Daily Brief Energy/Materials: Korea Zinc, Natural Gas, Abundia Global Impact Group, Brazil Potash, Mammoth Energy Services, Ring Energy Inc and more

• On 15 December, Korea Zinc (010130 KS) announced a large scale third party capital raise of 2.85 trillion won (US$2.2 billion). 
• Korea Zinc plans to issue 2.21 million new common shares (11.4% of current outstanding shares) at the issue price of 1,291,330 won per share (22.7% lower than current price).
• Korea Zinc announced a strategic partnership with the U.S. government and U.S.-based defense contractors to invest approximately 11 trillion won (US$7.4 billion) in constructing a critical minerals smelter in Tennessee, U.S.

• US government–linked investment in a planned US smelter JV materially lifts Korea Zinc’s long-term strategic relevance and downside valuation floor, even though project cash flows are long-dated and execution-heavy.
• Near–medium term earnings remain supported by zinc TC recovery, structurally higher rare-metals margins (led by antimony and germanium), and treasury-share cancellations, driving improved EPS visibility.
• We raise our target price to ₩2.1m, reflecting partial governance-discount compression and a higher strategic multiple, while maintaining conservative assumptions on timing and returns.

• Winter demand and Europe’s shift from Russian gas have pushed U.S. LNG exports to record highs, tightening domestic balances and reshaping global pricing dynamics.
• Upstream natural gas producers gain little from export strength because long-term contracts, hedging practices, and heavy reinvestment cycles limit their exposure to rising spot prices and short-term market volatility.
• Midstream companies benefit most as fee-based pipeline revenues scale with higher LNG feed-gas flows. 

• Abundia Global Impact Group, Inc. (NYSE American: AGIG) is a technology-driven platform specializing in the conversion of waste plastics and biomass into fuels and chemicals. 
• AGIG’s waste-to-value approach redirects materials from landfills and incineration, transforming them into useful resources like sustainable aviation fuel (SAF), ultra-low-sulfur diesel (ULSD), lubricants, waxes, and chemical feedstocks
• AGIG is pursuing two commercially proven integrated waste-to-fuel pathways: (1) the company’s licensed access to Alterra Energy’s proprietary continuous plastics pyrolysis technology that converts hard-to-recycle waste plastics from landfills and oceans into high-value fuels and chemicals

• Recent settlement with PREPA for $188.4 million significantly improves the company’s balance sheet, allowing for debt repayment and providing capital for strategic investments.
• The company is undergoing a strategic transformation, divesting certain assets like its hydraulic fracturing equipment and parts of its infrastructure business, while expanding into more stable revenue streams such as aviation rentals.
• Despite a strengthened financial position, Mammoth faces significant operational headwinds, including steep declines in annual revenue and net income, and weak demand in its core well completion services segment due to volatile natural gas prices.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.