LatAm Miners: Unlocking the Next Wave of Copper Projects

Research evidence excerpt

LatAm Miners: Unlocking the Next Wave of Copper Projects

e Iran war has de-escalated. As outlined in the Stop Sign Rather Than Dead End note from our global 200 in copper reserves

mining team, “peace” is now our base case. Thus, we lower our coal and aluminium price forecasts

but leave our 2026-27-28 copper price forecasts largely unchanged at US$6.07/6.50/7.00/lb.

Cheaper energy and fewer trade disruptions should support economic growth, reinforcing our view .

Source: Company data; Jefferies ests. *Reserves; **Inferred

that metals markets are shifting from a supply-led cycle to a demand-driven one. Resources

...Remain positive on Copper. For copper, we continue to see the combination of accelerating Exhibit 3 - GMex discount vs SoTP @ mkt

demand and ongoing supply constraints, likely to lead to significantly higher prices. To us, the prices

main near-term risk is that inflationary pressures force tighter Fed policy, potentially weighing on (15%)

economic growth and industrial commodities. Even if it were to happen, it would likely just be a (25%)

pause in a structural bull market for electrification metals. We believe that major commodity cycles (35%)

only permanently 'end' when supply finally ramps up to meet demand. For copper, we see any major (45%)

supply response still 5+ years away. (55%)

06/15/2018 09/28/2018 01/11/2019 04/26/2019 08/09/2019 11/22/2019 03/06/2020 06/19/2020 10/02/2020 01/15/2021 04/30/2021 08/13/2021 11/26/2021 03/11/2022 06/24/2022 10/07/2022 01/20/2023 05/05/2023 08/18/2023 12/01/2023 03/15/2024 06/28/2024 10/11/2024 01/24/2025 05/09/2025 08/22/2025 12/05/2025 03/20/2026 07/03/2026

Discount over total SotP Historical Average discount2Q26 results preview - Low costs win the day. SCCO’s 2Q26 results are due 21 July and we forecast .