Investment Strategy - The debasement trade focuses on acquiring "hard assets" to hedge against currency devaluation [1] - Target assets include real estate, metals, land, scarce digital art, Bitcoin, Ethereum, and commodities without price controls [1] - Data centers and hardware powering AI are also considered valuable assets [1] - Equities benefiting from the expansion of the aforementioned industries are attractive investment opportunities [1]

Core Insights - The rise of barter transactions in Russia's foreign trade is a response to Western sanctions, with companies exchanging goods like wheat for Chinese cars and flax seeds for building materials [6][8][15] - The Russian economy is showing signs of strain, with the central bank indicating a technical recession and high inflation, despite claims from President Putin that the economy has outperformed expectations [3][4] - The U.S. and its allies have imposed over 25,000 sanctions on Russia, aiming to undermine its economy and support for President Putin [4] Barter Transactions - Barter transactions are becoming more frequent as companies seek to circumvent sanctions that disconnect Russian banks from dollar and euro transactions [9][10] - Specific transactions include the exchange of Chinese cars for Russian wheat and flax seeds for household appliances [13][14] - The overall value or volume of barter in the Russian economy remains unclear due to the opacity of these transactions, but trade sources indicate a growing trend [7][9] Economic Context - Russia's foreign trade surplus decreased by 14% in the first half of the year, with exports down by $11.5 billion to $232.6 billion [11] - The government and central bank have not provided specific data on barter transactions, suggesting that they are included in overall trade figures if reported lawfully [12] - The current barter system is seen as a symptom of de-dollarization and liquidity issues among trading partners [8] Industry Responses - Chinese companies are exploring barter as a solution to settlement issues that hinder bilateral trade [16] - Some traders are using alternative payment methods, including payment agents and cryptocurrencies, to navigate the sanctions landscape [19][20] - The historical context of barter in the 1990s highlights the chaotic nature of such transactions, driven by economic instability and inflation [17][18]

Core Viewpoint - The successful approval of the business combination between Welsbach Technology Metals Acquisition Corp. (WTMA) and Evolution Metals LLC (EM) aims to establish a fully integrated and independent critical minerals and materials supply chain in the US, reducing reliance on China [1][2]. Group 1: Business Combination Details - WTMA and EM are merging to scale four operating companies: bonded magnet manufacturing, sintered magnet manufacturing, magnet metals and alloys production, and smart machine design and automation [2]. - The combined entity will be renamed Evolution Metals & Technologies Corp. (EM&T) and is expected to trade on Nasdaq under the symbol EMAT [2]. Group 2: Future Plans and Operations - EM&T plans to replicate and scale its operations in the USA, aiming to build the largest commercial scale critical minerals and materials industrial campus in America, including the largest hydrometallurgy and pyrometallurgy facility outside China [3]. - The company will leverage advanced technologies such as robotics and automation for integrated midstream and downstream recycling and processing of critical minerals and materials for various industries, including automotive, aerospace, and renewable energy [4][8]. Group 3: Strategic Goals - EM's strategy focuses on establishing a secure and reliable supply chain for critical minerals and materials that is 100% independent of China, targeting essential products for electric vehicles, electronics, and defense applications [8]. - The initiative aims to create jobs and promote a greener future by providing tailored solutions to support clients globally [8].

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Market Trends - Competition among traders for copper and other metals contracts is heating up in the Americas [1] Investment and Funding - Vitol Group and Breakwall Capital have formed a credit fund targeting mining companies in the Americas [1]

Market Overview - The stock market has shown resilience in June following a significant rally from April lows, with the Nasdaq and S&P 500 maintaining their positions ahead of the second quarter earnings season starting in mid-July [1] - The bullish sentiment is supported by ongoing trade war progress, controlled inflation, and growing corporate earnings [1] Investment Strategy - Investors are encouraged to remain engaged with the market and continue purchasing stocks, even amid bearish sentiment [2] - A recommended approach for stock selection in June includes targeting companies with improving earnings outlooks that achieve a Zacks Rank 1 (Strong Buy) and demonstrate efficient profit generation [2] Return on Equity (ROE) - ROE is a critical metric for assessing a company's ability to generate profits from shareholder equity, calculated as net income divided by shareholder's equity [3] - A higher ROE indicates effective management in creating value and controlling costs, while a decline in ROE may signal potential issues [4] Stock Screening Criteria - The screening process includes several parameters: - Zacks Rank equal to 1, indicating strong earnings estimate revisions [4] - Stock price greater than or equal to $5 to avoid volatility [5] - Price/Sales Ratio less than or equal to 1 for better value [6] - Broker Rating of Strong Buy equal to 100% [7] - ROE greater than or equal to 10% to filter out underperforming companies [7] Company Spotlight: Marubeni - Marubeni (MARUY) is a Japanese trading and investment conglomerate involved in a diverse range of products and services across nearly 70 countries [9] - The stock has appreciated 250% over the past decade, outperforming the S&P 500's 200% increase, and is currently trading at a 35% discount to its sector [10] - Marubeni's ROE stands at 13.5%, significantly higher than the industry average of 3.13%, and it offers a dividend yield of 2.71% [11]

Core Viewpoint - The merger between Welsbach Technology Metals Acquisition Corp. and Evolution Metals LLC aims to create a fully integrated and operational critical minerals and materials supply chain independent of China, addressing supply chain vulnerabilities in the Western world [1][4]. Company Overview - Welsbach Technology Metals Acquisition Corp. (WTMA) is a publicly traded special purpose acquisition company focused on high-impact technology metals businesses aligned with global sustainability and security trends [5]. - Evolution Metals LLC is dedicated to establishing a secure and reliable supply chain for critical minerals and materials (CMM) that is completely independent of China, focusing on manufacturing, recycling, and processing facilities for essential products [6]. Business Combination Details - WTMA and EM plan to acquire 100% interest in five operating companies, leading to the formation of a new entity named Evolution Metals & Technologies Corp. (EM&T), which will trade on Nasdaq under the symbol EMAT [2]. - The SEC has declared effective the registration statement on Form S-4, facilitating the business combination [1][10]. Strategic Importance - The merger is positioned as a transformative step toward American resilience in critical materials, responding to U.S. government policy imperatives for reshoring strategic industries and securing CMM supply chains [4]. - EM&T aims to leverage advanced technologies such as robotics and artificial intelligence for integrated midstream and downstream CMM recycling and processing, targeting key industries including automotive, aerospace, defense, healthcare, and renewable energy [3]. Environmental and Economic Impact - By integrating CMM recycling, processing, and advanced materials production, EM&T expects to reduce dependence on China-controlled supply chains, thereby strengthening America's industrial and national security [4]. - The company plans to deliver significant environmental, strategic, and economic impacts through its operations [4].

Q1 2025 Performance - Ryerson generated Q1 2025 revenue of $1.14 billion on 500,000 tons shipped at an average selling price of $2,271 per ton[8] - The company incurred a Net Loss attributable to Ryerson Holding Corporation of $5.6 million, or Diluted Loss Per Share of $0.18, and Adjusted EBITDA, excluding LIFO, of $32.8 million[8] - Ryerson ended Q1 2025 with debt of $498 million and net debt of $464 million, compared to $468 million and $440 million, respectively, on December 31, 2024[8] - The company's transactional sales increased 12% YoY[8] Q2 2025 Guidance - Ryerson anticipates Q2 2025 net sales to be between $1.15 billion and $1.19 billion[18] - The company expects Q2 2025 net income between $2 million and $4 million, and Adjusted EBITDA, excluding LIFO, between $40 million and $45 million[18] - Ryerson projects Q2 2025 diluted earnings (loss) per share to be between ($0.13) and $0.10[18] - The company anticipates shipments to be between (1)% and 1% and average selling prices to increase 3% to 4%[22] Capital Allocation and Liquidity - Ryerson's global liquidity increased to $490 million in Q1 2025[34] - The company's capital expenditure plan includes $50 million in 2025E[36] - The company declared a second-quarter 2025 dividend of $0.1875 per share[8]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $145 million, an improvement of $7 million compared to the prior year quarter [28] - Adjusted EPS for the quarter was $0.39, lower than the prior year primarily due to a non-recurrence of a one-time tax benefit of $48 million and $14 million of higher interest expense [28] - Adjusted free cash flow was a net use of $62 million, slightly higher than the prior year due to increased interest expense [29] Business Line Data and Key Metrics Changes - Polymers segment saw a 2.7% increase driven by demand in small containers and IBC in the ag and food sectors, particularly in EMEA [20] - Integrated Solutions experienced low double-digit growth in both caps and closures and paints, linings, and adhesives [20] - Fiber volumes were slightly up, with operating rates in both paper grades in line with the industry [21] - Metals segment continued to be impacted by a soft industrial economy, particularly in bulk chemicals and petrochemicals [21] Market Data and Key Metrics Changes - EMEA demonstrated the highest level of resilience, followed by APAC, while LATAM showed a slight downward trend and North America had the most bearish demand sentiment [24] - Demand trends in boxboard were flat year-on-year, with specific subsegments like URB showing softness [84] Company Strategy and Development Direction - Company announced a $100 million cost optimization initiative and a commitment to achieve $1 billion EBITDA and $500 million free cash flow by 2027 [7][10] - The decision to sell the timber portfolio of approximately 176 acres was made to reduce debt and refocus on core growth areas [17] - The company is focusing on growing in GDP-plus growth markets such as agrochemicals, food and beverage, and pharmaceuticals [99] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about future volume growth, noting that while some markets showed sequential improvements, no clear inflection point had been observed [54] - The company remains committed to operational excellence and customer-centric growth, aiming to create continuing value for stakeholders [106] Other Important Information - The organizational realignment in 2024 resulted in new strategic business units (SBUs) to better visualize portfolio fit and growth objectives [16] - The company is experiencing short-term SG&A cost inflation as it reallocates resources for long-term value creation [31] Q&A Session Summary Question: Fiber segment performance relative to expectations - Management indicated that fiber performance was in line with expectations, but SG&A allocation protocols may have caused confusion regarding profitability [45][46] Question: Differences in demand between EMEA and North America - Management explained that the difference is due to end market exposure, with growth in agrochemical markets contributing to EMEA's resilience [50][51] Question: Margin expectations for Q2 and beyond - Management expects EBITDA margins to steadily improve through the year, driven by volume lift and fixed cost leverage [63] Question: Timberland sale details - Management stated that the timberland sale is aimed at reducing debt and that the value of timberland has been increasing due to various factors [66][72] Question: Demand trends in boxboard - Management noted that total boxboard demand is flat year-on-year, with specific subsegments showing varying performance [84] Question: Competitive landscape in polymers and metals - Management emphasized a focus on value over volume, maintaining confidence in market position despite competitive pressures [90][95] Question: Exciting end markets and concerns - Management highlighted agrochemicals and food and beverage as exciting markets, while expressing caution regarding the pharma space due to long lead times [99][100]