5% better than our forecast and at the top of the range of analysts’ expectations. The main reason for the outperformance was an 18,616oz (20.1%) oversale of gold relative to production, which drove a US$40.1m positive variance in revenue, partially offset by an US$8.6m negative variance in costs, US$3.6m lower-than-expected interest income and US$2.3m higher tax to result in a US$23.9m positive variance in earnings. As a result, we have upgraded our FY25 adjusted net EPS forecast by 7.5c per share (3.4%). Note that, at current metals prices, our FY26 EPS estimate rises by 73.0% to US$2.63/share.

•  In Q1 2025, Cambodia exports 59,754 tons of rubber, down 13.8% YoY  
• Overall rubber production in Q1 2025, 64,080 tons, down 7.9% YoY  
• Trump tariff, EUDR pose challenge to Cambodian rubber and tire  

Wheaton announced record revenue, earnings and operational cash flows in Q125, posting adjusted net EPS that was 10.5% better than our forecast and at the top of the range of analysts’ expectations. The main reason for the outperformance was an 18,616oz (20.1%) oversale of gold relative to production, which drove a US$40.1m positive variance in revenue, partially offset by an US$8.6m negative variance in costs, US$3.6m lower-than-expected interest income and US$2.3m higher tax to result in a US$23.9m positive variance in earnings. As a result, we have upgraded our FY25 adjusted net EPS forecast by 7.5c per share (3.4%). Note that, at current metals prices, our FY26 EPS estimate rises by 73.0% to US$2.63/share.

• Revenue for FY12/25 was JPY19.4bn, a 9.4% YoY increase, with operating profit rising 22.6% YoY to JPY1.0bn.
• The Ferroalloy business experienced a YoY profit decline, while Functional Materials and Incineration Ash Recycling saw profit growth.
• Nippon Denko forecasts a YoY decrease in revenue and recurring profit for FY12/25, citing manganese ore market downturn.

• Crown Holdings reported a strong first quarter for 2025, outperforming expectations with earnings per share at $1.65, significantly higher than the $0.56 from the prior year.
• On an adjusted basis, EPS reached $1.67, an increase from $1.02 a year ago.
• This robust performance was driven by a 3.7% rise in net sales, attributed to gains in global beverage can volumes and North American food can volumes.