Member Info for NorthernShark

Thanks Gray, I know Mikie can get a little excited on occasions but reflecting on yesterdays discussions I personally think he is spot on!

Newsflow to look forward to shortly on the heap leaching trials, the small scale mine acquisitions, OB1, Thutse modules to name but a few developments.

ATB Northern

Chart,

Leon mentioned the long term trend for Chrome which is driven by traditional producers now having to mine deeper material which costs more. As SA provides 85% of the world supply the price will rise in line with the input costs. JLP are sitting pretty as their material is at surface and therefore cheaper to process. He also mentioned physical stocks in China are critically low so is expecting the price to rise off the back of this.

Also mentioned Rhodium which they expect to rise by year end - albeit he also mentioned markets are hard to predict which I think we all appreciate. If PGM prices stay subdued for a longer period then traditional players will close operations as many are currently unprofitable. A longer term plus point for market prices.

ATB Northern

I am happy to be contradicted by those who attended but I am sure I didn’t mis-hear. It is happening

Courd, only providing information which we heard. Happy for you all to do your own maths.

PGMs! I knew there would be a lot of material but was govsmacked. A senior manager called it an ATM

5mt of material and 120k oz for 7 yrs

A few more takeaways before my train:

Chrome going great guns. Anticipate a rise in Ch price due to disruptions shipping material via Mozambique. Most of shallow open pit chrome now exhausted (for other miners) and looking at deep material so price will rise as 85% comes from SA.

Very large amount of PGM material to process. Will look at doing so once price is consistently higher ($200-300 would do it and they do anticipate a higher Rhodium price by the EOY).

ZAM - hard to underestimate the impact of power - been very tough - 3hrs per night in Lusaka at the moment. Private agreeement should sort this. Power further de-risked when the solar comes on stream next year plus rains have started.

Leaching process will unlock a lot of low grade material - don't quote me but they seemed very confident on this - "it was the last item to confirm on the OB1 project". Extension for OB1 not formally agreed but no reason why they wouldn't agree. Delays to the OB1 might put them in a stronger position (firmed up on the ability to process it all so de-risks the project) with IRH - potential to re-neg as plenty of others interested.

Mufulira project ready to go and processing solution sorted but hold up with government (Local youth employment?).

Great turnout from the shareholders - you know who you are! They even mentioned the name for Project G but not sure they should have so keeping that one quiet until they release.

I know I was positive before but a lot of boxes ticked for me and the amount of PGMs which could be processed at short order is massive - and not on the balance sheet as hasn't been drilled!

More tomorrow once gone through all notes

ATB Northern

Very interesting AGM. Leon in attendance and very positive. Key things for me - leaching process will be big from a finance perspective and also have a very large stockpile of PGM material which can be processed when the basket price improves. Up to 120k via the JV per year and circa 800k oz plus in stock!

Will provide full notes tomorrow but very positive from my perspective!

ATB Northern

Train late. Will be there in about 20 mins

Jonah, HD, currently on route and surprisingly the train is only a few mins late. I will take some notes and post to the board shortly after the meeting.

ATB Northern

Marine, I will leave you chartists to it! I will stick to fundamentals of long term investment criteria - macro backdrop (demand for energy transition metals), USP (Processing nouse) and set against the risks (Operating environment (Africa) and financial capacity (reducing as a risk as production comes on line)).

Each to their own and certainly not one to bash alternative approaches - whatever you feel comfortable with!

ATB Northern.

Roast - large scale leaching trials at Munkoyo "as we speak" and will share the results with the market once trial complete. Potentially a big impact on the production but mainly in FY26 onwards, but may get some benefit this year.

Leon in Zambia yesterday with a very large mining operation - more deals incoming methinks!

ATB Northern

Seis - if there is mineralisation in the majority of the material moved then it increases the focus on the on-site leaching process given the quantum of contained copper. Exciting times ahead if G is similar!

Reflecting on Munkoyo and I think there has been a step change in the approach. What has driven this is a question I have.

For context the wording from 23.09 "Munkoyo remains on track to reach its initial target of 15 000 tonnes per month mined run-of-mine ore by December 2024. A resource drilling program is currently underway, and depending on the confirmation of resource continuity, will target the potential to increase production to 20 to 25k t of run-of-mine ore per month."

Yes from the operational release last week "Munkoyo commenced operations in Jul-24 and was successfully expanded to achieve its monthly targeted 100kt ROM for Oct-24 with a total of 250kt during Q1 FY2025."

The pictures and videos from site looks like they have modernised the operations from the previous owner but this could also be due to the muted continuity of the orebody. Munkoyo and Project G could turn out to be very astute investments if I am joining the dots correctly.

What do others think?

ATB Northern

I would think and new open pits will be paid for in cash now. Lower capex period and chrome going great guns. Will be a clarification question on Tuesday

I think it is glycine Frog - the timing is aligned with previous announcements regarding the development/trial. I will ask the question for clarity at the AGM on Tuesday.

LUFC - if the December leaching trial works then there is another circa 4k of copper to be processed at Munkoyo and I would suspect more at G and Roan. I don't know how long this would take to commercialise at all sites but would be an additional copper stream to those already highlighted.

Seis, the question is how will the large scale leach trial at Munkoyo go in December? If successful then there is a lot of material ready to be processed which could have a material impact on FY25 copper production.

To be honest I had missed the significance of this so many thanks for highlighting!

ATB Northern

Seis - looks like the troll is getting a hair cut today!

At first glance the story in SA continues to be very impressive and the upgrade to Chrome guidance should take us much closer to 2m tpa with Thutse's two additional modules contributing in H2.

Zambia - Project Munkoyo looks like they have made a very good investment and grades increasing. Roan still concerns me a bit as we are now being told there are additional upgrades needed (Leaching) to hit the capacity. Someone correct me but this has not been mentioned before. That said some better detail in terms of glidepath for production which is better from a comms perspective.

ATB Northern