Daily Brief Energy/Materials: Taiyo Kagaku, Forge Resources, Fortescue Metals, Crude Oil, Iron Ore, Wheaton Precious Metals, Hang Seng Index, Ocean Power Technologies, Valeura Energy Inc and more

• Although Taiyo Kagaku is not a household name among consumers in Japan, it has a strong reputation in Japan and internationally among F&B companies for functional, health-enhancing ingredients.
• Three main reasons we like the stock include strong loyal customers in the F&B segment in Japan/internationally, solid growth of sales and profits, and attractive valuations. 
• Taiyo Kagaku currently has a SmartScore of 4.6 out of 5 which is among the top ranking stocks in the Japanese stock market. 

• Forge announced that while driving the decline at the La Estrella project, a coal seam was encountered measuring 0.5-1.0m in thickness.
• The Company has taken channel samples for lab analysis to assess the coal’s quality and market suitability.
• We recently initiated coverage on FRG, read the report here.

• A brief look at important company events and economic data releases next week.

• WTI crude prices are pressured by oversupply and weak sentiment, but received support late-week by a strong inventory draw and improved outlook for U.S.-EU trade talks. 
• U.S. natural gas prices dipped early due to high output and mild weather but recovered slightly on heat-driven demand, with ample storage limiting further upside.
• Oil and gas corporate updates showed mixed earnings and strategy shifts, with Halliburton guiding lower, BP appointing a new chairman, and SLB falling despite beating expectations.

• Iron ore futures surged on China’s massive hydropower push, but gains faded as property sector stress lingered.
• Investors are watching the upcoming Politburo meeting for potential action on curbing excess capacity in EV, solar, and lithium battery sectors to support struggling prices.
• Prices are holding firm above key moving averages, pointing to continued upward momentum, while the RSI hints at a potential price correction. 

Wheaton Precious Metals’ (WPM’s) Q225 financial results are scheduled for release on Thursday 7 August, after the market close in Toronto. Ahead of the release, we have updated our forecasts to reflect, in particular, an increase in production from Salobo from 58,500oz to 70,787oz in line with the volume of copper produced in Q2 (as per Vale’s production and sales report). On the basis of the difference between Vale’s Brazilian copper sales and its production (as a proxy for Salobo’s performance) we have also assumed only a small inventory build at Wheaton in Q2 relative to Q1. Including an upward adjustment to prices, these changes have resulted in a 21.7% increase to our Q225 adjusted EPS estimate and a 9.1% increase to our FY25 estimate. Note that our FY26 adjusted EPS estimate (below) is based on very conservative gold and silver prices of US$2,105/oz and US$24.33/oz, respectively. At prevailing metals prices, it rises to US$2.87/share, while its corresponding P/E ratio falls to 33.3x.

Wheaton Precious Metals’ (WPM’s) Q225 financial results are scheduled for release on Thursday 7 August, after the market close in Toronto. Ahead of the release, we have updated our forecasts to reflect, in particular, an increase in production from Salobo from 58,500oz to 70,787oz in line with the volume of copper produced in Q2 (as per Vale’s production and sales report). On the basis of the difference between Vale’s Brazilian copper sales and its production (as a proxy for Salobo’s performance) we have also assumed only a small inventory build at Wheaton in Q2 relative to Q1. Including an upward adjustment to prices, these changes have resulted in a 21.7% increase to our Q225 adjusted EPS estimate and a 9.1% increase to our FY25 estimate. Note that our FY26 adjusted EPS estimate (below) is based on very conservative gold and silver prices of US$2,105/oz and US$24.33/oz, respectively. At prevailing metals prices, it rises to US$2.87/share, while its corresponding P/E ratio falls to 33.3x.

• Materials and Energy led the week, with single stocks in both sectors posting standout gains.
• Breadth was broad-based, and average returns among winners were unusually strong.
• Single stock option volumes surged, with pronounced Call activity mid-week.

• OPTT hosted a FY25 briefing for analysts and investors today. OPTT is a provider of intelligent solutions for gathering information and delivering payloads in marine environments.
• The company’s offerings include several product lines supporting go- to-market strategies, featuring autonomous vehicles and persistent buoys capable of generating their own power.
• These assets are deployed at sea to collect data for a range of customers, with a strong focus on the defense and security sector, as well as offshore energy producers and the research and scientific communities.

• • Valeura is acquiring from PTTEP 40% WI in Blocks G1/65 and G3/65 with a combined area of 20,134 km2 and bordering some of the largest gas fields in Thailand (Erawan and Bongkot).
• The blocks have multiple gas discoveries that could be developed shortly as tie backs to existing infrastructure—positioning Valeura to potentially book its first gas reserves in the near term.
• Both licences offer oil potential adjacent to Valeura’s current production.