Member Info for NorthernShark

Sumo, the 8k is the cathode capacity. It can also do Oxide and Sulphide concentrate which count in the "copper units" but are an intermediate rather than a final product. The second tankhouse will allow the majority of the material to be plated and therefore yielding the additional margin.

I think its worth remembering the H1 results are backwards looking. The Capex will include items such as the two modules at Thutse which were completed in the period. Forward looking we know the Chrome price has moved up in Q3. The PGM basket price has also increased in the period. Copper margin depends a lot on getting the volume through the plants which we know was constrained at Roan - the overheads for running the facilities gets spread across more units as the volume increases.

Personally I believe the focus should be absolutely laser focused on increasing the copper throughput (the IRH agreement might have been a distraction here). I expected that there would have been more on this in the update but looks like we have to wait for the operations update for Q3.

ATB Northern

Gray, Kalan,

My understanding is Sable is mainly fed by Munkoyo and Project G plus the delayed concentrate from Roan. Munkoyo was sending material in H1 whilst being ramped up (should be fully ramped up now). Little news on G but it had the capacity to send material immediately and is also being ramped up which should be completed this month. More concentrate will be sent once the leaching solution is in place which is why I am very keen to understand this as it adds massively to the economics as it is our own material (not purchased ROM). Also unclear how much Sulphide material is being processed at Roan and Sable which hopefully will be clarified in the update. Basically I think Sable should fill very quickly from here on in and maximise returns through processing to finished cathode rather than intermediate products - abeit there will always be 25% Sulphide concentrate which is sold into the market.

Frog, I understand the sentiment. They did however give very little update on Thutse and then suddenly two more modules were in operational. Just very average communicators - which is a common theme in terms of issues raised by shareholders and one which should be a relatively easy fix.

Frog, to be fair we don't know either way and people are making their own guesses. But they are just that - guesses. A couple more days, whilst frustrating isn't going to make or break anything in my opinion.

As long as when the update comes it covers what we would expect it to then thats ok by me.

ATB Northern

Sumo, not sure about H2 as only 3m left. Q1 26 however is a different matter. As long as the trajectory is up which I believe it will be then we should soon see a re-rate

Sumo, OB1 is icing on the cake for me. Leaching far more valuable in the shorter term to treat the lower copper content in a cost effective manner - there’s a lot already stockpiled.

Poors - I agree and depends on the deal. I would happily take longer time to execute to drive a better deal for JLP of thats how it turns out. We shall all find out before the end of the month and speculation is just that - speculation at this point.

ATB Northern

Frog,

The weekly from tharisa.com/weekly-pgm-and-chrome-info.php and the daily ferroalloynet.com/chromeore/analysis-1.html although if the price is not on the first line of the article then you need to go through the paywall which I don't have.

ATB Northern

265

Jack, how would you rate the business expansion in SA and the business model?

I ask this as I know we have had more bumpp than we care to mention in Zambia but I reflect on where we were in SA and what has been built - this is the one thing which provides me with confidence that eventually we will get it right in Zambia. ATB Northern

Seis, that would be very interesting for the PGM material stockpiles JLP currently hold. Looks like it also works with Cobalt as well which could be used for the Mufilira slg project.

There should be a Q&A after the half year results so certainly one to add to the question list!

ATB Northern

Two scenarios - if PGM prices rise further then the JV gets activated and we could fund OB1 by ourselves. If they don't then the injection of cash and no requirement for capex on the project from JLP still makes it appealing albeit I would want a different split of the JV profits - 60:40 plus costs as a minimum.

ATB Northern

Frog, whilst I agree sentiment is very poor I personally don't believe anything in respect of the OB1 project is priced in. Most are waiting for the sustained rise in copper production. One thing which has worked against the company has been PGM prices but this seems to be rising to the point of turning on the JV, which combined with the price increase on our own production will add a healthy sum to the bottom line and free up additional cash to support expansion in Zambia.

ATB Northern

Frog, its been the shining light to be fair and should lead to a large outperformance vs the current chrome target! Plus produces a lot more PGM by-product to process via the JV or other facility (basket price getting very close to the activation point).

ATB Northern

Frog - Thutse is relatively clear (From Q1 Update)

The Company continues to experience growth in its South African operations, which are now well-established and consistently delivering strong results. Chrome operations increased output to 974,659 tonnes for H1 FY2025 on the back of improved efficiencies while PGM production benefited from better quality feed to produce 18,435 ounces. Construction and commissioning of the two new chrome processing modules was successfully completed and commissioned contributing to the record production achieved over the past period.

Interesting passage from Slaters end of year report and suggests they are putting pressure on Leon in particular!

Investors understood this but their disappointment has come from Zambia, where the expansion of copper

production has repeatedly been far slower than guided by Leon Coetzer. Typical of this, an operational update in

November 2024 was encouraging but the good news was undone in December when Jubilee warned that grid

problems in Zambia had led to power cuts and lost production. We have influenced the appointment of the new

CFO and we expect to see more stability in the company’s performance and messaging. The current brokers’

consensus is for EPS in 2025 of 1.25c and 1.63c in 2026. The shares closed the year at 3.6p.

Could they use Sable at some stage when the second tank house is being installed? Not sure on how it all operates but could be something to look at?

As production increases profit per unit increases as the fixed costs of Roan and Sable are absorbed over more units.

Chester, one observation on Chrome. The increase in production will come from own material (Thutse 2 and 3) rather than toll processing. The purchase of the material will be market price linked but the margin is substantially better.

The increase in all commodity prices this quarter is most welcome however.

ATB Northern