In today’s briefing:
- SAIL: Leaner, Stronger, Poised for Recovery — Margins to Rebound in H2
- Champion Iron (CIA AU) Vs. Stanmore (SMR AU): Statistical Arbitrage Targeting 9% Upside
- Oil futures: Crude moves slightly up after US-China truce, OPEC+ eyed
- Pulsar Helium Inc. (TSX-V: PLSR): High Pressure at Jetstream #3
SAIL: Leaner, Stronger, Poised for Recovery — Margins to Rebound in H2
- Steady operations despite price softness; volumes up 8% YoY, debt down ₹3,400 Cr, margins stable around 10%.
- Capex on track; IISCO ₹33,000 Cr expansion progressing, funded via internal accruals and moderate leverage.
- Valuation reasonable; trades at ~7× EV/EBITDA and ~US$560/t EV/Ton with Positive Bias on margin recovery and balance-sheet strength.
Champion Iron (CIA AU) Vs. Stanmore (SMR AU): Statistical Arbitrage Targeting 9% Upside
- Context: TheStanmore Resources (SMR AU) vs. Champion Iron (CIA AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Stanmore Resources (SMR AU) and short Champion Iron (CIA AU) targets a 9% return.
- 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.
Oil futures: Crude moves slightly up after US-China truce, OPEC+ eyed
- Crude futures moved higher in late-Friday trading after this week’s US-China talks were met with a muted response from oil markets, while investors continued to monitor Russian sanctions and the likely outcome of this weekend’s OPEC+ meeting.
- Jan25 ICE Brent futures were trading at $65.07/b (2020 BST) versus Thursday’s settle of $64.37/b, while Dec25 NYMEX WTI was at $60.87/b against a previous close of $60.57/b.
- The ‘truce’ between Beijing and Washington was seen as enough to keep global trade ticking over, but in the absence of a long-term solution, analysts said markets are likely to be kept on edge.
Pulsar Helium Inc. (TSX-V: PLSR): High Pressure at Jetstream #3
- Jetstream #3 has intersected two gas-bearing intervals at ~523 meters and 621 meters depth, with bottom-hole pressure estimated at ~960 psi at 661 meters.
- For comparison, Jetstream #1 and #2 recorded bottom-hole pressures of just 185–205 psi.
- Gas bubbling was observed in the drilling mud returns at surface during pipe connections, indicating active gas influx from the formation during drilling.
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