Daily Brief Energy/Materials: Newmont Mining, Korea Zinc, Jindal Steel, IGO Ltd, Mec Co Ltd, Pulsar Helium, AdvanSix , SGX Rubber Future TSR20, CNMC Goldmine Holdings, DSM-Firmenich and more

• The VanEck Gold Miners ETF/USA (GDX US) will change benchmark from the NYSE Arca Gold Miners Index to the MarketVector Global Gold Miners Index at the close on 19 September.
• The differences in the constituents between the two indices should result in 8 adds and 25 deletes. Estimated one-way turnover is 22.9% resulting in a round-trip trade of US$10.2bn.
• The forecast adds have underperformed the forecast deletes since the last Insight that highlighted the big valuation gap that had opened up since the announcement of the benchmark switch.

• Korea Zinc (010130 KS) is the world’s largest merchant zinc smelter, with growing exposure to high-margin rare metals (Sb/In/Bi).
• Management is executing the “Troika Drive” strategy—expanding copper and nickel sulfate capacity while scaling strategic minerals and recycling.
• Stock trades at ~5x 2027E earnings and ~4.7x EV/EBITDA, a clear discount to peers, key risks remain rare metal price volatility, zinc TC/RC recovery timing

• This is the third report in our series analysing the state and outlook for Indian steel majors in their ambition to expand capacity while meeting decarbonisation goals.
• Following our reports on JSW Steel and Tata Steel, this edition focuses on Jindal Steel.
• Jindal Steel has set a net zero emissions target for 2047, 23 years ahead of India’s national goal.

• Context: The IGO (IGO AU) vs. Iluka (ILU AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long IGO (IGO AU) and short Iluka Resources (ILU AU) targets a 12% return to the one standard deviation level.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• While MEC’s (4971 JP) FY25 (Dec year-end) 1H sales fell short of guidance by 2.2% to ¥9,387mil (+5.7% YoY), OP improved +3.3% YoY to ¥2,440mil, coming in 8.5% above the firm’s guidance of ¥2,250mil.
• This was primarily due to less than expected SG&A spending – something the firm had flagged in an earlier release.
• Net profit [NP] was revised from ¥1,450mil (-23.2% YoY) to ¥1,893mil (+0.2% YoY), thanks to the receipt of a subsidy from the Ministry of Economy, Trade and Industry [METI] specifically for smaller sized companies to support growth investment.

• Jetstream #1 recorded a peak flow rate exceeding 1.3 mmcf/d of raw gas during a compression-assisted test, with no formation water encountered.
• This represents a ~2.5-fold increase over the flow rate achieved without compression, and is approximately 60–65% higher than the rate recorded during the April 2024 test under comparable conditions.
• Jetstream #1 delivered a net helium peak flow rate of ~0.19 mmcf/d—among the highest reported by junior helium E&Ps in North America.

Key points (machine generated)

• Advansix is the lowest-cost producer of nylon and caprolactam, improving mid-cycle EBITDA from $200 million pre-COVID to $250-300 million.
• The company’s strong vertical integration and cost advantages create a durable competitive moat, enabling profitability during downturns.
• With a current enterprise value of $850 million and a valuation of $39-48 per share, Advansix presents potential for attractive investor returns.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

•  U.S. tariffs and low-cost Asian imports reshape Brazil’s tire industry
• ADD on Chinese passenger tires renewed to shield local producers
• Michelin to shut down its Guarulhos plant in Sao Paulo by Dec 2025

• CNMC delivered a stellar financial performance in 1HFY25.
• The Group’s 1HFY25 net profit surged 251.4% YoY to US$19.4 million, exceeding FY24 full year net profit of US$12.2 million.
• 1HFY25 revenue increased 78.0% YoY to US$52.8 million, the highest in any half-year period since CNMC’s inception.

Key points (machine generated)

• DSM-Firmenich was formed through a €20 billion merger between DSM and Firmenich, combining expertise in nutrition, health, and fragrances.
• Concerns arose about the merger’s synergies due to minimal overlap between the companies and skepticism about achieving targeted revenue and EBITDA synergies.
• The merger coincided with a downturn in DSM’s markets, leading to falling vitamin prices, but it also presents a unique opportunity for the new entity.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.