Daily Brief Energy/Materials: Korea Zinc, JX Advanced Metals, Copper, Agnico Eagle Mines , Champion Iron, Omai Gold Mines, Soosan Industries, Chuangxin Industries, Arrow Exploration Corp, Crude Oil and more

• MBK Partners acquired an additional 2.7% stake in Korea Zinc raising its total ownership to 39.7%. This is likely to fuel additional positive share price momentum on Korea Zinc.
• This is likely to rekindle a potential M&A fight for the management control of the company. 
• This additional additional purchase of Korea Zinc by MBK Partners is a signal, not noise. Another M&A fight is likely in the next AGM in March 2026. 

• JX Advanced Metals (5016 JP) — Second Guidance Upgrade; Margin Expansion Accelerates, Momentum Builds
• Focus businesses now contribute nearly half of operating profit, reinforcing structural earnings quality.
• JX Advanced Metals trades at ~22× FY26E P/E and ~13× EV/EBITDA, reflecting premium growth exposure but still below Japanese specialty materials peers (Tokyo Ohka ~26×, Entegris ~45×).

• Global copper demand is stabilising after months of weakness, even as inventories thin out. The ICSG now expects a 150,000-ton deficit in 2026, reversing its earlier forecast of a surplus.
• A softer dollar and expectations of continued Fed easing are improving the backdrop for commodities. The copper–gold ratio sits near 30-year lows, signalling room for mean reversion.
• The bullish setup hinges on growth holding up and exceeding the rate of growth of China. Electrification to be the biggest driver.

• We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass).
• We have discussed weekly since 10/14/25 how our near-term bullish outlook remains intact as long as SPX holds above the 3-month uptrend, coinciding with the 50-day MA; this remains true.
• Gold (GLD) and silver (SLV) held above $358-$361 and $41.70 supports and appear ready to resume their long-term uptrends. Recently discussed we were buyers in our October 29th report

• We analyse Champion Iron (CIA AU) after improvements in its operations in Q2FY26. The company destocked 477k tons and is down to 1.7 million tons to further reduce the stockpile.
• The company also saw an improvement in its realized iron ore price (to 128 CAD/ton or 19% YoY) as it reduced its contractual arrangements for material. 
• Despite the improvement in operational performance, which will drive profitability up 52% YoY, the stock trades at 11.7x FY26 PE and is fairly valued. We prefer Fenix Resources (FEX AU) 

• What you need to know: • Omai’s long hole hits multiple zones of mineralization, confirming strong gold grades ~700m below the previously lowest known mineralization at Wenot.
• • This result suggests a doubling of the size potential of Wenot, proving to investors (and potential acquirers) that the Omai system can support a very long mine life at a high throughput.
• • Drilling continues to accelerate with five drills turning at Wenot and YTD meterage over 30,000m (double the 15,000m originally planned).

• Soosan Industries is a key player in the South Korean power plant maintenance sector, specializing in essential services for the nation’s nuclear and thermal power generation facilities. The company is positioned to benefit from the government’s renewed focus on nuclear energy as a cornerstone of its long-term electricity supply plan.
• The company exhibits attractive valuation metrics, with a low price-to-earnings and price-to-book ratio compared to the broader market. This, combined with a consistent dividend history, may appeal to value-oriented investors.
• Recent financial performance indicates top-line pressure and margin contraction, reflecting potential cyclicality and a competitive operating environment. Future growth is heavily tied to securing new maintenance contracts and the execution of the national energy strategy, which includes both the extension of life for existing plants and the construction of new ones.

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• Chuangxin Industries (CXI HK) is looking to raise at least US$700m in its upcoming Hong Kong IPO.
• It is focused on alumina refining and aluminum smelting within the upstream of the aluminum industry chain.
• In this note, we look at the firm’s past performance.

• • The M-5 vertical well at Mateguafa Attic encountered approximately 26 feet of net oil pay in high-quality Guadalupe sandstone (22% porosity), along with an additional 11 feet in the Carbonera C7 formation.
• The discovery will contribute new reserves, as none had previously been attributed to Mateguafa Attic.
• • The well was brought online in the Guadalupe interval, delivering a gross oil rate of 570 bbl/d with an 8% water cut on a tight 17/128 choke.

• Crude oil futures were sliding lower Wednesday with benchmarks failing to hold the early-week gains as traders eyed the impact of Russian sanctions against the supply glut.
• Front-month Jan25 ICE Brent futures were trading at $62.63/b (2151 GMT) versus Tuesday’s settle of $65.15/b, while Dec25 NYMEX WTI was at $58.40/b against a previous close of $61.04/b.
• Sentiment had improved at the start of the week with the US government shutdown set to end, while tighter sanctions on Russia have started to disrupt supplies.