Mining Minutes | A Week of Data Center Capex, Strong PMIs, Inflation, and War

Research evidence excerpt

Mining Minutes | A Week of Data Center Capex, Strong PMIs, Inflation, and War

note,

we also point out what we believe should be the key points of debate in general and on a sub- Upcoming Podcasts:

sector level regarding the outlook for the US industrial economy. In the case of the Metals & Mining

sector, market concerns include the risk of a sharp slowdown in the Chinese economy, as well as, Digging Deeper with Jefferies' Global •the risk that a rising oil price leads to a weaker US economy. While the sector has significantly Mining and Steel Team (Wednesday,

outperformed the broader equity markets over the past 18 months, these macro concerns have June 17th, at 10:00am ET / 3:00pm BST.

kept many investors on the sidelines, in our view. Register HERE)

Steel Dynamics - Aluminum Upside Justifies a Higher Share Price (HERE): STLD shares have

risen more than 60% YTD and have meaningfully outperformed most US steel producing peers. The

rise in US steel prices and shipment volumes as a result of tariffs have been a tailwind for earnings,

but STLD is also positioned to deliver rising aluminum volumes into a record domestic US pricing

environment. We quantify STLD's potential aluminum earnings upside here.

**Video** Cyclical Upturn in Metals & Mining (HERE): In the short video, we discuss our long-held

positive view on copper miners and US steel producers, supported by cyclical upside and structural

demand growth.

[Podcast Replay] Digging Deeper with JEF Global Metals & Mining (HERE): We covered a lot

of ground on our most recent 30-minute Digging Deeper podcast from this past week. Our team Christopher LaFemina, CFA * | Equity Analyst

discussed early signs of improving demand for metals, the positive risk/reward tradeoff in GLEN (212) 336-7304 | clafemina@jefferies.com