Financial Data and Key Metrics Changes - Fiscal Year 2025 marked a transformative year for the company, transitioning from development to commercial readiness, with a robust after-tax NPV of $725 million and a 19% project IRR confirmed in the pre-feasibility study [2][3] - The after-tax NPV is approximately $469 million with a 16% project IRR, and free cash flow over the life of the mine is estimated at roughly $3.7 billion pre-tax [4] Business Line Data and Key Metrics Changes - The company successfully qualified its high-purity boric acid with 14 customers across various industries, including specialty glass and ceramics, indicating strong demand for U.S.-based boron supply [5][6] - Phase one targets 130,000 short tons per year of boric acid, with all-in sustaining costs estimated at $555 per ton and initial capital at about $435 million [4] Market Data and Key Metrics Changes - The company highlighted a significant supply chain risk in the U.S. boron market, with the second-largest boric acid producer experiencing a 60% cost increase since 2017 [10] - The market is characterized as an oligopoly, with the U.S. potentially transitioning from a net exporter to a net importer of boron without new investments [10] Company Strategy and Development Direction - The company is focused on advancing towards a final investment decision (FID) by mid-2026, with early FEED engineering activities already commenced [8][9] - The company aims to build a strong and resilient boric supply chain to support the U.S. industrial base for future generations [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamental need for a new market producer due to anticipated supply shortfalls beginning in 2026 [11] - The company is actively engaging with the U.S. Geological Survey to advocate for boron to be added to the critical minerals list, which is seen as essential for addressing supply chain concerns [10][18] Other Important Information - The company received a non-binding LOI from USXM for a potential $285 million project debt facility, a significant step towards funding phase one construction [3] - The company is in long-term offtake discussions and has completed logistics trials with a tier one specialty glass manufacturer [7] Q&A Session Summary Question: Can you review the comments you had about the disruption to the California boron mine? - Management noted that Rio Tinto announced a strategic review of their industrial minerals segment, which includes borates, following a restructuring [16] Question: What needs to happen to get boron on the U.S. Geological Survey critical minerals list? - Management explained that public comments were submitted during a 30-day window following the release of the draft list, with expectations for boron to be included [17][18]

1. Report Industry Investment Rating - Not provided in the report 2. Core Viewpoints of the Report - The Shanghai copper futures market is expected to be supported by converging supply and rising demand. The fundamentals suggest a slowdown in supply and a gradual recovery in demand, with a positive industry outlook [6]. - The cost - support logic for copper prices remains strong due to negative TC fees and rising raw material prices. Domestic refined copper production may decline slightly, while downstream demand is expected to recover due to macro - policy support and the approaching traditional consumption season [6]. - The overall inventory will remain at a medium - low level, and the inventory accumulated during the off - season will gradually be depleted as consumption picks up [6]. - The recommended strategy is to conduct short - term long trades at low prices with a light position, while controlling the trading rhythm and risk [6]. 3. Summary by Directory 3.1. Weekly Highlights - **Market Performance**: The Shanghai copper main contract rebounded slightly on the weekly line, with a weekly increase of +0.91% and an amplitude of 1.5%. The closing price of the main contract was 79,410 yuan/ton [6]. - **International and Domestic Policies**: The US included copper in the 2025 critical minerals list. In China, policies are being improved to expand domestic demand and support enterprise innovation and employment [6]. - **Fundamentals**: TC fees are negative, and raw material prices are rising, providing cost support for copper prices. Domestic copper concentrate port inventory is low, and refined copper production may decline. Export demand may fall due to US tariffs, while domestic demand is expected to recover [6]. 3.2. Spot - Futures Market - **Contract and Spot Prices**: As of August 29, 2025, the Shanghai copper main contract had a basis of - 20 yuan/ton, a decrease of 160 yuan/ton from last week. The main contract price was 79,410 yuan/ton, an increase of 720 yuan/ton from last week, and the position was 173,826 lots, an increase of 52,924 lots. The 1 electrolytic copper spot average price was 79,390 yuan/ton, a decrease of 195 yuan/ton from last week [11][15]. - **Premium and Position**: The Shanghai electrolytic copper CIF average premium was 60 US dollars/ton, an increase of 3 US dollars/ton from last week. The net position of the top 20 in Shanghai copper was a net short of - 12,236 lots, a decrease of 10,323 lots from last week [22]. - **Implied Volatility**: As of August 29, 2025, the short - term implied volatility of the Shanghai copper at - the - money option contract fell to around the 25th percentile of historical volatility. The put - call ratio of Shanghai copper option positions was 0.8325, a decrease of 0.0184 from last week [27]. 3.3. Industry Situation 3.3.1. Upstream - **Mining Quotes and Processing Fees**: The copper concentrate quote in the main domestic mining area (Jiangxi) was 69,660 yuan/ton, a decrease of 40 yuan/ton from last week. The southern rough copper processing fee was 700 yuan/ton, a decrease of 100 yuan/ton from last week [30]. - **Imports and Price Difference**: As of July 2025, the monthly import volume of copper ore and concentrates was 2.5601 million tons, an increase of 210,500 tons from June, a growth rate of 8.96%, and a year - on - year increase of 18.41%. The refined - scrap copper price difference (tax - included) was 1,415.68 yuan/ton, an increase of 378.84 yuan/ton from last week [35]. - **Global Production and Inventory**: As of June 2025, the global monthly production of copper concentrates was 1,916 thousand tons, a decrease of 81 thousand tons from May, a decline of 4.06%. The global capacity utilization rate was 79%, a decrease of 0.9% from May. The inventory of copper concentrates in seven domestic ports was 473,000 tons, an increase of 51,000 tons from the previous period [40]. 3.3.2. Supply - side of the Industry - **Refined Copper Production**: As of July 2025, the monthly production of refined copper in China was 1.27 million tons, a decrease of 32,000 tons from June, a decline of 2.46%, and a year - on - year increase of 15.14%. As of May 2025, the global monthly production of refined copper (primary + recycled) was 2,395 thousand tons, an increase of 40 thousand tons from April, a growth rate of 1.7%. The capacity utilization rate was 80.1%, a decrease of 1.8% from April [45]. - **Refined Copper Imports**: As of July 2025, the monthly import volume of refined copper was 335,969.236 tons, a decrease of 1,073.33 tons from June, a decline of 0.32%, and a year - on - year increase of 12.05%. The import profit and loss amount was 413.3 yuan/ton, an increase of 333.66 yuan/ton from last week [50][51]. - **Social Inventory**: As of the latest data, the LME total inventory increased by 1,975 tons from last week, the COMEX total inventory increased by 2,726 tons from last week, and the SHFE warehouse receipts decreased by 2,736 tons from last week. The total social inventory was 127,900 tons, an increase of 7,900 tons from last week [54]. 3.3.3. Downstream and Application - **Copper Products**: As of July 2025, the monthly production of copper products was 2.1694 million tons, a decrease of 45,100 tons from June, a decline of 2.04%. The monthly import volume of copper products was 480,000 tons, an increase of 20,000 tons from June, a growth rate of 4.35%, and a year - on - year increase of 9.09% [58]. - **Application Fields**: - **Power Grid and Appliances**: As of July 2025, the cumulative year - on - year growth rates of power and grid investment completion were 3.4% and 12.5% respectively. The monthly production values of washing machines, air conditioners, refrigerators, freezers, and color TVs increased by 2.4%, 1.5%, 5%, 2.9%, and - 6.5% year - on - year respectively [64]. - **Real Estate and Integrated Circuits**: As of July 2025, the cumulative real estate development investment completion was 5.358 trillion yuan, a year - on - year decrease of 12% and a month - on - month increase of 14.84%. The cumulative production of integrated circuits was 294.6 million pieces, a year - on - year increase of 10.4% and a month - on - month increase of 23.02% [71]. 3.3.4. Overall Situation - **Global Supply - Demand**: As of June 2025, according to ICSG statistics, the global supply - demand balance was in a state of oversupply, with a monthly value of 36 thousand tons. According to WBMS statistics, the cumulative global supply - demand balance value was 46,500 tons [76].

Report Summary 1) Report Industry Investment Rating No information provided on the industry investment rating. 2) Report's Core View The report focuses on the polycrystalline silicon market, where market sentiment is cooling, and it suggests paying attention to the upstream production cut expectations. It also provides detailed fundamental data on industrial silicon and polycrystalline silicon, as well as macro and industry news [1]. 3) Summary by Relevant Catalogs a. Fundamental Tracking - **Futures Market Data**: For industrial silicon, the Si2511 contract has a closing price of 8,515 yuan/ton (down 160 yuan from T - 1), a trading volume of 450,290 lots (down 25,321 lots from T - 1), and an open interest of 281,839 lots (down 7,286 lots from T - 1). For polycrystalline silicon, the PS2511 contract has a closing price of 50,985 yuan/ton (down 595 yuan from T - 1), a trading volume of 265,820 lots (down 94,702 lots from T - 1), and an open interest of 137,478 lots (up 677 lots from T - 1) [1]. - **Spot Price and Basis**: The spot price of Xinjiang 99 - silicon is 8,650 yuan/ton, and the spot price of Yunnan Si4210 is 9,750 yuan/ton. The polycrystalline silicon - N - type re - feedstock price is 49,000 yuan/ton. The industrial silicon has different spot premiums or discounts against different benchmarks [1]. - **Profit and Inventory**: Silicon factory profits in Xinjiang and Yunnan are negative, with - 2,626 yuan/ton and - 3,321 yuan/ton respectively. The industrial silicon social inventory is 54.3 million tons, and the enterprise inventory is 17.5 million tons. The polycrystalline silicon factory inventory is 24.9 million tons [1]. - **Raw Material Costs**: The prices of raw materials such as silicon ore, washed coal, petroleum coke, electrodes, and trichlorosilane are provided, with some showing no change and others having slight fluctuations [1]. - **Downstream Product Prices and Profits**: The prices of downstream products like silicon wafers, battery cells, components, photovoltaic glass, and EVA are presented, along with the profits of polycrystalline silicon enterprises, DMC enterprises, and recycled aluminum enterprises [1]. b. Macro and Industry News The US government proposed to include copper, silicon, silver, etc. in the 2025 critical minerals list. The US Geological Survey published a draft list of 54 minerals and will solicit public comments within 30 days. Six minerals are newly proposed to be added, and arsenic and tellurium are suggested to be removed [2]. c. Trend Intensity The trend intensity of industrial silicon is - 1, indicating a weak bearish outlook, while the trend intensity of polycrystalline silicon is 0, indicating a neutral outlook [3].

Report Industry Investment Ratings - Copper: ★☆☆ [1] - Aluminum: ★☆☆ [1] - Alumina: ★★★ [1] - Cast Aluminum Alloy: ★★★ [1] - Zinc: ☆☆☆ [1] - Nickel and Stainless Steel: ☆☆☆ [1] - Tin: ★☆☆ [1] - Lithium Carbonate: ★☆☆ [1] - Industrial Silicon: ☆☆☆ [1] - Polysilicon: ☆☆☆ [1] Core Views - The market conditions of various non - ferrous metals are complex, with different trends and influencing factors for each metal. The report provides specific analysis and investment suggestions for each metal based on supply - demand fundamentals, macro - economic factors, and technical analysis [2][3][4] Summary by Metal Copper - Tuesday, Shanghai copper warehouse receipts gave back the previous day's gains, with spot copper at 79,585 yuan. The US included copper in the 2025 critical minerals list. The integer - level resistance of Shanghai copper is strong, and high - position short positions should be held [2] Aluminum - Today, Shanghai aluminum fluctuated narrowly. The spot in East China fell to par. At the beginning of the week, the social inventory of aluminum ingots increased by 20,000 tons, and that of aluminum rods by 9,000 tons. The downstream start - up seasonally recovered. In the short - term, Shanghai aluminum will maintain a volatile trend, with resistance in the 20,800 - 21,000 yuan area. From late August to September, the expectation of smelter production cuts and overhauls increases, and there is still a regional supply shortage. The short - term fundamentals of aluminum are improving, but the rebound space is limited. It is expected to fluctuate narrowly in the range of 16,600 - 17,300 yuan/ton [3][6] Alumina - The operating capacity of alumina is at a historical high, with increasing industry inventory and SHFE warehouse receipts. Supply surplus is emerging. The spot in the north has fallen below 3,200 yuan. Alumina is in a weak - volatile state, with support at 3,000 yuan. If the futures - spot discount continues to widen, short - term long positions can be considered [3] Zinc - The increase in global mine supply is being realized, and TC continues to rise. Domestic smelters are highly motivated to increase production. The short - position space for mine profits in the futures market still exists. The spot is at a discount to the futures. Zinc inventory is becoming more visible. Shanghai zinc is under downward pressure. Wait for short - selling opportunities after a rebound [4] Nickel and Stainless Steel - Shanghai nickel rebounded slightly, with dull market trading. Traders are reluctant to lower prices. The inventory of pure nickel decreased to 41,000 tons, and that of nickel - iron remained at 33,000 tons. The stainless - steel inventory is at 934,000 tons. Technically, nickel prices still have the intention to rebound, but the fundamentals are weak. Look for short - selling positions [7] Tin - Shanghai tin increased positions slightly and closed below 270,000 yuan. Spot tin rose to 270,000 yuan. It is expected that tin prices still have the potential to rise in the short term, and long positions can be held based on the MA60 moving average [8] Lithium Carbonate - The futures price of lithium carbonate corrected, and market trading shrank. The total market inventory decreased slightly to 142,000 tons. The mid - stream production decreased by 5% week - on - week. Take a bullish view with risk control [9] Industrial Silicon - The industrial silicon futures decreased positions and declined. The market sentiment was affected by the weakening of coking coal prices. The supply in Xinjiang, Sichuan, and Yunnan increased this month, and the demand also followed up. The short - term sentiment fluctuations make the futures price weak, and the support at 8,300 yuan/ton should be observed [10] Polysilicon - Polysilicon futures continued to fluctuate. After last week's industry meeting, the spot price of N - type re - feeding materials rose to 49,000 yuan/ton. The inventory pressure of polysilicon is greater than that of silicon wafers. It is expected to maintain range - bound fluctuations in the short term, and the strategy of buying on dips can be continued [11]

Report Industry Investment Ratings - Copper: ★☆☆ [1] - Aluminum: ★☆☆ [1] - Alumina: ★★★ [1] - Cast Aluminum Alloy: ★★★ [1] - Zinc: ☆☆☆ [1] - Nickel and Stainless Steel: ☆☆☆ [1] - Tin: ★☆☆ [1] - Lithium Carbonate: ★☆☆ [1] - Industrial Silicon: ☆☆☆ [1] - Polysilicon: ☆☆☆ [1] Core Views - The report provides daily analysis of various non - ferrous metals, including market trends, supply - demand fundamentals, and investment suggestions for each metal [2][3][4] Summary by Metal Copper - Tuesday saw Shanghai copper contract give back the previous day's gains, with spot copper at 79,585 yuan, and premiums in Shanghai and Guangdong at 130 and 65 yuan/ton respectively [2] - The US included copper in the 2025 critical minerals list, which may make related projects eligible for federal funding or simplified licensing procedures [2] - Shanghai copper faces strong resistance at the integer level, and short positions at high levels are recommended to be held [2] Aluminum - On the day, Shanghai aluminum fluctuated narrowly, with East China spot prices falling to par [3] - At the end of August to September, there is an increasing expectation of smelter production cuts and maintenance, and transportation restrictions in central and northern China lead to regional supply shortages [6] - The short - term fundamentals of aluminum are improving, but the high inventory of the outer market and the insufficient expected increase in domestic lead - acid battery consumption limit the rebound space [6] - It is expected to fluctuate narrowly in the range of 16,600 - 17,300 yuan/ton [6] Alumina - The operating capacity of alumina is at a historical high, and both industry inventory and SHFE warehouse receipts are rising [3] - Supply surplus is emerging, with northern spot transactions falling below 3,200 yuan, and alumina is in a weak and volatile state [3] - The 3,000 - yuan level provides temporary support, and short - term long positions can be considered if the futures discount continues to widen [3] Zinc - Overseas and domestic mine - end increments are being realized, TC continues to rise, and domestic smelters are highly motivated to increase production [4] - The spot price is at a discount to the futures price, and zinc inventory is continuously becoming visible, putting pressure on Shanghai zinc [4] - With the approaching peak season in September and the expected Fed rate cut, the macro - level is slightly optimistic, but it does not resonate well with the supply - increase and demand - weak fundamentals [4] Nickel and Stainless Steel - Shanghai nickel rebounded slightly, with dull market trading [7] - Traders have a strong willingness to support prices, and the premium range of mainstream electrowon nickel remains at - 100 - 300 yuan/ton this week [7] - Pure nickel inventory decreased by 1,000 tons to 41,000 tons, nickel - iron inventory remained at 33,000 tons, and stainless steel inventory remained at 934,000 tons [7] Tin - Shanghai tin increased positions slightly and closed with a positive line just below 270,000 yuan [8] - Spot tin rose to 270,000 yuan, at par with the 2509 contract, and the strength of spot pricing should be monitored [8] - Tin prices still have the intention to rebound, and long positions can be held based on the MA60 moving average [8] Lithium Carbonate - The futures price of lithium carbonate declined, and market trading shrank [9] - Some miners sold goods during the futures price increase, and there was sporadic auction supply [9] - After the futures price dived, there was temporary reluctance to sell, and the market is bullish in the short - term with risk control [9] Industrial Silicon - The industrial silicon futures decreased positions and declined, affected by the weakening coking coal price and the stable expectation of polysilicon capacity management policy [10] - In terms of fundamentals, supply in Xinjiang, Sichuan, and Yunnan increased this month, and demand also followed up, with a significant increase in polysilicon production scheduling in August [10] - The short - term sentiment makes the futures price weak, and the support level at 8,300 yuan/ton should be observed [10] Polysilicon - Polysilicon futures continued to fluctuate [11] - After last week's industry meeting, the spot price of N - type re -投料 rose to 49,000 yuan/ton, and actual transactions need to be tracked [11] - The inventory pressure of polysilicon is greater than that of silicon wafers, and production scheduling in August is likely to decline to repair the supply - demand structure [11]

Core Viewpoint - The A-share market experienced a pullback after two consecutive days of gains, with the Shanghai Composite Index closing down 0.39% at 3868.38 points, and trading volume significantly decreased by 462.1 billion yuan to 26,790 billion yuan. Key mineral stocks such as potassium fertilizer, tungsten, rare earths, and molybdenum have performed well this year. The U.S. government proposed adding six minerals, including copper and potassium fertilizer, to its critical mineral list for 2025, highlighting their importance to the economy and national security [1]. Group 1: Market Performance - The Shanghai Composite Index fell by 0.39% to close at 3868.38 points after two days of gains [1] - Trading volume in the Shanghai and Shenzhen markets decreased significantly by 462.1 billion yuan to 26,790 billion yuan [1] - Key mineral stocks, including potassium fertilizer, tungsten, rare earths, and molybdenum, have shown strong performance this year [1] Group 2: U.S. Mineral Policy - The U.S. government proposed to include copper, potassium fertilizer, silicon, silver, lead, and rhenium in the 2025 critical mineral list, which consists of a total of 54 minerals [1] - The U.S. Geological Survey published this draft list in the Federal Register and will seek public comments for 30 days [1] Group 3: Futures Market and Competitions - In the futures market, "anti-involution" products such as alumina, coking coal, industrial silicon, polysilicon, and coke saw significant declines [1] - The "Jingliang Cup - National Futures Simulation Competition" is ongoing, with participants achieving notable returns, such as a 56.9% profit in two days by one contestant [2][3] - The competition aims to help investors understand and learn about futures trading, providing a "zero-cost trial and high-reward growth" opportunity [10]

Core Points - The U.S. Department of the Interior has proposed adding six minerals, including copper, silicon, silver, and potassium, to the 2025 critical minerals list, emphasizing their importance for the U.S. economy and national security [1][3][4] - The proposal aims to reduce U.S. dependence on imports and expand domestic production, coinciding with a rise in electricity demand driven by data centers and artificial intelligence [3][4] - The critical minerals list is typically updated every three years, and the inclusion of these minerals will provide various policy advantages, such as federal funding support and streamlined permitting processes [4] Summary by Category Proposed Additions - The six minerals proposed for addition are copper, potassium, silicon, silver, lead, and rhenium, which are deemed strategically significant for economic development and national security [4] - Copper is highlighted for its essential role in electrical networks, transportation, and defense, while potassium is crucial for fertilizer production and agricultural safety [4] Exclusions and Public Feedback - Metallurgical coal and uranium, despite earlier considerations for inclusion, were not added to the list, although public feedback is welcomed during the 30-day comment period [5][6] - Arsenic and tellurium are recommended for removal from the critical minerals list [6] Policy Implications - Resources included in the critical minerals list will benefit from federal funding, simplified permitting processes, and enhanced competitiveness for domestic companies due to import tariffs [4]