Today, you get a double down under special sit writeup, but before we get into it, a few housekeeping items:For those that missed it, Undervalued Shares published their 2026 Weird Shit Manual. If you are a subscriber of mine, this is your kink, so check it out for a number of great ideas. To finish up the Weird Shit series, Undervalued Shares is also doing a Weird Shit online. I will be presenting with at least 2 ideas. Sign up link here As for this article, credit to Special Sits Digest, where I first ran across Energy World and flagged it in my last compilation episode.It’s been sitting on my watchlist, while I did further work along with another Aussie name, NTU.I honestly can’t decide which of these two I like better, so I thought I would write up both, because why not?Thanks for reading Triple S Special Situations Investing! Subscribe for free to receive new posts and support my work.Energy World Corporation (ASX: EWC)TLDR: EWC trades at A$0.052. It carries no debt, just agreed to sell its turbines for US$350m (~A$500m), and once that cash lands the company will be sitting on roughly ~$0.12 a share in net cash with a potentially almost completed strategic Philippine LNG terminal effectively thrown in for free.Energy World is a 20+ year old LNG and power developer with assets in the Philippines, Indonesia and Australia.For most of that history it was a textbook dumpster fire, with heavy debt from poorly managed half-finished infrastructure builds.This company reminds me a lot of a New Fortress Energy (which isn’t a compliment), but the difference is they never finished a major project, unlike NFE.There’s a reason this thing traded for a few pennies, having incinerated capital and exhausting shareholders.Two things have changed since then.CatalystsFirst, the balance sheet. EWC converted roughly US$442m of debt into equity, wiping out the leverage overhang entirely.The detail I like is that the insiders did the conversion at a notional ~A$0.88 a share, which was ~ 40x the two-cent market price.Second and this is the upcoming catalyst is the turbine sale.On 2 June, EWC agreed to sell its two Siemens gas turbines plus one steam turbine to Hallador Energy (Nasdaq: HNRG) for US$350m gross, with estimated net proceeds of ~US$331m after transaction costs.Why would anyone pay that for power equipment? The AI build-out.Data-center electricity demand has blown out turbine order books to the point where new units carry waiting lists of five plus years. EWC’s turbines are built to US specs and have never been fully installed, commissioned or fired, which allows a US buyer to have power now instead of in 2031. Management sold them for roughly four times what they paid about a decade ago.The milestone scheduleThe US$350m doesn’t arrive all at once. It comes in escrow tranches through 2026:US$20m within one business day of the effective date (to escrow / suppliers, to fund packing and loading).US$15m on or before 3 July 2026.US$50m on or before the later of 31 August 2026 or delivery of the gas turbines.US$265m on or before the later of 30 September 2026 or delivery released as US$132.5m on the OEM conformity assessment and the balance at completion.This presents the biggest risk and why the stock is trading where it is.Hallador, which is a business with over 70 years of history, is paying a huge chunk of its market cap for these turbines. The company says it’s “well positioned to finance the acquisition.”Their balance sheet shows no outstanding bank debt, access to a $120m credit facility, a contracted sales book above $2.1bn, and a 12-year capacity agreement worth over $1bn, so I believe they have every intention to get this deal done.The contract between the two companies has no financing contingencies.If Hallador misses a payment milestone date and does not cure within 5 to 15 business days, they lose all the money they have paid to EWC, so this isn’t just an option contract, but something with teeth in it. The Market seems to think otherwise based on the current stock price. I am betting it is wrong. We will know by 4Q who is right as the 50m payment will likely be dispositive of closing risk of the final payment. So once that cash is in the door, the stock is selling for less than half its cash value, and then what?What’s left?Selling the turbines effectively guts the Pagbilao power plant, which is fine.The asset that actually matters going forward is the Pagbilao LNG terminal.It’s a 130,000 m³ tank, 3 MTPA expandable to 6, with a deep-water jetty and licensed private port, around 80% complete, an estimated replacement cost of hundreds of millions, and requires only ~US$ 40m left to finish.The biggest issue with this project is that it is currently an LNG terminal to nowhere, with the power generation equipment having been sold, so how that gets resolved needs to be communicated by the company. Their Indonesia project, in my opinion, needs to be fully scrapped.It’s setup to lose lots of money based on changes in the Indonesian gas market driven by the whims of the government.In a perfect world, they can get $20 to $40 million selling it off for parts as there is equipment like LNG cold boxes still there, or sell to a local company with governmental connections to take over the project.I’m not going to pretend the downside is only the deal falling apart, because it isn’t.Energy World to date has had a serious governance problem. The newly appointed chairman has done an admirable job of trying to right the ship through the elimination of previous debt and selling these turbines. My hope is that the money from this sale will be used to turn the Philippines into a real business and the remainder of the funds will be put back to shareholders with a capital return, as that would be a prudent course of action. This is the asymmetric setup I look for, although it’s not a guaranteed slam dunk.Either:A) the sale closes, the cash arrives, and management does something rational with capital returns and finishes a strategic LNG terminal project or wraps up all its businessesB) the controlling holder sits on the cash, they keep pushing forward projects that no longer make sense, and you join the graveyard of previous shareholders, who rode this stock downI feel the risk reward is to my liking on this, so I am in.Northern Minerals (ASX: NTU)TLDR: Basically debt-free with net cash rare earth miner about to FID with project funding underwritten by the government. The stock last raised money at A$0.051 in November 2025 and is now trading at 2.6 cents due to a forced seller of 17% of the outstanding shares of the stock by July 2nd, because Chyna is bad, Mkay.Northern Minerals owns 100% of the Browns Range Heavy Rare Earths Project in the East Kimberley, Western Australia. It is one of the highest-grade dysprosium / terbium (Dy/Tb) deposits outside China.Why does anyone care about Dy/Tb? Because they’re the elements that stop high-performance NdFeB permanent magnets from demagnetising when they get hot.These magnets go into EV motors, wind turbines and, more to the point for the politics here, defense hardware.China and Myanmar account for >90% of global heavy rare earth mine production,China processes >99% of heavy rare earth oxides, and China has been turning Dy/Tb export restrictions on and off as a geopolitical weapon.Browns Range is one of the only credible ex-China sources of this stuff with a completed feasibility study and granted approvals.The September 2025 DFS indicated a Pre-tax NPV8 of A$187M (Base) rising to A$705M (Divergence), which doesn’t account for any government price or loan guarantee.So, why the wide price range? The price divergence between China and Ex-China supply.The DFS runs two pricing cases. The Base Case assumes a basket of US$107/kg (dysprosium at US$636/kg) and The Divergence Case assumes US$138/kg (Dy at US$820/kg) and the NPV jumps to A$705M. Since ~70% of the income is Dy and Tb, it all comes down to those two prices and there are now two of them. Inside China, dysprosium is only about US$190/kg, roughly 30% of what the Base Case needs, and it’s drifting lower as export controls trap supply at home. Outside China it’s a different story, dysprosium run ~US$900/kg by the time it reaches Western buyers. So the Base Case is really a bet that depressed Chinese prices triple, while the Divergence Case is a bet that the ex-China premium holds. The risk for the company of course is China dumping, which is why government support is important.Normally this is where I would stop and move on, since I usually feel like this risk is a bit problematic, but I believe it is sort of mitigated on several fronts.The special situation part of NTU is that it has spent two years dealing with a foreign-ownership clean-up driven by the Federal Treasurer.On 19 May 2026, the Treasurer issued fresh disposal orders covering ~17.58% of NTU’s shares held by six foreign Chinese shareholders, requiring them to divest with a hard date of 2 July 2026.Nearly a fifth of the company is being force-sold into a thin nano cap order book on a government deadline.That is why a stock with a completed DFS, granted approvals and national attention trades at less than 3 cents and less than half of its previous placement price in late 2025.Forced sellers don’t sell because the price is wrong, they sell because they’re made to. Once they’re cleared, deadline 2 July, the overhang that’s been capping the stock is gone, and the register is finally clean for the government money to land since this is a national strategic asset.In fact, it is such a strategic asset that NTU has partnered with someone to build a massive refinery. The Iluka Resources’ Eneabba refinery, Australia’s first integrated rare earth refinery, is being built with ~A$1.6bn of Federal Government support, indicating the strong national level support for this project. Iluka has a lot of reasons to continue to help push this project along with NTU.On top of this, the US–Australia Critical Minerals Framework has resulted in US EXIM issuing a Letter of Interest to consider up to US$230M of debt funding for NTU.So what’s the trade?The inflection is three things:The forced-seller overhang clears by 2 July 2026FID targeted by 30 September 2026Government-backed funding crystallisesConclusionThis setup could honestly go any which way, but if the catalysts hit, I expect this stock to multi-bag quickly.If you enjoyed this write-up, please like and restack.I don’t get paid to do this, so consider that my reward.Substack seems to throttle free article writers, which makes attracting new readers difficult. I do not want to charge for this substack, but the algorithm may end up requiring it. 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