Australian Research at a Glance - July 2, 2026

Research evidence excerpt

Australian Research at a Glance - July 2, 2026

AUSTRALIAN RESEARCH AT A GLANCE

as operating conditions in global DAP markets and Australian manufacturing remain

challenging and it represents the final stage in the exit from Fertilisers. With global

Explosives demand remaining strong and the depreciation of the AUD, we believe

there is upside risk to consensus earnings forecasts. We retain our Outperform

rating with 7% implied upside from current levels and with the stock trading on an

FY27e EBITDA multiple of 9.8x.

Industry Comments

Ben Davis (Analyst) European Miners Q2 26 preview

+44 20 7002 2065; ben.davis@rbccm.com Published July 1 2026 00:45:00 EDT

Digesting the impact of Middle East

Our view: The second quarter will be buffeted by FX and cost inflation, and

companies doing their best how to guide for the remainder of the year given the

uncertain environment. Most exposed are the big earth-movers (iron ore, coal and

open-pit copper) on higher diesel prices and freight costs, but it will be universally

felt. Given the current market appetite, the focus of the diversified results should

be more driven by copper potential than capital returns (although Glencore likely

to top up with Bunge stock sale). Precious metal companies will have to strike a

more conservative tone given the price pull-back and would expect capex inflation

to be met with more concern. Top pick Glencore in the diversifieds, Norsk Hydro in

base metals. Least preferred Rio Tinto. Valterra, Endeavour, and Hochchild Mining

remain our top picks in the European precious metals space.

Arun Viswanathan, CFA (Analyst) US Chemicals Weekly Watch

(212) 301-1611; arun.viswanathan@rbccm.com Published July 1 2026 10:32:07 EDT

PE Continues to Soften