Concession award highlights re-rating potential

Leading Edge Materials (LEM) announced that its 100%-owned Norra Kärr heavy rare earth elements (HREE) project in Sweden has been granted a 25-year exploitation concession by the Swedish government. We view the award as a major de-risking event for one of Europe’s most advanced potential sources of dysprosium (Dy), terbium and yttrium. The concession improves development visibility and enables the next phase of technical, environmental permitting and commercial work. Despite this progress, LEM continues to trade significantly below our fundamental valuation and at a substantial discount to its REE peers on a Dy-equivalent resource basis, suggesting that Norra Kärr’s strategic European HREE exposure remains materially undervalued.