Summary of Conference Call Notes on Metals & Mining Industry Industry Overview - The copper equities have experienced a significant rally of **58% YTD** (COPX), driven by increased investor confidence regarding tighter supply and demand dynamics due to mine disruptions and resilient demand from China, alongside a weaker USD and expectations of a FED rate cut cycle [1][33]. Key Companies and Their Ratings - **First Quantum, HudBay Minerals, and Ero Copper** are rated as **Buy**, indicating attractive risk-reward profiles despite the recent rally [2]. - **Grupo Mexico** is rated **Neutral**, trading at a historical discount to NAV, suggesting a balanced risk-reward scenario [2]. - **Capstone Copper** is rated **Neutral**, with limited upside potential after a significant price increase since April [2]. - **Southern Copper (SCCO)** is rated **Sell** due to high valuation, despite being well-positioned to benefit from rising copper prices [2]. Valuation Methodology Adjustments - The valuation methodology for copper coverage has been adjusted to reflect increased confidence in short-term supply/demand tightness and structural deficits. The new approach is a **50/50 blend of EV/EBITDA and DCF**, with EV/EBITDA multiples at **+1 standard deviation** above the 5-year historical average [3]. Company-Specific Insights Capstone Copper - **3Q25 Forecast**: EBITDA expected at **$205M** (-5% q/q; +70% y/y), impacted by lower production and higher unit costs [51]. - **Production and Sales**: Total copper production forecasted at **12kt**, with C1 cash cost at **$3.81/lb** [52]. Ero Copper - **3Q25 Forecast**: EBITDA expected at **$81M** (-2% q/q; +30% y/y), with production growth offset by cost increases [55]. - **Production and Sales**: Copper production forecasted at **10kt**, with C1 cash cost at **$2.35/lb** [56]. First Quantum Minerals - **3Q25 Forecast**: EBITDA expected at **$512M** (+28% q/q; -2% y/y), driven by higher shipments from Cobre Panama [57]. - **Production and Sales**: Copper production forecasted at **45kt**, with C1 cash cost at **$1.7/lb** [59]. HudBay Minerals - **3Q25 Forecast**: EBITDA expected at **$167M** (-32% q/q; -19% y/y), affected by lower shipments due to operational challenges [60]. - **Production and Sales**: Copper production forecasted at **20kt** [62]. Southern Copper - **3Q25 Forecast**: EBITDA expected at **$1,907M** (+7% q/q; +13% y/y), with stable copper price realization [64]. Market Dynamics - The copper market is perceived to be in a **small surplus** for 2025, with expectations of flat global mine production and challenges in supply growth [33][34]. - Concerns regarding **China's domestic demand** have emerged, with a reported **-2% y/y** decline in September [39][41]. - The **COMEX-LME arbitrage** is expected to create temporary upside risks to copper prices, with forecasts ranging between **$10,000-$11,000** for 2026/2027 [42][44]. Conclusion - The copper market is currently characterized by a strong rally in equities, driven by supply constraints and demand dynamics. Key players are adjusting their strategies and valuations in response to these market conditions, with varying outlooks based on company-specific factors and broader economic indicators.

Core Insights - T2 Metals Corp is participating in two significant mining conferences in Munich, Germany, to showcase its North American gold and copper assets [2][4] - The MK Investment Conference on October 1st is an exclusive event aimed at connecting resource and technology companies with strategic investors [3] - The Munich Mining Conference on October 3rd and 4th will feature over 100 companies and attract an audience of more than 1000 investors from Europe [5] Company Assets - T2 Metals will present its key projects, including: - **Shanghai Project, Yukon**: A newly acquired gold and silver project located in the Tombstone Gold Belt, near other significant assets [6] - **Sherridon Project, Manitoba**: A historical mining area in the Flin Flon Greenstone Belt, containing two former mines and five historical copper resources, situated 70 km from HudBay Minerals' Lalor gold mine [6] - **Cora Project, Arizona**: A porphyry copper target known for its thick intersections of oxide copper and a notable geophysical anomaly [7] Company Overview - T2 Metals Corp is focused on enhancing shareholder value through exploration and discovery in the copper and precious metals sector, with a particular emphasis on the Sherridon, Shanghai, and Cora projects [8]

Core Insights - HudBay Minerals (HBM) and Wheaton Precious Metals Corp. (WPM) are both strong contenders in the Mining - Miscellaneous sector, with a focus on identifying which stock offers better value for investors [1][3] Valuation Metrics - HBM has a forward P/E ratio of 14.90, while WPM has a significantly higher forward P/E of 41.00 [5] - HBM's PEG ratio stands at 0.29, indicating a more favorable valuation relative to its expected earnings growth, compared to WPM's PEG ratio of 2.66 [5] - HBM's P/B ratio is 1.49, which is much lower than WPM's P/B ratio of 5.51, suggesting that HBM is undervalued compared to its book value [6] Investment Outlook - Both HBM and WPM have a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - Despite both companies having solid earnings prospects, HBM is identified as the superior value option based on its valuation metrics, with a Value grade of A compared to WPM's Value grade of F [6]

Group 1 - RBC Capital Markets analysts noted that copper inflow into the U.S. has supported a price surge of approximately 11% since early 2025, outperforming global copper prices [1] - North American copper stocks have risen about 9% year-to-date, with Capstone Mining Corp and HudBay Minerals identified as the most favored stocks in the sector [1] - The announcement of a potential investigation into new tariffs on copper imports by President Trump in February has contributed to the increase in copper prices, as copper is essential for various products from electric vehicles to power grids [1] Group 2 - The U.S. copper imports totaled over 123,000 tons in March, significantly higher than 58,000 tons in February and 76,000 tons in January [1] - RBC strategists indicated signs of weakening demand and supply for copper, suggesting that if tariffs are not continued, it could act as a negative catalyst for prices [1] - Short-term risks to copper prices are highlighted due to the potential continuation of Trump's aggressive trade agenda and a slowdown in the construction industry during the summer [2]