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Chandra Asri receives $750 million in funding from KKR for the purchase of Exxon's Singapore petrol stations
Chandra Asri Pacific, based in Indonesia, announced on Monday that it had secured a bespoke financing package of $750 million from investment firm KKR for its purchase of ExxonMobil’s Esso retail fuel station network. The Indonesian conglomerate announced late October that it would retain the Esso brand, continue to source fuel from ExxonMobil and integrate its existing workforce. Chandra Asri has not disclosed financial details about the transaction until now. The deal includes almost 60 fuel stations and associated supply agreements. KKR Capital Markets will arrange the financing solution, which is anchored on KKR’s private credit and Insurance platforms. SJ Lim (Managing Director and Head of Asia Private Credit at KKR) said: "This transaction aligns to our focus on tailoring capital solutions to leading businesses across Asia Pacific and we look forward supporting Chandra Asri’s continued growth, as it strengthens downstream energy and its retail presence in Singapore." Chandra Asri shares were up by 1.1% to 7,075 Rupiah. The company's market capitalization is $36.22 billion, and the stock has lost roughly 6% this year.
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Stocks on edge as Nvidia's earnings test looms
Asia's stock market struck a cautious note on Monday, as traders awaited a week full of corporate earnings. They also awaited U.S. catch-up data. The focus was on interest rate expectations and the fate of the artificial intelligence rally. Market expectations of a U.S. interest rate cut in December have fallen from 60% to 40% a week earlier, and this has put pressure on the stock market. S&P futures rose 0.3% in the early trading. Nikkei remained flat but retail and tourism stocks plunged after China warned its citizens not to visit Japan amid a growing diplomatic dispute. The shares of cosmetics maker Shiseido and department store operator Isetan Mitsukoshi have fallen by around 10%. The Australian stock market hit a 4-month low after a 0.7% decline for BHP following the British high court's ruling that it was responsible for a dam failure in Brazil. Wall Street indexes rebounded from a steep selling off on Friday, resulting in a mixed closing. The S&P 500 saw a slight drop and the Nasdaq saw a modest gain. The yields on ten-year U.S. Treasury bonds rose in Tokyo, holding at 4.156%. Jobs, Delay This week, the headline U.S. release will be the delayed September jobs report on Thursday. Private surveys have already indicated a slowdown in the labour market, so these figures are likely to be outdated. The Federal Reserve will be making 19 public appearances this week. Their interpretation of the data is also going to be scrutinised. On Friday, Kansas City Federal Reserve president Jeffrey Schmid and Dallas Federal Reserve president Lorie Logan were hawkish in their outlook and questioned the need for a rate cut next month. There is an expectation that a weaker job market and higher inflation will equalize risks. Bob Savage is the head of BNY's markets macro strategy. He said that neither are good for risk as stagflation has returned to the language. Data from Asia revealed that Japan's economy shrank for the first quarter in six due to tariffs imposed by the United States. The Nikkei reported on the weekend that Japan was considering spending approximately 17 trillion yen (110 billion dollars) for Prime Minister Takaichi’s first stimulus package. This highlights her focus of expansionary fiscal policies. The yen was held at 154.54 to the dollar, and markets were on high alert. Meanwhile, the bond market fell and 10-year yields reached their highest level since 2008. Analysts see flight risks if the faith of investors in fiscal discipline is shaken. This was evident in Britain last weekend when stocks, bonds, and sterling fell on reports that Finance Minister Rachel Reeves would back away from tax increases. NVIDIA EARNINGS Home Depot, Target and Walmart report their earnings this week in the U.S. All eyes are on Nvidia, as the market response will be a test for the recent rally. If you don't get the growth I believe the market expects around Nvidia, or the positive comments that we're likely to receive from Nvidia moving forward, I'm afraid you're going see a bigger dent in those types of trades," Orton stated. Nvidia's shares have increased by about 1,000% in value since the launch ChatGPT, which took place in November 2022. Nvidia's market value surpassed $5 trillion last month after a gain of over 40% year-to date. The dollar was slightly higher in other foreign exchange markets, with the euro holding steady at $1.1607, and the major currencies creeping up. Gold lost ground on Friday, slipping to $4,084 per ounce. Brent crude futures fell 1% in Asia morning to $63.78. Bitcoin, which in recent weeks has acted as a barometer for liquidity and sentiment on technology stocks was suffering its biggest weekly drop since March. It had lost more than 10% the previous week. It was trading at $94,717. Reporting and editing by Jamie Freed in Singapore.
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Australia rejects co-hosting the climate summit with Turkey
Anthony Albanese, Australia's Prime Minister, announced on Monday that Australia will not co-host COP31 with Turkey due to the ongoing stalemate in relations between the two nations. Turkish diplomatic sources said on Sunday that Turkey had proposed to jointly lead next year's U.N. Climate Summit with Australia, and that the discussions regarding the hosting standoff remained unresolved. Albanese told a Melbourne media briefing that co-hosting was not allowed under the United Nations Framework Convention on Climate Change. "So, that's not an alternative and people know that it isn't an option. That is why it was ruled out." Both Australia and Turkey submitted bids to host COP31 in 2022 and neither has withdrawn their bid, resulting in an attention-sucking situation Impasse The COP30, which is currently being held in Belem (Brazil), must overcome these challenges. Conference of the Parties (COP) is the main global forum for climate action. Over the years, it has evolved from diplomatic gatherings to vast trade shows that host countries can use to promote their economic prospects. The host is important because they set up the agenda and are the ones who lead the diplomatic efforts to achieve global agreements. This month, Albanese In an effort to resolve the dispute, Erdogan has spoken to the Turkish president Tayyip Erdoan in order to push for hosting the summit of Pacific Island Nations for the first-time. The Pacific Islands Forum is a regional diplomatic bloc made up of 18 countries that supports Australia's bid. The rising sea levels are a threat to several Pacific island nations.
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Syrah Resources in Australia and Tesla will further extend the deadline for a graphite supply agreement
The Australian miner Syrah said Monday it had reached an agreement with Tesla to extend a deadline for addressing alleged non-compliance of their graphite contract, the second in two months. Elon Musk's automaker, Tesla, issued a default notification in July because Syrah had allegedly failed deliver active anode samples that were conforming from its Louisiana facility processing Tesla's batteries. Syrah stated that the original deadline of September 16, which was originally extended to November 15, has been further pushed back to January 16, 2020. The company stated that "Syrah has not accepted it is in breach of the offtake contract, but the parties have extended to 16 January 2026 the cure date." The 2021 contract between Syrah and Tesla called for the company to provide 8,000 metric tonnes of graphite materials over a period of four years from its Vidalia facility in Louisiana, U.S.A. This facility is the only large-scale, vertically integrated anode material manufacturer outside of China. It helps reduce U.S. dependency on Chinese supplies, which dominate the market. Syrah stated that under the agreement it signed, Tesla may terminate the agreement if the final qualification of active anode materials at the plant is not completed by February 9, 2026. Tesla didn't immediately respond to our request for a comment. Syrah announced that a subsidiary received $8.5m under a loan of $150m from the United States International Development Finance Corporation. The money was used to support its Balama graphite operation in Mozambique, which had been affected by nationwide protests. (Reporting and editing by Jamie Freed in Bengaluru, Nikita Maria Jio from Bengaluru)
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Jara, a leftist Chilean, narrowly wins the first round of presidential elections against Kast.
Early results show that the far-right Jose Antonio Kast is close behind Jeannette Jara, the candidate of the governing coalition in Chile, who has 26.2%. This early result shows the strength of the conservative opposition. Kast had 24.9% with about 15% of the votes counted. Jara would be the first candidate of the Communist Party in the country to make it to a runoff if she maintains her lead. Two political extremes will face off in a runoff on December 14, pitting them against each other during a period when voters are concerned about Crime and immigration These law-and order issues were a far cry away from the wave left-wing optimism, and hopes for drafting a constitution, that brought President Gabriel Boric to power. Boric is not allowed to run again. Jara faces a steep battle, as pollsters predict a victory for the right in December. Conservative forces are expected coalesce under Kast, the founder of far-right Republican Party. On Sunday's ballot were eight candidates, and they would have had to receive 50% plus one vote in order to win. Voting was now mandatory for Chile's 15,7 million registered voters, a change from the last election. From Minister to Left Coalition Leader Jara, 51 years old, was Boric’s Labor Minister and beat out a crowded field of primary candidates in June to be the coalition candidate for the government. Jara is proud of his accomplishments, including the long-awaited reform in pensions and an increase in minimum wage. However, he has been criticized for a high unemployment rate that currently stands at 8,5%. She has downplayed the Communist Party's ties to her and promised to represent a wide left-wing alliance, presenting such proposals as raising the minimum wage and increasing funding for the social welfare system and health system. Jara has also proposed strengthening the arms control, increasing technology surveillance at the border and lifting bank secrecy to pursue organized criminal groups. Kast is in his second presidential run-off, after facing Boric. The platform of the far-right candidate is based on a crackdown on crime and immigration. He has proposed building a wall along the border with trenches and expelling all undocumented immigrants. The military would also be deployed to areas where crime is high. When he returned home to his hometown, Paine south-west of Santiago, to vote, he addressed the security issue. You can ask your neighbors whether they are feeling safe, even if you live in a small community. Most people will say they're afraid. Grabs at the Congregation The first round of the previous election saw a 53% abstention rate. A large number of residents who are apathetic or undecided will be voting, adding a wildcard to the race. The majority of Congress, including the entire 155-member lower chamber and 23 of 50 Senate seats are also at stake. The ruling leftist coalition has a minority in both chambers, and majorities of right-wingers in both could lead to Congress and the Presidency being controlled by the Right for the first since the Augusto Pinochet dictatorship ended in 1990.
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Sources say that RPT-Barrick Mining is considering splitting into two separate entities.
Barrick is considering splitting into Africa and North America focused entities Discussion on the sale of African assets, including Reko Diq Mine Barrick's performance in the record gold rally is undervalued by investors. By Divya Rajagopal Four sources familiar with Barrick Mining's thinking said that the board has discussed the possibility of splitting Barrick Mining into two separate companies, one focusing on North America, and the other focusing on Africa and Asia. Sources say that a split could include the sale of Barrick Africa's assets, as well as the Reko diq mine in Pakistan once financing is secured. Sources said that Barrick wants to settle a dispute in Mali with the African nation’s military administration prior to selling the asset. Barrick's spokesperson did not respond immediately to comments. Interim CEO Mark Hill responded on Monday to a question about a possible division by saying that the company doesn't comment on rumours. Sources said that talks are still ongoing and nothing is finalized. If the plans are implemented, they would reverse Barrick's merger in 2019 with Randgold and eliminate assets acquired by former CEO Mark Bristow. One source said that the company's focus in North America would help to ensure Barrick is not undervalued if a takeover bid were made. This includes Fourmile, an undeveloped major gold mine in Nevada. The Fourmile mine is not expected to begin production until 2029. Hill announced earlier this week the company's shift to North America. Analysts at Jefferies, among others, upgraded its ratings on its shares. Following the report, Barrick's shares rose on the Toronto Stock Exchange. They closed up 3%. Investors say Barrick's stock is undervalued, and they have asked the company how it can take advantage of gold's historic price rally. Barrick's shares are up 130% in this year but its returns over the past five years have been less than those of its peers. Agnico Eagle, for example, has gained 142%. Investors proposed that the company be divided into two divisions, with one division containing stable assets like Nevada and Fourmile and the other with riskier assets, such as Papua New Guinea and Reko Diq. Investors say that Barrick, as one of few gold mining companies to have assets on multiple continents and in volatile political regions, is at risk. Barrick's most profitable mine in Mali was taken over by another company earlier this year. This led to a $1 Billion write-off. Three metric tons (three metric tons) of gold were seized and a temporary administrator was appointed to run the mine after a dispute over the new mining tax code in the country. The Malian government has still imprisoned four Barrick employees. One Barrick investor said, "There was a perception that Nevada had a great deal of value." The investor, who asked not to be named because they weren't authorized to speak with the media, added that if the Nevada mine was a publicly-listed company, it would be among the largest gold mining companies in the world. Investor said that the company had resisted splitting up in the past, because its other mines would be worthless without Nevada. Barrick operates the Nevada gold mine with Newmont Corp. The company also has mines in the Democratic Republic of Congo and Papua New Guinea. It also operates gold mines in Tanzania, Dominican Republic and Tanzania. (Divyarajagopal reported from Toronto; Veronica Brown, Lisa Shumaker, and Edmund Klamann edited the story)
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Officials say that around 30 people were killed in an incident at a copper mine in Congo.
The artisanal mining agency of the Congo said that around 30 people died at a semi industrial copper mine in the southeast after a collapsed bridge. A spokesperson for the agency said that 49 people died and 20 were in critical condition after the incident on Saturday, at the Kalando mine site in Lualaba Province. In Congo, artisanal mining supports between 1.5 and 2 million people directly. According to SAEMAPE, the Artisanal and Small-Scale Mining Support and Guidance Service of Congo, the collapse was caused by "panic, which was reportedly triggered" by gunfire by military personnel guarding site. SAEMAPE said in a Sunday statement that the miners "piled up on each other, causing injury and death". The Initiative for the Protection of Human Rights demanded an independent investigation of the military's involvement in the deaths citing reports of clashes involving miners and soldiers. A military spokesperson didn't immediately respond to an inquiry for comment. Roy Kaumba said that in a television statement, 32 deaths had been confirmed. Unregulated artisanal mining is a common cause of accidents, and dozens die every year in sites where diggers often dig deep underground with inadequate equipment. Reporting by Ange A. Kasongo, Congo Newsroom; Writing and editing by Robbie Corey Boulet
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Sources say that Turkey offered to take joint leadership of COP31 in order to resolve the host-host dispute with Australia.
Turkish diplomatic sources confirmed that Turkey proposed to co-host the U.N. Climate Summit with Australia next year, even though the two parties have yet to reach an agreement. The discussions regarding the hosting dispute are still unresolved. Australia and Turkey submitted bids to host COP31 in 2022, and neither country has withdrawn their bid. This impasse, which is a distraction, must be resolved at the COP30 conference, currently being held in Belem in Brazil. Conference of the Parties (COP) is the main global forum for climate action. The host is important because they set agendas and are the diplomats who lead negotiations to achieve global agreements. Turkish sources claimed that Turkey and Australia discussed a joint presidential model in the margins U.N. General Assembly talks held in September. This included sharing hosting duties for meetings at high levels and jointly steering the negotiations. They said that the conversations had created "a base of mutual understanding", but the proposal was not furthered. Later exchanges revealed, according to sources, differing views about how a joint presidency could operate within U.N. procedure. Chris Bowen, Australian Energy Minister, travelled to Brazil for the COP30 on Saturday. He said a decision will be made there and Australia has "overwhelming" support for its candidature. Canberra wants to host the event with Pacific Island nations in order to bring to light the climate challenges they face. The Pacific Islands Forum has backed Australia's bid. Turkey's candidacy, on the other hand, emphasizes inclusion and cooperation. It also aims to focus more on financing for developing nations while showing its progress toward a net-zero emission goal by 2053. Turkish sources claim that President Tayyip Erdoan expressed this opinion in a recent correspondence with Australia's Prime Minister. They also said that Turkey believes "flexible formulations" can be developed by continuing consultations. Sources said that Turkey was also prepared to host the Summit alone, and take over the presidency in the event of a failure to reach an agreement. The COP31 host must be agreed by all 28 members of "Western Europe and Others Group", which includes Australia and Turkey. Tuvan Gumrukcu, Ece Toksabay and Alex Richardson are responsible for reporting; Ece Toksabay is writing; Alex Richardson is editing.
IperionX blasts short seller report as shares plunge 24% after halt
IperionX Ltd, an Australian titanium manufacturer, "strongly" rejected a critical report from Spruce Capital on Monday. Its shares fell as much as 24,4% after the trading halt lifted.
IperionX shares dropped to A$4.24 at the opening of early trading, the lowest price since July 10. This was the largest decline on the benchmark S&P/ASX 200 Index, which fell 0.2%.
IperionX stopped trading on Thursday last week to prepare a reply to Spruce Point’s 93-page study, in which the company was accused of exaggerating its prospects, denying its valuation, and questioning project claims.
The short seller raised concerns about discrepancies with project data and finances, despite announcing a A$17,000,000 ($11.11,000,000) supply agreement with Ford Motor Co. The short seller also cast doubts on the management's credibility by citing links with Piedmont Lithium which was previously targeted.
IperionX, in its rebuttal to the criticism, said that it stood by its technology. It cited government funding of about $47,000,000 to scale up titanium production.
Taso Arima, the chief executive of Taso Arima Corporation, said that a recent Pentagon deal "underscores U.S. Government's commitment to reshore a all-American supply chain for titanium" and confirmed plans to increase production at its Virginia facility.
IperionX stated that Spruce Point never contacted its management prior to publishing the report, and has never visited its titanium operations in Virginia.
Spruce Point’s attack has put the company's shares to the test. They have tripled in value since 2024.
In 2022, the lithium developer Lake Resources fell after a short seller report. Piedmont Lithium - once headed by IperionX CEO - faced similar allegations in 2017.
(source: Reuters)