Daily Brief Energy/Materials: Zijin Mining, ARKO Petroleum, Avanti Gold , Pembina Pipeline , ERO Copper , Copper, Crude Oil, Huaxin Cement , Carpenter Technology, CRH and more

• Since the last reshuffle (July 9), our Model Portfolio has appreciated 1.46%. MSCI Asia ex Japan index (MXASJ) has dropped 1.77%. AI infrastructure stocks primarily contributed to the portfolio drawdown.
• Focus on AI “picks and shovels” providers, industrials, defense, industrial metals and banks remain. We also like Indian automobiles. We replace Hyundai Engineering and Construction with HD Hyundai Heavy Industries.
• We are overweight on HK/China, Korea and India. We are underweight Taiwan but overweight Taiwan technology. We are Neutral ASEAN.

• APC has traded above its $18 IPO price for most of its first six months, reaching $21.72 before settling back toward $19. 
• Q2 revenue beat expectations, though EPS missed; management reaffirmed 2026 Adjusted EBITDA and cash-flow guidance. 
• The planned U.S. Petroleum Partners acquisition adds 400+ wholesale locations and reinforces APC’s growth-oriented strategy.

• AGC released initial Phase 1 drill results from two holes totalling ~764m of drilling, which are part of 2026’s broader 42,000m program.
• Results confirm mineralization extends below the current Inferred pit shell and remains open at depth.
• The Company expects a further two drill rigs to arrive on site in August allowing for the commencement of Phase 2 drilling.

• Pembina Pipeline Corporation reported second quarter 2026 results with adjusted EBITDA of $1.064 billion, marking a 5% increase over the same quarter in 2025.
• This growth was supported by a strong operational performance across its Pipelines and Facilities divisions, and higher marketing business results.
• However, these gains were partially offset by the impacts of a new toll structure and revenue sharing mechanism implemented for the Alliance Pipeline.

• Copper output held at 17,315 tonnes with Tucumã throughput up 27%; Xavantina gold recovered 170% QoQ, lifting operating cash flow 49% to $137.9 million.
• Deleveraging remains the story: net debt fell to $452.7 million (0.8x EBITDA), while copper production and cost guidance were reaffirmed for the full year.
• Shares are up >35% since our initiation in May (Ero Copper (ERO US): A 4.5x EV-EBITDA Pure Copper Play With Growth Is Rare), but still 6x EV-EBITDA.

• LME and SHFE inventories have plunged 42% and 84% from their peaks, respectively, while COMEX stocks hit 653 kt as traders front-load shipments ahead of potential US tariffs.
• COPX attracted USD 62 Mn of inflows across two trading sessions following a USD 20.2 Mn outflow, as the Fed’s decision to hold interest rates revived investor confidence.
• Glencore’s adjusted copper EBITDA is expected to accelerate by 62% in FY26, while a potential ASX listing could strengthen capital access and unlock fresh M&A opportunities.

• Given yesterday’s rally, oil market participants may believe, correctly in our view, that the Strait of Hormuz will be “closed” indefinitely
• In addition, however, some funds also believe, also possibly correctly, that President Trump will lose patience with “waiting it out” and launch major military strikes down the road.                    
• We have pulled our recommendation to buy NYMEX CL calendar spreads because the market now believes that the stalemate will last longer than anticipated.             

• Huaxin Cement is aggressively pursuing an overseas expansion strategy to counteract the slowing domestic Chinese market, with significant recent acquisitions in Africa and Southeast Asia.
• The company is diversifying its business beyond traditional cement and concrete into higher-growth areas like aggregates, environmental services (waste co-processing), and new building materials.
• While facing headwinds from China’s property downturn and intense domestic competition, Huaxin’s focus on international growth, operational efficiency, and sustainable practices positions it as a key consolidator in the global cement industry.

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• Carpenter Technology Corporation reported a fourth quarter and full fiscal year 2026 marked by record financial performance, driven by strong operational execution and growing demand in key end-use markets.
• The company achieved a quarterly operating income of $206.9 million, an 11% increase sequentially and 37% higher year-over-year, setting a new quarterly record.
• This was primarily supported by the Specialty Alloys Operations (SAO) segment, which delivered a notable adjusted operating margin of 37.8%, up from 35.6% in the prior quarter and 30.5% one year ago.

• CRH plc reported a robust second quarter for 2026, exhibiting growth across key financial metrics amid ongoing macroeconomic and geopolitical uncertainties.
• The company recorded total revenues of $10.8 billion, marking a 6% increase from the previous year, alongside adjusted EBITDA rising 7% to over $2.6 billion.
• Diluted earnings per share grew by 14%, benefiting partly from a $0.16 per share net gain on divestitures.