Daily Brief Energy/Materials: Miwon Specialty Chemical, Anglo American Platinum , Natural Gas, Copper, Vermilion Energy , Solaris Resources , Iron Ore, Cemex SAB de CV, Gold, ChampionX and more

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
• In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2025.
• We expect six ADDs and six DELs for the KOSPI 200 index during the June 2025 index rebal event based on the latest available data.

• JSE indices are due for rebalancing in the closing auction on Thursday the 20th of March (due to the public holiday on the 21st of March).
• The current rankings suggest that AMS may enter the Top 40, with GRT falling out.
• AMS’s net market cap is 8.5% above SSW, suggesting that entry into the Top 40 at this point is possible.

• Debate surrounding potential increase in Russian pipeline gas to Europe, with uncertainty of timing and magnitude of flows
• Russia, Ukraine, Europe, and the US all have vested interests in potential negotiations for increased pipeline gas flows
• Impact on European natural gas balance and global gas balance if increased Russian pipeline flows were to manifest, with current base case price forecast for TTF market in 2025 and 2026 without embedding increase in Russian natural gas flows

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• The outlook for copper in the near term is positive, but the market interest in copper may mean higher prices
• Investing in copper may be expensive due to high demand and M&A activity in the sector
• Finding a pure play copper company of significant scale on the ASX may be challenging, with considerations of China’s impact on copper demand and production levels in mind.

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• VET is undervalued, trading at a price target of C$26.00/share with a 20% yield on 2025E levered free cash flow
• The company plans to grow production and sustain cash flow for another decade, with a strong balance sheet and attractive reinvestment opportunities
• VET has exposure to European gas pricing, high netbacks, and slow decline rates, with management committed to returning 50% of free cash flow to shareholders through dividends and share buybacks

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• On Sunday 9th of February, the people of Ecuador headed to the polls to elect a new president. The first round was narrowly won by incumbent Noboa.
• A run-off between Noboa and Gonzalez is planned for April 13th. A victory for either candidate is bullish Ecuador mining companies as both have a pro-mining stance.
• Solaris Resources has been often targeted by anti-mining protestors in the past but a new stable government and a new Solaris CEO could catapult stock higher.

• SGX Iron Ore Futures rose by $2.25/ton, closing at $107.30/ton on Feb 7, after trading within a $5.50/ton range, the widest in recent weeks.
• Strong demand from steel mills, a weaker U.S. dollar (-0.4%), and supply risks from Rio Tinto port clearances drove iron ore prices higher.
• Prices trade above key moving averages, with RSI nearing the overbought zone (65.08), suggesting a potential correction in line with historical post-CNY trends.

• We maintain our Market Perform recommendation on Cemex. Current spreads do not offer an attractive entry point, particularly given the potential risk of U.S. tariffs on Mexican imports.
• We would keep the name on our watchlist for potential investment should this risk of U.S. tariffs subside.
• Within Cemex’s capital structure, we prefer the CEMEX (BBB-/BBB-) 5.20% 2030 notes, which trade wider than the Mexican sovereign, the EM BBB index, and comparable peers.

• Gold Anomaly As Warren Pies wrote in a post last week, the current performance of Gold is really an anomaly, both plotted against TIPS and the USD-Index.
• This anomaly once again highlights the importance of thinking of gold as a liquidity hedge – it is not primarily an inflation hedge or always highly correlated with the USD or inflation expectations.
• Warren wrote that 2024 (and also currently) is the fifth calendar year with positive 10y TIPS yields and positive gold returns (2005, 2006, 2008, 2023).

• ChampionX Corporation’s fourth quarter and full-year 2023 financial results demonstrate robust operational performance coupled with strategic capital allocation.
• The company successfully capitalized on its well-diversified portfolio, achieving significant growth in key financial metrics post its merger in 2020.
• Highlighting the positives, ChampionX recorded a 25% growth in adjusted EBITDA and expanded its adjusted EBITDA margin by 430 basis points, showcasing strong earnings momentum.