Daily Commodities Note: Base metals lower on Middle East risk unwind

Research evidence excerpt

Daily Commodities Note: Base metals lower on Middle East risk unwind

Valuation Method and Risk Statement

We point out to investors the potential risks inherent in the mining sector that affect

investments in the sector, including, but not limited to, the volatile nature of commodity

prices and currencies, which may differ materially from expectations. Furthermore, the sector

is exposed to political, financial and operational risks, each of which has the potential to

significantly impact company/industry performance. Our valuations for the mining sector are

derived using a DCF methodology or combined DCF and EV/EBITDA.

LYC: LYC is exposed to investment risk inherent in the resource sector, including, but not

limited to: movement of commodity price and currencies that may differ materially from the

assumptions used in this report; political, financial and operational risks, each of which has

the potential to significantly impact industry performance; its exposure to rare earths, and

associated growth and project-delivery risks. Rare earths are volatile commodities that can be

exposed to other factors than regular stocks and mining commodities. The added complexity

of building a new cracking and leaching circuit in Kalgoorlie creates a potentially more

challenging environment for LYC. Our price target is based on a NPV-derived DCF valuation.

ILU: ILU is exposed to various commodities and is also exposed to growth and project delivery

risks. Mineral sands and rare earth production are volatile commodities which can be exposed

to other factors than regular stocks and mining commodities. Our price target is based on a

NPV-derived DCF valuation.

First Read: Daily Commodities Note 25 June 2026 ab 3