Investment Rating - The report recommends a "Buy" rating for the industry, predicting that the industry index will outperform the Shanghai Composite Index by 10% or more in the upcoming period [5]. Core Insights - In Q2 2025, the company produced 85,892 tons of lithium concentrate, a 10% decrease from Q1 2025, while sales increased by 4% to 97,330 tons [1][2]. - The average realized price for lithium concentrate (SC6) in Q2 2025 was $740 per ton, down 9% from $815 in Q1 2025 [2]. - The unit operating cost (FOB) for sold lithium concentrate rose by 31% to $576 per ton, reflecting increased sorting costs and reduced inventory [2]. - The company reported a revenue of 96 million AUD in Q2 2025, an 8% decrease from 104 million AUD in Q1 2025, primarily due to the decline in average realized prices [3]. Production and Sales Summary - Q2 2025 lithium concentrate production: 85,892 tons, down 10% from Q1 2025 [1]. - Q2 2025 lithium concentrate sales: 97,330 tons, up 4% from Q1 2025 [1]. - Q2 2025 average realized price for SC6: $740 per ton, down from $815 in Q1 2025 [2]. - Q2 2025 unit operating cost (FOB): $576 per ton, up from $440 in Q1 2025 [2]. - Q2 2025 cash balance: 156 million AUD [4]. Financial Metrics - Q2 2025 net cash inflow from operating activities: 23 million AUD [7]. - Q2 2025 net cash outflow limited to 17 million AUD due to business optimization efforts [7]. - Expected non-cash impairment of inventory between 75 million to 85 million AUD for the fiscal year 2025 [8]. Future Guidance - For FY 2026, production guidance is set at 365,000 to 450,000 tons, reflecting a growth of 24% to 53% compared to FY 2025 [10]. - The company plans to transition to 100% underground mining operations in FY 2026, focusing on operational and strategic discipline [9]. - Unit operating costs for FY 2026 are expected to range from 855 to 1,045 AUD per ton [13].