Daily Brief Energy/Materials: POSCO Holdings, Challenger Energy Group, Iron Ore, Medco Energi, SGX Rubber Future TSR20, Base Oil, Enerflex Ltd, Comstock , DuPont and more

• POSCO is shifting from cyclical steel to sustainable, high-margin materials and hydrogen technologies.
• Earnings recovery and RBM scale-up underpin a 15–35% re-rating potential by FY27.
• Strong asset base, improving margins, and carbon-neutral roadmap limit downside risk.

• Challenger Energy Group’s merger with Sintana Energy offers a 15% actionable spread, with easy hedging options via Sintana borrow.
• WonderFi Technologies’ acquisition by Robinhood awaits Canadian Investment Regulatory Organization consent, with a buyout expected in H2 2025.
• Falcon Oil & Gas asset sale to TBN involves a fluctuating spread of 30%-50%, with minimal risk of deal collapse.

• Iron ore futures slipped as China’s steel output fell for the fifth consecutive week, with weak demand and rising inventories weighing on sentiment.
• Managed money participants trimmed their net long positions across all futures and options expiries, signalling profit-taking and a more cautious market stance.
• The DCE-SGX spread is gaining momentum, with technical indicators hinting at a sustained near-term widening trend.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Medco Energi
• UST yields climbed 3-4 bps across the curve yesterday, amid heightened corporate supply after Alphabet Inc issued USD 25 bn of USD- and EUR-denominated bonds. The yield on the 2Y and 10Y UST rose 3 bps each to 3.61% and 4.11%, respectively.
• Equities climbed, supported by tech stocks after Amazon’s Cloud unit inked a USD 38 bn deal with OpenAI. The S&P 500 edged up 0.2% to 6,852, while the Nasdaq grew 0.5% to 23,835.

• Production slips 12.8% amid lacklustre smallholder involvement  
• Imports rebound MoM, exports edge up on steady China demand  
• Glove exports slip in value to RM 1.2 billion, down 7.7% from July  

• Asia’s base oils prices extend fall vs gasoil prices, with Group II heavy-grade differentials slipping to lowest since start of Q3 2024.
• Ongoing squeeze on base oils margins increases importance for refiners to maintain balanced-to-tight supplies to boost their leverage to adjust prices accordingly.
• Weaker margins and importance of balanced supplies boost incentive for refiners to adjust output accordingly.

Key points (machine generated)

• Enerflex derives 70% of its earnings from contracted leases and maintenance, with a strong position in a volatile sector.
• The company is currently undervalued at around 4x EBITDA and 7x free cash flow, with a fair value estimated at $13 per share.
• Analysts expect a positive re-rating of Enerflex shares as it beats estimates and shows business stability.

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.

• Comstock, Inc. (LODE) is a Nevada-based renewable and sustainable metals company with additional investments in renewable fuels, mineral properties, and real estate. 
• Its high-volume solar panel recycling technology diverts end-of-life solar panels from landfills and recycles 100% of the commodities that go into them like silver, aluminum, and other valuable and scarce resources. 
• LODE’s largest single investment is Bioleum Corp., which develops an Oklahoma-based project to convert waste streams and energy crops like woody biomass into ultra-low carbon fuels like sustainable aviation fuel (SAF).

• US base oils demand likely to weaken over coming weeks amid seasonal slowdown in requirements and expected rise in supply.
• US Group II domestic price-premium to export prices stay in narrow range at time of year when it typically widens.
• Steady domestic price-premium points to more balanced fundamentals, curbs pressure on any imminent adjustment in those domestic prices.

• On November 1, 2025, DuPont (NYSE: DD) completed the separation of its Electronics business as Qnity Electronics, Inc. (NYSE: Q), into a separate public company.
• Regular-Way trading commenced on November 3, 2025.DD gained 2.97%, while Q lost -1.02% on the first day of regular way trading.
• On an overall basis, DD (consolidated) gained 5.91% since the spin-off announcement on May 22, 2024, underperforming S&P 500 which gained 29.1% during the same period.