Summary of Key Points from Conference Call Records Industry Overview - The conference call primarily discusses the tin mining industry, focusing on supply constraints, geopolitical risks, and market dynamics affecting tin prices and production levels [1][3][4]. Core Insights and Arguments Supply Constraints - Tin supply is constrained, with Myanmar's Wa State production recovery below expectations, achieving only 60%-70% of pre-ban capacity due to regulatory hurdles and profit-sharing issues [1][6]. - The global third-largest tin mine, Bisie in the Democratic Republic of Congo (DRC), is affected by M23 armed conflict, leading to unmet production targets for 2025 and limited growth in 2026 [1][8]. - China's tin import structure has shifted dramatically, with Myanmar's share dropping from 80% to less than 30%, while the DRC has become the largest supplier at 28% [1][10]. Profitability and Cost Pressures - Smelting profits are under pressure due to low Treatment Charges (TC), with some small to medium enterprises reducing or halting production [1][3][13]. - The cost of tin mining in Wa State has increased to 190,000-310,000 CNY per ton, with declining ore grades supporting a long-term cost increase [2][19]. Demand Dynamics - Demand is structurally diverging, with traditional sectors like construction suffering from declining sales, while emerging sectors like AI and semiconductors have not yet fully compensated for this decline [1][3][14]. - A slight global tin deficit of 5,000-7,000 tons is expected to persist through 2025-2026 [1][19]. Additional Important Insights Geopolitical Risks - The geopolitical situation in the DRC remains unstable, with ongoing conflicts affecting production and supply chain stability [8][9]. - The M23 conflict has led to temporary disruptions in mining and processing activities, although the overall impact on the Bisie mine has been limited [9][10]. Regulatory Changes - The Wa State has undergone significant regulatory changes, transitioning from a complete mining ban to partial reopening and tax reforms that have altered export tax structures [5][6]. - The new tax regime has removed restrictions on export grades, allowing for higher quality exports without additional tax burdens [5]. Inventory and Market Sentiment - Domestic tin inventories are currently high due to the realization of "hidden inventories" and delivery of hedged short positions, rather than a reflection of weak demand [2][18][23]. - The market sentiment is influenced by geopolitical risks and supply chain costs, which may overshadow traditional inventory-demand relationships [23]. Future Outlook - The recovery of tin production in Myanmar and the DRC's ability to meet production targets will be critical in determining the supply-demand balance in the coming years [19]. - The potential for increased production from secondary resources (recycled tin) is limited due to economic pressures on recycling operations [20]. This summary encapsulates the key points discussed in the conference call, highlighting the challenges and dynamics within the tin mining industry.

1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report - The global tin ore cost center is expected to rise, with a structural increase in costs. The direct cash cost is expected to grow steadily by 55% in 8 years, and the full cost will more than double [3][5]. - Tin ore (ingot) costs vary across different regions in China. Costs in most regions around the world are rising, with a significant gap between high - and low - cost production areas. Currently, tin prices have a certain premium compared to mine - end costs, and the pricing logic has shifted [31][34][37]. 3. Summary by Directory Global Tin Ore Cost Overview - According to ITA statistics, in 2022, the 90th - percentile cash cost and full cost of global tin ore were $23,171/ton ($161,164/ton) and $25,581/ton ($177,926/ton) respectively. It is expected that by 2030, they will rise to $36,000/ton ($250,394/ton) and $54,000/ton ($375,592/ton) [5]. China - Tin ore resources are mainly distributed in Yunnan, Guangxi, and Inner Mongolia. Representative companies are Yunnan Tin, Xingye Yinxing, and Huaxi Non - ferrous. In 2024, Yunnan Tin's tin ingot cost was about 165,500 yuan/ton, with a 3 - year CAGR of - 6.71%; Huaxi's tin concentrate cost was about 92,200 yuan/metal ton, with a 2 - year CAGR of 5.57%; Xingye's tin production cost was about 43,700 yuan/ton, with a year - on - year growth rate of - 27.78% [9]. Myanmar (Wa State) - In the long - term, as mining continues, the open - pit tin mines in Myanmar are shifting to underground mining, resulting in higher costs and lower ore grades. Currently, low ore grades (down to 1% - 2%, some as low as 0.8%), shortages of supplies, and a 30% physical tax are pushing up the cost of tin ore mining [10][12]. Indonesia - Indonesia is the world's second - largest tin - reserve country. PT Timah, the largest tin company in Indonesia, has seen a decline in tin ore production in recent years. The cash cost of tin ingots has decreased from about 157,032 yuan/ton in 2022 to 124,390 yuan/ton in 2024, but it is still relatively high compared to low - cost production areas in Africa [16]. Congo (Kinshasa) - The Bisie tin mine is the largest core mine in Congo (Kinshasa) and one of the highest - grade tin mines in the world, with significant low - cost characteristics. Although the ore grade has declined in recent years, it remains above 3%. The AISC cost has increased in the past two years, with a 4 - year CAGR of about 2.92% [22]. Australia (Renison Project) - Renison is the only operating tin mine in Australia. In 2024, its tin production was 11,006 tons, accounting for about 2.94% of the global total. The AISC cost in 2024 was about 140,778 yuan/metal ton, with a 3 - year CAGR of about 9.57%, but it is still significantly lower than the current tin price [27]. South America - Peru's San Rafael tin mine has a cash cost of about 40,931 yuan/metal ton, with a 3 - year CAGR of about - 1.61%. Brazil's Pitinga tin - niobium - tantalum polymetallic mine, after including niobium - tantalum ore costs, has a cash cost of about 108,760 yuan/metal ton, with a 3 - year CAGR of about + 19.50% [30]. Global Cost Comparison - Most regions around the world are experiencing cost increases, except for Peru, Indonesia (tin ingots), and some Chinese companies. High - cost tin mines are mainly in Asian regions such as Myanmar, while low - cost tin mines are in African regions such as Congo (Kinshasa), Australian regions, and South American regions such as Brazil and Peru [34]. Tin Price and Cost Relationship - According to ITA predictions, by 2027, the 50th - percentile, 75th - percentile, and 90th - percentile lines of the global tin ore full - cost curve will be slightly above $20,000/ton, about $25,000/ton, and about $33,800/ton respectively. As of the end of January 2026, the LME 3M tin price has reached about $55,000/ton, higher than the full cost of 95% of tin mines, providing profit margins for most tin mines. The tin price has deviated from the 90th - percentile cost, indicating a shift in the pricing logic [37].