ACE Analysis Tues 7 Oct 25 HOC GGP SHEL TEP KOS

Daily RNS Catalyst Report

Date: 07 October 2025 | Generated by Analytical Protocol v45

Catalyst Summary

Full Company Analysis

Telecom Plus (TEP)

07 Oct 2025 07:00 UTC
TEP
Catalyst Score
+0.5
Direction
Neutral
Conviction The catalyst has both positive and negative elements that require a balanced assessment.
Low
Balanced

The primary catalyst is the continued double-digit organic customer growth (11% annualised), demonstrating resilience. However, the market may focus on the significant shift in profit phasing towards H2 (now 25/75 vs. 35/65 previously), which introduces short-term uncertainty despite full-year guidance being reaffirmed. The successful cross-selling into the acquired TalkTalk customer base is a positive operational development, but the change in profit recognition is a material short-term headwind to sentiment.

Four Pillar Analysis

PILLAR 1: COMMERCIAL & CONTRACTUAL MOMENTUM

Strong commercial momentum is evidenced by 11% annualised organic customer growth and the successful start to cross-selling into the acquired TalkTalk customer base, with 5,000 customers upgraded and cross-sold ahead of expectations.

PILLAR 2: STRATEGIC & OPERATIONAL TRAJECTORY

The company is on a clear strategic path to grow its customer base to over 2 million in the medium term. The acquisition of the TalkTalk customer book and the launch of a competitive mobile offering are key pillars of this strategy, enhancing its multi-service proposition.

PILLAR 3: REGULATORY & POLICY LANDSCAPE

The change in H1/H2 profit phasing is attributed to evolving industry cost allocation for metering, reflecting a broader regulatory or industry-level operational shift rather than a company-specific issue. This is a structural change in the energy industry.

PILLAR 4: FINANCIAL & MARKET SENTIMENT

While the company reaffirms full-year profit guidance, the significant shift in profit phasing to H2 will be a key focus for the market. This change, while having no impact on full-year totals, alters the short-term financial profile and may create uncertainty for investors until the H2 results are delivered.

Technicals

Technically neutral (Score: -1). The stock is trading flat against its key moving averages with a neutral RSI (43.5). The low short interest (1.15%) and beta (0.34) suggest a lack of strong directional conviction from the market ahead of this news.

Key Metrics

INDICATORS
43.5 RSI
-1 Bull Score
PRICE RELATIVE TO MOVING AVERAGES
8-day
-1.2%
21-day
-1.5%
50-day
-2.0%
200-day
-1.0%
KEY METRICS
52 Week High
2085
Close Price
1822
52 Week Low
1598
Mkt Cap (£m)
1454.4
Fwd P/E
14.4
Broker Upside
6.4%
Short Interest
1.15%
Days to Cover
N/A
Daily Value Traded (£)
1775721

Shell (SHEL)

07 Oct 2025 07:00 UTC
SHEL
Catalyst Score
+1.3
Direction
Neutral
Conviction The catalyst has both positive and negative elements that require a balanced assessment.
Low
Balanced

This is a broadly neutral to slightly positive pre-results update that provides operational guidance within expected ranges. The key takeaway is the guidance for 'significantly higher' trading and optimisation results in the Integrated Gas segment, which is a high-margin activity and could lead to earnings beats. However, this is balanced by a non-cash impairment of ~$0.6 billion in Marketing. The market is likely to view this update as confirmation that the business is performing steadily, with the potential for a positive surprise from trading, but without a major new catalyst.

Four Pillar Analysis

PILLAR 1: COMMERCIAL & CONTRACTUAL MOMENTUM

The update provides production and sales volume guidance across segments. Notably, LNG liquefaction volumes are guided slightly higher (7.0 - 7.4 MT vs 6.7 MT in Q2), suggesting solid operational performance and ability to capture demand.

PILLAR 2: STRATEGIC & OPERATIONAL TRAJECTORY

The company is executing its operational plan, with refinery and chemicals utilisation guided to be strong (94-98% and 79-83% respectively). The cancellation of the Rotterdam HEFA project, resulting in a $0.6bn impairment, represents a strategic pivot in the Marketing segment.

PILLAR 3: REGULATORY & POLICY LANDSCAPE

The update notes a non-cash adjustment related to new pension legislation in the Netherlands, highlighting the ongoing impact of regulatory changes on financial reporting, though this does not affect net debt.

PILLAR 4: FINANCIAL & MARKET SENTIMENT

The standout item for market sentiment is the guidance for 'significantly higher' trading and optimisation results in Integrated Gas and 'higher' results in Chemicals and Products. This suggests Shell is effectively capitalizing on market volatility. The indicative refining margin has also improved to $11.6/bbl from $8.9/bbl in Q2, a positive signal for downstream profitability.

Technicals

Technically neutral (Score: 2). The stock is trading above its key moving averages with a moderately strong RSI (60.5), indicating positive momentum. However, the overall picture is neutral, lacking a strong directional signal prior to this update.

Key Metrics

INDICATORS
60.5 RSI
2 Bull Score
PRICE RELATIVE TO MOVING AVERAGES
8-day
+1.7%
21-day
+2.3%
50-day
+2.4%
200-day
+5.2%
KEY METRICS
52 Week High
2831
Close Price
2737
52 Week Low
2291.5
Mkt Cap (£m)
156205.8
Fwd P/E
11.6
Broker Upside
107.7%
Short Interest
1.39%
Days to Cover
N/A
Daily Value Traded (£)
230775369

Kosmos Energy (DI) (KOS)

07 Oct 2025 07:00 UTC
KOS
Catalyst Score
+2.0
Direction
Neutral
Conviction The catalyst is unambiguous, with a clear, singular interpretation.
Low
Definitive

This is a standard administrative announcement confirming the date for the company's third-quarter results. It carries no new financial or operational information and is therefore a non-catalyst. The market's attention will remain focused on the actual results and webcast scheduled for November 3, 2025. The stock has been extremely weak, down 52% year-to-date, suggesting significant negative sentiment is already priced in. The QCM-M2 rule was triggered, adding a minor positive adjustment as the negative news (in this case, no news) arrives when the stock is already technically oversold, potentially limiting further downside before the results.

Four Pillar Analysis

PILLAR 1: COMMERCIAL & CONTRACTUAL MOMENTUM

Not applicable. This announcement is purely administrative and contains no information on commercial or contractual matters.

PILLAR 2: STRATEGIC & OPERATIONAL TRAJECTORY

Not applicable. The announcement does not provide any updates on the company's strategy or operations.

PILLAR 3: REGULATORY & POLICY LANDSCAPE

Not applicable. The announcement is procedural and does not relate to any regulatory or policy issues.

PILLAR 4: FINANCIAL & MARKET SENTIMENT

The announcement itself is neutral for sentiment. However, it sets a clear date for the next potential catalyst. Given the stock is down 52% year-to-date, market sentiment is clearly negative, and the upcoming results will be a critical test of whether the company can meet or beat low expectations.

Technicals

Technically neutral (Score: 0). The stock is deeply oversold on a long-term basis, trading 62.6% below its 250-day high. However, recent momentum is neutral with an RSI of 54.2. This 'Notice of Results' is a low-impact, administrative announcement unlikely to drive significant price action on its own.

Key Metrics

INDICATORS
54.2 RSI
0 Bull Score
PRICE RELATIVE TO MOVING AVERAGES
8-day
+4.7%
21-day
+3.8%
50-day
-1.0%
200-day
-24.2%
KEY METRICS
52 Week High
354
Close Price
132.5
52 Week Low
116
Mkt Cap (£m)
632.2
Fwd P/E
N/A
Broker Upside
54.9%
Short Interest
N/A%
Days to Cover
N/A
Daily Value Traded (£)
21016

Hochschild Mining (HOC)

07 Oct 2025 07:00 UTC
HOC
Catalyst Score
+7.7
Direction
Bullish
Conviction The catalyst is unambiguous, with a clear, singular interpretation.
Medium
Definitive

This announcement is a positive and material step forward in unlocking the value of the Volcan gold project. The move from a letter of intent to a definitive agreement for the RTO of Railtown Capital provides a clear path to a public listing for Tiernan Gold. The key catalyst is the concurrent C$35m minimum financing, which provides the necessary capital to advance the project. Hochschild's intention to sell down part of its stake is a sensible move to create liquidity for the new entity. The combination of a confirmed transaction, secured funding, and a clear corporate structure is a significant de-risking event for the asset.

Four Pillar Analysis

PILLAR 1: COMMERCIAL & CONTRACTUAL MOMENTUM

The signing of a definitive business combination agreement marks a critical commercial milestone, moving the transaction from a non-binding stage to a formal, agreed-upon path forward. The engagement of co-lead agents for a C$35m financing demonstrates strong institutional backing.

PILLAR 2: STRATEGIC & OPERATIONAL TRAJECTORY

This transaction executes on Hochschild's strategy to surface value from its exploration portfolio. Creating a separate, publicly-listed vehicle for the Volcan project allows it to be funded and advanced without drawing on Hochschild's primary capital, while retaining significant upside for shareholders.

PILLAR 3: REGULATORY & POLICY LANDSCAPE

The transaction is structured as a reverse takeover (RTO) of a TSX-listed capital pool company, which is a standard and well-understood process for achieving a public listing in Canada, suggesting a clear regulatory pathway.

PILLAR 4: FINANCIAL & MARKET SENTIMENT

The financing of at least C$35m is a strong signal of market confidence in the Volcan project. Hochschild's decision to sell down part of its stake to improve trading liquidity is a positive for future market participation in the new entity, 'New Tiernan'.

Technicals

Technically positive (Score: 6). The stock is in a strong uptrend, trading at its 250-day high and significantly above all key moving averages. However, the RSI at 72.2 indicates it is now in overbought territory, which could temper the reaction to this news as some profit-taking may occur.

Key Metrics

INDICATORS
72.2 RSI
6 Bull Score
PRICE RELATIVE TO MOVING AVERAGES
8-day
+4.9%
21-day
+11.2%
50-day
+21.6%
200-day
+47.0%
KEY METRICS
52 Week High
384.6
Close Price
384.6
52 Week Low
168
Mkt Cap (£m)
1978.6
Fwd P/E
14.8
Broker Upside
44.7%
Short Interest
1.38%
Days to Cover
N/A
Daily Value Traded (£)
7629980

Greatland Gold (GGP)

07 Oct 2025 07:00 UTC
GGP
Catalyst Score
+10.7
Direction
Bullish
Conviction The catalyst is unambiguous, with a clear, singular interpretation.
High
Definitive

This is a strong operational update that demonstrates excellent performance and robust financial health. The primary catalyst is the significant cash build of $175 million in a single quarter, showcasing the mine's strong cash generation capabilities. Production of 80,890 oz Au is solid, and the expectation that AISC will be at the lower end of the guidance range ($2,400 - $2,800/oz) is a key positive, indicating good cost control. The peer surprise score of 1.147 reflects that the implied production run-rate is ahead of the average guidance from peers, representing a material positive delta. The combination of strong production, cost control, and exceptional cash generation should be very well received by the market.

Four Pillar Analysis

PILLAR 1: COMMERCIAL & CONTRACTUAL MOMENTUM

The company demonstrates strong commercial execution with sales of 82,199 oz of gold and 3,277 t of copper, closely matching production figures and indicating efficient conversion of production to revenue.

PILLAR 2: STRATEGIC & OPERATIONAL TRAJECTORY

Operationally, the quarter was a success with strong production of 80,890 oz Au and 3,366 t Cu. The company's ability to maintain costs towards the lower end of FY26 guidance underpins the operational efficiency of the Telfer-Havieron complex.

PILLAR 3: REGULATORY & POLICY LANDSCAPE

A minor administrative update is the deferral of a $46 million stamp duty payment to October. While not material to the operation, it has a one-off positive impact on the reported cash position for the September quarter.

PILLAR 4: FINANCIAL & MARKET SENTIMENT

The standout metric is the $175 million cash build during the quarter, increasing the cash position to $750 million with nil debt. This exceptional free cash flow generation is a powerful positive signal to the market about the mine's profitability and the company's financial strength.

Technicals

Technically positive (Score: 6). The stock is showing strong positive momentum, trading at its 250-day high and significantly above all key moving averages. The RSI of 69.5 is approaching overbought territory, but the trend is clearly positive heading into this update.

Key Metrics

INDICATORS
69.5 RSI
6 Bull Score
PRICE RELATIVE TO MOVING AVERAGES
8-day
+4.9%
21-day
+11.9%
50-day
+27.8%
200-day
+51.5%
KEY METRICS
52 Week High
374
Close Price
374
52 Week Low
103
Mkt Cap (£m)
2495.4
Fwd P/E
N/A
Broker Upside
-0.7%
Short Interest
N/A%
Days to Cover
N/A
Daily Value Traded (£)
6227272
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