In today’s briefing:
- Vedanta: The Aluminium Transformation — Zinc Cash + Silver Power + O&G Optionality
- The Beat Ideas: Sunshield Chemicals – Niche Chemistry Leadership Anchored by Promoter Expertise
- Thai Oil – Tear Sheet – Lucror Analytics
- Indian Rubber Sector Sees Production Gains, Cooling Imports, Steady Demand
- APM: Q3 Production; Increasing TP on Higher Silver Prices
- Sintana Energy Inc. (TSX-V: SEI): Widening high impact exploration footprint with deeper relationship with Chevron
- CUU: Further Updates on Schaft Creek & Other Developments
- Oil futures: Crude off lows, surplus concerns remain
Vedanta: The Aluminium Transformation — Zinc Cash + Silver Power + O&G Optionality
- Growth: EBITDA mix improves as aluminium integration + captive coal lift margins, silver ramps, and zinc stays cash generative; deleveraging begins FY27 as cash flows strengthen.
- Commodity Play: Positive leverage to aluminium, zinc, and silver prices; cost base falling, not rising — rare margin tailwind in a metals cycle.
- Valuation + Yield: Trades cheap vs peers; rerating optionality + double-digit dividend yield provides downside protection with asymmetric upside.
The Beat Ideas: Sunshield Chemicals – Niche Chemistry Leadership Anchored by Promoter Expertise
- Sunshield Chemicals is expanding its capacity to capitalise on its unique position as the sole Indian manufacturer of key niche chemicals like THEIC and a rare global producer of HQEE.
- The capex and product focus underscore a strategic shift towards higher-margin, low-competition specialty segments, which is vital for sustained earnings growth and margin protection against raw material volatility.
- A look at the company’s product portfolio and execution on capacity expansion reveals a potentially de-risked growth trajectory, meriting attention from investors seeking exposure to high-entry-barrier specialty chemical plays.
Thai Oil – Tear Sheet – Lucror Analytics
- We view Thai Oil Public Company Limited (TOP) as “Low Risk” on the LARA scale.
- This is primarily driven by the company’s strategic importance to state-owned PTT Public Company Limited, due to its position as the group’s main oil refining vehicle.
- TOP benefits from its close links with PTT, as TOP obtains feedstock from and sells refined products to its parent.
Indian Rubber Sector Sees Production Gains, Cooling Imports, Steady Demand
- India’s rubber output in April–July up 4.4% year-on-year.
- Imports fall 7.4% as stocks deplete by 79,000 tons in 4 months
- Domestic auto sector weakness tempers consumption
APM: Q3 Production; Increasing TP on Higher Silver Prices
- APM reported its Q3 production results, delivering 25.6Koz AuEq (+6% QoQ), with San Bartolome outperforming estimates while Golden Queen faced operational challenges.
- With gold and silver prices surging, APM is well-positioned for strong H2 cash flow despite tracking toward the lower end of annual guidance, enabling flexibility for M&A, dividends, or buybacks.
- We are increasing our commodity price assumptions and rolling over our valuation year to 2026, resulting in an increased target price.
Sintana Energy Inc. (TSX-V: SEI): Widening high impact exploration footprint with deeper relationship with Chevron
- Sintana is acquiring Challenger Energy in an all-share transaction under which Challenger shareholders will receive 0.4705 new Sintana shares for each Challenger share held.
- Challenger shareholders will hold ~25% of the combined entity on completion.
- Challenger holds interests in two exploration licences, offshore Uruguay.
CUU: Further Updates on Schaft Creek & Other Developments
- Copper Fox announced further updates on recent activities at the Schaft Creek copper-gold-molybdenum-silver project in BC.
- Five diamond drill holes were completed in the Liard zone, four of which intersected variable intervals of copper mineralization.
- Other activities including field work and geophysical surveys were completed throughout the season.
Oil futures: Crude off lows, surplus concerns remain
- Crude oil futures were slightly lower in late-day Wednesday trading after benchmarks settled at fresh five-month lows in the previous session, amid pressures from a growing oil surplus and global trade jitters.
- Front-month Dec25 ICE Brent futures were trading at $62.21/b (2012 BST) versus Tuesday’s settle of $62.39/b, while Nov25 NYMEX WTI was at $58.55/b against a previous close of $58.70/b.
- Prices plummeted on Tuesday, wiping out early week gains, after the IEA trimmed its global oil demand growth forecast while upping its supply projection, in turn pushing markets into a deeper surplus this year and next.
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