AUSTRALIA FIRST TO MARKET

Research evidence excerpt

AUSTRALIA FIRST TO MARKET

Asia Pacific Equity Research

Australia First to Market 25 July 2026

Top Stories

Mid-Year Prospects (Lee Power)

Industrials

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

out our Top Picks and Least Preferred stocks (among our large-caps) for the remainder of the year.

Dexus (Richard Jones, CFA) (DXS AU, OW)

FY26 Results Preview

We forecast FY26 FFO of 62.0¢ps for DXS, down 1.6% on pcp and in line with consensus (62.0¢). Our 44.5¢ AFFO forecast

sits at the lower end of its 44.5-45.5¢ps guidance.

Regis Resources (Jonathon Sharp) (RRL AU, N)

4Q26: Finished FY26 at the top of production guidance, but costs exited the year higher than

expected

Key takeaways: 1) FY26 production of 379koz was pre-reported and at the top of guidance; AISC of A$2,945/oz landed near

the top end of the A$2,610–2,990/oz range. 4Q AISC of A$3,244/oz was ~10% above JPMe, driven by diesel and non-cash

stockpile drawdowns. 2) FY27 guidance was pre-reported at 360–400koz, AISC A$2,990–3,390/oz and growth capex A$250–

270m; we lift FY27 AISC 4% to A$3,301/oz and total capex 20% to A$474m, largely due to higher sustaining capex. 3) AISC

pressure appears input/mix driven rather than productivity-led. For peers yet to report, the read-through is higher diesel/input-

cost risk across WA open pits, while RRL’s stockpile charges and lower-grade BuckWell mix are largely company-specific. We

also note Duketon is run entirely on diesel. We retain Neutral with a PT of A$6.10.

Nickel Industries (Lyndon Fagan) (NIC AU, OW)

Operating update sees Mining division ahead of JPMe, but cost pressures in RKEF and HPAL; retain

OW

NIC reported EBITDA of $120m from operations in 2Q26, below our $133m forecast.