Daily Brief Energy/Materials: Mitsui Mining & Smelting Co, Rio Tinto , Future Metals NL, Kinross Gold Corp, Martin Marietta Materials, Ovintiv , Pan American Silver, Sailfish Royalty , Axalta Coating Systems, SolarBank and more

• FY2025 operating profit sharply upgraded; earnings base rebased higher across FY2026–28.
• Engineered Materials accelerating with VSP™ and FaradFlex® capacity expansions; ~25–30% OP CAGR implied.
• Metals more resilient than expected; ¥50 bn buyback supports valuation despite recent re-rating.

• Simandou’s planned 120 Mt annual output could supply about 6% of global seaborne ore by 2030, pressuring Australia and Brazil and shifting premium-grade pricing.
• Despite Guinea’s push to diversify buyers, roughly three-quarters of Simandou’s ownership ties back to China, making most tonnage effectively committed to Chinese mills.
• Weak Chinese steel margins and a 12% YoY drop in October output limit near-term uptake, but long-term decarbonisation trends support stronger demand for high-grade feedstock.

• Future Metals NL is an exploration-stage company focused on its 100% owned Panton PGM-Nickel Project in Western Australia, which is considered the highest-grade PGM deposit in Australia.
• The Panton project has a significant JORC Mineral Resource Estimate of 4.5 million ounces of PGM and 185,000 tonnes of nickel, positioning it as a globally significant PGM resource outside of the primary supply jurisdictions of Russia and South Africa.
• While the project shows robust economics in a December 2023 Scoping Study, the company is currently pre-revenue and faces the typical risks of an exploration company, including financing, development, and commodity price risks.

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

• Kinross Gold Corporation’s latest financial performance shows a blend of optimism and caution for investors.
• The company reported a strong third quarter, indicating an efficient operational execution across its global mining assets.
• Production was in line with expectations at approximately 504,000 ounces at a cost of sales of $1,145 per ounce.

• Martin Marietta Materials reported an impressive third quarter for 2025, marked by record performance across both aggregates and specialties, emphasizing the enduring strength of its business model and strategic focus.
• Aggregates revenues increased by 17% ($1.5 billion), with gross margins improving to 36%.
• The Specialties business also set records, achieving a 60% revenue increase to $131 million.

• Ovintiv’s recent quarterly earnings call provides a robust overview of the company’s strategic initiatives, financial performance, and future outlook as it continues to solidify its position as a leading North American independent oil and gas exploration and production company.
• From the information available, several key themes emerge, showcasing both strengths and areas requiring caution.
• Firstly, Ovintiv’s acquisition of NuVista Energy presents a significant strategic move.

Pan American Silver’s Q325 results saw the initial 27-day contribution from the recently acquired 44% interest in the Juanicipio project, which boosted its attributable silver production by c 10% and lowered the silver segment all-in sustaining cost (AISC) to an impressive US$15.4/oz. EBITDA adjusted for equity investment in the project was up 51% y-o-y and 11% q-o-q. We have upgraded our estimates on higher commodity prices and Juanicipio, raising our discounted cash flow (DCF)-based valuation of PAAS from US$38.0/share to US$43.5/share. The company is also evaluating a two-stage development approach for Skarn to maximise the value of the combined deposit, which, in our view, is not yet full priced in by the market.

• Sailfish Royalty reported Q3 financial results, including revenue of $0.9M (vs. our estimate of $0.7M) and adjusted EBITDA of $0.4M (vs. our estimate of $0.2M).
• Spring Valley continues to progress with Wheaton Precious Metals entering into a $670M stream on the project.
• This places a premium valuation onto FISH’s Spring Valley royalties compared to our model.

• In today’s edition: • ABN Amro | announced further reduction of its flexible workforce • AkzoNobel | Cevian pledges support for AkzoNobel/Axalta merger • InPost | enters cross-border deal with Austrian Post for business customers • Unilever | said to be exploring the sale of three UK heritage brands • Corbion | targets adjusted EBITDA of approx. EUR 300m by 2028 • bpostgroup | renews contract with Amazon for 5 years

• PowerBank reported first-quarter results that exceeded our expectations on the top and bottom line.
• Quarterly revenues will remain uneven as the company transitions to become an independent power producer over the coming years.
• Near-term demand should remain strong in the US solar market ahead of the expiration of the solar investment tax credit, but the outlook is less certain beyond 2026.