In today’s briefing:
- Spartan Resources (SPR AU): Scheme Vote on 11 July
- CMOC Group Limited (HKEX: 3993) – High-Growth, Low-Cost Producer Positioned for Re-Rating
- Spartan Resources (SPR AU): 11th July Vote On Ramelius’ Offer
- Gujarat Fluorochemicals Limited: Robust Core Business Performance and EV Ramp-Up
- Time Technoplast Limited: Value-Added Products and Composites Drive Strong Performance
- Northern Dynasty Minerals: A Trump-Era on America’s Critical Mineral Independence
- Sidara/Wood: Energy Engineering in Limbo, Value Beckons Amid Governance Fog
- What’s News in Amsterdam – 2 June (Wolters Kluwer | Vopak | ESG)
- Indo Tambangraya Megah (ITMG IJ) Q1 FY25: Solid Despite The Coal Price Drop
- Sri Lanka Rubber Product Exports Skid Amid Concerns Over US Tariffs
Spartan Resources (SPR AU): Scheme Vote on 11 July
- The Spartan Resources (SPR AU) IE considers Ramelius Resources (RMS AU)’s offer (A$0.25 cash per share + 0.6957 RMS shares per SPR share) fair and reasonable.
- The offer is conditional on SPR shareholder approval. The vote remains low-risk and is aided by irrevocables (16.87% of outstanding shares).
- This is a done deal. At the last close and for a 31 July payment, the gross/annualised spread is 0.8%/5.0%.
CMOC Group Limited (HKEX: 3993) – High-Growth, Low-Cost Producer Positioned for Re-Rating
- EBITDA more than doubled (25% CAGR) over 3 years, with copper and cobalt output up ~3.5x and ~5.7x on ramp-up of TFM and KFM.
- $4.3 bn invested in DRC; low-cost leaching drives margins; gold entry via Cangrejos adds diversification and long-term optionality.
- Strong cash flows, growth pipeline, and ~4x EV/EBITDA valuation position CMOC for sustained upside amid rising energy transition metal demand.
Spartan Resources (SPR AU): 11th July Vote On Ramelius’ Offer
- On the 17th March, Spartan (SPR AU) agreed to merge with Ramelius (RMS AU). The cash/scrip merger combined operations around the Mount Magnet and Dalgaranga region in Western Australia.
- The implied price of A$1.78/share was a 27.5% premium to 30-day VWAP. The deal arrived after Spartan was outbid for Karora (KRR CN), and Spartan rebuffed Westgold (WGX AU)‘s approach.
- The Scheme Booklet is now out, with a Scheme Meeting on the 11th July, and expected implementation on or before the 31st July. The IE (BDO) says “fair & reasonable“.
Gujarat Fluorochemicals Limited: Robust Core Business Performance and EV Ramp-Up
- Gujarat Fluorochemicals (FLUOROCH IN) reported strong consolidated Q4FY25 financials, driven by fluoropolymers, with significant PAT growth and reduced net debt.
- This indicates sustained momentum in core fluoropolymers, potential for significant revenue contribution from the new EV business in the coming years, and an improved balance sheet supporting future investments.
- Capex of INR 1,600 crs in FY26 funded via external accruals will expand EV and fluoropolymer capacities, enabling long-term growth across energy, mobility, and specialty segments.
Time Technoplast Limited: Value-Added Products and Composites Drive Strong Performance
- Strong FY25 financial performance driven by volume growth outpacing revenue, significant PAT increase, and improved margins, particularly from higher-growth value-added and composite product segments.
- The strategic focus on higher-margin value-added products, especially composites, is enhancing profitability (margins, ROCE) and positioning the company for future growth in key sectors like clean energy and sustainability.
- The consistent execution on strategic targets (ROCE, debt reduction, composite growth) strengthens conviction in the management’s ability to deliver and capitalize on emerging opportunities, despite some project timeline shifts.
Sidara/Wood: Energy Engineering in Limbo, Value Beckons Amid Governance Fog
- Sidara’s persistence through multiple PUSU extensions and deep due diligence implies strong strategic interest despite Wood’s governance turbulence and suspended trading.
- Wood’s record $2B+ contract wins in Asia Pacific show the business remains commercially viable and strategically relevant in the energy infrastructure value chain.
- Free cash flow expected to turn meaningfully positive in 2026, supporting a standalone recovery case if no deal emerges—valuation suggests >2x upside potential.
What’s News in Amsterdam – 2 June (Wolters Kluwer | Vopak | ESG)
- In today’s edition: • Wolters Kluwer | acquires Australian provider of online courseware solutions for nursing schools • Vopak | AVTL successfully completed IPO • ESG | Dutch corporations and central government scaling back on environmental targets
Indo Tambangraya Megah (ITMG IJ) Q1 FY25: Solid Despite The Coal Price Drop
- Indo Tambangraya Megah (ITMG IJ) reported a solid Q1 FY25 despite the drop in coal prices. Revenues/profits were -1%/+8%YoY because of higher volumes and lower costs.
- After accounting for the 150 million USD dividend liability (which was already paid out in May), net cash is>850 million USD (around 54% of market capitalization).
- With earnings likely to be between 250-300 million USD in FY25, the stock trades at 5.3- 6.25x FY25 PE and 12.5% dividend yield.
Sri Lanka Rubber Product Exports Skid Amid Concerns Over US Tariffs
- First quarter tire and tube exports fall by around 24% YoY
- SLAMERP asks Govt to talk tariff disparity with US
- CEAT’s share in OE tire market tops 90%
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