Report Information - Report Title: Precious Metals Daily Review - Date: February 26, 2026 - Research Team: Macro Finance Team - Researchers: He Zhuoqiao (Macro Precious Metals), Huang Wenxin (Treasury Bonds and Container Shipping), Nie Jiayi (Stock Index) [2] 1. Investment Rating - No investment rating for the industry is provided in the report. 2. Core Viewpoints - The long - term upward driving force of precious metals remains unchanged, and the precious metals sector has shown signs of recovery from the sharp decline at the end of January. Investors are advised to maintain a bullish trading approach but should control positions to avoid short - term volatility risks [4][6]. - The appointment of the next Fed Chair has a reasonable impact on the correction of precious metals. The long - term and medium - term bull market of gold is maintained, and silver, platinum, and palladium are stronger than gold in the medium - term. However, investors should be vigilant against the risk of the Fed tightening monetary policy due to overheating of the US economy and rising inflation [6]. 3. Summary by Directory 3.1 Precious Metals Market Conditions and Outlook 3.1.1 Intraday Market - Trump's administration has not implemented the 15% Section 122 temporary tariff, and the situation between the US and Iran shows a possibility of easing. Gold rose first and then fell overnight but remained above $5150 per ounce. The silver, platinum, and palladium prices were pushed up by the recovery of industrial demand expectations and the strategic value expectations of key minerals [4]. 3.1.2 Domestic Precious Metals Market Data | Contract | Pre - closing Price | Highest Price | Lowest Price | Closing Price | Change (%) | Open Interest | Change in Open Interest | | --- | --- | --- | --- | --- | --- | --- | --- | | Shanghai Gold Index | 1,152.83 | 1,156.18 | 1,136.50 | 1,152.60 | - 0.02% | 311,137 | 5,824 | | Shanghai Silver Index | 22,119 | 23,132 | 21,648 | 22,859 | 3.35% | 531,053 | 28,542 | | Guangzhou Platinum Index | 549.80 | 590.72 | 550.85 | 584.43 | 6.30% | 26,569 | 802 | | Guangzhou Palladium Index | 437.83 | 461.61 | 441.97 | 457.03 | 4.39% | 9,242 | 172 | [5] 3.1.3 Medium - term Market - The appointment of the next Fed Chair eliminates the market's hedging demand for uncertainty, and the hawkish policy stance eases concerns about the loss of US fiscal discipline. The correction of precious metals is reasonable, and the previous sharp rise needs a large retracement. The hawkish stance has no fundamental impact on the long - term bull market of gold, and may mainly compress the duration of the medium - term bull market. It is bullish for silver, platinum, and palladium compared to gold [6]. 3.2 Precious Metals Market - related Charts - The report provides multiple charts, including Shanghai gold and silver futures indices, London gold and silver spot prices, Shanghai futures index basis against Shanghai Gold Exchange TD, gold and silver ETF holdings, gold - silver ratio, and the correlation between London gold and other assets [8][10][16] 3.3 Main Macroeconomic Events/Data - The US started to levy a new 10% global temporary import tariff on Tuesday, and the Trump administration is trying to raise it to 15%, which has caused confusion about US trade policy [17]. - The Trump administration plans to use an AI program developed by the Pentagon to set reference prices for key minerals to promote the establishment of a global metal trading area, initially focusing on at least four key minerals (germanium, gallium, antimony, and tungsten) [17]. - During the nine - day Spring Festival holiday in 2026, the number of domestic tourists reached 596 million, an increase of 95 million compared to the eight - day holiday last year, and the total domestic tourism expenditure was 803.483 billion yuan, an increase of 126.481 billion yuan. However, the daily per - capita expenditure was 150 yuan, less than 169 yuan last year [17]. - Trump's preferred option for Iran is diplomacy, but he is willing to use force if necessary. The Iranian Foreign Minister said that an agreement with the US is within reach, but diplomacy must be the top priority [18]

Core Viewpoint - USAC has proposed a non-binding all-stock acquisition of Larvotto, offering 6 shares of USAC for every 100 shares of Larvotto, which represents a significant premium for Larvotto shareholders [1][3][4]. Group 1: Acquisition Proposal - The acquisition aims to create one of the largest antimony producers outside of China, reflecting USAC's commitment to building a world-class enterprise in critical minerals [3][6]. - The proposed exchange ratio offers a notable premium compared to Larvotto's recent financing price and trading range [4][6]. - The transaction will follow the Australian Corporations Act 2001 and requires formal agreements, shareholder approval, regulatory approval, and customary closing conditions [4][5]. Group 2: Strategic Positioning - The merger with Larvotto is seen as a strategic move to enhance USAC's position in the critical minerals sector, particularly in antimony, which is increasingly important in global supply chains [3][6]. - USAC's CEO emphasized the opportunity for Larvotto shareholders to participate in a larger, more diversified group with financial strength and global influence [6]. Group 3: Business Operations - USAC operates processing facilities in Montana and Mexico, producing antimony oxide, metallic antimony, and other critical minerals [7]. - The company also recovers precious metals, primarily gold and silver, from third-party ores at its facilities [7]. - USAC is expanding its operations by acquiring mineral rights and leases in Montana, Alaska, and Ontario during 2024 and 2025 [7].

Core Viewpoint - USAC has submitted a non-binding acquisition proposal to acquire 100% of Larvotto Resources Limited through an all-stock transaction, aiming to create one of the largest antimony producers outside of China [1] Transaction Structure - The acquisition proposal involves a share exchange ratio where Larvotto shareholders will receive 6 shares of USAC for every 100 shares of Larvotto [3] - This exchange ratio represents a significant premium compared to Larvotto's recent financing price announced on July 25, 2025, and its recent trading price range [3] Regulatory and Approval Process - The transaction will be conducted under the Australian Corporations Act 2001 and requires several conditions to be met, including the signing of a binding implementation agreement, approval from Larvotto shareholders, regulatory approvals, and customary closing conditions [4] - USAC has already acquired approximately 10% of Larvotto's issued capital in the open market, making it the largest single shareholder [4] Strategic Positioning - The merger with Larvotto is positioned to create one of the largest antimony producers globally outside of China, reflecting USAC's commitment to becoming a world-class player in critical minerals [5] - The CEO of USAC emphasized that this merger presents a compelling opportunity for Larvotto shareholders to participate in a larger, more diversified group with financial strength and global influence [5] Business Diversification - USAC operates in the critical minerals sector, producing antimony, cobalt, tungsten, and zeolite, with processing facilities in Montana and Mexico [6] - The company processes third-party ores into various products, including antimony oxide, metallic antimony, and precious metals, which are used in a wide range of applications such as flame retardants and military materials [6] - USAC is also expanding its operations by acquiring mineral rights and leases in Montana, Alaska, and Ontario during 2024 and 2025 [6]