• Mailpac Group (MAILPAC) has requested a further extension to file its audited financial statements for the year ended December 31, 2025 (FY2025) as auditors required more time to complete additional valuation and accounting procedures related to the acquisition of MyCart Quick Limited (MyCart). The company expects to file the statements on or before July 17, 2026.
• The extended review became necessary after amendments were made to the original acquisition agreement, resulting in a revised basis for calculating the final purchase consideration. To support the completion of the acquisition accounting process, the company engaged Ernst & Young (“EY”) as an independent valuation specialist to perform the purchase price allocation exercise and related valuation analyses.
• Under the amended terms, Mailpac agreed to acquire MyCart for J$243Mn in cash, which was paid on April 15, 2026, together with the issuance of 50 million new ordinary shares. The company disclosed that these shares will be issued and listed once the necessary corporate, regulatory, and JSE requirements are satisfied.
• The impending issuance of the 50 million shares would increase Mailpac's outstanding share count to 2.55 billion units (+2.0%), resulting in modest dilution to existing shareholders. However, the ultimate impact on earnings per share will depend on the extent to which MyCart contributes to profitability following its integration into the group.
• Separately, Mailpac had previously indicated that it was considering changing its name to "MyPac" and holding a shareholder meeting to approve the change. However, after completing the integration of MyCart and reviewing the business, the Board decided not to move forward with the rebranding. As a result, no shareholder meeting was held, and Mailpac will continue operating under its current name.
• At market close on Monday, June 22, 2026, MAILPAC’s price was J$2.34, down 3.30% since the start of the year. At its current price, the company trades at a P/E of 19.50x, which is a 25% premium to the Junior Market Distribution Sector Average of 15.57x, suggesting investors are already pricing in some benefit from the MyCart acquisition.

(Sources: JSE & NCBCM Research)

• Efforts to strengthen Jamaica’s anti-money laundering regime are yielding results, with the Bank of Jamaica's (BOJ’s) National Risk Assessment Report 2026 showing an improvement in the country's overall residual money laundering risk profile. The report found that Jamaica's risk rating declined to Medium with a score of 0.43 in 2025 from Medium-High with a score of 0.72 in 2021^[1]. The improvement was driven by stronger regulatory oversight, enhanced inter-agency coordination, and more effective enforcement measures.
• Despite continued exposure to major crimes such as narcotics trafficking, fraud, and cyber-enabled crime, the report found that criminal actors are facing growing difficulty in exploiting Jamaica's formal financial system. Strengthened law enforcement operations, improved financial investigations, and increased asset recovery efforts have helped contain the flow of illicit proceeds and limit opportunities for abuse within regulated channels.
• Importantly, the banking sector was identified as a key area of progress over the 2021-2025 period. Financial institutions enhanced cyber-security controls, fraud detection systems, authentication protocols, and transaction monitoring capabilities, while regulators increased supervisory scrutiny through targeted reviews and ongoing engagement. These measures reduced vulnerabilities across digital payment channels and contributed to greater resilience within the financial system.
• That said, as controls tightened, criminal networks have adapted their methods. The report noted a shift away from high-volume digital fraud toward lower-frequency but higher-value activities such as cheque forgery, attacks on cash-in-transit services, and other cash-intensive operations. This evolution has made criminal activity more costly, fragmented, and operationally risky, suggesting that defensive measures are narrowing viable avenues for financial crime.
• The assessment also highlighted notable improvements in the remittance and cambio sectors. Enhanced customer due diligence, automated screening systems, stronger governance standards, and closer regulatory oversight reduced the attractiveness of these sectors as money laundering conduits. As a result, illicit actors increasingly migrated toward alternative channels outside the regulated financial ecosystem.
• Looking ahead, emerging vulnerabilities in designated non-financial businesses and professions have been identified, including real estate development, motor vehicle trading, selected professional services, and trade-based money laundering linked to construction materials and vehicle imports. As a result, the BOJ noted that future policy efforts will focus on strengthening intelligence sharing, enhancing financial investigations, improving prosecutions, and expanding oversight in these sectors to further reinforce Jamaica's resilience against evolving financial crime threats.

________________________

¹ML Threat is measured from high to low scores, with a decline in the score marking an improvement. The ranges include High, Medium-high, Medium, Medium-low, and Low.

(Sources: Bank of Jamaica & NCBCM Research)

• The European Union (EU) is turning to Brazil as a strategic partner in its push to diversify critical mineral supplies, with EU Commissioner Jozef Sikela saying the partnership would support both Europe’s supply needs and Brazil’s development goals.
• During a visit to Viridis Mining and Minerals' rare earth research and processing centre in Minas Gerais, Sikela highlighted the EU’s focus on sustainable business and local processing, aligning with Brazil’s objective of moving from exporting raw materials to higher-value processed minerals.
• According to the Commissioner, the partnership would allow the EU to secure supplies through purchase agreements while helping Brazil build refining capacity, access new technologies, and move up the supply chain into higher-margin production. He noted that Brazil holds the world’s second-largest critical mineral reserves and is currently the EU’s most strategic partner in Latin America.
• Viridis’ pilot project, inaugurated in May, can process 100 kilograms of ore per hour and produce up to 2.92 tonnes of mixed rare earth carbonate (MREC) annually. The company plans to invest US$360Mn in a commercial plant capable of producing 15,000 tonnes of MREC per year from 2028.
• The commissioner also pointed to a non-binding letter of intent signed this month between Viridis and Belgian chemicals company Solvay for the supply of MREC. Viridis’ CEO said discussions with the EU are at an advanced stage, with a potential Solvay agreement expected by the end of July.
• The developments come amid a global race for rare earths and critical minerals, as Europe and the United States seek to reduce dependence on China. Sikela indicated that the EU is also considering projects involving nickel and lithium in Brazil and plans to advance a memorandum of understanding with the Brazilian government.

(Source: Reuters)

• The Antigua and Barbuda government has begun discussions on expanding the scope of its windfall tax to include all businesses earning annual profits of EC$1Mn or more, beyond the telecommunications, banking, insurance and energy sectors currently covered by the regime.
• Under the existing framework, the windfall tax imposes a 10% levy on profits of EC$1Mn or more. Cabinet is examining amendments that would broaden the tax base to ensure highly profitable enterprises contribute more equitably to the country’s social and economic development.
• Discussions focused on the government’s growing investment in education and human capital development, including continued support for the University of the West Indies Five Islands Campus and the institutions that make up the Antigua and Barbuda College of Advanced Studies (ABCAS).
• According to Cabinet, the proposed expansion of the windfall tax is being examined as a potential source of dedicated revenue to strengthen and sustain the country’s tertiary education sector, as access to higher education continues to expand and investment in facilities, programmes and student opportunities increases. The government noted that the proposal remains under review, with consideration being given to the legal, economic and social implications before any amendments are brought before Parliament for debate and approval.
• The proposed windfall tax expansion reflects the government’s effort to link stronger business profitability to broader national development, particularly education funding. However, because amendments would still need to go before Parliament, the proposal remains at the policy-review stage rather than an approved tax change.

(Source: Trinidad Express Newspapers)

• Britain is to get its fifth prime minister in four years after the current incumbent of Downing Street, Keir Starmer, announced that he would resign.
• The move was widely expected and came after months of mounting pressure on Starmer, who led the Labour Party to a landslide victory in the 2024 UK general election but who has faced months of pressure to quit from members of parliament (MPs) for the centre-left party.
• Starmer had been hailed as a pragmatic and serious leader who could restore stability after years of political chaos and infighting that resulted in two changes of prime minister by the rightwing Conservative Party after the 2019 general election.
• But although he was elected with the biggest parliamentary majority in 100 years, there was a sense even among Labour supporters that Starmer lacked political nous and conviction. This was underlined by missteps including cutting some winter fuel subsidies for pensioners and a U-turn on welfare in the face of a parliamentary rebellion last year.
• That said, the announcement sets the scene for him to be replaced within weeks by Andy Burnham, who was a minister in the 2007-2010 government of Gordon Brown and, from 2017 until last week, the mayor of Greater Manchester. Burnham is seen by many in Labour as the party’s best hope of defeating the challenge posed by the populist-right Reform Party, led by Nigel Farage.
• The Labour government is the latest to fall foul of voter anger over politicians' failure ​to deliver on their promises of change, 10 years after the vote to leave the European Union. Starmer said he would ask the Labour Party's organising committee to set out a timeline for a leadership ​contest to find his replacement. Nominations would open on July 9, close by mid-July, and if there is a contest, a new leader will be in place by September. A coronation could mean a new leader would enter office by mid-July.
• After describing the achievements his government had secured in his two years of power, a man who was often criticised for being robotic became visibly emotional, his voice cracking when ​he thanked his family for their support.

(Sources: The Guardian and Reuters)

• Oil prices settled more than 3% lower on Monday, as supply concerns eased after U.S. Vice President ​JD Vance said progress has been made in talks with Iran and the Strait of Hormuz was open.
• Brent crude ‌settled down $2.67, or 3.31%, at $77.90 a barrel. In early trading, prices had climbed to $82.30 because of threats by U.S. President Donald Trump to restart the Iran war, and Tehran's announcement that it had again closed the strait. U.S. West Texas Intermediate crude futures expired on Monday and settled at $74.82 a barrel, down $1.78 or 2.32%. The more-active ​August contract lost $1.99 and settled at $73.86 a barrel.
• High-ranking U.S. and Iranian officials wrapped up their first round of talks in Switzerland ​on Monday, mediators said. The discussions began on Sunday under the terms of a memorandum of understanding reached ⁠last week to extend a tenuous ceasefire from April for at least another 60 days.
• The United States authorised Iranian oil sales on Monday. ​The general license, announced by the Treasury Department, allows the sale of crude oil, petrochemical and petroleum products of Iranian origin through August ​21.
• Meanwhile, Iran did not negotiate on its nuclear program and did not accept any new commitments in Sunday's talks with the U.S. in Switzerland, Foreign Ministry spokesperson Esmaeil Baghaei told the official Islamic Republic News Agency (IRNA) news agency.

(Source: Reuters)

• Tropical Battery completed a sale-leaseback of its Ferry Road headquarters, converting an illiquid real estate asset into J$950Mn in gross proceeds without disrupting daily business operations.
• The proceeds were used to pay down higher-cost debt facilities, lowering the company's annualised interest burden, and to strengthen working capital for inventory and distribution network operations.
• The transaction is not a straightforward debt elimination; under IFRS 16 rules, the company will replace its mortgage debt with a newly recognised right-of-use asset and a corresponding lease liability on its balance sheet.
• This move is part of a coordinated, multi-year strategy to reduce the heavy debt load from recent rapid acquisitions, sitting alongside other initiatives like financing for Tropical Renewable Energy and negotiations with institutional lenders.
• Management emphasised that the transaction replaces a low-yield owned asset with deployable cash, betting that the capital reinvested into the core business will generate returns that exceed the new lease obligations.
• Reducing debt lowers interest expenses, allowing a greater share of operating profit to flow directly to net earnings. An expansion of net earnings should strengthen the company's financial foundation, freeing up capital for reinvestment and, ultimately, supporting future dividend payments.
• Prior to the sale-leaseback, Tropical achieved a 124.4% turnaround in its first-half earnings, reaching $24.42M for March 2026. This growth was driven by a 3.1% increase in revenue alongside gross margin expansion to 38.4%, fueled by a stronger sales mix of high-margin products.
• Since the start of the year, Tropical’s stock price has declined by 11.9% to $1.40 on Thursday, June 18, 2026. At this level, the stock trades at a price-to-earnings (P/E) ratio of 11.1x, which is below the Main Market Energy, Industrials and Materials Sector average of 13.0x.

(Sources: JSE& NCBCM research)

• Industry Minister Senator Aubyn Hill announced that complaints from the construction sector regarding cement shortages are declining as market conditions continue to stabilise. Speaking at a post-Cabinet media briefing on Wednesday, Senator Hill explained that the Cabinet analysed the compounding annual growth rate to project future cement demand and consequently approved additional importers to ensure a steady market supply and foster healthy competition.
• While Buying House Company was previously approved in April to meet immediate demands following operational disruptions at Caribbean Cement Company Limited (CCC), three or four other importers have now been approved to bring in varying quantities of cement.
• Jamaica Logistics International Limited was approved to import 100,000 tonnes, Rock Hard 100,000 tonnes, Tank-Weld Metals 60,000 tonnes, Island Concrete Company Limited 60,000 tonnes, and Gore Developments Limited was approved to import 20,000 tonnes, totalling 490,000 tonnes. This short-term, six-month import injection eclipses the entire incremental capacity of CCC's recent Rockfort kiln expansion, which was designed to add 300,000 tonnes of annual output to push total capacity to 1,300,000 tonnes.
• Senator Hill asserted that the supply and demand equilibrium is returning to normalcy, noting that the CCC has increased its imports while the newly approved importers finalise their arrangements to meet local construction needs.
• The shortage was triggered by heavy rainfall and raw material issues that impacted production at CCC’s Rockfort plant. It was further compounded by the high demand for infrastructure projects in the aftermath of Hurricane Melissa.

(Sources: CEMNET & NCBCM Research)

• Trinidad and Tobago's (T&T’s) mid-year budget review and updated fiscal projections indicate that the government expects the fiscal balance to narrow in FY2026^[1] from -4.6% in FY2025 to -3.5% of Gross Domestic Product (GDP). On June 15, T&T’s Minister of Finance Davendranath Tancoo presented the government's mid-year budget review, outlining updated fiscal projections and providing details on the supplemental budget appropriation that was approved last week.
• In line with BMI’s long-standing view, Minister Tancoo revealed in his review that revenues exceeded projections (TTD30.1Bn relative to TTD28Bn) for the first seven months of the fiscal year, attributing this performance to a range of factors, including elevated oil prices and newly implemented tax measures such as levies on landlords, special consumption taxes, and electricity surcharges. In addition, the review outlined a supplemental budget allocation that increases expenditures for FY2026 from TTD59.2Bn to TTD62.2Bn, bringing the government's expenditure projection in line with expectations.
• BMI is upbeat about the near-term revenue performance, through both energy and non-energy channels. Expectations are that elevated global energy prices will support T&T’s revenue mobilisation and overall fiscal outlook through Q2 2026. Of course, a one-dollar increase in Brent crude is associated with roughly a 0.1 percentage point increase in central government revenues as a share of GDP.
• Furthermore, newly implemented revenue measures will meaningfully boost non-energy revenues by expanding the tax base and raising taxes on goods with inelastic demand, such as alcohol and tobacco. The government's budget also included measures to strengthen tax compliance and collection, which will boost revenues. Finally, with new gas fields expected to come online in the coming quarters, the related near- and medium-term boost in output will help support public finances.
• As a result, the government projects that the primary balance will shift to surplus in FY2027, a view BMI also shares, with the primary surplus projected to average 1.3% of GDP from 2027 to 2035. This, in turn, will see debt stabilise and recede over the longer term, falling to around 65% of GDP by 2035.
• That said, downside risks arise primarily from a more subdued growth picture and the risk of fiscal slippage. Slower-than-expected domestic and global growth would affect public finances directly through lower-than-projected revenues and indirectly through increased political pressure on the government to loosen fiscal policy to support the lacklustre domestic economy, which saw muted activity in the most recent GDP print from Q3 2025.
• While the recently signed deal between the U.S. and Iran has sent prices lower, renewed tensions could drive a more sustained increase in energy prices, which would likely see revenues overperform and support the fiscal path.

(Source: BMI, A Fitch Solutions Company)

^[1] T&T’s fiscal year extends from October to September in the following year.

• As an increasingly important oil producer and exporter in Latin America, Guyana is well-positioned to benefit from the higher oil price environment caused by the US-Iran conflict. Under BMI’s baseline scenario, its Oil & Gas team forecasts that global Brent will average US$88/barrel (bbl) in 2026 (previously US$78/bbl), up from US$69/bbl in 2025, which will provide a substantial boost to Guyana's oil export earnings and inflows into the country's Natural Resource Fund (NRF), which then feeds into government revenues.
• Risks to this forecast now lean to the downside as oil prices have fallen sharply since the US-Iran agreement on a framework peace deal that is set to be signed on June 19, but BMI still believes that the spillover effects from the conflict will be net positive for Guyana in the near-term given the outsized influence of oil exports on the economy (crude accounts for around 90% of total goods exports and 50% of government revenues in 2025).
• Higher oil export inflows into the NRF, which manages the distribution of Guyana's oil earnings, will also bolster the country's fiscal position, most likely from 2027. The budget deficit will widen modestly from 4.9% of Gross Domestic Product (GDP) in 2025 to 5.3% in 2026, as under current rules, NRF withdrawals are capped by earnings from the previous year (2025), when oil prices were lower.
• However, a high oil price environment will enable the government to increase withdrawals and expand its fiscal stimulus in 2027. Moreover, ExxonMobil recently indicated that higher global oil prices are accelerating its cost recovery in the Stabroek Block, and once completed, this would lead to Guyana receiving a greater share of future oil earnings (compared to the current 12.5%), potentially providing an additional boost to revenues from 2027.
• Consequently, BMI expects the budget deficit to narrow further over the medium term as the ramping up of oil output continues to sustain strong revenue growth. Guyana's crude production is expected to more than double from the estimated average of 732,000 barrels per day (b/d) in 2025 to 1,493,000b/d by 2030. This will support robust oil revenue growth over the coming years, assuming broadly stable global oil prices. If oil prices fall further than expected, expectations are for more moderate revenue growth due to NRF withdrawal limits, while growth would accelerate if prices rise higher than forecast - potentially caused by instability in the Middle East.

(Source: BMI, A Fitch Solutions Company)