Mid-Year Prospects: Resources - Copper & Lithium

Research evidence excerpt

Mid-Year Prospects: Resources - Copper & Lithium

J P M O R G A N Asia Pacific Equity Research

22 July 2026

Mid-Year Prospects

Resources - Copper & Lithium

This report forms part of the J.P. Morgan Australia Mid-Year Prospects series as Australia

we take stock at the mid-point of 2026 and set out our Top Picks and Least Preferred

Head of Australia Metals & Mining

stocks for the remainder of the year.

Lyndon Fagan AC

(61-2) 9003-8648

lyndon.fagan@jpmorgan.com

Top Pick – Capstone Copper (CSC AU, OW) J.P. Morgan Securities Australia Limited

Strong production & EBITDA growth. We expect CSC to grow copper output Jonathon Sharp

from ~205kt in FY26 to 355kt in FY30 on the back of improvements at existing (61 2) 9003-8312

operations (Mantoverde & Pinto) along with the development of the Santo jonathon.sharp@jpmorgan.com

Domingo project. This sees our EBITDA more than double to $2.1bn over the same J.P. Morgan Securities Australia Limited

time frame. Branko Skocic

(61-3) 9633-4069

Value support, de-gearing and improving sentiment. The stock trades at a P/ branko.skocic@jpmorgan.com

J.P. Morgan Securities Australia Limited

NPV of 0.86x, and FY27E EV/EBITDA of 3.4x, which looks compelling in our

Devwrat Vegadview. We see a medium term re-rating based on improving operational

(91-22) 6157-3608

performance and growth delivery. However, risks remain in place for the upcoming devwrat.vegad@jpmchase.com

quarterly. Cost pressures still exist resulting from the ME conflict (acid / diesel J.P. Morgan Securities Australia Limited/ J.P.

prices), there is potential for acid restrictions in Chile, while Pinto Valley is yet to Morgan India Private Limited

deliver a turnaround. But we don’t see these as structural issues. Zane Guo

(61-3) 9633-4020

Copper LT fundamentals remain intact.