In today’s briefing:
- What Are Locals Saying About Potential Allies to Choi Family in Fight for Korea Zinc?
- NSL Ltd (NSL SP): YTL’s Unconditional Offer
- Arras Minerals: Looking for Elephant Sized Gold/Copper Deposits in Kazakhstan
- Helixtap China Report: Inclement Weather And Arbitrage Buying Spurs Chinese Prices
- US Rig Count Resumes Decline After Last Week’s Strong Rebound
- [IO Technicals Weekly 2024/38] Iron Ore Falls Below Key Support Level Amid Weak Fundamentals
- [Earnings Preview] Schlumberger Set for Q3 Growth on Global Demand and Seasonal Boost
- AUAU: Provides Update on Eastside Project – MRE Q1/25
- Arrow Exploration Corp. (AIM: AXL): Another horizontal well with high flow rate
What Are Locals Saying About Potential Allies to Choi Family in Fight for Korea Zinc?
- In this insight, we discuss three particular allies that could help the Choi family that have been highlighted by the local media including Hanwha, KIS, and Softbank.
- The Hanwha Group is one of the largest shareholders of Korea Zinc. In addition, Hanwha Group Vice Chairman Kim Dong-Kwan has a close relationship with Korea Zinc Chairman Choi Yoon-Beom.
- Korea Zinc is planning to hold an important press conference on the 24 September to reveal its position on the tender offer of Korea Zinc shares by MBK.
NSL Ltd (NSL SP): YTL’s Unconditional Offer
- Back on the 23rd July, YTL Cement entered into a S&P agreement with 98 Holdings to acquire a 81.24% stake in building material manufacturing/supplier NSL Ltd (NSL SP) at S$0.75/share.
- Pre-Conditions are now satisfied, and YTL Cement has launched a mandatory unconditional cash Offer. The Offer price is also S$0.75/share.
- Super straightforward deal. And will trade tight to – or through terms. YTL’s intention is to maintain NSL’s listing.
Arras Minerals: Looking for Elephant Sized Gold/Copper Deposits in Kazakhstan
- Over the past week we visited parts of Kazakhstan, the 9th largest country in the world.
- Long a favorite of the oil and uranium industry the country is now attracting more metals and mining exploration activity.
- Arras Minerals (ARK V EQUITY) has assembled the 4th largest exploration package and is looking for elephant sized gold/copper deposits. Success at any of its projects could catapult shares higher.
Helixtap China Report: Inclement Weather And Arbitrage Buying Spurs Chinese Prices
- Adverse weather impacts Chinese prices
- Arbitrage buying spurs prices up
- TSR inventory drops in September
US Rig Count Resumes Decline After Last Week’s Strong Rebound
- US oil and gas rig count fell by two to 588 for the week ending 20/Sep, the fifth decline in six weeks, after rising by eight last week.
- The US oil rig count stayed flat at 488 after rising by five last week. Gas rigs fell by one to 96, marking its fourth decrease in five weeks.
- For the week ending 20/Sep, US energy producers added two rigs in Texas. Conversely, they cut one rig each in Colorado, Louisiana, New Mexico, and Utah.
[IO Technicals Weekly 2024/38] Iron Ore Falls Below Key Support Level Amid Weak Fundamentals
- SGX Iron Ore futures closed the week $1.38 lower, with wide trading range of $5.85/ton in a week filled with economic releases including FOMC and PBoC rate decisions.
- Momentum indicators are neutral; RSI at 37.70 signals potential upside, while the price remains below key moving averages, including the 9, 21, 50, 100, and 200-day SMAs.
- Prices broke below key volume profile support at $91.27 and may see a short-term rebound to $90/ton due to limited trading volume below this level.
[Earnings Preview] Schlumberger Set for Q3 Growth on Global Demand and Seasonal Boost
- Schlumberger’s Q3 2024 revenue is projected to increase by 12% YoY and EPS by 15.4%, driven by international growth, digital sales, and cost-efficiency programs.
- Management expects 2024 EBITDA margin to reach or exceed 25%, driven by stronger H2 performance led by seasonally higher year-end digital and product sales.
- Schlumberger announced a milestone in sustainable lithium production and secured significant contracts through its carbon capture and OneSubsea joint ventures.
AUAU: Provides Update on Eastside Project – MRE Q1/25
- Allegiant provided an update on its ongoing 5,000m 2024 drill program at Eastside.
- AUAU will look to update its mineral resource estimate at Eastside by Q1/25, noting that the most recent update was in July 2021, with much drilling being done since.
- We recently initiated coverage on Allegiant, find the report here.
Arrow Exploration Corp. (AIM: AXL): Another horizontal well with high flow rate
- The fourth horizontal well at Carrizales Notre (CNB HZ-5) has been put on production at a gross oil rate of 2.7 mbbl/d (1.35 mbbl/d net to Arrow) with a water cut of 11%.
- This flow rate compares favourably with CNB HZ-4 that was put on production at a gross oil rate of >2.5 mbbl/d (8% water cut).
- Overall gross oil production from the three other horizontal wells is ~5.62 mbbl/d (~2.8 mbbl/d net to Arrow) including 2.1 mbbl/d for CNB HZ-4, 1.9 mbbl/d for CNB HZ-3 and 1.6 mbbl/d for CNB HZ-1.
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