October 7, 2025 09:00 PM GMT Jiangxi Copper | Asia Pacific Solid Earnings Ahead, Double Upgrade to OW JXC's mined gold segment benefits from strong gold prices: The company also currently has ~5.5t of mined gold each year. Contribution from investments: The mine in Panama of First Quantum (FM.TO, covered by Ioannis Masvoulas) is expected to resume production in 3Q26, which would lead to incremental profit contribution from concentrate to JXC, FQ's largest shareholder (~18.9% equity stake). JXC is also the s ...

Market Trends and Demand - Metals are essential for technology, defense, and the green transition, with megatrends driving long-term demand [6, 12] - By 2035, there will be over 200,000 new wind turbines, over 1,000 new hyper data centers, and over 50 million new electric vehicles, significantly increasing metals demand [14] - Global demand for Tellurium is expected to increase by 82% from 2025 to 2035 [16] - Global demand for Tin is expected to increase by 40% from 2025 to 2035 [16] - Global demand for Gold is expected to increase by 22% from 2025 to 2035 [16] Aurubis' Strategy and Competitive Advantages - Aurubis' unique smelter network enables multimetal excellence, processing 20 metals and elements [25, 27] - Aurubis maximizes recycling rate, achieving approximately 44% recycling content in copper cathode on average [30] - Aurubis is committed to strengthening its position as a leading copper and multimetal producer [46] - Aurubis is streamlining its existing strategy portfolio, focusing on its core business of multimetal and reducing capex intensity [79] Financial Performance and Outlook - Strategic projects are expected to contribute €260 million per year in EBITDA [79] - Aurubis expects operating EBITDA between €580-680 million for FY 2025/26 [180] - Aurubis aims to reduce net working capital by approximately €500 million in the mid-term [183]

Core Viewpoint - Marimaca Copper Corp. has signed a binding asset purchase option agreement to acquire a used sulfuric acid plant in Chile, which is expected to significantly reduce the company's exposure to volatile sulfuric acid prices, a key input for the Marimaca Oxide Deposit [1][5]. Company Analysis - The acquisition of the sulfuric acid plant is valued at US$2.5 million, with an upfront payment of US$1 million and a second payment of US$1.5 million after a three-month due diligence period [5][12]. - The plant has a capacity of up to 150,000 tonnes per annum (ktpa) of concentrated sulfuric acid, which could cover approximately 30% to 40% of the total acid consumption at the Marimaca Oxide Deposit depending on the development phase [5][6]. - The company anticipates a potential 30% reduction in acid production costs compared to current long-term forecasts, with the ability to produce sulfuric acid at approximately US$70 per tonne [4][5]. Industry Context - According to projections from Comision Chilena del Cobre (Cochilco), acid prices in Chile are expected to normalize around US$95 per tonne from 2028 onwards, while the company-owned plant could produce sulfuric acid at a lower cost [4][18]. - The sulfuric acid market in Chile is currently influenced by high shipping costs and strong demand from the global fertilizer industry, but improvements in shipping rates are expected from 2026 onwards due to new fleet construction [14][18]. - The historical price correlation between elemental sulfur and sulfuric acid suggests that purchasing elemental sulfur may reduce overall exposure to price volatility [19][20].

Financial Performance - Q2 2025 - GAAP Sales reached $200 million[9] - Adjusted EBITDA was $56 million[9] - Adjusted EBITDA Margin was 24%, including a proportionate 50% share of sales from the Zeolyst Joint Venture of $28 million[9, 10] - Adjusted Free Cash Flow was negative $(2) million[9] - Net Debt Leverage Ratio was 35x[9] Segment Performance - Q2 2025 - Ecoservices sales increased by 144% due to favorable contractual pricing and pass-through of higher sulfur costs, reaching $176 million[7, 18] - Advanced Silicas sales decreased by 166% due to timing of sales for niche custom catalysts, amounting to $241 million[7, 20] - Zeolyst Joint Venture sales decreased slightly by 21% due to timing of sales for hydrocracking and custom catalysts, totaling $284 million[7, 20] Cash Flow and Capital Allocation - The company repurchased 29 million shares totaling approximately $22 million[7] - Available liquidity was $152 million, including $69 million in cash and cash equivalents and $83 million availability on the revolving ABL facility[9, 10] 2025 Outlook - Revised sales outlook is $795 million - $835 million[32] - Revised Adjusted EBITDA outlook is $242 million - $254 million[32] - Revised Adjusted Free Cash Flow outlook is $70 million - $80 million[32]

Financial Data and Key Metrics Changes - The first quarter total sales were $200 million, up nearly 9% year-over-year, with Eco Services and Advanced Silicas each up 1%, and sales for the Zeolyst joint venture up 60% [22][24][30] - Adjusted EBITDA for the first quarter was $39 million, primarily driven by higher volume in the Zeolyst joint venture, but lower earnings in Eco Services due to higher planned turnaround costs [22][24] - Adjusted free cash flow for the first quarter was a use of $13 million, with expectations to generate adjusted free cash flow of $60 million to $80 million for the full year [27][30] Business Line Data and Key Metrics Changes - Eco Services sales were $143 million, up 1% compared to the prior year, with adjusted EBITDA of $29 million, down from $42 million due to higher manufacturing costs and lower sales volume related to turnaround activity [24][25] - Advanced Silicas sales were $19 million, with higher sales of niche custom catalysts offset by lower sales of advanced silicas used in polyethylene production [25][30] - The Zeolyst joint venture saw a significant increase in sales, contributing to the overall sales growth for the company [22][25] Market Data and Key Metrics Changes - The Ecoservices segment accounts for approximately 75% of total sales, with minimal exposure to tariffs due to its U.S.-centric and service-oriented nature [10][12] - The company anticipates higher sales of virgin sulfuric acid in the second half of the year driven by increased mining demand [15][30] - The outlook for polyethylene catalyst sales remains cautious due to potential tariff impacts and macroeconomic conditions [19][30] Company Strategy and Development Direction - The company is focused on opportunistic share repurchases, believing that its current valuation does not reflect the intrinsic value of the business [7][9] - The acquisition of Cornerstone sulfuric acid assets is expected to enhance the Ecoservices network and provide additional capacity [37][56] - The strategic review of the Advanced Materials and Catalysts segment is ongoing, with expectations to run through midyear [38] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential weaker demand in industrial end uses due to macroeconomic conditions and tariff impacts [29][35] - The company maintains its full-year guidance for adjusted EBITDA in the range of $238 million to $258 million, despite the challenges [30][36] - There is confidence in the long-term demand fundamentals for the majority of end uses served by the company [35][36] Other Important Information - The company expects to close the acquisition of Cornerstone in the second quarter, with incremental adjusted EBITDA contributions anticipated to be more material beginning in 2026 [31][37] - The company has a strong order book for hydrocracking catalyst sales, which may offset any softer sales in advanced silicas [20][36] Q&A Session Summary Question: Has there been a slowdown in polyethylene catalyst sales due to tariffs? - Management indicated that there has not been any observed slowdown related to tariffs, but they are monitoring the situation closely [43][44] Question: What are the expectations for sulfuric acid pricing? - Management noted that sulfur prices have increased due to U.S. refining turnaround work, and they expect to pass these costs through to customers [51][53] Question: What are the synergy potentials from the Cornerstone acquisition? - Management highlighted that the acquisition would enhance the sulfuric acid network, providing operational efficiencies and the ability to service customers more reliably [55][66] Question: How does the company view the demand outlook for 2025? - Management expects the demand to be back-end loaded for 2025, with strong fundamentals in their end markets despite macroeconomic uncertainties [60][62]