In today’s briefing:
- Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off
- Exxaro’s Strategic Moves: Potential Full Buyout of Jupiter Mines Following JV Acquisition in Manganese Sector
- [ETP 2025/24] WTI Rises on Trade Hopes, Geopolitics; Henry Hub Slips on Weak Near-Term Outlook
- MSA: Heavily Cash Flowing, Dividend Paying Gold Producer
- Lucror Analytics – Morning Views Asia
Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off
- Back on the 30th April 2025, Zijin Mining (2899 HK) said it planned to spin off its overseas gold mine assets on the Hong Kong exchange.
- The newly created unit, Zijin Gold International, owns/operates mines in South America, Central Asia, Africa and Oceania, including the Buritica project in Colombia, the nation’s largest gold mine.
- A Circular is now out concerning the spin-off, which is not subject to shareholder approval. Pegged to peers, Zijin appears fully valued.
Exxaro’s Strategic Moves: Potential Full Buyout of Jupiter Mines Following JV Acquisition in Manganese Sector
- Jupiter Mines’ valuation is implied at A$0.315/share, a 60% premium to current trading levels, following a JV sale.
- Exxaro Resources acquired a 20% stake in Jupiter Mines at A$0.315/share, indicating interest in further consolidation.
- The Tshipi Borwa mine, a Tier 1 asset, contributes ~6% to global manganese supply, primarily for steel production.
[ETP 2025/24] WTI Rises on Trade Hopes, Geopolitics; Henry Hub Slips on Weak Near-Term Outlook
- For the week ending 06/Jun, U.S. crude inventories fell by 3.6m barrels (vs. expectations of a 2.4m barrel decline). Meanwhile, gasoline and distillate stockpiles rose more than expected.
- The EIA reported a 109 Bcf storage build, while analysts forecasted a 108 Bcf increase. Storage levels are 5.4% above the five-year average but 8.6% below year-ago levels.
- Shell targets 12 MMT of new LNG capacity by 2030, while TotalEnergies partners with Mistral AI to enhance its low-carbon, multi-energy strategy using artificial intelligence.
MSA: Heavily Cash Flowing, Dividend Paying Gold Producer
- Mineros is focused on the production of gold across its two producing assets in Colombia and Nicaragua having produced 213Koz in 2024.
- MSA currently pays the highest dividend amongst its peers at 5.6% and has various growth initiatives in the works.
- Despite being one of the best performing gold producers amongst its peers (up 276% since January 2024), MSA is still undervalued, trading at just 3.8x 2025E cash flow of $129M.
Lucror Analytics – Morning Views Asia
- US treasury yields declined yesterday, led by the short end, given softer than expected CPI data and a solid auction for the 10Y notes.
- The UST curve bull-steepened, with the yield on the 2Y UST down 7 bps at 3.95%, while the yield on the 10Y UST fell 5 bps to 4.42%.
- Equities halted a three-day advance, albeit remaining near record-high levels.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
