In for a Dime, In for a Nickel

Research evidence excerpt

In for a Dime, In for a Nickel

ash cost

Policy support reinforces current pricing dynamics. Industry comments indicate attempted $14,000$12,000

HPM adjustments to capture by-product credits have been resisted by smelters, with impacts US$/tNi $10,000

instead reflected in higher royalty payments while ore prices track market levels (HERE). costC1 $8,000$6,000

Kempen 268.K/MB.01/MEM.B/2025 supports this outcome, allowing transactions below HPM RKEF $4,000

while maintaining the HPM as the basis for royalty and tax calculations. NIC $2,000

$0

3Q24A 4Q24A 1Q25A 2Q25A 1Q26A 2Q26e FY26e FY27e

Ore Electricity Smelting coal & gas Reductant Labor OtherSOE to oversee strategic exports. Further detail on the new centralised export policy (20-May) .

was released via PP No. 24/2026 (5-Jun), confirming that exports of designated commodities Source:(1) SolidCompanybars representreports,1QJefferiesactuals, with segmental

(including coal, palm oil and ferro-alloys) will be routed through SOE DSI from 1-Jan-27. At contributionsJEFe. per JEF estimates. (2) Hashed columns denote

present, only FeNi is captured, with NPI and nickel matte excluded, although the scope may

broaden to other Ni derivatives. We have made no changes to our trading division forecasts Figure 2 - Hengjaya mine cash cost and HPM

pending additional updates. royalty$25 uplift

ENC ramp-up remains on-track. Commissioning of key circuits is progressing in line with our US$/wmt $20

expectations with pipeline slurry transport guided within the fortnight. First MHP production cost $15

cash $10

remains expected by mid-Jul, followed by initial cathode production in mid-Aug. We forecast mine

ramp up of ENC to full capacity by 2H27 (from 3Q27) at a cost structure largely analagous to Hengjaya $5$0