AUSTRALIA FIRST TO MARKET

Research evidence excerpt

AUSTRALIA FIRST TO MARKET

Asia Pacific Equity Research

Australia First to Market 23 July 2026

Top Stories

Mid-Year Prospects (Lyndon Fagan)

Resources - Copper & Lithium

This report forms part of the J.P. Morgan Australia Mid-Year Prospects series as we take stock at the mid-point of 2026 and set

out our Top Picks and Least Preferred stocks for the remainder of the year.

Mid-Year Prospects (Jonathon Sharp/Branko Skocic)

Resources - Gold, Uranium & Rare Earths

| Paladin Energy (Branko Skocic) (PDN AU, N)

4Q26 result – Langer Heinrich outlook rebased, Upgrade to Neutral

Key takeaways from the JunQ26 result: 1) 4Q operational results were stronger than expected with production 8%

ahead of JPMe (and at the top end of FY26 guidance), supporting full-year unit costs marginally below the bottom end of the

range. Plant recoveries remained strong (~90% vs historical target 85-90%) with management now flagging opportunities to

maintain “high 80s and maybe even... low 90s” moving forward. 2) FY27 guidance was weaker than JPMe across sales

(product loan repayment) / capex (process optimisation spend), and marginally weaker across production (1H maintenance),

driving a US$25m (or ~73%) downgrade to our FY27 NPAT. 3) No major project updates, albeit Paladin flagged CNSC

‘Sufficiency’ was achieved for PLS (Canada) with the timeline for final approvals (end CY27) and first production (CY31)

maintained. We continue to assume a ~20% capex escalation and 12-month delay to first production reflecting native title

uncertainty and construction risk (impacts NPV by ~A$0.75/sh). We upgrade to Neutral on valuation following the FY27

rebasing. Our PT falls 1% to A$9.10/sh reflecting FY27 guidance adjustments, partially offset by higher PLS exploration value.

Lynas Rare Earths Ltd.