Summary of Key Points from the Conference Call Industry Overview - The focus is on the lithium industry, particularly the spodumene market, with significant developments in China affecting supply and pricing dynamics [1][11][15]. Core Company Insights Pilbara Minerals (PLS) - PLS has increased its price target by 45% to A$1.60/share due to improved short-term price outlook, despite a strong share price performance [1][7]. - The company reported a strong production quarter with recoveries improving to ~72% and production of 221kt of SC5.1 [7]. - PLS's capex guidance is expected to decline by ~50% YoY, indicating a shift towards operational and cost discipline [2][18]. - The recent site visit highlighted PLS's advanced ore sorting as a competitive advantage, with a strong balance sheet of ~$1 billion in cash [3][18]. - Production guidance for FY26 is set at 820-870kt with cost guidance of A$560-600/t FOB [7][18]. IGO Limited (IGO) - IGO's price target has been raised by 33% to A$4.80/share, but the company retains a Sell rating due to share price performance [1][7]. - The June quarter saw improved performance from the Nova asset, but production guidance for FY26 was disappointing, with expectations of 1.5-1.65mt, below prior estimates [7][16]. - IGO's capex for Greenbushes is higher than expected at A$575-675 million, and the Kwinana refinery is expected to continue operations despite previous assumptions of care and maintenance [7][16]. Patriot Battery Metals (PMT) - PMT's price target has been increased to A$0.65/share and C$5.90/share, with a Buy rating due to an improved funding environment [1][7][20]. - The company is positioned well for long-term production, with a focus on the Shaakichiuwaanaan Project, which is not sensitive to short-term pricing fluctuations [7][20]. - PMT's funding strategy includes a ~60:40 debt-equity split totaling C$1.6 billion, with an increased assumed raise price to C$4.50/share [7][20]. Pricing and Market Dynamics - Spodumene prices have been revised upwards by 17%/27%/27%/16% for 2025-2028, now projected at US$838/950/1,050/1,100/t, respectively [1][11]. - The market is currently pricing in higher spodumene prices than spot prices, indicating potential overvaluation of equities [4][18]. - The long-term price forecast for spodumene remains at US$1,200/t, with current prices expected to recover steadily [11][12]. Additional Insights - The recent crackdown on lepidolite mines in China may lead to supply disruptions, but the actual impact could be less severe than anticipated [1]. - The focus on operational efficiency and cost discipline is becoming increasingly important for companies in the lithium sector as they navigate market fluctuations [2][18]. - The strategic significance of downstream operations, such as IGO's Kwinana refinery, is highlighted, although it faces operational challenges [16][18]. Conclusion - The lithium industry is experiencing significant price adjustments and operational shifts, with companies like PLS, IGO, and PMT adapting to changing market conditions. The focus on cost discipline and strategic investments will be crucial for navigating the evolving landscape.

Transitioning Underground 2025 Diggers and Dealers 5 August 2025 Tony Ottaviano Managing Director | CEO ASX: LTR | ltresources.com.au For personal use only Important Information IMPORANT INFORMATION NOTICE AND DISCLAIMERS This investor presentation (Presentation) is dated 5 August 2025 and has been prepared by Liontown Resources Limited (ACN 118 153 825) (ASX: LTR) (Liontown or the Company). SUMMARY INFORMATION This Presentation contains summary information about the current activities of Liontown and its s ...

Q2 2025 Financial Performance - Net sales reached $1.33 billion, a decrease of 7% compared to Q2 2024's $1.43 billion[13] - Net income attributable to Albemarle Corporation increased by 112% to $23 million, compared to a loss of $188 million in Q2 2024[13] - Adjusted EBITDA was $336 million, a 13% decrease from $386 million in Q2 2024[13] - Adjusted EBITDA margin was 25%, a decrease of 200 bps from 27% in Q2 2024[13] - Adjusted diluted earnings per share attributable to common shareholders was $0.11, a 175% increase from $0.04 in Q2 2024[13] Outlook and Strategy - The company maintains its FY 2025 outlook, expecting positive free cash flow assuming current lithium market pricing persists[11, 12] - The company achieved 100% run-rate against the $400 million cost and productivity improvement target[12] - The company is reducing its full-year 2025 capital expenditure outlook to $650-700 million[12] - The company expects operating cash conversion to be >80% for FY 2025[27] Market Dynamics - Global lithium demand remains strong YTD, driven by significant growth in EVs and ESS[12, 32] - Global EV demand grew by 35% Y/Y through May[34]

Investment Rating - The report provides a "Buy" rating for companies IGO, NST, NEM, CMM, BGL, VAU, WGX, and PNR, while recommending a "Sell" rating for MIN and RRL [4]. Core Insights - The report highlights the potential upside for various companies based on their current pricing and NAV valuations, with IGO showing a 2% downside to its price target and NST having a 14% upside [4]. - The report emphasizes the strong performance of gold and lithium sectors, with specific companies positioned favorably for growth [4][8]. Company Summaries - **IGO**: Rated "Buy" with a market cap of US$2.1 billion, current price A$4.32, and a 12-month price target of A$5.03, indicating a 2% downside [4]. - **NST**: Rated "Buy" with a market cap of US$17.4 billion, current price A$18.56, and a 12-month price target of A$22.53, indicating a 14% upside [4]. - **NEM**: Rated "Buy" with a market cap of US$66.7 billion, current price A$90.58, and a 12-month price target of A$98.83, indicating a 7% upside [4]. - **CMM**: Rated "Buy" with a market cap of US$2.7 billion, current price A$9.44, and a 12-month price target of A$10.09, indicating a 6% upside [4]. - **BGL**: Rated "Buy" with a market cap of US$0.9 billion, current price A$0.93, and a 12-month price target of A$0.97, indicating a 29% upside [4]. - **MIN**: Rated "Sell" with a market cap of US$3.2 billion, current price A$24.44, and a 12-month price target of A$20.30, indicating an 18% downside [4]. - **RRL**: Rated "Sell" with a market cap of US$2.2 billion, current price A$4.53, and a 12-month price target of A$4.24, indicating a 1% downside [4]. Commodity & FX Forecasts - The report includes forecasts for various commodities, with gold expected to reach US$3,503 per ounce in Q4 2025 and lithium carbonate projected at US$8,005 per ton in 2025 [8]. - Nickel prices are forecasted to stabilize around US$7.17 per pound in Q4 2025, while copper is expected to be around US$4.52 per pound [8].

Financial Performance - The company reported net sales of $1.1 billion for Q1 2025, reflecting an increase in specialties volumes and record lithium production, despite lower lithium market pricing year over year [4][9]. - Adjusted EBITDA was $267 million, down 8% year over year, primarily due to lower lithium pricing, although cost and productivity improvements partially mitigated this decline [10][12]. - The operating cash conversion rate exceeded 200%, with $545 million generated from operations, indicating strong cash flow management [4][23]. Business Line Performance - Specialties drove volume benefits, with adjusted EBITDA increasing by 30% year over year, while energy storage volumes remained flat due to optimized lithium conversion [10][11]. - The energy storage segment achieved a strong EBITDA margin of 36% in Q1, but margins are expected to decline in Q2 due to a lower proportion of long-term contract sales [17][65]. - The Ketchen segment is expected to see modest improvements in 2025, driven by product mix and cost improvements [18]. Market Data - Global lithium demand is anticipated to grow between 15% to 40% in 2025, influenced by tariff impacts and macroeconomic trends [6][27]. - The company expects lithium demand to more than double from 2024 to 2030, driven by the energy transition and increasing demand for electric vehicles and grid storage [27][30]. - China represents approximately 60% of overall market demand for electric vehicles, with strong growth observed in both China and Europe [25][26]. Company Strategy and Industry Competition - The company is focused on optimizing its conversion network, improving cost and productivity, and enhancing financial flexibility to maintain competitiveness [5][20]. - Long-term lithium pricing must remain well above current levels to incentivize supply growth, as many producers are currently operating at or below breakeven [30][31]. - The company is maintaining its full-year 2025 outlook despite anticipated tariff impacts, leveraging its global footprint and exemptions for critical minerals [12][15]. Management Commentary - Management expressed confidence in the company's ability to navigate the uncertain market environment and maintain its competitive position through operational and financial priorities [31]. - The management highlighted the importance of long-term contracts for securing supply and mitigating risks, especially in the evolving landscape of electric vehicle adoption [49][50]. - The company remains cautious about making significant investments until pricing stabilizes at incentive levels, prioritizing balance sheet strength [94]. Other Important Information - The company ended Q1 with available liquidity of $3.1 billion, enhancing its financial flexibility [22]. - The adjusted diluted earnings per share was a loss of $0.18, reflecting the impact of lower lithium pricing and other nonrecurring factors [10]. - The company is on track to reduce capital expenditures by more than 50% year over year, focusing on cost control and cash flow generation [20][24]. Q&A Session Summary Question: Can you elaborate on the scenarios that may affect demand within the 15% to 40% range for 2025? - Management indicated that the current uncertain environment justifies the wide range, with a best estimate in the mid-20% range based on year-to-date performance [33][34]. Question: What progress has been made on productivity initiatives, and is there potential for exceeding the $400 million target? - Management confirmed they are on track to reach the high end of the productivity target, emphasizing that productivity improvements are an ongoing focus [36][37]. Question: How do you view the ability of US and European EV makers to replicate recent Chinese advancements in battery technology? - Management noted that the industry is still early in the technology curve, with ongoing advancements expected from global players [39]. Question: How does the company plan to manage cash flow and return on investment over the next three to five years? - Management aims for a cash conversion benchmark of 60% to 70% and is focused on reducing leverage to below 2.5 times [42][46]. Question: How does the contracting strategy evolve with the rise of autonomous vehicles? - Management stated that while the contracting strategy will evolve, the focus on long-term security of supply remains unchanged [50]. Question: How much of the strong demand year-to-date is attributed to tariff pre-buying? - Management clarified that the strong demand was more related to regulatory shifts in Europe rather than tariff pre-buying [52][53]. Question: What is the outlook for supply curtailments in the industry? - Management acknowledged that high-cost assets are likely to exit the market, but the timing and extent of curtailments are uncertain [101].

Q1 2025 Financial Performance - Net sales were $1.1 billion, a decrease of 21% compared to Q1 2024's $1.361 billion[13, 15] - Adjusted EBITDA was $267 million, down 8.3% year-over-year from $291 million in Q1 2024[13, 15] - Specialties and Ketjen segments saw year-over-year Adjusted EBITDA gains of 30% and 76%, respectively[13, 18] - Cash from operations reached $545 million, representing a 204% operating cash flow conversion, or 73% excluding a customer prepayment[13] - The company has line of sight to breakeven free cash flow in 2025[13] 2025 Outlook and Strategy - The company maintains its FY 2025 outlook, with ranges based on lithium market price scenarios[11] - Albemarle achieved approximately 90% run-rate against the midpoint of its $350 million cost and productivity improvement target through April and identified opportunities to reach the high-end of the $300 million to $400 million range[11] - The estimated FY 2025 capital expenditure is $700 million to $800 million, a decrease of over 50% year-over-year[30] Lithium Market Dynamics - Long-term lithium demand is expected to grow approximately 2x between 2024 and 2030, driven by electric vehicles and grid storage[14] - The company anticipates a direct tariff impact of approximately $30 million to $40 million in 2025, before mitigations[21] - Expected lithium demand growth is greater than 2x from 1.2 MMT LCE in 2024 to a range of 2.5 to 3.3 MMT LCE in 2030[43, 44]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net sales of $1.2 billion and adjusted EBITDA of $251 million, with year-over-year EBITDA improvements across all business segments [5][9] - Full year 2024 adjusted EBITDA reached $1.1 billion, consistent with outlook considerations due to productivity and cost improvements, higher volumes, and strong contract performance [5][10] - The company generated $700 million in cash from operations with an operating cash conversion rate exceeding 60%, above the target of 50% [5][20] Business Line Data and Key Metrics Changes - The Energy Storage segment experienced a 26% year-over-year increase in sales volumes, surpassing initial guidance of 10% to 20% growth [5][10] - Adjusted EBITDA improved year-over-year in all three business segments, driven by higher volumes and productivity [11][10] - Specialties 2025 net sales are projected to be between $1.3 billion and $1.5 billion, with adjusted EBITDA of $210 million to $280 million [14] Market Data and Key Metrics Changes - The lithium market pricing scenarios for 2025 include a new $9 per kilogram scenario, updated $12 to $15 per kilogram, and $20 per kilogram scenarios, with improved outlooks across these ranges [7][12] - Electric vehicle registrations increased by 25% year-over-year in 2024, with significant growth in grid storage demand, which rose nearly 50% year-over-year [23][25] - China remains the key driver of global demand, with a 37% year-over-year increase, representing about 65% of market demand [26] Company Strategy and Development Direction - The company is focused on optimizing its conversion network, improving cost and efficiency, reducing capital expenditure, and enhancing financial flexibility [6][29] - Strategic initiatives include placing the Chengdu Lithium Conversion Facility into care and maintenance and shifting capacity at the Zhengzhou facility from hydroxide to carbonate [7][30] - The company aims to achieve breakeven free cash flow in 2025 through cost and productivity improvements [8][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term drivers of the lithium market, emphasizing the importance of lithium in the energy transition [22] - The company anticipates a modest volume-led recovery in specialties, driven by strength in pharmaceuticals, automotive, and oilfield applications [18] - Management highlighted the need for a globally diversified conversion network to adapt to market conditions and maintain competitive advantages [30][34] Other Important Information - The company concluded Q4 with available liquidity of $2.8 billion, including $1.2 billion in cash and cash equivalents [18][19] - The company expects operating cash flow conversion to exceed 80% in 2025, driven by working capital improvements and a $350 million customer prepayment [20][21] Q&A Session Summary Question: Contract mix and long-term agreements - The remaining 50% of sales not on long-term agreements primarily follows spot mechanisms, with no significant recent renegotiations of long-term contracts [42][44] Question: CapEx reduction and resource investments - The CapEx reduction primarily focused on conversion investments, with a more targeted approach on high-quality, low-cost resources [45][46] Question: Market influence of CapEx cuts and maintenance actions - The company does not expect its actions at Chengdu to significantly influence the broader market, as it is a smaller facility [48] Question: Tax guidance for 2025 - The wide range in tax guidance is driven by various scenarios influenced by lithium prices and pre-tax income [49][51] Question: Free cash flow breakeven in 2025 - Achieving breakeven free cash flow depends on executing the plan, with pricing being a potential risk factor [53][54] Question: Realized lithium prices and market conditions - The company does not disclose exact pricing spreads between spot and contract sales [57] Question: Supply curtailments and market dynamics - Approximately 25% of global lithium supply is believed to be underwater, with about half of that curtailed [59] Question: Energy storage capacity under long-term contracts - About 50% of energy storage capacity is under long-term contracts, with the other half being spot contracts [97][98] Question: Grid storage market outlook - The grid storage market is expected to continue growing, with lithium-based solutions becoming more prevalent [90][92]