Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $86 million for the June quarter, bringing the first half unaudited adjusted EBITDA to $183.6 million, which is a material outperformance compared to the previous year [4][16] - The twelve-month rolling Total Recordable Injury Frequency Rate (TRIFR) was 1.29, with a Lost Time Injury Frequency Rate (LTIFR) of 0.05 for June, indicating strong safety performance [2][3] Business Line Data and Key Metrics Changes - RKF nickel metal production was 30,463 tonnes, slightly lower than the previous quarter, impacted by kiln realignment and maintenance [4][7] - HPAL production from HNC was 2,075 tonnes of nickel, continuing to operate above nameplate capacity [4] - The Hangjai mine achieved record ore sales of over 3 million wet metric tonnes, with an EBITDA of $41.4 million, a 33% increase from the previous quarter [6][12] Market Data and Key Metrics Changes - MHP pricing remained stable at $11,449, slightly higher than the previous quarter, with payabilities for MHP close to 90% [8][9] - The Hengjia mine's EBITDA increased by CAD10.4 million, highlighting the benefits of integrated operations [8] Company Strategy and Development Direction - The company is focusing on the completion of the E and C project, with commissioning deferred to align working capital requirements [10][11] - The feasibility study to increase the Anglia mine RKB from 9 million tonnes to 19 million tonnes has been approved, indicating growth plans [13] - The Sampala project is progressing well, with a feasibility study lodged for an initial operation of 6 million wet metric tonnes per annum [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving RKAB approval in August and expects to ramp up production from the Hangjai mine significantly [37] - The company remains confident in the exploration target of over 1 billion wet metric tonnes of ore at the Sao Paulo project, with strong margins expected [16][40] Other Important Information - The company is actively managing working capital due to a significant build-up, particularly in RKF operations [20][30] - There are discussions regarding various financing sources, excluding equity raises, to manage cash flow and debt obligations [32][33] Q&A Session Summary Question: Cash flow neutrality despite good EBITDA - Management explained that the neutral cash flow was due to a large working capital build, particularly in RKF operations, which is expected to unwind [20][21] Question: MHP realizations increase - Management noted market tightness leading to improved MHP payabilities, offsetting a decrease in LME prices [22][23] Question: Delaying commissioning of E and C - The decision to delay was significant enough to avoid building up working capital ahead of the sales license [28][30] Question: Debt service requirements - Management confirmed $33 million in interest amortization was paid in July, with another $100 million due in the remainder of the year [31][34] Question: Production ramp-up from Hangjai mine - Management remains optimistic about receiving the RCAB permit in August and targets significantly above 12 million tonnes for the year [37] Question: Development timing for Sao Paulo - The company is targeting completion of the haul road by early Q4, with first ore delivery expected in early H2 next year [40]

Core Viewpoint - Ningbo Lijin Resource Technology Co., Ltd. (referred to as "Lijin Resource") has announced a positive profit forecast for the first half of 2025, indicating a significant increase in net profit attributable to shareholders compared to the same period last year [1][2]. Group 1: Financial Performance - The net profit attributable to shareholders for the six months ending June 30, 2025, is expected to be between RMB 1.2 billion and RMB 1.5 billion, representing a year-on-year increase of approximately 104.4% to 155.5% [1]. - In the same period last year, the net profit attributable to shareholders was approximately RMB 587 million [1]. Group 2: Operational Highlights - The substantial growth in net profit is primarily attributed to the production release from the Wet ONC project and the Fire KPS project [1]. - The company has optimized its product structure, implemented refined cost control management, and made technological improvements to enhance profitability [1]. Group 3: Project Developments - Lijin Resource is jointly investing with Indonesian partners in the construction of wet and fire nickel ore smelting projects on Obi Island, Indonesia, utilizing leading industry technologies such as high-pressure acid leaching and RKEF smelting processes, with a combined annual design capacity of 400,000 tons of nickel metal [1]. - The HPAL project has a total design capacity of 120,000 tons of nickel metal and has achieved full production operation [1]. - The RKEF project has a total design capacity of 280,000 tons of nickel metal, with the company's equity project HJF achieving full production and an annual design capacity of 95,000 tons, while the controlling project KPS has partially commenced production with an annual design capacity of 185,000 tons, with full construction expected to be completed by 2026 [1]. Group 4: Industry Context - Despite the downward fluctuation in nickel prices in the first half of 2025, Lijin Resource has demonstrated strong performance, indicating its resilience during cyclical downturns [2]. - Companies like Lijin Resource, which can achieve steady growth during industry downturns, are likely to outperform the industry in subsequent performance [2].

Group 1 - Indonesia, the world's largest nickel supplier, will suspend nickel mining activities near the Raja Ampat Islands to protect its tourism industry [1] - Nickel prices have been weak since May, remaining at about half of the peak levels reached in 2022-2023, with a significant drop of over 50% since the beginning of 2023 [4][5] - The suspended mine, operated by PT Gag Nickel, has an annual mining quota of 3 million tons and is known for producing high-grade nickel ore [1] Group 2 - Indonesia accounts for over 50% of global nickel production, driven by large ore reserves and a massive smelting industry [4] - The prices of lithium, nickel, and cobalt, essential for electric vehicle batteries, have plummeted in 2023, leading to concerns about supply discipline and potential price recovery by 2025 [4] - In 2022, Indonesia's nickel production reached 1.6 million tons, representing 48.8% of global output, with nickel reserves accounting for 20.6% of the world's total [5]