Daily Brief Energy/Materials: Tata Steel Ltd, Iron Ore, NOV , Petroleo Brasileiro , Prima Marine PCL, AVZ Minerals, TRX Gold , Icon Energy and more

• Recent strategic announcements improve pellet security, downstream mix, and low-carbon readiness, strengthening Tata Steel’s long-term positioning.
• Balance sheet can fund near-term projects, but upstream expansions require careful sequencing amid non-linear cyclical earnings.
• Valuation remains balanced at ₹165–185/share, with Europe performance the key swing factor for re-rating.

• Iron ore’s rally appeared sentiment driven, as narrowing mill margins and easing blast furnace activity highlight softening fundamentals and fading demand support.
• Broader technical momentum is weakening as MACD turns bearish and prices retreat from Bollinger resistance, flagging rising downside risks ahead.
• The DCE-SGX spread’s position below key MAs and repeated lower Bollinger band tests signal weak momentum, leaving upside uncertain and the near-term bias tilted bearish.

• The latest development in NOV’s evolving strategic landscape emerged when Natura Resources acquired Shepherd Power—an NOV subsidiary—and simultaneously entered into a commercial partnership with NOV to accelerate molten salt small modular reactor (SMR) deployment.
• While Natura did not acquire NOV itself, the transaction marks the first time an advanced nuclear developer has strategically aligned with NOV’s manufacturing, engineering, and project delivery capabilities.
• This has sparked investor speculation about whether such collaboration could expand into deeper strategic interest over time.

• Petrobras, Brazil’s state-controlled oil giant, presented its financial performance for the second quarter of 2025, highlighting both its accomplishments and challenges.
• A key takeaway from the earnings discussion was the company’s notable increase in oil production, recording an average of 2.3 million barrels of oil per day, a significant rise from the previous quarter.
• The production even ramped up further to 2.47 million barrels per day in July 2025, demonstrating the success of its operational strategies and investment in production capabilities.

• Prima Marine PCL stands as a leading integrated marine logistics provider for the energy sector in Thailand and Southeast Asia, operating a diverse and modern fleet across five key segments.
• The company’s financial performance demonstrates consistent growth, supported by a strategic focus on securing long-term charter contracts, which currently account for approximately 70% of total revenues, ensuring stable and predictable cash flows.
• Future growth is anticipated from fleet expansion, with six new oil tankers expected in 2026, and strategic diversification into offshore support for activities like wind farm development, capitalizing on growing energy demand in the region.

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• AVZ Minerals‘ primary asset is the Manono Lithium and Tin Project in the Democratic Republic of Congo (DRC), considered one of the world’s largest and highest-grade undeveloped hard-rock lithium deposits.
• The company is currently embroiled in a critical legal dispute with the DRC government and state-owned mining company Cominière over the ownership and mining rights of the Manono Project, leading to the revocation of its mining permit and ongoing international arbitration.
• AVZ’s shares have been delisted from the ASX, and the company’s future is entirely dependent on a favorable outcome in the arbitration proceedings or a negotiated settlement, making it a high-risk, speculative investment proposition.

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• TRX Gold Corporation is a junior gold producer operating the Buckreef Gold Mine in Tanzania under a joint venture with the state mining development company.
• High gold prices helped deliver record results for the end of fiscal 2025.
• The Company announced plans to add additional processing capacity to boost its production growth profile and capture this price appreciation.

• Icon Energy is a pre-revenue exploration company singularly focused on commercializing its 100%-owned ATP 855 asset in Queensland’s Cooper Basin, which holds a significant conventional and unconventional gas resource.
• The company’s primary catalyst and risk is the final regulatory approval of its Production Lease application (PL-1144), which would enable the transition from explorer to producer and unlock the asset’s value.
• Financially, the company is in a precarious position with no revenue, ongoing losses, and a dependency on securing external funding or a farm-in partner to finance the development of ATP 855, making it a high-risk, high-reward investment proposition.

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