Daily Brief Energy/Materials: Zijin Gold, Almonty Industries, Sumitomo Metal Mining, Jindal Steel, Kumiai Chemical Industry Co and more

• There are 5 additions for the VanEck Gold Miners ETF/USA (GDX US) in December. Zijin Gold (2259 HK) is a surprise add (as are some of the others).
• Estimated one-way turnover is 15.2% and that leads to a round-trip trade of US$8.8bn. There are many stocks with multiple days of ADV to trade from passive trackers.
• The MarketVector Global Gold Miners Index has just passed its earlier highs, but a lot of the adds have broken out and are trading much higher than their prior highs.

• Almonty Industries (AII CN), Standard Lithium (SLI US) and Hubei Zhenhua Chemical Co Ltd (603067 CH) will be added to the VanEck Rare Earth/Strategic Me (REMX US) in December.
• The constituent changes, float changes and capping changes result in an estimated one-way turnover of 18.2% and in a round-trip trade of US$550m.
• There have been large creations in VanEck Rare Earth/Strategic Me (REMX US) as strategic metals and rare earths stocks have surged in price over the last few months.

• Earnings re-based higher: FY2025–27 EPS upgraded ~20%, driven by copper and gold prices; resource earnings dominate while smelting volatility remains largely accounting-driven.
• Valuation near fair value: At ~¥6,000, SMM trades around mid-cycle value; upside depends on sustained copper/gold strength rather than multiple expansion.
• Downside cushioned: Strong balance sheet and ~2× FCF dividend cover limit downside, with pullbacks offering better entry than chasing spot-driven rallies.

• Despite the broad-based weakness in Indian equity market, insider buying in November 2025 was strong and broad-based.
• We highlight large and small cap companies that experienced significant insider buying during November 2025, as reported on the stock exchanges.
• We also present key sectors which saw insider buying during the month along with names which have moved significantly above the insider buying price.

• Almonty Industries is poised for a significant transformation from a development-stage company to a major global tungsten producer with the impending commencement of operations at its large-scale, high-grade Sangdong mine in South Korea.
• The company is strategically positioned to benefit from the increasing geopolitical importance of tungsten and the desire of Western economies to secure supply chains for critical minerals outside of China.
• While the long-term outlook is promising, Almonty currently faces financial pressures from its development activities, reflected in its unprofitability and negative cash flow, and is subject to significant execution risk as it ramps up production at Sangdong.

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• FY10/25 saw a 5.8% YoY sales increase, but operating profit declined 6.9% YoY due to lower Agricultural Chemicals profits.
• Fine Chemicals Business achieved a 97.9% YoY profit rise, driven by strong demand for electronic materials.
• FY10/26 outlook projects a 5.0% YoY sales decline, with net income expected to rise 46.1% YoY.