Daily Brief Energy/Materials: Mysore Paper Mills, Weebit Nano Ltd, Regulus Resources, Spanish Mountain Gold, Exploits Discovery, JSW Steel Ltd, Evolution Petroleum, Crude Oil and more

• Non-Operational Entity in Financial Distress: Mysore Paper Mills (MSPM) has ceased all core manufacturing operations, with paper production halted in 2015 and its sugar division in 2016. The company is characterized by a prolonged history of substantial financial losses, negative margins, and a complete erosion of net worth, rendering it a financially unviable entity in its current state.
• Government-Led Revival Efforts via Privatization: The Government of Karnataka (GoK), the majority shareholder, has deemed a public sector revival unfeasible and is actively pursuing leasing the company’s assets and operations to a private entity. However, multiple tender attempts since 2017 have failed to attract bidders, highlighting significant challenges and perceived risks by potential investors.
• High Uncertainty Against a Favorable Industry Backdrop: The company’s future is entirely contingent on the success of the government’s leasing strategy, which faces high uncertainty. This contrasts with the positive outlook for the broader Indian paper industry, which is experiencing robust growth driven by demand in packaging and education. Any potential value in MSPM lies in its physical assets and the speculative possibility of a successful operational turnaround under a new private operator.

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• Weebit Nano is a pre-revenue semiconductor company developing a next-generation non-volatile memory (NVM) technology called Resistive RAM (ReRAM).
• The company’s primary business model is licensing its ReRAM intellectual property (IP) to semiconductor foundries and integrated device manufacturers (IDMs).
• Weebit’s ReRAM technology aims to be a successor to flash memory, offering significant improvements in performance, power consumption, and endurance, particularly for applications in IoT, AI, and automotive sectors.

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• Regulus 100% owns the AntaKori Copper-Gold Project in northern Peru, with a high-grade, low-strip, and at-surface resource of 8.0Blbs CuEq.
• The project neighbours Coimolache’s Tantahuatay Oxide Gold Mine which REG has a collaboration agreement to assess the potential combined development of the much larger Cu-Au sulphide system lying beneath the Oxide Gold Mine and across both properties.
• The management team and board, including CEO John Black, largely come from Antares Minerals, where they discovered the sizable Haquira East Cu-Mo deposit in southern Peru, which they eventually sold to First Quantum for $650M.

• What you need to know: • In September, gold rose 10.8% to approach $3,900/oz and silver surged 14.4% toward $46/oz, marking five straight months of gains.
• • Mining equities strongly outperformed, with GDX, GDXJ, SILJ, and COPX up 20.9%, 23.7%, 23.9%, and 20.1%, respectively, versus the S&P 500 (+3.4%) and TSX (+5.1%).
• • Sector momentum was reinforced by the Fed rate cut, record financing activity among juniors, and the announcement of the $53B Teck–Anglo American merger, the largest deal in over a decade.

• Q3/25 marked a particularly strong quarter for Atrium, as precious metal prices continued to rise rapidly, driving notable outperformance across our coverage.
• Our covered stocks increased 46% on average in Q3/25 and are up 227% over the past year, outperforming the TSX, which gained 12% during the quarter and 37% YoY, and TSXV, which gained 29% and 67%, respectively.
• This builds on the 27% increase from our coverage universe in Q2/25.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: JSW Steel
• UST yields fell yesterday, led by the front end and belly, as weaker than projected ADP employment data further bolstered Fed easing expectations. The UST curve bull steepened, with the yield on the 2Y UST down 7 bps to 3.54%, while that on the 10Y UST declined 5 bps to 4.10%.
• Equities climbed for the fourth day, with the market remaining upbeat despite the US government shutdown. The S&P 500 and Nasdaq rose 0.3% and 0.4% to 6,711 and 22,755, respectively.

• The SCOOP/STACK mineral and royalty acquisition added high-margin production and future development potential with zero incremental capex.
• Net production was ~420 Boe/d (54% natural gas, 15% oil, and 31% NGLs) as of the transaction’s effective date on May 1, 2025.
• Importantly, the only incremental lifting costs associated with the production are gathering and processing fees associated with some of the leases.

• Crude oil futures were sliding lower Thursday as benchmarks racked up a fourth consecutive retreat of the week, coming amid expectations of a further OPEC+ hike offsetting heightened geopolitical tensions.
• Front-month Dec25 ICE Brent futures were trading at $64.16/b (2035 BST) versus Wednesday’s settle of $65.35/b, while Nov25 NYMEX WTI was at $60.57/b against a previous close of $61.78/b.
• Briefings from OPEC+ delegates over the last few days have wiped out the previous week’s healthy gains, with the group now expected to bring back a second tranche of voluntary cuts at a quicker-than-expected pace.